EU Approves Absolut Acquisition
The European Union has given Pernod “conditional approval” to buy Vin & Sprit (maker of Absolut) for $8.9 billion from the Swedish government. The Commission found problems in various European countries, so Pernod offered to sell Dry Anis in Finland, Serkova vodka in Greece, Lubuski gin in Poland and Star Gin, Red Port and Groenstedts cognac in Sweden. Pernod also agreed to discontinue the distribution of Royal Canadian in Sweden, and will soon end its distribution agreement with the SPI Group concerning Stolichnaya and Moskovskaya.
"The Commission's decision is conditional on the sale of a number of brands in markets where the Commission identified competition concerns," the European Union's top competition regulator said in a statement.
"The remedies that have been proposed by Pernod Ricard will ensure that effective competition is maintained in spirits markets concerned after its acquisition of (Absolut maker) Vin & Sprit," the Commission said.
The company said a 12 billion euro syndicated loan would pay for V&S and refinance existing Pernod debt.
RETAIL SHIPPING UPDATES
The Specialty Wine Retailers Association (SWRA) provided some legislative updates on the issue of direct to consumer shipping by retailers. As you know, the SWRA is working to increase consumer access to wine by making it legal for retailers to ship wine directly to adults in each state. Here’s a recap:
TEXAS. The SWRA is currently appealing a law that prohibits out-of-state retailers from shipping to Texas residents in the 5th Circuit Court of Appeals. As you’ll recall, a Texas District Court judge ruled that the 2005 Granholm v. Heald Supreme Court decision applied as much to retailers as it did to wineries, meaning a state may not allow in-state wine retailers to ship directly to consumers but ban out-of-state retailers from doing the same thing.
However, the judge ruled that the state can require out-of-state retailers to purchase the wines they intend sell to Texas residents only from Texas wholesalers. The SWRA says “the scheme is not only economically unfeasible, but would amount to an unlawful transaction. Retailers may not purchase wine from out-of-state wholesalers.”
Siesta Village Market v. Perry will continue on to oral arguments after another series of response briefs.
The State of Texas and Texas Wholesalers are also appealing the decision and asking the court to ban all retailer shipping in Texas, be it from in-state or out-of-state retailers.
NEW JERSEY. In New Jersey, State Senator Stephen Sweeney introduced SB 1810, a bill that, if passed into law, would allow retailers and wineries both in and outside of New Jersey to ship wine directly to New Jersey consumers. The bill provides for up to 24 cases annually to be shipped by wineries or retailers to any adult resident of New Jersey and creates a shipping permit that would cost $100 per year. SWRA says it is monitoring this bill and expects it to receive a hearing in the fall.
TENNESSEE. In Tennessee, Senate Bill 2686, introduced by Senator Doug Jackson, was sent over to a summer study committee after receiving a hearing, but no vote, in the Senate State & Local Government Committee. The bill would allow in-state and out-of-state wineries and retailers to ship wine directly to Tennessee residents.
SWRA Executive Director Tom Wark attended the hearing and testified on the effect of the bill, claiming it would result in significant tax revenue for the state, but also provide significant protection against underage access.
WASHINGTON. After a bill was killed in Washington State that would have allowed consumers to purchase wine from out of state retailers, the State of Washington has formed the “The Washington State Beer & Wine Regulation, Joint Select Committee Task Force.” The Task Force will be considering potential changes to the state's alcohol regulatory environment, including the issue of retailer-to-consumer wine shipping. SWRA says it has submitted initial written testimony to the Task Force as well as interviewed with staffers.
CONSUMERS FREQUENT BIG BOX STORES, PRIVATE LABELS
A Nielsen study says high gas prices are leading more consumers to purchase private label groceries and shop at supercenters. A majority of consumers (78%) are combining shopping trips and more than half (52%) are eating out less and staying home more often (51%).
In effort to use the minimum amount of gas, 28% of consumers are doing more of their shopping at supercenters, where more items are in one store. More Americans (35%) are buying less expensive brands, although Nielsen warns retailers “to be cautious when making decisions about private label products.” More than half of private labels sales growth comes from milk, fresh eggs, cheese and bread or baked goods.
