Blog: Chris MercerWilliam Grant & Sons makes fast work of Campari deal

Chris Mercer | 21 September 2010

William Grant & Sons says that it always planned to develop the liqueur brands it acquired from C&C Group alongside Tullamore Dew whiskey, but that the offer from Campari was too good. Do we believe this?

No sooner had the ink dried on William Grant's deal with C&C Group and Frangelico, Carolans and Irish Mist liqueurs were being farmed out to a new home in northern Italy for EUR129m (US$167.6m).

William Grant has been left with Tullamore Dew Irish whiskey, the brand that it arguably wanted all along. Both William Grant and Campari said that they got a good price in the subsequent liqueurs deal. William Grant's CEO, Stella David, also stressed that her firm did not go looking for a sale.

Something doesn't add up here.

Campari CEO Bob Kunze-Concewitz said of the deal: "The price of 7.5 times EBITDA is attractive. When you consider in our industry that the average of all the deals that have happened since 2004 has been 17 times - clearly it's a good deal."

William Grant, on the other hand, said that Campari offered it a "very attractive price" for the brands. If that's true, then William Grant can't have thought much of Frangelico and co in the first place, can it?


BLOG

Diet Coke decline leaves Pepsi sitting pretty

Last year was tough for The Coca-Cola Co. So staff in Atlanta won't be pleased to read that Pepsi has overtaken Diet Coke as the no. 2 soda brand in the US. ...

BLOG

Net-buster kicks-off Budweiser 'Dream Goal' campaign - video

A bit of football fun for a Friday. Anheuser-Busch InBev has released the ad that will accompany its new Budweiser 'Dream Goal' campaign, that seeks to find the UK's best amateur goal. ...

BLOG

Are New York's craft beer fans any the (Bud)weiser?

No sooner had Anheuser-Busch InBev taken a gentle pop at the craft beer segment during February's Super Bowl, than the world's largest brewer has challenged the sub-category's target market in New Yor...

BLOG

The secret to a long life? Three cans of Dr Pepper a day - video

A few wry grins will have been raised in the offices of Dr Pepper Snapple Group today. ...

just-drinks homepage



Forgot your password?