SWEDEN: Acquisitions drive V&S profits up
The Swedish state-owned drinks group, Vin & Sprit, saw its sales increase 35% in 2002 to SEK9,093m (US$1,085m), up from SEK6,725 a year earlier, in part thanks to acquisitions, which saw operating profits increase to SEK2,037m from SEK1,764m.
The company said in a statement that the transition into the Maxxium distribution system had been finalised and that as a consequence exports were developing well.
Sales in its flagship brand Absolut increased to SEK5,074m, despite a declining US dollar exchange rate. "The increase can be attributed both to greater volumes and to the fact that V&S now controls a larger part of the products value chain through the new distribution organisation. Other export brands have also developed positively," the company said.
Meanwhile at home, net ales for V&S brands on the Nordic markets were up slightly to SEK1,511m from SEK1,419m.
The company's CEO Peter Lagerblad said: "The V&S Group strategy has since several years been guided by an insight of the need to grow internationally, both to utilise the benefits of scale and to compete successfully with other major international players. The continuing growth in profitability shows that this strategy was right."
The company spent SEK806m on acquisitions last year and SEK383m in investments in fixed assets. V&S said that among the key developments this year would be the launch of Absolut Vanilia.
Combining genuine brand chic with selling millions of cases is to dream the impossible dream for most spirits executives, but for Bengt Baron, president and CEO of Absolut owners V&S Group, it is a re...
Having been something of a European institution for years, the end of duty-free, the lowering of some Nordic duty rates and cheaper prices in domestic supermarkets have combined to reduce the allure o...
Diageo's spiced rum brand, Captain Morgan, has made strong gains in the US spirits market but, as David Robertson reports, it has so far been unable to replicate this success in other markets....
Flavoured vodkas have been a major success story in the US where they have prospered on the back of strong sector growth and premiumisation. With European markets also showing consistent growth and so...
The Absolut Spirits Company has completed its acquisition of Cruzan International....
Cruzan International has received shareholder support for its pending merger with The Absolut Spirits Company....
A shareholders meeting to decide whether Cruzan International should approve a merger deal with majority stakeholder Absolut Spirits has been called by the company's board of directors....
V&S Absolut Spirits saw sales of its flagship vodka Absolut rise 9% last year on the back of surging sales outside the US....
- The End of the Road for International Beer Brands?
- Comment - Another One Bites Bacardi's Dust
- Allegro: The shape of things to come at Pernod?
- Pernod Ricard's FY Performance by Region, Brand
- US craft vodka puts squeeze on Pernod's Absolut
- Mast-Jägermeister targets UK off-trade boost
- Pernod bemoans tough FY as sales, profits drop
- ASA bans Jägermeister TV ad
- Bacardi announces CFO switch
- SABMiller exec to become CFO at Beam Suntory