Stock Spirits completes refinancing


Nov '11: Stock Spirits Group, Central Europe’s leading branded spirits and liqueurs business, has completed a refinancing of its banking facilities. These will consist of a €220m facility, which includes €170m of long-term loans and a €50m revolving credit facility, which includes funding for acquisition opportunities.

Chris Heath, CEO of Stock Spirits commented: “We were delighted with the interest in the re-financing. Our ability to achieve such a successful refinancing at very competitive rates in the current economic environment, which was over-subscribed, is a reflection of confidence in our high quality business that has strong cash flows and low levels of gearing.

“These new facilities will support our long-term organic growth strategy in Central Europe, and will also enable us to pursue complementary acquisition opportunities as and when they arise.”

The WSTA announces the nomination of Nick Hyde as its new Chairman and the departure of its CEO

Nov '11: Nick is MD of Diageo Wines Europe, a role that encompasses management of wine subsidiary Percy Fox & Co, which markets Blossom Hill and other leading wine brands, international fine wine merchant Justerini and Brooks, Bordeaux negociant Vignobles Internationaux and online retailer Quintessentially Wine.

His nomination will be put forward for approval at the WSTA's annual general meeting in April 2012. He will succeed Tim How, who has been WSTA Chairman since April 2009.

• CEO Jeremy Beadles is leaving the WSTA in the New Year, after six years, to take up the position of Corporate Relations Director for Heineken UK.

Chile moves up in the world
 
Oct '11: The latest Nielsen data that tracks the UK off-trade up to October 2011 reveals that Chile has moved up to 5th place in the list of best selling wine countries, overtaking South Africa for the first time.
 
In the gloomy economic climate that is depressing wine sales generally, Chile was one of only four counties that increased volumes over the past 12 months (the others are New Zealand, Italy, and Spain).  Chile’s off trade sales of 8.5 million cases, valued at £452 million, gave it a market share of 9.1% overall.
 
Chile’s performance in the Independents (Impulse) sector was even more impressive with sales up 10% catapulting Chile above France into 4th place with a market share now standing at 10.2%.

Producers warned over identity fraud scam

Oct '11: The WSTA and the Metropolitan Police are urging wine producers to step up checks on orders to combat increasing use of identity fraud as a means of obtaining goods without payment.
• Read the report

Sept '11: Scotch Whisky exports grew strongly, defying global economic uncertainty, in the first six months of 2011. Global shipments of Scotch Whisky between January and June 2011 reached £1.8 billion, up 22% on the £1.47bn achieved in the first half of 2010, according to figures released today by the Scotch Whisky Association (SWA).

• Read the report

Diageo invests in sstainable Scotch Whisky with new £6m bioenergy plant for Speyside

Sept '11: Diageo, the world’s leading premium drinks business, has announced plans to invest £6 million in a new state-of-the-art bioenergy plant at its Glenlossie distillery complex in Speyside.

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Logistics firm appointed

Sept '11: JF Hillebrand has been awarded a three year logistics contract by William Grant & Sons, providing in-house management, logistics and distribution services within several of the company's key global locations, including the majority share in volume from their global headquarters in Bellshill, Glasgow.

Bottle Green announces new partnerships

Sept '11: Bottle Green is to drive distribution in the UK for Pasqua Vigneti e Cantine, a third generation family-run Italian winery based in Verona. Bottle Green has also announced that it is to distribute a selected range of wines from Valencian producer, Vicente Gandía. Already well-known in the UK, Gandía was at the forefront of growth in Spanish wine in the UK off-trade in the last few decades.

New market report defines trends and growth opportunities

Premiumisation has been a real driver of value and volume growth for the UK spirits industry, according to a market report by First Drinks, a leading supplier of premium spirits in the UK.  The First Drinks Market Report 2011, which takes an in-depth look at the UK spirits and Champagne categories, highlights the continued role of premium brands (outperforming the market, across both the on and off-trade), the importance of innovation, insight and working closely with customers.

