WHO Passes Alcohol Abuse Resolution
The World Health Organization (WHO)’s assembly has been meeting this week in Geneva to discuss, primarily, alcohol abuse. The Health Assembly is the annual meeting of the WHO's 193 Member States and it is the supreme decision-making body of WHO. It sets the policy for the Organization and approves the budget.
The main challenge of this year’s meeting is to curb alcohol problems in developing countries, which includes alcohol abuse and tainted alcohol made on the cheap, while managing to avoid strangling the healthy consumption of branded beer, wine, and spirits in developed countries. However, some people in the industry fear the WHO is looking to crack down on alcohol like it did with tobacco three years ago. We have some time though: the draft strategy will not likely be presented to the WHA for two years.
The beer, wine and spirits companies created a coalition three years ago called the Global Alcohol Producers Group (GAP) to protect the industry's interests. Mainly, the coalition wants to ensure that the WHO's policies don't interfere with the legitimate alcohol trade in developed countries, nor attack our alcohol infrastructure or regulation (three-tier system), or impose limits on advertising.
In particular, the GAP Group opposes high taxes and restrictions on alcohol availability, calling them “quick-fix solutions.” GAP believes taxes and restricted trade “are ineffective in addressing and assisting the minority who misuse alcohol” and may encourage black markets and illicit products.
Instead, GAP promotes initiatives and alcohol education to curb drunk driving, illegal underage and excessive drinking.
RESOLUTION PASSED. The World Health Assembly this week passed a resolution entitled “strategies to reduce the harmful use of alcohol.” The Global Alcohol Producers Group believes the resolution is “balanced and constructive, as it acknowledges the importance of the different national, religious and cultural contexts.” It also proposes a global strategy consisting of a set of proposed measures that governments will tailor to their culture and needs.
DIFFERENTIATING VODKA
Vodka is vodka is vodka? Business Week featured an interesting article on vodka that begs the question: what, exactly, distinguishes one vodka brand from the next?
“With spirits, especially vodka (because there is so little to distinguish one product from another), the design of the bottle and label is crucially important, along with the country of origin and ‘brand story.’ Each vodka I tasted had its own brand story that helps deliver the product as much as a lemon wedge or olive.”
In the article, journalist David Kiley conducts a blind taste test with avid vodka drinkers who generally stick to a certain brand (namely Ketel One, Grey Goose or Absolut). In the test, no one successfully picked their brand.
“The other conclusion I drew was that when it comes to mixing vodka with fruit juice, or unpurified ice, you might as well as save your money and keep a bottle of Popov around.”
Based on this article, we notice a parallel between vodka and domestic light beer. Domestic light beer brands (Miller Lite, Bud Light and Coors Light) so closely aligned themselves with one another in the past through advertising that customers often had a hard time differentiating between brands. Today, those beer companies are working to differentiate themselves from the competition, and are doing a pretty good job at it. Vodka brands, particularly premium and up, need to come up with their own very different marketing strategy and image to avoid falling in a “sameness” trap. Sounds easy on paper, huh?
INBEV PREPARING BID FOR A-B
The Financial Times Alphaville column is reporting that InBev is preparing a $46 billion bid for Anheuser-Busch. Says the FT:
The deal is being billed as a “transformational” move by those executives and bankers involved, and is likely to herald the long-awaited end-game in global drinks industry consolidation. InBev’s aim is to create the fifth largest consumer products group in the world.
“A direct approach to approach to Anheuser chief executive August Busch IV is being planned, although expecting a cool reception, the InBev team are preparing to send a follow up letter to the American group’s entire board, mapping out terms that are expected to be pitched at $65 a share. If Anheuser refuse to commence friendly talks, InBev is considering a public appeal direct to the target’s shareholders.
“On Friday, sources indicated that while extensive work had been carried out on the transaction, InBev was 'not about to push the button.'”
(...)
“The matter was discussed at length at an InBev board meeting on April 28 and then again at a fresh meeting held this Thursday.
Antonio Weiss at Lazards in Paris is the prime corporate financier advising the InBev board on the matter. On the financing side, direct negotiations are believed to have been held between Felipe Dutra, InBev’s financial officer, and Jamie Dimon at JPMorgan, while former IMF head Rodrigo de Rato has led discussions on behalf of InBev with Emilio Botin at Santander.”
A-B's stock has shot up today, and recall that BUD has had heavy options trading and the stock price has rallied over the past few weeks. However, this rumor has been around before.
Developing......
(Written by Harry Schuhmacher, editor of sister publication Beer Business Daily)
WSWA HIRES ROBERT WIGGANS FOR MEMBER OUTREACH
The WSWA on Monday welcomed association veteran Robert Wiggans to the newly created position of Membership Director. Wiggans assumes primary responsibility for servicing WSWA members’ needs, will act as their primary point of contact for general inquiries to the organization, and will oversee projects related to recruitment and retention.
WSD BRIEFS:
OWSLEY BROWN II WILL RETIRE FROM THE BOARD at the company’s annual meeting in July, says Brown-Forman. Brown, who was most recently a director, served 12 years as chairman and is the former ceo of the company. His retirement will reduce the board's size to 13 members.
THE PATRON SPIRITS COMPANY was recognized as The Beverage Forum 2008“Small Company of the Year.”
Have a great Memorial Day Weekend.
Until Tuesday, Megan
“It is fun to be in the same decade with you.”
