WIRTZ TO ACQUIRE GLAZER'S INTEREST IN JUDGE & DOLPH
Wirtz Beverage Group President Rocky Wirtz announced today that Wirtz has acquired Glazer's Distributors' interest in Judge & Dolph after a brief venture with Glazer's, said the company. The venture with Glazer's, which owned and operated Union Beverage of Illinois, began July 1, 2008.
So why the quick breakup? Rocky initiated talks after Glazer's announced its deal with Southern Wine & Spirits. "Though the venture with Glazer's was brief, it yielded great value including the addition of several new supplier lines," said Rocky. "Our strategy moving forward is to continue focused growth by leveraging our knowledge and experience with the resources necessary, to deliver innovation and efficiency for our supplier partners.....We recognize the economic pressures facing suppliers and the need to innovate and capitalize on competitive and demographic shifts in the marketplace. Our balance sheet is unrivalled by others in the industry and we are willing to make the necessary investments to deliver both here in Illinois and in our other markets nationwide." Terms of the deal were not disclosed.
CASTLE BRANDS CUTS A DEAL
Struggling spirits marketer Castle Brands, owners of Boru Vodka and Limoncello, today announced that it has entered into a purchase agreement with investors led by Dr. Phillip Frost, the owner of Pallini liqueurs, and Vector Group Ltd., to receive a much needed cash infusion of $15 million. Recall that the company had recently changed distributors in New York and Florida for its Goslings rum, and was in the midst of a large cost cutting program to stop its cash hemorrhaging. The company was losing money and previous press releases had hinted that a cash crisis was in the offing.
Under the terms of the purchase agreement, the company will issue 1.2 m shares of newly created Series A Convertible Preferred Stock for a price per share of $12.50. After stockholder approval, each outstanding share of Series A Preferred Stock will be automatically converted into 35.7143 shares of the Company's common stock.
Pending closing, one of the investors, Frost Gamma Investments Trust, will lend the company $2 million, which will be paid back upon closing. Part of the deal is that there will be management changes, and the company's nine directors have resigned (Keith A. Bellinger, Robert J. Flanagan, Colm Leen and Kevin P. Tighe; replaced by Dr. Frost, Glenn Halpryn, Richard J. Lampen and Micaela Pallini). The board has appointed new management to replace Donald Marsh, who had acted as the Company's President and Chief Operating Officer. Mr. Lampen was appointed to serve as the Company's interim President and Chief Executive Officer, and John Glover, the Company's Senior Vice President - Marketing, has been promoted to the position of Chief Operating Officer of US Operations. Mr. Lampen will remain Executive Vice President of Vector Group Ltd. and President and Chief Executive Officer of Ladenburg Thalmann Financial Services Inc.
Chairman and founder Mark Andrews, Chairman of the Board, stated, "This transaction will result in a significant capital infusion and the conversion of virtually all of our debt into equity. Together, these developments will put our company on much firmer footing, which will enable us to pursue our original vision of building our own premium brands, supporting our existing agency brands, pursuing new agency relationships and making brand acquisitions."
BEAM TO DISTRIBUTE FUNKIN MIXES IN U.S.
Beam Global Spirits & Wine announced last week a U.S. distribution deal with funkin, Ltd. a UK-based line of ready-to-pour, all-natural purees, syrups and cocktail mixes for bartenders. "funkin is delighted with the new distribution agreement and to sit alongside Beam Global's fantastic stable of brands. This is a great opportunity to couple high-quality products to meet growing and changing consumer demands," said Alex Carlton, founder and managing director of funkin. "Through our partnership with funkin, Beam Global will expand its range of cocktail solutions to offer bartenders great tasting, innovative drinks for their customers," stated Kelly Doss, senior director of marketing, Beam Global. "We know the U.S. market is hungry for all-natural products that can be easily incorporated into bar and restaurant menus. We see this partnership as a great opportunity to help our brands stand out from the competition with fresh fruit and natural ingredients."
