Stoli Rumors Resurface
Reports surfaced yesterday that Frank Pesce International Group put a $1 billion bid on SPI Group’s Stoli vodka. Shareholder Andrey Skurikhin (who WSD interviewed in June) said the offer was too low and Stoli was “no longer on the market,” although he asked how much Frank Pesce would be willing to pay, reports the UK-based Daily Telegraph. Pesce said the opening bid was based only on US sales figures. The consortium also claims to have the funds in place to finance the acquisition.
The Daily Telegraph mentioned WSD’s interview with Skurikhin earlier this summer where he told us that SPI was no longer looking for a partner for Stoli.
However, the newspaper says “bankers suggest a sale is on the cards and SPI is jockeying to force a better price out of a potential buyer.”
There is also the issue with the Russian government. Unless SPI is able to resolve its differences, buyers may be reluctant to bid on Stoli.
Skurikhin told us that the Russian litigation “must be finished in order not to distract from possible buyers of Stoli and not to be a factor when talking about the value of the brand... Chances to win in the Russian litigation are very, very high according to the opinion of our lawyers.”
DOES INBEV HAVE EYES FOR DIAGEO?
Who will be InBev’s next acquisition target? After surprising the beer industry last month and aggressively striking a deal with Anheuser-Busch, many in the industry believe InBev is still not satisfied. An article in the Wall Street Journal asserts InBev may have its eyes on Diageo, the world’s largest spirits company.
“InBev's aggressiveness in nabbing Bud surprised the entire booze industry -- and has given the impression that the Leuven, Belgium, company will go after anything not latched down by family control or antitrust problems. Diageo, which brews Guinness along with such distillations as Smirnoff and Johnnie Walker, offers neither obstacle.”
WSJ points out that Diageo is similar to A-B. It has a $44 billion market value, a big free float, no poison pill and is primarily focused on one drinks category – premium spirits. But while InBev is paying down debt for A-B, Diageo has time to make a pre-emptive move to prevent it from being swallowed. One possibility is to acquire Heineken, although the family may be reluctant to give up control.
“Still, if there is anything Busch family members' struggle to keep Anheuser independent shows, it is that long-held assumptions about family fortresses can crumble rapidly,” the article pointed out.
WHAT’S NEXT FOR BACARDI
Yesterday it was announced that Bacardi ceo Andreas Gembler is retiring in September and will be replaced by former Colgate exec Seamus McBride, who has spent 25 years at the company. He also spent four years as the marketing director for Bass beer.
The move comes after Bacardi generated $5.5 billion in sales last year, which was the highest in Bacardi’s history, reports Brandweek. However, Bacardi rum’s global sales were off 1% and as a result lost its spot as top selling spirits brand in the U.S. to Smirnoff per Impact database.
Grey Goose made the U.S. top-10 for the first time in 2008 and grew 18% globally. Bacardi also continued its deal to distribute Disaronno Originale amaretto liqueur for an undisclosed sum of money. Brandweek said Bacardi spent $29.3 million in media for its eponymous rum while Grey Goose spent $20 million in ads claiming it is “The World’s Best Tasting Vodka,” according to Nielsen Monitor-Plus. Overall, the company spent $74 million in media in the U.S. in 2007.
So what’s next for Bacardi under this new leadership? Send us your opinions at megan@beernet.com. All emails are kept confidential.
ITALIAN GOVERNMENT GRUDGINGLY APPROVES BOXED WINE
Italians are starting to embrace boxed wine, if not whole-heartedly. Italy’s Agriculture Ministry said that some fine Italian wines can be sold in boxes as long as they have the government’s stamp of approval that quality is in tact. The ministry is offering its D.O.C. designation for some boxed wines, but D.O.C.G. is reserved for bottles along.
The NY Times featured an article on the phenomenon, claiming the economy is a big reason winemakers are more willing to try boxes versus bottles.
“There is little doubt among wine professionals that the recession has given the bag-in-the-box a boost,” says the article.
In the past 15 years boxed wines have become more acceptable in the industry although the stigma hasn’t completely disappeared in the U.S. and elsewhere.
WSD BRIEFS:
FOSTER’S GROUP was fined US$1.037 million (A$1.125 million) for exposing an employee to unsafe work conditions that resulted in his death. The machine he was operating resided in a “noisy area with no warning sounds or lights to alert workers," the judge ruled. Foster’s pleaded guilty to one count of failure to provide a safe workplace and one count of failure to provide adequate training and supervision.
CHARLES KRUG WINERY HAS NAMED David Galzignato winemaker after he served in that capacity from 2003 to 2006. During his earlier tenure at Charles Krug, David helped revamp Charles Krug’s wine portfolio and created a new line of Peter Mondavi Family vineyard-designated wines. In addition, the Peter Mondavi family says it is now focused on organic and sustainable viticulture in all of its prime Napa Valley vineyards.
JUAN-DOMINGO BECKMANN IS LAUNCHING MAESTRO DOBEL, the first-ever diamond tequila, according to a statement. Maestro was produced through proprietary blending and filtration technique. Due to extremely limited quantities, said the company, Maestro Dobel will be available in August 2008 at the “finest evening establishments” in Los Angeles, Chicago, Milwaukee and Atlanta as well as online where legal. It has a suggested retail price of $74.99.
