Top Executive Leaving Foster’s
Loads of Foster’s news has surfaced over the past several months and today is no exception. The company announced that Jamie Odell, the head of Foster’s Australian and Asia-Pacific business, has reportedly quit after being passed over for the role of ceo. In an official statement, the company says Jamie will leave on Friday (Nov. 14) “to pursue other interests.”
“I personally thank Jamie for his contribution in various senior roles over 9 years with the Company and sincerely wish him well as he seeks fresh challenges in the future,” said ceo Ian Johnston.
Until the company completes its wine review, the overall leadership team will report to Ian, including the heads of the Australian sales and marketing divisions, and the managing director of Asia/Pacific. The regional heads of finance, human resources and supply services will report to the cfo, chief HR officer and chief supply officer, respectively.
Jamie was managing director of Foster's wine division until August 2006, when the company combined its wine, beer and spirits businesses and was restructured along geographic lines. According to local reports, he applied for the position of ceo but was overlooked in favor of Ian Johnston.
The Australian reports that “his [Jamie’s] past association with the wine division may have been partly responsible for Foster's decision in September to confirm non-executive director Ian Johnston as chief executive” following his role as interim ceo.
It is believed that Foster’s appointed Ian because the company experienced difficulty in finding an outside successor. As we know, Foster’s wine biz has an uncertain future and many speculate its beer business could soon be acquired by the likes of Molson Coors or others. Recall that Molson Coors revealed last week that it acquired a 5% interest in Foster’s via a derivative deal with Deutsche Bank. CEO Peter Swinburn refused to say whether the company would buy a bigger stake in Foster’s or sell its shares.
Most analysts believe any potential takeover suitor is likely to hold off until Foster’s splits its beer and wine units and completes is strategic wine review, which is set to end in February.
FOSTER’S SCRAPS CASH SALE OF WINE BIZ. In other news, an article in the Business Spectator is reporting that Foster’s Group has scratched the option of a straight cash sale of its $4.5 billion wine business due to the poor economy.
The company's board reportedly threw away the option because of poor economic conditions, a lack of buyers, and because it believed a valuation in the current market would be too low, the Australian Financial Review reports.
While Fosters declined to comment on the progress of its wine review, the paper said the company is still considering a demerger of the business. The AFR also said Foster's might sell some of its lower end wine brands to repackage the business as a premium offering.
The cost of a demerger could top $100 million, the paper said.
Asked whether Foster's would try to defend itself against a possible takeover, a Foster's spokesman said: "At the moment we are saying nothing because we don't know anything more than we did yesterday, besides the awareness of that stake."
DHL CUTS 9,500 JOBS NATIONWIDE
Global delivery company DHL is reportedly cutting 9,500 jobs as it discontinues air and ground operations within the United States. It will continue shipments between the United States and other nations, however, but is dropping "domestic-only" air and ground services within the U.S. by Jan. 30 "to minimize future uncertainties."
The company already cut 5,400 jobs earlier this year. After these job losses, between 3,000 and 4,000 employees will remain at DHL's U.S. operations. DHL, which is owned by the German company Deutsche Post World Net, said it was making the cuts to improve profitability and "to prepare the company for the economic challenges ahead."
DHL’s reportedly held about 3-4% market share in the U.S., which is now available to FedEx and UPS. UPS stock rose nearly 5% in the first hour of Monday trading, and FedEx stock rose about 4%.
Speaking of UPS, DHL is still hammering out a deal that would extend its airport-to-airport shipping services within the U.S. to competitor UPS.
FRESH & EASY DOUBLES SPARKLING WINE SALES, OFFERS PROMOTION
Fresh & Easy saw a surge in sparkling wine sales on Election Day last week, more than doubling its sparkling wine sales last Tuesday (November 4) according to the retailer. The company carries eleven different bottles of sparkling wines, including five of which are specially selected for Fresh & Easy. Seven of these sparkling wines retail for under $10.
The best selling bubbly for Election Day was the Fresh & Easy Montcadi Cava which retails for under $7.00.
"We offer fantastic quality wines and champagnes at budget prices," said Simon Uwins, chief marketing officer. "People were able to commemorate a historic election with style without breaking the bank."
In a separate statement, the company said it introduced five new wine blends all under $9 and a promotional discount of 10% on six or more bottles of wine. Fresh & Easy now offers 70 wines which include the newly added Corvina-Merlot Cantina di Merlara ($8.99), Ca' Miani Garganega-Pinot Grigio ($4.99), La Parra Loca Tempranillo-Shiraz ($6.99), Lancewood Cabernet Sauvignon ($8.99) and Roslyn Family Vineyards Cabernet Sauvignon ($6.99).
