Olly Wehring's beverage industry blog - from just-drinks.com

Vinopolis eyes expansion

Fri, 20 Nov 2009 15:29:00 GMT

Vinopolis, the world wine tourist attraction in central London, plans to expand after marking a decade since opening its doors.

just-drinks deputy editor Chris Mercer attended the Vinopolis tenth anniversary dinner last night, held in the attraction's Cantina restaurant.

Vinopolis board members took the opportunity to announce expansion plans for the attraction. Planning permission has already been received to knock through into a further four disused railway arches, under which Vinopolis is built.

The new space will be used to build a 'street' that is likely to tie the attraction closer to food and wine matching. There are already plans to install a 24hr bakery.

It is no secret in the wine and spirits trade that Vinopolis has struggled to make money for much of its ten-year history.

However, green shoots of optimism at the arrival of new managing director Rupert Ellwood two years ago appear to have blossomed. There is now talk among board members of turning a profit, while extra events, from tastings to comedy nights, have injected more life into the attraction.

Chris Mercer, deputy editor.

Stella Artois - curioser and curioser

Fri, 20 Nov 2009 12:25:00 GMT

Take a look at this email from InBev UK, which I received earlier this week.

How very intriguing. I'll let you all know on Monday just what on earth is going on.

Dear Olly

Vous �tes invit�s to the exclusive launch of Le Recyclage de Luxe Show, premiering on le cyberspace on 22 November.

And to make votre exp�rience plus chic, Stella Artois would like to offer you a haute-cuisine three-course TV dinner to enjoy while watching the show.

To have this magnifique gourmet dinner delivered straight to your door between 6pm and 8pm on the evening of the premiere, please RSVP with your name, delivery address, food allergy information, any special dietary requirements and your choice of menu.

TV Dinner Menu

Entr�e: Pork Rillettes with Crusty French Bread, Cornichons, Sauce Vierge and a Baby Leaf Salad
Plat Principal: Coq au Vin - Slow cooked Chicken in Red Wine with Smoked Lardons, Silver Skin Onions, Button Mushrooms, Bay & Thyme
Dessert: Profiteroles au Chocolat - Chocolate Profiteroles filled with Pastry Cream
Boisson: 1 x bottle of Stella Artois

Option V�g�tarienne
Entr�e: Remoulade, Marinated Olives, Escarole Salad and Carrot R�p�es with Crusty French Bread
Plat Principal: Roasted Ratatouille, served with Pur�e de Pommes de Terre and French Beans with Garlic Butter
Dessert: Profiteroles au Chocolat - Chocolate Profiteroles filled with Pastry Cream
Boisson: 1 x bottle of Stella Artois

Wine tasting etiquette

Tue, 17 Nov 2009 16:46:00 GMT

Young wine critic Matt Skinner has been stung in the UK this week after it emerged that he does not taste all of the wines that are recommended in his annual guide.

Skinner, an Australian who became a household name in the UK as the wine guru for chef Jamie Oliver, did not taste all of the wines recommended in his The Juice 2010 book.

Having thought about it, and weighed up Skinner and the publisher's excuse that "a lot of the wines in the book are consistent each vintage", this looks bad.

Publishing deadlines or not, this sort of practice undermines consumer confidence in the authority of wine critics - which could be detrimental for the industry.

FDA probe on caffeine and alcohol

Mon, 16 Nov 2009 17:35:00 GMT

The Food and Drug Administration's probe on caffeinated alcoholic beverages raises several important questions.

While the FDA is adamant that it has yet to make up its mind on the drinks, it left Friday's conference call listeners in no doubt that it sees no reason why caffeinated alcoholic beverages should be considered legal - without fresh regulation.

However, there are several difficult issues with this investigation.

The first is that one must question why the FDA has not looked at this before, given that caffeinated alcoholic drinks have been on the market for more than two years.

On the industry side, one must ask why, according to the FDA, nobody has sought clearance for these drinks?

The problem the agency and industry face is that there appears to be a lack of clinical scientific evidence on the effects of adding caffeine to alcohol. How do you nail down added caffeine as a culprit?

Assuming a ban is introduced, where does this end? The concept of ready-to-drink alcoholic beverages containing caffeine is merely an extension of the consumer trend for mixing spirits with caffeinated energy drinks.

Is the FDA also going to ban bars from selling vodka and Red Bull combinations? Incidentally, it is believed in the industry that the 'vodka Red Bull' phenomenon accounts for a significant proportion of the energy drink maker's sales.

This issue has quite a few miles left to run, in our opinion.

