Campari Ready to Strike
Campari Group reported solid group sales for the year, with overall organic spirits growing 4.4% in the fourth quarter. The Campari brand rose 8% in the fourth quarter along with Aperol and the Brazilian brands, while Skyy slowed to 5% sales growth. Campari’s fourth quarter US organic sales were mainly flat, but execs were confident that U.S. spirits volume will rise 2-3% in volume and 4-5% in sales in 2008.
In fiscal 2007, the spirits segment recorded organic growth of 6.3%. Campari brand posted growth of 3.5% at constant exchange rates, thanks to a positive performance in particular in Brazil and Italy. Regarding the other main brands, the spirits segment benefited from strong performances from Aperol (21.8%), Cynar (11.9%), the Brazilian brands (9.4%), and Ouzo 12 (2.7%). Glen Grant and Old Smuggler posted growth of 22.2%, while 1800 and Gran Centenario tequilas posted a growth of 3.1% at constant exchange rates in the U.S.
The wines segment registered growth of 12.2%, driven by Cinzano vermouth (up 18.7%) and Cinzano sparkling wines (12.7%). The wines segment also benefited from positive performances from Sella & Mosca (6.8%), as well as Mondoro, Riccadonna and Cantina Serafino.
Looking at results by region, in 2007 the US market registered organic growth of 4.9%, a negative exchange rate effect of 8.7% and external growth of 1.7%.
SKYY HEADED FOR VOLATILE YEAR. SKYY sales rose by 11.1% in fiscal 2007, thanks to a positive performance on both the US and international markets. Kunze-Concewitz predicts “high single digit, low double digit” growth for Skyy in 2008.
The first quarter this year will be hit by destocking of Skyy products, in addition to the already hyped launch of Skyy Infusion and new packaging, he said.
“Q1 will see some US volatility due to the re-launch of SKYY’s packaging and a new Infusion flavour line. While we had hoped that quarterly shipment volatility was over, the flavour upside for Skyy in the US is significant (current flavour penetration is c9% of total brand volumes compared to vodka peers at 24-46%),” said Melissa Earlam of UBS.
CAMPARI LOOKING TO GROW. Campari wants to expand in emerging markets such as Latin America, east Europe and Asia either organically or through acquisitions. CEO Bob Kunze-Concewitz also reiterated his interest in acquiring brands that are sold off by V&S and the company that acquires it.
“External growth is important. We look continually at possible acquisitions. We have candidates in the pipeline,” he said during the conference call yesterday.
He noted that Fortune and Pernod will have to take on a lot of debt for a V&S acquisition, which means they would have to sell off brands. Apparently, Campari will be waiting.
He also cited reports yesterday that the Swedish government will choose the preferred buyer on March 27, leaving it to then deal with antitrust clearance.
BINDING OFFERS FOR V&S DUE MARCH 27
As WSD reported last week, the second round of bids for Vin & Sprit is due the last week of this month, specifically March 27. The bids in this round are to be binding, and reportedly Fortune Brands remains the favorite. The government has also said it would like to see the deal closed in the first half of the year.
RETAILERS AND WHOLESALERS APPEAL TEXAS RULING
The SWRA has appealed the recent ruling by Texas District Judge Stanley Fitzwater that was generally considered a mixed victory for out-of-state retailers. Fitzwater ruled that Granholm does apply to retailers as well as wineries, but said that Texas could require out-of-state retailers to purchase its wine from Texas wholesalers. The appeal will take place in the U.S. Court of Appeals for the 5th Circuit located in New Orleans, Lousiana. As yet, no schedule for briefs or oral arguments has been set, according to the SWRA.
In addition, Texas Wholesalers Glazers and Republic have also cross-appealed the decision. They disagree with the Judge’s ruling that Granholm applies to retailers and is therefore illegal to bar out-of-state retailers from shipping directly to consumers. The wholesalers appear also set to argue that even if the Judge is correct that Texas cannot prohibit out-of-state retailers from shipping to Texans, then the proper remedy by the Judge should have to be prohibit all shipping by Texas retailers, says the SWRA.