• Read the full news report

Robert Parker praises Domaine Pinnacle Ice Cider

Domaine Pinnacle, the world’s leading producer of ice cider, was recently praised by Robert Parker Jr., arguably the most influential English-speaking wine critic in the world.
• Read the report

Scotch whisky welcomes Korea free trade agreement

July 1 2011: The free trade agreement (FTA) between the European Union and South Korea, which comes into force today, is being heralded as a major milestone for the Scotch whisky industry.

The FTA is the most ambitious trade deal negotiated by the EU and the first with an Asian country. Scotch whisky is expected to be one of the biggest beneficiaries of the deal as it eliminates Korea’s 20% import tariff on spirits. Scotch whisky is the UK’s largest export to Korea and it is by far the biggest imported spirits category in Korea. The agreement also provides legal protection in Korea for products with ‘geographical indications’, including Scotch whisky, and it tackles a number of other barriers to trade.

Korea is the sixth largest export market by value and ninth by volume for Scotch whisky worldwide, with direct shipments from the UK alone totaling £153m last year. But, adds the SWA, there is still a lot of work to be done to break down barriers in other emerging markets, notably India.

Marisco Vineyards finds distributor in China

Marisco Vineyards in New Zealand has signed a national distribution agreement with Tianjin Dynasty International Wine Co. (Dynasty) in China. Dynasty one of China’s leading premium wine producers and, from September, will distribute Marisco Vineyards’ two brands – The Ned and The King’s Series – through its national distribution network covering mainland China, Hong Kong and Taiwan.

Marisco Vineyards had its first discussions with Dynasty in August 2010, following a scoping trip arranged by the ANZ bank. The first shipment will be from its 2011 vintage, which chief winemaker Brent Marris believes has been one of the best Marlborough vintages for some time: “We’re in an exciting phase at the moment—a new, game-changing distribution deal with China, an excellent vintage, and the completion of phase one of our state-of-the-art winery all mean we’re putting our best foot forward internationally.”

Tax increases force wine and spirit prices up

June 2011: The cost of wines and spirits in shops and bars and restaurants is increasing rapidly as tax increases continue to force up prices, according to the latest market report from the WSTA, the UK organisation for the wine and spirit industry.

• Read the report

Slovenian wines seeing  revival in UK

Slovenian wine sales are experiencing a boom in the UK with key brands already reaching annual targets and newer wine styles surprising consumers nationwide. This success is largely attributed to the modern, clean styles that a new generation of winemakers are crafting from regions rich in wine growing heritage. Family-owned P&F wineries has, for example, announced that sales this year in the UK of Puklavec & Friends Sauvignon Blanc 2009 – listed in Waitrose and selected independent retailers – are approaching 50,000 bottles. Initial forecasts were set at half of that figure.

Bibendum appoints new logistics partner

Bibendum has awarded Tradeteam a three year contract to fulfill its warehousing and distribution services. Tradeteam is designing a new service that will operate from southwest London to meet the UK wine supplier’s service requirements.

London City Bond (LCB) has been Bibendum’s exclusive logistics and distribution partner since 1994. In that time Bibendum has grown significantly and a larger, an international logistics player was required for future requirements. Bibendum and LCB will work together with Tradeteam during the transition phase, until all stock and operations have been transferred. This is expected to have been completed by February 2012.

Bibendum’s relationship with LCB will continue, as customers' private reserves will remain at LCB’s Vinotheque warehouse.

EPI acquires Piper-Heidsieck

June 2011: Rémy Cointreau has sold the entire share capital of Piper-Heidsieck – Compagnie Champenoise, and Piper Sonoma, the sparkling wine brand in the US, for €412.2M. The Champagne division’s turnover was €103.6M in the year ended 31 March 2011, an increase of 7.2%. In addition, Rémy Cointreau and EPI have signed a global distribution agreement for the Piper-Heidsieck and Charles Heidsieck brands, as well as for Piper Sonoma in the US.

