December 10, 2007
just-drinks.com editor's weekly highlights
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One of the more popular stories on just-drinks last week was the warning by French wine producer Castel that it may have to switch from glass bottles to PET next year, in light of supply difficulties and price increases.
The issue of rising commodity costs is looming large over the entire drinks industry as 2008 approaches. Earlier this month, we reported on Anheuser-Busch, Budejovicky Budvar and a host of Japanese brewers warning that rising costs will play a part in their performances next year. In light of this, we took a closer look at the matter, with news editor Jessica Harvey asking how the consumer is going to react to the subsequent price rises.
Elsewhere, the announcement last week that The Coca-Cola Company’s heir apparent and chief operating officer, Muhtar Kent, is to succeed Neville Isdell as chief executive officer will have come as a huge relief to those with a vested interest in the soft drinks giant’s success.
Not only does it finally put the muddled successions of the last two CEOs to bed, but it sends out a clear message to investors, customers and employees that in his four year’s at the top, Isdell has re-energised Coke, and, given it focus and direction.
We’ll have more on this later in the week, so be sure to keep an eye out.
The issue of the pending wine reform within the European Union was the subject of our interview piece last week. While the matter still has some distance left to run, we talked to the chairman of the European Parliament’s agriculture committee, to see which direction things are heading in.
Until next time...
Olly Wehring, Managing Editor
Rising raw material costs have been a feature of numerous companies' results over the past few months. As Jessica Harvey writes, some companies have been able to bolster themselves against this trend by hedging. The longer the rising cost pressures persist, however the more difficult the situation will become while companies prepare to find out how consumers will react to the inevitable rises in retail prices.
In this month's briefing we examine the development of online grocery shopping. We look specifically at the growing online wine market, and examine both the activities of major grocery chains and specialist drinks retailers in the online sector. As would be expected from a sector expanding from a small base, the online food and beverage market is showing strong year-on-year growth. We provide an overview of the key facilitators for this growth, and include chapters on innovation and development, the marketing of wine online and the importance of an online presence. Market share by retailer for the online grocery sector is also provided along with company profiles for Tesco, Sainsbury's, Ocado/Waitrose, Asda, Majestic Wine, Oddbins/Nicolas and Wine Cellar.
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