There are currently two other cases on the issue of retailer-to-consumer shipping working their way through courts. In Michigan the SWRA awaits a District Court's decision on whether a state may constitutionally bar out-of-state retailers from shipping to consumers while allowing in-state retailers this privilege. In New York a similar case is under appeal.
LEADING DUTCH TASTER INSURES NOSE FOR $8M
File this with the bizarre. Leading European winemaker and taster Ilja Gort has insured his nose for $8 million, Lloyd’s of London said yesterday. He reportedly took out the policy after hearing about a man who lost his sense of smell in a car accident.
The custom-made policy covers Gort for the loss of either his nose or his sense of smell and has some unusual conditions. The insurance contract includes a list of what Gort considers "old-fashioned rules" to protect his nose. The Dutchman is not allowed to ride a motorcycle or be a boxer, knife thrower's assistant or a fire-breather, says the AP.
SPITZER’S CALL GIRL GETS 16 MINUTES OF FAME
Ad Age reports that the owner of Georgi vodka, Martin Silver, said he is in talks to put the derriere of former New York Gov. Eliot Spitzer's call girl on the backside of every bus in New York. Star Industries owns the U.S. rights to the brand and in talks to pay Ashley Dupre a low six-figure amount to be this year’s Georgi “butt girl.”
WSD BRIEFS:
TIM MATZ WILL SERVE AS PRESIDENT OF LANGTRY ESTATE & Vineyards, replacing Easton Manson, who remains chairman of the board of directors. Matz joins Langtry after four years as president of Jackson Wine Estates International. He has also served as vp and gm for Beringer Blass Wine Estates and president of Americas of Southcorp Wines.
IDAHO LEGISLATURE PASSED A BILL Monday repealing the Blue Law banning Election Day sales of alcohol, according to the Distilled Spirits Council. HB 348, which passed the House in February, now moves to Governor Butch Otter's desk for final signature.
TENNESSEE GROCERS recommend that the state legislature pass a bill that would allow liquor stores to sell additional items normally associated with wine and liquor, such as ice, soft drinks, mixers and glasses. The amendments would also allow retail food stores to sell wine.
Until tomorrow, Megan
“A sense of humor is part of the art of leadership, of getting along with people, of getting things done.”
Dwight D. Eisenhower
--------- Sell Day Calendar ----------
Today's Sell Day: 13
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
In fiscal 2007, the spirits segment recorded organic growth of 6.3%. Campari brand posted growth of 3.5% at constant exchange rates, thanks to a positive performance in particular in Brazil and Italy. Regarding the other main brands, the spirits segment benefited from strong performances from Aperol (21.8%), Cynar (11.9%), the Brazilian brands (9.4%), and Ouzo 12 (2.7%). Glen Grant and Old Smuggler posted growth of 22.2%, while 1800 and Gran Centenario tequilas posted a growth of 3.1% at constant exchange rates in the U.S.
The wines segment registered growth of 12.2%, driven by Cinzano vermouth (up 18.7%) and Cinzano sparkling wines (12.7%). The wines segment also benefited from positive performances from Sella & Mosca (6.8%), as well as Mondoro, Riccadonna and Cantina Serafino.
Looking at results by region, in 2007 the US market registered organic growth of 4.9%, a negative exchange rate effect of 8.7% and external growth of 1.7%.
SKYY HEADED FOR VOLATILE YEAR. SKYY sales rose by 11.1% in fiscal 2007, thanks to a positive performance on both the US and international markets. Kunze-Concewitz predicts “high single digit, low double digit” growth for Skyy in 2008.
The first quarter this year will be hit by destocking of Skyy products, in addition to the already hyped launch of Skyy Infusion and new packaging, he said.
“Q1 will see some US volatility due to the re-launch of SKYY’s packaging and a new Infusion flavour line. While we had hoped that quarterly shipment volatility was over, the flavour upside for Skyy in the US is significant (current flavour penetration is c9% of total brand volumes compared to vodka peers at 24-46%),” said Melissa Earlam of UBS.
CAMPARI LOOKING TO GROW. Campari wants to expand in emerging markets such as Latin America, east Europe and Asia either organically or through acquisitions. CEO Bob Kunze-Concewitz also reiterated his interest in acquiring brands that are sold off by V&S and the company that acquires it.
