News

UK: Absolut pulled from Seagram deal

Most popular

Why water has become more important than wine

Should Campari Group be renamed Aperol Group?

just-drinks speaks to A-B InBev CEO Carlos Brito

Stoli Group’s AC/DC Thunderstruck Tequila- Comment

MORE

Swedish drinks monopoly Vin & Sprit is believed to be pulling the lucrative distribution rights for Absolut Vodka out of the Seagram portfolio for the upcoming race for the Canadian drinks company.The result of the decision will be to wipe billions of dollars off the value of Seagram's drinks arm. V&S it is believed wants to sell its distribution rights off in a piecemeal fashion geographically.One analyst said that the loss of Absolut could see Seagram's value fall from $8.4 billion to around $6 billion.Recent rumours that V&S and Allied Domecq would submit a joint bid are now considered unfounded. It is seen unlikely that V&S, as a government body, would want the secondary and tertiary brands that Allied Domecq spun off. The deal for the Absolut rights are now expected to be negotiated after Seagram has been sold.The removal of Absolut might be to Allied's favour anyway. The smaller bidding price will be in Allied's favour, who are financially weaker than nearest rivals Diageo, but who can deliver far greater cost savings than anyone else on the deal.


Related Content

What can the spirits and wine industries learn from Pernod Ricard? - Comment

What can the spirits and wine industries learn from Pernod Ricard? - Comment...

Millennials are not the only fruit for Absolut - Comment

Millennials are not the only fruit for Absolut - Comment...

Pernod Ricard on UK price increases, a rebounding Brazil and trouble in Turkey - Focus

Pernod Ricard on UK price increases, a rebounding Brazil and trouble in Turkey - Focus...

Comment - Spirits - Pernod Ricard and Absolut: Five Years On

Comment - Spirits - Pernod Ricard and Absolut: Five Years On...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?