BERINGER VINEYARDS HAS ADDED A CALIFORNIA CHARDONNAY

to its California Collection. This latest extension will be available in grocery and c-stores across the US in the coming weeks. Suggested retail price is $6 a bottle.

Owned by Foster’s, the line already includes a White Zinfandel, Pinot Grigio, White Merlot, and Chenin Blanc.

DOMESTICS SELL MORE WINE IN NOVEMBER

The rate of growth for wine sales continued to dwindle in autumn, with overall sales growing 4.2% to $613,041,381 in the four weeks to November 17. Case volumes grew only 0.5% to 8,859,447 in the period, according to Nielsen scan data.

Dollar value of red wine grew 3.3%, which surprisingly fell behind white wine’s growth of 6.7%. Blush wine sales continue to decline at -2.5%. Red wine volumes were down
-0.3%, while white wine volumes grew 2.9% and blush declined -3.4%.

When it comes to varietals, Riesling showed the most value growth, up 20.6%, followed by Pinot Noir (16.2%), Fume/Sauvignon Blanc (13.6%), Pinot Grigio/Gris (12.5%) and Zinfandel (12.3%). Out of the big three, Cabernet Sauvignon, Merlot, and Chardonnay, only two showed dollar sales growth, says Nielsen. Cabernet was up 5.8% and Chardonnay grew 4.1%, but Merlot declined -3.8%. White Zin (down -3.4%) and Syrah/Shiraz (-6%) continue to disappoint.

Domestic table wines were slightly above imports in November. Sales of domestic wine rose 4.3%, while imports grew 3.9%. Volumes were neck in neck, however. Domestic wine volumes grew 0.5% and imports were up 0.4%.

Dollar volume of Argentinean imports grew a whopping 46%, followed by New Zealand (32.6%) and South Africa (26%). November sales of the big three importers, Italy, France and Australia, were up 5%, 3% and down -2.8%. In the four weeks to November 17, Australia lost -0.7% of dollar share, while Italy gained 0.1% and France remained flat.

PART TWO – A TALK WITH DARRYL ROSEN

WSD had the chance to sit down with Darryl Rosen this week, the former president of Chicago retailer Sam’s Wines and Spirits. In part two of the interview, Darryl discusses industry trends, the future of wine and spirits and improving the relationship between retailers and wholesalers. Click here for part one.

Wine & Spirits Daily: In your opinion, what are some of the most notable trends in the wines and spirits business right now?

Darryl: I would say that – several things. The first thing obviously is that there’s a lot of great wine out there and you don’t have to spend a lot of money on great wine. That’s probably the most interesting thing I’ve seen over the years – the emergence of all these areas of the world that produce great wine and just how nice a bottle of wine you can have for six to eight dollars.

WSD: But it seems like one of the biggest trends right now is trading up.

Darryl: But – and that’s been around forever. You’re always going to have that segment of the population. It’s funny; I don’t know any of those people but the people that want to have something very expensive on their table – there are people out there like that, but I think they’ve always been out there. As people get more educated, you see pockets of people that are sort of more adamant that they’re not going to spend a lot of money on wine.

Another huge change is this notion of hiring people that are better at communication and better with basic people skills than people who know a ton about wine, because the fact of the matter is there’s so much information out there. In many cases I think I would have people on the floor that were knowledgeable and they were young and we brought them along as quickly as we could, and we had great people, but customers that came in were intelligent, affluent, worldly, traveled a lot. I think that it almost changed a little bit the dynamic where it became a different type of person you wanted to hire. You didn’t always have to have the most intelligent wine person. You needed to have some people skills. The way that businesses will compete now is through their service.

WSD: Right. Does it surprise you how fast craft and imported beers caught on with the general public and other retailers?

Darryl: Well, no. Because look what’s happened to wine. Look at wine in the public consciousness and look at how people know more about different grapes. Look at how they know more about the different regions of the world that make grapes and the different wines of the world. It just took a little longer.

WSD: Right.

Darryl: But yeah. I was always amazed at the different flavors of beer – you know, the curry this and the honey that and the different beers and the great companies that sort of came out of nowhere after the wine craze. How great a company like Sam Adams and Anchor Steam and all the products that these companies are putting out. I’m not 100% up-to-date on the newest beers, but I remember when Fat Tire came to Chicago. And if I were to tell you the top five items in terms of dollars sold, Fat Tire was on that list. And it was just nuts. The greatest thing about Fat Tire is, and I don’t know how this happens but we actually made money on it. We actually made money on it and I don’t know if they tried to protect that or not, but we actually made money on it.

WSD: What do you see as some of the biggest disconnects between wholesalers and retailers?

Darryl: Well, you know I just spoke to Future Brands and one thing I stressed is crossing the finish line with retail customers. And the finish line in the world of wine and spirit distributors is getting to the place where retailers can do business with the distributors not because they have to, but because they want to. And the change that that mentality brings – when you do business with somebody because you want to, it’s a whole different environment than having to. And you know how the laws are. If I want to buy Absolut and I want to buy Kendall Jackson, I had to buy it from one company. I didn’t have a choice. And I think that’s a little source of resentment for retailers, and I think that’s why you see a lot of big retailers around the country sort of doing their own thing.

They’re saying, ‘We’re going to go out and get great wine and we’re going to put our own label on it and we’re going to carry it. We’re going to push things that smaller distributors have, lesser known negotiants and importers, and we’re going to do our own thing because we’re not satisfied with the relationships we have with the other tiers.’

So that’s why I work with the other tiers now, to help them improve their relationships with the retailers to get to a point where the retailers are happy to do business with them.

WSD: What do you see as the future of the wine and spirits industry?

Darryl: I don’t know if it’s a question of consumption. I don’t really know if consumption is going to go up or down. I think that things move pretty slowly in this business....I think the smaller players that deliver great service are going to stand out ahead. They’re going to find ways to differentiate themselves, whether through their product offering or their help or their programs or their events, they’re going to find a way to stand out.

And on the bigger scale, some of the bigger chains around the country are going to keep growing and if they find a way to crack into more states and get more exposure.

WSD: Great. Well what are you doing now that you sold Sam’s?

Darryl: I am a professional speaker so I give presentations. I’ve already written a book which is on my website. I’ve also done a lot of writing on customer service topics, on management topics, on the business topics that I don’t think get a lot of play in this industry. I’m going to be working with retailers on their service; I’m going to be working with distributors and suppliers on their relationships with retailers. Wholesalers enjoy my perspective, having been in their customer’s shoes and all.

