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Spin-offs to Leave Fortune Brands Focused on Spirits

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Spin-offs to Leave Fortune Brands Focused on Spirits

Spin-offs to Leave Fortune Brands Focused on Spirits
December 09
14:44 2010

The board of Fortune Brands has decided to spin-off two of the group’s business – Home & Security and Golf – to focus on premium spirits. Fortune Brands Home & Security has annual sales exceeding $3b and is a North American leader in its category. With annual sales of $1.2 b, Acushnet Company is the number one golf company in the world.

Fortune Brands’ Beam Global Spirits & Wine unit, with annual sales of $2.5b, is the largest US-based spirits company and the fourth largest premium spirits business in the world. The business has significant opportunities for growth as a direct result of its premium brands in excellent categories, enhanced control of worldwide distribution, successful innovation engine, momentum in key markets, opportunity in emerging markets, and continued brand investment.

Beam Global is the world leader in the growing bourbon category, led by the Jim Beam, Maker’s Mark and Knob Creek brands. Global brands including Canadian Club whisky and Laphroaig and Teacher’s Scotch whisky further enhance the company’s whisky portfolio. With premier tequila brands including Sauza, Hornitos and El Tesoro, the company holds the number two position in tequila worldwide.

Courvoisier is one of the world’s leading cognacs, and DeKuyper is the leading brand of cordials in the US. The company is also growing rising star brands with strong upside potential, such as Cruzan rum, EFFEN vodka and the European Sourz cordials brand. A robust innovation pipeline that has recently produced new products such as Red Stag by Jim Beam, Maker’s 46, Cruzan 9, Courvoisier 12 and 21, Teacher’s Origin in India and new ready-to-drink products in Australia, is further adding to the company’s growth and future prospects.

“While the breadth and balance of our portfolio have served shareholders very well, we see the potential for even greater value by separating our businesses into focused companies at a time when they have emerged from the economic downturn in such strong positions. We believe now is the right time to move ahead with this tax-efficient approach,” says Bruce Carbonari, chairman and chief executive of Fortune Brands.

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