Jabour Statement: "Haven't Been Told the Reason for this Investigation"

FILED APRIL 25, 2013

Dear Client:

Twin Liquors has released a statement following the Tuesday investigation by FBI, IRS and TABC officials at their Austin, Texas headquarters. The Jabour family says they have no idea what's going on, but are working closely with investigators.

Here is their statement in full:

"Twin Liquors is family-owned and operated and has been an active part of the Austin community since the late 1800s. We are the third generation to manage this company, which was built upon honesty and integrity.

Although we haven't been told the reason for this investigation, we are cooperating fully with the agencies involved. We are handling this matter with transparency, respect for the agencies and confidence that this will come to an acceptable resolution.

In the meantime, it is business as usual at all Twin Liquors stores. Thank you to our employees, customers, industry and the community for the outpouring of support."

Thus far the feds are remaining tight lipped to the press as well. Recall that David Jabour is president of Twin Liquors. Under his leadership, the South Texas liquor store chain has expanded from one store to 74 stores. David has served the American Beverage Licensees (ABL) since 2002, and is currently serving as Immediate Past President. He is also an executive board member of the Texas Package Store Association, among a number of other organization.

US GROWTH BOOSTS PERNOD'S THIRD QUARTER RESULTS

Pernod Ricard continued to see solid growth in the US for the nine months ending March, despite challenges to the macroeconomic environment. US net sales were up 7% at the end of March, compared to 9% growth in the first half. "We do not consider this a deceleration of the underlying trends," said Gilles Bogaert, Pernod's cfo. "We just had shipments ahead of deflations in the first half and we see no change in the underlying trends, which remain very positive as of the Nielsen-NABCA figures."

Pernod's core brands (including: Absolut, Chivas, Jameson, Malibu, Beefeater, Kahlua, The Glenlivet, Mumm and Perrier Jouet etc.) were up 8% for the nine months benefitting from 4% price/mix increase.

Absolut was up 1.6% and has received a price increased in six states thus far, which represent about 25% of the global business. "The market is still very competitive and I think we remain cautious going forward on price increases on Absolut ," said Gilles. "I think that the premiumization driving on the brand would be more on the extension of the range, in particular, the launch of Elyx in the US. Elyx is priced - the price is between $35 and $40, so almost twice the price of Absolut Blue. So clearly, we are also count on that brand extension through the global net sales per case and the whole price and mix on the brand."

Jameson was up 23%. "The brand remains the main growth driver in the US. Pernod is currently in the process of "pushing the range to a higher quality," by taking ambitious pricing. This has resulted in strong top line growth, less volume and more price/mix. "You need to keep the brand edgy. And a good way to keep it edgy is to have some pricing," Gilles continued.

In addition, Malibu was up 6% largely due to the numerous innovations they've launched. Perrier-Jouet was up 7%. Meanwhile, Glenlivet climbed 15% with strong growth in volume and price/mix as well, said Gilles. And finally, Beefeater delivered "remarkable growth," in the US.

Going forward Pernod expects to continue driving sales through innovation, premiumization and its strategic brands. Gilles confirmed the company is expecting to close out their financial year at 6% growth worldwide.

STE MICHELLE CLIMBS 9.5%, BENEFITS FROM EASTER TIMING AND INCREASED DISTRIBUTION

Ste. Michelle Wine Estates grew wine shipment volumes (sales to wholesalers) by 9.5% in the first quarter ended March 31. The jump in numbers was mainly due to increased distribution and the timing of the Easter holiday, said parent company Altria during their earnings announcement this morning. Chateau Ste. Michelle grew shipments by 0.3%, while Columbia Crest climbed almost 13% and 14 Hands rose 46.8%. Meanwhile, first quarter net revenue grew by 11.5% for the wine company, primarily due to higher shipment volume and higher pricing.

WSD BRIEFS:

HEAVEN HILL NAMES NEW ON-PREMISE NATIONAL ACCOUNTS HEAD. Heaven Hill Distilleries has appointed Carlos Lozano to lead the on-premise national account division. He reports to Steve Feller, vp of North American sales. Carlos has been with the industry for over 20 years, and built a national accounts background with Diageo North America and Pernod Ricard USA. Most recently, he was director of national accounts for Monin Gourmet Flavorings.

GLAZER'S HAS NAMED ROBERT CASEY as vp, supplier performance, effective May 1. In this position, Robert will be responsible for providing strategic and operational leadership and direction for strategic vendors related to overall corporate sales performance. Robert will report to Mike McLaughlin, evp of sales and marketing. Robert joined Glazer's in 2003 and most recently was director of trade development for the Mustang/Premier Spirits Division. Prior to joining Glazer's, he served as state manager for Diageo in Louisiana.

CHAINS DOMINATE WASHINGTON SPIRITS SALES. Not surprisingly, Washington Liquor Control Board sales data shows that top chains have dominated spirits sales since the state moved to a privatized system last June. Sixteen of Costco's discount warehouse club stores ranked among the 20 top-selling liquor licensees statewide in the second half of 2012, reports the Puget Sound Business Journal. However, a Total Wine & More outlet in Bellevue topped the list by bringing in $2.48 million in spirits sales during the period. Looking at Spokane County specifically, nine of the top ten are chain stores led by Costco at $2.28 million in sales during Q3 and Q4 of 2012, reports the Spokane Journal. However, Total Wine & More is proving to be a tough competitor as it brought it $880,000 in net sales for the last two months of the year, and plans to open a second store in Spokane by the end of the year. Recall Total Wine & More, along with BevMo, entered the state after I-1183 passed the vote. Other big players in the state include Fred Meyer, Walmart and Safeway - all of whom contributed to I-1183 along with Costco.


Until tomorrow, Emily

"A loyal friend laughs at your jokes when they're not so good, and sympathizes with your problems when they're not so bad."
-- Arnold Glasgow

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