SOUTH AFRICA: Distell received R46.5m for Martell
Distell received R46.5m in compensation for the termination of the South African production, marketing and distribution rights of the Martell Brandy trademark it sold to Pernod Ricard earlier this year.
At the time of the deal, in terms of a Competition Tribunal finding into its merger, the Stellenbosch-based wine and spirit producer had to give up certain medium-priced spirits. Both companies declined to specify the amount involved at the time.
It became public knowledge in Distell's annual report, released today, where Distell also revealed for the first time that it made a R5m profit from the sale of its retail subsidiary, Western Province Cellars, which it sold last July.
According to Distell MD, Jan Scannel, the local wine and spirits market was likely to remain intensely competitive over the next few years.
"An expected 3% growth in the domestic economy, coupled with the drop in interest rates should benefit consumer demand for our products.
"However, the global economic outlook remains uncertain. Success in the international markets, which is key to our medium and long-term growth, will therefore require a strong focus on the achievement of cost-efficiencies in order for Distell to remain competitive," he said.
As Pernod Ricard, Allied Domecq and Fortune Brands close in on the biggest drinks industry deal since the sale of Seagram, opinion about how the deal will be structured and who stands to win and lose ...
Maxxium Worldwide could come under pressure if Pernod and Fortune's Allied Domecq bid is successful, according to press reports today (14 April)....
It's been a quiet day on the Pernod/Allied Domecq front....
Conflicting reports circulated this weekend over whether Bacardi International is looking to form a counter-bid for Allied Domecq....
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
Pernod Ricard and Fortune Brands are considering a US$13 billion bid for Allied Domecq, the world's second-largest spirits company. Were it to take place, Pernod and Fortune would split Allied's brand...
Pernod Ricard and Fortune Brands are hoping to buy Allied Domecq for around 670p per share, according to press reports....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
- Cuba-US Normalisation: Bacardi, Pernod Winners?
- Review of the Year 2014 - Part IV: Spirits
- Comment - The Appeal and Perils of Craft
- Sustainability in Wine - Part I
- Time is Right for Refresco Gerber Exit
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Diageo rolls out Beckham's Haig Club to US
- Diageo welcomes verdict on Crown Royal "confusion"
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- just-drinks on-trend: Craft beer - fortunes and future