Until tomorrow, Megan
“I have enough money to last me the rest of my life, unless I buy something.”
Jackie Mason
--------- Sell Day Calendar ----------
Today’s Sell Day: 3
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.
The Daily Telegraph mentioned WSD’s interview with Skurikhin earlier this summer where he told us that SPI was no longer looking for a partner for Stoli.
However, the newspaper says “bankers suggest a sale is on the cards and SPI is jockeying to force a better price out of a potential buyer.”
There is also the issue with the Russian government. Unless SPI is able to resolve its differences, buyers may be reluctant to bid on Stoli.
Skurikhin told us that the Russian litigation “must be finished in order not to distract from possible buyers of Stoli and not to be a factor when talking about the value of the brand... Chances to win in the Russian litigation are very, very high according to the opinion of our lawyers.”
DOES INBEV HAVE EYES FOR DIAGEO?
Who will be InBev’s next acquisition target? After surprising the beer industry last month and aggressively striking a deal with Anheuser-Busch, many in the industry believe InBev is still not satisfied. An article in the Wall Street Journal asserts InBev may have its eyes on Diageo, the world’s largest spirits company.
“InBev's aggressiveness in nabbing Bud surprised the entire booze industry -- and has given the impression that the Leuven, Belgium, company will go after anything not latched down by family control or antitrust problems. Diageo, which brews Guinness along with such distillations as Smirnoff and Johnnie Walker, offers neither obstacle.”
WSJ points out that Diageo is similar to A-B. It has a $44 billion market value, a big free float, no poison pill and is primarily focused on one drinks category – premium spirits. But while InBev is paying down debt for A-B, Diageo has time to make a pre-emptive move to prevent it from being swallowed. One possibility is to acquire Heineken, although the family may be reluctant to give up control.
“Still, if there is anything Busch family members' struggle to keep Anheuser independent shows, it is that long-held assumptions about family fortresses can crumble rapidly,” the article pointed out.
WHAT’S NEXT FOR BACARDI
Yesterday it was announced that Bacardi ceo Andreas Gembler is retiring in September and will be replaced by former Colgate exec Seamus McBride, who has spent 25 years at the company. He also spent four years as the marketing director for Bass beer.
The move comes after Bacardi generated $5.5 billion in sales last year, which was the highest in Bacardi’s history, reports Brandweek. However, Bacardi rum’s global sales were off 1% and as a result lost its spot as top selling spirits brand in the U.S. to Smirnoff per Impact database.
Grey Goose made the U.S. top-10 for the first time in 2008 and grew 18% globally. Bacardi also continued its deal to distribute Disaronno Originale amaretto liqueur for an undisclosed sum of money. Brandweek said Bacardi spent $29.3 million in media for its eponymous rum while Grey Goose spent $20 million in ads claiming it is “The World’s Best Tasting Vodka,” according to Nielsen Monitor-Plus. Overall, the company spent $74 million in media in the U.S. in 2007.
So what’s next for Bacardi under this new leadership? Send us your opinions at megan@beernet.com. All emails are kept confidential.
ITALIAN GOVERNMENT GRUDGINGLY APPROVES BOXED WINE
Italians are starting to embrace boxed wine, if not whole-heartedly. Italy’s Agriculture Ministry said that some fine Italian wines can be sold in boxes as long as they have the government’s stamp of approval that quality is in tact. The ministry is offering its D.O.C. designation for some boxed wines, but D.O.C.G. is reserved for bottles along.
The NY Times featured an article on the phenomenon, claiming the economy is a big reason winemakers are more willing to try boxes versus bottles.
“There is little doubt among wine professionals that the recession has given the bag-in-the-box a boost,” says the article.
In the past 15 years boxed wines have become more acceptable in the industry although the stigma hasn’t completely disappeared in the U.S. and elsewhere.
WSD BRIEFS:
FOSTER’S GROUP was fined US$1.037 million (A$1.125 million) for exposing an employee to unsafe work conditions that resulted in his death. The machine he was operating resided in a “noisy area with no warning sounds or lights to alert workers," the judge ruled. Foster’s pleaded guilty to one count of failure to provide a safe workplace and one count of failure to provide adequate training and supervision.
CHARLES KRUG WINERY HAS NAMED David Galzignato winemaker after he served in that capacity from 2003 to 2006. During his earlier tenure at Charles Krug, David helped revamp Charles Krug’s wine portfolio and created a new line of Peter Mondavi Family vineyard-designated wines. In addition, the Peter Mondavi family says it is now focused on organic and sustainable viticulture in all of its prime Napa Valley vineyards.
JUAN-DOMINGO BECKMANN IS LAUNCHING MAESTRO DOBEL, the first-ever diamond tequila, according to a statement. Maestro was produced through proprietary blending and filtration technique. Due to extremely limited quantities, said the company, Maestro Dobel will be available in August 2008 at the “finest evening establishments” in Los Angeles, Chicago, Milwaukee and Atlanta as well as online where legal. It has a suggested retail price of $74.99.
Until tomorrow, Megan
“I have enough money to last me the rest of my life, unless I buy something.”
Jackie Mason
--------- Sell Day Calendar ----------
Today’s Sell Day: 3
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 12:52 PM
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