Tag Archive | "spirits"

Anti-counterfeiting solution from Guala Closures


anti-counterfeiting_closureGuala Closures partners with Authentic Vision for new anti-counterfeiting closure solution with a wealth of end-consumer marketing opportunities for the spirits, wine and olive oil industries.

The innovative solution will work by enabling smartphone users to verify the authenticity and origin of a product before consumption, while simultaneously interacting with the brand owners.

The end-to-end solution comprises three main parts:

One: a Guala Closures non-refillable closure specially designed to integrate Authentic Vision’s Tag (a highly secure, irreproducible configuration combining a 3D image with an encrypted visual marker such as an ID number, QR code or Datamatrix) inside a secure environment.

Two: a smartphone app which reads the integrated closure tag, instantly authenticates the product and lets the consumer know if the closure is counterfeit, or has been tampered with in any way.

Three: a web-based portal, giving brands access to marketing, business intelligence and supply chain data for all their products.“We are particularly proud to have signed this agreement with Authentic Vision.  The development of our Group has always been dedicated to and focused on brand protection and final consumer health and this digital technology collaboration means we can further enhance the current level of protection we offer,” comments Maurizio Mittino, head of research and innovation at Guala Closures Group.  “As done recently with other strategic partners, what we do with Authentic Vision will certainly help us better meet the needs of the market.”

“We are excited about this opportunity with Guala Closures,” adds Chris Reiser, CEO at Authentic Vision.  “Considering they manufacture up to 14 billion closures a year, there is enormous scope for engagement with smartphone users around the world.  Our unique and patented technology allows us to offer many different options for secure authentication and consumer engagement solutions.  The combination of an irreproducible tag and a smartphone app provides the easiest-to-use solution for consumers worldwide.”

In addition to anti-counterfeiting measures and opening up a wealth of marketing opportunities targeted at the end consumers, the new closure integrated solution offers a highly competitive price per unit as it does not require any additional device for application, thus opening massive growth opportunities.

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Another Strong Performance From Stock Spirits Group


Stock Spirits Group, Central Europe’s leading branded spirits and liqueurs business, has reported a 4.1% increase in EBITDA to a record Eur63.9 million on a like-for-like basis for 2011. On a constant currency basis, EBITDA rose by 6% but revenue at Eur295.1 million was slightly down on a like-for-like basis compared to the Eur301.9 million generated in 2010.

Stock Spirits Group retained spirits market leadership in Poland with a 34% market share during the year and also managed to improve margin to offset market volume decline and cost increases, through focus on profitable products, selective price increases and a better marketing mix. The group also strengthened its market leadership position in Czech Republic, with overall share growth to 40%, and grew market share in Italy within a very challenging market.

Significant brand and NPD investment was made during the year to continue the expansion of the portfolio. This entailed meeting consumer demand for new flavoured vodkas through strong growth in Lubelska, including the successful launch of the blackcurrant variant and recently launched grapefruit flavour and Lubelska Three Grain clear.

Stock Spirits Group also successfully secured new banking facilities during the year to strengthen its financial position. The refinancing consists of a Eur220 million facility, including funding for acquisitions.

Chris Heath, chief executive of Stock Spirits Group, comments: “Against a very challenging market backdrop, I am delighted that we have been able to deliver another very strong set of results in 2011, continuing our unbroken record of profit growth each year. Faced with falling market volumes and significant input cost increases, it is important that we were well positioned to capitalise on the strength of our brands, taking the lead on market pricing and managing our product and marketing mix to deliver margin growth. We are particularly pleased to have maintained, and in some cases extended, the leading positions of most of our core brands in our key markets and have continued with our successful track record of launching new products.”

He adds: “Despite the continued challenging market conditions, we remain confident that the group is well placed to take advantage of opportunities to grow the business further in 2012.”

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Diageo Gains Regulatory Approval For £630 Million Chinese Acquisition


Diageo has received Chinese regulatory clearance to acquire the outstanding shares of Sichuan Shuijingfang Co for £630 million. ShuiJingFang is one of the largest super premium Chinese white spirits brand by volume in China. The company is listed on the Shanghai Stock Exchange.

Diageo made its first 43% investment in February 2007 and increased its shareholding to 49% in July 2008. It then increased its shareholding to 53% in July 2011. Since 2007, Diageo has begun distributing the ShuiJingFang portfolio across South East Asia, Korea, Australia and in the USA.

Super premium Chinese white spirits is one of the largest, fastest growing spirits segments in the world

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Record Sales For Beam


US-based global spirits group Beam (formerly known as Fortune Brands) has reported a 4% rise in operating income to $572.2 million on net sales up 8% to a record $2.3 billion for 2011. On a comparable basis when adjusted for foreign exchange, acquisitions, divestitures, and the ongoing impact of the new Australia spirits distribution agreement – net sales advanced by 8%.