WSD: Thank you so much for your time.

To view Darryl’s website, go to www.darrylrosen.com

Beam Global Sells U.S. Distribution Rights for Dalmore Scotch

Rumors earlier this week that Beam Global planned to sell its U.S. distribution rights for Dalmore Scotch to UB Group have panned out. Beam Global announced today it has sold the rights to UB for $58 million.

“This is a win-win transaction for Beam Global and for UB Group,” said Tom Flocco, president and chief executive officer of Beam Global. “The U.S. distribution rights for The Dalmore offered limited upside for us due to supply agreements that would have constrained our long-term supply. At the same time, UB Group was eager to consolidate worldwide distribution of The Dalmore, having purchased the brand earlier this year.”

The Dalmore generated annual sales for Beam Global of approximately $6 million. The transaction also included the brand’s inventory currently owned by Beam Global, as well as a transition services agreement under which Beam Global’s Future Brands distribution j-v will continue to handle the distribution of The Dalmore.

It seems Beam is eager to make room for Absolut. As you know, Beam sold its wine portfolio to Constellation in November, a move that many in the industry speculated was meant to make room for V&S if the company is, in fact, successful in acquiring the high-in-demand Swedish vodka.

PART ONE – A TALK WITH DARRYL ROSEN

WSD had the chance to sit down with Darryl Rosen, the former president of Chicago retailer Sam’s Wines and Spirits. Since selling the business to Arbor Capital, a Chicago based private equity firm in May, Darryl has written a book called “Surviving the Middle Miles – 26.2 Ways to Cross the Finish Line with Your Customers” and written several articles and given many speeches on improving industry relations and business practices. Darryl had a lot of interesting things to say about the industry, so let’s take a look at Part One of the interview as you, dear reader, are a fly on the wall.

Wine & Spirits Daily: Give us some background on Sam’s Wines and Spirits and your leadership in the company.

Darryl Rosen: I was the president of Sam’s before selling the business last year. Sam’s was started by my grandfather, and he did – maybe 40, 50 years ago; nobody really knows for sure. And my dad was involved with the business for a long time. His name is Fred. I came on the business full-time in 1990, when we were one store, and we grew the company from there. When we sold the company we had three stores – big stores.

WSD: Right. Well, how’s the wine and spirits business changed since you’ve been in it?

Darryl: Well, the major change is the competition. There’s always consolidation – there’s always supplier and distributor consolidation; there are always things going on in those tiers, so that came and went over the years. In the 1990’s and early 2000’s there was a wave of consolidation but that has slowed for now. Not there are big multi-state wholesalers and it wasn’t like that when I got into the business. The biggest change from the retail perspectives is the competition. That competition has forced everybody to get better. You know the effect of Costco, and with the Costco’s of the world, I believe they’ve taken away the fringe for a lot of other retailers.

WSD: Interesting.

Darryl: If a wine drinker on a scale of one to ten, with ten being someone who knows the regions of Burgundy and one is someone who just likes to have a glass of white wine. If you rated people like that, it used to be that stores like Sam’s and other wine and liquor stores got a much bigger range from ten down to one.

And now, people who don’t know a lot about wines have so many other choices, and they have so many other places to go. I read a statistic once, I think from the Small Business Administration, that there’s four times as much retail space per capita as there was in 1970...So there’s been an explosion of retail and an explosion of choices. Customers I think have more choices than they ever have.

Another thing I think, not so much now but in the late 90’s and early 2000’s, money wasn’t so tight. It was a lot easier to get a loan to open up a business. And around Chicago, you see all these little wine stores now. They’re all over the place; like gas stations! I know there’s a chain, I think it’s called Wine Styles.

WSD: Yes.

Darryl: They’re in Glenview and multiple locations. It just didn’t used to be like that. So many options.

WSD: Were you involved at all with the HB 429 legislation in Illinois? Basically, the controversy hinges on the fact that in-state retailers are allowed to ship to consumers in Illinois, but out-of-state retailers are not given the same advantage.

Darryl: No, I was out by then. Traditionally, retailers don’t want to get involved in that fight because the way that the laws are constructed right now with the compliance and the monitoring, I think a lot of retailers try to fly under the radar. Traditionally, retailers do not want to get involved. It’s the little guys (the wineries) that spearhead the effort where there’s a real constitutional question as to why somebody in Texas can’t get a bottle of wine from somebody in California. Something that’s not available in Texas.

I think it’s a great constitutional argument, and I always thought, from day one that there would be compromises in the system at some point. I don’t know when, but so that one would be able to get a bottle of wine from somewhere else. And having it shipped, that will never affect retailers. I think it’ll be a long, long day before retailers have that ability – you know, the ability to ship around at will.

WSD: To ship directly to consumers?

Darryl: Yeah. I just don’t see it happening. For one, retailers are not cohesive. You understand how the laws are written in this business. They’ve been around for a long time and the distributors are adamant about protecting underage drinking and protection of taxes and things like that and I just don’t see the laws changing.

That’s another problem with the shipping laws. You’re saying something to me and I was a retailer in Illinois and I’m not sure that was correct, or it just – it’s not, it’s not framed that way. There was some talk about retailers in Illinois that they weren’t going to be able to deliver within Illinois and nobody even paid attention.

WSD: Right. Okay.

Darryl: I don’t see instant shipping being affected, but like I said, I don’t see there being a time when people will be able to ship around. And everybody talked about that Granholm decision, and all that did was make it more restrictive, not less restrictive. I’ve got to tell you Megan, as a retailer, a lot of that stuff I didn’t pay attention to. It was just maddening, and I didn’t – and there was so much else to do that a lot of times we’d concentrate on other things.

It’s a big deal when you’re shipping to a state and then it becomes a felony to do it; that’s a big deal. I had different things going on. I think I had a case with Florida once, and you get ‘cease and desist’ letters every once in a while, and I didn’t like that. I didn’t like having to say ‘Forget it, I’m not going to ship there’ because then you lose a lot of customers in that state.

WSD: A second ago, you were talking about one of the big things you’ve seen change in the business is consolidation. How is consolidation at retail specifically affecting the wine and spirits business?

Darryl: Well, you have an 800-pound gorilla like Costco that’s a great company and makes a lot of money; it could make a lot more if the prices were higher, but it’s very tightly run and the leader of the company wants to make that certain gross margin. As a result, the prices are really low. But the difference between Costco and Sam’s Club or Costco and Wal-Mart, and I’ll say this carefully, more affluent people, the kinds of people that buy wine for $10 a bottle and higher, are going to go to Costco.

