Remy Retains Momentum in U.S.
Remy Cointreau said the US “retained its momentum” in the 12 months to March 31. The company reported 11.5% organic growth for Cognac, followed by 4.3% growth for liqueurs and spirits and 15.4% growth for Champagne.
The company said it continued to benefit from its position in cocktails in the US and Europe, while Cognac held steady in the U.S. despite 5-10% price increases. Piper-Heidsieck Champagne achieved the strongest growth in its traditional markets, including the US where “demand remained strong.”
Meanwhile, Partner Brands including Russian Standard vodka and Edrington Scotch continued to grow strongly in the American market.
Remy said it has benefited from its strategic plan to sell less-profitable brands in order to focus on premium spirits and Champagnes in recent years. Analysts worried yesterday that Remy’s results would follow in the path of LVMH, but the company did surprisingly well despite the economy.
"It seems that the weakness in third-quarter cognac volumes was indeed a matter of phasing and some inventory reductions by wholesalers in the U.S., and not entirely end-demand driven," noted Goldman Sachs analysts.
“Due to this US shipment phasing, we expect a weaker Q109FY. Remy continues to see premiumization in the US. A key difference in the US (based on Control States data) is that Remy has only 26% of volumes from lower growth VS and Hennessy over 90%,” said UBS senior analyst Melissa Earlam in a note.
BEAM GLOBAL DEFENDS BOURBON AT WORLD WHISKY CONFERENCE
In a statement today, Beam said it hosted the first “Great Whisk(e)y Debate” ever held in Scotland. The debate was hosted for the World Whiskies attendees to discuss the history, heritage, qualities and tasting notes of Bourbon whiskey and Scotch whisky, the company said.
Fred Noe (great grandson of Jim Beam) “vigorously defended” bourbon, while Scotch whisky was championed by Richard Paterson, third generation master blender of the Dalmore Scotch Whisky distillery. The debate was moderated by Jim Kokoris, former president of the Kentucky Bourbon Circle.
Beam Global ceo Tom Flocco told the audience during his keynote speech “that loving one is not cheating on the other. In this industry, you really can serve two masters...Kentucky produces 95% of the world’s bourbon; almost two-thirds of it comes from us.”
The company called bourbon “one of the world’s most loved and misunderstood whiskeys.”
Flocco continued, “We house the world’s finest portfolio of Bourbon and Scotch whisky...This is a win-win for us and for our distributor and retail...We will continue to host Great Whisk(e)y Debates around the world as consumers discover and discuss the finer qualities of all whiskeys.”
FORTUNE CONSIDERING SEVERAL ACQUISITION OPPORTUNITIES
After Fortune passed on an opportunity to acquire Absolut last month, the company is exploring new business opportunities in the spirits segment. CEO Tom Flocco told Just-Drinks that the company is looking at the following categories: vodka, premium and super-premium rum and gin, and Irish whiskey.
When asked if Beam was interested in acquiring Stolichnaya, Flocco said: “Stolichnaya is a good brand, but it is a brand that, based on what I've read, some smart people worked very hard to get out of the dual ownership structure...but if it were to become available, would we look at it? Sure.”
Recall that Pernod Ricard spent almost three years in negotiations with SPI to buy the Stoli brand.
LVMH EXPECTS “SIX MONTH RECESSION”
As we reported yesterday, LVMH’s wine and spirits sales sank -15% in the U.S. during the first quarter after the company raised prices and was hit with de-stocking issues. Management remained confident, nonetheless, that figures would rebound later in the fiscal year. When asked about the economic slowdown, ceo Bernard Arnault said he expects the U.S. will experience a six-month recession with growth picking up at the end of the year. He added that LVMH has a policy of taking price increases in the markets hit by a slowdown.
LVMH says it may take advantage of the worsening economy and pick up a liquor or watch brand, Bloomberg reports.
“There might be opportunities in a difficult market for a group like ours to round out our portfolio," especially if smaller, family-owned companies decide to sell, he said.
He declined to specify any companies LVMH may be interested in.
JESS JACKSON PARTNERS WITH NAPA TRUCKERS
Jess Jackson (owner of Kendall-Jackson) has formed a joined-venture with Napa trucking firm Biagi Brothers to control the distribution of his brands and other premium wines in California, reports the Press Democrat. The new company, Vin Lux, is distributing more than 60 domestic and international wines handled by Jackson’s distribution arm, Regal Wine Co. Vin Lux will operate from a warehouse in Napa and another in Southern California, and serves 9,000 on-premise accounts with a fleet of 35 trucks. The company hopes to attract other winery clients by offering a higher level of service, including hybrid delivery trucks and sophisticated wine tracking systems.