By geographic region, comparable net sales were up 8% in North America, up 8% in Europe/Middle East/Africa (EMEA), and up 8% in Asia Pacific/South America (APSA).

“2011 was an extraordinary year for Beam,” says Matt Shattock, president and chief executive of Beam. “We launched Beam as a leading standalone spirits company, while we continued to outperform our markets and prime our business for sustainable, profitable long-term growth.”

During the year, the group also completed synergy-driven acquisitions in two dynamic growth categories – ready-to-serve cocktails and Irish whiskey – with the purchase of Skinnygirl and Cooley Distillery. The group’s brands portfolio now includes Jim Beam bourbon, Maker’s Mark bourbon, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Teacher’s Scotch whisky, Kilbeggan Irish whiskey, Laphroaig Scotch whisky, Larios gin, DeKuyper cordials, and Skinnygirl cocktails.

“As we enter 2012, we’re encouraged by our continued marketplace momentum,” comments Matt Shattock. “We expect our global spirits market to continue to grow value in the range of 3%, supported by solid growth in mature markets such as the US and double-digit growth in key emerging markets. Against this backdrop, we see market growth across key spirits categories, including strong worldwide demand for bourbon.”

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Diageo Completes $225 Million Acquisition of Ethiopian Brewer


Diageo has completed the acquisition of Meta Brewery, a leading beer company in Ethiopia, for a cash consideration of $225 million, subject to customary post completion adjustments. The acquisition concludes a competitive tender process held by the Privatization and Public Enterprises Supervising Authority on behalf of the Government of Ethiopia.

The acquisition represents a key milestone in achieving Diageo’s strategy of participating at scale in beer and spirits in growth markets in Africa. Meta Brewery is the second largest beer company in Ethiopia with a volume share of approximately 15%. From its brewery near the Ethiopian capital Addis Ababa, it produces and distributes its flagship national lager brands Meta and Meta Premium.

“Over the past five years, Diageo has invested more than £1 billion in building its businesses in Africa, and we will continue to look at opportunities to expand our footprint, grow our brands and secure strong routes to market,” points out Nick Blazquez, president of Diageo Africa.

The acquisition of Meta Brewery will give Diageo direct access to the rapidly growing Ethiopian beer market, and will complement Diageo’s existing premium spirits business in the country. The beer market in Ethiopia is estimated to continue to grow at more than 10% per annum to 2015, driven by strong GDP growth and increased disposable incomes. Diageo currently markets its international premium spirits brands, including Johnnie Walker scotch whisky, Smirnoff vodka and Gordon’s gin, through its representative office in Addis Ababa.

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Revenue Sales Fall by £2.2 billion in UK Beer Market


Hindered by the decline of pub drinking and a lack of broader consumer appeal beyond men, the UK beer market has seen a huge fall from grace in the past six years. Indeed, while the market was worth £17.7 billion in 2006, it will command revenues of just £15.5 billion in 2011 – a £2.2 billion revenue fall – according to latest research from Mintel. Furthermore, volume sales decreased by almost a quarter (23%) over the same period, down from 4.1 billion litres in 2006 to 3.2 million litres in 2011.

 

The share of off trade as a total has gone up – highlighting a shift towards in home drinking. As more of the UK population drinks at home, beer – as with the likes of wine and spirits – has seen a greater share of its sales within this channel. However, unlike spirits and wine it has still seen its volume sales decline in the off trade – from 2.38 billion litres in 2006 to 2.25 billion litres in 2010.

 

Jonny Forsyth, senior drinks analyst at Mintel, comments: “The economic downturn and rising differential between on and off trade beer and alcohol prices has hit the pub trade heavily and led to more UK consumers migrating to in home drinking. Beer has been particularly badly hit – it suffers from being perceived as less suited than its competitors for in home drinking. This is because its male user bias makes it less of a compromise choice for couples than wine or spirits, and it is less associated with food matching or relaxing occasions than either of those drinks categories. The reason why beer is reliant on pubs is that it remains a core drink for young men – almost a rite of passage – and many choose it because in pubs, the size and price of a pint seem so much better value than most other drink options.”

 

Lager dominates the overall beer category and has therefore seen a greater loss of actual revenue over the past six years than ale and stout. Lager sales are down from £12.7 billion in 2006 to £11.4 million in 2011 – a 10% decrease which looks a lot better than it is, due to above-inflation price increases. In 2011, the value of the ale sector had declined to £3.3 billion and stout by £855 million. However, within the market, all beer types are struggling.

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Cooley Distillery Starts Poitin Revival


Independent Irish whiskey producer Cooley Distillery has launched a new range of Poitín products to showcase the traditional spirit of Ireland. Poitín is a clear Irish spirit famous for its alcohol strength. In homage to this ancient Irish spirit, Cooley Distillery has released an Origin series of Poitín products.

 

Poitín was traditionally distilled in a small pot still and the term is a derivative of the Irish word pota, meaning ‘pot’. Normally distilled from barley grain or potatoes, it is one of the strongest alcoholic beverages in the world and for centuries was classified as illegal in Ireland. Poitín is one of the most long-established spirits in the world with a rich and varied history and is exclusively associated with Ireland.

 

Jack Teeling, managing director of Cooley Distillery, comments: “Poitín is at the origin of Irish spirits and Irish whiskey in particular. Over the years it has been demonised because it was illegally produced and the end product lacked consistency, quality and credibility. We have produced a quality Poitín product using ancient techniques in our award winning distillery allowing consumers of today try this ancient Irish spirit with confidence as they are getting a high quality product.”

 

Cooleys’ first Poitín release is triple distilled in small copper pot stills from a traditional Irish pot still recipe of malted and unmalted barley. Bottled straight from the still with no maturation produces a surprisingly smooth spirit even for one that is bottled at 65% abv. Poitín like any quality white spirit lends itself to be consumed in a variety of ways, neat, with water, with mixers and as a component of cocktails but due to its alcohol strength it should be enjoyed in moderation.

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Interim Profits Surge at Remy Cointreau


Reflecting sales growth across all its geographic regions, French spirits group Remy Cointreau has increased current operating profit by 27.3% (up 30.7% organically) to Eur106.2 million for the first six months ended September 30th 2011. Turnover at Eur474.9 million rose by of 10.9% compared with the previous period and by 18.1% organically. The group’s own brands contributed Eur380.4 million, up by 12.9% (20.6% organically). Current operating profit represented 22.4% of turnover, an increase of almost three percentage points.

 

All the group’s geographic regions reported growth. Asia continued to expand strongly, achieving organic growth of 34.0%. The Americas region grew by 11.4% organically during the first half of the year. Europe posted remarkable organic growth of 7.0%, due in particular to strong growth in cognac sales in major European markets.

 

During the period, Remy-Cointreau sold its entire shareholding in Piper-Heidsieck – Compagnie Champenoise to EPI group, which has now assumed control of the Champagne operations in Reims and of Piper Sonoma in the US. In addition, Remy Cointreau and EPI signed a global distribution agreement for the Piper-Heidsieck, Charles Heidsieck and Piper Sonoma brands.

 

Remy Cointreau is continuing to pursue its long-term value strategy of moving its brands up-market and focusing its investment on the development of its international brands and on innovations.

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Beam Starts Life as a Pure Play Spirits Company


Global spirits business Beam has commenced trading as an independent company on the New York Stock Exchange. Formerly known as Fortune Brands, Beam is the remaining company following the separation of Fortune Brands’ businesses, which was completed on October 3rd.

 

Beam is the world’s fourth largest premium spirits company and the largest US-based spirits company. Its leading brands include Jim Beam bourbon, Maker’s Mark bourbon, Sauza tequila, Courvoisier cognac, Canadian Club whisky, Teacher’s Scotch, Laphroaig single-malt Scotch, Cruzan rum, Hornitos tequila, Knob Creek bourbon, Pucker flavoured vodka, and Skinnygirl cocktails.

 

The company’s annual sales were $2.7 billion in 2010 on volume of approximately 33 million 9-liter cases. The company is targeting to deliver growth in adjusted pro forma diluted earnings per share at a high-single-digit rate in 2011.

 

“With the benefit of our portfolio transformation from 2005 to 2007, the enhanced routes to market we built in 2008 and 2009, and the turbocharged brand investments behind sustainable growth initiatives we’ve made over the past two years, Beam is ready to accelerate profitable growth as a pure-play spirits business,” comments Matt Shattock, president and chief executive of Beam. “We look forward to building on our current momentum in the dynamic global spirits marketplace, and continuing our strong, disciplined stewardship of capital to further drive shareholder value.”

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Fortune Brands Spirits Business to be Renamed Beam


Following the expected spin-off of its home and security business on October 3rd, Fortune Brands remaining spirits operation will be renamed Beam. The spin-off company will operate as Fortune Brands Home & Security.

 

Fortune Brands will receive a cash dividend of $500 million from Fortune Brands Home & Security prior to the spin-off.

 

“The separation of Fortune Brands’ businesses will give shareholders a compelling opportunity to participate in the significant upside potential we see in both Beam and Fortune Brands Home & Security,” says Bruce Carbonari, chairman and chief executive of Fortune Brands. “With their competitive, financial and organisational strengths, we believe each business is well positioned to continue outperforming in the marketplace and generate significant long-term value for shareholders.”

 

The major spirits brands of Beam include Jim Beam and Maker’s Mark bourbon, Sauza tequila, Canadian Club whisky, Courvoisier cognac, Cruzan rum, Teacher’s and Laphroaig Scotch whisky, EFFEN vodka, Skinnygirl cocktails and DeKuyper cordials.

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Diageo Completes Acquisition of Mey Icki


Having received the necessary regulatory clearances, Diageo has completed its £1.3 billion acquisition of Mey Icki, the leading spirits company inTurkey. In the financial year ended 31 December 2010 Mey Icki had net sales of £300 million and EBIT of £120 million. It is the clear market leader in Raki, the biggest spirits category in Turkey, and has a leading position in vodka. In addition the company has an extensive nationwide sales and distribution network.

 

The Turkish Competition Authority clearance is conditional upon the subsequent disposal of the Mey Icki brands Hare liqueur and Maestro gin. Diageo expects to complete these disposals within its current financial year.

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Brown-Forman to Build on Record 2011 Performance


Building on record earnings and operating income in its 2011 financial year, Brown-Forman anticipates continued underlying operating income growth for 2012. The US-based international spirits and wine group reported net sales growth of 6% to more than $3.4b in 2011 and increased operating income by 20% to $855m. Excluding the gain on sale from the Hopland-based wine business and certain one-time tax benefits, reported operating income grew 13% to $802m and diluted earnings per share grew 18% to $3.57.

The strong earnings results were supported by underlying net sales growth of 4% and underlying operating income growth of 6% in what continued to be challenging economic, consumer, and competitive environments.

“I am pleased with both our financial results and our strategic progress in fiscal 2011,” says Paul Varga, chief executive of Brown-Forman. “We accelerated our growth rate of underlying net sales over last year and experienced better growth in the second half than the first half on the same measure. Importantly, Brown-Forman continued to implement strategic initiatives, most notably portfolio changes and route-to-consumer enhancements, which we believe will position our brands and company for enduring success.”

Brown-Forman delivered solid net sales growth from developed and emerging markets including Australia, the UK, Mexico, Turkey, Germany, and France. These countries, among others, fueled the company’s international performance and continued to expand its geographic breadth in fiscal 2011. Further positioning the company for continued growth in fiscal 2012 and beyond were recent enhancements to the company’s route-to-consumer in Germany, Brazil, Canada, the Netherlands, and Russia.

In fiscal 2012, the company expects to continue its strong growth internationally while improving its performance in the US. Once again, benefits from the development of existing brands, portfolio expansion, and improved route-to-consumer capabilities are expected to be key contributors to a solid underlying performance in fiscal 2012. Brown-Forman expects to continue to grow the Jack Daniel’s Family while also fueling the growth and expansion of super-premium and developing brands such as Chambord Vodka, el Jimador and Herradura tequilas, Sonoma-Cutrer, and Woodford Reserve.

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Strong Growth By Stocks Spirits Group


Stock Spirits Group, one of Central Europe’s leading branded spirits and liqueurs businesses, has reported double digit organic revenue and profit growth for the year ended December 31st 2010. Revenue increased by 13.3% to Eur308.6m and EBITDA by 16.6% to Eur68.2m.as the company gained market shares across its key markets. During 2010, Stock built upon its clear position as spirits market leader in Poland, where its share was up 10% to 36% against a market decline of 4.7%, and in the Czech Republic, where its share also advanced to 36%.

Stock is one of the top vodka producers globally, and is number one in Poland, Italy and Czech Republic. Stock was created through the integration of Stock and Polmos Lublin in 2007 and is backed by private equity company Oaktree Capital.

With core operations in Poland, the Czech Republic, Slovakia, Italy, Croatia, Bosnia & Herzegovina and Slovenia, Stock also exports to about 50 other countries worldwide.

Stock has now completed its expansion programme, which has increased total annual production capacity to about 350m litres. In the region of Eur34m has been invested in operational infrastructure over past three years, and Stock now operates the largest and fastest single spirit bottling plant in Europe; with a capacity of over 480m bottles per annum.

“In what was a tough year for the Central Europe spirits markets, we were delighted to achieve double digit growth, remain highly cash generative and strengthen our market shares in our main markets. We were particularly pleased to grow profitability despite launching nearly twenty new products in the year and experiencing raw material volatility,” comments chief executive Chris Heath. “We also strengthened our management team further, invested in our manufacturing facilities and sales and marketing capabilities, and expanded our distribution network – all of which delivered this solid growth and reinforced our strong platform for future growth.”

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Diageo to Acquire Turkey’s Leading Spirits Company For £1.3 Billion


Diageo has reached agreement to acquire Mey Icki, the leading spirits company in Turkey, for an enterprise value of £1.3b from investment firm TPG Capital and Actera. The transaction is expected to complete in the second half of calendar 2011, subject to regulatory clearances.

Paul Walsh, chief executive of Diageo.

Mey Icki is the leading spirits producer and distributor in Turkey. In the financial year ended 31st December 2010 the company had net sales of £300m and EBIT of £120m. It is the clear market leader in Raki, the biggest spirits category in Turkey, and has a leading position in vodka. In addition the company has an extensive nationwide sales and distribution network.

Turkey is a substantial fast growing economy with a growing and increasingly affluent middle class and consumer spending is forecast to be twice the rate of GDP growth. The acquisition of the leading spirits company in this very attractive emerging market will allow Diageo to accelerate the growth of its complementary international spirits brands with increased access through Mey Icki’s strong distribution network and customer relationships in Turkey. Mey Icki will be consolidated as part of Diageo Europe and will continue to operate under the current management team.

“This investment represents the continuation of our strategy to increase Diageo’s presence in those emerging markets, such as China and Vietnam, which have a rapidly growing middle class,” says Paul Walsh, chief executive of Diageo.

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Continued Recovery at Pernod Ricard as Full Year Targets Raised


Benefiting from an improvement in the global economic environment and favourable currency factors, Pernod Ricard has achieved strong sales and profit growth in the first half ended December 31st last. Net sales increased by 13% to Eur4.28b – up 7% organically – and group share of net profit from recurring operations rose by12% to Eur726m.

Pernod Ricard increased advertising and promotion spend by 11% organically to Eur765m; raising it from 17% to 17.9% of sales. The French and international drinks giant improved its operating margin (profit from recurring operations/sales) by 30bps to 28.3% and also significantly reduced debt by Eur864m during the period.

Pierre Pringuet, chief executive of Pernod Ricard:

The group’s 14 strategic spirits and champagne brands grew 8% in volume and 13% organically in value, reflecting a very favourable price/mix effect. These 14 strategic brands represented 59% of group sales in the first half of 2010/11, compared to 55% in the first half of the previous year: Indeed, eight of 14 brands posted double-digit organic sales growth: Martell (+32%), Royal Salute (+31%), Perrier-Jouët (+21%), Jameson (+18%), Ballantine’s (+13%), The Glenlivet (+12%), Chivas Regal (+11%) and Havana Club (+10%).

Pernod Ricards sales in Europe (excluding France) showed a marked improvement in the first half, growing 2% organically against a 5% decline in 2009/10. This came from strong growth in Central and Eastern Europe and moderate growth in Western Europe.

According to Pierre Pringuet, chief executive of Pernod Ricard: “This strong performance enables us to revise upwards our guidance for organic growth in profit from recurring operations to a level close to 7% over the full 2010/11 financial year. We will pursue our policy of sustained investments in our strategic brands and markets.”

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1000th Quality Food Name Registered With EU


The Piacentinu Ennese, a sheep’s cheese from Italy, has became the one thousandth name to be registered under the European Commission’s agricultural product and foodstuff quality labels. Since their creation in 1992, the EU schemes have registered quality agricultural products and foodstuffs from across the EU and beyond. In recent years there has been a boost in applications due to enlargements of the EU and a growing interest from non-EU producers including from India, China, Thailand and Vietnam, among others.

The quality registers for agricultural products and foodstuffs comprise505 Protected Designations of Origin (PDO) names, which are products that owe their characteristics exclusively or essentially to their place of production and the savoir faire of local producers. The agricultural product or foodstuff must have been produced, processed and prepared in a given geographical area using recognised know-how

A further 465 are Protected Geographical Indications (PGI) – agricultural products and foodstuffs whose reputation or characteristics are closely linked to production in the geographical area. At least one of the stages of production, processing or preparation takes place in the area.

Thirty are listed as Traditional Specialities Guaranteed (TSG), product names that guarantee the traditional character, either in the composition or means of production. TSGs are not linked to any particular location, but must be produced in line with the specification laid down. The Commission also manages two registers for geographical indications of wines and spirit drinks.

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Diageo Looks to Strengthen Rum Portfolio


Diageo, the world’s largest spirits group, is holding talks with Industrias Licoreras de Guatemala with a view to acquiring a 50% stake in super premium rum brand Zacapa Centenario. Diageo has been marketing the Guatemalan rum since 2008 under a three year contract with brand owner Industrias Licoreras de Guatemala.

Sales of Zacapa, which is produced using sugar cane rather than molasses, have grown rapidly in recent years due chiefly to the growing popularity of cocktails, especially in the brand’s key markets of the US, Spain and Italy.

Diageo already owns rum brands Captain Morgan, produced in Puerto Rico, and Pampero and Cacique, both made in Venezuela.

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Belvedere Disposes of US Spirits Production Business


Belvedere, the French spirits group, has sold its US production business, Florida Distillers, for $48m. However, Belvedere will retain is US distribution business, which includes the 4 Orange and Sobieski vodka brands. Belvedere acquired Florida Distillers for $56m in 2007.

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Bacardi Completes First Phase of $250 Million Investment in Scotch Whisky Production


Bacardi, the largest privately held spirits company in the world, has completed the initial phase of its $250m investment in Scotch whisky production. The investment is to meet growing demand for the group’s portfolio of Dewar’s Scotch whiskies.

Bacardi acquired the Dewar’s brand in 1998. Bacardi, through its John Dewar & Sons subsidiary, employs 300 people at seven locations throughout Scotland. The company currently operates whisky distilleries in Aberfeldy, Macduff, Aultmore, Craigellachie and Royal Brackla with blending, bottling and packaging facilities in Glasgow and maturation facilities in Poniel in Central Scotland.

“Demand for Dewar’s Scotch whiskies has grown significantly in the United States, Asia and other emerging markets and we are excited to have completed the first phase of a new infrastructure project to support higher inventories of maturing whisky and increase our blending, bottling and packing capabilities,” says Seamus McBride, president and chief executive of Bacardi.

Seamus McBride, president and chief executive of Bacardi.

Dewar’s has undertaken a comprehensive redevelopment of an existing site in Parkhead, Glasgow, and has built five new maturation warehouses and a new blend center, as well as installed new bottling lines and packing equipment. The Dewar’s expansion project, which started in July 2007 and was one of the most significant investments ever in the Scotch industry at the time, will be completed in phases over ten years.

The company also purchased more than 100 acres in central Scotland and developed a second maturation facility including six warehouses where Dewar’s ages whisky for flavour and smoothness. Three more aging warehouses are currently under construction and a blending facility will be built next year.

Environment and Energy Management

Dewar’s has planted close to 100,000 indigenous trees including birch, rowan oak and beech to naturally enhance its new maturation facility in central Scotland and complement the surrounding landscape. Another 40,000 more trees will be planted over the next three years. Careful planning was taken for both construction and tree planting to not interfere with bird nesting seasons.

Overall, efficiencies in Dewar’s Scotch production have resulted in energy savings, and usage is down by 11% in distilleries over the past three years. Since fiscal year 2009, water usage has been cut by 17.5 percent, resulting in a savings equivalent to 300 Olympic swimming pools every year.

Returning water back to nature is important as well. At its Aberfeldy distillery treated leftover water is cleaned by passing through a reed bed, an innovative natural filtration process to flow into the River Tay, famed for its salmon and trout fishing.

In addition, the design and construction of the new facilities was undertaken by local suppliers and the vast majority of malted barley, yeast and packaging materials including glass, caps and cases are purchased locally to reduce ‘road miles’ and cut carbon emission impacts.

Another sign of its move into the future, Dewar’s recently unveiled a new modern, bold and cohesive look and package design, visually linking its portfolio of premium blended and single malt Scotch whiskies. The growing demand for Dewar’s has also led to an increase in visitors at the Dewar’s World of Whisky, in Aberfeldy. Opened in 2000, the centre is rated a five-star tourist attraction in Scotland.

In addition to Dewar’s Scotch whisky, the top-selling blended Scotch in the US, the Bacardi brand portfolio consists of more than 200 brands and labels, including: Bacardi rum, the world’s favorite premium rum; Grey Goose vodka, the world-leader in super premium vodka; Bombay Sapphire gin, the top valued and fastest-growing premium gin in the world; Martini vermouth, the world-leader in vermouth; Cazadores blue agave tequila, the top selling premium tequila in the world; and other leading brands.

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William Grant Establishes Global Marketing Office in Dublin


Premium spirits business and independent Scottish family distiller, William Grant & Sons, has established its new global marketing office in Dublin. Employing 17 people, this office will manage the entire global marketing operations for William Grant & Sons’ non-Scotch brands including Sailor Jerry, Hendrick’s Gin and the newly acquired Tullamore Dew Irish whiskey, and will work alongside the company’s existing global marketing office in Richmond, London. The Dublin office will also lead the group’s global planning and innovation function.

William Grant & Sons’ global marketing office in the UK will continue to manage the company’s Scotch whisky brands Glenfiddich, The Balvenie and Grant’s. Both offices will be overseen by group marketing director Maurice Doyle.

Following the Eur300m acquisition in July of C&C’s portfolio of Irish spirits and liqueur brands, this move greatly strengthens William Grant & Sons’ presence in Ireland. A key focus of the marketing activities will centre on the development of the Tullamore Dew brand, which as the group’s sixth core brand is poised for significant growth. William Grant & Sons is currently commissioning an international TV, print and outdoor advertising campaign for Tullamore Dew which will be managed from Dublin.

Stella David, chief executive of William Grant & Sons.

“Our recent acquisition of Irish brands focusing on Tullamore Dew is now well embedded within the group and we look forward to strong growth over the next 12-18 months,” says Stella David, chief executive of William Grant & Sons.

Tullamore Dew is world’s second largest Irish whiskey brand, selling over 600,000 cases worldwide. Hendrick’s is the world’s fastest growing super premium gin with key markets in the US, UK and Spain, while Sailor Jerry Spiced Rum is part of a fast growing brand franchise inspired by tattoo artist Norman ‘Sailor Jerry’ Collins.

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Dogged Full Year Performance By Pernod Ricard


Pernod Ricard, the world’s second largest spirits and wine group, has reported a 1% increase in net profit to Eur951m on net sales down 2% to Eur7.08b for the 2009/10 financial year ended June 30th 2010. Organic sales growth was 2%, including a significant 9% upturn in the second half, but the results reflect negative foreign exchange factors and the disposal of the Wild Turkey, Tia Maria and Bisquit brands and the impact of the termination of Stolichnaya distribution.

The French drinks group noted a contrasting global economic environment, which improved during the second half, featuring strong growth in most emerging economies, and a very gradual recovery of consumer spending in the US against a continuing uncertain backdrop. The picture was mixed in Europe with some signs of a recovery but also the adverse impact of austerity measures.

Pernod Ricard’s top 14 brands, which account for 55% of group sales, grew by 2% in volume and 4% in value. Martell (+12%) and Jameson (+12%) achieved double digit growth and seven others continued to grow, in particular The Glenlivet (+7%), Absolut (+6%), Chivas (+5%) and Havana Club (+5%). Conversely, Mumm (-7%) reported a decline, due to the difficulties in the French champagne market. Within the priority premium wine portfolio, Jacob’s Creek sales declined by 5%, reflecting Pernod Ricard’s premiumisation strategy for the brand.

Group profit from recurring operations rose by 4% to Eur1.79b but the operating margin slipped to 25.4% of sales, compared to 25.6% in the previous financial year. Group debt was reduced by Eur1.09b, excluding translation adjustment, during the year.

Pierre Pringuet, chief executive of Pernod Ricard.

Europe excluding France was the region most affected by the crisis, posting a 3% decline in profit from recurring operations. The situation remained difficult in Western Europe (Spain and the UK) even though a number of countries achieved growth, such as Germany and Sweden, and Duty Free markets noted a recovery. In Eastern Europe, Russia and Ukraine reported a strong upturn in the second half of the year but the situation was more difficult for local vodka brands in Poland. Pernod Ricard saw satisfactory 7% growth in its domestic market of France.

Despite the economic crisis, Pernod Ricard managed to keep growing in new economies, and continued with its premiumisation strategy. “Our performance over the 2009/10 financial year was a strong and sound one. Our priorities for the 2010/11 financial year remain the development of our premium strategic brands, a continuing strong marketing investment level, and the reduction in group debt,” says Pierre Pringuet, chief executive of Pernod Ricard.

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Synergy Widens International Reach


Synergy, one of the leading distilled spirits producers in Russia, has signed distribution agreements for exports of Beluga vodka to Iraq, Vietnam and India, the growing vodka markets in Middle East and Asia and strengthen brand visibility in the European Duty Free by signing a distribution agreement with one of the world’s leading duty free operators.

Synergy already distributes Beluga vodka to Lebanon, Jordan and Israel. In the first half of 2010 20% of Beluga sales were generated from exports, up from 17% in 2009. For the first six months of 2010 the company’s duty free sales grew by 90% compared to the same period last year.

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Recession Boosts Domestic/local Spirits at Expense of International Brands


2009 was not a good year for multinational spirits companies. Euromonitor International’s ‘2010 Millionaires’ ranking saw total volumes of international brands on the list fall by 5% while domestic/local brands saw growth of 6%, selling over 400 million 9-litre cases. The Millionaires supplement is a ranking of spirits with sales of over one million 9-litre cases across all retail channels. Now in its third year, the 2010 list includes a record breaking 162 brands.

The 2010 listing continues to gain new breadth and depth with 17 new brand entries, including brands from Colombia, Turkey and most notably the soju producers of South Korea. It also shows the strength and power of spirits consumption in Asia-Pacific as domestic/local brands on the list, which are almost entirely sold in the region, accounted for over 40% of total brand volumes.

