AUS: Lion Nathan brands to be sold through Bacardi JV
The trans-Tasman company said today (6 June) that it will retain trademark ownership of of the two brands and maintain responsibility for brand marketing.
With the recent RTD tax changes in Australia creating "a level of uncertainty" around the category, Lion Nathan said it believes this will cause a decline in the category.
"This likely decline in the RTD category has changed the financial risk profile of the category," said LNA managing direction Andrew Reeves. "Our decision to use the Bacardi-Lion JV as the route to market McKenna and Inner Circle Rum will help mitigate these risks."
The new initiative will begin 1 October. Lion said the financial impact would be immaterial.
"Spirits and RTDs remain a very attractive growth option for Lion Nathan as we are currently a relatively small player in the spirit and RTD market and we believe that the Bacardi-Lion joint venture offers a strong platform to achieve our ongoing growth aspirations," added Reeve.
The Bacardi-Lion portfolio includes Bacardi, Dewar's, Bombay Sapphire, Grey Goose and 42 Below.
The Australian drinks industry has certainly experienced a shake-up in the last week following Coca-Cola Amatil's rebuffal of Lion Nathan's A$7.7bn (US$4.75bn) takeover bid. The offer, which Lion Nath...
PepsiCo and Britvic will be taking its Pepsi Raw natural cola on an 'office sampling' campaign this month....
Beam Global Spirits and Wine is making changes to its marketing team, as it gears up to promote newly acquired Cruzan Rum in the US....
The top ten stories published on just-drinks this week:...
Bacardi is offering consumers the chance to be in the passenger seat next to Michael Schumacher, the Formula One racing driver, on a racetrack circuit, as part of its responsible drinking campaign....
An advertising campaign based on the 'Authentic Caribbean Rum' marque has been launched today (26 November) in a bid to raise consumer and trade awareness....
Rémy Cointreau has posted a slight lift in operating profit for the first half of its fiscal year....
Diageo has rolled out a new blend of its Captain Morgan rum brand across the US....
- It isn't just men who like beer - Comment
- Why sports drinks fail to ride the Olympic wave
- What do US wholesalers think of spirits trends?
- How the craft economy is loosening alcohol laws
- Experienced hands hold firm at CCEP - Analysis
- Diageo merges US, Canada spirits units
- Johnnie Walker's Bourbon bent "coincidental"
- "We're not complacent about Brexit" - Diageo
- Luxury and e-commerce a "natural fit" - Diageo
- Diageo's Johnnie Walker set for festive push in TR
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends