August 24, 2009
just-drinks.com editor's weekly highlights
Online Auction Closing 6th October 2009
Diageo will report its full-year results later this week in what will be seen as a health check for alcoholic drinks sales in the global economic downturn.
As expected, the owner of household brands such as Smirnoff and Guinness reported a sales slip in its third quarter, due to destocking in recession-hit markets. The group stuck to its operating profits forecast of organic growth between 4% and 6%, however.
While it is certainly still early days, there is still growing optimism among analysts of an economic recovery in key consumer markets. France and Germany have both seen gross domestic product growth in their most recent quarters, while the Institute of Chartered Accountants in England and Wales has said today (24 August) that it expects the UK economy to grow in the current quarter. The International Monetary Fund, meanwhile, believes the US economy will return to growth next year.
Diageo's results this week will also not pass without comment on the group's proposal to cut around 10% of its workforce in Scotland. Opponents of the plan, while orchestrating a highly-charged media campaign, were forced onto the back foot last week after their own consultants told them that job losses were inevitable and that alternatives to Diageo's proposal could prove costly.
For a preview of Diageo's results, click here.
Also this week, Heineken is set to release its first-half figures. For our preview of those, click here.
Back to last week, however, and we saw a row blow up in Australia. No, not about the nation's Ashes defeat to England – although one would understand that – but over the role of Australia's generic wine body, Wine Australia. The organisation was accused by one member last week of spending too much of its time and money promoting higher priced wines as part of its 'regionality' drive.
Speaking of rows, SABMiller's legal fight with Diageo reached a conclusion last week - for the time being, at least.
Finally, features-wise, we took a closer look at the approach Australia's government has taken of late when it comes to alcohol, while Chris Losh, in his usual combative mood, warned drinks companies against querying what it is that the consumer tells them.
Until next time...
Olly Wehring, Managing Editor
With increasing pressure being placed on product development and innovation, it is essential for any business to understand changing consumer trends and the impact these can result in.
Industry advocates may have branded the recent tax rise for RTDs in Australia a “tax grab masquerading as health policy”, but it has shown the Government’s resolve when it comes to alcohol regulation. And, Ben Cooper writes, as the Government ponders the findings of its Preventative Health Taskforce, the industry may have to steel itself for further policy initiatives.
With the drinks industry not always getting a good press, it really needs to make its case before governments and international organisations. As a result, effective lobbying is crucial for the drinks industry on the national and international political scale. Here just-drinks takes a look at how the drinks industry goes about its lobbying business and focuses on who takes its message to political power brokers around the world. It’s a tough job, but the rewards of an effective lobbying strategy can pay dividends many times over in terms of legislation that does not punish the sector and government policy that is realistic as well as effective.
We currently deliver just-drinks newsletters to: ##EMAIL##
To unsubscribe from this newsletter immediately click here.
To review, amend or unsubscribe from your current newsletters click here.
© just-drinks.com 2000-2009. All Rights Reserved.