FEATURE: UK TOP 50 – Big Hitters

After much discussion, the drinks business has amassed who it thinks are the 50 most influential figures in the UK alcoholic drinks industry. Fionnuala Synnott reports

Power is difficult to quantify. We were anxious to find out who has the most influence in the UK wine, beer and spirits market but first we had to define the parameters for selection. Obvious criteria include hard facts such as annual turnover or the size of the marketing/buying budget controlled – so no one would contest the presence of Paul Walsh, Patrick Ricard or Dan Jago on this list.

Then there are the important badges of commercial success such as market penetration. But measuring market share means relying on statistics, which are often open to criticism. That’s why, when compiling this list, we have used figures from respected statisticians AC Nielsen, and where these were not available we have asked the companies to give us their own interpretation of where they stand in the market.

But the story only starts to get interesting when you go beyond company financials and look at some of the softer factors that build a brand, such as image, status and reach. Brand perception was an important factor and was measured using ratings in the brand league tables. In a global drinks industry, brand reach is also vital and explains why the likes of Bengt Baron, president of The Absolut Company, have made the list. We have also rewarded CEOs of innovative brands such as Magners and Cobra Beer with a place in the top 50.

But businessmen are not the only powerful figures in the industry. British politicians such as Gordon Brown also feature on this list as do their intellectual counterweight, the lobbyists. We have also featured a number of journalists whose opinions have an impact on the UK wine-buying public.

Paul Walsh, CEO, Diageo Group
As the CEO of the largest spirits group in the world, Paul Walsh’s decisions have a real impact on what consumers drink. Innovation is one of Diageo’s real strengths; demonstrated by the originality of its Smirnoff advertising campaign. Premiumisation and emerging markets are also key to the group’s growth strategy. Diageo is behind the success of Baileys, Guinness, Tanqueray and Cuervo. The group, which is listed in London and New York, recorded a turnover of £9,704 millon at the end of June. Prior to joining Diageo, Walsh was director of The Scotch Whisky Association.

Patrick Ricard, CEO, Pernod Ricard UK
Patrick Ricard, chairman and CEO of Pernod Ricard since 1978, has had two aims: to diversify the group’s product range beyond anise drinks and grow its international reach. PR’s growth strategy has largely relied upon bold acquisitions, most notably Seagram in 2001 and Allied Domecq last year. Completion of the £7.4 billion Allied Domecq deal brought the Mumm, Perriet Jouët, Campo Viejo, Malibu, Montana, Kahlua, Tia Maria, Ballantine’s and Beefeater brands into PR’s stable. The acquisition made the group the number-two wine and spirit operator in the world and number one outside the US. In the wine world, Pernod Ricard is best known for the success of Jacob’s Creek. The group claims to be number four in the wine market, and produces 23m cases of wine and 76m cases of spirits per year. It had generated €6,066m in consolidated sales at the end of June.

Tony Froggatt, CEO Scottish & Newcastle
Previously president, Europe, Middle East and Africa for Seagram, Froggatt is now CEO of the leading UK brewer and distributor. S&N claims a 27% share of the market and recorded a turnover of £3,260m at the end of last year. Its top-selling UK brands are Kronenbourg 1664, Foster’s, John Smith’s and Strongbow. S&N claims to lead the market in the UK, France and Russia and has grown its beer volumes almost tenfold in the last 20 years.

Trevor O’Hoy, CEO, Fosters Group
Now the world’s second biggest wine company following its Southcorp acquisition, Foster’s has a big influence on New World wine styles. In his first year as CEO, 2004, O’Hoy oversaw the acquisition of Beringer Blass Wine Estates. Foster’s Wine reported a turnover of AU$2,237m at the end of last financial year.

John Beard, UK CEO, Bacardi Martini
Bacardi Martini is a key exporter of premium spirit brands and a supplier to the UK market. The company owns, sells and distributes Bacardi rums, Martini vermouths, Bombay Sapphire gin, Grey Goose, Bacardi Breezer and Martini Asti. The company also handles the UK distribution for Drambuie liqueur and sells Jack Daniel’s, Southern Comfort and Finlandia vodka through its commercial operation Bacardi Brown-Forman Brands.

James Cockeram, MD, Moët Hennessy Europe
As chairman of Moët Hennessy UK and MD of Moët Hennessy Europe, James Cockeram is responsible for the complete Moët Hennessy portfolio in over 50 countries. Moët Hennessy is owned by LVMH (Louis Vuitton Moët Hennessy), the world’s leading luxury brands company. Before taking up his current position in May 2000, Cockeram was MD of Moët Hennessy UK Ltd, which he joined in June 1997. Before joining Moët Hennessy, Cockeram worked for nine different companies at Allied Domecq. His last position there was MD of Allied Domecq Wines & Spirits for the UK.

Jon Moramarco, CEO, Constellation Europe
Before being appointed CEO of Constellation Europe in January, Moramarco was president and CEO of Icon Estates, the premium wine division of Constellation Brands Inc and, prior to that, he was president and CEO of the Canandaigua Wine Company. Constellation Europe was formed in April 2004 following the integration of Constellation Wines Europe and Matthew Clark. It is part of Constellation Brands Inc, the largest wine company in the world and a leading producer and exporter of wine from the US, Australia and New Zealand. The company has a strong portfolio of brands including Hardys, Nobilo and Stowells wines, Blackthorn and Gaymer’s Olde English ciders, Stone’s Ginger Wine and Babycham. The Cellar Door division also represents 14 premium new world wineries. Matthew Clark, claims to be the number-one wholesaler serving the UK on-trade.

Adrian McKeon, MD, Beam Global Spirits & Wine
McKeon believes in letting the consumer take the lead, a strategy that has delivered for Beam in terms of volume, distribution and profit. The group, the world’s fourth largest spirits company, recorded US$2.5bn annual sales in the last financial year. McKeon began his career with Gallo and held senior sales and marketing roles at Southcorp and Constellation. At the end of 2005, he joined Beam from Allied Domecq, where he was MD of the UK Wine Division. He is also an executive member of The Wines and Spirits Trade Association. Beam‘s brands include Jim Beam, Courvoisier, Laphroaig, Maker’s Mark, Sauza tequila and Teacher’s.

Graham Mackay, Chief Executive, SABMiller plc
Graham Mackay was appointed chief executive of South African Breweries plc in 1999 and has been with the company since 1978. In his first year on the job, he oversaw the company’s listing on the London Stock Exchange. Under his leadership, the company acquired Miller Brewing Company in the US and subsequently became SABMiller plc. In the year ended 31 March, 2006, the group reported US$15,307m in revenues and profit before tax of US$2,453m.

Joseph E. Gallo, Co-President and CEO, E&J Gallo Winery
Joseph Gallo joined the winery’s sales department in 1965, and was instrumental in the company gaining national distribution by 1970. Prior to becoming CEO in 2001, Gallo pioneered the development of international markets for California wines. The company now maintains operations throughout Europe and the Americas. E&J Gallo Winery is the second largest winery in the world in terms of volume and sells more than 12m cases of wine each year.

Maurice Breen, Marketing Director, Magners
C&C has come to prominence with the unprecedented success of Magners, which has rejuvenated the whole cider category. The simple concept of pouring cider over ice has made Magners the number-one packaged cider brand in Great Britain. C&C has invested heavily in marketing the brand and is committing €200m to new cider production facilities in Ireland.

Guy Hands, CEO & Founder, Terra Firma Capital Partners
A big hitter in the world of finance, Guy Hands’s private equity firm, Terra Firma Capital Partners, has backed a number of pub deals through TFCP1 including Phoenix Inns (€374m), Inntrepeneur (€1,914m), Inn Partnership Pubs (€578m), Unique (€1,359m), the Thresher Group (€357m), still actively managed by the firm’s investment fund, and Voyager (€984m).

David Dryden, MD, UK and Ireland, Anheuser-Busch Europe Ltd
David Dryden was appointed UK and Ireland MD in 2005 but has been with the company since 1992. Prior to joining the firm, Dryden worked at Bass Brewers. Anheuser-Busch is best known for brewing Budweiser, the UK’s best-selling premium packaged lager in the on-trade. The UK market is Anheuser-Busch’s second-largest market outside the US.