Another thing I saw in Chicago was that Costco is kind of a cool place to go for young people, and I presume even though I have no way of knowing this statistically, but those people who were between 21 and 29 years old, for example, they would go to Costco. They would go to Costco and see the brands they know like Heineken and Miller and Absolut and things like that, and they would buy it there. And as people get busier and there are more demands on everybody’s time, people have more email to read and more people to talk to, you want to knock a stop off once in a while.

WSD: Thanks Darryl. Stay tuned for part two tomorrow...

To view Darryl’s website, go to www.darrylrosen.com

V&S BIDS BY JANUARY

A report in Reuters says Fortune, Pernod, Bacardi and Diageo are set to submit indicative bids for Vin & Sprit by the end of January.

MALIBU LAUNCHES “GET YOUR ISLAND ON”

Pernod’s Malibu brand is launching a “Get Your Island On” global advertising campaign today. Created by Droga 5 and Publicis, the campaign will debut in the U.S. on December 24 with two television executions on networks including Comedy Central, USA, and Spike. “Get Your Island On” will expand in the United States with print, radio, out-of-home and additional television executions in the spring.

SVEDKA VIOLATES “GOOD TASTE” PROVISION

In an interesting article in Ad Age, reporter Jeremy Mullman reveals that Svedka was the most-cited advertiser in Discus’ Semi-Annual Code Report, which covered January through June of this year. Some of the offending taglines were “Gay men still prefer Svedka over sex with women” and “Did your private sex tape just go public? Blame Svedka.” The review board found the taglines were in violation of its “good taste” provision and Svedka pulled the ads.

According to Ad Age, both content complaints against Svedka in this round came from other Discus members – not from the general public.

“We're in compliance, we will remain in compliance, and that's really all we have to say,” said a Constellation spokesman to Ad Age.

To read the article, click here.

EUROPE TRADES TRADITION FOR PROFIT

Now that the EU has agreed on a number of wine industry reforms, what does it mean for the rest of us? In the spirit of simplicity, the EU is pushing tradition aside in favor of New World practices that work, such as clearer labeling and (gasp) marketing brands.

In the next few years you’ll see more European wine brands promoting single-grape wines like Syrah or Sauvignon Blanc. Also, fancy labels will be replaced with easier, more direct labels. How so? Producers will be able to state the grape variety and vintage on the bottle rather than simply the area of origin.

If the reforms go according to plan, overproduction will be a thing of the past – or at least not as bad as it is now. The EU will grant subsidies to poor farmers with undrinkable wine to dig up their vineyards, freeing up money and room for notable wine producers. Money that would have been spent on unprofitable wine will now be spent on marketing and emerging in new countries, such as India and China.

Furthermore, planting restrictions will eventually be phased out (2015 at the earliest), allowing better winemakers to expand according to demand.

“We are not afraid of New World wines,” said Jaime Silva, Portuguese agriculture minister, who chaired the talks, as quoted in the Financial Times. “We are losing market share but this reform gives us the chance to change tack.”

REMY COINTREAU USA NAMED VINCENT DUHEM AS VP, MARKETING

In his new role, Vincent will work directly with France and Remy Cointreau USA's spirit agency partners on the creation and execution of marketing strategies. He recently served as the Champagne International Director of Marketing at Remy Cointreau S.A. in France.

EU FARM MINISTERS (FINALLY) REACH A COMPROMISE

The EU farm ministers finally reached a deal today (December 19) on reforming its wine policy. Of course, the parliament's role is only consultative and governments can overrule the assembly on any of the amendments. Here’s what the farm ministers came up with:

1. The EU will offer more cash to many countries, particularly Italy and Greece
2. They will phase out many traditional subsidy areas, such as emergency distillation over a four year period. Crisis distillation will continue to be an option in case of a real emergency.
3. EU Agriculture Commissioner Mariann Fischer Boel agreed to extend the existing ban on new vine plantings from 2013 to 2018.
4. Sugar may continue to be added to wine during production, as long as they specify the practice on the bottle’s label.
5. Fischer Boel also softened her proposal to encourage winemakers to dig up unprofitable vines. Fischer Boel reduced the target area to 175,000 hectares and the length of the plan from five years to three. Those winemakers, however, will receive generous subsidies.

“There are so many tensions and so much cultural heritage, emotion in wine. It wasn't exactly what I wanted but I had to take stock of the majority of member states,” said Fischer Boel to the press.

COSTCO CEO RAKES IN $3.2 MILLION

Costco CEO Jim Sinegal, 71, made $3.2 million in 2007, according to a proxy statement filed yesterday with the Securities and Exchange Commission. Most chief executives made a median of $8.3 million in 2006, according to The Associated Press, but we don’t think he’s complaining too much. He owns Costco shares worth $165.11 million at Tuesday's closing price of $68.45, as well as options to buy another 1.12 million shares, according to Business Week.

DIRECT SHIPPING PROPONENTS FILE AMICUS BRIEF IN INDIANA

The Family Winemakers of California filed an amicus curiae brief in the 7th Circuit Court of Appeal last week asking the court to sustain the U.S. District Court’s decision in Baude v. Heath. Last month, wholesalers appealed the District Court’s decision to strike down face-to-face requirements in August.

The lower court said the face-to-face requirement “discriminates” against out-of-state wineries and therefore violates the Dormant Commerce Clause. As you’ll recall, most wineries think face-to-face requirements are protectionist because it requires consumers to visit a winery first before placing internet and phone orders for direct to consumer shipments. They argue that it’s easier for Indiana residents to visit an in-state winery than an out-of-state winery.

“Indiana consumers were granted unfettered choice in wine by the lower court, which invalidated portions of Indiana’s direct shipping statute,” said Paul Kronenberg, FWC president, in a statement. “We argue that the state laws that were invalidated fail on constitutional grounds and are clearly designed as economic protection for Indiana wholesalers.”

BONNY DOON TO LABEL WINE INGREDIENTS

As WSD reported in the beginning of December, Bonny Doon will voluntarily label all wine ingredients on the back of the bottle beginning with the 2007 vintage white and 2006 vintage red wines. One section of the label will highlight the wine’s basic ingredients, such as grapes and sulfur dioxide, a preservative, found in the wine. The second section will point out ingredients used in the production of the wine such as bentonite that essentially no longer remain in the wine.

The first Bonny Doon Vineyard wines featuring the new ingredient labeling are the Demeter certified Biodynamic 2007 Ca’ del Solo Albariño and 2007 Ca’ del Solo Muscat, slated for a February 2008 release.