Could Fresh & Easy end up like its parent company Tesco in the UK? Drinks suppliers have had a difficult time competing with the retailers’ private label drinks because they are so cheap. The retailer also offers huge promotions on alcoholic beverages in the UK which has angered suppliers including Constellation and Diageo.
WOMEN AND YOUNG PEOPLE MOST CONCERNED ABOUT ECONOMY
The majority of U.S. consumers (86%) believe the country is currently in a recession and more than half (54%) believe it will last longer than 12 months, according to a new survey by Nielsen. The survey was conducted in September/October 2008, which were some of the worst months for Wall Street in recent history. Consumers aged 25-29 have the least amount of confidence, while more women (91%) than men (82%) feel the U.S. economy is in recession.
Thirty-eight percent of U.S. consumers surveyed consider the economy their biggest concern over the next six months, followed by increasing fuel prices, debt, increasing utility bills, increasing food prices and job security. As a result, more than half (56%) say they are cutting back on out-of-home entertainment.
WSD BRIEFS:
CANADIAN GRAPE GROWER BAILOUT. The Ontario government has sent $4 million to the Grape Growers of Ontario in order to purchase wine grapes without a buyer this fall. Only growers without winery contracts and grapes fit for production qualify for the government cash, dubbed the 2008 Harvest Program, reports the Press Democrat. The program has not been formally announced.
BEAM GLOBAL HAS LAUNCHED a limited edition, “The Distillers Series,” in October 2008. “The Distillers Series” celebrates the seven generations within the Jim Beam family and commemorates their contributions to the bourbon industry. Seven generations are featured, which includes Jacob Beam, David Beam, David M. Beam, James Beam, T. Jeremiah Beam, Booker Noe and Frederick Booker Noe III. At a suggested retail price of $20.99, the limited edition will be available through January 2009.
JACKSON BROWNE is reportedly the latest celebrity to add “vintner” to his resume. According to several reports, he is considering turning his Hollister Ranch home in Santa Barbara, California into a vineyard. "I want to be a gentleman farmer, but I don't want to work very hard," he said.
CECCHETTI WINE COMPANY is approaching 100,000 cases in total sales of its Line 39 Lake County wines and Redtree California wines in its first year of business. The Lake County, CA-based company attributes strong demand from airlines for much of its success.
Until tomorrow, Megan
“The nice part about being a pessimist is that you are constantly being either proven right or pleasantly surprised.”
George F. Will
Herbert Bayard Swope
--------- Sell Day Calendar ----------
Today's Sell Day:6
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
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.
“I personally thank Jamie for his contribution in various senior roles over 9 years with the Company and sincerely wish him well as he seeks fresh challenges in the future,” said ceo Ian Johnston.
Until the company completes its wine review, the overall leadership team will report to Ian, including the heads of the Australian sales and marketing divisions, and the managing director of Asia/Pacific. The regional heads of finance, human resources and supply services will report to the cfo, chief HR officer and chief supply officer, respectively.
Jamie was managing director of Foster's wine division until August 2006, when the company combined its wine, beer and spirits businesses and was restructured along geographic lines. According to local reports, he applied for the position of ceo but was overlooked in favor of Ian Johnston.
The Australian reports that “his [Jamie’s] past association with the wine division may have been partly responsible for Foster's decision in September to confirm non-executive director Ian Johnston as chief executive” following his role as interim ceo.
It is believed that Foster’s appointed Ian because the company experienced difficulty in finding an outside successor. As we know, Foster’s wine biz has an uncertain future and many speculate its beer business could soon be acquired by the likes of Molson Coors or others. Recall that Molson Coors revealed last week that it acquired a 5% interest in Foster’s via a derivative deal with Deutsche Bank. CEO Peter Swinburn refused to say whether the company would buy a bigger stake in Foster’s or sell its shares.
Most analysts believe any potential takeover suitor is likely to hold off until Foster’s splits its beer and wine units and completes is strategic wine review, which is set to end in February.
FOSTER’S SCRAPS CASH SALE OF WINE BIZ. In other news, an article in the Business Spectator is reporting that Foster’s Group has scratched the option of a straight cash sale of its $4.5 billion wine business due to the poor economy.
The company's board reportedly threw away the option because of poor economic conditions, a lack of buyers, and because it believed a valuation in the current market would be too low, the Australian Financial Review reports.
While Fosters declined to comment on the progress of its wine review, the paper said the company is still considering a demerger of the business. The AFR also said Foster's might sell some of its lower end wine brands to repackage the business as a premium offering.
The cost of a demerger could top $100 million, the paper said.
Asked whether Foster's would try to defend itself against a possible takeover, a Foster's spokesman said: "At the moment we are saying nothing because we don't know anything more than we did yesterday, besides the awareness of that stake."