May 2011: AdVini, the third largest wine group in France, has taken over the Bordeaux Grands Crus Classés specialist, Edonia (formerly Gam Audy).
Edonia, whose turnover was €4M in 2010, will reinforce and accelarate the development of Antoine Moueix Grand Crus, a division of  the AdVini house Antoine Moueix in Saint-Emilion, with a turnover of €2M..

Wine Cultural Centre to open in Bordeaux

Plans are afoot to open an international Wine Cultural Centre in Bordeaux city centre. Designed by Parisian architect X-TU and London based museum and exhibition design agency, Casson Mann, the new visitor attraction will sit on the banks of the River Garonne when it opens in 2014.
• Read the report

Copestick Murray to distribute Follador in UK

May 2011: Prosecco brand, Follador, has appointed Copestick Murray to distribute its portfolio of Proseccos and wines in the UK.  Copestick Murray through their Source division will assume responsibility for handling on- and off-trade sales within the UK with immediate effect.

E8 Rum links up with Cask Liquid Marketing

After five years of distributing in the UK, Elements 8 Rum has formed a distribution partnership with a new brand development company Cask Liquid Marketing founded by Stuart Ekins and Richard Herbert. The company will acquire the exclusive UK distribution rights for all three variants of Elements 8 Rum – starting June 1.
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Maxxium takes over distribution from Inspirit of No.3 London Dry Gin
 
Berry Bros. & Rudd Spirits has appointed Maxxium UK to distribute No. 3 London Dry Gin from 1 June 2011. In the 12 months since the gin's launch, Inspirit Brands successfully placed the brand in the top UK bars.

Berry Bros. & Rudd Spirits has an established international partnership with Maxxium, which has led to The Glenrothes becoming one of the world’s fastest-growing single malts. In the UK Maxxium has achieved very significant growth for The Glenrothes with year-on year sales increased by 150%. Maxxium is also responsible for the distribution of No.3 London Dry Gin in Spain, Sweden and Denmark. As part of this on-going partnership, No. 3 will move to Maxxium in the UK.

Berry Bros. & Rudd Spirits will continue to work with Inspirit (now part of Global Brands) with a focus on developing The King’s Ginger as well as other new projects for which there are ambitious UK growth plans in place.

Court action was been taken by the SWA against a Panamanian producer advertising 14 brands of 'whisky', including Golden Dollar, Sir Edwins, and Paddington, each bearing the name 'Scottish Spirits', in a manner that suggested the products were genuine Scotch Whisky.

• Read the report

Isle of Arran distillery has reported a record year-on-year sales growth of 27% to April 2011, prompting the business to invest to expanding its production by 40% to 100,000 litres of alcohol.

The distillery – the first on Arran since 1836 – opened in June 1995.  Brand sales for Arran have been growing by 42% year on year. Export sales were up 45% 2010-11 and operating profits up by over 450% to £173,028 on a turnover of £2,712,343. The company also reported a bottom line improvement of £133,670 over 2009.

Sales of The Arran Malt in France were a notable success growing by 86% and other marked gains were made in Canada and Taiwan.
The distillery visitor centre has also posted record numbers of over 68,000.

Kosta Browne plans to build winery at The Barlow in downtown Sebastopol

Kosta Brown, a Californian Pinot Noir brand, is building a state-of-the-art winery in The Barlow, downtown Sebastopol. The opening of the new production facility will make Kosta Browne as the first bonded winery within the city limits. Construction is set to begin this year, with the opening slated for autumn 2012.

Drinkaware appoints Cohn & Wolfe London

Drinkaware has appointed Cohn & Wolfe London to support the charity to deliver integrated PR and digital campaigns aimed at three target audiences.  This follows the appointment of OgilvyOne London to develop Drinkaware’s behaviour change campaigns.

As the most recognised alcohol awareness charity in the UK, Drinkaware is keen to build on its current success and move from general awareness activity towards a more action-orientated, behavioural change PR programme.  Cohn & Wolfe has been tasked with developing targeted, original PR campaigns to encourage parents to speak to their children about alcohol misuse, challenge the social acceptance and desirability of drunken behaviour among young adults, and build awareness of unit equivalents and guidelines among adults.