Bonny Doon’s new labeling system is controversial in the wine world as vintners face two new proposals from the Alcohol and Tobacco Tax and Trade Bureau. The TTB is now considering requiring all alcoholic beverages to list allergens on their labels, including egg whites and milk proteins, and serving facts information, such as carbohydrates and calories.

FORMER DOMECQ PRES. SENTENCED TO 10 YRS. IN PRISON

The former president and co-owner of Domecq Importers Inc. of New York and Conneticut was sentenced to 10 years in prison for conspiring to commit tax fraud and to defraud Allied Domecq, the Department of Justice announced today. Michael Domecq, sentenced today in the U.S. District Court in Manhattan, will serve two consecutive 60 month sentences. Domecq will also pay more than $4.5 million in restitution.

Domecq, who was originally indicted on Sept. 5, 2000, pleaded guilty to the charges on June 26, 2007, in U.S. District Court in Manhattan. According to the indictment, Domecq and other top executives at Domecq Importers, with the assistance of certain outside vendors of advertising materials and services, diverted more than $14.6 million from Domecq Importers into their personal offshore bank accounts. The conspiracy took place from at least as early as 1989 until October 1995. Domecq and the co-conspirators also failed to pay income taxes on most, if not all, of the diverted money.

In accordance with the plea agreement, Domecq filed amended tax returns with the Internal Revenue Service (IRS) from 1989 through 1994, as well as original tax returns for 1995 though 2006.

It gets worse. Michael Domecq was extradited from the UK in 2007 following his 2006 arrest and conviction for possessing a false Spanish passport and illegally obtaining a United Kingdom driver's license. Formerly a resident of Greenwich, Conn., he moved to Spain in 1997 while the investigation was pending.

Three former top executives of Domecq Importers -- CFO Alfredo Valdes, VP of marketing Gabriel Sagaz, and VP of sales Thomas Kaminsky -- previously pleaded guilty to charges related to the same conspiracy. They were all sentenced to serve anywhere from 6 months to five years in prison, along with hefty fines and restitutions to the IRS.

Pernod acquired Allied Domecq in 2005, gaining brands like Stoli and Beefeater. Pernod then sold some brands to Fortune, including Sauza Tequila.

WINE AND SPIRITS UNCERTAIN THIS HOLIDAY SEASON

An article in Reuters suggests tough financial times might actually be a good thing for the wine and spirits industry. Trading up activity from consumers with higher discretionary income coupled with people who are suffering from the credit crunch could ironically help give wine and spirits a final sales boost the last week before Christmas. Of course, the industry won’t know until the holidays are over, but it’s always fun to try and predict the future.

“‘If (the consumer) continues to spend, then we'll have our typical big holiday season. If they don't, obviously sales might ease up a bit,’” said David Ozgo, chief economist for DISCUS to Reuters.

As you know, alcohol beverage companies can make up to a quarter of their U.S. annual sales between Thanksgiving and New Year’s Eve, so it’s a big time of year.

“I've seen a disappearance of the higher-end corporate customer,” said Steven Kaiden, who owns Winfield-Flynn Ltd Wines & Spirits, to Reuters. “The $100 per person (gift-giver) has sometimes traded down to $50.”

Super-premium brands have grown at double-digit rates in recent years, while value brands are down. The rate of decline has slowed a bit, though, which Ozgo said is probably due to some people who would normally drink premium brands shifting to value brands.

Brown-Forman, for one, said it was feeling the crunch during its second quarter results. Chief Paul Varga stated, “When times are challenging as we’re seeing today it’s more difficult for some of our consumers to pay the premium price for Jack Daniel’s with the regularity they normally do.”

As you’ll recall, Varga blamed the shift from Jack Daniels on several factors, but the most interesting theory centers around off-premise. Paul suggested that tough economic times keep consumers at home, where they are more likely to pop open a bottle of wine or a beer.

“When people move their consumption from on-premise to off-premise spirits suffers a little bit because they’re not as easy to prepare. Beer and wine is actually easier for consumers to prepare in their homes then making a Cosmo or a mixed drink at home,” said Paul during the conference call.

Executives from Bacardi, Diageo and Pernod all acknowledged consumers’ troubles, according to Reuters, but were much more optimistic then Brown-Forman.

Tim Ramey, an analyst with D.A. Davidson & Co., told Reuters that while there’s no doubt that consumers are weak, “I think wine and spirits probably is disproportionately positive in an environment like this.”

To view the Reuters story, written by Martinne Geller, click here.

To view WSD’s coverage of the Brown-Forman conference call, click here.

EU WINE REFORMS CONTINUE TO STALL

EU farm ministers are still failing to see eye to eye. According to the AP, France staunchly defended many of the old practices the EU hopes to overturn, such as turning unwanted wine into industrial alcohol or biofuels, during today’s meeting. Proponents believe the old practices are too expensive or cause overproduction, which has hurt the EU’s competitive ranking in the world market. It’s no secret that the EU wine industry has had trouble keeping up with the times, which is especially apparent in their marketing (or lack thereof) and antiquated labeling.

The EU Commission’s goal is not to cut the 1.3 billion euro ($1.9 billion) wine budget, but instead to spend the money in a different way. EU farm commissioner Mariann Fischer Boel wants to use the money to compensate vintners who want to leave the industry or dig up unprofitable vineyards. The money would also help the EU to promote successful wines in emerging markets such as India and China, says the AP.

However, the farm ministers are far from making a decision, and Portugal, which chairs the meeting, doesn’t want to move forward with a substantially watered-down reform package. Portuguese Farm Minister Jaime Silva supports Fischer Boel’s proposals and believes the European wine sector “needs the courage to take sometimes tough decisions,” according to the AP.

WHERE COMPROMISE COMES INTO PLAY. As we said before, France disagrees strongly with a proposed ban on crisis distillation of excess wine. Crisis distillation reportedly takes up half a billion euros in subsidies that Fischer Boel believes would be better served elsewhere, such as boosting profitable wine companies by allowing them to expand their land. The French disagree and claim vintners would be hard hit if the tradition was taken away. As a result, Fischer Boel yielded to pressure and agreed to let subsidized distillation continue until 2010/2011.

The EU farm ministers most recently decided to end the plan’s controversial proposal to ban sugar in winemaking. So far, the group agreed to allow countries to add sugar to wine as long as they specify the practice on the bottle’s label. Fisher Boel, however, wants to reduce limits on using sugar or concentrated grape must, which is used in sunnier southern EU countries, for enriching wine.

