Bourbon Seeing International Gains
Bourbon producers are seeing new demand on an international scale, which has led distillers such as Maker’s Mark, Heaven Hill, Wild Turkey and Jim Beam to expand their production facilities. The Associated Press featured an interesting article over what Max Shapira, president of Heaven Hill Distilleries, called “an exciting time to be in the bourbon business."
“Distillers are expanding their bourbon production and storage and dispatching sales teams around the world, bullish for a traditionally Southern beverage gaining popularity worldwide. Surging exports, the weak U.S. dollar and rising popularity among younger Americans are driving the boom,” said the article.
The AP says international expansion is “more than offsetting” rising gain and fuel costs, particularly in higher-priced small-batch and single-barrel products. Growth is still behind vodka and rum but is outpacing Scotch whisky, according to Beverage Information Group.
Maker's Mark U.S. sales rose 8% last year, while Evan Williams sales grew 5% and Wild Turkey 4.6%, said Beverage Information Group.
WHYTE & MACKAY MIGHT PURCHASE GLEN MORAY
The Sunday Times reported over the weekend that Whyte & Mackay, which was taken over by Vijay Mallya’s United Spirits, is contemplating acquiring Glen Moray. Last week LVMH Moet Hennessy said it was putting Glen Moray on the market and investing £45m in its distilleries in Tain and at Ardbeg on Islay as part of a wider restructuring of its Glenmorangie business.
Whyte & Mackay is reportedly interested in second - tier malts and in consolidating the supply for Scotch whiskies as it attempts to tighten its hold on the fast-growing Indian market. Glen Moray’s output is mainly used for blended whiskies, such as such as Highland Queen, and private-label brands.
The article said Mallya is also “understood to be in regular talks with Moët Hennessy on issues including potential asset swaps.”
"You have to assume that the bigger players such as Diageo, Pernod Ricard, William_Grant and Edrington, would have little interest in buying a malt like Glen Moray, since it comes with low brand equity. Maybe it could be a play for Whyte & Mackay, given their ambitions for the Indian market," said an unnamed drinks analyst to the Sunday Times.
Recall that Glenmorangie signed an agreement with Diageo last week for the sale of its 33-acre Broxburn facility in an attempt to withdraw from the bottling and sale of blended Scotch.
RED WINE IMPROVES HEALTH, NOT LIFE SPAN
Researchers have found that resveratrol (a compound found in red wine grapes) will help slow the signs of aging although it will not necessarily prolong your lifespan. Previous studies suggested red wine could help people live longer, but new evidence says that’s not the case. Instead, it will improve quality of life by providing heart benefits, stronger bones and help prevent cataracts.
"We found that while quality of life improved with resveratrol, the compound did not significantly affect overall survival or maximum lifespan," Rafael de Cabo of the US National Institute of Ageing said.
In the study, some mice were fed a standard diet, some a high-calorie diet and some got food only every other day. The researchers then began giving some of the mice resveratrol in either low or high doses when they were 12 months old, roughly the same as 35 years old in a person. The mice given resveratrol experienced broad health benefits compared to mice not given the compound, reports Reuters. De Cabo told the publication that Resveratrol “wiped out the negatives effect of the high fat.”
However, De Cabo said it would be too early for people to start taking resveratrol supplements to improve health until more research is done.
NEW CA BILL WOULD GIVE TASTING ROOMS MORE FREEDOM
A new California bill would allow winery visitors to drink wine bottles they have purchased at the winery on the premises. California law permits most wineries to sell bottles of wine, but only for consumption away from the premises where it was sold. Assembly Bill 2004 would allow patrons to drink their wine at the winery, in addition to allowing all wineries with a production permit (known as Type 02 permit) to sell their wines by the glass or by the bottle, according to the Press Democrat. The main component that would distinguish these wineries from a bar or restaurant is the winery can only sell its own wines.
AB 2004 is sponsored by the Wine Institute and co-authored by Sen. Patricia Wiggins and Assemblywoman Noreen Evans. It passed the Legislature unanimously June 30, and Gov. Arnold Schwarzenegger has 12 days from receipt of the bill to sign it.
RUSSIAN STANDARD CEO LEAVES
Carlo Radicati, the CEO of Russian Standard, has left the company a little over a year after he began. Radicati joined the company from Beverages & Trading LLC, the Russian distribution arm of Bacardi-Martini Group.
Russian publication Kommersant is reporting that Radicati was fired by Russian Standard owner Rustam Tariko, citing sources that claimed Radicati was given little managerial freedom. Russian Standard Vodka executives say Henrik Poppe has been named acting head of the company.