Jackson began self-distributing all of his wines in California in 1996 after a high-profile break with Southern Wine and Spirits.
THE WINE GROUP TAKES ON NEW SPANISH WINE
The Wine Group (TWG) has become the exclusive distributor for Spanish wine producer Osborne in the U.S. Two of Osborne brands, Montecillo and Solaz, currently rank among the top five Spanish wine brands in the U.S. market. The rest of its portfolio includes Osborne (Jerez y Oporto), Senorio del Cid (Ribera del Duero y Rueda) and other brands of brandies and spirits.
The transaction was executed by the New York-based Mergers and Acquisitions Advisory group of Rabobank International, a division of Rabobank Nederland.
WSD BRIEFS:
BELVEDERE GROUP has reportedly had discussions with a major vodka distillery in Russia about terms and conditions of a possible combination. If the project moves forward, said the company, it would allow Belvedere to strengthen its position 'very significantly' in the world’s number one vodka market. Reports have speculated that Belvedere is in talks with Kristall.
INERTIA BEVERAGE GROUP announced today that it has opened its REthink Compliance tool for use free of charge to any winery, fulfillment house or compliance company. The service allows wineries to ensure they are in compliance with shipping regulations in fifty states and generates necessary paperwork to ship direct.
NYC MENU LABELLING WILL GO INTO EFFECT April 21 after a federal judge ruled in favor of the city’s health department yesterday. Despite legal challenges by the New York State Restaurant Association, the city will require chains of 15 stores or more to post calorie contents on their menu boards. The regulation will not be enforced until June 4. The NYSRA plans to appeal the decision.
SNOOP DOG AND MYSTIQUE BRANDS has signed a long-term brand partnership to promote Landy Cognac in North America. This marks the latest in a long line of spirit brand endorsements by hip-hop artists.
CORNELL UNIVERSITY PLANS TO LAUNCH A TEACHING WINERY at the Cornell Orchards this fall for students studying enology and viticulture.
Until tomorrow, Megan
“All the world's a stage and most of us are desperately unrehearsed.”
Sean O'Casey
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
The company said it continued to benefit from its position in cocktails in the US and Europe, while Cognac held steady in the U.S. despite 5-10% price increases. Piper-Heidsieck Champagne achieved the strongest growth in its traditional markets, including the US where “demand remained strong.”
Meanwhile, Partner Brands including Russian Standard vodka and Edrington Scotch continued to grow strongly in the American market.
Remy said it has benefited from its strategic plan to sell less-profitable brands in order to focus on premium spirits and Champagnes in recent years. Analysts worried yesterday that Remy’s results would follow in the path of LVMH, but the company did surprisingly well despite the economy.
"It seems that the weakness in third-quarter cognac volumes was indeed a matter of phasing and some inventory reductions by wholesalers in the U.S., and not entirely end-demand driven," noted Goldman Sachs analysts.
“Due to this US shipment phasing, we expect a weaker Q109FY. Remy continues to see premiumization in the US. A key difference in the US (based on Control States data) is that Remy has only 26% of volumes from lower growth VS and Hennessy over 90%,” said UBS senior analyst Melissa Earlam in a note.
BEAM GLOBAL DEFENDS BOURBON AT WORLD WHISKY CONFERENCE
In a statement today, Beam said it hosted the first “Great Whisk(e)y Debate” ever held in Scotland. The debate was hosted for the World Whiskies attendees to discuss the history, heritage, qualities and tasting notes of Bourbon whiskey and Scotch whisky, the company said.
Fred Noe (great grandson of Jim Beam) “vigorously defended” bourbon, while Scotch whisky was championed by Richard Paterson, third generation master blender of the Dalmore Scotch Whisky distillery. The debate was moderated by Jim Kokoris, former president of the Kentucky Bourbon Circle.
Beam Global ceo Tom Flocco told the audience during his keynote speech “that loving one is not cheating on the other. In this industry, you really can serve two masters...Kentucky produces 95% of the world’s bourbon; almost two-thirds of it comes from us.”
The company called bourbon “one of the world’s most loved and misunderstood whiskeys.”
