Five Minute Read – September 2002

In the news, Symington has built a new lodge specifically to age tawny ports. The lodge will be able to hold 4,000 550l barrels, and the wines will benefit from ‘Douro bake.’ The second Drinks Business voxpop provides some good news for the French wine regions – consumers know a little more than last month’s poll might have lead us to believe.

Our spin around the world’s news stories this month takes us from Californian mealy bug worries and good results for Chalone through to fears about falling Italian wine production, Heineken invading Danish territory, a new winery for Vietnam and a back-down by BRL Hardy on its pricing policies for grape growers.

Product news highlights Diageo’s new Smirnoff Ice variant, Black Ice, as well as expansions for Worthington’s beer range Beverage Brands’ refreshers, as well as a new beer for First Quench stores. Moreno is importing a new range of Argentine sparklers, while PLB and Laymont & Shaw are introducing new Chilean wines. New idea of the month goes to ScotCo, whose illuminated beer pump will light up the lives of ale drinkers.

In our Global Stock Watch, Big Booze lead the way upwards. Anheuser-Busch and Brown-Forman notched up double-digit share price gains through the past four weeks and pulled The Drinks Business Index up 2.07%.

Our broker watch this month looks at the differing fortunes of Asahi Brewery and Pernod-Ricard, while new deals in the mergers and acquisitions section were thin on the ground as capital markets shut down for the holidays.

Paul-François Vranken, our Big Interview this month, has done well for a Belgian marketer who founded his champagne house just a quarter of a century ago – virtually yesterday in the time scale of the champenois. Following the Pommery purchase, he presides over the second-biggest champagne producer and has been busy making himself part of the Champagne landscape.

Our news focus looks at the fortunes of the Australian wine industry – exports are booming but domestic sales are less buoyant.

In Letters, respondents air their views about last month’s brand recall voxpop and the potential dangers of Red Bull.

John Cossart is this month’s producer in I Love My Brand; he grew up deeply imbued in the culture of Madeira, and his enthusiasm for his products are infectious.

Jon Rees’ marketing round-up takes us on a meandering path from the provenance of ‘foreign’ beers to Happoshu to how drinks companies handle the issue of responsible drinking.

This month’s retail pages feature the working life of the woman credited with the rejuvenation of the Somerfield chain, from the wine shelves outwards. Angela Mount knows what she wants for her customers, and gets it. Meanwhile, the dreaded Drinks Business voxpop returns – the results alluded to in the News section are played out in full – and it’s good news for the French regions (including Germany and Chile).

We go Outside Drinks with Patrick Schmitt who argues that if Skoda can effect a turnaround in their brand, anyone can. The Czech carmaker, snapped up by VW some years ago, has turned its joke status to its advantage.

The Story So Far of Pernod-Ricard’s M&A spree documents how a regional drinks company became a global player. Rob Griffin flicks through the company’s well-used check book stubs and portrays the growth of the company to its current number three global position.

James Graham, meanwhile, rounds up logistics news including problems with Argentina, where the trade crisis brought about by poor demand for imports – and a consequent shortage of containers – is costing wine shippers dear.

Our big feature this month, Chile, covers the economic and marketing situation for the country’s producers, and profiles leading brands including Valdivieso, Anakena, Concha y Toro, Cono Sur, TerraMater and Ventisquero. Key industry figures give their insights, and Susan Low profiles the country’s current export situation.

Our company profile this month features Bibendum, the London-based wine merchant which, earlier this summer, was selected for backing by the International Wine Investment Fund.

Editor Matthew Guarente wades through the psycho-babble in Anatomy of: Supermarkets, looking at how the modern retailer shapes our buying patterns.

This month’s Issue looks at the murky world of intellectual property and how a ruling due in the European courts, regarding Arsenal football club and a street vendor, could have big implications for brand owners.

Port, reports Andy Knott, has a problem – some markets drink too much of the bulk stuff, while some drink small volumes but only the higher end. Does the industry need to convince both sides to move towards the middle – and what are the owners doing to address the long-term security of the drink?

This month’s Comment takes a critical look at the power of the big multiple retailers. Are they really serving the customer’s best interest with low, low prices? And can their suppliers keep selling to them at those prices – or does quality have to give at some stage? We await the supermarket executives’ reactions.

Phil Pemberton reports on the mixed fortunes around the wine districts of France – the surprise rise in the sales of Alsace (but to the Belgians), and the ever-expanding reputation of the Languedoc versus the areas that are in decline.

Vodka is top of the pile in the spirits world – so does that mean it is heading for a fall? Rob Griffin listens to arguments that its popularity is assured, and to those who say that drinks are cyclical and vodka’s reign is about to end.

Dinesh Jain is On The Phone – Highland Distillers’ area manager for India talks to Matt Guarente about the huge market, showing off for your friends, and 1-gallon bottles of Famous Grouse.

Still with scotch (no pun intended) Mark Reynier runs us through his busy month at the Bruichladdich distillery on Islay, where he recounts the new arrivals and the new products in Diary of a Producer.

Jonny Goodall has tried, really tried, but he just can’t bring himself to love sherry the way that polite society seems to love it. He doesn’t mean to be offensive – he just wishes he could taste what the aficionados taste.

© db September 2002