“External growth is important. We look continually at possible acquisitions. We have candidates in the pipeline,” he said during the conference call yesterday.
He noted that Fortune and Pernod will have to take on a lot of debt for a V&S acquisition, which means they would have to sell off brands. Apparently, Campari will be waiting.
He also cited reports yesterday that the Swedish government will choose the preferred buyer on March 27, leaving it to then deal with antitrust clearance.
BINDING OFFERS FOR V&S DUE MARCH 27
As WSD reported last week, the second round of bids for Vin & Sprit is due the last week of this month, specifically March 27. The bids in this round are to be binding, and reportedly Fortune Brands remains the favorite. The government has also said it would like to see the deal closed in the first half of the year.
RETAILERS AND WHOLESALERS APPEAL TEXAS RULING
The SWRA has appealed the recent ruling by Texas District Judge Stanley Fitzwater that was generally considered a mixed victory for out-of-state retailers. Fitzwater ruled that Granholm does apply to retailers as well as wineries, but said that Texas could require out-of-state retailers to purchase its wine from Texas wholesalers. The appeal will take place in the U.S. Court of Appeals for the 5th Circuit located in New Orleans, Lousiana. As yet, no schedule for briefs or oral arguments has been set, according to the SWRA.
In addition, Texas Wholesalers Glazers and Republic have also cross-appealed the decision. They disagree with the Judge’s ruling that Granholm applies to retailers and is therefore illegal to bar out-of-state retailers from shipping directly to consumers. The wholesalers appear also set to argue that even if the Judge is correct that Texas cannot prohibit out-of-state retailers from shipping to Texans, then the proper remedy by the Judge should have to be prohibit all shipping by Texas retailers, says the SWRA.
There are currently two other cases on the issue of retailer-to-consumer shipping working their way through courts. In Michigan the SWRA awaits a District Court's decision on whether a state may constitutionally bar out-of-state retailers from shipping to consumers while allowing in-state retailers this privilege. In New York a similar case is under appeal.
LEADING DUTCH TASTER INSURES NOSE FOR $8M
File this with the bizarre. Leading European winemaker and taster Ilja Gort has insured his nose for $8 million, Lloyd’s of London said yesterday. He reportedly took out the policy after hearing about a man who lost his sense of smell in a car accident.
The custom-made policy covers Gort for the loss of either his nose or his sense of smell and has some unusual conditions. The insurance contract includes a list of what Gort considers "old-fashioned rules" to protect his nose. The Dutchman is not allowed to ride a motorcycle or be a boxer, knife thrower's assistant or a fire-breather, says the AP.
SPITZER’S CALL GIRL GETS 16 MINUTES OF FAME
Ad Age reports that the owner of Georgi vodka, Martin Silver, said he is in talks to put the derriere of former New York Gov. Eliot Spitzer's call girl on the backside of every bus in New York. Star Industries owns the U.S. rights to the brand and in talks to pay Ashley Dupre a low six-figure amount to be this year’s Georgi “butt girl.”
WSD BRIEFS:
TIM MATZ WILL SERVE AS PRESIDENT OF LANGTRY ESTATE & Vineyards, replacing Easton Manson, who remains chairman of the board of directors. Matz joins Langtry after four years as president of Jackson Wine Estates International. He has also served as vp and gm for Beringer Blass Wine Estates and president of Americas of Southcorp Wines.
IDAHO LEGISLATURE PASSED A BILL Monday repealing the Blue Law banning Election Day sales of alcohol, according to the Distilled Spirits Council. HB 348, which passed the House in February, now moves to Governor Butch Otter's desk for final signature.
TENNESSEE GROCERS recommend that the state legislature pass a bill that would allow liquor stores to sell additional items normally associated with wine and liquor, such as ice, soft drinks, mixers and glasses. The amendments would also allow retail food stores to sell wine.
Until tomorrow, Megan
“A sense of humor is part of the art of leadership, of getting along with people, of getting things done.”
Dwight D. Eisenhower
--------- Sell Day Calendar ----------
Today's Sell Day: 13
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 11:48 AM
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