Coca-Cola invests in Euro 2008 effect
26th June 2008 14:02

just-drinks has touched down in Vienna for the Euro 2008 semi-final between Spain and Russia tonight, courtesy of tournament sponsor Coca-Cola.

The company boasts a "close relationship" with football, having sponsored these championships since 1988 and the World Cup for 30 years.

Coke's closest player affiliations, with Wayne Rooney and Ruud van Nistelrooy, have run their course in the tournament with Holland out and England failing to even clear the first hurdle.

However, the brand has been more successful with sponsored team Germany - who last night reached the final - and "Coca-Cola Kid" Colin Kazim-Richards, who has gone from a GBP250,000 "win a player" Coke promotion to representing Germany's semi-final opponents last night, Turkey.

We flew into the Austrian capital yesterday, with views of the Döbling and Floridsdorf wine growing areas and the huge River Danube, before congregating in the luxurious Coca-Cola Lounge to watch last night's game on Austrian TV.

The only slight glitch to the evening's entertainment was a television blackout during the game, which meant we'd missed Germany's second goal in a 3-2 thriller. In the shelter of our lavish surroundings though, we were completely oblivious that this signal interference, which had affected the whole of Europe, had been caused by a horrendous storm right on our doorstep. Journalists eh?

The reporter in me has, however, begged a few questions of Coke's other sponsorship activities - and not just for another free trip, honest. They say while Euro 2008 is high on the agenda, the company will take this summer's Beijing Olympics by storm as it seeks a true stranglehold in the buoyant Chinese market.

I have also been introduced to Coke's recently acquired Glacéau Vitamin Water, a nutrient boosted product the company bought from its founder Darius Bikoff for GBP2.1bn (US$4.1bn) last year. After conquering the US market through endorsements to Shaquille O'Neal and 50 Cent, the brand has been launched in the UK and is now destined for the rest of Europe and Canada, just-drinks was told.

Offerings like Glacéau will be an essential string to Coca-Cola's bow as a healthier alternative to CSDs.

Coca-Cola will be about as neutral as just-drinks at tonight's game, although perhaps the red-kitted Spanish will be easier on the eye than the Pepsi-esque red, white and blue of Russia.

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For sale: One historic vodka brand, ownership disputed
16th June 2008 15:24

The production line of M&A deals being churned out by the drinks world looks set to continue with the news today that SPI may be about to hang a for sale sign around the neck of its Stolichnaya vodka brand.

It is the logical step for the long-term health of the brand. SPI currently owns the brand outside of Russia with the Russian government the owner at home. Pernod Ricard has a deal with SPI for the distribution rights on the global market, but, following its successful bid for Absolut, that contract is set to end.

Before Pernod, SPI had a similar deal with Allied Domecq and before them Diageo.

Meanwhile, the battle for the rights and heritage of the brand rages on between SPI and the Russian state.

Of course, there would be a number of other drinks groups eager to take on the distribution rights of such a brand, not least of which is Beam Global Brands, the loser in the race to secure Absolut.

However, Stoli is crying out for some stability and I can't help but feel that an outright sale would be the best option to provide this.

That said, any bidder for the brand is going to be looking for some stability too, and unlikely to want to fork out US$3 billion for the honour of going head-to-head with the might of the Russian authorities.

SPI must know this though, so I can't help but wonder if they think a settlement with the Russian state is close.

As a bit of background on all this it's worth checking out the piece our spirits columnist Patience Gould wrote last month on Stoli and the effects of the V&S deal on the brand. 

As she argues, the surprising thing isn't the chequered history of the brand but the fact that the brand's equity has withstood such a track record, which should give you some idea of why someone will want to pay US$3bn for it.

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Coke and Pepsi - where are they not number one?
11th June 2008 17:34

Back into London town again yesterday (10 June) to attend the British Soft Drinks Association's annual industry lunch. A most entertaining affair, made all the more pleasant by my table partners from AG Barr.

