Future Brands Names New Leadership
Future Brands, the U.S. sales and distribution operation for Beam Global and the Absolut Spirits Company, announced several changes to its management structure and leadership team today.
The following organizational changes took effect July 7 and will put “greater emphasis on our luxury and on-premise businesses,” stated Bill Newlands, president of Beam’s U.S. business.
• Future Brands’ Tim Condron, previously vice president, sales control states, will now lead a newly created-position, as vice president, on-premise national accounts. Condron will also develop a luxury sales team to drive success of the upper marques in the Future Brands portfolio.
• Mike Glennon, previously vice president, customer management, will now lead a team focusing on the off-premise channel on behalf of Future Brands’ national accounts team.
• Matt Metz, vice president, distributor strategy and planning, will now lead the central region as vice president.
• Transitioning from Beam Global’s regional marketing group, Steve Bjeldanes is joining the Future Brands team as vice president, control states.
• Also joining Future Brands from Beam Global, Kevin Cooke will now assume the role of vice president, distributor strategy and planning.
SPECULATION ON FOSTER’S FUTURE
Reuters featured an article on Foster’s this weekend speculating about the company’s future. There are several possibilities, which include separating the beer and wine assets, selling the beer or wine business, selling off wine brands one by one, or selling the entire company.
How did Foster’s get into this mess in the first place? Problems include Foster’s paying too much for Beringer and Southcorp in the past, the U.S. economic slump, the strong Aussie dollar and brands that management teams have failed to sort out. Foster's shares have tumbled 17 percent since it announced a review of its wine business last month, and the resignation of chief executive Trevor O'Hoy.
A Foster’s spokesman declined to tell Reuters if any unsolicited bids had been received. Potential bidders for the wine business include Diageo, Pernod Ricard and Constellation Brands, although it’s only speculation.
"I'm sure some big players are interested. The biggest question mark is whether they would be interested in the whole portfolio or whether they would start cherry-picking in terms of brands or regions, or wineries or vineyards," said Fortis Investment Partners portfolio manager Theo Maas.
Constellation ceo Rob Sands commented on July 1 that "our focus is on hunkering down and paying down debt," when asked if he was interested in Beringer.
PERNOD IN TALKS TO SELL GLENDRONACH?
The British press is reporting that Pernod Ricard is in talks to sell its Glendronach malt whisky distillery for £30million. An article in The Scotsman cites “industry sources” that claim Pernod has received a first round of bids out of which two potential suitors have emerged, including the South African consortium behind the BenRiach distillery company.
One source said: "Pernod has received a first round of bids and is now in final negotiations with a preferred bidder. Quite frankly, though, I am shocked by this move as it is favoured by many whisky enthusiasts and it is a very pretty distillery. The decision is unbelievable."
Pernod inherited Glendronach when it acquired Allied Domecq in 2005, and is reportedly not necessary after the company expanded its Glenlivet distillery and reopened Allt a' Bhainne distillery.
One source said: "They are probably trying to cash in while whisky prices are riding high."
FAMILY WINEMAKERS OF CALIFORNIA CHALLENGE MASSACHUSETTS
Family Winemakers of California v. Jenkins challenges a ban that prevents Massachusetts adults from ordering wine from wineries that produce more than 30,000 gallons of wine annually. Oral arguments will be heard July 29 in Boston.
Family Winemakers’ main beef is that the law unfairly champions in-state wineries, which all produce less than 30,000 gallons. For example, HB4498 prohibits out-of-state wineries from shipping directly to a Massachusetts adult if the winery has been represented by a Massachusetts wholesaler within the last six months. It also limits how much wine an individual consumer can receive from a combined group of wineries every year, but does not provide a mechanism for wineries to know how much an individual has received from other wineries. Because wineries can loose their federal license to make wine for non-compliance, the statute bars interstate shipments. In addition, FedEx and UPS do not ship into Massachusetts
In 2005, then Governor Mitt Romney vetoed HB 4498 but the veto was overridden.
