Diageo Increases Foothold in China
Diageo said yesterday it has acquired an additional 6% stake in Sichuan Chengdu Quanxing Group Co., Ltd. ("Quanxing") increasing its ownership in the business to 49%. This investment also increases Diageo’s indirect interest in Sichuan Shui Jing Fang Co., Ltd., a leading super premium Chinese white spirits company listed on the Shanghai Stock Exchange.
Diageo first acquired a 43% stake in Quanxing in February 2007 and said it “continues to be pleased with the performance and the prospects for the business.”
"This increase in our strategic shareholding underlines the strength of our partnership with Quanxing, our belief in the strong prospects for the Chinese white spirits category and our increasing commitment to Sichuan and to China as an excellent place to do business," said Paul Walsh, Diageo ceo.
Diageo’s increase in ownership is just another example of spirits and beer companies expanding in emerging markets. Sales from India, China, Russia and others are helping make up for slower growth in the U.S., particularly while the economy is in the dumps.
WILL BOTTLE SHOCK HELP THE INDUSTRY?
The wine world is buzzing over the release of “Bottle Shock” next Wednesday, the movie based on the 1976 “Judgment of Paris” wine tasting that helped make California famous. The movie stars Alan Rickman and Bill Pullman. Another movie based on George Taber’s book Judgment of Paris is also under production. To read some background, click here.
So far, rottentomatoes.com gives Bottle Shock a rating of 58%, but not many critics have reviewed the film yet. One review said: “Rocky for wine aficionados.”
USA Today even featured an article on the movie.
“...A new and different set of potentially surprising judgments plays out every year at the major international wine competitions staged in this country. The difference is that instead of ‘California vs. the Old World,’ the compelling scenario now is ‘which up-and-coming state will show that some of its wines can stand alongside those from the West Coast?’” said the article. Interesting.
Another big question in everyone’s minds: is Bottle Shock the next Sideways? It’s a matter of opinion.
“...‘Bottle Shock’ celebrates the beauty of the business from a behind-the-scenes perspective in the same way 2004's "Sideways" captured amateurs' enthusiasm for wine. And just as ‘Sideways’ put Santa Barbara County on the map as a winemaking region, the panoramic helicopter shots of rolling vineyards in ‘Bottle Shock’ no doubt will provide a further boon to Napa tourism and could well make Chateau Montelena a household name,” according to an article in the Washington Post last month.
UTAH STRIVING TO LOOSEN LIQUOR LAWS
Utah residents are now allowed to purchase spirits and beer directly from distilleries and breweries. The Utah Alcoholic Beverage Control Commission approved the rule change earlier this week. The so-called Type 5 package license affects Salt Lake Brewing Co., Utah Brewers Cooperative and High West Distillery, all located in Salt Lake City, according to local reports.
Until now, only Utah wineries were allowed to sell their products on site under a bill passed by the Utah Legislature in 1991.
The new ruling is part of a larger effort to loosen Utah’s strict alcohol laws. Gov. Jon Huntsman Jr. is leading the charge to overthrow private clubs. Proposed legislation would basically turn private clubs into public bars. Proponents are also working to do away with glass partitions, or Zion Curtains, that separate diners from alcoholic beverages in restaurants.
Reportedly, Mothers Against Drunk Driving is pushing the idea of free, two-week membership cards for tourists in effort to appease hospitality leaders. Utah residents would still need to be members of a club to order a cocktail.
ASCENTIA MAKES ITS MARK IN SONOMA
An interesting article in The Press Democrat highlights wine startup Ascentia Wine Estate’s dedication in rebuilding its recently acquired brands from Constellation. To put it mildly, Sonoma’s wine industry is thrilled that the wineries are back in local hands as seen in the company’s “pulled up by the bootstraps” mentality.
“Jim DeBonis succeeded in pulling together a complex deal to buy five wineries for $234 million from Constellation Brands in June,” says reporter Kevin McCallum. “But seven weeks after the formation of DeBonis' Ascentia Wine Estates, Sonoma County's newest wine company remains a chaotic work in progress.”
Recall that earlier this summer Constellation sold all but two of the wine brands (Clos du Bois and Wild Horse) it had acquired from Beam Wine Estates in December for $885 million.
