An Update on Foster’s
Foster’s Group said today that Ian Johnston, a non-executive director of the company since September, will serve as acting chief executive officer while the company looks for a permanent replacement for Trevor O’Hoy. In addition to his ceo duties, Johnston will assist chairman David Crawford in overseeing the wine review announced in June, along with a $700 million write-down and a transfer of $600 million in goodwill to the company’s beer operations.
There are several components that have brought Foster’s to where it is today, including some that could have been avoided and others that could not. Foster’s admitted it paid too much for Southcorp and Beringer in the past, but has also suffered from a difficult Australian wine industry (including gluts and droughts in the past several years), the slowing U.S. economy and the strong Aussie dollar.
O’Hoy, 53, announced his resignation last month (June 10) and officially stepped down from his role as ceo today after 33 years with the company. Before replacing Ted Kunkel in 2004, O'Hoy ran the Australian brewing business and was chief financial officer.
"Trevor has led Foster's through a period of significant structural and business change since his appointment as CEO in 2004, including the acquisition of Southcorp, the rationalisation of the Company's manufacturing and logistics footprint and the divestment of non-core assets,” said Crawford.
"We again thank Trevor for his significant contribution throughout his 33 years with Foster's and wish him well in his future endeavours," he continued.
Johnston, who has been a director since September 2007, is a former executive with Unilever Plc and Cadbury Plc. He retired as Cadbury's head of global confectionary in 2000 after almost 20 years with the company. The press release says he will “maintain senior management focus and energise the team to drive day-to-day business performance across product categories and global businesses” at Foster’s.
The company says it continues to expect that the wine review and search for a new ceo will be concluded during the first half of fiscal 2009. This means Johnston, 61, could be chief for about four months.
The Age reports that Johnston roughly makes a base of $140,000 as a director and will likely receive a substantial raise with his temporary promotion. O’Hoy earned about $1.37 million of base pay in the 2007 financial year, plus nearly $500,000 in bonuses.
DIAGEO’S STOCK UNDER-RATED
The Wall Street Journal’s Neil Martin featured a story on “trading up” in the alcohol biz, particularly focused on Diageo. He says that “fears on Wall Street that a sluggish U.S. economy and rising global costs of raw materials like grains, wood and glass, will hurt world-wide sales and earnings this year and near term, especially in the U.S. which accounts for 33% of Diageo's net sales and 39% of operating profits” are keeping Diageo’s shares down on the New York Stock Exchange.
However, Diageo and some analysts say the frenzy is unwarranted because consumers are continuing to trade up.
"U.S. sales have come off a bit, but they haven't fallen off a cliff," said Diageo's ceo, Paul Walsh.
"Whatever the state of the global economy, it's not about to derail the world-wide trend toward more premium brands -- especially in the developing world, where economies are creating more affluent social classes with Western tastes for premium spirits, beers and wines," he continued.
Says Bank of America Securities analyst Bryan Spillane: "We believe these concerns are overblown."
Bryan believes Pernod is trading at an undeserved premium. He rates Diageo’s stock a “buy” and projects the shares will be trading more than 30% higher within a year. He also predicts operating profit will increase 9% and 7.5% to 8% in 2009.
KUNDE ESTATE & WINERY FOUNDER DIES
Arthur "Bob" Kunde, co-founder of Kunde Estate & Winery in the heart of Sonoma, died Friday afternoon at the age of 80. His death was the result of surgery complications following a bad fall last Sunday.
Kunde founded the winery in 1990 with his brother, Fred, making the transition from grape growers to vintners, reports the Press Democrat. He was retired at the time of his death but “was still very much involved in the business.”
In addition to his brother Rich and his three children, Kunde is survived by his wife of 55 years, Leslie, and six grandchildren.
A celebration of Kunde’s life will be held Friday at Kunde Estate Winery in Kenwood. Friends and family are invited to attend the 4 p.m. celebration at the winery, located at 9825 Sonoma Highway. Inurnment is private.
