UK: Press round up – AD, Pernod & Fortune - Day 10
Maxxium Worldwide could come under pressure if Pernod and Fortune's Allied Domecq bid is successful, according to press reports today (14 April). The Financial Times warns that the company, established in 1999 by Highland Distillers, Jim Beam Brands and Remy Cointreau to distribute wine and liquor outside the US, could be a centre of conflict if the bid goes through.
Under the original agreement, now split four ways since Vin Sprit Group joined in 2001, Highland Distillers and Remy Cointreau have the right to veto certain new brands coming into Maxxium, the FT says. If Fortune buys Allied's Courvoisier brand, for example, Remy Cointreau may have an issue as it is in direct competition with Remy Martin brandy, which is sold through Maxxium.
Speaking to the newspaper, Matthew Jordan, analyst at Dresdner Kleinwort Wasserstein investment bank, said: "If Highland or Remy decide to veto any new brands, the downside will be to their own return on capital."
Citing industry observers, the newspaper points out that Maxxium could be unwound altogether if Fortune wants Allied's distribution as well as brands, thereby putting it in direct competition with itself.
The newspaper adds that, according to people close to the situation, a deal could be announced as soon as next week.
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
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....
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....
LVMH has said it is not looking to buy Mumm Champagne from Allied Domecq....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Diageo is to launch a new global advertising campaign for Smirnoff Ice. The first ad in the global campaign, 'Garden', launches in Great Britain on April 11th on terrestrial and satellite TV. ...
Maxxium Global Travel Retail is to enter the US duty free market on 1 July 2005, when it will take over responsibility for the brand portfolios currently represented by Future Brands Duty Free and DFD...
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- Focus - Remy Cointreau's H1 Performance by Brand
- SABMiller's troubles fuel M&A rumours
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"