Franklin D. Roosevelt (1882 - 1945), in a letter to Winston Churchill
--------- Sell Day Calendar ----------
Today's Sell Day: 17
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.
The main challenge of this year’s meeting is to curb alcohol problems in developing countries, which includes alcohol abuse and tainted alcohol made on the cheap, while managing to avoid strangling the healthy consumption of branded beer, wine, and spirits in developed countries. However, some people in the industry fear the WHO is looking to crack down on alcohol like it did with tobacco three years ago. We have some time though: the draft strategy will not likely be presented to the WHA for two years.
The beer, wine and spirits companies created a coalition three years ago called the Global Alcohol Producers Group (GAP) to protect the industry's interests. Mainly, the coalition wants to ensure that the WHO's policies don't interfere with the legitimate alcohol trade in developed countries, nor attack our alcohol infrastructure or regulation (three-tier system), or impose limits on advertising.
In particular, the GAP Group opposes high taxes and restrictions on alcohol availability, calling them “quick-fix solutions.” GAP believes taxes and restricted trade “are ineffective in addressing and assisting the minority who misuse alcohol” and may encourage black markets and illicit products.
Instead, GAP promotes initiatives and alcohol education to curb drunk driving, illegal underage and excessive drinking.
RESOLUTION PASSED. The World Health Assembly this week passed a resolution entitled “strategies to reduce the harmful use of alcohol.” The Global Alcohol Producers Group believes the resolution is “balanced and constructive, as it acknowledges the importance of the different national, religious and cultural contexts.” It also proposes a global strategy consisting of a set of proposed measures that governments will tailor to their culture and needs.
DIFFERENTIATING VODKA
Vodka is vodka is vodka? Business Week featured an interesting article on vodka that begs the question: what, exactly, distinguishes one vodka brand from the next?
“With spirits, especially vodka (because there is so little to distinguish one product from another), the design of the bottle and label is crucially important, along with the country of origin and ‘brand story.’ Each vodka I tasted had its own brand story that helps deliver the product as much as a lemon wedge or olive.”
In the article, journalist David Kiley conducts a blind taste test with avid vodka drinkers who generally stick to a certain brand (namely Ketel One, Grey Goose or Absolut). In the test, no one successfully picked their brand.
“The other conclusion I drew was that when it comes to mixing vodka with fruit juice, or unpurified ice, you might as well as save your money and keep a bottle of Popov around.”
Based on this article, we notice a parallel between vodka and domestic light beer. Domestic light beer brands (Miller Lite, Bud Light and Coors Light) so closely aligned themselves with one another in the past through advertising that customers often had a hard time differentiating between brands. Today, those beer companies are working to differentiate themselves from the competition, and are doing a pretty good job at it. Vodka brands, particularly premium and up, need to come up with their own very different marketing strategy and image to avoid falling in a “sameness” trap. Sounds easy on paper, huh?
INBEV PREPARING BID FOR A-B
The Financial Times Alphaville column is reporting that InBev is preparing a $46 billion bid for Anheuser-Busch. Says the FT:
The deal is being billed as a “transformational” move by those executives and bankers involved, and is likely to herald the long-awaited end-game in global drinks industry consolidation. InBev’s aim is to create the fifth largest consumer products group in the world.
“A direct approach to approach to Anheuser chief executive August Busch IV is being planned, although expecting a cool reception, the InBev team are preparing to send a follow up letter to the American group’s entire board, mapping out terms that are expected to be pitched at $65 a share. If Anheuser refuse to commence friendly talks, InBev is considering a public appeal direct to the target’s shareholders.
“On Friday, sources indicated that while extensive work had been carried out on the transaction, InBev was 'not about to push the button.'”
(...)
“The matter was discussed at length at an InBev board meeting on April 28 and then again at a fresh meeting held this Thursday.
Antonio Weiss at Lazards in Paris is the prime corporate financier advising the InBev board on the matter. On the financing side, direct negotiations are believed to have been held between Felipe Dutra, InBev’s financial officer, and Jamie Dimon at JPMorgan, while former IMF head Rodrigo de Rato has led discussions on behalf of InBev with Emilio Botin at Santander.”
A-B's stock has shot up today, and recall that BUD has had heavy options trading and the stock price has rallied over the past few weeks. However, this rumor has been around before.
Developing......
(Written by Harry Schuhmacher, editor of sister publication Beer Business Daily)
WSWA HIRES ROBERT WIGGANS FOR MEMBER OUTREACH
The WSWA on Monday welcomed association veteran Robert Wiggans to the newly created position of Membership Director. Wiggans assumes primary responsibility for servicing WSWA members’ needs, will act as their primary point of contact for general inquiries to the organization, and will oversee projects related to recruitment and retention.
WSD BRIEFS:
OWSLEY BROWN II WILL RETIRE FROM THE BOARD at the company’s annual meeting in July, says Brown-Forman. Brown, who was most recently a director, served 12 years as chairman and is the former ceo of the company. His retirement will reduce the board's size to 13 members.
THE PATRON SPIRITS COMPANY was recognized as The Beverage Forum 2008“Small Company of the Year.”
Have a great Memorial Day Weekend.
Until Tuesday, Megan
“It is fun to be in the same decade with you.”
Franklin D. Roosevelt (1882 - 1945), in a letter to Winston Churchill
--------- Sell Day Calendar ----------
Today's Sell Day: 17
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 9:04 AM
<< Home