SWISS ABSINTHE SEES A BOOM IN THE U.S.
Swiss absinthe has seen a spike in sales in the U.S. over the past six months, reports Bloomberg, as U.S. demand takes a new high. Almost 90% of Swiss absinthe is exported, with more than two-thirds of the exports going to the U.S.
“We cannot cope with demand -- we're planning to triple our production capacity to more than 1 million liters a year,” Yves Kuebler, head of Switzerland's biggest absinthe company Blackmint, said in a telephone interview with Bloomberg. Kuebler said “with the help of the Swiss embassy in Washington,” his company managed to convince the U.S. Food and Drug Administration to allow the drink in the U.S.
The brand, Kübler, is produced by the Blackmint Distillery and imported into the U.S. by Altamar Brands. Kübler became available to consumers in New York City, Las Vegas, Boston, Los Angeles and San Francisco in late 2007. Kübler kicked off 2008 with launches in Chicago, Miami, Baltimore, Nashville, New Orleans, Scottsdale, and Kentucky which will be followed by other top tier markets in the later part of 2008. Kübler will be sold at 53% ABV in the US at $49.99 per one litre bottle.
“The opportunity to sell the first authentic Swiss Absinthe in this country in nearly 100 years speaks for itself,” says W. L. Lyons Brown, Altamar’s CEO. “It represents the rebirth of a great category and a great product and we are privileged to be able to represent a brand at the center of the birthplace of absinthe.”
ANHEUSER-BUSCH INBEV BECOMES LARGEST BREWER
We typically don’t report on the beer industry, but a story of this magnitude deserves a mention. Belgium-based brewer InBev has entered an agreement to purchase Anheuser-Busch for $70 a share or $52 billion. The new company will be called Anheuser-Busch InBev (ABI). The joint release reports that 40% of the combined company's revenues will now be generated in the U.S. The combined company will sell 5.4 billion cases a year all around the globe, making it the largest brewer by far, with leading positions in the world's top five markets: China, U.S., Russia, Brazil and Germany. The Board of Directors of ABI will be comprised of the existing directors of the InBev Board, August Busch IV, and one other current or former director from the Anheuser-Busch Board.
Both companies' boards have approved the terms and InBev has arranged financing for the deal, which is expected to close by the end of the year. St. Louis will be the North American headquarters for the new company, which will be headed by InBev Chief Executive Carlos Brito.
The deal is subject to approval by shareholders of both Anheuser-Busch and InBev, and it must pass muster with U.S. and other regulators. Grupo Modelo also has the right to consent to InBev buying A-B’s 50% of shares in Modelo.
WSD BRIEFS:
WALGREEN SAYS IT WILL SLOW EXPANSION, which has been at the center of the nation’s largest drugstore chain’s growth strategy for close to two decades. The building slowdown will reduce capital spending over the next three fiscal years by about $500 million, Walgreen says. Walgreen had been expecting its long-term growth rate would be about 8% annually (495 stores). But now, the company is aiming at a 6% growth rate, or 425 new stores in fiscal 2010, and a 5% growth rate in 2011 (365 new stores).
THE BRITISH COLUMBIA WINE INSTITUTE’S NEW DIRECTOR is Terry Cotter, an industry veteran. Cotter has served as a regional director of the B.C. Neighbourhood Pub Association (now the Association of Beverage Licensees, or ABLE BC) and supported efforts to liberalize the retail environment for liquor licensees in the province. The institute’s former executive director, Peggy Athans, left earlier this year after four and a half years at BCWI.
DIAGEO’S FIFTH ANNUAL GOLDEN BAR AWARDS were held at the Museum of Natural History in New York City on Friday evening, July 10. To view a list of the winners, click here.
CLOS LACHANCE OWNER BILL MURPHY has been named Chairman of the Board of Visitors and Fellows at U.C. Davis’ Department of Viticulture & Enology. Clos LaChance was started in 1992 in California’s Central Coast.
Until tomorrow, Megan
“There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered.”
