Champagne in the BRIC (Brazil, Russia, India, China) Countries Market Overview and Forecasts to 2014
This report covers key aspects of the champagne market in these four emerging economies. Data is provided on market value and volume, company and brand shares; distribution channels; expenditure and consumption per capita.
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Diageo is splashing the cash this week with a US$2.1bn deal to buy Turkey's leading spirits producer, Mey Icki. The drinks giant has been cooking up the move for the last few months and has found a willing seller in Mey Içki's owner, TPG Capital, which had been planning to list the spirits group on the Istanbul stock exchange.
For Diageo, this deal is another example of its thirst to expand in emerging markets via acquisitions of well-placed local players. If approved by regulators, Diageo will have both a stronger platform for its international brands in Turkey and also a leading position in the market for the domestic spirit, raki. The transaction has similarities with pending Diageo deals in both China and Vietnam.
One sticking point in Turkey remains the six-year tax dispute between international drinks companies and customs officials - a dispute that could cost Diageo alone GBP100m if it loses the argument. However, earlier this month, just-drinks reported that the Turkish Government is set to side with the drinks companies in order to end the stand-off.
Diageo's deal means this is now more a case of when and not if.
Results-wise, Foster's Group and Pernod Ricard dominated the headlines last week.
The former took the release of its first-half results announcement as the opportunity to confirm that its beer and wine demerger is all set to go. Once again, as we saw earlier this year with Fortune Brands' plans for Beam Global Spirits & Wine, talk turned very quickly to a bidding war for one – or both – of the not-yet-split entities.
M&A is a fun line of speculation, I know. But, the keenness to drum up whats, whens, and whys has again failed to take a broader view. Namely, is a transaction all that inevitable, or will the short-term headlines busy themselves more with how the existing company will perform, moving forward?
Pernod, meanwhile, was in celebratory mood on Thursday, when it posted its first-half figures. The company had China's love of Cognac to thank for the upbeat atmosphere, and we were on-hand to see how the French like to party. I also got to spend half an hour with CEO Pierre Pringuet – stay tuned for that interview later this week.
Incidentally, if you don't yet follow just-drinks on Twitter, then might I suggest you get involved: my tweets from Paris on Thursday brought the press conference directly to our follower's desktops.
We aim to please.
Until next time...