Chris Mercer, deputy editor.

just-drinks on CNBC

Fri, 13 Nov 2009 17:20:00 GMT

just-drinks deputy editor Chris Mercer was called up for a chat on the rise and rise of InBev (now Anheuser-Busch InBev) on the CNBC business news channel yesterday evening (12 November).

To see Mercer's debut as a live television pundit on the mighty A-B InBev, click here.

The piece was broadcast live on CNBC's Europe Tonight programme and followed A-B InBev's third quarter results announcement.

UK still in recession...

Fri, 13 Nov 2009 15:30:00 GMT

It seems the eurozone economy has finally emerged from recession.

Figures show that the economy grew 0.4% between July and September after a 0.2% shrinkage between April and June.

The fastest economies were France and Germany, whose economies grew 0.3% and 0.7% respectively.

But while France and Germany are now said to be out of the recession, it seems the UK is still in the thick of it. The country has contracted for six consecutive quarters, proving its crawl out of the depression may take some time.

Analysts have said that the German economy emerged from the recession "earlier and faster" than many had thought. This can be put down to the country's financial sectors accounting for a smaller proportion of their economies, the BBC reported.

Good news also for Italy, Austria and Slovakia, who also emerged from recession in the third quarter.

Read more about the eurozone's emergence from the recession on the BBC newspage here.

Baker eyes First Quench stores

Thu, 12 Nov 2009 15:18:00 GMT

Bizarrely, it was confirmed to just-drinks today (12 November) that Greggs, yes the baker, is interested in buying around 100 Threshers stores from the collapsed First Quench Retailing group.

It seems First Quench is now nearing its bid deadline after collapsing into administration last month, and it has certainly attracted a lot of attention.

According to administrators KPMG, the company has had "stacks of interest", with Greggs just one of those. If the baker is successful I don't think we can expect a sausage roll with each purchase of wine but more likely a conversion of the stores.

Whatever the outcome, with bids in tomorrow, we expect to learn more next week.

You can find the latest news on First Quench Retailing by clicking here.

VAT increase garners industry reactions

Wed, 11 Nov 2009 15:27:00 GMT

With VAT due to be restored to its standard 17.5% rate by the end of the year, many in the industry have voiced their opinions on excise duty.

The WSTA yesterday (10 November) called on the government to cut duty once the VAT rise is implemented, claiming the rise was happening at an "inconvenient" and the "worst possible" time of the year.

The association questioned whether lowering the VAT really had any impact on stimulating consumer demand.

The BBPA echoed those sentiments, asking to be treated on a "level footing" with other sectors of the economy.

While the BRC has said it will be up to individual retailers to decide whether to pass on the increase, Tesco has confirmed to just-drinks that will indeed be the case.

And so the potential effects on the drinks industry once the VAT increases are implemented are yet to be witnessed, but with Christmas on the horizon, a last minute spending surge by consumers may be on the cards.

Click here for more insight into the industry's thoughts on the VAT increase.

"Healthy" alcohol on the horizon?

Tue, 10 Nov 2009 17:58:00 GMT

A solution that can be added to drinks to give the effect of alcohol without the fear of next-day headaches or potential long-term health risks. Is this guy serious?

High quality, "safe" alcohol is what we will all be drinking in 25 years.

That's according to professor David Nutt, who wrote in the UK's Sun newspaper today about his project to develop "synthetic alcohol".

Nutt was effectively ousted from the Government's independent Advisory Council on Misuse of Drugs last month, after several comments on Government drug policy - including that some drugs are safer than alcohol.

Read the Sun article and judge his side project for yourself.

Chris M.

A night at Courvoisier Cognac

Mon, 09 Nov 2009 17:57:00 GMT

just-drinks deputy editor Chris Mercer exchanged the urban rush of London for some country-fication in the relative tranquility of France's Cognac region at the end of last week.

The trip, organised by Courvoisier, saw just-drinks accommodated in the manner it has become accustomed to over the years. Courvoisier's chateau at Jarnac has rooms the size of your average London flat and the type of cellar that you wouldn't mind being locked in for several days.

For Courvoisier, as for other Cognac houses, 2009 has been a tough year.

But then, this is not the first and is very unlikely to be the last recession for the company, which was previously part of Allied Domecq and sold to Fortune Brands following Pernod Ricard's buyout of Allied in 2005.

Cognac as a spirit occupies a strange position in modern France. Courvoisier may have been official Cognac supplier to the French Royal Court in the 19th Century, but with around 97-98% of all Cognac exported, it seems that most French people outside of the Cognac region would these days rather have a Scotch whisky in their drinks cabinets.

In a sense, with strong export links to the US, Western Europe and increasingly Russia and Asia, this is not such a problem. China's emerging middle classes would probably fill swimming pools with XO, given the opportunity.

