Blog: Allied's allies
Chris Brook-Carter | 22 August 2003
For to be honest is seems extraordinary that Allied's shares should have jumped nearly 14p to 395p yesterday on the rumours that Brown-Forman was planning a takeover of its bigger rival. You would think investors would have heard the boy cry wolf enough times over a possible merger/takeover of Allied in the last few years.
Only a matter of months ago it was Bacardi who were linked to the Bristol-based group, now we are led to believe that a Jack Daniel's/Beefeater alliance is only a few signatures away - possibly with the help of Bacardi.
Certainly on the surface a Brown-Forman/Allied alliance is an attractive proposition, so if there is truth in the whispers then the excitement would be understandable.
But analysts believe a bidder is likely to need to pay 450p per share, or US$7.66 billion, for Allied, which seems a bigger bite than Brown-Forman could swallow, particularly as the American is not a pure drinks player, running among other businesses a luggage company.
Whisk(e)y companies spend a lot of money and effort ageing their products for that premium taste....
PepsiCo created a stir last week with the news it is testing a product called Caleb's Kola, with some in the media claiming it was the beginning of a new “craft soda” category....
SABMiller's bid to widen the appeal of beer is very much in evidence at its latest 'House of Peroni' - with beer cocktails and a bigger bottle for the Italian lager brand on offer. ...
Here's a round-up of the big stories on just-drinks last week, featuring PepsiCo, SABMiller, the Scotch whisky category and the US wine market....
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Focus - Pernod Ricard's Q1 sales by brand
- Time for Heineken to make a European break
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Whisky downturn slows Diageo's Scotch spend
- Beam Suntory, Edrington part ways in Travel Retail
- Pernod Ricard sees sales lift in Q1