A MORE SPECIFIC LOOK AT FORTUNE BRANDS

Chairman and CEO Norm Wesley stated that Fortune’s new wine and spirits brands “will benefit EPS by $0.35 per share.” Wine and spirits revenue was up 78% for the 4th quarter and 40% for the year, while underlying sales increased 4%, “achieving their long-term goal,” said Craig Omtvedt, COO. Jim Beam’s volume rose 3% with solid growth in the United States but the super-premium brand Jim Beam Black was the most popular. Although the growth rate seems low, Craig later stated that “brown spirits grow slower than the white spirits.”

Sauza Tequila also did well in the U.S. experiencing double digit growth in case volumes. Wines rose at a mid-single digit rate. “We are very excited about the new wine and spirits category,” said Craig. “We saw high-end growth mainly as consumers’ trade-up,” but he reassured investors that Fortune Brands is stronger than ever in the premium and super-premium arena.