Acquisition News for Pernod, RNDC and Heaven Hill
HEAVEN HILL FORMS J-V WITH TIERRA DE AGAVES
Heaven Hill announced today a joint-venture with Tierra de Agaves, the Mexican spirits company founded by Francisco Beckmann and sons, former co-owner of Jose Cuervo. The partnership involves joint ownership of the Lunazul and La Certeza Tequila brands, combining Heaven Hill’s global distribution network and marketing knowledge with Tierra de Agaves’ focus on cultivating estate-grown blue agave plants.
“In today’s environment of mergers, acquisitions and “right-sizing”, the coming together of two recognizable and highly successful family-owned spirits concerns is quite noteworthy,” said Heaven Hill in a press release.
Lunazul is a super-premium 100% agave Tequila offered in both Blanco and Reposado at $19.99 and $21.99, respectively, for a 750ml bottle. La Certeza, meanwhile, is available in Blanco ($40), Reposado ($45) and Anejo ($60) 750ml and 50ml bottlings.
RNDC ENTERS NEBRASKA WITH TWO ACQUISITIONS
RNDC has entered Nebraska for the first time by acquiring Nebraska Wine & Spirits and striking a deal to purchase Republic Beverage Co. RNDC has become the majority investor of Nebraska Wine & Spirits, now RNDC - Nebraska. Paul Epstein, former president of Nebraska Wine & Sprits, will serve as ceo of the new company, while Gary Epstein will serve as coo.
In addition, RNDC has struck a deal to acquire Republic Beverage Company of Omaha, Nebraska. A letter of intent has been signed by RNDC to acquire an interest in Republic Beverage Company, formerly known as United Distillers Products Company. Completion of the transaction is currently underway. RBC chairman David Friedland, president Ted Friedland and their entire management and sales team will remain in place with the RNDC organization.
PERNOD TO BUY LILLET APERITIF
Pernod plans on acquiring aperitif manufacturer Lillet for an undisclosed sum. The French drinks company will take over the maker of the Lillet aperitif, which is based on wine and fruit liqueur, and featured in the latest James Bond Casino Royale, from April, reports Thomson Financial. Philippe Savinel, CEO of Pernod Ricard's Ricard unit said Lillet is 'a growing brand' that will boost the company's aperitif product range and reinforce its strategy of increasing premium products. Lillet has 7 employees and is based near Bordeaux.
CAMPARI HEADED FOR A BRIGHTER YEAR IN 2008
Campari’s weak share price performance in 2007 now offers a buying opportunity for the Italian drinks group, according to a research note by analyst Melissa Earlam of UBS. The firm expects investor confidence to build for the following reasons.
“We believe investor confidence should build with the new CEO as the year progresses. Furthermore, we believe the shipment volatility for the Campari and SKYY brands should be behind us as of Q4 07, removing an area of uncertainty,” writes Melissa.
Furthermore, Campari may benefit from Remy Cointreau leaving Maxxium in March 2009. When Remy exits, Campari could distribute its brands in Germany, Italy and Brazil.
UBS changed its rating for Campari from neutral to buy.
AUSTRALIA PREPARES FOR BIG CHANGES
The future of the Australian wine industry is expected to change dramatically, says Mike Stone, chief executive of Murray Valley Winegrowers. Speaking to The Australian, Mike said smaller commercial wineries will likely lose out to large companies.
"At the moment there are a lot of small to mid-sized players in that commercial sector, but the pressure they have been under the last few years is going to see them leave," he said.
A combination of factors, including oversupply and now undersupply of wine, increasing competition from beer and spirits, a higher Aussie dollar and higher cost of raw materials, have seemingly taken their toll on the Australian industry.
As companies race to consolidate and grow, insiders say Australia must build on its strengths – innovation and quality – instead of competing on price and volume alone.
