US: New Year greets Allied and Miller with RTD headache
In yet another setback for the RTD category, Allied Domecq and SABMiller are scaling back their joint operations in the category and reducing inventories of Stolichnaya Citrona and Sauza Diablo, because of weak consumer demand.
"The brands have not met our expectations," SABMiller spokeswoman Molly Reilly said on Tuesday.
The cost of the decision will be in the region of US$10m to US$12m, Reilly said, although it is unclear how this will be split between the two companies.
Money will be used to buy back unsold cases of Citrona and Diablo from Miller's wholesale distributors. Some of the product will be dumped.
The move however does not mark the end of the brands, which will continue to be sold by SABMiller. However, the focus will now be placed on regions where Citrona and Diablo have had the most success.
The industry has been awaiting such an announcement since SABMiller revealed a weak US performance in November.
In the nine months to September 30, 2002, its US market share fell to 19.2%, down 0.5% on the prior year period. And there was talk that Stoli Citrona and Sauza Diablo could be withdrawn altogether, after claims that the launch of these RTDs caused the group to take its eye off its core beer market - at a time when RTD growth was faltering - allowing rival Anheuser-Busch to steal a march in the beer sector, with a major push behind its core beer brands.
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 ...
Drinks producer and distributor Todhunter International has said that its controlling shareholder, CL Financial, is interested in acquiring some of the brands of Allied Domecq that may become availabl...
Pernod Ricard has had its rating raised....
China Resources Snow Breweries Limited (CR Snow) has entered into an agreement with the Fuyang City government to acquire the assets of the Fuyang City Snowland Brewery Company in Anhui province for U...
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
Following its recent re-launch in the UK, SABMiller has introduced its Italian lager brand Peroni Nastro Azzurro to the Romanian market....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Fideuram Wargny has upgraded its rating of Pernod Ricard to 'buy' from 'hold'. Its analysts argue that the merger talks with Allied Domecq is a catalyst for share growth....
- Why consumers don't care about vodka's provenance
- Pernod Ricard's FY Performance by Region, Brand
- Japan follows in Scotch whisky's footsteps
- Brown-Forman's Q1 Performance by Region, Brand
- Pernod Ricard's FY fiscal-2015 - Preview
- Diageo launches glass Bulleit & Cola bottles
- Pernod Ricard "in line" after full-year results
- Pernod Ricard releases social medial guide
- Bruno Mars rum rolls out across US
- Brown-Forman CEO unfazed by FX headwinds
- Global gin insights - market data, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research