On the subject of private label, Food Lion’s private label wine, Surf Point, received recognition at the San Francisco International Wine Competition. Surf Point Pinot Grigio received the gold medal, while Surf Point Merlot won the silver medal and Surf Point Chardonnay won the bronze medal, says the company. Surf Point is made and developed on California’s mid-coast from Sonoma grapes and has been available for a month.
WSD BRIEFS:
DEKUYPER INTRODUCES BURST BAR SHOTS, pre-mixed shots containing all ingredients in one bottle. According to a press release, “all the consumer needs to do is “Open, Pour and Party!” Burst Bar Shots come in Red Headed Burst, Kamikaze Burst and Washington Apple Burst. “This new product line reaffirms our commitment to simplifying the liqueurs category and the consumer shopping experience,” said Sheryl Rosenberger, senior brand manager, DeKuyper. A 750ml bottle has a suggested retail price of $10.99.
PATRON LAUNCHES MUSIC IN MOTION. In the three year anniversary of Hurricane Katrina, Patrón tequila is partnering with New Orleans’ St. Bernard Project and Preservation Hall to create a national fundraising initiative called the Music in Motion tour (www.musicinmotiontour.com). The Patrón Tequila Express (a vintage 1927 train car), will visit cities such as Chicago, Indianapolis, Cleveland, Los Angeles, Washington, D.C., Baltimore and New York (and all points between) collecting donations and offering an opportunity for people who raise the most money to ride the train to attend music-related events. The train departs from New Orleans today (July 17).
CHILEAN WINE TERRA ANDINA has launched its 2007 Chardonnay Reserva in the U.S., made exclusively with grapes harvest in Chile’s Limari Valley region. It will sell at the suggested retail price of $12.99 and will be available nationwide beginning August 2008. Terra Andina also introduces its 2007 Chardonnay Varietal at a retail price of $8.99.
COMPLI LAUNCHES DIRECT SHIPPING SOFTWARE. Complí Inc. has released eComplí, a do-it-yourself model that helps wineries complete the necessary steps to ship direct in the U.S. In addition, Compli has opened new Napa offices and hired Clay Wallin to lead its sales and marketing efforts nationally.
Until tomorrow, Megan
“The secret of staying young is to live honestly, eat slowly, and lie about your age.”
Lucille Ball
--------- Sell Day Calendar ----------
Today’s Sell Day: 13
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.
"The Commission's decision is conditional on the sale of a number of brands in markets where the Commission identified competition concerns," the European Union's top competition regulator said in a statement.
"The remedies that have been proposed by Pernod Ricard will ensure that effective competition is maintained in spirits markets concerned after its acquisition of (Absolut maker) Vin & Sprit," the Commission said.
The company said a 12 billion euro syndicated loan would pay for V&S and refinance existing Pernod debt.
RETAIL SHIPPING UPDATES
The Specialty Wine Retailers Association (SWRA) provided some legislative updates on the issue of direct to consumer shipping by retailers. As you know, the SWRA is working to increase consumer access to wine by making it legal for retailers to ship wine directly to adults in each state. Here’s a recap:
TEXAS. The SWRA is currently appealing a law that prohibits out-of-state retailers from shipping to Texas residents in the 5th Circuit Court of Appeals. As you’ll recall, a Texas District Court judge ruled that the 2005 Granholm v. Heald Supreme Court decision applied as much to retailers as it did to wineries, meaning a state may not allow in-state wine retailers to ship directly to consumers but ban out-of-state retailers from doing the same thing.
However, the judge ruled that the state can require out-of-state retailers to purchase the wines they intend sell to Texas residents only from Texas wholesalers. The SWRA says “the scheme is not only economically unfeasible, but would amount to an unlawful transaction. Retailers may not purchase wine from out-of-state wholesalers.”
Siesta Village Market v. Perry will continue on to oral arguments after another series of response briefs.
The State of Texas and Texas Wholesalers are also appealing the decision and asking the court to ban all retailer shipping in Texas, be it from in-state or out-of-state retailers.
