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.
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....
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Analysis - Remy's Cognac "dead-cat bounce"
- 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
- Whisky downturn slows Diageo's Scotch spend
- Beam Suntory, Edrington part ways in Travel Retail
- United Spirits sees Q1 net loss
- Pernod Ricard sees sales lift in Q1