Pernod Ricard sells share in Suntory
Pernod Ricard Group has sold its minority shareholding in Suntory Holdings Limited (circ. 1%) back by Suntory for 40m Euros. The sale does not change the relationship between the two groups and their joint business in Japan, which continues to distribute certain Pernod Ricard brands, principally Ballantine’s, Beefeater, Kahlua and Malibu.

Scotch delivers £109 a second to UK exports
2010 was a record year for Scotch Whisky exports, according to figures published by The Scotch Whisky Association (SWA). The performance confirmed Scotch Whisky as one of the UK’s top exporting industries.

Global shipments were valued at £3.45bn, a 10% increase on 2009. Scotch Whisky exports have increased by 60% since the turn of the century, adding an extra £1.29bn in value. Export value broke the £100/sec for the first time, contributing an additional £10/sec to UK exports compared to 2009 (£109 v. £99/sec).

The figures reflect continued premiumisation across the industry, with export value increasing despite a marginal decrease in volume (-2% to the equivalent of 1.06bn 70cl bottles). Export volume in 2010 was 7% (or 72m extra bottles) higher than in 2000. The SWA reported encouraging growth across different Scotch Whisky categories. Single Malt exports increased by 18% (to £577m) and bottled Blended Scotch Whisky shipments rose by 5% (to £2.6bn).

Eight of the top 10 markets grew in value, with a strong performance in the US (+19% to £499m) which remained Scotch’s largest export market by value. The ‘BRIC’ markets continued to develop, with exports growing to Brazil (+12% to £67m), China (+24% to £55m), India (+46% to £41m) and Russia (+61% to £31m).

Bottle Green now represents Sorellli in UK
Bottle Green, the Leeds-based importer is now representing Tuscan wine producer, Sorelli Italian wines in the UK. Sorelli wines will be available to taste on the Bottle Green stand, L70, at the London International Wine Fair from 17 to 19 May.

Nadal made ambassador social responsibility

Bacardi Limited has announced tennis champion Rafael Nadal as its new global social responsibility ambassador. The ATP World Tour No1 ranked tennis player now leads the company’s responsible drinking campaign, Champions Drink Responsibly. The campaign will use advertising, public relations, consumer experiential initiatives and social media platforms. This also includes a YouTube channel and, for the first time, a Champions Drink Responsibly Facebook page.

Exports of Provence wines to UK up 134% in 2010

Exports of Provence Wines to the UK increased by 134% in volume and 145% in value in 2010 compared to 2009, with Rosé accounting for 78% of total exports.

Alexandra Fauchas from the Conseil Interprofessionnel des Vins de Provence (CIVP) explains: “We began actively targeting the UK market back in 2007 as we identified great potential for our wines here, and in particular Provence Rosé.  These recent export figures bear out our belief and are extremely encouraging.”

PR activities since 2007 have concentrated on communicating key messages pertaining to the quality, elegance and food-friendly nature of Provence Rosés.  The CIVP has also been working directly with key retailers since 2008 to increase listings and visibility for the region’s wines

SupremeCorq reported to be suspending operations

Customers of US synthetic closure producer, Supremecorq, in Washington, have been notified that the supplier is suspending operations, according to a report in Wine Business. The company has been providing wineries with stoppers since the mid1990’s. Owned by Graham Packaging, the rigid plastic container manufacturer, Supremecorq opened a production facility in Belgium only a few years ago to serve Europe.

Reasons for suspension are rumoured to include a move by some customers from synthetic closures to screwcaps for ready-to-drink white wines, and a return to natural cork for "sustainability" reasons by others.

Supremecorq makes injection-molded closures. Its biggest competitor, is the leader in synthetic closure sales, Nomacorc, which makes co-extruded synthetic closures.