Fisher Boel already compromised by extending the EU’s existing ban on new vine plantings until 2015. Some countries wanted the ban extended even longer (ahem, France), while others don’t want to see it end at all. Currently, the EU does not allow new plantings until 2010. Fischer Boel, on the contrary, wanted to do away with rigid planting rules so profitable companies can boost wine production.

She also softened her proposal to encourage winemakers to dig up unprofitable vines. Fischer Boel reduced the target area to be dug up and the length of the plan from five years to three.

Since little progress was made on the proposals Monday and Tuesday, negotiations are likely to continue tomorrow (Dec 19).

HOW MORE WHISKEY HELPS THE ON-PREMISE

There’s an interesting article in National Restaurant News that touches on the growing influx of whiskey/whisky and its pros and cons.

As Stephen Beaumont puts it: “There was a time when the world of whiskey, or whisky, as the Scots and Canadians spell it, was simple and straightforward...The downside of the whiskey market today is that it’s more complicated, a lot more complicated. The upside is that the possibilities appear to be almost endless.”

“What all this means to a beverage manager is simple: greater profits from more specialized selections. The caveat being that, more than ever, it’s important to do your homework before placing your next whiskey, or whisky, order,” he continues.

To check it out, click here.

DISCUS ADOPTS NEW INTERET ADVERTISING GUIDELINES

In an important development, DISCUS has issued a new industry-wide buying guideline for placing online ads and marketing materials on third party websites to meet the industry’s 70% 21 years of age and older demographic standard. The guidelines go into effect Jan. 1, 2008.

In all, the guidelines dictate which demographic measurement tools are appropriate, including syndicated data sources, independent demographic surveys and website “register user” databases are. As with other media, the guideline also requires the use of post audits and corrective measures for future placements if an audit indicates the placement did not meet the 70% 21 years of age and older demographic standard.

The new guideline will apply to all paid and unpaid placements under the control of the advertiser including ads on third-party websites, video advertisements, audio mentions, internet banners, pop-ups, sponsorships, user-generated content (including blogs) and “limited edition” websites.

To view the guidelines in entirety, click here.

ABSOLUT PEARS VODKA

is launching an ad campaign from December 20 to January 4 on 10,000TouchTunes music systems nationwide. TouchTunes Corp. is the largest on-location interactive entertainment and marketing network, operating digital jukeboxes and digital entertainment systems.

TTB EXTENDS COMMENT PERIOD FOR AVA PROPOSALS

The TTB is extending the comment period for Notice No. 78, Proposed Revision of American Viticultural Area Regulations, for an additional 60 days, and extending the comment period for Notice No. 77, Proposed Establishment of the Calistoga Viticultural Area, for an additional 90 days. Written comments on Notice Numbers 77 and 78 must now be received on or before March 20, 2008.

To read more about the proposals, click here.

SMALL WINERY IN OK “TAKES ADVANTAGE” OF JOE FRANCIS

America’s other favorite con, Joe Francis, is in a tizzy over “Girls Gone Wine” winery, based in Broken Bow, Oklahoma. He says the small winery infringes on his tasteful “Girls Gone Wild” video empire, which features topless college girls and ultimately landed Francis in jail.

The AP reports that an attorney for Mantra Films Inc. sent a letter to the women threatening legal action if they continue using the name. The women filed a lawsuit in federal court in Muskogee so the issue could be resolved in Oklahoma rather than California, where Mantra is based.

“It just backs up everything that people have tried to do to me over the last few years to take advantage of me and we're tired of it,” he told The Oklahoman in a telephone interview from jail in Reno, Nev. Poor Joe!

He is awaiting trial on a tax-evasion charge. He also is facing criminal charges in Florida of use of minors in a sexual performance and conspiracy to use minors in a sexual performance.

The women's attorney, Martin Ozinga of Oklahoma City, said, “The United States Patent and Trademark Office has already said, 'There's no issue here. They can co-exist.’”

585 WINE PARTNERS FORMS J-V WITH QUIVIRA VINEYARDS

585 Wine Partners announced it has entered into an equity partnership with Quivira Vineyards in the production, marketing and distribution of Steelhead, a Dry Creek Valley brand introduced by Quivira in 2003. Steelhead becomes the newest addition to 585 Wine Partners’ brand portfolio which includes Red Truck Wines, Picket Fence Winery and the recently introduced Bivio Italia.

The Steelhead brand began as a tribute to Quivira's commitment to restoring the steelhead and Coho salmon habitat in Wine Creek, a tributary to the Dry Creek River that runs through its estate. As a part of their Steelhead brand partnership, 585 Wine Partners and Quivira have agreed to expand this watershed conservation alliance with Trout Unlimited.

Steelhead will continue to be made by Quivira Vineyards winemaker Steven Canter, who also oversees Quivira’s vineyard management. However, Steelhead Red, the previous blend made by Quivira, will be replaced with two new wines: a Dry Creek Zinfandel and Dry Creek Sauvignon Blanc. Steelhead will initially be distributed in California, Oregon, Washington, Alaska, Colorado, South Dakota, Texas, Virginia, North Carolina, and South Carolina.

THE SPECIALTY WINE RETAILERS

is conducting a symposium February 27 entitled, Wine Retailing 2008: Change & Opportunity. It takes place in Santa Rosa, Sonoma County, California at the Kendall Jackson Wine Center. The symposium is mean to “address the needs and interests of retailers who sell direct.”

Tickets are $200 per person until January 1. To learn more, click here.

UB GROUP CONSIDERS BUYING DALMORE U.S. DISTRIBUTION RIGHTS

India’s Economic Times is reporting that UB Group is considering buying the US distribution rights to Dalmore Single Malt, currently owned by Beam Global. UB chairman Vijay Mallya is expected to pay $60-80 million for the Whyte & Mackay brand, a British company that Mallya purchased earlier this year. When contacted by the newspaper, a top UB Group official confirmed the move.

Sources also said that Mallya was keen on acquiring the rights from Beam Global because the company “was unable to tap the full potential of the brand owing to conflict of interest.” The conflict of interest, it seems, is Beam’s other leading single malt, Laphraoig.

“United Spirits and Whyte & Mackay feels Jim Beam is not tapping Dalmore’s fullest potential, which is very evident in its sub-premium pricing,” the source told the Economic Times.

The deal could happen as early as January 2008.

