just-drinks.com October 15, 2007
Issue 392

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Editorial

Olly Wehring

It looks like we entered the mergers and acquisitions season with great gusto last week. A slew of stories have suggested that it’s that time of year again and, naturally, just-drinks is here to keep you up-to-date before anyone else.

SABMiller and Molson Coors led the pack last week, with the announcement of the proposed merger of their US operations. Granted, the two brewers have a regulatory hurdle to clear before the merger goes ahead, but even so, take a look at our analysis of the situation to see what this move could mean for other global brewers like Anheuser-Busch and Inbev.

In the wine world, Constellation Europe upped its South African presence with the purchase of Flagstone last week. Again, we took a closer look at the move , and debated how Constellation could utilise Flagstone to finally help give the country the recognised brand it so desperately craves.

While the Vin & Sprit offload has been floating around for coming up to a year now, reports last week of an additional contender in the shape of private equity firm EQT kept the story on the front pages and drinks companies like Fortune Brands, Diageo, Pernod and Bacardi on their toes. Precisely when this acquisition battle is due to kick off remains unclear, but we’re keeping a beady eye on all developments.

In the soft drinks world, Cadbury Schweppes finally decided to opt for a demerger of its North American operations rather than go for the sale. While the acquisition trail may finally be dead here in the short-term, what’s not to say that other soft drinks companies – such as Coca-Cola - won’t be sniffing around to snaffle brands like Snapple in the future?

Until next time...

Olly Wehring, Managing Editor

Web: www.just-drinks.com
Email: editor@just-drinks.com

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ANALYSIS: MillerCoors deal will alter US playing field [MEM]

News this week that SABMiller and Molson Coors are to team up in the US beer market may have caught the industry by surprise, but the logic is compelling. As Olly Wehring reports, not only can the deal provide a boost to the country's number two and three brewers but it offers a significant challenge to Anheuser-Busch too.

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This month's briefing discusses the Doha development round. Trade officials and diplomats of the 150 World Trade Organisation (WTO) member countries are scheduled to return to the organisation's Geneva headquarters this September to discuss ways in which their governments can cut their food and drink tariffs and production subsidies. The report looks at the latest 'modalities' proposals and what member governments think about the proposals, as well as the political prospects for success in the Doha round.

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