August 11, 2008
just-drinks.com editor's weekly highlights
In June, some of you may remember, we ran an interview with Bruce Jack from Constellation. Jack has been brought on board at Constellation to oversee its South African offering, in particular its flagship Kumala wine brand.
A couple of weeks later, I received a letter from Constellation Europe's president, Troy Christensen. In the letter, Christensen – who we interviewed last year – took me to task on my assertion, when speaking to Jack, that Constellation “doesn't have a reputation for focusing on improving value”.
“I welcome the question and congratulate you for holding the trade accountable for its behaviour,” Christensen said. “I would agree that Constellation does not have a great history in this regard,” he conceded, “but we have changed our strategy.”
Any suspicion I had that this could be a hollow statement was cast asunder last week, when Constellation announced the results of a review of its Australian operations. The company will now look to sell certain assets at Constellation Wines Australia and will implement changes to its wine portfolio and production footprint in the country.
Here is a company who, previously, had a reputation for being quicker than most at getting out the chequebook when it came to acquisitions. The announcement last week signifies a clear change in strategy at Constellation. Is this a sign of troubled times at the wine giant? Or a reflection on the times we are all suffering in?
It's certainly not the former, as our interview with Constellation's CEO, Rob Sands, earlier this year can attest to.
Whatever the move suggests, one thing would appear certain. If Foster's is looking for a buyer for its beleaguered Australian wine operations – which many believe to be the case - then the company that many would have pegged as the first to go sniffing round will be staying at home.
Until next time...
Olly Wehring, Managing Editor
Functional drinks may be a relatively recent phenomenon in many markets but they are certainly nothing new in Japan where ‘genki’ energy drinks have been enthusiastically consumed for decades. Moreover, writes Gavin Blair, deregulation has fostered further growth in the health drinks market.
This month, we are offering our subscribers the opportunity to sample another of just-drinks market research reports: the 2007 edition of The international spirits market in China forecasts to 2012. This takes the place of a management briefing - we hope you find it interesting and informative. If you like what you read and would like to find out more about just-drinks' latest reports, feel free to drop Holly an email at email@example.com.
We currently deliver just-drinks newsletters to : ##EMAIL##
To change the opt-in emails you receive, modify your address, or be removed completely, please use this link.
© just-drinks.com 2000-2008. All Rights Reserved.