FORTUNE BRANDS WAITING TO STRIKE
At the 27th Annual Consumer Conference today in New York City, Fortune Brands’ president Bruce Carbonari gave a brief overview of the company – mainly stuff they’ve already touched on in earlier conference calls. However, Bruce and Craig Omtvedt (CFO) did give some interesting, although relatively vague commentary on Absolut and Maxxium. Here’s an overview of what they had to say.
IN ABSOLUT TERMS. Bruce reiterated Fortune’s three-tiered relationship with V&S which includes the following: a U.S. joint-venture between Fortune and V&S to create Future Brands; the European distribution agreement, Maxxium; and V&S’s 10% ownership of Beam Global.
“This is a government selling to a business and probably a lot more visible publicly and a lot more about political agenda if you will,” said Bruce. “In light of that we are very close to them [V&S], we have a great relationship with them...if in fact there is a process we will be very close to it and would be very interested in it.”
When it comes to the high cost of Absolut (some estimate as high as $6 billion), Craig stated, “We wouldn’t be considering this if we didn’t think we had the means to accomplish it.”
RADIATING CONFIDENCE. There’s no denying that there has been a significant amount of disruption lately to the Maxxium distribution agreement, including Remy Cointreau’s imminent termination and possible movement from V&S. When asked if Bruce thinks Maxxium will stay in tact, he basically hinted that Beam Global is none too concerned.
“We can’t really speculate about that, we don’t even really know if there will be a process or not...we have a much bigger breadth and balance in our spirits and wine portfolio....we’re a much bigger and deeper company than we were when we entered the Maxxium deal so we feel very comfortable in our position.”
IN ABSOLUT TERMS. Bruce reiterated Fortune’s three-tiered relationship with V&S which includes the following: a U.S. joint-venture between Fortune and V&S to create Future Brands; the European distribution agreement, Maxxium; and V&S’s 10% ownership of Beam Global.
“This is a government selling to a business and probably a lot more visible publicly and a lot more about political agenda if you will,” said Bruce. “In light of that we are very close to them [V&S], we have a great relationship with them...if in fact there is a process we will be very close to it and would be very interested in it.”
When it comes to the high cost of Absolut (some estimate as high as $6 billion), Craig stated, “We wouldn’t be considering this if we didn’t think we had the means to accomplish it.”
RADIATING CONFIDENCE. There’s no denying that there has been a significant amount of disruption lately to the Maxxium distribution agreement, including Remy Cointreau’s imminent termination and possible movement from V&S. When asked if Bruce thinks Maxxium will stay in tact, he basically hinted that Beam Global is none too concerned.
“We can’t really speculate about that, we don’t even really know if there will be a process or not...we have a much bigger breadth and balance in our spirits and wine portfolio....we’re a much bigger and deeper company than we were when we entered the Maxxium deal so we feel very comfortable in our position.”
posted at 12:26 PM
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