More on Constellation and Sazerac
Unfortunately, some employees at Constellation face losing their jobs due to this morning’s news. Constellation said many employees associated with the brands being sold will transfer to Sazerac, while others will be laid off. As Constellation put it: “Some [employees] will be impacted by this change and the company is taking appropriate actions to support those who are displaced.”
Here is a complete list of brands Constellation is keeping:
Balblair Scotch; Black Velvet; Black Velvet Reserve; Danfield's Private Reserve Whisky; Garduno's Tequila; Golden Wedding Whisky; MacNaughton; McMasters; O.F.C. (Original Fine Canadian); Old Pulteney Scotch; Order of Merit; Paul Masson; Royal Command; Schenley (family); Silver Wedding; Speyburn Scotch; and Svedka Vodka (family).
Everything else goes to Sazerac.
Kaumil Gajrawala of UBS says Constellation took “another step in the right direction” in selling its value spirits brands because it secured a good price amid weak financial markets and a global economic slump. He estimated that Sazerac paid about 15.5 times the brands’ earnings before interest and taxes, “which we view favorably for STZ given the low margins and limited long-term growth potential we see for many of these brands as well as the difficult market current market conditions.” Given the poor economy, its impressive Constellation sold the brands for as much money as it did.
As we noted this morning, Constellation’s divestiture could open it for some or all of Foster’s wine brands or perhaps Ste. Michelle or even a more seasoned spirits brand. All speculation at the moment.
WE REMOVED THIS PARAGRAPH BECAUSE IT HAS INCONSISTENCIES
NEW YORK INDUSTRY GRAPPLES WITH WINE IN GROCERY STORES
An interesting article in Albany’s Times Union newspaper explores a big issue facing the state and whether SWS is involved or merely getting a bad rap. As part of his 2009-2010 budget, Gov. David Paterson proposed expanding wine sales to supermarkets, drugstores and convenience stores, which liquor stores are avidly against. The article quotes several local liquor store owners claiming SWS is against them, but points out there is little evidence that the wholesaler is pushing Paterson’s initiative. President of the New York State Liquor Store Association, Stefan Kalogrides, says he was personally assured by Harvey Chaplin that they are on their side.
Charmer Sunbelt Group also said in a statement to the Times Union that it "is prepared to invest significant resources to defeat this initiative” and back liquor stores.
Liquor store owners say wine sales account for 65% to 80% of their overall sales, and predict they would struggle to survive against grocery store competition.
WSD BRIEFS:
COST PLUS SCALING BACK. Specialty retailer Cost Plus says it is closing 26 stores and exiting eight unspecified regional markets in response to the current economic downturn. The company will also lay off some employees to cut costs.
FINLANDIA BREAKS 3M CASE MARK. Finlandia announced today it has reached a new milestone of selling three million cases annually. Since B-F purchased the brand four years ago, it has reportedly seen double-digit growth each year.
DIAGEO SETTLES ON DISTILLERY IN VIRGIN ISLANDS. Diageo said on Friday it has signed a lease on a 26-acre site to build a Captain Morgan rum distillery in St. Croix, in the Virgin Islands. The new facility is expected to start making rum in 2011
AV BRANDS IS ADDING TWO NEW BRANDS to its portfolio: Spanish wine Zaco from Bodegas Bilbaínas and Domaine Léon Beyer. Zaco was produced in the Rioja region of Spain and retails for $14.99. Domaine Léon Beyer is a family owned Alsace winery since 1580 and joined AV Brands effective this month.
Until tomorrow, Megan
“The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.”
Bertrand Russell
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Fri
This month last year ended on a: Thurs
YTD sell days Over/Under: 0
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.
Here is a complete list of brands Constellation is keeping:
Balblair Scotch; Black Velvet; Black Velvet Reserve; Danfield's Private Reserve Whisky; Garduno's Tequila; Golden Wedding Whisky; MacNaughton; McMasters; O.F.C. (Original Fine Canadian); Old Pulteney Scotch; Order of Merit; Paul Masson; Royal Command; Schenley (family); Silver Wedding; Speyburn Scotch; and Svedka Vodka (family).
Everything else goes to Sazerac.
Kaumil Gajrawala of UBS says Constellation took “another step in the right direction” in selling its value spirits brands because it secured a good price amid weak financial markets and a global economic slump. He estimated that Sazerac paid about 15.5 times the brands’ earnings before interest and taxes, “which we view favorably for STZ given the low margins and limited long-term growth potential we see for many of these brands as well as the difficult market current market conditions.” Given the poor economy, its impressive Constellation sold the brands for as much money as it did.
As we noted this morning, Constellation’s divestiture could open it for some or all of Foster’s wine brands or perhaps Ste. Michelle or even a more seasoned spirits brand. All speculation at the moment.
WE REMOVED THIS PARAGRAPH BECAUSE IT HAS INCONSISTENCIES
NEW YORK INDUSTRY GRAPPLES WITH WINE IN GROCERY STORES
An interesting article in Albany’s Times Union newspaper explores a big issue facing the state and whether SWS is involved or merely getting a bad rap. As part of his 2009-2010 budget, Gov. David Paterson proposed expanding wine sales to supermarkets, drugstores and convenience stores, which liquor stores are avidly against. The article quotes several local liquor store owners claiming SWS is against them, but points out there is little evidence that the wholesaler is pushing Paterson’s initiative. President of the New York State Liquor Store Association, Stefan Kalogrides, says he was personally assured by Harvey Chaplin that they are on their side.
Charmer Sunbelt Group also said in a statement to the Times Union that it "is prepared to invest significant resources to defeat this initiative” and back liquor stores.
Liquor store owners say wine sales account for 65% to 80% of their overall sales, and predict they would struggle to survive against grocery store competition.
WSD BRIEFS:
COST PLUS SCALING BACK. Specialty retailer Cost Plus says it is closing 26 stores and exiting eight unspecified regional markets in response to the current economic downturn. The company will also lay off some employees to cut costs.
FINLANDIA BREAKS 3M CASE MARK. Finlandia announced today it has reached a new milestone of selling three million cases annually. Since B-F purchased the brand four years ago, it has reportedly seen double-digit growth each year.
DIAGEO SETTLES ON DISTILLERY IN VIRGIN ISLANDS. Diageo said on Friday it has signed a lease on a 26-acre site to build a Captain Morgan rum distillery in St. Croix, in the Virgin Islands. The new facility is expected to start making rum in 2011
AV BRANDS IS ADDING TWO NEW BRANDS to its portfolio: Spanish wine Zaco from Bodegas Bilbaínas and Domaine Léon Beyer. Zaco was produced in the Rioja region of Spain and retails for $14.99. Domaine Léon Beyer is a family owned Alsace winery since 1580 and joined AV Brands effective this month.
Until tomorrow, Megan
“The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.”
Bertrand Russell
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Fri
This month last year ended on a: Thurs
YTD sell days Over/Under: 0
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 1:32 PM
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