"We now need to compete in quality terms and price terms in a way that we haven't in our recent history. To an extent we have been giving it away. That doesn't build a credible premium for your brand franchise in the medium to long term," said Paul Henry, GM of market development with the Australian Wine and Brandy Corporation, as quoted in The Australian
ABSOLUT SOLD BY SUMMER
The Swedish government says it expects a deal with Absolut to be signed in the first half of 2008, according to local newspaper Svenska Dagbaldet.
“I believe, on good grounds, that interest in Vin & Sprit is strong, and that the potential buyers have good possibilities to finance a bid at a very good price,” said Mats Odell, Financial Markets Minister.
MORGAN STANLEY UPGRADES DIAGEO
Morgan Stanley upgraded Diageo to overweight from equal-weight as part of a note in which it grew more positive on spirits makers, according to Steve Goldstein of Marketwatch.
"We are more confident the spirits players will meet market expectations for earnings, as they have limited exposure to rising raw material costs and continuing growth from emerging markets, which supports positive price and mix trends. Spirits is a lagging sector that will be slow to respond to weakening consumer trends," the broker said.
WSD BRIEFS:
THE MASSACHUSETTS LICENSED BEVERAGE ASSOCIATION (MassLBA) has a new name and an expanded mission, the group said Friday (January 18). Now called the New England Licensed Beverage Association (NELBA), it will focus initially on raising awareness of both its organization and the industry in New England through the launch of its new trade magazine, Straight Up, which is set to debut in late February.
WE REGRET TO REPORT that Pioneering West Coast wine importer Henry J. van der Voort passed away January 14 after a battle with lung cancer. In addition to his wife of 62 years, he is survived by his four children, Henry (Jan Gausmann), Mimi, Betsy (Judge Randall White) and Peter (Beatrice Callens), and six grandchildren.
TTB COMMENTS DUE. Remember that this is the last week to make your comments known to the TTB regarding their proposed "serving facts" rule on labels. As a general rule, most wineries, brewers and small producers are against the proposals, while larger spirits companies support them.
Until tomorrow, Megan
“Trust men and they will be true to you; treat them greatly, and they will show themselves great.”
Ralph Waldo Emerson
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
Heaven Hill announced today a joint-venture with Tierra de Agaves, the Mexican spirits company founded by Francisco Beckmann and sons, former co-owner of Jose Cuervo. The partnership involves joint ownership of the Lunazul and La Certeza Tequila brands, combining Heaven Hill’s global distribution network and marketing knowledge with Tierra de Agaves’ focus on cultivating estate-grown blue agave plants.
“In today’s environment of mergers, acquisitions and “right-sizing”, the coming together of two recognizable and highly successful family-owned spirits concerns is quite noteworthy,” said Heaven Hill in a press release.
Lunazul is a super-premium 100% agave Tequila offered in both Blanco and Reposado at $19.99 and $21.99, respectively, for a 750ml bottle. La Certeza, meanwhile, is available in Blanco ($40), Reposado ($45) and Anejo ($60) 750ml and 50ml bottlings.
RNDC ENTERS NEBRASKA WITH TWO ACQUISITIONS
RNDC has entered Nebraska for the first time by acquiring Nebraska Wine & Spirits and striking a deal to purchase Republic Beverage Co. RNDC has become the majority investor of Nebraska Wine & Spirits, now RNDC - Nebraska. Paul Epstein, former president of Nebraska Wine & Sprits, will serve as ceo of the new company, while Gary Epstein will serve as coo.
In addition, RNDC has struck a deal to acquire Republic Beverage Company of Omaha, Nebraska. A letter of intent has been signed by RNDC to acquire an interest in Republic Beverage Company, formerly known as United Distillers Products Company. Completion of the transaction is currently underway. RBC chairman David Friedland, president Ted Friedland and their entire management and sales team will remain in place with the RNDC organization.