“The wine closure industry has seen a lot of consolidation. Malcolm Thompson, Nomacorc's global vice president of marketing and innovation told The Drinks Report: “All categories of products - including natural cork, screw caps and synthetics - are experiencing this circumstance. Weaker players are dropping out due to their inability to compete and sustain acceptable profitability. In the case of Supremecorq, its technology (injection molding) was inferior in performance and economic competitiveness. Nomacorc’s business remains extremely strong and we continue to see double-digit growth rates. With the launch of our high-performance Select Series products, coupled with our innovative oxygen management technology, Nomacorc will continue to see growth and achieve significant penetration of premium wine segments.”

Amorim, the world’s largest cork stopper producer, has also reported record double-digit sales growth.

Nothing compares to Havana Club's double-digit growth

Havana Club International sales figures for 2010 show a 15% increase on 2009 and double-digit growth in more than 50 countries.

Significant growth in key markets Cuba, Germany, France and the UK has contributed to the brand reaching 3.77m 9-litre case sales, equating to more than 45m bottles sold across 125 countries.

Marc Beuve-Méry, MD of Havana Club International comments: “Following the challenges of 2009, including a tough economic climate and supply issues in Cuba, we focused our investment on impactful marketing activity in 2010, such as the ‘Nothing Compares to Havana’ advertising campaign, to dial up the message that Havana Club is the authentic Cuban rum.

"We are delighted that the positive reaction we have had from this activity so far, is reflected in these extremely promising results and we are confident of another successful year ahead”.

Diageo is to acquire Mey Içki, the leading spirits company in Turkey, for TL3,300 million (£1,300 million) from investment firm TPG Capital (TPG) and Actera. The transaction is expected to complete in the second half of 2011, subject to regulatory clearances.

Last year, Mey Içki reported net sales of TL766 million (£300 million) and EBIT of TL305 million (£120 million). It is the clear market leader in raki (arrack), the biggest spirits category in Turkey, and has a leading position in vodka. In addition the company has an extensive nationwide sales and distribution network.

Turkey is a fast growing economy with a growing and increasingly affluent middle class and consumer spending is forecast to be twice the rate of GDP growth. The acquisition of the leading spirits company in this very attractive emerging market will allow Diageo to accelerate the growth of its complementary international spirits brands with increased access through Mey Içki’s strong distribution network and customer relationships in Turkey. Mey Içki will be consolidated as part of Diageo Europe and will continue to operate under the current management team.

EPI in negotiations to purchase Rémy Cointreau
The Rémy Cointreau Group has entered into exclusive negotiations with EPI with a view to selling its Champagne division, including its Piper-Heidsieck and Charles Heidsieck brands.
EPI is a family owned group run by Christopher Descours.  It owns a number of French trademarks (JM Weston, Bonpoint, Alain Figaret, François Pinet, Michel Perry and Château La Verrerie) and carries out a diversified investment policy. In the event of a favourable outcome to the negotiations, the conclusion of a sale agreement would only occur after consultation with the concerned employees’ representative bodies and authorisation from the board of directors of Rémy Cointreau. Completion of the sale will remain subject to the authorisation by relevant competition authorities.

On-line wine retailer creates singles option

To celebrate the first anniversary of Slurp Express, Slurp.co.uk, a UK online wine retailer, is launching Slurp Singles. From 2 March 2011, Slurp.co.uk will be lifting minimum spend and order restrictions allowing its customers to purchase single bottles of wine across a range of almost 1,300 products with next day delivery at no extra charge. Slurp.co.uk claims to be the only online wine retailer allowing customers to purchase single bottles of wine across such an extensive range of branded products.

Precept Wines acquires Canoe Ridge and SageLands wineries from Diageo

Seattle-based Precept Wines has acquired Canoe Ridge and Sagelands from Diageo Chateau & Estate Wines. The acquisition also includes the Canoe Ridge vineyard located in the Horse Heaven Hills AVA (153 planted vinifera acres). Both Canoe Ridge and Sagelands have a long history in Washington state. Founded in 1994, Canoe Ridge was originally created as a joint partnership between a group of local Walla Walla investors and Chalone Wine Group of Napa, CA. Sagelands was established in 1984 and acquired by Chalone Wine Group in 1999. Both were sold to Diageo Chateau & Estate Wines in 2004.

