Blog: A tough game of catch-up
Chris Brook-Carter | 14 April 2005
The flood of media reports concerning Allied Domecq that has hit the world’s news pages has been enough to cause even the hardiest consumer of information indigestion this last week.
We hope, therefore, you have found our daily roundups of the leading angles of the story useful. If you haven’t seen them yet, I would suggest checking them out by following the link at the bottom of this blog.
As analysts finish weighing up possible outcomes for a successful Pernod/Fortune bid, the spotlight has inevitably turned this week to whether a rival offer for the owner of Teacher’s Scotch and Malibu coconut rum will emerge.
Allied investors will be hoping the company’s CEO Philip Bowman can flush one out. Bacardi is placed it firmly at the top of the list of potential suitors.
The Bermudan-based drinks group is believed by some sources to be sounding out a number of fellow spirits companies and venture capital firms about the prospect of mounting a joint assault on Allied. It would certainly be surprising if Bacardi not in the very least looking into the opportunity. The company will be left in Pernod’s wake if the French group is successful. Moreover, deals of a similar nature are very thin on the ground so Bacardi’s chances of successfully playing catch-up would be limited.
"Unless [Bacardi and Brown-Forman] have already looked at Allied and rejected a bid, we think it quite likely that they will assess Allied as an acquisition opportunity within the next few weeks. This has the potential to create a bidding war," said one analyst.
However, Bacardi is poorly positioned at the moment to launch such a bid. The company is without a CEO and is still grappling with the expensive acquisition of Grey Goose, which it bought last year. It is a situation that has led many analysts and commentators to believe the producer of the world’s favourite rum brand will sit this one out, happier to pick up the brands Fortune and Pernod are forced to sell after the event.
Importantly, Pernod also has a significant head start on any rival bid, which may prove decisive in winning Allied approval.
Paul Walsh just can't stay away from the drinks industry....
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
- Ten questions for Diageo - Analysis
- Have spirits companies forgotten the mainstream?
- How craft beer has shattered its US shackles
- Ashwagandha - The next functional drinks trend?
- New CEO sparks optimism at Coca-Cola - Analysis
- Moet Hennessy unaffected by LVMH Dior buy
- BrewDog moves into spirits with LoneWolf launch
- Portman Group heads to Tesco for new chief exec
- William Grant names Europe & NA Travel Retail head
- Johnnie Walker Bourbon Cask & Rye Finish - NPD
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Craft Beer: Coming of Age or Past Its Prime?
- Myanmar - ISA Country Report