Foster’s Delays Wine Review
In Foster’s annual general meeting today, chairman David Crawford said the company has extended its wine review until mid-February 2009, mainly because of global financial turmoil and the drop in the Australian dollar.
"We've seen the Australian dollar drop from US94¢ at the time of our full-year results and now it's hovering around US60¢,” said David, which impacts the company’s supply chain and sales.
Initially the review was set to be completed at the end of the calendar year.
Once the review is completed, ceo Ian Johnston will put the results into action. What could that entail? Only speculation at the moment, but Ian did say at the meeting that Foster’s is “not hesitating to make the immediate business decisions necessary to drive business growth.” Could this mean a sell-off?
David also told reporters that “we are just looking at every opportunity that is available," and stated that "every investment bank in Christendom" is exploring a possible takeover of the company. Surprisingly, David denied that any brewers have approached Foster’s about a possible deal.
“I don't think there's a merchant banker in Christendom that hasn't either individually or collectively looked at possible structuring of proposals in connection with respect to dealing with Foster's in total or Foster's in part," he said in full.
FOSTER’S IN THE U.S. Ian commented that while the company’s 2008 performance did not meet expectations, the quarter to September did. Consumers in the U.S. are still cutting back spending but “wine consumption seems to be holding up at trend levels.” Nonetheless, he said consumers are purchasing cheaper bottles of wine as they opt to drink at home versus at restaurants or bars.
“This tends to move purchasing to lower price wines and away from the luxury portfolio. Our short term plans are being adjusted to recognize this dynamic. Notwithstanding this, both the category and Foster’s continue to see value growth ahead of volume growth in the US market.”
In the US, said Ian, the $4 to 6 price point is a key market and has shown strong recent growth in the past quarter, up 11.5%. The company is also adding varietals to its largest brand, Beringer White Zinfandel, including chardonnay, merlot and cabernet.
With regards to the recent slowdowns for Australian wines in the U.S., Ian said the Foster’s “share in the Australian category is again improving, behind renewed promotional and merchandising support.”
SALES OF MOSELLE WINES FALL -8% IN U.S.
Demand for German Riesling from Moselle fell 12% in the year to July as demand from the U.S. and the Netherlands fell, reports Bloomberg. Volume sales to countries including the U.S., the Netherlands and the U.K. fell -20% to 30.1 million liters. The culprit? U.S. drinkers are switching to cheaper white wines from other regions. Sales to the U.S. fell -7.6% to 54.4 million euros in the year through July.
WSD BRIEFS:
PATRON ENTERS RUSSIAN DUTY FREE. The Patrón Spirits Company finalized a deal to be listed at duty free in the major Russian airports, including Moscow airports Domodedovo, Sheremetyevo, and Vnukovo, and St. Petersburg’s Pulkovo airport. Earlier this year, Patrón entered the Russian domestic market through an agreement with Moscow-based MBG. Mike Hill, vp for Europe, Africa and the Middle East at Patron, said “in less than a year’s time, Russia has become one of Patrón’s most successful regions in the world.”
REMY COINTREAU USA says it is launching a new advertising campaign, “Things are Getting Interesting, for Remy Martin with their out-of-home advertising in the New York, Los Angeles, Atlanta, Chicago, and Miami markets. The campaign seeks to target “influential, social, and multicultural urban males, ages 25 to 35.”
JOSE CUERVO is launching a multi-tiered, tongue-in-cheek national marketing campaign entitled "Live Notoriously Well." Each of the spots features one man's journey to bucking the status quo and living life to the fullest. It will appear in 15 and 30 second spots on cable networks along with out-of-home, online, print and radio advertising.
OAK RIDGE WINERY has named Marc Lohnes as the director of sales and marketing for the Lodi winery. Prior to joining Oak Ridge, Mark worked at E&J Gallo and purchased Helena Ranch, an on-premise only brand.
BRUNELLO DI MONTALCINO producers voted to keep their wine 100% Sangiovese, reports Decanter. A majority 96% voted to keep it as it is.
WOODFORD RESERVE IS LAUNCHING the release of the third whiskey in its Master's Collection series, 1838 Sweet Mash. It will be sold in 25 U.S. markets for $89.99 for a 750ml bottle.
Until tomorrow, Megan
“Experience is that marvelous thing that enables you to recognize a mistake when you make it again.”
