Blog: Diageo and Moet Hennessy - meant to be?
Olly Wehring | 23 April 2009
The rumour-mill has cranked into gear again this week. The latest speculation is linking Diageo to a possible move for Moet Hennessy, the wine and spirits arm of LVMH Moet Hennessy Louis Vuitton.
Indeed, last week, the drinks giant was also mentioned in the same breath as Brown-Forman, although such a transaction is highly unlikely, just-drinks understands.
The Moet Hennessy situation, however, appears more likely, despite the French company's insistence yesterday (22 April) that it is not in talks with anyone over the future of the division.
For a start, unlike the majority of the drinks industry, Diageo is in a pretty healthy position when it comes to future acquisitions, with sources close to the company telling us that Diageo can get its hands on as much money as it would need, “if the transaction was right”.
Moet Hennessy is certainly the right transaction for Diageo, owning as it does the world's leading Cognac and Champagne brands in Hennessy and Moet & Chandon respectively. Diageo is notable by its absence in these two categories.
This, coupled with the fact that Diageo already owns 34% of Moet Hennessy and has three representatives on the unit's board, and it's hard to see anyone else in the running.
Factor in also the disparate nature of LVMH's portfolio, which includes TAG Heuer watches and Christian Dior perfumes. Although the drinks division provides a steady stream of revenue for the group, should it need to raise cash in the current economic climate, a sale to Diageo would involve a quick and easy process.
So long as Diageo can stump up in the region of EUR12bn (US$15.67bn).
To support the release of its latest report, entitled ‘The Economic Impact of Scotch Whisky Production in the UK’, trade body The Scotch Whisky Association has released this video, highlighting the si...
The Coca-Cola Co is in the middle of a major restructuring plan, affecting jobs around the world. The company is also downsizing its packaging....
One, perhaps minor, consequence of the conflict in Ukraine appears to be a fall in sales of Russian vodka in the country....
Diageo has jumped onboard Google's latest interactive maps and is opening up the virtual doors to four of its distilleries. ...
- Comment - Diageo Steps Up Defence of Haig Club
- just the Preview - Diageo Q2 & H1
- just the Facts - Top 20 US Beers by Value, Volume
- Focus - Diageo's H1 Results by Region, Brand
- Comment - Spirits - Where Next for Scotch Whisky?
- Belvedere vodka tie-up over new James Bond film
- Diageo speaks out over supplier contract changes
- Brown-Forman appoints Jack Daniel's president
- Diageo inks UK distribution deals
- ASA rejects Haig Club ad complaints
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages