Absolut Names Executive Team
Pernod Ricard said today it has renamed its newly acquired Vin & Sprit Absolut Spirits “The Absolut Company.” As previously announced, it will be headed by the current president of V&S Absolut, Ketil Eriksen, who is slated to become ceo. He will be based in the new company’s global head office in Stockholm.
Matthias Aeppli will continue as the vp of global marketing at Absolut, while Kicki Alm will become vp of human resources. Krister Asplund will serve as vp of manufacturing and Andreas Berggren will take the roll of vp of commercial.
Paula Eriksson will continue as vice president of corporate communications. Stéphane Longuet is joining Absolut as vp of finance from Pernod Ricard Italia, where she recently served as CFO. Mikael Spångberg will take the roll of vp of legal affairs, continuing his prior legal responsibilities at V&S.
Most of these appointed executives either carried a similar title at V&S or worked at the company prior to Pernod’s acquisition.
Recall that Pernod split V&S’s operations in two separate companies, naming them The Absolut Company and Pernod Ricard Nordic. Absolut Vodka’s production will remain in Sweden.
FOSTER’S LIKELY TO DEMERGE OR SALE WINE ASSETS
Since Foster’s announced a review of its wine business in June, analysts have speculated that the company will likely demerge its beer and wine unit, and sale at least some – if not all – of its wine assets. An analyst at Goldman Sachs JBWere backed up the sentiment.
“We believe a demerger or partial sale of FGL’s wine business is a likely outcome from its wine review. Such a process would bring into focus sum-of-the-parts valuations,” said Goldman Sachs JBWere in a research note sourced by TheShout.
A spokesperson declined to discuss any potential outcomes while its strategic review is underway.
"As we've said since launching the review, all options to improve our wine business are being considered. It's premature to draw any conclusions while the review is underway," the spokesperson said.
Recall that in June Foster’s shook up the wine world when it announced CEO Trevor O’Hoy’s departure and a strategic review of its troubled wine business led by Chairman David Crawford. Also, Foster’s issued a $700 million write-down and transferred $600 million in goodwill to its beer operations.
In a letter to shareholders last month, Crawford said: “We own a great company. The beer division is delivering consistently strong financial returns and, while financial returns from our wine assets are not acceptable, we own leading international brands with excellent potential.”
He partially blamed economic conditions and the strength of the Australian dollar but has also admitted in the past that Foster’s paid too much for Beringer ($2.6 billion) and Southcorp ($3.2 billion).
To read more background, click here.
DIAGEO COULD SEE A TOUGHER 2009
Overall, Diageo seems to be in a good position but an uncertain economic future could eventually have a deeper impact. Analyst Melissa Earlam of UBS believes management will “comfortably meet” the 2008 fiscal guidance, but the 2009 fiscal year “will be key.”
UBS say pricing remains “very favorable,” especially for Scotch. Also, emerging markets will continue to outperform mature markets and currency will benefit Diageo’s reported estimates. Problems will stem from the increasing US unemployment (up 6%), weak macro data for Spain, UK and Ireland, and the Australian ready-to-drink excise increase.
The calendar year to date in the U.S. spirits market has grown by 2.58% in volume, while Diageo grew 2.11%. The slight loss in market share is a function of more aggressive price increases, says Melissa. On average, Diageo has taken prices up by 5% for 60-70% of its portfolio.
Weaker on-premise sales, higher competition in the on-premise and the poor economy pose risks for Diageo in the U.S.
“So far the spirits premiumization trend has proven resilient, but we await company comments how this trend will fare as unemployment rates increase (current unemployment is 5.7% compared to UBS estimates of 6.4% for 2009E),” noted Melissa.
The combination of rising unemployment and food and energy inflation will test consumer spending on spirits. UBS forecasts spirits market volume growth of 1.7% and sales up 4.5% in fiscal 2008. However, it believes fiscal 2009 “will see a further slowdown in market sales growth.”
“We believe Diageo should take value share given (1) its comprehensive spirits category exposure, (2) its dedicated salesforce through Next Generation Growth,” Melissa continued.
EOS WINERY CONVERTS TO SOLAR POWER
EOS Estate Winery in Paso Robles is on the track to becoming the largest winery in the Paso Robles AVA to convert entirely to solar power. According to an article in local paper Paso Robles Press, the winery’s new owner Jeff Hopmayer says he strongly believes in producing eco-friendly wines.
The $3.8 million project calls for installation of two-plus acres of ground mounted solar tracking arrays to provide the electrical power for its winery and tasting room. Additional roof mounted solar arrays will provide all the hot water needs. It is also the first winery in California to use an energy-efficient system that actively tracks the sun throughout the day, which will increase the solar system’s production.
The winery anticipates 100% of the wastewater that exits the building will be able to be re-used and sprayed on the vines.
Hopmayer estimated that the winery produces about 230,000 cases per year. Only a year ago when he purchased it, the winery was producing around 80,000 cases annually, he said.
EOS contracted with Sacramento-based SunTechnics for the solar installation.
In addition, the winery is renovating its facilities with a new laboratory, plasma TVs, wireless internet, interactive tour technology, handicapped access, an all-new bottling room, conference room with a community wine spitting mechanism running through the middle of the table and updated office spaces.
“It’ a very smart building, and it’s a green building,” Hopmayer said.
WSD BRIEFS:
ITALY IS EXPECTED TO PRODUCE more wine than France for the first time in this century, making it the leading European wine producer in 2008. Good weather has helped Italy harvest an estimated 47 million hectoliters, while bad weather in France has resulted in the smallest output since 2000, says France’s Agriculture Ministry.
ALAIN BARBET, chairman and ceo of Pernod Americas recently joined the board of directors of Canadian marketer and distributor Corby Distilleries, effective July 1. Claude Boulay, outside legal counsel of Pernod Ricard Americas, also joined the board.
Until Monday, Megan
“My pessimism extends to the point of even suspecting the sincerity of the pessimists.”
Jean Rostand
--------- Sell Day Calendar ----------
Today’s Sell Day: 16
Sell days this month: 21
Sell days this month last year: 23
This month ends on a: Fri
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
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.
Matthias Aeppli will continue as the vp of global marketing at Absolut, while Kicki Alm will become vp of human resources. Krister Asplund will serve as vp of manufacturing and Andreas Berggren will take the roll of vp of commercial.
Paula Eriksson will continue as vice president of corporate communications. Stéphane Longuet is joining Absolut as vp of finance from Pernod Ricard Italia, where she recently served as CFO. Mikael Spångberg will take the roll of vp of legal affairs, continuing his prior legal responsibilities at V&S.
Most of these appointed executives either carried a similar title at V&S or worked at the company prior to Pernod’s acquisition.
Recall that Pernod split V&S’s operations in two separate companies, naming them The Absolut Company and Pernod Ricard Nordic. Absolut Vodka’s production will remain in Sweden.
FOSTER’S LIKELY TO DEMERGE OR SALE WINE ASSETS
Since Foster’s announced a review of its wine business in June, analysts have speculated that the company will likely demerge its beer and wine unit, and sale at least some – if not all – of its wine assets. An analyst at Goldman Sachs JBWere backed up the sentiment.
“We believe a demerger or partial sale of FGL’s wine business is a likely outcome from its wine review. Such a process would bring into focus sum-of-the-parts valuations,” said Goldman Sachs JBWere in a research note sourced by TheShout.
A spokesperson declined to discuss any potential outcomes while its strategic review is underway.
"As we've said since launching the review, all options to improve our wine business are being considered. It's premature to draw any conclusions while the review is underway," the spokesperson said.
Recall that in June Foster’s shook up the wine world when it announced CEO Trevor O’Hoy’s departure and a strategic review of its troubled wine business led by Chairman David Crawford. Also, Foster’s issued a $700 million write-down and transferred $600 million in goodwill to its beer operations.
