HOW DOES PERNOD’S PROTEST HOLD UP?
As reported yesterday, Pernod Ricard issued a resignation letter to the Century Council as a protest to the group’s support of spirits sponsorships in NASCAR. Pernod had announced earlier this summer that it disagreed with the practice, calling it “inappropriate” as it “runs the risk of damaging its will-earned credibility and undermining its message of responsibility,” wrote Pernod USA’s CEO Alain Barbet in his letter to the Council.
The resignation does not officially go into effect until November, which could buys time for a possible resolution.
Brown-Forman, who is heavily involved in NASCAR through its top performing brand Jack Daniels, told The Courier-Journal through a spokesman that it is “disappointed with Pernod Ricard’s decision and hopes the company will reconsider,” believing that spirits companies should not be barred from NASCAR because “alcohol is alcohol.”
Jack Daniel’s involvement in NASCAR began in December of 2004 just weeks after NASCAR lifted a ban on sponsorship deals with liquor companies, and remains the most expensive marketing deal in the whiskey brand’s history, according to the article. It’s turned into a huge money maker as well, since the advertising reaches 75 million people who regularly watch the sport. Diageo’s Crown Royal, Fortune Brand’s Jim Beam and Patrón are three other spirits brands at the forefront of NASCAR.
B-F AND BACARDI RENEW UK ALLIANCE. Brown-Forman and Bacardi have agreed to renew their existing distribution agreement in the UK through 2012. Originally formed in August 2002, they share a sales and logistics operation that handles both companies’ portfolios in the UK, while each company oversees their own marketing.
SPEAKING OF BACARDI. Bacardi announced yesterday its takeover agreement with New Zealand regional company “42 Below” will cost close to $91 million. The acquisition will serve as a long-term investment for Bacardi and will not start making money for at least another 5 years as Bacardi increases its current distribution from 25 countries to 130.
Former advertising executive Geoff Ross built the “42 Below” brand through flippant, humorous advertising (check out their website) and is now set to make more than $30 million off the transaction.
DISTRIBUTION ALLIANCE BETWEEN WINE POWERHOUSES. The Wine Group and Les Grands Chais de France (GCF) (the world’s third and fourth largest wine producers) have formed a distribution alliance that covers the U.S. and Europe in which the Wine Group will distribute GCF’s brands throughout the U.S. and vice-versa. GCF’s portfolio includes the leading French wine brand worldwide, J.P. Chenet, along with premium brands such as La Baume and Kiwi Cuvee.
And in case you’re a bit rusty, The Wine Group’s portfolio includes premiums like Gray Fox, Fish Eye and Concannon, and the recently acquired Big House and Cardinal Zin brands from Bonny Doon.
Under the alliance, the combined portfolio will be the second largest on the globe with 60 million cases.
The resignation does not officially go into effect until November, which could buys time for a possible resolution.
Brown-Forman, who is heavily involved in NASCAR through its top performing brand Jack Daniels, told The Courier-Journal through a spokesman that it is “disappointed with Pernod Ricard’s decision and hopes the company will reconsider,” believing that spirits companies should not be barred from NASCAR because “alcohol is alcohol.”
Jack Daniel’s involvement in NASCAR began in December of 2004 just weeks after NASCAR lifted a ban on sponsorship deals with liquor companies, and remains the most expensive marketing deal in the whiskey brand’s history, according to the article. It’s turned into a huge money maker as well, since the advertising reaches 75 million people who regularly watch the sport. Diageo’s Crown Royal, Fortune Brand’s Jim Beam and Patrón are three other spirits brands at the forefront of NASCAR.
B-F AND BACARDI RENEW UK ALLIANCE. Brown-Forman and Bacardi have agreed to renew their existing distribution agreement in the UK through 2012. Originally formed in August 2002, they share a sales and logistics operation that handles both companies’ portfolios in the UK, while each company oversees their own marketing.
SPEAKING OF BACARDI. Bacardi announced yesterday its takeover agreement with New Zealand regional company “42 Below” will cost close to $91 million. The acquisition will serve as a long-term investment for Bacardi and will not start making money for at least another 5 years as Bacardi increases its current distribution from 25 countries to 130.
Former advertising executive Geoff Ross built the “42 Below” brand through flippant, humorous advertising (check out their website) and is now set to make more than $30 million off the transaction.
DISTRIBUTION ALLIANCE BETWEEN WINE POWERHOUSES. The Wine Group and Les Grands Chais de France (GCF) (the world’s third and fourth largest wine producers) have formed a distribution alliance that covers the U.S. and Europe in which the Wine Group will distribute GCF’s brands throughout the U.S. and vice-versa. GCF’s portfolio includes the leading French wine brand worldwide, J.P. Chenet, along with premium brands such as La Baume and Kiwi Cuvee.
And in case you’re a bit rusty, The Wine Group’s portfolio includes premiums like Gray Fox, Fish Eye and Concannon, and the recently acquired Big House and Cardinal Zin brands from Bonny Doon.
Under the alliance, the combined portfolio will be the second largest on the globe with 60 million cases.
posted at 12:32 PM
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