DHL CUTS 9,500 JOBS NATIONWIDE
Global delivery company DHL is reportedly cutting 9,500 jobs as it discontinues air and ground operations within the United States. It will continue shipments between the United States and other nations, however, but is dropping "domestic-only" air and ground services within the U.S. by Jan. 30 "to minimize future uncertainties."
The company already cut 5,400 jobs earlier this year. After these job losses, between 3,000 and 4,000 employees will remain at DHL's U.S. operations. DHL, which is owned by the German company Deutsche Post World Net, said it was making the cuts to improve profitability and "to prepare the company for the economic challenges ahead."
DHL’s reportedly held about 3-4% market share in the U.S., which is now available to FedEx and UPS. UPS stock rose nearly 5% in the first hour of Monday trading, and FedEx stock rose about 4%.
Speaking of UPS, DHL is still hammering out a deal that would extend its airport-to-airport shipping services within the U.S. to competitor UPS.
FRESH & EASY DOUBLES SPARKLING WINE SALES, OFFERS PROMOTION
Fresh & Easy saw a surge in sparkling wine sales on Election Day last week, more than doubling its sparkling wine sales last Tuesday (November 4) according to the retailer. The company carries eleven different bottles of sparkling wines, including five of which are specially selected for Fresh & Easy. Seven of these sparkling wines retail for under $10.
The best selling bubbly for Election Day was the Fresh & Easy Montcadi Cava which retails for under $7.00.
"We offer fantastic quality wines and champagnes at budget prices," said Simon Uwins, chief marketing officer. "People were able to commemorate a historic election with style without breaking the bank."
In a separate statement, the company said it introduced five new wine blends all under $9 and a promotional discount of 10% on six or more bottles of wine. Fresh & Easy now offers 70 wines which include the newly added Corvina-Merlot Cantina di Merlara ($8.99), Ca' Miani Garganega-Pinot Grigio ($4.99), La Parra Loca Tempranillo-Shiraz ($6.99), Lancewood Cabernet Sauvignon ($8.99) and Roslyn Family Vineyards Cabernet Sauvignon ($6.99).
Could Fresh & Easy end up like its parent company Tesco in the UK? Drinks suppliers have had a difficult time competing with the retailers’ private label drinks because they are so cheap. The retailer also offers huge promotions on alcoholic beverages in the UK which has angered suppliers including Constellation and Diageo.
WOMEN AND YOUNG PEOPLE MOST CONCERNED ABOUT ECONOMY
The majority of U.S. consumers (86%) believe the country is currently in a recession and more than half (54%) believe it will last longer than 12 months, according to a new survey by Nielsen. The survey was conducted in September/October 2008, which were some of the worst months for Wall Street in recent history. Consumers aged 25-29 have the least amount of confidence, while more women (91%) than men (82%) feel the U.S. economy is in recession.
Thirty-eight percent of U.S. consumers surveyed consider the economy their biggest concern over the next six months, followed by increasing fuel prices, debt, increasing utility bills, increasing food prices and job security. As a result, more than half (56%) say they are cutting back on out-of-home entertainment.
WSD BRIEFS:
CANADIAN GRAPE GROWER BAILOUT. The Ontario government has sent $4 million to the Grape Growers of Ontario in order to purchase wine grapes without a buyer this fall. Only growers without winery contracts and grapes fit for production qualify for the government cash, dubbed the 2008 Harvest Program, reports the Press Democrat. The program has not been formally announced.
BEAM GLOBAL HAS LAUNCHED a limited edition, “The Distillers Series,” in October 2008. “The Distillers Series” celebrates the seven generations within the Jim Beam family and commemorates their contributions to the bourbon industry. Seven generations are featured, which includes Jacob Beam, David Beam, David M. Beam, James Beam, T. Jeremiah Beam, Booker Noe and Frederick Booker Noe III. At a suggested retail price of $20.99, the limited edition will be available through January 2009.
JACKSON BROWNE is reportedly the latest celebrity to add “vintner” to his resume. According to several reports, he is considering turning his Hollister Ranch home in Santa Barbara, California into a vineyard. "I want to be a gentleman farmer, but I don't want to work very hard," he said.
CECCHETTI WINE COMPANY is approaching 100,000 cases in total sales of its Line 39 Lake County wines and Redtree California wines in its first year of business. The Lake County, CA-based company attributes strong demand from airlines for much of its success.
Until tomorrow, Megan
“The nice part about being a pessimist is that you are constantly being either proven right or pleasantly surprised.”
George F. Will
Herbert Bayard Swope
--------- Sell Day Calendar ----------
Today's Sell Day:6
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
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 1:00 PM
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