just-drinks.com editor's weekly highlights
In This Issue...
With apologies to those of you who thought we were off the pace yesterday (28 August) – we were off celebrating/commiserating the last day of the British summer, hence no just-drinks output.
While we were away, however, Brown-Forman took the opportunity to snap up the Tequila assets of Grupo Industrial Herradura.
Not everyone remains convinced by the attention given to Herradura in recent months. Robert van Brugge, an analyst at US investment bank Sanford C. Bernstein, said he was unsure whether the acquisition of Herradura would be a great way to break into the buoyant market for Tequila in the US.
“Cuervo and Sauza dominate the mid-end and Patrón is the premium end – it’s tough for anyone else to break into the category,” he told just-drinks. “High-end brands are gaining share but given the growth rate of Herradura, it’s not a game-changing move in the category.”
However, though the independently-owned Patrón is the dominant premium Tequila in the US, there remains a lot of room for rival brands at the top end of the market. And with the distribution strength of Brown-Forman behind it, be sure that Herradura will be a Tequila to watch in the coming months.For full details on the Herradura purchase, click here.
Meanwhile, in New Zealand, Independent Distillers finally dropped the starting flag last week, by confirming that it was open to offers. The company, best known for its RTD brands Vodka Cruiser, Mudshake and FX, is thought to be worth up to A$1.1bn (US$839m).
Lion Nathan may like to think it holds pole position in this race – the trans-Tasman group has already been given the green light by New Zealand’s competition watchdogs to buy Independent should it wish to do so. But I get a real feeling that this one might not be quite so straightforward. Although the big companies like Diageo – happy with Smirnoff Ice – and Constellation – busy consolidating its deal with Modelo in the US – might not get in the ring, there are definite rumblings coming from other drinks companies who see Independent as a good buy. Watch this space.
For more info on Independent Distillers, click here.
Finally, returning to meteorological circumstance, I hear that our readers in the US are having a jolly hot time of things as a heatwave hits the nation. Bacardi told me today (29 August), for example, that they’re about to batten down the hatches as Hurricane Ernesto pays Miami a visit.
Coupled with the World Cup in July, I reckon we’re going to see some record-breaking figures from many drinks companies for 2006. Who says it’s just the British who are obsessed with the weather?
Until next time...
Olly Wehring, Managing Editor
While organic meat and produce are fast becoming mainstream elements in the food market, the organic soft drinks sector has suffered from a lack of new product development and innovation. Annette Farr reports.
Your newsletter details
You are currently subscribed to just-drinks newsletters as: ##EMAIL##
Change your details
To update your email address, change the newsletters you subscribe to or to unsubscribe completely click here.
© just-drinks.com 2000-2006. All Rights Reserved.