John Halewood, Chairman and CEO, Halewood International Ltd
When John Halewood launched his Club Royal Montilla fortified wine brand from his garage in 1978, he raised a few eyebrows. But now Halewood International, which supplies spirits, wines and sparkling drinks to the UK supermarket chains, is a force to be reckoned with. The company has achieved profit growth of 101% pa, from £1.3m in 1995 to £10.6m in 1998. Turnover in the same period grew by 14% pa to reach £119.8m. Halewood’s brands include high-margin drinks aimed at the youth market such as Lambrini and Red Square Vodka.

Stephen J Garcia Perez, Founder, GBL International
Steven J Garcia Perez founded Global Brands (formerly GBL International Ltd) in 1997, with just four members of staff. The company started life distributing drinks until 1999 when Garcia Perez decided to launch VK Vodka Kick, a range of premixed fruity vodka drinks. According to Global Brands, VK Vodka Kick is the fastest growing range of RTDs in the UK. Global Brands now sells over 3.5m bottles of VK each week in the UK and exports to 30 countries worldwide. The success of VK has seen Global Brands’ turnover rise from a mere £226,000 in 1999 to £70m in 2003. Garcia Perez was named Entrepreneur of the Year at the CBI Growing Business Awards, as well as winning the Northern title in the annual Entrepreneur of the Year awards. Global Brands’ turnover today is £60m.

Ben Van Doesburgh, CEO, Maxxium Worldwide
Ben van Doesburgh  joined Maxxium as CEO in 2004. The group was formed in 1999 when The Edrington Group, Beam Global Spirits & Wine, and Rémy Cointreau combined their worldwide distribution resources outside the US. The V&S Group became the fourth equal stakeholder in 2001.  Maxxium is the sales, local marketing and distribution route-to-market for its four shareholders and selected partner brand companies.

Bengt Baron, President, The Absolut Company
With vodka the undisputed king of spirits and Absolut the third best-selling premium spirit brand in the world, Bengt Baron is in an enviable, if challenging, position for a first-timer in the drinks business. Before joining Absolut, Baron was Nordic director for Swedish internet-based career and recruitment company StepStone. He also won an Olympic Gold Medal for the 100m backstroke in 1980.

David Cox, MD, Europe, Brown Forman Wine Division
David Cox was recruited in 1995 to set up a European presence for Brown-Forman Wines. Through a small London-based sales and marketing organisation, he has built the portfolio from about 40,000 cases in 1995 to over 1.3m. Cox had previously spent 10 years working in sales management at Matthew Clark, the firm founded by his great-great grandfather in 1810. The wine division was set up and augmented in 1992 with the purchase of Fetzer Vineyards and Bonterra Vineyards in California. Brown-Forman also owns Jack Daniel’s, Southern Comfort and Finlandia Vodka.

Ian Curle, CEO, The Edrington Group
Scotland’s leading premium spirits company owns The Famous Grouse, Highland Park and Cutty Sark brands, among others. The group handles over 85m bottles of Scotch annually and recorded a turnover of £263.4m last financial year. Curle joined the company in 1986 and became chief executive in April 2004. He is a trustee of The Robertson Trust, a chairman of the North British Distillery, a member of the board of Maxxium Worldwide BV and serves on the council of the Scotch Whisky Association.

John Hutson, CEO, JD Wetherspoon
With more than 640 outlets, J D Wetherspoon is one of the largest pub chains in the UK. The company, which prides itself on offering its customers value for money, floated on the stock market in 1992. Last quarter, total sales increased by 9.7% to £220.4m. Hutson joined Wetherspoon in 1991 from Allied Domeq. He was appointed to the board in 1996 and, after six years as MD, became chief executive in 2004.

Paul Symonds, CEO, Laurel Pub Company
Appointed in August this year, Paul Symonds has ambitious plans to reorganise the Laurel Pub Company and has begun building a new senior management team. Laurel Pub operates more than 400 bars and pubs operating under brands such as Hog’s Head, and The Slug and Lettuce. Formed in 2001, the company is owned by real-estate billionaire Robert Tchenguiz through his R20 investment vehicle. Laurel has more than doubled in size since acquiring the Yates and SFI groups.

Vivian Imerman, CEO and Chairman, White & McKay Ltd
Vivian Imerman is so committed to White & McKay that he spent over £50m buying out German bank WestLB and taking control of the company last year. This was a decisive step in his 5-year restructuring programme for the company, which ran up losses of £13.7m in 2004 as prices for bulk and cased whisky to supermarkets fell. However, White & McKay remains the world’s leading supplier of own-label and branded Scotch whisky.

