Blog: William 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?
Want to know how to make it to the top of the beverage business? According to Muhtar Kent, it's all about the networking....
A red sticker to a shopper is like a red rag to a bull. And as the masses charge at the deals, UK off licences and supermarkets are finding new and novel ways to entice the herd. ...
To celebrate its 250th anniversary, Cognac brand Hennessy is trumpeting a virtual time capsule, making a parallel between it and a barrel of Cognac....
Rarely do sponsorship deals pay off so quickly. ...
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