Suffering International Brands

As predicted in last year’s supplement, international brands performed poorly in 2009. Due to the effects of the recession, consumers’ trading down and the decline of on-trade consumption, total volume sales of international brands on the list has fallen. Pernod Ricard remains the company with the most brands on the Millionaires list despite losing two from the 2009 list – Presidente brandy and, more surprisingly, Luksusowa vodka.

However, two of its stand-out brands were Indian whiskies which continued to benefit from a rapidly growing category and a booming Indian economy. Second-placed United Spirits increased the number of brands on the list up two to 19 with its Bagpiper Indian whisky becoming the leading whisky brand in the world.

Diageo sits in an increasingly distant third place with 14 brands (down one) with only two of its rum brands benefiting from strong growth in its core markets (North America for Captain Morgan, Venezuela for Cacique) along with Bells in the UK. Bacardi continued to suffer from its over-reliance on a limited number of major markets, specifically in the US and Spain, with only two of its brands, Eristoff vodka and William Lawson blended scotch, recording growth.

A More Positive Future

While the picture painted in volume terms in 2009 was relatively bleak for international brands, 2010 is likely to be far more positive, due to the emerging markets of Latin America, Asia-Pacific and Eastern Europe. “Signs of economic recovery in the first half of 2010 will undoubtedly help international brands bounce back,” says Euromonitor International senior alcoholic drinks analyst, Jeremy Cunnington. “However, many core markets for these brands, especially in Western Europe, could still hold back growth as governments and consumers continue to restrict spending to reduce their high levels of debt.”

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Spirited First Half Performance by Campari


Benefiting from good consumption momentum across key brand and markets, the consolidation of its Wild Turkey acquisition and an easy comparison base versus last year’s first half, which was hit by the credit crunch and destocking activities, Italian drinks group Campari has increased net profit by 15.2% to Eur69.3m on sales up by 16.7% to Eur515.7m for the first half of 2010.

EBITDA reached Eur127.0m, an increase of 18.1%. Sales of spirits accounted for 76.9% of total turnover, up from 72.3% in the first half 2009.

“Our performance in the first half of 2010 was very positive with significant growth across all key indicators,” says Bob Kunze-Concewitz, chief executive of Campari. “Whilst volatility might impact trading across coming quarters, we remain reasonably optimistic about our full year prospects.”

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Pernod Ricard Reorganises Premium Wine and International Vodka Businesses


Global wines and spirits group Pernod Ricard has reorganised its premium wines and vodka businesses. A new brand company called Premium Wine Brands has been created which is responsible for the development and global strategy of the group’s strategic wine brands. The portfolio includes: Australian wines (Jacob’s Creek), New Zealand wines (Montana and Brancott), as well as Spanish and Argentinean wine brands with international potential (Campo Viejo and Graffigna). The new company’s objective is to accelerate the international development of these brands within the Pernod Ricard distribution network.

Jean-Christophe Coutures, who is currently chairman and chide executive of Pernod Ricard Pacific, becomes the chairman and chief executive of Premium Wine Brands. He will report to Thierry Billot, managing director, brands.

Pernod Ricard has also extended the responsibilities of The Absolut Company to include all the group’s international vodka brands, including Absolut, .Friis and Wyborowa. Its objective is to establish the strategy for the entire vodka segment. In addition, The Absolut Company retains the responsibility for the Malibu and Kahlua brands.

Stephane Longuet, currently vice president finance of The Absolut Company, is appointed chief operating officer of the Standard Vodka division of The Absolut Company and therefore will report to Philippe Guettat, chairman and chief executive of The Absolut Company.

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La Martiniquaise Set For Liqueur Acquisition


French spirits group La Martiniquaise is reported to be the only bidder left for Belvedere’s Marie Brizard liqueur brand following the withdrawal of ThaiBev from the auction. The acquisition of the Marie Brizard would broaden La Martiniquaise’s portfolio, which currently includes William Peel whisky and Berger pastis.

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Pernod Ricard Disposes of Spanish Wine Interest


Global spirits and wine group Pernod Ricard has agreed to sell its shares in Spanish drinks company Ambrosio Velasco to Diego Zamora for a cash consideration of Eur33.1m. The closing of the transaction is subject to clearance by the Spanish competition authorities.

Diego Zamora is a family owned Spanish company, best known as the producer of Licor 43, the most popular Spanish liqueur worldwide, and other premium brands such as Villa Massa (best selling premium Italian Limoncello), Matusalem Rum and Ramon Bilbao Wines from Rioja. Diego Zamora is also a leading importer and distributor within the Spanish wines and spirits market.

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