Constellation out of the Bidding for Allied?
It appears that Diageo has chosen sides in the battle to carve up Allied-Domecq and they have chosen to side with Pernod Ricard (as they did when the two companies broke up Seagram's). Constellation has stated that they will make a bid (they have until June 29th to do so), but without the backing of Diageo, they are left with just Brown-Forman in their camp, a risk-averse company that will probably pick and choose the "cream of the crop".
Its interesting not only that Diageo chose a side so quickly but also that they are only interested in Montana, Allied's New Zealand wine brand, and Bushmill's Irish Whiskey. Both brands are relatively small in the big picture (the Irish Whiskey market is just a fraction of the Scotch Whiskey market) and don't seem to do much for the Diageo portfolio. The rumor was that Diageo initially wanted A-D's wine brands, but perhaps they've realized that Buena Vista, Callaway, Clos du Bois etc. aren't exactly "gems" and they've taken the opportunity to grab the best of what was available?
Its interesting not only that Diageo chose a side so quickly but also that they are only interested in Montana, Allied's New Zealand wine brand, and Bushmill's Irish Whiskey. Both brands are relatively small in the big picture (the Irish Whiskey market is just a fraction of the Scotch Whiskey market) and don't seem to do much for the Diageo portfolio. The rumor was that Diageo initially wanted A-D's wine brands, but perhaps they've realized that Buena Vista, Callaway, Clos du Bois etc. aren't exactly "gems" and they've taken the opportunity to grab the best of what was available?
posted by Anonymous at 11:27 AM
1 Comments:
You need to do your homework before making statements about Montana being small beans and Clos du Bois and Buena Vista being undesirable, you obviously have a pallet but no business sense. If you knew the extent of distribution, profitablity and brand equity of these brands....well, you don't...just another reason for you to be cynical while showing your obvious lack of understanding of the wine business from a profit perspective.
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