Article on Industry Consolidation
The following article on industry consolidation is credited to www.just-drinks.com, which is ordinarily a very well-respected commentator on the global drinks market:
http://www.wine.co.za/News/News.aspx?NEWSID=5995&Source=News
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"Meanwhile, Britain's largest independent wine importer, marketer and distributor, Western Wines, is the most recent prize for North America's largest producer of wine and related products, Vincor International. "
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ummm.....in a word, no. Vincor, while a very large producer, is Canada's largest producer. Canada, for those without at Atlas, is actually a subset of North America. Perhaps they meant to write "the largest producer of wine North of America"
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"and it is possible that...Kendall-Jackson will become the target of a hostile takeover bid"
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A hostile takeover? Of a family-owned company? How would one do that, by buying out their bank? Reminds me of the Monty Python hostile-takeover pirate sketch where they fire volleys of file drawers from their office windows into the firm they're taking over....
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"Euromonitor International expects Bacardi to focus more heavily on broadening its spirits portfolio, following a stock market flotation, thereby making a divestment of its wine business a more probable scenario."
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um, okay. If you consider Martini & Rossi Vermouth and Asti to be a "wine portolio" I guess I won't quibble with that, but I will guffaw, perhaps chortle, and certainly snicker at it.
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"An Anglo-French alliance between Allied Domecq and Pernod Ricard would fill substantial gaps in both wine portfolios, giving Allied Domecq a key Australian brand (Jacob's Creek) and Pernod Ricard an important Californian brand (Callaway Coastal),"
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"Callaway Coastal" and "important" should not be used in the same sentence unless one were to say: "It is important for Allied Domecq to rid itself of the Callawy Coastal brand". The Temecula Appellation has had little - if any - importance in the recent California wine industry, and is really nothing more than a historical curiosity. Why keep a winery in an appellation which doesn't sell outside of itself? Callaway should've been sold off back in the mid 90's when there was a possibility that any winery would sell well due to the demand for product. Any sale now would come with a huge drop in value after the Glassy-winged Sharpshooter decimated the area like Locusts.
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"Other potential targets also expected to be at the centre of the merger and acquisition stage in 2004-2005 include California winery Robert Mondavi and family-owned Australian producer, Casella Wines, owner of the successful Yellow Tail brand."
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Mondavi, sure, that's a softball given what they've publicly announced. Obviously everything is in play for them. Yellow Tail, however is not completely family-owned. The label is 50% owned by its importer, WJ Deutsch & Sons, who aren't going to let go of this license to print money any time soon.....
http://www.wine.co.za/News/News.aspx?NEWSID=5995&Source=News
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"Meanwhile, Britain's largest independent wine importer, marketer and distributor, Western Wines, is the most recent prize for North America's largest producer of wine and related products, Vincor International. "
------------------------
ummm.....in a word, no. Vincor, while a very large producer, is Canada's largest producer. Canada, for those without at Atlas, is actually a subset of North America. Perhaps they meant to write "the largest producer of wine North of America"
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"and it is possible that...Kendall-Jackson will become the target of a hostile takeover bid"
----------------------
A hostile takeover? Of a family-owned company? How would one do that, by buying out their bank? Reminds me of the Monty Python hostile-takeover pirate sketch where they fire volleys of file drawers from their office windows into the firm they're taking over....
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"Euromonitor International expects Bacardi to focus more heavily on broadening its spirits portfolio, following a stock market flotation, thereby making a divestment of its wine business a more probable scenario."
----------------------
um, okay. If you consider Martini & Rossi Vermouth and Asti to be a "wine portolio" I guess I won't quibble with that, but I will guffaw, perhaps chortle, and certainly snicker at it.
----------------------
"An Anglo-French alliance between Allied Domecq and Pernod Ricard would fill substantial gaps in both wine portfolios, giving Allied Domecq a key Australian brand (Jacob's Creek) and Pernod Ricard an important Californian brand (Callaway Coastal),"
----------------------
"Callaway Coastal" and "important" should not be used in the same sentence unless one were to say: "It is important for Allied Domecq to rid itself of the Callawy Coastal brand". The Temecula Appellation has had little - if any - importance in the recent California wine industry, and is really nothing more than a historical curiosity. Why keep a winery in an appellation which doesn't sell outside of itself? Callaway should've been sold off back in the mid 90's when there was a possibility that any winery would sell well due to the demand for product. Any sale now would come with a huge drop in value after the Glassy-winged Sharpshooter decimated the area like Locusts.
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"Other potential targets also expected to be at the centre of the merger and acquisition stage in 2004-2005 include California winery Robert Mondavi and family-owned Australian producer, Casella Wines, owner of the successful Yellow Tail brand."
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Mondavi, sure, that's a softball given what they've publicly announced. Obviously everything is in play for them. Yellow Tail, however is not completely family-owned. The label is 50% owned by its importer, WJ Deutsch & Sons, who aren't going to let go of this license to print money any time soon.....
posted by Anonymous at 10:33 AM
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