PERNOD TO BUY LILLET APERITIF
Pernod plans on acquiring aperitif manufacturer Lillet for an undisclosed sum. The French drinks company will take over the maker of the Lillet aperitif, which is based on wine and fruit liqueur, and featured in the latest James Bond Casino Royale, from April, reports Thomson Financial. Philippe Savinel, CEO of Pernod Ricard's Ricard unit said Lillet is 'a growing brand' that will boost the company's aperitif product range and reinforce its strategy of increasing premium products. Lillet has 7 employees and is based near Bordeaux.
CAMPARI HEADED FOR A BRIGHTER YEAR IN 2008
Campari’s weak share price performance in 2007 now offers a buying opportunity for the Italian drinks group, according to a research note by analyst Melissa Earlam of UBS. The firm expects investor confidence to build for the following reasons.
“We believe investor confidence should build with the new CEO as the year progresses. Furthermore, we believe the shipment volatility for the Campari and SKYY brands should be behind us as of Q4 07, removing an area of uncertainty,” writes Melissa.
Furthermore, Campari may benefit from Remy Cointreau leaving Maxxium in March 2009. When Remy exits, Campari could distribute its brands in Germany, Italy and Brazil.
UBS changed its rating for Campari from neutral to buy.
AUSTRALIA PREPARES FOR BIG CHANGES
The future of the Australian wine industry is expected to change dramatically, says Mike Stone, chief executive of Murray Valley Winegrowers. Speaking to The Australian, Mike said smaller commercial wineries will likely lose out to large companies.
"At the moment there are a lot of small to mid-sized players in that commercial sector, but the pressure they have been under the last few years is going to see them leave," he said.
A combination of factors, including oversupply and now undersupply of wine, increasing competition from beer and spirits, a higher Aussie dollar and higher cost of raw materials, have seemingly taken their toll on the Australian industry.
As companies race to consolidate and grow, insiders say Australia must build on its strengths – innovation and quality – instead of competing on price and volume alone.
"We now need to compete in quality terms and price terms in a way that we haven't in our recent history. To an extent we have been giving it away. That doesn't build a credible premium for your brand franchise in the medium to long term," said Paul Henry, GM of market development with the Australian Wine and Brandy Corporation, as quoted in The Australian
ABSOLUT SOLD BY SUMMER
The Swedish government says it expects a deal with Absolut to be signed in the first half of 2008, according to local newspaper Svenska Dagbaldet.
“I believe, on good grounds, that interest in Vin & Sprit is strong, and that the potential buyers have good possibilities to finance a bid at a very good price,” said Mats Odell, Financial Markets Minister.
MORGAN STANLEY UPGRADES DIAGEO
Morgan Stanley upgraded Diageo to overweight from equal-weight as part of a note in which it grew more positive on spirits makers, according to Steve Goldstein of Marketwatch.
"We are more confident the spirits players will meet market expectations for earnings, as they have limited exposure to rising raw material costs and continuing growth from emerging markets, which supports positive price and mix trends. Spirits is a lagging sector that will be slow to respond to weakening consumer trends," the broker said.
WSD BRIEFS:
THE MASSACHUSETTS LICENSED BEVERAGE ASSOCIATION (MassLBA) has a new name and an expanded mission, the group said Friday (January 18). Now called the New England Licensed Beverage Association (NELBA), it will focus initially on raising awareness of both its organization and the industry in New England through the launch of its new trade magazine, Straight Up, which is set to debut in late February.
WE REGRET TO REPORT that Pioneering West Coast wine importer Henry J. van der Voort passed away January 14 after a battle with lung cancer. In addition to his wife of 62 years, he is survived by his four children, Henry (Jan Gausmann), Mimi, Betsy (Judge Randall White) and Peter (Beatrice Callens), and six grandchildren.
TTB COMMENTS DUE. Remember that this is the last week to make your comments known to the TTB regarding their proposed "serving facts" rule on labels. As a general rule, most wineries, brewers and small producers are against the proposals, while larger spirits companies support them.
Until tomorrow, Megan
“Trust men and they will be true to you; treat them greatly, and they will show themselves great.”
Ralph Waldo Emerson
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
posted at 8:52 AM
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