Blog: Remy Cointreau to lure Diageo away from Moet?
Chris Mercer | 8 April 2011
Deutsche Bank thinks that Diageo would be better off ditching Moet Hennessy and walking into the, relatively speaking, open arms of Remy Cointreau.
You can certainly see the logic. Moet Hennessy's owner, Bernard Arnault, has consisently said that he doesn't want to sell up. Meanwhile, Diageo is choking on Pernod Ricard's Cognac fumes in China, without a brand of its own.
Added to that, Deutsche Bank thinks that Diageo will generate more synergies from a deal with Remy Cointreau.
However, the fact that the value of Diageo's 34% stake in Moet could be enough to cover a takeover of Remy Cointreau says something. Moet is the bigger prize, if only the drinks giant can find a legal way to loosen Arnault's grip. It also offers Diageo ownership of the world's best-selling Champagne - Moet & Chandon.
I'm sure this is something that Diageo has mulled at different points over the last few years, but it's far from a straightforward decision. If it wanted to plump for Remy, wouldn't it have moved before now?
At the same time, Diageo could be saving itself for a swoop for Jim Beam.
Here's a round-up of the top stories on just-drinks last week, featuring Pernod Ricard, soft drinks NPD, the Champagne category and international beer brands....
Heavy metal legend Bruce Dickinson - lead singer of the band Iron Maiden, for the unitiated - is clearly a man not afraid to get his hands dirty. ...
The homebrewing revival continues in the UK - and evidence has come that even the supermarket chains are taking it semi-seriously. ...
Does Pernod Ricard have something to hide? In a press conference after the release of full-year results today, only a quarter of the 100 minutes were given over to questions from journalists....
- Allegro: The shape of things to come at Pernod?
- Pernod Ricard's Allegro cost-saving programme
- Comment - Diageo's Distill Ventures: One Year On
- The End of the Road for International Beer Brands?
- Pernod Ricard's FY Performance by Region, Brand
- Pernod Ricard set for CMO switch
- ASA bans Jägermeister TV ad
- Wine Australia reports death of UK, Europe boss
- Diageo takes Haig Club to Singapore airport
- Pernod bemoans tough FY as sales, profits drop