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