V&S Acquisition in Tact
Fortune’s preliminary injunction again V&S will not delay the acquisition between V&S and Pernod, despite earlier reports that claimed otherwise.
"We don't anticipate this having any effect or delay on closing" of the V&S transaction, a Pernod spokeswoman told Dow Jones Newswires.
"The stake in Beam are not part of our transaction. The dispute has nothing to do with Pernod Ricard," she continued.
As we reported earlier this week, Fortune has taken court action to prevent V&S from selling its 10% stake in Beam Global to the Swedish government. Fortune, which owns the remaining 90% stake in Beam, wants to repurchase V&S’s minority stake, but says it has been unable to agree on a fair price.
V&S spokesman Jacob Broberg said Fortune has offered $350 million for the 10% stake while V&S wants $1.1 billion, which would include "a few hundreds (of millions) dollars " in debt, according to Reuters.
"We paid $375 million when we bought it and we have (invested) $153 million in it. And the firm is significantly bigger now," Broberg said.
Swedish Financial Markets Minister Mats Odell hinted that the lawsuit is more like a price negotiation and is not expected to delay the merger.
"We have yet not landed on a price. I would like to point out the dynamics that occur in a price negotiation when there is only one buyer," he said at a press conference yesterday.
TRUTH IN LABELING WARS
Politico reporter Samuel Loewenberg wrote an interesting article on the battle between spirits and beer over “truth in labeling” laws. The TTB is considering whether nutritional labels on alcohol beverages should include serving sizes – something the spirits industry is in favor of and brewers are against.
The beer industry argues that liquor is consumed in larger amounts then the official 1.5 ounce serving size. Instead, the beer industry wants alcohol content to be displayed as a percentage by volume.
"The products are not the same in the way they are actually consumed," said Art DeCelle, chief counsel for the Beer Institute. He also said it’s not realistic to think that consumers will only drink a standard shot.
The spirits industry says brewers are only interested in protecting their market share. They believe issuing a standard serving size would help “normalize spirits” by showing consumers that one beer and a shot of liquor have the same alcoholic effect.
The beer companies “have spent 50 years marketing beer as America’s beverage of moderation. They think it gives them a public perception advantage over ... distilled alcohol,” said Mark Gorman, a senior vp for the Distilled Spirits Council of the United States.
Mark also told Politico that if the TTB agrees to the alcohol equivalency labeling, it could help distillers fight higher taxes.
The TTB is still considering both sides’ arguments.
To read the article in entirety, click here.
CONGRESS PASSES FOOD BILL, OVERRIDES VETO
Congress today sent President Bush a bill boosting farm subsidies and money for food stamps to help the poor deal with rising grocery prices, the AP reports. Bush had threatened to veto the $290 billion bill, but both chambers of Congress passed the measure with well over two-thirds majority needed to override a veto.
About $40 billion is for farm subsidies, while almost $30 billion would go to farmers to idle their land and to other environmental programs. Most notably for winegrape growers, the bill will increase subsidies for certain crops, including fruits and vegetables excluded from previous farm bills.
To read more about it, click here.
WSD BRIEFS:
SKYY SPIRITS IS LAUNCHING CUTTY SARK BLENDED MALT SCOTCH in select U.S. markets. It’s currently being tested in Colorado and Georgia, with plans to expand later this year. Cutty Sark Blended Scotch retails for $29.99 for a 750ml bottle.
PAUL WALSH, Diageo ceo, has reportedly cited interest in purchasing a South Korean distiller of soju, the country’s traditional spirits, according to local reports. Diageo’s Korean unit will make the decision on which company to purchase, Walsh was quoted as saying.
Until tomorrow, Megan
“That's the secret to life... replace one worry with another....”
Charles M. Schulz
--------- Sell Day Calendar ----------
Today's Sell Day: 11
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
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.
"We don't anticipate this having any effect or delay on closing" of the V&S transaction, a Pernod spokeswoman told Dow Jones Newswires.
"The stake in Beam are not part of our transaction. The dispute has nothing to do with Pernod Ricard," she continued.
As we reported earlier this week, Fortune has taken court action to prevent V&S from selling its 10% stake in Beam Global to the Swedish government. Fortune, which owns the remaining 90% stake in Beam, wants to repurchase V&S’s minority stake, but says it has been unable to agree on a fair price.
V&S spokesman Jacob Broberg said Fortune has offered $350 million for the 10% stake while V&S wants $1.1 billion, which would include "a few hundreds (of millions) dollars " in debt, according to Reuters.
"We paid $375 million when we bought it and we have (invested) $153 million in it. And the firm is significantly bigger now," Broberg said.
Swedish Financial Markets Minister Mats Odell hinted that the lawsuit is more like a price negotiation and is not expected to delay the merger.
"We have yet not landed on a price. I would like to point out the dynamics that occur in a price negotiation when there is only one buyer," he said at a press conference yesterday.
TRUTH IN LABELING WARS
Politico reporter Samuel Loewenberg wrote an interesting article on the battle between spirits and beer over “truth in labeling” laws. The TTB is considering whether nutritional labels on alcohol beverages should include serving sizes – something the spirits industry is in favor of and brewers are against.
The beer industry argues that liquor is consumed in larger amounts then the official 1.5 ounce serving size. Instead, the beer industry wants alcohol content to be displayed as a percentage by volume.
"The products are not the same in the way they are actually consumed," said Art DeCelle, chief counsel for the Beer Institute. He also said it’s not realistic to think that consumers will only drink a standard shot.
The spirits industry says brewers are only interested in protecting their market share. They believe issuing a standard serving size would help “normalize spirits” by showing consumers that one beer and a shot of liquor have the same alcoholic effect.
The beer companies “have spent 50 years marketing beer as America’s beverage of moderation. They think it gives them a public perception advantage over ... distilled alcohol,” said Mark Gorman, a senior vp for the Distilled Spirits Council of the United States.
Mark also told Politico that if the TTB agrees to the alcohol equivalency labeling, it could help distillers fight higher taxes.
The TTB is still considering both sides’ arguments.
To read the article in entirety, click here.
CONGRESS PASSES FOOD BILL, OVERRIDES VETO
Congress today sent President Bush a bill boosting farm subsidies and money for food stamps to help the poor deal with rising grocery prices, the AP reports. Bush had threatened to veto the $290 billion bill, but both chambers of Congress passed the measure with well over two-thirds majority needed to override a veto.
About $40 billion is for farm subsidies, while almost $30 billion would go to farmers to idle their land and to other environmental programs. Most notably for winegrape growers, the bill will increase subsidies for certain crops, including fruits and vegetables excluded from previous farm bills.
To read more about it, click here.
WSD BRIEFS:
SKYY SPIRITS IS LAUNCHING CUTTY SARK BLENDED MALT SCOTCH in select U.S. markets. It’s currently being tested in Colorado and Georgia, with plans to expand later this year. Cutty Sark Blended Scotch retails for $29.99 for a 750ml bottle.
PAUL WALSH, Diageo ceo, has reportedly cited interest in purchasing a South Korean distiller of soju, the country’s traditional spirits, according to local reports. Diageo’s Korean unit will make the decision on which company to purchase, Walsh was quoted as saying.
Until tomorrow, Megan
“That's the secret to life... replace one worry with another....”
Charles M. Schulz
--------- Sell Day Calendar ----------
Today's Sell Day: 11
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
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 12:45 PM
<< Home