Advini and Santa Carolina in Chile joint-venture

French wine group AdVini, and Santa Carolina, major player in the Chilean wine industry, have signed an agreement to create a joint-venture in the Casablanca Valley, one of Chile’s most prestigious and quality producing regions.
Viña Casablanca is name of the future company, which will Santa Carolina as its majority shareholder. The company will bring together the assets in the Casablanca Valley of Laroche Chile (part of the Advini group since 2010) and those of Santa Carolina. It will form a vineyard of just under 150 hectares, mostly planted with Pinot Noir and Sauvignon Blanc, together with vinification and bottling facilities and a visitor centre.
With the  Viña Casablanca  and  Laroche  brands positioned at super-premium level, both groups have expressed their wish to continue their commitment ‘to producing wines of great quality from the vineyards of the Casablanca terroir, as well as developing sales, which already stand at 100,000 cases through the distribution networks of both companies.

WSTA appoints new public affairs executive

Carlo Gibbs has taken over from Sarah Davis public affairs executive for The Wine and Spirit Trade Association. Gibbs joins from Apex Communications where he was a public affairs consultant and, before that, he was a parliamentary researcher.  At the WSEA, he will focus on a range of retail issues, including licensing and a range of initiatives aimed at combating underage purchase and possession of alcohol.  He will also provide support to the All Party Parliamentary Wine and Spirit Group.

Guala Closures buys Plastiv

Guala Closures, worldwide leader in the production of non-refillable closures for the international wine and spirits industry, has acquired Spanish closure manufacturing company and former Guala Closures licensee Plastivit, which has facilities in Barcelona and Veracruz (Mexico).

Hotel contract for Alliance Wine

Wine importer Alliance Wine, headquartered in Ayrshire, Scotland, has signed a deal with Apex Hotels, which will include providing the group with bespoke wine lists for each of its premises in Scotland. A key feature of the Apex Hotels contract has been Alliance Wine’s focus on promoting wine sales ‘by the glass', through improved preservation techniques and good quality, affordable wines.

Diageo has entered into a strategic partnership agreement with Hanoi Liquor Joint Stock Company (Halico) in Vietnam. Diageo hasalso agreed to acquire a 23.6% stake in Halico from VinaCapital Vietnam Opportunity Fund, for approximately £33 million.
• Read the report

Waitrose extends partnership with suppy chain solutions provider

Logistics provider JF Hillebrand has been awarded a new three-year contract to manage all wine imports for Waitrose. As a sole strategic partner, the company will provide full supply chain management solutions for its global import trade lanes.

Andrew Shaw, buying manager (wines), Waitrose said: “The JF Hillebrand solution will result in a responsive and robust supply chain which will reduce our stockholding – a critical factor in enabling our network to absorb the tremendous business growth we have planned for the future. By entering this agreement we have established a mutually beneficial partnership with our suppliers and JF Hillebrand and look forward to further developing this in coming years.

The UK has overtaken France for consumer spending on wine and consolidated its position as the world’s biggest wine importing market, reveals data from Vinexpo and IWSR. Moreover, wine drinkers in the UK are starting to trade up to more expensive wines costing more than £6 a bottle making it the second largest market in the world for wines at that price after the US.
• Read the report

What and how much is the world drinking?

The answers to key questions on UK and world drinking trends, according to research commissioned by Vinexpo from IWSR into global trends in the wines and spirits sectors, are summarised in this report.
• Read the report

L-r: Gavin Hewitt (SWA), Alan Winchester (Chivas Brothers), Nick Clegg MP, and Christian Porta (Chivas Brothers).

Nick Clegg praises Scotch whisky on record exports

Cognac reports a strong year

Constellation sells Australian and UK businesses