NEW JERSEY. In New Jersey, State Senator Stephen Sweeney introduced SB 1810, a bill that, if passed into law, would allow retailers and wineries both in and outside of New Jersey to ship wine directly to New Jersey consumers. The bill provides for up to 24 cases annually to be shipped by wineries or retailers to any adult resident of New Jersey and creates a shipping permit that would cost $100 per year. SWRA says it is monitoring this bill and expects it to receive a hearing in the fall.
TENNESSEE. In Tennessee, Senate Bill 2686, introduced by Senator Doug Jackson, was sent over to a summer study committee after receiving a hearing, but no vote, in the Senate State & Local Government Committee. The bill would allow in-state and out-of-state wineries and retailers to ship wine directly to Tennessee residents.
SWRA Executive Director Tom Wark attended the hearing and testified on the effect of the bill, claiming it would result in significant tax revenue for the state, but also provide significant protection against underage access.
WASHINGTON. After a bill was killed in Washington State that would have allowed consumers to purchase wine from out of state retailers, the State of Washington has formed the “The Washington State Beer & Wine Regulation, Joint Select Committee Task Force.” The Task Force will be considering potential changes to the state's alcohol regulatory environment, including the issue of retailer-to-consumer wine shipping. SWRA says it has submitted initial written testimony to the Task Force as well as interviewed with staffers.
CONSUMERS FREQUENT BIG BOX STORES, PRIVATE LABELS
A Nielsen study says high gas prices are leading more consumers to purchase private label groceries and shop at supercenters. A majority of consumers (78%) are combining shopping trips and more than half (52%) are eating out less and staying home more often (51%).
In effort to use the minimum amount of gas, 28% of consumers are doing more of their shopping at supercenters, where more items are in one store. More Americans (35%) are buying less expensive brands, although Nielsen warns retailers “to be cautious when making decisions about private label products.” More than half of private labels sales growth comes from milk, fresh eggs, cheese and bread or baked goods.
On the subject of private label, Food Lion’s private label wine, Surf Point, received recognition at the San Francisco International Wine Competition. Surf Point Pinot Grigio received the gold medal, while Surf Point Merlot won the silver medal and Surf Point Chardonnay won the bronze medal, says the company. Surf Point is made and developed on California’s mid-coast from Sonoma grapes and has been available for a month.
WSD BRIEFS:
DEKUYPER INTRODUCES BURST BAR SHOTS, pre-mixed shots containing all ingredients in one bottle. According to a press release, “all the consumer needs to do is “Open, Pour and Party!” Burst Bar Shots come in Red Headed Burst, Kamikaze Burst and Washington Apple Burst. “This new product line reaffirms our commitment to simplifying the liqueurs category and the consumer shopping experience,” said Sheryl Rosenberger, senior brand manager, DeKuyper. A 750ml bottle has a suggested retail price of $10.99.
PATRON LAUNCHES MUSIC IN MOTION. In the three year anniversary of Hurricane Katrina, Patrón tequila is partnering with New Orleans’ St. Bernard Project and Preservation Hall to create a national fundraising initiative called the Music in Motion tour (www.musicinmotiontour.com). The Patrón Tequila Express (a vintage 1927 train car), will visit cities such as Chicago, Indianapolis, Cleveland, Los Angeles, Washington, D.C., Baltimore and New York (and all points between) collecting donations and offering an opportunity for people who raise the most money to ride the train to attend music-related events. The train departs from New Orleans today (July 17).
CHILEAN WINE TERRA ANDINA has launched its 2007 Chardonnay Reserva in the U.S., made exclusively with grapes harvest in Chile’s Limari Valley region. It will sell at the suggested retail price of $12.99 and will be available nationwide beginning August 2008. Terra Andina also introduces its 2007 Chardonnay Varietal at a retail price of $8.99.
COMPLI LAUNCHES DIRECT SHIPPING SOFTWARE. Complí Inc. has released eComplí, a do-it-yourself model that helps wineries complete the necessary steps to ship direct in the U.S. In addition, Compli has opened new Napa offices and hired Clay Wallin to lead its sales and marketing efforts nationally.
Until tomorrow, Megan
“The secret of staying young is to live honestly, eat slowly, and lie about your age.”
Lucille Ball
--------- Sell Day Calendar ----------
Today’s Sell Day: 13
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 12:11 PM
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