Andrew Knight, MD, Spirit Group
Andrew Knight was appointed MD of Spirit Group after it was sold to Punch Taverns plc in January.  He became commercial director for Punch Retail (which later became Spirit Group after it separated from Punch) when Allied Domecq sold its pub retailing business to Punch Group in 1999. He was with Spirit through the acquisition of Tom Cobleigh and Scottish and Newcastle Retail, the subsequent sales of Premier Lodge to Whitbread, and pub sales to Globe Pub Co and Tattershall Castle. Spirit’s revenue for the year ended August 15, 2006, was £1.5bn.

Lord Karan Bilimoria, Founder and CEO of Cobra Beer
The newly appointed peer came up with the revolutionary idea of making a beer that was so elegant it could be brought into the dining room and is feted for bringing less gassy beer to Indian and Pakistani restaurants in the UK. Cobra Beer’s current turnover, at retail value, is £96m.

Christian Porta, Chairman & CEO, Chivas Brothers Ltd
The Scotch whisky and premium gin business of Pernod Ricard is best known for its Chivas Regal brand. The Chivas Brothers portfolio also includes Beefeater, Ballantine’s, The Glenlivet, Aberlour, 100 Pipers, Scapa and Longmorn.

Top retailer buyers

Dan Jago, Category Director, Beers, Wines & Spirits, Tesco
With a 30% share of the retail market, Tesco wields a massive amount of power in the wine, beer and spirits categories. Dan Jago joined Tesco in 2006, a company he had supplied for more than 10 years while working
for Bibendum.

Warren Anderson, Beers, Wines and Spirits Senior Manager, Sainsbury’s
Warren Anderson has worked for Sainsbury’s for more than 12 years in a number of buying and business planning roles. He was appointed beers, wines and spirits senior manager in September this year. Sainsbury’s has a 19% share of the retail market.

Phillipa Carr, Senior Marketing & Product Manager, Asda Wine
Philippa Carr MW was named chief wine buyer for Asda in November last year. Before working for Asda, which has a 15% market share, Carr was UK wine trading director for SPAR.

Stuart Purdie, Licensed trading Manager, Morrisons
Stuart Purdie started buying wine for Dominic’s and Bottoms Up in 1987. In 1991 he became wine buyer for Morrisons. Purdie now heads a team of three buyers. Morrisons has a 10% share of the UK market.

Angela Mount, Wine Buyer, Somerfield
After spending months reviewing the wine range in store, Angela Mount has refreshed Somerfield’s wine range with exciting new offerings from around the world. Following customer feedback, she added more New World wines and greater variety. Somerfield has a 5% share of the UK retail market.

Justin Howard Sneyd MW, Buyer, Waitrose
Justin Howard Sneyd started his career in the wine trade as a helper for the IWC. Afterwards, he worked in a wine shop, ran tasting courses, did a stint with Oddbins, and worked six vintages before joining Waitrose.

Alex Anson, Trading Director, Thresher Group
As the man behind the three-for-two offer, Alex Anson has had a remarkable effect on wine sales at The Thresher Group. It now claims to have a 20% share of the impulse sector wine market, and 16% of the impulse liquor sector. Anson was formerly a wine buyer for Tesco.

Tim How, CEO, Majestic Wine Warehouses
With 130 stores, Majestic Wine is the largest wine warehouse in the UK and has been credited with bringing the multi-buy concept to consumers. Tim How was appointed to the board in 1989. He has overseen the company’s growth from 38 stores in 1992 and the flotation on AIM in 1996.

Mark Riches, MD, World Duty Free
Mark Riches has been MD of World Duty Free since 2001. The UK’s foremost travel retailer generates sales in excess of US$900m, 15% of which is generated by alcoholic beverages.

Peter Greet, Head of Buying, Direct Wines Ltd (Laithwaites)
One of the first wine companies to sell wine online, Laithwaites is now the world’s largest independent home-delivery wine merchant, with annual sales of £220m and 850,000 active customers. Peter Greet has been at Direct Wines for 12 years and leads a team that buys 4m cases per year. The team of nine includes five full-time buyers.

