what’s happening in wine & spirits megan metcalf editor wine & spirits daily

What’s Happening in Wine & Spirits

Megan MetcalfEditor

Wine & Spirits Daily

Knowing what to expect in 2010

The million dollar question

A return to consolidation

The big aren’t satisfied...they’re still getting bigger

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

The fabled “turn-around”: when, why and where?

It all hinges on unemployment

Our knight in shining armor

The on-premise will prompt trading up

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

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.

Different brands are building a presence

Trading down has given new brands a name

Everyone’s going digital

Southern Hemisphere wines will rule the roost

Puts added pressure on domestic wines

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

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

Thank you

Megan MetcalfEditor

Wine & Spirits Dailywww.winespiritsdaily.com

megan@winespiritsdaily.com210.805.8006