TAITTINGER FAMILY REGAINS NAMESAKE CHAMPAGNE

The Financial Times reports that the Taittinger family will soon control its namesake champagne more than two years after selling the business to Starwood Capital. The family plans to buy-out management from French bank Crédit Agricole Nord-Est along with the help of ten family friends, which just so happens to be 10 of France's wealthiest families. The deal allows the Taittinger family to buy up more shares over time to give it control of the business.

Starwood sold the champagne business to Crédit Agricole Nord-Est while the Taittingers continued to oversee the operations.

GEORGE DICKEL NO. 8 SCARCE THIS HOLIDAY SEASON

Diageo’s George Dickel Whisky No. 8 is scarce this year after the Dickel distillery shut down production from 1999 to 2003 as a way to reduce inventory. Its other brands, Superior No. 12, Barrel Select and Cascade Hollow Batch, are still available.

"It's a temporary setback," said Gary Galanis, a vp for Diageo, to the Associated Press. "No. 8 will be back in early 2008."

The shortage follows a glut of Dickel during the 1990s. A previous marketing plan ramped up production during a failed attempt to replace Jack Daniel’s as the top Tennessee whiskey.

FORTUNE ACQUISITION COMPLETE, SO WHAT’S NEXT?

Constellation completed the acquisition of Fortune Brands’ U.S. wine portfolio today for $885 million. The acquisition includes Clos du Bois, Wild Horse, Geyser Peak and others, as well as five wineries and vineyards in some of California's finest wine growing regions. The company is formulating an integration plan for the acquired assets and will announce details when the plan is finalized.

If you look at Constellation’s last big winery acquisition, Robert Mondavi, there are two factors at play: lay-offs and selling off brands. Constellation laid off approximately 200 people after acquiring Robert Mondavi, which leaves many employees, 550 total, at Beam worried to say the least. However, a spokesman for Beam told the Press Democrat that it was premature to speculate and that it’s not a “one-size-fits-all situation.” There’s also a chance that Constellation will sell off Beam’s non-core brands, wineries and/or vineyards, much like it did with Mondavi. Only time will tell.

PERNOD STAYS COY ON STOLI REPORTS

Despite reports yesterday that the French company is close to purchasing the full rights to Stoli vodka brand for $1.45 billion, the company said nothing has changed. Pernod said it still awaits final approval from the Russian government, among other steps. As you’ll recall, Pernod acquired the rights to Stoli outside Russia when it bought the brand from Allied Domecq in 2005. The agreement with SPI, owners of Stoli, expires Dec. 31, 2010.

Shares of Pernod were up 1.7%, or $3.69 to $219.79 today (Dec. 17) in Paris after a report by British publication The Mail said that Pernod was planning to acquire the full rights to Stoli by next May.

Patrick Ricard has said in the past that Pernod would either acquire Stoli or Absolut, but not likely both. Pernod is currently considered a front-runner for Absolut.

“Stoli is the company's number one priority,” said a source close to the company to The Mail. “Pernod believes its future depends at all costs on owning a leading vodka brand.”

COLUMBIA WINERY HEADS EAST

Columbia Winery is reportedly leaving its building in Woodinville for new winemaking and bottling operations in Eastern Washington. According to the Seattle Times, the winery is looking for a visitor center nearby. It has not yet determined what will happen to all its 54 employees.

EU MINISTERS RESTRICT VODKA TO CEREALS AND POTATOES

EU agricultural ministers reached an agreement on new regulations concerning the production and labeling of spirits, including the definition of vodka. Under the legislation, traditional vodka made from cereals and potatoes will feature a label simply saying “vodka.” Vodkas made from non-traditional materials, such as grapes, must specify the ingredients on their label.

“I am pleased that we were able to reach a pragmatic compromise on the definition of vodka,” said EU Agriculture Commissioner Mariann Fischer-Boel.

The terms “London gin” and Scotch Whisky” were also protected, along with a number of flavoring, sweetening and coloring restrictions for whisky.

ABSOLUT LETTERS HIT THE PAVEMENT

The Swedish government said yesterday (December 13) that it has contacted over 30 potential bidders for Vin & Sprit.

“On Tuesday morning a number of letters, more than 30, were sent to those who had notified us of their interest already, as well as others which Morgan Stanley had identified as potential participants,” Financial Markets Minister Mats Odell told Reuters.

As you would expect, Odell would not say how many of the potential bidders had responded so far.

Surprisingly, Esmerk Danish News claims Carlsberg is interested in making a possible bid, particularly on the V&S units that distribute wine and produce local spirits brands.

HENNESSY LAUNCHES MOST EXPENSIVE CONGAC

Yesterday, Hennessy launched the world’s most expensive Cognac in honor of Killian Hennessy’s 100th birthday. Killian is the sixth generation descendant of Hennessy’s founder.

The limited edition blend, featuring samples from 1907 to 1960, costs 150,000 euros. Entitled Beauté du Siècle, it is packaged in a Baccarat crystal bottle that comes in a handmade mirrored glass and aluminum chest. Only 100 chests exist and the special cognac blend is not sold separately.

AUSTRALIANS CAN’T CATCH A BREAK

If it’s not one thing, it’s another. As a country that exports 53%of its production, Australia depends heavily on global sales, particularly exports to the UK and US. But recently several factors have turned against Australia, including currency, severe drought and, some would say, complacency. Let’s take a look at some of the overriding issues the land down under faces today.

AUSTRALIAN DOLLAR IS UP, UP, UP. Cheaper exports – we’re talking price, not quality – has always been one of Australia’s key selling points. However, the nation’s currency is at a 23-year high while the US dollar is depreciating daily, which means Australia may soon lose its price advantage. Good news for domestic wineries, but not good news for importers.

At first, rising prices looked like a good thing after many Australian growers and wineries lost loads of money at the hands of cheap bulk exports, a result of repeated grape gluts. However, a rising Australian dollar coupled with a devastating drought may take prices a little higher than the industry had planned.

Australian wineries face two options. One, they can cut profit margins and keep brands competitive, or two, companies can raise prices and risk losing market share of wine exports. If Australian prices go up, cost conscious consumers can always turn to Chilean wines or other inexpensive imports to take its place. Some Australian vintners may eventually follow in the footsteps of Lindemans’ Country of Origin Range and outsource their grapes for exports to the U.S. and Europe. The Lindemans label now includes Chilean and South African wines.

The Winegrape Growers of Australia (WGGA) says the cost of grapes from the 2007 harvest rose 5% from the previous year. Average prices per bottle rose 2% in 2007, the largest increase in eight years and the first since 2003.