In a letter to shareholders last month, Crawford said: “We own a great company. The beer division is delivering consistently strong financial returns and, while financial returns from our wine assets are not acceptable, we own leading international brands with excellent potential.”
He partially blamed economic conditions and the strength of the Australian dollar but has also admitted in the past that Foster’s paid too much for Beringer ($2.6 billion) and Southcorp ($3.2 billion).
To read more background, click here.
DIAGEO COULD SEE A TOUGHER 2009
Overall, Diageo seems to be in a good position but an uncertain economic future could eventually have a deeper impact. Analyst Melissa Earlam of UBS believes management will “comfortably meet” the 2008 fiscal guidance, but the 2009 fiscal year “will be key.”
UBS say pricing remains “very favorable,” especially for Scotch. Also, emerging markets will continue to outperform mature markets and currency will benefit Diageo’s reported estimates. Problems will stem from the increasing US unemployment (up 6%), weak macro data for Spain, UK and Ireland, and the Australian ready-to-drink excise increase.
The calendar year to date in the U.S. spirits market has grown by 2.58% in volume, while Diageo grew 2.11%. The slight loss in market share is a function of more aggressive price increases, says Melissa. On average, Diageo has taken prices up by 5% for 60-70% of its portfolio.
Weaker on-premise sales, higher competition in the on-premise and the poor economy pose risks for Diageo in the U.S.
“So far the spirits premiumization trend has proven resilient, but we await company comments how this trend will fare as unemployment rates increase (current unemployment is 5.7% compared to UBS estimates of 6.4% for 2009E),” noted Melissa.
The combination of rising unemployment and food and energy inflation will test consumer spending on spirits. UBS forecasts spirits market volume growth of 1.7% and sales up 4.5% in fiscal 2008. However, it believes fiscal 2009 “will see a further slowdown in market sales growth.”
“We believe Diageo should take value share given (1) its comprehensive spirits category exposure, (2) its dedicated salesforce through Next Generation Growth,” Melissa continued.
EOS WINERY CONVERTS TO SOLAR POWER
EOS Estate Winery in Paso Robles is on the track to becoming the largest winery in the Paso Robles AVA to convert entirely to solar power. According to an article in local paper Paso Robles Press, the winery’s new owner Jeff Hopmayer says he strongly believes in producing eco-friendly wines.
The $3.8 million project calls for installation of two-plus acres of ground mounted solar tracking arrays to provide the electrical power for its winery and tasting room. Additional roof mounted solar arrays will provide all the hot water needs. It is also the first winery in California to use an energy-efficient system that actively tracks the sun throughout the day, which will increase the solar system’s production.
The winery anticipates 100% of the wastewater that exits the building will be able to be re-used and sprayed on the vines.
Hopmayer estimated that the winery produces about 230,000 cases per year. Only a year ago when he purchased it, the winery was producing around 80,000 cases annually, he said.
EOS contracted with Sacramento-based SunTechnics for the solar installation.
In addition, the winery is renovating its facilities with a new laboratory, plasma TVs, wireless internet, interactive tour technology, handicapped access, an all-new bottling room, conference room with a community wine spitting mechanism running through the middle of the table and updated office spaces.
“It’ a very smart building, and it’s a green building,” Hopmayer said.
WSD BRIEFS:
ITALY IS EXPECTED TO PRODUCE more wine than France for the first time in this century, making it the leading European wine producer in 2008. Good weather has helped Italy harvest an estimated 47 million hectoliters, while bad weather in France has resulted in the smallest output since 2000, says France’s Agriculture Ministry.
ALAIN BARBET, chairman and ceo of Pernod Americas recently joined the board of directors of Canadian marketer and distributor Corby Distilleries, effective July 1. Claude Boulay, outside legal counsel of Pernod Ricard Americas, also joined the board.
Until Monday, Megan
“My pessimism extends to the point of even suspecting the sincerity of the pessimists.”
Jean Rostand
--------- Sell Day Calendar ----------
Today’s Sell Day: 16
Sell days this month: 21
Sell days this month last year: 23
This month ends on a: Fri
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
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 11:50 AM
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