Brown-Forman CFO Steps Down
Brown-Forman announced that CFO Phoebe Wood will retire at the end of the fiscal year (April 30, 2008). Phoebe joined the company as CFO in 2001 after a 23-year career at the Atlantic Richfield Company and Motorola. She will be replaced by Donald Berg who is currently a SVP and director of corporate finance. Donald is a 19-year veteran of the company. Prior to joining B-F, Berg served in a number of financial positions within the pharmaceutical industry.
"Phoebe brought thoughtful, trusted oversight to Brown-Forman's financial functions, and she has helped lead our company during a period of strong financial performance and development over the last seven years," said Brown-Forman Chief Executive Officer Paul Varga. "I know that our shareholders join all of us at Brown-Forman in thanking Phoebe for her excellent service to Brown-Forman and in wishing her well in her new endeavors."
"Those who have worked with Don over the last two decades know him to be a proven leader with a deep analytical mind who has demonstrated that he is ready to take on the important responsibilities of chief financial officer for Brown-Forman," stated Varga.
SECOND ROUND OF V&S BIDDING ENDS SOON
The second round of bids for Vin & Sprit is due in the last week of March, sources familiar with the situation told mergermarket. The remaining four bidders are EQT/Investor, Pernod, Fortune and Bacardi. Swedish PE firm Ratos, Finnish wine and spirits company Altia and Italian spirits group Campari have all expressed their interest in parts of V&S.
According to the report in the Financial Times, investors consider EQT/Investor to be one of the likely parties to make it to the final stages, but some question whether it could afford a full price. The report also said that it could cost as much as $400 million to break Fortune’s US distribution agreement with Absolut, and that potential bidders could set up foundations in order to evade competition rules.
2008 INDUSTRY SNAPSHOT
In our annual Truth Squad survey, we asked our subscribers to give us a better idea of what’s going on in the industry right now by outlining current trends. Our readers had a lot of interesting things to say in addition to some of the more obvious trends: online marketing, trading up, a softening economy and consolidation. Here’s a snapshot of what you had to say:
“The globalization and consolidation of the wine industry into large multinational corps, the effects of climate change on vineyards, and the issues within the US economy and the worldwide ripple effects.
“Softness in brand Australia, even Yellow Tail. Volume outpacing value under $8, with producers like Constellation and Diageo moving their focus ever upwards in price points.”
“Large spirits companies are squandering their resources on new product introductions to the detriment of their core brands. The true innovators are small, one to three brand, narrowly focused companies such as Sidney Frank, Kettle One and Patron.”
“Growth of crisp dry whites and non-traditional varietals like pinot grigio as well as more obscure ones like sangioves and tempranillo.”
“Organic, green, artisan.”
“Extraordinary number of private label and exclusive label wine brands appearing on retailers shelves.”
“Outsourcing fulfillment for suppliers and increasing market opportunities for international brands.”
“Spirits mixed with energy drinks...shots are very big!”
“Big retailers selling respected brands at lower prices are winning. Retailers are looking closely at the number of SKUs they are bringing in. Stringent and absurd DUI laws are negatively impacting the on-premise business in depletions, total check ring and customer traffic.”
“Direct sales are increasing - long tail sales encouraging greater outreach via direct channel.”
“Flavored everything distilled, Americans still love their Kool-aid. Anything different in wine. Finally consumers are trying new regions and varietals.”
“Dessert wines, Malbecs and Spanish seem to be hot. But German Riesling and German-style wine are on a huge upswing in central and northern Wisconsin.”
“Green green and more green also, backlash to high alcohol in wines.”
“On the wine side, everyone's trying to move up, away from the bottom end, either by re-branding or re-pricing or just flat-out getting rid of their cheapest wine lines.”
“Experimentation with brands. As consumers get more educated or more comfortable with any consumable, they tend to stray away from brand loyalty.”
“Bartenders getting away from flavored vodkas. Adding more whiskeys, bourbon, and high end sipping rums.”
“Mojitos, Mojitos and more Mojitos!”
“Consumers are not making multiple purchases at one time. Many consumers would buy two to three items at one time, now it is just one.”
“My firm's research indicates Americans continue to enjoy premium and super-premium vodkas. But the real short term and mid-term growth will be in premium and super-premium Irish Whisky followed by growth in the Tequila, Rum and Scotch Whisky brands.”
“Alternative packaging like tetra and PET have so far been rejected by the American wine consumer. Given the cost savings in freight for these formats, enthusiasts might need to re-evaluate their love affair with the bottle in cork. Anyone brave enough to offer premium juice in an alternative package might just cash in.”
“Consumers appreciate more than they articulate. Quality products that provide value will continue to sell well. Novelty products will fade.”
WSD BRIEFS:
KOBRAND CORP. HAS SIGNED A MARKETING AND SALES AGREEMENT WITH J. WRAY & NEPHEW, Jamaica’s leading rum producer, effective May 1. The long term agreement includes the entire J. Wray & Nephew portfolio - Appleton Estate range, Appleton Special, Appleton White, J. Wray & Nephew Overproof, and Coruba dark rums.
WAL-MART CEO LEE SCOTT SAID the U.S. retailer is gaining momentum amidst the current cash crunch. "The discretionary dollars that (consumers) have are just simply less," Scott told reporters at the Wall Street Journal. "We are gaining momentum because people need us more than ever."
