TWE to Contract Package and Produce wine for Accolade in US


Dear Client:

Treasury Wine Estate and Accolade Wines have extended their partnership to the US via a packaging and production contract. Recall the two Australian companies have consolidated their bottling bottling operations in Australia and Britain. Under their previous arrangements, Accolade closed its bottling facility in South Australia to have TWE package its wines, while Accolade bottles TWE's export wines in Britain.

Under the US agreement, TWE will contract package for Accolade at its Napa Bottling Center and produce Accolade Wines at its Asti winery. The multi-year packaging contract will begin this month while the production arrangement will begin with the 2014 vintage.

"This is a great outcome for both parties. TWE's increased focus on maximising efficiencies in our global supply network has enabled us to leverage spare capacity and generate additional financial returns for our US operations," says Stuart McNab, TWE chief supply officer. "These contracts will help TWE 'win in the Americas,' which is a key strategic focus for us in Fiscal 14."


As of November 20, Bacardi is launching a new global marketing campaign for its namesake brand: "Bacardi Untameable Since 1862." The campaign is supported with television, digital and print ads targeting millennials consumers and encouraging them to pursue their passions. It will feature tag lines such as: "We Remember Prohibition - It was a Blast;" "Some Men are Kicked Out of Bars - Others are Kicked Out of Countries;" and "Earthquakes, Fire, Exile, Prohibition - Sorry Fate, You Picked the Wrong Family."

The 30-, 60- and 120-second TV advertisements named "Procession" feature a frame-by-frame timeline and sequence of events directed by Dante Ariola, starring Jordi Molla with Jason Isaacs providing voiceover. They are also debuting a new bat logo "inspired from the past," and a revamped Bacardi work mark influenced by the Cuban Art Deco style.

"This campaign ushers in a new era for Bacardi rum, with a deeper focus on its provenance to showcase the unfailing determination of the Bacardi family and invites consumers to share in it," says Dmitry Ivanov, Bacardi's senior global category director of rums. "This idea infuses the Bacardi brand with the authenticity of its origins, celebrates the incredible quality and craftsmanship of our rums and showcases a universally resonant attitude. In essence, 'Bacardi Untameable Since 1862' is a salute to the Bacardi family's incredible heritage, to pursuing your passions, and to an extraordinary rum."


You may recall that MGP Ingredients (MPGI), independent supplier of neutral grain spirits, launched a strategic review of its business this summer following a spat between members of the founding Cray family against others members of MPGI's board of directors and its chief, Tim Newkirk (see WSD 07-25-2013).

It was speculated that MGPI might end up selling Lawrenceburg Distillers Indiana as a result of the review. However, the company announced Friday it will stick with it's current business plan. "After a thorough review, it became clear that the best path to create value for shareholders was to build momentum with MGP's current strategy," chairman John Speirs said in the announcement.


CALIFORNIA VINTNERS AND GROWERS ARE REPORTING a high quality vintage in 2013 with "near ideal conditions for bringing grapes to maturity," according to the Wine Institute. Nat DiBuduo, president of Allied Grape Growers, says the crop estimate in 2013 equals that of 2012. "We believe the winegrape crush could be four million tons again ," he stated. "While the coastal regions are probably down in crop size, the interior regions are estimated to be as big as or bigger than in 2012. More new acreage has come into production this year, mostly in the interior." To see comments from growers in all California wine growing regions, go here.

SWS CALIFORNIA IS LAUNCHING A NEW SALES AND MARKETING EXECUTIVE TEAM STRUCTURE. Firstly, they are naming Steve Harden to a new role of executive vice president, sales for the state, and expanding Patrick Daul's current role to senior vice president, commercial strategy. Both will work closely with executive vice president and general manager Jack Brennan to bolster SWS-CA's route-to-market management and innovation. Both appointments will be effective January 1, 2014, and the successor for Steve's current position will be announced later this year.

Until tomorrow, Emily

"Your heart knows not how to lie. It is great that it lays deep in your chest and not in your mouth."
-- Kak Sri

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