FTC Delays Ketel One Approval
Diageo said today that its $900 million purchase of a 50% stake in Ketel One will be delayed after the FTC requested more information on the deal, reports the Financial Times. The deal was expected to be closed on March 31 if approved, but now is unlikely to close before the end of June.
A second request is time-consuming and expensive, said the FT, and usually requires the company to provide detailed information on regional sales, customers, market share, production processes and pricing.
Diageo’s Smirnoff has a US market share of almost 20%, according to Impact. Globally, Diageo has 26% share of the vodka market with Smirnoff, Ciroc, Gordon's and Popov. However, Ketel One is pricier then Smirnoff and a much smaller brand. The bulk of its sales are in the US where it ranked 21st among spirits brands in terms of sales volumes last year, reports the FT. Its 1.9 million case sales rose 6% in 2007 compared to the prior year.
DIAGEO’S STOCK on Wednesday (March 26) shot up 1.57% at 3:57pm ET based on analyst suspicion that Diageo might be hooking up with someone in the U.S. No word yet out of Diageo.
FORTUNE AND NORDIC PRIVATE EQUITY SUBMIT JOINT BID
Fortune is teaming up with Nordic Capital, a private equity firm, to bid for Vin & Sprit, says the AP based on reports in Swedish daily newspaper Svenska Dagbladet. Fortune and Nordic reportedly plan to split V&S into two parts, citing unnamed sources. Nordic would get V&S’ smaller Nordic distribution and production operations, V&S Distillers and V&S Wines, while Fortune Brands gets Absolut. No word from Fortune or Nordic Equity.
V&S BINDING OFFERS DUE TOMORROW
Recall that bidders for V&S must submit binding offers by tomorrow (March 27). The four bidders still left in the running are Pernod Ricard, Bacardi, Fortune Brands, and Swedish private equity group EQT with investment firm Investor. Analysts expect V&S to get $6 billion to $7 billion.
JOHN DAVIES CONTESTS MOTHER’S WILL
The Davie’s family rivalry of Schramsberg Vineyards was not laid to rest when Jamie Davies died in February. John Davies, one of Jamie’s three sons, plans to contest her will, which leaves him with no share of the winery and family fortune, according to Decanter. He was disinherited last year.
John Davies claims his mother, who suffered from Parkinson’s disease, was mentally incompetent and improperly influenced by his brother, Hugh Davies, the current president and ceo. As a result, he also intents to file suit against Hugh.
ROSE’S POPULARITY SURGES ONWARDS
Rose sales priced $8 and above grew 53.2% by value and 49% by volume in the 52 weeks to Feb. 9, reports the Nielsen Company. Rose dollar sales grew almost 8 times faster then the overall table wine market, while volume surged 17 times faster. Miami saw the most growth (89.4%) during the period, followed by Seattle (86.6%), New York (75.2%) and San Francisco (39.4%). Rose, it seems, is here to stay.
BACARDI LAUNCHES MOJITO COCKTAIL
Bacardi announced this week it has launched Bacardi Classic Cocktail Mojito, a ready-to-serve cocktail made with Bacardi Superior Rum, natural lime and mint flavors. The 15% abv (30 proof) ready-to-drink cocktail has a suggested retail price ranging from $19.99 and up for a 1.75-liter, soon to be followed by a 750-ml size.
TTB ESTABLISHES AND EXPANDS AVAs
The TTB has expanded the Alexander Valley AVA area in California by 1,300 acres along its northwestern boundary line. In addition, it has expanded the San Francisco Bay viticultural area by adding 88 square miles in northern Solano County, CA. These final rules become effective April 10, 2008.
The TTB has also agreed to establish the Lehigh Valley viticultural area. It will span 1,888 square miles in southeastern Pennsylvania in portions of Lehigh, Northampton, Berks, Schuylkill, Carbon, and Monroe Counties.
7-ELEVEN GOES UPSCALE
7-Eleven is reportedly going to test a new gourmet product line of fresh foods and beverages in its stores. Some of the items include freshly made sandwiches, chicken wings and a Slurpuccino, which will become available beginning late spring and early fall. If 7-Eleven’s new image pans out, perhaps we’ll start seeing more upper scale wines and spirits at the c-store chain.
BELVEDERE OFFERS FIRST ON-PREMISE GIFT CARD
Debuting this week, Belvedere is the first spirits brand to offer a branded gift card for the on-premise. In its "Buy Your Friend A Belvedere" (BYFAB), consumers can purchase a gift card at the BuyYourFriendABelvedere.com website. Recipients can redeem the gift card for any Belvedere drink at a bar or restaurant that is part of the BYFAB network.
WSD BRIEFS:
THE RIVALRY BETWEEN NAPA AND SONOMA was highlighted in an article in Reuters yesterday (March 25). As Michaela Rodeno, head of Napa Valley's St. Supery put it: “This rivalry has been going on for ages. It's just so Hertz and Avis... We make better Cabernets and they make fine Pinot Noirs.” It’s certainly an interesting read.
WISCONSIN GOV. SIGNED SB 485 last week, which replaces the state’s current reciprocal law on October 1, 2008. The new law will allow wineries to purchase a permit for $100 and ship up to 12 cases of wine per individual per year, among other provisions. All US wineries will be eligible for the new Wisconsin permit.
MAINE PASSED LEGISLATION yesterday that requires repeat drunk drivers to install ignition interlock devices on their vehicles. The bill now moves to the Governor's desk for final signature. Discus supports the measure.
THE TENNESSEE GROCERY BILL that would allow grocery stores to sell wine is unlikely to pass, according to local reports.
Until tomorrow, Megan
“The greatest mistake you can make in life is to be continually fearing you will make one.”
