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.
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....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Diageo Africa president O'Keeffe on beer & spirits
- Travel Retail needs a disruptor - Comment
- What the future looks like for Australian wine
- Diageo ready to lock horns with AB InBev in Africa
- Heineken sees Tesco pull SKUs in UK
- Coca-Cola Co announces senior executive shake-up
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Heineken mulls M&A with $1.75bn notes issue
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global liqueurs insights - market forecasts, product innovation and consumer trends research