Liz Aked, Trading Controller, SPAR
Liz Aked has made quite a few changes to SPAR’s wine range in the 13 years she has been with the company. She has spent a lot of time on the own-label range and has managed to introduce a number of successful products under the Spar label. Spar has a 9.7% share of the UK convenience sector.

Chris Murphy, New Wines Buyer, Marks & Spencer
Chris Murphy has been buying new wines for M&S for over 20 years. He launched the first supermarket range of fine wines and introduced the first pre-mixed buck’s fizz.

Emma Nichols, Head of Buying, Oddbins
Emma Nichols first joined Oddbins in June 1996. During a break from the company she joined Safeway as a buyer before moving to Vinoceros as marketing manager. She rejoined Oddbins in November 2004 as head of buying.

The Politicians

Gordon Brown, Chancellor of the Exchequer
As the man who decides the rate of duty in the annual Budget, Gordon Brown’s decisions affect everyone’s margins in the UK drinks business.

Mr John Healey MP, Financial Secretary, HM Treasury
Gordon Brown’s right-hand man plays a vital role in advising the chancellor on the details of the Budget.

Tessa Jowell, Secretary of State for Culture, Media and Sport
The woman responsible for deciding the licensing hours for British pubs, bars and clubs, Tessa Jowell has driven reform by implementing the 2003 Licensing Act. Her tenure has seen a huge amount of change, including 24-hour licensing.

Patricia Hewitt, Secretary of State for Health
Patricia Hewitt has been hugely influential in highlighting the dangers of binge drinking.

The Lobbyists

Chris Carson, Chairman, The Wine and Spirit Trade Association (WSTA)
Carson was appointed chairman of The Wine and Spirit Trade Association in the UK in February this year. He is also non-
executive chairman of  Constellation Europe. 

Gavin Hewitt, Chief Executive, The Scotch Whisky Association (SWA)
Born in Scotland in 1944, ex-diplomat Hewitt has worked all over the world and took up the position at the SWA in October 2003. The SWA’s priorities include the international legal protection of Scotch whisky, tackling trade barriers to fair market access in countries such as India, and promoting more responsible attitudes to alcohol.  

Edwin Atkinson, Director General, The Gin & Vodka Association of Great Britain
Edwin Atkinson has been director general of the Gin and Vodka Association since November 1998. The GVA’s concerns include the high rate of excise duty; the new EU spirit drink regulations; the cumulative burden of regulation; discriminatory tariff barriers abroad; food standards, and the environment.  

Rob Hayward, Chief Executive, British Beer & Pub Association
Rob Hayward joined BBPA in 1999 having previously been director general of the British Soft Drinks Association and prior to that a Conservative MP. Hayward is also a trustee of the BBPA Group Pension Fund.

The Wine Writers

Jane MacQuitty, Columnist, The Times
The Times wine expert advises readers in her weekly column and her recommendations frequently sell out. She is also author of a number of books including Jane Macquitty’s Guide to Champagne and Sparkling Wines.

Jancis Robinson, Wine Writer and Broadcaster
Jancis Robinson, usually referred to as just “Jancis” by members of the trade, has been writing and broadcasting about wine for 30 years, and has been the FT’s wine correspondent since 1989. Her principal occupation nowadays is www.jancisrobinson.com, which has 5,500 subscribers from more than 70 countries. She is also responsible for many of the standard reference books on wine including The Oxford Companion to Wine and, with Hugh Johnson, The World Atlas of Wine. She qualified as a Master of Wine, the first from outside the wine trade, in 1984. She was awarded an OBE in 2004.

Matthew Jukes
Matthew Jukes manages to cross the divide between wine writers and the trade by keeping a foot in both camps. He is the wine buyer for Bibendum restaurant and The Crescent Wine Bar. He had his own weekly radio feature on the BBC for five years and presented Channel 4’s Wine Hunt. He writes a weekly column for The Daily Mail and an on-line newsletter, www.expertwine.com.

Robert Parker
Although not as influential in the UK as in the US, Parker’s points system has a significant impact on the UK fine wine market. A score of 90 or above ensures that a wine sells out. Rumour has it that some winemakers are making their wines to suit his apparent preference for concentrated, fruit-driven wines, therefore ensuring that the wine is a commercial success.

© db Decmber 2006