Flocco continued, “We house the world’s finest portfolio of Bourbon and Scotch whisky...This is a win-win for us and for our distributor and retail...We will continue to host Great Whisk(e)y Debates around the world as consumers discover and discuss the finer qualities of all whiskeys.”
FORTUNE CONSIDERING SEVERAL ACQUISITION OPPORTUNITIES
After Fortune passed on an opportunity to acquire Absolut last month, the company is exploring new business opportunities in the spirits segment. CEO Tom Flocco told Just-Drinks that the company is looking at the following categories: vodka, premium and super-premium rum and gin, and Irish whiskey.
When asked if Beam was interested in acquiring Stolichnaya, Flocco said: “Stolichnaya is a good brand, but it is a brand that, based on what I've read, some smart people worked very hard to get out of the dual ownership structure...but if it were to become available, would we look at it? Sure.”
Recall that Pernod Ricard spent almost three years in negotiations with SPI to buy the Stoli brand.
LVMH EXPECTS “SIX MONTH RECESSION”
As we reported yesterday, LVMH’s wine and spirits sales sank -15% in the U.S. during the first quarter after the company raised prices and was hit with de-stocking issues. Management remained confident, nonetheless, that figures would rebound later in the fiscal year. When asked about the economic slowdown, ceo Bernard Arnault said he expects the U.S. will experience a six-month recession with growth picking up at the end of the year. He added that LVMH has a policy of taking price increases in the markets hit by a slowdown.
LVMH says it may take advantage of the worsening economy and pick up a liquor or watch brand, Bloomberg reports.
“There might be opportunities in a difficult market for a group like ours to round out our portfolio," especially if smaller, family-owned companies decide to sell, he said.
He declined to specify any companies LVMH may be interested in.
JESS JACKSON PARTNERS WITH NAPA TRUCKERS
Jess Jackson (owner of Kendall-Jackson) has formed a joined-venture with Napa trucking firm Biagi Brothers to control the distribution of his brands and other premium wines in California, reports the Press Democrat. The new company, Vin Lux, is distributing more than 60 domestic and international wines handled by Jackson’s distribution arm, Regal Wine Co. Vin Lux will operate from a warehouse in Napa and another in Southern California, and serves 9,000 on-premise accounts with a fleet of 35 trucks. The company hopes to attract other winery clients by offering a higher level of service, including hybrid delivery trucks and sophisticated wine tracking systems.
Jackson began self-distributing all of his wines in California in 1996 after a high-profile break with Southern Wine and Spirits.
THE WINE GROUP TAKES ON NEW SPANISH WINE
The Wine Group (TWG) has become the exclusive distributor for Spanish wine producer Osborne in the U.S. Two of Osborne brands, Montecillo and Solaz, currently rank among the top five Spanish wine brands in the U.S. market. The rest of its portfolio includes Osborne (Jerez y Oporto), Senorio del Cid (Ribera del Duero y Rueda) and other brands of brandies and spirits.
The transaction was executed by the New York-based Mergers and Acquisitions Advisory group of Rabobank International, a division of Rabobank Nederland.
WSD BRIEFS:
BELVEDERE GROUP has reportedly had discussions with a major vodka distillery in Russia about terms and conditions of a possible combination. If the project moves forward, said the company, it would allow Belvedere to strengthen its position 'very significantly' in the world’s number one vodka market. Reports have speculated that Belvedere is in talks with Kristall.
INERTIA BEVERAGE GROUP announced today that it has opened its REthink Compliance tool for use free of charge to any winery, fulfillment house or compliance company. The service allows wineries to ensure they are in compliance with shipping regulations in fifty states and generates necessary paperwork to ship direct.
NYC MENU LABELLING WILL GO INTO EFFECT April 21 after a federal judge ruled in favor of the city’s health department yesterday. Despite legal challenges by the New York State Restaurant Association, the city will require chains of 15 stores or more to post calorie contents on their menu boards. The regulation will not be enforced until June 4. The NYSRA plans to appeal the decision.
SNOOP DOG AND MYSTIQUE BRANDS has signed a long-term brand partnership to promote Landy Cognac in North America. This marks the latest in a long line of spirit brand endorsements by hip-hop artists.
CORNELL UNIVERSITY PLANS TO LAUNCH A TEACHING WINERY at the Cornell Orchards this fall for students studying enology and viticulture.
Until tomorrow, Megan
“All the world's a stage and most of us are desperately unrehearsed.”
Sean O'Casey
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 11:27 AM
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