DeBonis, former coo at Beam, took it upon himself to purchase the remaining Sonoma wineries to “rescue them from the ‘corporate shell game.’” The new company is made up of “passionate people forgoing the stability of corporate life to take a risk on a new venture.”
NEW DISTILLERY LAUNCHES IN FINGER LAKES
A new distillery is coming to town in The Finger Lakes region of New York. In late April, construction started on a new micro-distillery, Finger Lakes Distilling LLC, located on the east side of Seneca Lake. It’s the brainchild of Brian McKenzie, a 30 year-old former banker from Elmira, NY, and looking to capitalize on two trends: the burgeoning wine tourism in our area and growth in premium spirit sales nationally. It is the only stand-along distillery in the Finger Lakes and will use local grapes to manufacture brandies and a premium vodka.
McKenzie is applying for a NYS Farm Distillery license which will allow the business to offer product tastings and retail sales onsite. As part of the license, the distillery will be restricted to sourcing from local farmers in New York State for its production.
Thomas Earl McKenzie, no relation to Brian, will be Master Distiller for Finger Lakes Distilling.
The building is designed to look like an old Scottish whisky distillery, complete with exterior finishes, a pagoda roof, said Brian. He anticipates being open for production in late fall and hopes to be ready to accommodate visitors soon after.
WSD BRIEFS:
THE U.S. ECONOMY TOOK ITS TOLL ON REMY COINTREAU’S 2008 fiscal earnings, in addition to extra costs in setting up its own distribution system before leaving Maxxium. Melissa Earlam of UBS says, “Remy has more exposure to US spirits than Diageo, Pernod and Campari... Remy also has greater exposure to the US on-trade, which has been cyclically weak. The US Cognac category is c50% on-trade (total market is c25%).” To read our coverage of Remy’s results earlier this week, click here.
DISCUS LAUNCHED a new website, ProhibitionRepeal.com, highlighting the history and legacy of Prohibition earlier this week. The website includes historical facts, photos, calendars, blog and news update. It also highlights “the Legacies of Prohibition, such as Sunday Blue Law liquor sales bans that continue to burden consumer convenience, small businesses and state and local economies, and a history of industry responsibility efforts.”
Until Monday, Megan
“One of the indictments of civilizations is that happiness and intelligence are so rarely found in the same person.”
William Feather
--------- Sell Day Calendar ----------
Today’s Sell Day: 23
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.
Diageo first acquired a 43% stake in Quanxing in February 2007 and said it “continues to be pleased with the performance and the prospects for the business.”
"This increase in our strategic shareholding underlines the strength of our partnership with Quanxing, our belief in the strong prospects for the Chinese white spirits category and our increasing commitment to Sichuan and to China as an excellent place to do business," said Paul Walsh, Diageo ceo.
Diageo’s increase in ownership is just another example of spirits and beer companies expanding in emerging markets. Sales from India, China, Russia and others are helping make up for slower growth in the U.S., particularly while the economy is in the dumps.
WILL BOTTLE SHOCK HELP THE INDUSTRY?
The wine world is buzzing over the release of “Bottle Shock” next Wednesday, the movie based on the 1976 “Judgment of Paris” wine tasting that helped make California famous. The movie stars Alan Rickman and Bill Pullman. Another movie based on George Taber’s book Judgment of Paris is also under production. To read some background, click here.
So far, rottentomatoes.com gives Bottle Shock a rating of 58%, but not many critics have reviewed the film yet. One review said: “Rocky for wine aficionados.”
USA Today even featured an article on the movie.
“...A new and different set of potentially surprising judgments plays out every year at the major international wine competitions staged in this country. The difference is that instead of ‘California vs. the Old World,’ the compelling scenario now is ‘which up-and-coming state will show that some of its wines can stand alongside those from the West Coast?’” said the article. Interesting.
Another big question in everyone’s minds: is Bottle Shock the next Sideways? It’s a matter of opinion.
“...‘Bottle Shock’ celebrates the beauty of the business from a behind-the-scenes perspective in the same way 2004's "Sideways" captured amateurs' enthusiasm for wine. And just as ‘Sideways’ put Santa Barbara County on the map as a winemaking region, the panoramic helicopter shots of rolling vineyards in ‘Bottle Shock’ no doubt will provide a further boon to Napa tourism and could well make Chateau Montelena a household name,” according to an article in the Washington Post last month.
