More Details on Constellation
Constellation announced yesterday it was downsizing its company from 4 units to 3 units – namely, Vintas, Icon Estates and Centerra Wine Company – to make room for its newly acquired wine profile ($885 million) from Fortune Brands. Vintas is the newest addition and will house the company’s premium and super-premium U.S. wines. In other words, it’s what North Lake and Pacific Wine Partners used to be. The restructuring should be complete by March 1. Other details, however, were left out. Spokeswoman Nora Feeley for the company have said it’s too early to say if layoffs will result, and that decisions are expected by the end of January. Beam Wine Estates currently employs approximately 375 employees.
Former Beam employees are worried, according to a report by The Press Democrat’s Kevin McCallum, “given Constellation’s reputation for cost-cutting.” As you’ll recall, Constellation laid off 190 people after acquiring Robert Mondavi Corp., so Beam employees are hoping something similar doesn’t happen to them.
Several higher-ups are leaving the company, including president Bill Newlands, winemaker Darryl Groom and Beam spokeswoman Mary Burnham. Newlands is moving back to Fortune in a newly created position, senior vice president, U.S. Commercial Development. His appointment is effective February 1 after fulfilling his commitments to Constellation Brands.
As soon as we hear more, we’ll let you know.
SPIRITS VOLUMES STRONG IN NOVEMBER
U.S. control states volume looked good in November, with a solid 3.4% increase. Year-on-year comps were tough due to 6.7% growth in November 2006 but the industry managed to pull through, reports Melissa Earlam of UBS based on NABCA data. December, on the other hand, faces a very easy year-on-year comparisons of -3%.
Diageo grew 3.6% in November. The company gained share in Canadian whiskey (7% vs category growth 1%), rum (5.1% vs category 4.6%), cocktails (9% vs category 4%) and gin (2.3% vs category 0%). It lost share in vodka (6.3% vs category 7.5%), Cordials (-5% vs category 0%) and tequila (2.6% vs category 10%).
Meanwhile, Pernod, Brown-Forman and Campari lose share while Remy gains. Pernod’s volume performance continues to be weak at -0.3% year-on-year (+1.6% ytd). It gained share in Scotch (4% vs category -0.4%) and rum (7.4%), and cordials (2%). Like Diageo, it lost share in vodka (0%), gin (-2.6%) and brandy/Cognac (-40% vs category -2%). As you’ll recall, Pernod raised US prices across its portfolio at the start of August.
B-F grew 0.2% year-on-year (vs -1% ytd). Campari grew 0.7% and Remy grew 8.2%.
“We have Buy ratings on Diageo, Pernod and Brown-Forman. We continue to believe that US spirits have limited correlation with the economy and should grow volumes 2% to 3% with price/mix of 2% to 3% for 2007E,” said Melissa.
WSD BRIEFS:
BARACK OBAMA has gained endorsement from Unite Here, a union representing some 450,000 foodservice and hotel workers nationwide. The union praises Obama for supporting measures such as an increase in the minimum wage, the adoption of universal health insurance for all workers, and the replacement of secret unionization voting with public balloting. All of the measures have been opposed by the restaurant industry.
WILLIAM GRANT & SONS has appointed Jonathan Yusen as a new senior vp or marketing in the US. Yusen previously worked as a brand director for Allied Domecq and a consultant for Remy Cointreau USA.
KOBRAND CORP. has split its luxury driven wine and spirits portfolio into two separate sales and marketing companies – Kobrand Wines and Kobrand Spirits, led by Tom Congdon. The newly formed spirits division is anchored by Alizé, a 500,000 case global brand that is a blend of premium French cognac, passion fruit and French vodka.
COSTCO same store sales in the U.S. rose 5% in December and 4% excluding gas. Net sales were up 10% to $7.55 billion.
WAL-MART same store sales in the U.S. rose 2.4% in December and 2.7% without fuel. Total company net sales increased 8.4%.
HIRAM WALK, owned by Pernod, is introducing a new Hiram Walker Melon Liqueur. Hiram Walker Melon retails at about $9.99 for the 750ml.