DROUGHT PUTS A DENT IN THINGS. For a long time Australians had too much wine and it’s all we ever heard about. Now, producers worry they won’t have enough.

As a quick refresher, the 2008 vintage is expected to be as low as 800,000 metric tons, about 43% less than the 2007 harvest (1.4 million tons), and as high as 1.3 million tons.

The drought has left many growers with little water for their vines, particularly in the Murray River Basin, with water reserves at only 20% of capacity. As you’ll recall, about 70% of Australia wine is grown in the Murray-Darling region. Growers are still smarting from recent next-to-nothing grape prices and are unable to pay for expensive water. As a result, some growers have already cut down 30% of their vines. The WGGA reported earlier this month that as many as 1,000 of Australia’s 7,500 winegrowers are likely to leave the industry in the short term.

TURNING A DEAF EAR TO CONSUMERS. So what about complacency? An article last week by Mark Ritson, an associate professor of marketing at Melbourne Business School, accuses Australian producers of being “in grave danger of suffering from a fatal case of strategic amnesia.” He draws this conclusion after witnessing several Australian vintners dismissing the advice of Dan Jago, the director of beer, wine and spirits for British supermarket Tesco, at the Winemakers Federation of Australia's annual outlook conference in Melbourne.

“Tesco is a retailer that has put extraordinary consumer understanding at the heart of everything it does,” writes Ritson. “If Jago tells Australian wine producers they need to change, it is not the personal opinion of an arrogant Pom; he is speaking for a market he knows infinitely better than any Australian winemaker does.”

In all, Jago accuses Australian wine producers of complacency and failing to listen to the ever-changing demands of the almighty consumer. He challenges them to make their wines lighter and more refreshing, and pointes out that if they don’t, other countries such as South American will beat them to the punch.

OPICI WINE GROUP TO IMPORT KWV WINES

New Jersey-based importer and wholesaler Opici Wine Group will become the U.S. importer of South African-based KWV winery. The deal covers the entire KWV portfolio except for Golden Kaan, which is marketed by California’s Golden Kaan USA.

Opici recently acquired Finger Lakes Premium Wines (FLPW), a distributor of Finger Lakes wines in the upstate New York market.

MUCHOTE TEQUILA DEBUTS WITH VIRTUAL TASTING

MuchoTe Tequila Reposado, a new Agave spirit to hit the shelves in late December, is the first ever tequila to be launched on the internet through a virtual tasting. The online virtual tasting is scheduled for January 29 on tequila.net. Members can reserve an inaugural, limited production bottle prior to the release date on December 26, 2007.

A VIRGINIA BILL PROPOSING TO OUTLAW OPEN CONTAINERS

has been filed for review during the 2008 regular session. Violators would face $25 fines, according to local reports. It includes exceptions for passengers in RVs, buses and limousines.

EU PARLIAMENT SIDES WITH NORTHERN VINTNERS

The European Parliament voted yesterday (December 12) against a ban on adding sugar to wine, a popular technique in northern European countries. The EU agricultural ministers are expected to finalize a compromise on the reform next week. The parliament's role is only consultative, and governments can overrule the assembly on any of the amendments. But the vote by EU lawmakers -- some of them originally farmers by profession -- is an important indicator of trends in the member states.

The EU member states hope to reach a deal by the end of the year, although the most contentious issues are yet to be settles, according to the AP. To read more, click here.

DUI OFFENDER PROMOTES SPARKLING WINE

America’s favorite ex-con, Paris Hilton, is launching a new sparkling wine in a can. In the ads, Paris is nude, covered in gold paint and crawling across a desert to market her brand, Rich Prosecco. Characterized as “The perfect 'starter drink' for your night or a special pleasure as a reward at the end of the day,” Rich Prosecco will launch in Germany this week and the U.S. next year. The brand comes in original, passion fruit and strawberry flavors.

As you’ll recall, Paris spent 23 days in jail this June for driving with a suspended license after receiving probation from a previous DUI charge.

NAPA VINTNERS GRANTED MORE TIME TO PROTEST

The heated debate surrounding Calistoga, AVAs within AVAs and wine labels may stick around a little longer than we originally thought. A spokesman from the TTB says the he expects the bureau to extend the amount of time vintners have to respond to its controversial proposals, according to the St. Helena Star. As formally request by Rep. Mike Thompson, the extension will last until March 22. Vintners were originally given until Dec. 20 to respond to some of the proposals, and until Jan. 22 to respond to the rest.

As you’ll recall, the proposals would create a “grandfathering clause” for Calistoga Cellars and alter the government’s rules on establishing AVAs. The “grandfather” clause would allow Calistoga Cellars to keep “Calistoga” on its labels although its wines are not made from 85% of Calistoga grapes. Calistoga Cellars said it is willing to place disclaimers on the back of its labels as a result. Calistoga Estates, which also does not source 85% of Calistoga grapes, would have to change its name because it was formed after the “grandfather” cut-off date.

The TTB says its goal is to prevent wineries from trying to stifle competition by applying for AVAs within AVAs. Wineries against the proposals argue that a “grandfather clause” would hurt the value of the Calistoga name and mislead consumers.

To read more background on the proposals, click here.

BOCA LOCA CACHACA APPOINTS NEW CEO

Boca Loca Cachaça Co., producer and importer of Boca Loca Brazilian Cachaça, has appointed Lee E. Strader as its new CEO and Martin Bart to assist the executive team as a key strategic consultant.

SAFEWAY CONFIRMS SMALLER FORMAT, SORT OF

A report in Retail Wire says Safeway has developed a store layout in northern California similar to Tesco’s Fresh & Easy U.S. entry. A spokesperson for Safeway said that looking at smaller formats really isn’t a big deal and that “all we do is rooted in consumer research, and we do realize that there are different kinds of shopping trips.”

DANIEL WIRTZ TO HEAD DIAGEO INITIATIVE

Judge & Dolph, the exclusive Diageo distributor in Illinois, says Daniel Wirtz will lead the distributor’s efforts to meet Diageo’s goal of doubling the growth rate of Diageo Reserve Brands in Illinois by 2011. Daniel is the great-grandson of Arthur Wirtz, founder of Judge & Dolph, and joins the company after working at marketing companies in New York and London.

JOHNNIE WALKER BLUE GETS PERSONAL

Consumers will have the option to personalize a bottle of Johnnie Walker Blue for the holidays. Diageo is offering consumers a complimentary custom engraving of an unopened bottle of Johnnie Walker Blue in 20 states in the U.S. Visit www.johnniewalker.com/engraving for more information on the engraving program. Bottles may be engraved in several languages including English, Spanish, Chinese and Korean.

