UK: Absolut pulled from Seagram deal
Swedish drinks monopoly Vin & Sprit is believed to be pulling the lucrative distribution rights for Absolut Vodka out of the Seagram portfolio for the upcoming race for the Canadian drinks company.The result of the decision will be to wipe billions of dollars off the value of Seagram's drinks arm. V&S it is believed wants to sell its distribution rights off in a piecemeal fashion geographically.One analyst said that the loss of Absolut could see Seagram's value fall from $8.4 billion to around $6 billion.Recent rumours that V&S and Allied Domecq would submit a joint bid are now considered unfounded. It is seen unlikely that V&S, as a government body, would want the secondary and tertiary brands that Allied Domecq spun off. The deal for the Absolut rights are now expected to be negotiated after Seagram has been sold.The removal of Absolut might be to Allied's favour anyway. The smaller bidding price will be in Allied's favour, who are financially weaker than nearest rivals Diageo, but who can deliver far greater cost savings than anyone else on the deal.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 15 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Focus - Edrington's FY Performance by Brand
- Pernod relies on Indian whiskey to crack Africa
- Hail Marie Brizard: But, For How Long?
- 5 reasons why Constellation's Meiomi buy works
- NPD: The Clear Soft Drink Trend is Back
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Diageo sells "non-core" Gleneagles
- Pernod Ricard allays Havana Club shortage fears
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- The IWSR Company Profile 2014 – Remy Cointreau
- Global Tequila insights - market forecasts, product innovation and consumer trends research