TTB TAGS ADM IN ETHANOL SHENANIGANS
In an unusual development, the Tax and Trade Bureau (TTB) has fined bid agribusiness conglomerate Archer Daniels Midland a whopping $3 million dollars, or more accurately what is called an offer-in-compromise, to "resolve allegations of the Internal Revenue Code," says the TTB. It appears that ADM, which is an ethanol maker for fuel as well as a grain neutral ethanol manufacturer for beverage alcohol marketers, was misusing each. The TTB says that ADM used spirits "in the manufacture of products not for fuel use. In addition, ADM allegedly used undenatured spirits on its bonded premises in a manner not in compliance with the law and regulations." Denatured ethanol is basically grain spirits intended for fuel use which are given an additive so that they are undrinkable. Were the workers drinking the product, or using it in their cars? TTB doesn't say. But that's a mighty big fine.
MORE REASONS TO DRINK THE RED
A new study has found that an antioxidant component in red wine can decrease the risk of lung cancer. The study has been published in the October issue of Cancer Epidemiology, Biomarkers and Prevention, a journal of the American Association for Cancer Research. “An antioxidant component in red wine may be protective of lung cancer, particularly among smokers,” said Chun Chao, Ph.D., a research scientist at Kaiser Permanente Department of Research and Evaluation in Pasadena, California. To reach the conclusion, Chao analyzed data collected through the California Men’s Health Study, which linked clinical data from California’s health system with self-reported data from 84,170 men aged 45 to 69 years. Researchers obtained demographics and lifestyle data from surveys computed between 2000 and 2003, and identified 210 cases of lung cancer.
Researchers measured the effect of beer, red wine, white wine and liquor consumption on the risk of lung cancer. Adjustments were made for age, race/ethnicity, education, income, body mass index, history of chronic obstructive pulmonary disease or emphysema, and smoking history. Among the study participants, there was on average a two percent lower lung cancer risk associated with each glass of red wine consumed per month. The most substantial risk reduction was among smokers who drank one to two glasses of red wine per day. The researchers reported a 60% reduced lung cancer risk in these men.
Meanwhile, not to be outdone, white wine made from grape pulp, while it contains no resveratrol, can still protect against heart disease. Dr. Dipak Das, a molecular biologist at the University of Connecticut School of Medicine in Farmington, said, "the flesh of the grape can do the same job as the skin." He gave lab rats measured doses – roughly equivalent to one or two glasses a day – of red or white Italian wines, while others received comparable doses of different chemical ingredients thought to underlie the health benefits of wine, called polyphenols. n lab rats that suffered heart attacks, the animals that received wine or polyphenols experienced less heart damage, compared to rats fed water or straight liquor. Their blood pressure and aortic blood flow plummeted less drastically as well. olecular tests of heart cells suggest that white wine protects the cell's powerhouses – mitochondria. Damage to these structures caused by lack of oxygen and nutrients can send cells down one-way path to suicide, or apoptosis.
WSD BRIEFS:
DAN AKROYD'S Crystal Head vodka, which comes in a crystal head, is creating buzz on the Internet as Dan's video has gone viral. The vodka is contract distilled in Newfoundland and sold in a glass skull made in Europe.
THE FIRE THAT RAVAGED 300 acres in Napa Valley, threatening vineyards and a home, was finally contained on Monday. The fire was allegedly started by a car.
LVMH POST FIRST 9 MONTHS GROWTH. Despite the growing financial crisis, LVMH said last week that it is maintaining its target for a "tangible increase" in yearly results. It's wine and spirits division posted a 5% organic sales increase over the first nine months of the year.
THE GUYS AT Lehrman Beverage Law have started a blog to comment on the myriad new labels coming out of the TTB. Check it at http://www.bevlaw.com/bevlog/
Until tomorrow, Harry
(filling in for Megan)
“It is during our darkest moments that we must focus to see the light.”