PERNOD FAIRS WELL IN THE U.S.

Not everyone agrees with Brown-Forman’s assessment of the U.S. spirits market late last month. In a research note yesterday, Melissa Earlam of UBS stated that Pernod management is confident that underlying trading in their markets remains good.

“In particular,” wrote Melissa, “given Brown-Forman’s more cautious comments on the US spirits market on 29 November, Pernod (as well as Diageo, Remy Cointreau and Campari) is still seeing strong premium trends continue and the on-trade holding up well in the US at present.”

EVANS & TATE STRIKES DEAL WITH GROWERS

As we know, things are kind of tight for Australian grape growers right now, but a few vintners in Margaret River can breathe a sigh of relief after signing a contract with Evans & Tate. According to ABC News, Margaret River grower Mark McAuliffe says six growers in his group have signed long-term contracts to supply Evans & Tate, which will be formally taken over by McWilliams Wines today (Dec. 12). McAuliffe told ABC that after a “long period of uncertainty for all growers...now we can just knuckle down and make sure we grow the best grapes, knowing...that we'll get paid at the end of the day.”

As you’ll recall, E&T met financial downfall at the hands of the recent grape gluts and a loss of share in the U.K. market. E&T went into voluntary receivership in August after ANZ bank foreclosed on a A$100 million loan to the company. The receiver, McGrathNicol, in turn entered an interim agreement with McWilliams. The rest is history.

Growers do not expect to hear any word about compensation for the money they lost when Evans and Tate went into receivership for the next six to 12 months, said ABC.

FORTUNE ACCUSED OF UNFAIR ADVANTAGE IN RACE FOR ABSOLUT

The auction for Absolut was hit with criticism just a few hours after it was officially announced. According to a report in the Telegraph today, investment bankers are warning that the sales process could be slanted toward Fortune brands and therefore flawed. Vin & Sprit’s joint-venture with Fortune in the U.S. (aka Future Brands) is believed by some to give Fortune an unfair advantage because it currently holds the distribution rights for Absolut in the U.S.

According to the article, one banker said: “The government could have a problem given the toxic distribution contract. There is a real question mark over whether they can run a credible process. How can the others make a competitive bid?”

However, other City analysts point out that although Fortune has an advantage in the U.S., there’s no denying the fact that its bigger rivals, Diageo, Pernod and Bacardi, will pose as tough competitors.

Most analysts believe Bacardi is the most likely rival to Fortune. As WSD has mentioned before, Diageo will likely face competition issues in the U.S. because of Smirnoff, while Bacardi is a private company and has more leeway in deciding what price to pay. If V&S does go to another company, that company will likely have to cover the cost of any break-fee from its distribution agreement with Fortune. Considering Vin & Sprits’ auction is one of the last opportunities to acquire a premium brand, we have a feeling bidders will jump through a lot of hoops to get it.

EU MAY DROP BAN ON SUGARED WINE

EU Farm Commissioner Mariann Fischer Boel said this week that a ban on adding sugar to wine, a key part of planned reforms to the EU wine sector, may be amended, the Associated Press reports. Northern countries including Germany, Austria, Luxembourg and the Czech Republic strongly oppose the reform, which Fischer Boel says she is well aware of.

"There has been a huge row about this, and I haven't blocked my ears to this ... but a status quo does hold a genuine problem," Fischer Boel told the European Parliament, which was to vote on the draft reform on Wednesday.

The EU hopes to agree on the proposed reforms by the end of the year, although most of the proposals have yet to be settled.

BERINGER VINEYARDS LAUNCHES TV CAMPAIGN

In an unusual development in the wine world, Beringer Vineyards has started a multi-million dollar TV and print ad campaign in the U.S. The campaign launched last month and is meant to support Beringer’s new Third Century brand. Created by Publicis Groupe and Hal Riney, the TV campaign features stop-motion animation to tell the story of a bud transforming into grapes and then into wine, according to San Francisco Business Times.

The TV ad will run on networks such as A&E, the Food Network, Headline News and PBS, as well as on the Times Square Jumbo-tron in New York City. Print ads will start at mid-December in publications such as Food & Wine, the Wine Spectator and the New Yorker.

SCHRAMSBERG ESTATE HEIR SUES PARENT

Wine Spectator reports that Jamie Davies of Napa’s Schramsberg Estate is being sued by her son, John, for the third time over his share of the family inheritance. John claims his parents made verbal promises to him and his brothers that each would receive a one-third share of the Schramsberg winery estate and other assets upon their parents' death. Jamie Davies, who is still alive, survives her husband, Jack Davies.

To read more about the lawsuit, click here.

ABSOLUT BIDDING WAR, IT’S OFFICIAL

It's official folks, Absolut is on the auction block. The Swedish government today said it has begun contacting interested parties that Vin & Sprit, valued at $5-7 billion, is for sale. The sale is expected to be completed in 2008, said Swedish Financial Markets Minister Mats Odell.

Morgan Stanley, which is advising the government, is due to send the information memorandum on V&S to selected parties in the next few weeks, according to MSNBC. Interested bidders will be asked to submit first round indicative offers towards the end of January.

Here are some of the key factors. While the Swedish government confirmed the auction process was chosen to maximize value, according to WSJ, price is not the only factor in determining which company wins the golden egg. Furthermore, Odell said in a press briefing that V&S will be sold as one entity and not broken up. The Swedish company also owns Plymouth gin and Cruzan rum,

"Our analysis shows that the best option is to sell the company as one entity," he said as quoted in the WSJ.

Lastly, Odell said he thought Absolut production would remain in Sweden but that it was not a requirement for the sale.

"It will be the one who pays the highest price and the one who after a full assessment shows that it offers the best (deal) for the Swedish households," he told reporters, according to Reuters.

"I hope it can happen fast and in an effective way but it's not the specific time that is the most important but that we get the best possible price," Odell continued.

As you’ll recall, Pernod Ricard, Diageo, Fortune Brands, Bacardi, as well as Swedish investment company Investor AB and Swedish private-equity firm EQT have all shown interest in acquiring V&S.

So far, it looks like Pernod is the only one that’s talking. According to the Dow Jones newswires, a Pernod spokesman said, “We expressed our interest (for Vin & Sprits' Absolut) and we remain interested.”

When asked whether Pernod would be interested in buying the whole