Nelson Mandela
--------- Sell Day Calendar ----------
Today’s Sell Day: 10
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 following organizational changes took effect July 7 and will put “greater emphasis on our luxury and on-premise businesses,” stated Bill Newlands, president of Beam’s U.S. business.
• Future Brands’ Tim Condron, previously vice president, sales control states, will now lead a newly created-position, as vice president, on-premise national accounts. Condron will also develop a luxury sales team to drive success of the upper marques in the Future Brands portfolio.
• Mike Glennon, previously vice president, customer management, will now lead a team focusing on the off-premise channel on behalf of Future Brands’ national accounts team.
• Matt Metz, vice president, distributor strategy and planning, will now lead the central region as vice president.
• Transitioning from Beam Global’s regional marketing group, Steve Bjeldanes is joining the Future Brands team as vice president, control states.
• Also joining Future Brands from Beam Global, Kevin Cooke will now assume the role of vice president, distributor strategy and planning.
SPECULATION ON FOSTER’S FUTURE
Reuters featured an article on Foster’s this weekend speculating about the company’s future. There are several possibilities, which include separating the beer and wine assets, selling the beer or wine business, selling off wine brands one by one, or selling the entire company.
How did Foster’s get into this mess in the first place? Problems include Foster’s paying too much for Beringer and Southcorp in the past, the U.S. economic slump, the strong Aussie dollar and brands that management teams have failed to sort out. Foster's shares have tumbled 17 percent since it announced a review of its wine business last month, and the resignation of chief executive Trevor O'Hoy.
A Foster’s spokesman declined to tell Reuters if any unsolicited bids had been received. Potential bidders for the wine business include Diageo, Pernod Ricard and Constellation Brands, although it’s only speculation.
"I'm sure some big players are interested. The biggest question mark is whether they would be interested in the whole portfolio or whether they would start cherry-picking in terms of brands or regions, or wineries or vineyards," said Fortis Investment Partners portfolio manager Theo Maas.
Constellation ceo Rob Sands commented on July 1 that "our focus is on hunkering down and paying down debt," when asked if he was interested in Beringer.
PERNOD IN TALKS TO SELL GLENDRONACH?
The British press is reporting that Pernod Ricard is in talks to sell its Glendronach malt whisky distillery for £30million. An article in The Scotsman cites “industry sources” that claim Pernod has received a first round of bids out of which two potential suitors have emerged, including the South African consortium behind the BenRiach distillery company.
One source said: "Pernod has received a first round of bids and is now in final negotiations with a preferred bidder. Quite frankly, though, I am shocked by this move as it is favoured by many whisky enthusiasts and it is a very pretty distillery. The decision is unbelievable."
Pernod inherited Glendronach when it acquired Allied Domecq in 2005, and is reportedly not necessary after the company expanded its Glenlivet distillery and reopened Allt a' Bhainne distillery.
One source said: "They are probably trying to cash in while whisky prices are riding high."
FAMILY WINEMAKERS OF CALIFORNIA CHALLENGE MASSACHUSETTS
Family Winemakers of California v. Jenkins challenges a ban that prevents Massachusetts adults from ordering wine from wineries that produce more than 30,000 gallons of wine annually. Oral arguments will be heard July 29 in Boston.
Family Winemakers’ main beef is that the law unfairly champions in-state wineries, which all produce less than 30,000 gallons. For example, HB4498 prohibits out-of-state wineries from shipping directly to a Massachusetts adult if the winery has been represented by a Massachusetts wholesaler within the last six months. It also limits how much wine an individual consumer can receive from a combined group of wineries every year, but does not provide a mechanism for wineries to know how much an individual has received from other wineries. Because wineries can loose their federal license to make wine for non-compliance, the statute bars interstate shipments. In addition, FedEx and UPS do not ship into Massachusetts
In 2005, then Governor Mitt Romney vetoed HB 4498 but the veto was overridden.
SWISS ABSINTHE SEES A BOOM IN THE U.S.