Memorial contributions may be made in Kunde’s name to either the 4H Foundation of Sonoma County, PO Box 1283, Rohnert Park, CA, 94927, or, to the Kenwood Firemen’s Association, PO Box 249, Kenwood, CA, 95452.
KIM CRAWFORD SELECTED AS GLOBAL PRIORITY BRAND
Kim Crawford was selected as a Global Priority Brand by owner Constellation Wines, a status awarded to four brands from their global portfolio, the company reports.
Announcing the news, Constellation NZ CEO Joe Stanton said "This is great news for Constellation NZ and means we are ready and resourced to take what is already a successful brand to the next level."
"But the great majority of wine drinkers off-shore are still yet to taste a New Zealand wine. To have the global reach of Constellation focused on the Kim Crawford brand means we are poised to take advantage of that opportunity. An opportunity that began with Sauvignon Blanc but we are able to extend now into other varieties like Pinot Gris, Pinto Noir and Merlot."
Following the acquisition of Kim Crawford Wines by Constellation NZ, Kim Crawford was contracted to the company until February of this year. Kim left to carry on the future of the brand that he co-founded 11 years ago with Erica Crawford, who remains involved as senior vp global sales and marketing for Constellation NZ.
WSD BRIEFS:
SOBIESKI VODKA REACHES 200,000 CASE MARK in the U.S. in less than 12months since launching in 2007 with its “Truth in Vodka” marketing campaign. “There is no question that Sobieski is poised to reach its stated goal of 1 million cases in sales in five years,” said Chester Brandes, ceo of Imperial Brands, Inc., importer of Sobieski Vodka.
THE EDRINGTON GROUP LAUNCHES FROZEN SCOTCH. The Edrington Group is introducing “The Snow Grouse,” an extension of The Famous Grouse brand that is designed to be stored in the freezer. It will be distributed by Maxxium Global Travel Retail as a travel-retail exclusive for six months before a wider international roll out. It retails at $31.64.
Until tomorrow, Megan
“Life is far too important a thing ever to talk seriously about.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today’s Sell Day: 15
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.
There are several components that have brought Foster’s to where it is today, including some that could have been avoided and others that could not. Foster’s admitted it paid too much for Southcorp and Beringer in the past, but has also suffered from a difficult Australian wine industry (including gluts and droughts in the past several years), the slowing U.S. economy and the strong Aussie dollar.
O’Hoy, 53, announced his resignation last month (June 10) and officially stepped down from his role as ceo today after 33 years with the company. Before replacing Ted Kunkel in 2004, O'Hoy ran the Australian brewing business and was chief financial officer.
"Trevor has led Foster's through a period of significant structural and business change since his appointment as CEO in 2004, including the acquisition of Southcorp, the rationalisation of the Company's manufacturing and logistics footprint and the divestment of non-core assets,” said Crawford.
"We again thank Trevor for his significant contribution throughout his 33 years with Foster's and wish him well in his future endeavours," he continued.
Johnston, who has been a director since September 2007, is a former executive with Unilever Plc and Cadbury Plc. He retired as Cadbury's head of global confectionary in 2000 after almost 20 years with the company. The press release says he will “maintain senior management focus and energise the team to drive day-to-day business performance across product categories and global businesses” at Foster’s.
The company says it continues to expect that the wine review and search for a new ceo will be concluded during the first half of fiscal 2009. This means Johnston, 61, could be chief for about four months.
The Age reports that Johnston roughly makes a base of $140,000 as a director and will likely receive a substantial raise with his temporary promotion. O’Hoy earned about $1.37 million of base pay in the 2007 financial year, plus nearly $500,000 in bonuses.