The UK-based company is the proud owner of the soft drink brand Irn Bru, which, I found out at lunch, sells a staggering 12 cans a second to the 6m Scots. Indeed, Scotland is one of only three soft drinks markets around the world in which neither Coca-Cola nor Pepsi holds the top brand, I discovered.

So, drinks folk, it's pub quiz time.

Can you name the other two?

First correct answer gets a can of Irn-Bru. Possibly.

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InBev's chase for Anheuser-Busch – when, not if?
29th May 2008 9:45

It looks like the timing of my week in Russia – thanks to Pernod – could have been a bit better. Even before my flight left London on Friday (23 May), the rumour mill cranked out talk of the possibility of a takeover bid by InBev for Anheuser-Busch.

The general consensus among the analyst community - it seems - is that the rumours are real, and that it is more a case of when and not if InBev will succeed in acquiring A-B. The benefit for A-B, one analyst told me, is that it would gain from InBev a valuable – and “much-needed” – insight into how to run a brewing company as efficiently as possible.

Another analyst has suggested that – like InBev with SABMiller, it seems – A-B will unveil a Plan B, possibly along the lines of a restructuring package. “A-B will probably do all it can to wriggle free,” the analyst said. “With the share price rising, however, it looks like changes will be afoot one way or the other.”

Although the Busch family only owns around 4% of A-B, the clan still holds quite some sway over the company as a whole. While there appear to be conflicting messages coming out of the Busch camp, the fact that at least some interest in a deal has come out of St Louis would suggest that talks between the two brewers around a big table are on the horizon.

Whether the runours are real or not, meanwhile, I can't help thinking that someone, somewhere, is making a lot of money as A-B's share price rises off the back of the speculation. And it's not me, I promise. 

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Facebook generation targets alcopop tax
27th May 2008 14:46

Australian Prime Minister Kevin Rudd has recently come under enormous fire over the government’s proposals for a tax on RTDs.

Only today (19 May), Rudd received a warning from The Distilled Spirits Industry Council of Australia, which said so-called spirit-based RTDs are taxed on alcohol content as an incentive to keep alcohol levels low. But wine-based pre-mixed drinks are taxed on value and already have higher alcohol levels than alcopops.

Now it seems Rudd is facing even tougher opposition – 35,000 savvy Australian youngsters who have revolted against the new tax by forming an online Facebook group called “The Aussies against the alcohol tax increase” (AAATI).

“The Government has come up with a cunning plan to stem binge drinking and its associated violence by taxing everyone some more for our beloved beverages,” the group says. “We work hard everyday to earn a pay cheque for which a fair amount is spent on tax, our mortgage and petrol. Now after all this, most people want to sit down to a hard earned brew...why tax us some more on this liberty?”

Rudd’s opposition said that the taxes would not reduce binge-drinking, and has hinted it will use its Senate majority to block the tax hike.

Other Facebook groups attacking the tax include; 'I liked Kevin Rudd until he declared war on binge drinking' - with 726 members, 'The 70% tax on pre-mixed drinks in Australia is revenue-raising bullsh..t' - with 621 members, and 'Tax increase on alcohol will not stop teenagers drinking' - with 232 members.

Most agree that something needs to be done to curb binge drinking and violence related to it, yet they don’t feel a tax is the answer. Many say it would encourage youths to turn to cheaper alternatives such as drugs.

“The government is really onto something here... stop alcohol related violence in teenage binge drinking by making the drinks so expensive that everyone starts taking drugs as a cheaper alternative. Then we only have the drug related violence and mental health problems to deal with, pure brilliance,” said one member.

“Although I agree that something needs to be done, increasing the price of alcopops is only going to encourage drinkers to buy straight alcohol and mix it. Which is more lethal... 4-8 bottles of cruisers or 750ml of straight tequilla? I can tell you which one hurt the most on the weekend…and it wasn’t the alcopops,” said another member.

It seems the government needs to stand back and take a look at the possible knock-on effects this tax could have. Will it really solve the issue of binge drinking?

There are over 35,000 youngsters saying it won’t make a blind bit of difference, so that must account for something.

In the final words of one member: “We don't need a tax grab to punish binge drinking, nature has her own punishment - the hangover!”

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