Elbert Hubbard
--------- Sell Day Calendar ----------
Today's Sell Day: 18
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
A second request is time-consuming and expensive, said the FT, and usually requires the company to provide detailed information on regional sales, customers, market share, production processes and pricing.
Diageo’s Smirnoff has a US market share of almost 20%, according to Impact. Globally, Diageo has 26% share of the vodka market with Smirnoff, Ciroc, Gordon's and Popov. However, Ketel One is pricier then Smirnoff and a much smaller brand. The bulk of its sales are in the US where it ranked 21st among spirits brands in terms of sales volumes last year, reports the FT. Its 1.9 million case sales rose 6% in 2007 compared to the prior year.
DIAGEO’S STOCK on Wednesday (March 26) shot up 1.57% at 3:57pm ET based on analyst suspicion that Diageo might be hooking up with someone in the U.S. No word yet out of Diageo.
FORTUNE AND NORDIC PRIVATE EQUITY SUBMIT JOINT BID
Fortune is teaming up with Nordic Capital, a private equity firm, to bid for Vin & Sprit, says the AP based on reports in Swedish daily newspaper Svenska Dagbladet. Fortune and Nordic reportedly plan to split V&S into two parts, citing unnamed sources. Nordic would get V&S’ smaller Nordic distribution and production operations, V&S Distillers and V&S Wines, while Fortune Brands gets Absolut. No word from Fortune or Nordic Equity.
V&S BINDING OFFERS DUE TOMORROW
Recall that bidders for V&S must submit binding offers by tomorrow (March 27). The four bidders still left in the running are Pernod Ricard, Bacardi, Fortune Brands, and Swedish private equity group EQT with investment firm Investor. Analysts expect V&S to get $6 billion to $7 billion.
JOHN DAVIES CONTESTS MOTHER’S WILL
The Davie’s family rivalry of Schramsberg Vineyards was not laid to rest when Jamie Davies died in February. John Davies, one of Jamie’s three sons, plans to contest her will, which leaves him with no share of the winery and family fortune, according to Decanter. He was disinherited last year.
John Davies claims his mother, who suffered from Parkinson’s disease, was mentally incompetent and improperly influenced by his brother, Hugh Davies, the current president and ceo. As a result, he also intents to file suit against Hugh.
ROSE’S POPULARITY SURGES ONWARDS
Rose sales priced $8 and above grew 53.2% by value and 49% by volume in the 52 weeks to Feb. 9, reports the Nielsen Company. Rose dollar sales grew almost 8 times faster then the overall table wine market, while volume surged 17 times faster. Miami saw the most growth (89.4%) during the period, followed by Seattle (86.6%), New York (75.2%) and San Francisco (39.4%). Rose, it seems, is here to stay.
BACARDI LAUNCHES MOJITO COCKTAIL
Bacardi announced this week it has launched Bacardi Classic Cocktail Mojito, a ready-to-serve cocktail made with Bacardi Superior Rum, natural lime and mint flavors. The 15% abv (30 proof) ready-to-drink cocktail has a suggested retail price ranging from $19.99 and up for a 1.75-liter, soon to be followed by a 750-ml size.
TTB ESTABLISHES AND EXPANDS AVAs
The TTB has expanded the Alexander Valley AVA area in California by 1,300 acres along its northwestern boundary line. In addition, it has expanded the San Francisco Bay viticultural area by adding 88 square miles in northern Solano County, CA. These final rules become effective April 10, 2008.
The TTB has also agreed to establish the Lehigh Valley viticultural area. It will span 1,888 square miles in southeastern Pennsylvania in portions of Lehigh, Northampton, Berks, Schuylkill, Carbon, and Monroe Counties.
7-ELEVEN GOES UPSCALE
7-Eleven is reportedly going to test a new gourmet product line of fresh foods and beverages in its stores. Some of the items include freshly made sandwiches, chicken wings and a Slurpuccino, which will become available beginning late spring and early fall. If 7-Eleven’s new image pans out, perhaps we’ll start seeing more upper scale wines and spirits at the c-store chain.
BELVEDERE OFFERS FIRST ON-PREMISE GIFT CARD
Debuting this week, Belvedere is the first spirits brand to offer a branded gift card for the on-premise. In its "Buy Your Friend A Belvedere" (BYFAB), consumers can purchase a gift card at the BuyYourFriendABelvedere.com website. Recipients can redeem the gift card for any Belvedere drink at a bar or restaurant that is part of the BYFAB network.
WSD BRIEFS:
THE RIVALRY BETWEEN NAPA AND SONOMA was highlighted in an article in Reuters yesterday (March 25). As Michaela Rodeno, head of Napa Valley's St. Supery put it: “This rivalry has been going on for ages. It's just so Hertz and Avis... We make better Cabernets and they make fine Pinot Noirs.” It’s certainly an interesting read.
WISCONSIN GOV. SIGNED SB 485 last week, which replaces the state’s current reciprocal law on October 1, 2008. The new law will allow wineries to purchase a permit for $100 and ship up to 12 cases of wine per individual per year, among other provisions. All US wineries will be eligible for the new Wisconsin permit.
MAINE PASSED LEGISLATION yesterday that requires repeat drunk drivers to install ignition interlock devices on their vehicles. The bill now moves to the Governor's desk for final signature. Discus supports the measure.
THE TENNESSEE GROCERY BILL that would allow grocery stores to sell wine is unlikely to pass, according to local reports.
Until tomorrow, Megan
“The greatest mistake you can make in life is to be continually fearing you will make one.”
Elbert Hubbard
--------- Sell Day Calendar ----------
Today's Sell Day: 18
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 1:43 PM
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