IPHONE. If you have an I-Phone and are currently having problems reading WSD on your phone, let us know and we can change the format to accommodate the new technology.
Until tomorrow, Megan
“Sanity calms, but madness is more interesting.”
John Russell
--------- Sell Day Calendar ----------
Today's Sell Day: 7
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
Former Beam employees are worried, according to a report by The Press Democrat’s Kevin McCallum, “given Constellation’s reputation for cost-cutting.” As you’ll recall, Constellation laid off 190 people after acquiring Robert Mondavi Corp., so Beam employees are hoping something similar doesn’t happen to them.
Several higher-ups are leaving the company, including president Bill Newlands, winemaker Darryl Groom and Beam spokeswoman Mary Burnham. Newlands is moving back to Fortune in a newly created position, senior vice president, U.S. Commercial Development. His appointment is effective February 1 after fulfilling his commitments to Constellation Brands.
As soon as we hear more, we’ll let you know.
SPIRITS VOLUMES STRONG IN NOVEMBER
U.S. control states volume looked good in November, with a solid 3.4% increase. Year-on-year comps were tough due to 6.7% growth in November 2006 but the industry managed to pull through, reports Melissa Earlam of UBS based on NABCA data. December, on the other hand, faces a very easy year-on-year comparisons of -3%.
Diageo grew 3.6% in November. The company gained share in Canadian whiskey (7% vs category growth 1%), rum (5.1% vs category 4.6%), cocktails (9% vs category 4%) and gin (2.3% vs category 0%). It lost share in vodka (6.3% vs category 7.5%), Cordials (-5% vs category 0%) and tequila (2.6% vs category 10%).
Meanwhile, Pernod, Brown-Forman and Campari lose share while Remy gains. Pernod’s volume performance continues to be weak at -0.3% year-on-year (+1.6% ytd). It gained share in Scotch (4% vs category -0.4%) and rum (7.4%), and cordials (2%). Like Diageo, it lost share in vodka (0%), gin (-2.6%) and brandy/Cognac (-40% vs category -2%). As you’ll recall, Pernod raised US prices across its portfolio at the start of August.
B-F grew 0.2% year-on-year (vs -1% ytd). Campari grew 0.7% and Remy grew 8.2%.
“We have Buy ratings on Diageo, Pernod and Brown-Forman. We continue to believe that US spirits have limited correlation with the economy and should grow volumes 2% to 3% with price/mix of 2% to 3% for 2007E,” said Melissa.
WSD BRIEFS:
BARACK OBAMA has gained endorsement from Unite Here, a union representing some 450,000 foodservice and hotel workers nationwide. The union praises Obama for supporting measures such as an increase in the minimum wage, the adoption of universal health insurance for all workers, and the replacement of secret unionization voting with public balloting. All of the measures have been opposed by the restaurant industry.
WILLIAM GRANT & SONS has appointed Jonathan Yusen as a new senior vp or marketing in the US. Yusen previously worked as a brand director for Allied Domecq and a consultant for Remy Cointreau USA.
KOBRAND CORP. has split its luxury driven wine and spirits portfolio into two separate sales and marketing companies – Kobrand Wines and Kobrand Spirits, led by Tom Congdon. The newly formed spirits division is anchored by Alizé, a 500,000 case global brand that is a blend of premium French cognac, passion fruit and French vodka.
COSTCO same store sales in the U.S. rose 5% in December and 4% excluding gas. Net sales were up 10% to $7.55 billion.
WAL-MART same store sales in the U.S. rose 2.4% in December and 2.7% without fuel. Total company net sales increased 8.4%.
HIRAM WALK, owned by Pernod, is introducing a new Hiram Walker Melon Liqueur. Hiram Walker Melon retails at about $9.99 for the 750ml.
IPHONE. If you have an I-Phone and are currently having problems reading WSD on your phone, let us know and we can change the format to accommodate the new technology.
Until tomorrow, Megan
“Sanity calms, but madness is more interesting.”
John Russell
--------- Sell Day Calendar ----------
Today's Sell Day: 7
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 2:42 PM
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