GERMANY: Eckes to pull out of alcoholic drinks
"We found we needed to focus to compete," said Eckes CEO, Herbert Verse. "Margins have been reduced by the expanding chains and big discounters. There have also been a lot of mergers which allow competitors to feed more money into big advertising campaigns."
Verse said the company was not yet in negotiations with any potential buyers. However, he did say that the money generated by the sell-off would be used to expand the company's fruit juice business across Europe.
Included in the sale will be the company's subsidiaries, Stock Plzen, the largest spirits company in the Czech Republic, Stock Austria and Stock S.p.A. in Italy.
Stock Plzen sold 26.2m litres of spirits last year and has more than a 30% share of the Czech spirits market. Stock S.p.A. posted a net profit of €2.3m ($2.2m) on sales of €93m ($91.2m) in 2001, while Stock Austria generated a turnover of €40.7m in 2001. Stock Austria's own brands include Stock VSOP, Bouchet, Grappa Julia, Mautner Vodka and Mautner Rum and it also distributes Campari, Cynar, Absolut Vodka, Fernet Branca, Jim Beam and Bols.
As a whole, Eckes Group recorded revenues of €1.3 billion ($1.27 billion) in 2001, with alcoholic beverages accounting for almost a third of sales.
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 drinks distributor, Central European Distribution Company (CEDC), has announced that it has received approval from Poland's anti-monopoly regulator for its acquisition of Bols Sp. z o.o....
The Absolut Spirits Company (ASCI) has received the go-ahead from the US Federal Trade Commission for its acquisition of Cruzan International....
Central European Distribution Corporation (CEDC) has announced that it has signed a definitive stock purchase agreement with Remy Cointreau/Botapol Management B.V. and Takirra Investment Corporation t...
Goldman Sachs has initiated coverage of Davide Campari-Milano shares....
Luca Cordero di Montezemolo, an independent director on the Davide Campari board, has handed in his resignation to the Italian company....
Remy Cointreau has gone to holders of one of its bonds to gain permission to complete the sale of its stake in Bols....
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- Mike’s Hard Lemonade Could Be a Hard Sell
- What do A-B InBev results mean for SABMiller deal?
- just The Preview - Anheuser-Busch InBev's Q4 & FY
- Diageo "smart bottle" targets consumers at home
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- Tesco reinstates Dan Jago following suspension
- Diageo adds Dubai to Johnnie Walker skyline series
- Asahi Beverages CEO to step down - report
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report