French wines are taking things up a notch (or two or three) with a new promotional campaign in the U.S. Calling it an “ambitious” three year marketing blitz, the “Wines of France” are hoping to “boost gains” and “build consumers’ knowledge of French wines.” The umbrella campaign will see an increased annual spend of $2.6 … Continue reading “French Wines Kick Up Their Advertising Heels”

Tesco says it will continue its store expansion on July 2 after taking a three month hiatus, which prompted speculation that its Fresh & Easy stores in the U.S. were failing. According to Dow Jones newswires, a Tesco spokeswoman dismissed those fears and said the business was “thriving.” She also reiterated Tesco’s prior commitment to … Continue reading “The Changing Face of Retail”

Stolichnaya could soon become the subject of a bidding war between some of the biggest spirits companies in the world. Russian owner SPI has hired Lehman Brothers to explore options that could result in the sale of Stoli for up to $3 billion. Another option is selling the distribution rights instead of the entire brand. … Continue reading “Stoli Could Sell for $3 Billion”

This has been one of the biggest weeks for the wine industry in recent memory. Not only did Foster’s ceo Trevor O’Hoy surprisingly resign on Monday, but Constellation Brands announced it had sold 7 of its wine brands to the newly-formed Ascentia Wine Estates for up to $234 million. Based in Sonoma, Ascentia is led … Continue reading “Interview with Bill Deutsch”

As you know, Foster’s Group’s ceo Trevor O’Hoy departed earlier this week as the company admitted it paid entirely too much for its Beringer and Southcorp acquisitions. As a result, Foster’s issued a $700 million write-down and transferred $600 million in goodwill to its beer operations.In Foster’s investor and media briefing earlier this week, the … Continue reading “Foster’s Wine Worth $3.6 Billion”

Most analysts are saying that Foster’s best bet at this point is to split its wine and beer business, although they generally acknowledge that the likelihood of a de-merger anytime soon is slim to none. There are several reasons why splitting the beer and wine operations would help Foster’s. One, the beer business is much … Continue reading “Foster’s Headed for an Uncertain Future”

Clearly, it has been a big news day in the world of wine. Two of the world’s largest wine companies, Foster’s Group and Constellation Brands, came out with breaking news in the past 24-hours. Let’s take a look.Foster’s Group announced yesterday evening that the board has accepted the resignation of ceo, Trevor O’Hoy. The news … Continue reading “Foster’s CEO Quits, Constellation Sheds Wines”

Its official: Constellation announced today it has agreed to sell several brands to U.S. private equity firm Eight Estates Fine Wines (doing business as Ascentia Wine Estates), based in Sonoma, CA for up to $234 million. Geyser Peak, Buena Vista, Gary Farrell, Atlas Peak and XYZin in California, which were acquired from Fortune Brands in … Continue reading “Alert: Constellation Sells 8 Wine Brands”

Foster’s Group announced today that the board has accepted the resignation of Chief Executive Officer, Trevor O’Hoy. O’Hoy was appointed CEO in March 2004 and has led Foster’s through a period of significant structural and business change, including the acquisition of Southcorp Limited, the rationalization of the company’s manufacturing and logistics footprint and the divestment … Continue reading “Alert: Foster’s CEO Resigns”

Responsible for propelling the spirits industry to where it is today, the premiumization train may have reached its final stop or at least slowed for awhile. Most people in the spirits industry agree “trading up” is slowing down in the face of a recession – a phenomenon that is also supported by retail data, Jeremy … Continue reading “Consumers Trade to “Bottom-Shelf” Spirits”

According to several sources, Constellation is in negotiations to sell the following wine brands: Geyser Peak (recently acquired from Fortune Brands), Gary Farrell (acquired from Fortune), Buena Vista Carneros (acquired from Fortune), Atlas Peak, Covey Run, Ste. Chapelle & Columbia Winery. The purchase price is allegedly $220-$225 million. Details of the sale and the group … Continue reading “Constellation in Negotiations to Sell”

According to several sources, Constellation is in negotiations to sell the following wine brands: Geyser Peak (recently acquired from Fortune Brands), Gary Farrell, Buena Vista Carneros, Atlas Peak, Covey Run, Ste. Chapelle & Columbia Winery. The purchase price is $220-$225 million. When Constellation reorganized its U.S. wine business in January, it reportedly decided it was … Continue reading “Alert: Constellation in Negotiations to Sell”

CEO Paul Varga said the company’s positive fiscal results proved its ability to perform well during poor economic conditions in the U.S. One of the notable milestones of 2008, according to Paul, was the growth in countries outside the U.S., which was partially offset by higher raw material costs and increased operating investments. For the … Continue reading “B-F Outperforms Wall Street”

The downturn in the economy, so far, is not a big deterrent for consumers when purchasing alcohol on-premise. New research from Nielsen indicates that the declining economy has only a “mild impact” on consumers buying wine, beer and liquor at grocery and liquor stores, convenience stores, warehouse clubs and other stores.Nearly half of consumers surveyed … Continue reading “Alcohol “Somewhat Recession Proof””

Based on a report by Macquarie Research’s Andy Kovacs, Australian imports, particularly Foster’s Group, has underperformed in the tough U.S. market so far in the second half of 2008. U.S. WINE MARKET. Andy remarked that the U.S. wine market is holding up under pressure but there is some disparity within, namely between states. In January … Continue reading “Australian Imports Stall in U.S.”