-Aristotle Onassis
--------- Sell Day Calendar ----------
Today’s Sell Day: 9
Sell days this month: 23
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 – The Four Seasons, Austin, Texas – Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 – 2, 2009. Click here: http://tinyurl.com/beersummit
So why the quick breakup? Rocky initiated talks after Glazer's announced its deal with Southern Wine & Spirits. "Though the venture with Glazer's was brief, it yielded great value including the addition of several new supplier lines," said Rocky. "Our strategy moving forward is to continue focused growth by leveraging our knowledge and experience with the resources necessary, to deliver innovation and efficiency for our supplier partners.....We recognize the economic pressures facing suppliers and the need to innovate and capitalize on competitive and demographic shifts in the marketplace. Our balance sheet is unrivalled by others in the industry and we are willing to make the necessary investments to deliver both here in Illinois and in our other markets nationwide." Terms of the deal were not disclosed.
CASTLE BRANDS CUTS A DEAL
Struggling spirits marketer Castle Brands, owners of Boru Vodka and Limoncello, today announced that it has entered into a purchase agreement with investors led by Dr. Phillip Frost, the owner of Pallini liqueurs, and Vector Group Ltd., to receive a much needed cash infusion of $15 million. Recall that the company had recently changed distributors in New York and Florida for its Goslings rum, and was in the midst of a large cost cutting program to stop its cash hemorrhaging. The company was losing money and previous press releases had hinted that a cash crisis was in the offing.
Under the terms of the purchase agreement, the company will issue 1.2 m shares of newly created Series A Convertible Preferred Stock for a price per share of $12.50. After stockholder approval, each outstanding share of Series A Preferred Stock will be automatically converted into 35.7143 shares of the Company's common stock.
Pending closing, one of the investors, Frost Gamma Investments Trust, will lend the company $2 million, which will be paid back upon closing. Part of the deal is that there will be management changes, and the company's nine directors have resigned (Keith A. Bellinger, Robert J. Flanagan, Colm Leen and Kevin P. Tighe; replaced by Dr. Frost, Glenn Halpryn, Richard J. Lampen and Micaela Pallini). The board has appointed new management to replace Donald Marsh, who had acted as the Company's President and Chief Operating Officer. Mr. Lampen was appointed to serve as the Company's interim President and Chief Executive Officer, and John Glover, the Company's Senior Vice President - Marketing, has been promoted to the position of Chief Operating Officer of US Operations. Mr. Lampen will remain Executive Vice President of Vector Group Ltd. and President and Chief Executive Officer of Ladenburg Thalmann Financial Services Inc.
Chairman and founder Mark Andrews, Chairman of the Board, stated, "This transaction will result in a significant capital infusion and the conversion of virtually all of our debt into equity. Together, these developments will put our company on much firmer footing, which will enable us to pursue our original vision of building our own premium brands, supporting our existing agency brands, pursuing new agency relationships and making brand acquisitions."
BEAM TO DISTRIBUTE FUNKIN MIXES IN U.S.
Beam Global Spirits & Wine announced last week a U.S. distribution deal with funkin, Ltd. a UK-based line of ready-to-pour, all-natural purees, syrups and cocktail mixes for bartenders. "funkin is delighted with the new distribution agreement and to sit alongside Beam Global's fantastic stable of brands. This is a great opportunity to couple high-quality products to meet growing and changing consumer demands," said Alex Carlton, founder and managing director of funkin. "Through our partnership with funkin, Beam Global will expand its range of cocktail solutions to offer bartenders great tasting, innovative drinks for their customers," stated Kelly Doss, senior director of marketing, Beam Global. "We know the U.S. market is hungry for all-natural products that can be easily incorporated into bar and restaurant menus. We see this partnership as a great opportunity to help our brands stand out from the competition with fresh fruit and natural ingredients."