Also, most 'national' drinks have tended to suffer on their home turf at the hands of 'exotic' imports - homemade wine in France, beer in the UK and vodka in Russia have all been in decline among domestic drinkers.

Yet, lack of penetration for Cognac in modern France is an issue. Courvoisier admits that the industry was caught napping by Scotch in the decades following the end of World War Two in 1945.

As one company representative said, it is an issue because Cognac is, to some extent, sold on its French heritage and culture. Some consumers, particularly in emerging markets like China and Russia, are buying into that idea. The big French fashion houses view France as an important market, because it helps them to sell a certain style to the world. They want French women dressed in their designer clothes and to be seen dressed in them.

Opportunities will continue to abound for Cognac in emerging markets, but the houses are aware of the need to push more in France and it will be interesting to see how this develops.

Chris Mercer, deputy ed.

Monster mission fails for Red Bull?

Mon, 02 Nov 2009 14:45:00 GMT

It seems Red Bull has had its feathers ruffled after the company's loss of a contract by supply pub chain JD Wetherspoon in the UK.

So much so that the energy drink maker has embarked on a 'secret mission' aimed at undermining rival energy drink Monster.

According to Marketing magazine, Red Bull planned to visit JDW sites stocking Monster and "smuggle" some cans of Red Bull into the venue to consume on site.

Repeated calls by just-drinks to Red Bull's UK office have gone unanswered.

Perhaps the team is busy out and about...

IndSpirit 2009 - Day Two

Sat, 31 Oct 2009 08:08:00 GMT

We're back with you, here in Mumbai, for the second and final day of this year's IndSpirit alcobev conference and exhibition.

Yesterday evening afforded us the opportunity to make the most of the networking dinner laid on at the hotel, overlooking the Powai lake.

Following Thursday's severe case of jetlag, a good night's sleep last night was pretty much guaranteed, aided by beers, whiskies and rums - all, as ever, in strict moderation.

Today, the emphasis is on the technical side of the industry. Already, we've had a presentation on energy saving options available for brewers and distillers, and a look at manufacturing execution systems for the brewing industry.

Outside of the conference hall, the All-India Bartending Competition is in full swing: I've just seen the winner of the Goa heat concoct a 'Love Devil'. Not a sentence I thought I'd write on a Saturday morning.

Things are also hotting up as we edge closer to this evening's awards ceremony. Although the nominations have now closed, take a look here for a list of the categories. If last year's show is anything to go by, I'm really looking forward to the Bollywood dance troupe shaking their collective thangs.

IndSpirit 2009 - Day One

Fri, 30 Oct 2009 10:59:00 GMT

We're approaching the business end of day one of IndSpirit here in Mumbai. The morning session was taken up with an opening speech from the head of Radico Khaitan, Dr Lalit Khaitan, and an overview of the Asia Pacific spirits market from Euromonitor. We've also taken a closer look at the alcobev retail scene in India - a country where, of around 4,000 supermarkets, less than 50 offer alcohol for sale. Why? Here's why.

The first afternoon session saw two state excise commissioners, one from Goa, the other from Bihar, face the country's drinks industry to consider the state of India's wildly fragmented duty systems when it comes to alcohol.

What is frustrating to see is that this conversation - also forumed at last year's event - appears to have barely moved forward. Indeed, in 2008 we had four state commissioners to take to task. What remains clear is that the commissioners are open to the idea of broader harmonisation. The dialogue seems to remain anchored, however, to talking about talking.

Where will we be on this matter in 2010? We live in hope.

Elsewhere at the exhibition, the Mumbai leg of the all-Indian bartending competition grows ever more raucous. Tomorrow sees the final, with contenders from across the country looking to mix - and spin - themselves into Indian bartending immortality.

In the exhibition hall, pride of place goes to United Breweries, which has a Team India Formula One car on display. If I keep asking, hopefully they'll finally relent and let me behind the wheel.

Another one for the album awaits, then.

IndSpirit 2009 - we are go

Fri, 30 Oct 2009 05:30:00 GMT

We're back in India.

just-drinks is coming to you live from 2009's IndSpirit alcobev conference in Mumbai. This year's two-day exhibition and conference is about to kick off here at the Renaissance Hotel and Convention Centre in Mumbai.

This being India, the weather is excellent (36 degrees and rising), the organisation is... exhausting to observe and, after last year's terrorist attacks in the city, security is tight.

Like 12 months ago, we also have the All-India Bartending Competition running alongside the exhibition. If last year is anything to go by, then, we can look forward to another all-nighter, trawling the top-end bars of Mumbai, something that wore us out both physically and financially.

