What’s Happening in Wine & Spirits
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Transcript of What’s Happening in Wine & Spirits
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What’s Happening in Wine & Spirits
Megan MetcalfEditor
Wine & Spirits Daily
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Knowing what to expect in 2010
The million dollar question
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A return to consolidation
The big aren’t satisfied...they’re still getting bigger
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Deals made so far this year:
• The Big Kahuna: Berkshire Hathaway subsidiary to acquire Empire Distributing
• RNDC enters Indiana by acquiring “certain assets” of National Distributing
• Southern granted wholesaler permit in IN• Southern strikes j-v with J.J. Taylor
Companies in Minnesota• Southern strikes j-v with Frederick P Winner
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The fabled “turn-around”: when, why and where?
It all hinges on unemployment
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Our knight in shining armor
The on-premise will prompt trading up
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The streets are alive with “discounting”
"We're waiting to see the leading indicators move -- consumer confidence, etc -- which will then give us the ability to move on price increases and improved mix for
the business.” – Ivan Menezes, Diageo North America president, Reuters Food and Agriculture Summit
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However, not everyone was cutting back
“It's those brands that have the stomach to continue to hold pricing and continue to advertise that are going to be successful in the long run.” -
John McDonnell, coo of Patron Spirits.
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Different brands are building a presence
Trading down has given new brands a name
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Everyone’s going digital
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Southern Hemisphere wines will rule the roost
Puts added pressure on domestic wines
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Biggest Stories of 2009
• Constellation consolidates its wholesaler network
• Diageo drops out of the Bordeaux business• Constellation sells its value spirits brands to
Sazerac• Foster’s Group announces results of strategic
wine review• Pernod sells Wild Turkey to Campari
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The biggest stories of 2010 so far...
• Wholesaler consolidation – big get bigger• Courts rule on direct to consumer shipping• Rum wars involving Diageo and Bacardi• French sell fake pinot noir to E&J Gallo• 2nd largest CA wine crush• Discus reaches out to small distillers• Future: Foster’s will announce wholesaler
consolidation this summer
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Thank you
Megan MetcalfEditor
Wine & Spirits Dailywww.winespiritsdaily.com