BROWN-FORMAN DISSOLVES EUROPEAN MARKETING TEAM
Brown-Forman has reportedly dissolved its entire European wine marketing team as part of a major restructuring, according to Marketing Week. As a result, managing director for European wines, David Cox, will leave the company, along with marketing director Simon Legge and the rest of the European marketing team.
B-F reportedly plans to move the marketing of its wine brands into the company’s head office in Kentucky, and merge the wine and spirits operations within continental Europe. The restructure follows the merger of the wine and spirits businesses in the US two years ago.
BACKGROUND ON BERNARD ARNAULT
There is an interesting article on Bernard Arnault, owner of LVMH Moet Hennessey in the Fortune Times, who last week won a $61 million lawsuit against Ebay regarding Louis Vuitton knockoffs.
“On the one hand he is a politely distant, impeccably dressed, soft-spoken individual who likes to play classical works on the grand piano next to his office; on the other, he is considered one of the world's most ruthless and competitive business tycoons and by far the most successful in his sector.”
WSD BRIEFS:
BONNY DOON VINEYARD IS MOVING ITS TASTING ROOM from Bonny Doon to the urban winery at 328 Ingalls Street in Santa Cruz. The newly expanded Tasting Room will open late Fall 2008. The Bonny Doon property has been sold to Beauregard Vineyards, a local family owned winery and vineyard management company. The original tasting room at 10 Pine Flat Road in Bonny Doon will continue to operate until the new visitor facility at the winery is completed.
FOSTER’S GROUP IS REVIVING THE HEEMSKERK LABEL IN AUSTRALIA, which will be sold mainly in restaurants and some fine wine retailers as a way to build momentum. Hailing from Tasmania, Heemskerk (priced $60 and above) was originally launched in 1975 and later became an in-house brand available only to members of the Cellarmasters wine club. Foster’s sold the Cellarmasters business last year but kept the Heemskerk label. News of Heemskerk surfaces as Foster’s chairman revaluates the company’s wine business, which may include selling assets.
WYNDHAM ESTATE HAS APPOINTED Nigel Dolan as Chief Winemaker. Wyndham produces the number one Shiraz by dollar sales in Australia, Bin 555 Shiraz.
Until tomorrow, Megan
“Since we cannot know all that there is to be known about anything, we ought to know a little about everything.”
Blaise Pascal
--------- Sell Day Calendar ----------
Today’s Sell Day: 5
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
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.
“Distillers are expanding their bourbon production and storage and dispatching sales teams around the world, bullish for a traditionally Southern beverage gaining popularity worldwide. Surging exports, the weak U.S. dollar and rising popularity among younger Americans are driving the boom,” said the article.
The AP says international expansion is “more than offsetting” rising gain and fuel costs, particularly in higher-priced small-batch and single-barrel products. Growth is still behind vodka and rum but is outpacing Scotch whisky, according to Beverage Information Group.
Maker's Mark U.S. sales rose 8% last year, while Evan Williams sales grew 5% and Wild Turkey 4.6%, said Beverage Information Group.
WHYTE & MACKAY MIGHT PURCHASE GLEN MORAY
The Sunday Times reported over the weekend that Whyte & Mackay, which was taken over by Vijay Mallya’s United Spirits, is contemplating acquiring Glen Moray. Last week LVMH Moet Hennessy said it was putting Glen Moray on the market and investing £45m in its distilleries in Tain and at Ardbeg on Islay as part of a wider restructuring of its Glenmorangie business.
Whyte & Mackay is reportedly interested in second - tier malts and in consolidating the supply for Scotch whiskies as it attempts to tighten its hold on the fast-growing Indian market. Glen Moray’s output is mainly used for blended whiskies, such as such as Highland Queen, and private-label brands.
The article said Mallya is also “understood to be in regular talks with Moët Hennessy on issues including potential asset swaps.”
"You have to assume that the bigger players such as Diageo, Pernod Ricard, William_Grant and Edrington, would have little interest in buying a malt like Glen Moray, since it comes with low brand equity. Maybe it could be a play for Whyte & Mackay, given their ambitions for the Indian market," said an unnamed drinks analyst to the Sunday Times.
Recall that Glenmorangie signed an agreement with Diageo last week for the sale of its 33-acre Broxburn facility in an attempt to withdraw from the bottling and sale of blended Scotch.
RED WINE IMPROVES HEALTH, NOT LIFE SPAN
Researchers have found that resveratrol (a compound found in red wine grapes) will help slow the signs of aging although it will not necessarily prolong your lifespan. Previous studies suggested red wine could help people live longer, but new evidence says that’s not the case. Instead, it will improve quality of life by providing heart benefits, stronger bones and help prevent cataracts.