Coming up this morning, we have the "Inauguration of the Exhibition" by a "Guest of Honour", joined by "other industry stalwarts".

Sounds motley.

So, keep your eyes peeled for as much India-news as we can garner - and as many adventure stories as our spirits allow us - from this year's show.

Windmills and vodka

Thu, 29 Oct 2009 14:44:00 GMT

Diageo and The Nolet family certainly appear to have gelled well together in the first year of their joint venture.

At the company's headquarters in Schiedman, Holland, a number of journalists were invited to listen to marketing heads talk about the success of the Smirnoff, Ketel One and Ciroc vodka brands.

Philip Gladman, Smirnoff's global brand director was present, as was Peter Fairbrother, Ketel One's global brand director and Marc Strachan, director of brand marketing for Ciroc, amongst many others.

Strachan talked about plans to launch two new flavours to the Ciroc brand - Coconut and Red Berry - in the US in January.

An interesting lunch of salmon lasagne and a number of vodka tastings broke up the day, while Bob Nolet, vice president of the Nolet Distillery spoke enthusiastically of the company's plans to expand the global reach of the vodka brand.

Of the 50-50 joint venture between the Nolets and Diageo, he enthused: "We are very very happy with the partnership and we see that Diageo is the same."

A full interview with Bob Nolet will be published on the just-drinks site on Monday (2 November).

Reborn in the USA

Thu, 29 Oct 2009 12:38:00 GMT

The world's largest economy, the US, has emerged from recession in the third quarter of 2009, figures released today show.

US gross domestic product (GDP) grew at an annualised rate (that's how the Americans measure it) of 3.5% in the third quarter of the year.

That is the best growth rate in the US since autumn 2007 and will fuel optimism that global economic prospects are looking brighter for 2010.

Second quarter (GDP) figures from Japan, France and Germany show that these countries have also emerged from recession. The UK remains in decline, shrinking 0.4% in the third quarter of the year.

However, with relatively high unemployment and public debt levels, question marks remain over how quickly, and to what extent, the world's major economies will recover.

Chris M. Deputy Ed.

just-drinks returns to India

Tue, 27 Oct 2009 11:16:00 GMT

With the clocks going back an hour here in the UK last weekend, I, like most sane (and presumably rich) people, am making a break for the sun.

Last year, I escaped the arrival of Autumn by heading to Mumbai for the IndSpirit alcobev conference. And quite a successful trip it was too.

So successful, in fact, that I'm returning to India this week for IndSpirit 2009.

So, if you're going to be at the conference too, and you'd like to meet up, drop me a line at news@just-drinks.com. And if you're not attending, but you have some questions about the Indian drinks market, give me a shout and I'll ask on your behalf.

Stock up on Czech whisky

Mon, 26 Oct 2009 14:38:00 GMT

Word has reached just-drinks ears that Stock Spirits, the UK-based company that operates mainly in Eastern Europe, is set to launch a Czech single malt whisky.

Stock Spirits intends to released "limited volumes" of the single malt whisky, matured in Czech oak barrels, a senior company bod told just-drinks at last week's TFWA expo in Cannes.

Stay tuned for more details on our news pages.

UK economy shrinks, again

Fri, 23 Oct 2009 09:53:00 GMT

Put the Champagne on ice. The UK economy remains in recession after wrong-footing analysts by shrinking in the third quarter of 2009.

While neighbouring France and Germany this summer returned to growth in gross domestic product, the UK reported today (23 October) that its own economy shrank 0.4% in the three months to the end of September.

Most analysts had expected a small return to growth, albeit of around 0.2%.

The news makes the current recession the worst since UK records began in the 1950s. Coupled with this, the UK jobless rate is around 8%, at 2.47m unemployed.

A timely reminder that, despite renewed optimism from some corners of the drinks industry, we are far from out of the woods.

Chris M.

Minimum pricing - goodbye to all that?

Thu, 22 Oct 2009 16:01:00 GMT

Could that be it for the minimum pricing argument, then?

Today's opinion from the European Court of Justice Advocate General, that setting a minimum price on products is illegal, suggests that the death throes have begun for the idea.

What is most interesting is the language used in the opinion.

"The Commission takes the view in the light of the Court's previous case-law that those rules infringe Article 9(1) of Council Directive 95/59/EC ... on taxes other than turnover taxes which affect the consumption of manufactured tobacco."

Basically, the Advocate General is saying: "We've told you before, so we'll tell you again."

Naturally, the industry would like to see this as a precedent-setting case that applies to all products, as well as tobacco.

While we have three to four months of wait until the final ruling is handed down, there will be many in our industry tentatively breathing a sigh of relief today.

To read the full opinion, click here.