TTB TAGS ADM IN ETHANOL SHENANIGANS
In an unusual development, the Tax and Trade Bureau (TTB) has fined bid agribusiness conglomerate Archer Daniels Midland a whopping $3 million dollars, or more accurately what is called an offer-in-compromise, to "resolve allegations of the Internal Revenue Code," says the TTB. It appears that ADM, which is an ethanol maker for fuel as well as a grain neutral ethanol manufacturer for beverage alcohol marketers, was misusing each. The TTB says that ADM used spirits "in the manufacture of products not for fuel use. In addition, ADM allegedly used undenatured spirits on its bonded premises in a manner not in compliance with the law and regulations." Denatured ethanol is basically grain spirits intended for fuel use which are given an additive so that they are undrinkable. Were the workers drinking the product, or using it in their cars? TTB doesn't say. But that's a mighty big fine.
MORE REASONS TO DRINK THE RED
A new study has found that an antioxidant component in red wine can decrease the risk of lung cancer. The study has been published in the October issue of Cancer Epidemiology, Biomarkers and Prevention, a journal of the American Association for Cancer Research. “An antioxidant component in red wine may be protective of lung cancer, particularly among smokers,” said Chun Chao, Ph.D., a research scientist at Kaiser Permanente Department of Research and Evaluation in Pasadena, California. To reach the conclusion, Chao analyzed data collected through the California Men’s Health Study, which linked clinical data from California’s health system with self-reported data from 84,170 men aged 45 to 69 years. Researchers obtained demographics and lifestyle data from surveys computed between 2000 and 2003, and identified 210 cases of lung cancer.
Researchers measured the effect of beer, red wine, white wine and liquor consumption on the risk of lung cancer. Adjustments were made for age, race/ethnicity, education, income, body mass index, history of chronic obstructive pulmonary disease or emphysema, and smoking history. Among the study participants, there was on average a two percent lower lung cancer risk associated with each glass of red wine consumed per month. The most substantial risk reduction was among smokers who drank one to two glasses of red wine per day. The researchers reported a 60% reduced lung cancer risk in these men.
Meanwhile, not to be outdone, white wine made from grape pulp, while it contains no resveratrol, can still protect against heart disease. Dr. Dipak Das, a molecular biologist at the University of Connecticut School of Medicine in Farmington, said, "the flesh of the grape can do the same job as the skin." He gave lab rats measured doses – roughly equivalent to one or two glasses a day – of red or white Italian wines, while others received comparable doses of different chemical ingredients thought to underlie the health benefits of wine, called polyphenols. n lab rats that suffered heart attacks, the animals that received wine or polyphenols experienced less heart damage, compared to rats fed water or straight liquor. Their blood pressure and aortic blood flow plummeted less drastically as well. olecular tests of heart cells suggest that white wine protects the cell's powerhouses – mitochondria. Damage to these structures caused by lack of oxygen and nutrients can send cells down one-way path to suicide, or apoptosis.
WSD BRIEFS:
DAN AKROYD'S Crystal Head vodka, which comes in a crystal head, is creating buzz on the Internet as Dan's video has gone viral. The vodka is contract distilled in Newfoundland and sold in a glass skull made in Europe.
THE FIRE THAT RAVAGED 300 acres in Napa Valley, threatening vineyards and a home, was finally contained on Monday. The fire was allegedly started by a car.
LVMH POST FIRST 9 MONTHS GROWTH. Despite the growing financial crisis, LVMH said last week that it is maintaining its target for a "tangible increase" in yearly results. It's wine and spirits division posted a 5% organic sales increase over the first nine months of the year.
THE GUYS AT Lehrman Beverage Law have started a blog to comment on the myriad new labels coming out of the TTB. Check it at http://www.bevlaw.com/bevlog/
Until tomorrow, Harry
(filling in for Megan)
“It is during our darkest moments that we must focus to see the light.”
-Aristotle Onassis
--------- Sell Day Calendar ----------
Today’s Sell Day: 9
Sell days this month: 23
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 – The Four Seasons, Austin, Texas – Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 – 2, 2009. Click here: http://tinyurl.com/beersummit
posted at 12:21 PM
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