AROUND THE WORLD: June 2007

Winning wine? The Hardy Wine Company hopes to bag further medals and trophies for the latest addition to its Eileen Hardy range plus other news from around the world

Winning wine?
The latest addition to the Eileen Hardy range was recently launched. The label was first released in 1973 to mark Eileen Hardy’s 80th birthday. Her children Tom, David, Pam and Sir James bottled 500 cases of the best red wine in the cellar (a 1970 McLaren Vale Shiraz) and labelled it “Eileen Hardy Special Bin 80” to honour their mother’s contribution to the Australian wine industry.

In 1986 the tradition was extended with Hardy’s best white wine released under the same label. The Eileen Hardy Chardonnay brings together fruit from Australia’s finest cool climate vineyards.

Tom Newton, Hardy Wine Company group white winemaker, said: “The 2005 vintage is sourced from the best vineyards across Tasmania and Tumbarumba; fruit is handpicked, fermented and aged in a combination of new, one- and two-year old barriques. With the pedigree and finesse you would expect from this wine and sealed with a screwcap, it will age gracefully and taste exactly as we intended.”

The winemaking team behind this iconic wine is quietly confident the 2005 release has all the qualities required for it to rival the incredible success achieved by the 2004 vintage, which was awarded eight trophies and 10 gold medals at wine shows across Australia in 2006.

Barley dip down under
The recent drought in Australia has had a negative impact on the country’s barley industry, causing ABB Grain, for example, to experience a dip in profits of 58%.

The drought has caused what ABB’s MD Michael Iwaniw describes as “very tough conditions last harvest”. He goes on to explain that this caused “the lowest volume of receivals in South Australia for 25 years”. It is estimated that barley output fell by over 60% as a result of the drought.

This year, on the other hand, has seen significant rains in the country, which will contribute to increased plantings and expectations of a much greater crop.

ABB reported, however, that malt exports to Asian markets such as Thailand and Korea offset the losses experienced as a result of the low crop. ABB’s malt subsidiary, Joe White Maltings, reported half-year earnings of A$7.3 million (£3m), compared to A$1.5m (£0.6m) in the same period last year.

Scottish distilleries hit by fuel shortages
Islay distillers were struck by a fuel shortage late last month. The Scottish island, well known for its rich, peaty whisky, did not receive fuel after a ship was unable to dock at its pier. The shortage, which coincided with the start of the Islay Whisky Festival, resulted in a number of distilleries ceasing production.

The ship was unable to dock as a result of a very low tide, as well as silting. Managing director of Shell distributor Gleaner Oils, David Todd, explained that “we cannot guarantee supplies of medium fuel oil to the distilleries”.

Bruichladdich distillery owner, Mark Reynier, commented: “We now have the worst of both worlds: the most expensive fuel in the UK and an unpredictable supply. That makes it impossible to run a distillery effectively.”

Campbell Evans, director of government and consumer affairs at the Scotch Whisky Association, said that the shortages are “happening too often for the industry to feel comfortable with the position, so we need to find a solution”.

Coca Cola bid quashed
Coca-Cola’s plans to acquire Mexican juice company Jugos del Valle have been rejected by the country’s Federal Competition Commission.

The plans involved a joint venture between the Coca-Cola Company and Mexican bottler Coca-Cola FEMSA. The deal, decided on at the end of last year, was due to be worth US$380 million (£192m), plus US$90m (£45m) in debt. The partnership would have been managed by FEMSA.

Jugos del Valle is the second-largest fruit drinks producer in the country. The companies intend to appeal the decision.

In a separate antitrust investigation in Mexico, originally filed in 2001, Coca-Cola recently received a fine of 10.5 million Pesos, the equivalent of US$971,000 (£490,000).

The company, as well as 14 bottlers in the country, were originally fined by the Federal Competition Commission in 2005 for having exclusive contracts with retailers.

The companies appealed the decision, but a Mexican federal court upheld the fine against the Coca-Cola Export Corporation. A decision about the fines against the bottlers is still due to be made by the federal court.

The original investigation was the result of a complaint by Pepsi Cola Mexicana. There have been 70 similar charges brought against Coca-Cola in Mexico, but this is the first to reach this conclusion. The remaining cases will apparently be resolved in the next few months.

Diageo to join Indian wine market
Diageo has announced plans to enter the wine market in India. This will reportedly take the form of a joint venture with an existing vineyard in Nashik.

The spirits giant recently appointed Adrian Pinto, formerly head of marketing for Sula Wines, a significant player in India’s wine market.

Another spirits company with plans for the Indian market is United Spirits Limited (USL). Production has started at its new winery in the Baramati area, with plans to produce seven million bottles over the next five years. USL’s chief winemaker, Abhay Kewadkar, commented that these developments mean “much more money is invested in awareness building and creation of a strong category”.

The wine market in India is estimated to represent 1.2 million cases a year, and is experiencing significant growth.

New sanitary can top is marketing- and eco-friendly
A new sanitary can top label has been produced, which is designed to biodegrade over time. The labels have been developed by Advercan, 3M and Graphic Packaging Incorporated. Known as the Americantop, the label also provides space for third-party advertising.

There are plans for tests with shipments of soft drinks to US troops in the Middle East, where both dust and hygiene are significant considerations.

Founder of Advercan, K Mac McClintock, comments that this development provides “a new net revenue source, and addresses the very real concerns of exposed food packaging”. McClintock refers to the product as a “marketing medium”.

The covers are being targeted at soft drink and beer brands, and also provide the potential for “under the cap” promotions that are usually limited to drinks packaged in bottles.

Beer threat to sport in Zambia
Beer drinking is a threat to sport development in Zambia, according to the country’s Eastern Province Sport Advisory Committee.

The statement was made at a Sport Association seminar in Chipita recently. The vice-chairperson of the committee, Absalom Miti, said that beer-drinking by youth “deters development, and sports can be used as a vehicle to transform those who indulge in the ill vice of beer drinking”. He claimed that youths in the province start drinking in the early hours of the morning.

Miti added, “We need to encourage youth to dwell in other activities.” Sport has been a vehicle to target drug and alcohol abuse in the country since at least 2000.

Muddy waters
The amount of bacteria in Evian water in China was recently found to exceed the standards set out by the country’s general administration of quality supervision, inspection and quarantine.

Excessive levels of bacteria were also reportedly found in the Danone-owned brand last year in Shanghai. The most recent discovery was reported by China’s Xinhua Financial Network.

© db June 2007