"We found that while quality of life improved with resveratrol, the compound did not significantly affect overall survival or maximum lifespan," Rafael de Cabo of the US National Institute of Ageing said.
In the study, some mice were fed a standard diet, some a high-calorie diet and some got food only every other day. The researchers then began giving some of the mice resveratrol in either low or high doses when they were 12 months old, roughly the same as 35 years old in a person. The mice given resveratrol experienced broad health benefits compared to mice not given the compound, reports Reuters. De Cabo told the publication that Resveratrol “wiped out the negatives effect of the high fat.”
However, De Cabo said it would be too early for people to start taking resveratrol supplements to improve health until more research is done.
NEW CA BILL WOULD GIVE TASTING ROOMS MORE FREEDOM
A new California bill would allow winery visitors to drink wine bottles they have purchased at the winery on the premises. California law permits most wineries to sell bottles of wine, but only for consumption away from the premises where it was sold. Assembly Bill 2004 would allow patrons to drink their wine at the winery, in addition to allowing all wineries with a production permit (known as Type 02 permit) to sell their wines by the glass or by the bottle, according to the Press Democrat. The main component that would distinguish these wineries from a bar or restaurant is the winery can only sell its own wines.
AB 2004 is sponsored by the Wine Institute and co-authored by Sen. Patricia Wiggins and Assemblywoman Noreen Evans. It passed the Legislature unanimously June 30, and Gov. Arnold Schwarzenegger has 12 days from receipt of the bill to sign it.
RUSSIAN STANDARD CEO LEAVES
Carlo Radicati, the CEO of Russian Standard, has left the company a little over a year after he began. Radicati joined the company from Beverages & Trading LLC, the Russian distribution arm of Bacardi-Martini Group.
Russian publication Kommersant is reporting that Radicati was fired by Russian Standard owner Rustam Tariko, citing sources that claimed Radicati was given little managerial freedom. Russian Standard Vodka executives say Henrik Poppe has been named acting head of the company.
BROWN-FORMAN DISSOLVES EUROPEAN MARKETING TEAM
Brown-Forman has reportedly dissolved its entire European wine marketing team as part of a major restructuring, according to Marketing Week. As a result, managing director for European wines, David Cox, will leave the company, along with marketing director Simon Legge and the rest of the European marketing team.
B-F reportedly plans to move the marketing of its wine brands into the company’s head office in Kentucky, and merge the wine and spirits operations within continental Europe. The restructure follows the merger of the wine and spirits businesses in the US two years ago.
BACKGROUND ON BERNARD ARNAULT
There is an interesting article on Bernard Arnault, owner of LVMH Moet Hennessey in the Fortune Times, who last week won a $61 million lawsuit against Ebay regarding Louis Vuitton knockoffs.
“On the one hand he is a politely distant, impeccably dressed, soft-spoken individual who likes to play classical works on the grand piano next to his office; on the other, he is considered one of the world's most ruthless and competitive business tycoons and by far the most successful in his sector.”
WSD BRIEFS:
BONNY DOON VINEYARD IS MOVING ITS TASTING ROOM from Bonny Doon to the urban winery at 328 Ingalls Street in Santa Cruz. The newly expanded Tasting Room will open late Fall 2008. The Bonny Doon property has been sold to Beauregard Vineyards, a local family owned winery and vineyard management company. The original tasting room at 10 Pine Flat Road in Bonny Doon will continue to operate until the new visitor facility at the winery is completed.
FOSTER’S GROUP IS REVIVING THE HEEMSKERK LABEL IN AUSTRALIA, which will be sold mainly in restaurants and some fine wine retailers as a way to build momentum. Hailing from Tasmania, Heemskerk (priced $60 and above) was originally launched in 1975 and later became an in-house brand available only to members of the Cellarmasters wine club. Foster’s sold the Cellarmasters business last year but kept the Heemskerk label. News of Heemskerk surfaces as Foster’s chairman revaluates the company’s wine business, which may include selling assets.
WYNDHAM ESTATE HAS APPOINTED Nigel Dolan as Chief Winemaker. Wyndham produces the number one Shiraz by dollar sales in Australia, Bin 555 Shiraz.
Until tomorrow, Megan
“Since we cannot know all that there is to be known about anything, we ought to know a little about everything.”
Blaise Pascal
--------- Sell Day Calendar ----------
Today’s Sell Day: 5
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
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 2:39 PM
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