UTAH STRIVING TO LOOSEN LIQUOR LAWS
Utah residents are now allowed to purchase spirits and beer directly from distilleries and breweries. The Utah Alcoholic Beverage Control Commission approved the rule change earlier this week. The so-called Type 5 package license affects Salt Lake Brewing Co., Utah Brewers Cooperative and High West Distillery, all located in Salt Lake City, according to local reports.
Until now, only Utah wineries were allowed to sell their products on site under a bill passed by the Utah Legislature in 1991.
The new ruling is part of a larger effort to loosen Utah’s strict alcohol laws. Gov. Jon Huntsman Jr. is leading the charge to overthrow private clubs. Proposed legislation would basically turn private clubs into public bars. Proponents are also working to do away with glass partitions, or Zion Curtains, that separate diners from alcoholic beverages in restaurants.
Reportedly, Mothers Against Drunk Driving is pushing the idea of free, two-week membership cards for tourists in effort to appease hospitality leaders. Utah residents would still need to be members of a club to order a cocktail.
ASCENTIA MAKES ITS MARK IN SONOMA
An interesting article in The Press Democrat highlights wine startup Ascentia Wine Estate’s dedication in rebuilding its recently acquired brands from Constellation. To put it mildly, Sonoma’s wine industry is thrilled that the wineries are back in local hands as seen in the company’s “pulled up by the bootstraps” mentality.
“Jim DeBonis succeeded in pulling together a complex deal to buy five wineries for $234 million from Constellation Brands in June,” says reporter Kevin McCallum. “But seven weeks after the formation of DeBonis' Ascentia Wine Estates, Sonoma County's newest wine company remains a chaotic work in progress.”
Recall that earlier this summer Constellation sold all but two of the wine brands (Clos du Bois and Wild Horse) it had acquired from Beam Wine Estates in December for $885 million.
DeBonis, former coo at Beam, took it upon himself to purchase the remaining Sonoma wineries to “rescue them from the ‘corporate shell game.’” The new company is made up of “passionate people forgoing the stability of corporate life to take a risk on a new venture.”
NEW DISTILLERY LAUNCHES IN FINGER LAKES
A new distillery is coming to town in The Finger Lakes region of New York. In late April, construction started on a new micro-distillery, Finger Lakes Distilling LLC, located on the east side of Seneca Lake. It’s the brainchild of Brian McKenzie, a 30 year-old former banker from Elmira, NY, and looking to capitalize on two trends: the burgeoning wine tourism in our area and growth in premium spirit sales nationally. It is the only stand-along distillery in the Finger Lakes and will use local grapes to manufacture brandies and a premium vodka.
McKenzie is applying for a NYS Farm Distillery license which will allow the business to offer product tastings and retail sales onsite. As part of the license, the distillery will be restricted to sourcing from local farmers in New York State for its production.
Thomas Earl McKenzie, no relation to Brian, will be Master Distiller for Finger Lakes Distilling.
The building is designed to look like an old Scottish whisky distillery, complete with exterior finishes, a pagoda roof, said Brian. He anticipates being open for production in late fall and hopes to be ready to accommodate visitors soon after.
WSD BRIEFS:
THE U.S. ECONOMY TOOK ITS TOLL ON REMY COINTREAU’S 2008 fiscal earnings, in addition to extra costs in setting up its own distribution system before leaving Maxxium. Melissa Earlam of UBS says, “Remy has more exposure to US spirits than Diageo, Pernod and Campari... Remy also has greater exposure to the US on-trade, which has been cyclically weak. The US Cognac category is c50% on-trade (total market is c25%).” To read our coverage of Remy’s results earlier this week, click here.
DISCUS LAUNCHED a new website, ProhibitionRepeal.com, highlighting the history and legacy of Prohibition earlier this week. The website includes historical facts, photos, calendars, blog and news update. It also highlights “the Legacies of Prohibition, such as Sunday Blue Law liquor sales bans that continue to burden consumer convenience, small businesses and state and local economies, and a history of industry responsibility efforts.”
Until Monday, Megan
“One of the indictments of civilizations is that happiness and intelligence are so rarely found in the same person.”
William Feather
--------- Sell Day Calendar ----------
Today’s Sell Day: 23
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 12:07 PM
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