Until Monday, Megan
“Keeping score of old scores and scars, getting even and one-upping, always make you less than you are.”
-Malcolm Forbes
--------- Sell Day Calendar ----------
Today's Sell Day: 10
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
"Phoebe brought thoughtful, trusted oversight to Brown-Forman's financial functions, and she has helped lead our company during a period of strong financial performance and development over the last seven years," said Brown-Forman Chief Executive Officer Paul Varga. "I know that our shareholders join all of us at Brown-Forman in thanking Phoebe for her excellent service to Brown-Forman and in wishing her well in her new endeavors."
"Those who have worked with Don over the last two decades know him to be a proven leader with a deep analytical mind who has demonstrated that he is ready to take on the important responsibilities of chief financial officer for Brown-Forman," stated Varga.
SECOND ROUND OF V&S BIDDING ENDS SOON
The second round of bids for Vin & Sprit is due in the last week of March, sources familiar with the situation told mergermarket. The remaining four bidders are EQT/Investor, Pernod, Fortune and Bacardi. Swedish PE firm Ratos, Finnish wine and spirits company Altia and Italian spirits group Campari have all expressed their interest in parts of V&S.
According to the report in the Financial Times, investors consider EQT/Investor to be one of the likely parties to make it to the final stages, but some question whether it could afford a full price. The report also said that it could cost as much as $400 million to break Fortune’s US distribution agreement with Absolut, and that potential bidders could set up foundations in order to evade competition rules.
2008 INDUSTRY SNAPSHOT
In our annual Truth Squad survey, we asked our subscribers to give us a better idea of what’s going on in the industry right now by outlining current trends. Our readers had a lot of interesting things to say in addition to some of the more obvious trends: online marketing, trading up, a softening economy and consolidation. Here’s a snapshot of what you had to say:
“The globalization and consolidation of the wine industry into large multinational corps, the effects of climate change on vineyards, and the issues within the US economy and the worldwide ripple effects.
“Softness in brand Australia, even Yellow Tail. Volume outpacing value under $8, with producers like Constellation and Diageo moving their focus ever upwards in price points.”
“Large spirits companies are squandering their resources on new product introductions to the detriment of their core brands. The true innovators are small, one to three brand, narrowly focused companies such as Sidney Frank, Kettle One and Patron.”
“Growth of crisp dry whites and non-traditional varietals like pinot grigio as well as more obscure ones like sangioves and tempranillo.”
“Organic, green, artisan.”
“Extraordinary number of private label and exclusive label wine brands appearing on retailers shelves.”
“Outsourcing fulfillment for suppliers and increasing market opportunities for international brands.”
“Spirits mixed with energy drinks...shots are very big!”
“Big retailers selling respected brands at lower prices are winning. Retailers are looking closely at the number of SKUs they are bringing in. Stringent and absurd DUI laws are negatively impacting the on-premise business in depletions, total check ring and customer traffic.”
“Direct sales are increasing - long tail sales encouraging greater outreach via direct channel.”
“Flavored everything distilled, Americans still love their Kool-aid. Anything different in wine. Finally consumers are trying new regions and varietals.”
“Dessert wines, Malbecs and Spanish seem to be hot. But German Riesling and German-style wine are on a huge upswing in central and northern Wisconsin.”
“Green green and more green also, backlash to high alcohol in wines.”
“On the wine side, everyone's trying to move up, away from the bottom end, either by re-branding or re-pricing or just flat-out getting rid of their cheapest wine lines.”
“Experimentation with brands. As consumers get more educated or more comfortable with any consumable, they tend to stray away from brand loyalty.”
“Bartenders getting away from flavored vodkas. Adding more whiskeys, bourbon, and high end sipping rums.”
“Mojitos, Mojitos and more Mojitos!”
“Consumers are not making multiple purchases at one time. Many consumers would buy two to three items at one time, now it is just one.”
“My firm's research indicates Americans continue to enjoy premium and super-premium vodkas. But the real short term and mid-term growth will be in premium and super-premium Irish Whisky followed by growth in the Tequila, Rum and Scotch Whisky brands.”
“Alternative packaging like tetra and PET have so far been rejected by the American wine consumer. Given the cost savings in freight for these formats, enthusiasts might need to re-evaluate their love affair with the bottle in cork. Anyone brave enough to offer premium juice in an alternative package might just cash in.”
“Consumers appreciate more than they articulate. Quality products that provide value will continue to sell well. Novelty products will fade.”
WSD BRIEFS:
KOBRAND CORP. HAS SIGNED A MARKETING AND SALES AGREEMENT WITH J. WRAY & NEPHEW, Jamaica’s leading rum producer, effective May 1. The long term agreement includes the entire J. Wray & Nephew portfolio - Appleton Estate range, Appleton Special, Appleton White, J. Wray & Nephew Overproof, and Coruba dark rums.
WAL-MART CEO LEE SCOTT SAID the U.S. retailer is gaining momentum amidst the current cash crunch. "The discretionary dollars that (consumers) have are just simply less," Scott told reporters at the Wall Street Journal. "We are gaining momentum because people need us more than ever."
Until Monday, Megan
“Keeping score of old scores and scars, getting even and one-upping, always make you less than you are.”
-Malcolm Forbes
--------- Sell Day Calendar ----------
Today's Sell Day: 10
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
posted at 4:18 PM
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