Swiss absinthe has seen a spike in sales in the U.S. over the past six months, reports Bloomberg, as U.S. demand takes a new high. Almost 90% of Swiss absinthe is exported, with more than two-thirds of the exports going to the U.S.
“We cannot cope with demand -- we're planning to triple our production capacity to more than 1 million liters a year,” Yves Kuebler, head of Switzerland's biggest absinthe company Blackmint, said in a telephone interview with Bloomberg. Kuebler said “with the help of the Swiss embassy in Washington,” his company managed to convince the U.S. Food and Drug Administration to allow the drink in the U.S.
The brand, Kübler, is produced by the Blackmint Distillery and imported into the U.S. by Altamar Brands. Kübler became available to consumers in New York City, Las Vegas, Boston, Los Angeles and San Francisco in late 2007. Kübler kicked off 2008 with launches in Chicago, Miami, Baltimore, Nashville, New Orleans, Scottsdale, and Kentucky which will be followed by other top tier markets in the later part of 2008. Kübler will be sold at 53% ABV in the US at $49.99 per one litre bottle.
“The opportunity to sell the first authentic Swiss Absinthe in this country in nearly 100 years speaks for itself,” says W. L. Lyons Brown, Altamar’s CEO. “It represents the rebirth of a great category and a great product and we are privileged to be able to represent a brand at the center of the birthplace of absinthe.”
ANHEUSER-BUSCH INBEV BECOMES LARGEST BREWER
We typically don’t report on the beer industry, but a story of this magnitude deserves a mention. Belgium-based brewer InBev has entered an agreement to purchase Anheuser-Busch for $70 a share or $52 billion. The new company will be called Anheuser-Busch InBev (ABI). The joint release reports that 40% of the combined company's revenues will now be generated in the U.S. The combined company will sell 5.4 billion cases a year all around the globe, making it the largest brewer by far, with leading positions in the world's top five markets: China, U.S., Russia, Brazil and Germany. The Board of Directors of ABI will be comprised of the existing directors of the InBev Board, August Busch IV, and one other current or former director from the Anheuser-Busch Board.
Both companies' boards have approved the terms and InBev has arranged financing for the deal, which is expected to close by the end of the year. St. Louis will be the North American headquarters for the new company, which will be headed by InBev Chief Executive Carlos Brito.
The deal is subject to approval by shareholders of both Anheuser-Busch and InBev, and it must pass muster with U.S. and other regulators. Grupo Modelo also has the right to consent to InBev buying A-B’s 50% of shares in Modelo.
WSD BRIEFS:
WALGREEN SAYS IT WILL SLOW EXPANSION, which has been at the center of the nation’s largest drugstore chain’s growth strategy for close to two decades. The building slowdown will reduce capital spending over the next three fiscal years by about $500 million, Walgreen says. Walgreen had been expecting its long-term growth rate would be about 8% annually (495 stores). But now, the company is aiming at a 6% growth rate, or 425 new stores in fiscal 2010, and a 5% growth rate in 2011 (365 new stores).
THE BRITISH COLUMBIA WINE INSTITUTE’S NEW DIRECTOR is Terry Cotter, an industry veteran. Cotter has served as a regional director of the B.C. Neighbourhood Pub Association (now the Association of Beverage Licensees, or ABLE BC) and supported efforts to liberalize the retail environment for liquor licensees in the province. The institute’s former executive director, Peggy Athans, left earlier this year after four and a half years at BCWI.
DIAGEO’S FIFTH ANNUAL GOLDEN BAR AWARDS were held at the Museum of Natural History in New York City on Friday evening, July 10. To view a list of the winners, click here.
CLOS LACHANCE OWNER BILL MURPHY has been named Chairman of the Board of Visitors and Fellows at U.C. Davis’ Department of Viticulture & Enology. Clos LaChance was started in 1992 in California’s Central Coast.
Until tomorrow, Megan
“There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered.”
Nelson Mandela
--------- Sell Day Calendar ----------
Today’s Sell Day: 10
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 1:35 PM
<< Home