DIAGEO’S STOCK UNDER-RATED
The Wall Street Journal’s Neil Martin featured a story on “trading up” in the alcohol biz, particularly focused on Diageo. He says that “fears on Wall Street that a sluggish U.S. economy and rising global costs of raw materials like grains, wood and glass, will hurt world-wide sales and earnings this year and near term, especially in the U.S. which accounts for 33% of Diageo's net sales and 39% of operating profits” are keeping Diageo’s shares down on the New York Stock Exchange.
However, Diageo and some analysts say the frenzy is unwarranted because consumers are continuing to trade up.
"U.S. sales have come off a bit, but they haven't fallen off a cliff," said Diageo's ceo, Paul Walsh.
"Whatever the state of the global economy, it's not about to derail the world-wide trend toward more premium brands -- especially in the developing world, where economies are creating more affluent social classes with Western tastes for premium spirits, beers and wines," he continued.
Says Bank of America Securities analyst Bryan Spillane: "We believe these concerns are overblown."
Bryan believes Pernod is trading at an undeserved premium. He rates Diageo’s stock a “buy” and projects the shares will be trading more than 30% higher within a year. He also predicts operating profit will increase 9% and 7.5% to 8% in 2009.
KUNDE ESTATE & WINERY FOUNDER DIES
Arthur "Bob" Kunde, co-founder of Kunde Estate & Winery in the heart of Sonoma, died Friday afternoon at the age of 80. His death was the result of surgery complications following a bad fall last Sunday.
Kunde founded the winery in 1990 with his brother, Fred, making the transition from grape growers to vintners, reports the Press Democrat. He was retired at the time of his death but “was still very much involved in the business.”
In addition to his brother Rich and his three children, Kunde is survived by his wife of 55 years, Leslie, and six grandchildren.
A celebration of Kunde’s life will be held Friday at Kunde Estate Winery in Kenwood. Friends and family are invited to attend the 4 p.m. celebration at the winery, located at 9825 Sonoma Highway. Inurnment is private.
Memorial contributions may be made in Kunde’s name to either the 4H Foundation of Sonoma County, PO Box 1283, Rohnert Park, CA, 94927, or, to the Kenwood Firemen’s Association, PO Box 249, Kenwood, CA, 95452.
KIM CRAWFORD SELECTED AS GLOBAL PRIORITY BRAND
Kim Crawford was selected as a Global Priority Brand by owner Constellation Wines, a status awarded to four brands from their global portfolio, the company reports.
Announcing the news, Constellation NZ CEO Joe Stanton said "This is great news for Constellation NZ and means we are ready and resourced to take what is already a successful brand to the next level."
"But the great majority of wine drinkers off-shore are still yet to taste a New Zealand wine. To have the global reach of Constellation focused on the Kim Crawford brand means we are poised to take advantage of that opportunity. An opportunity that began with Sauvignon Blanc but we are able to extend now into other varieties like Pinot Gris, Pinto Noir and Merlot."
Following the acquisition of Kim Crawford Wines by Constellation NZ, Kim Crawford was contracted to the company until February of this year. Kim left to carry on the future of the brand that he co-founded 11 years ago with Erica Crawford, who remains involved as senior vp global sales and marketing for Constellation NZ.
WSD BRIEFS:
SOBIESKI VODKA REACHES 200,000 CASE MARK in the U.S. in less than 12months since launching in 2007 with its “Truth in Vodka” marketing campaign. “There is no question that Sobieski is poised to reach its stated goal of 1 million cases in sales in five years,” said Chester Brandes, ceo of Imperial Brands, Inc., importer of Sobieski Vodka.
THE EDRINGTON GROUP LAUNCHES FROZEN SCOTCH. The Edrington Group is introducing “The Snow Grouse,” an extension of The Famous Grouse brand that is designed to be stored in the freezer. It will be distributed by Maxxium Global Travel Retail as a travel-retail exclusive for six months before a wider international roll out. It retails at $31.64.
Until tomorrow, Megan
“Life is far too important a thing ever to talk seriously about.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today’s Sell Day: 15
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 2:20 PM
<< Home