Franklin P. Jones
--------- Sell Day Calendar ----------
Today's Sell Day: 21
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
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.
"We've seen the Australian dollar drop from US94¢ at the time of our full-year results and now it's hovering around US60¢,” said David, which impacts the company’s supply chain and sales.
Initially the review was set to be completed at the end of the calendar year.
Once the review is completed, ceo Ian Johnston will put the results into action. What could that entail? Only speculation at the moment, but Ian did say at the meeting that Foster’s is “not hesitating to make the immediate business decisions necessary to drive business growth.” Could this mean a sell-off?
David also told reporters that “we are just looking at every opportunity that is available," and stated that "every investment bank in Christendom" is exploring a possible takeover of the company. Surprisingly, David denied that any brewers have approached Foster’s about a possible deal.
“I don't think there's a merchant banker in Christendom that hasn't either individually or collectively looked at possible structuring of proposals in connection with respect to dealing with Foster's in total or Foster's in part," he said in full.
FOSTER’S IN THE U.S. Ian commented that while the company’s 2008 performance did not meet expectations, the quarter to September did. Consumers in the U.S. are still cutting back spending but “wine consumption seems to be holding up at trend levels.” Nonetheless, he said consumers are purchasing cheaper bottles of wine as they opt to drink at home versus at restaurants or bars.
“This tends to move purchasing to lower price wines and away from the luxury portfolio. Our short term plans are being adjusted to recognize this dynamic. Notwithstanding this, both the category and Foster’s continue to see value growth ahead of volume growth in the US market.”
In the US, said Ian, the $4 to 6 price point is a key market and has shown strong recent growth in the past quarter, up 11.5%. The company is also adding varietals to its largest brand, Beringer White Zinfandel, including chardonnay, merlot and cabernet.
With regards to the recent slowdowns for Australian wines in the U.S., Ian said the Foster’s “share in the Australian category is again improving, behind renewed promotional and merchandising support.”
SALES OF MOSELLE WINES FALL -8% IN U.S.
Demand for German Riesling from Moselle fell 12% in the year to July as demand from the U.S. and the Netherlands fell, reports Bloomberg. Volume sales to countries including the U.S., the Netherlands and the U.K. fell -20% to 30.1 million liters. The culprit? U.S. drinkers are switching to cheaper white wines from other regions. Sales to the U.S. fell -7.6% to 54.4 million euros in the year through July.
WSD BRIEFS:
PATRON ENTERS RUSSIAN DUTY FREE. The Patrón Spirits Company finalized a deal to be listed at duty free in the major Russian airports, including Moscow airports Domodedovo, Sheremetyevo, and Vnukovo, and St. Petersburg’s Pulkovo airport. Earlier this year, Patrón entered the Russian domestic market through an agreement with Moscow-based MBG. Mike Hill, vp for Europe, Africa and the Middle East at Patron, said “in less than a year’s time, Russia has become one of Patrón’s most successful regions in the world.”
REMY COINTREAU USA says it is launching a new advertising campaign, “Things are Getting Interesting, for Remy Martin with their out-of-home advertising in the New York, Los Angeles, Atlanta, Chicago, and Miami markets. The campaign seeks to target “influential, social, and multicultural urban males, ages 25 to 35.”
JOSE CUERVO is launching a multi-tiered, tongue-in-cheek national marketing campaign entitled "Live Notoriously Well." Each of the spots features one man's journey to bucking the status quo and living life to the fullest. It will appear in 15 and 30 second spots on cable networks along with out-of-home, online, print and radio advertising.
OAK RIDGE WINERY has named Marc Lohnes as the director of sales and marketing for the Lodi winery. Prior to joining Oak Ridge, Mark worked at E&J Gallo and purchased Helena Ranch, an on-premise only brand.
BRUNELLO DI MONTALCINO producers voted to keep their wine 100% Sangiovese, reports Decanter. A majority 96% voted to keep it as it is.
WOODFORD RESERVE IS LAUNCHING the release of the third whiskey in its Master's Collection series, 1838 Sweet Mash. It will be sold in 25 U.S. markets for $89.99 for a 750ml bottle.
Until tomorrow, Megan
“Experience is that marvelous thing that enables you to recognize a mistake when you make it again.”
Franklin P. Jones
--------- Sell Day Calendar ----------
Today's Sell Day: 21
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
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 3:02 PM
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