In alcoholic drinks, Constellation Brands has announced that Constellation Wines Australia, formerly the Hardy Wine Company, will sell certain assets and implement changes to its wine portfolio and production footprint. These changes will affect 350 employees, who are primarily associated with the assets expected to be sold. According to the company, the changes will help it to simplify the business and provide better focus on premium brands and operational efficiencies aimed at increasing long-term profitable growth and improved returns. This initiative involves the planned sale of three of the company's 10 production facilities, in addition to the sale of more than 20 vineyard properties and other measures.

Coca-Cola Hellenic Bottling Company has agreed to buy Socib, an Italian bottler, for E270 million. The company believes that the acquisition of Socib will help it to increase the scale of its Italian operations by 25% in volume terms. Doros Constantinou, managing director of Coca-Cola Hellenic, stated that as well as complementing the company's existing central and northern Italian franchise, the acquisition would take the company into the southern Italian market for the first time. Greece-based Coca-Cola Hellenic is the world's second largest bottler of Coke drinks and family owned Socib had been its main competitor in Italy before the announced deal.

Edited by

Adam Smith

IN THIS ISSUE

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Women's Health in Food and Drinks: Future functional ingredients and innovations

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LATEST COMMENT

AG Barr: diversifying its portfolio has proven fruitful
AG Barr has made the biggest purchase in its history through the acquisition of Rubicon, continuing its diversification away from fizzy drinks into stronger growth sectors. The company's move into juices and other healthy beverage sectors is wise: as consumers demand healthier beverages to fit in with healthier lifestyles, these sectors continue to display better growth potential than carbonates. Read full article
Company information: AG Barr plc

Starbucks: responding to downturn with two new measures
Starbucks is to shed 75% of its stores in Australia, following difficulty penetrating the country's coffee market, and provide free top-ups in the UK and Ireland in recognition of a consumer downturn. Although these moves could be seen to be a reversal of the company's global aims and premium image, they should allow Starbucks to provide greater value for money during tough economic conditions. Read full article
Company information: Starbucks Corporation

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RESEARCH IN FOCUS

Understanding Alcoholic Drinking Occasions: The On-Trade

Despite economic uncertainty, consumers' "less but better" attitudes and a desire for indulgence offer marketers opportunities to tap into the on-trade market

Identify the key indicators and the 'who, when and why' of on-trade alcohol consumption

BREWING NEWS

Asia Pacific Breweries Q3 net profit up 34%
Asia Pacific Breweries has reported attributable net profit before exceptional items of SGD42.5 million for the third quarter of 2008, a 34% increase compared to the same period of 2007.
Read full article
Company information: Asia Pacific Breweries Limited

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WINE & SPIRITS NEWS

Constellation Wines Australia to sell some assets, cut 350 jobs
Constellation Brands, a beverage alcohol firm, has announced that Constellation Wines Australia will sell certain assets and implement changes to its wine portfolio and production footprint. These changes will affect 350 employees, primarily associated with the assets expected to be sold. Read full article
Company information: Constellation Brands, Inc.

Belvedere likely to sell Marie Brizard unit
In an attempt to refocus on its vodka business, Belvedere, a French drinks company, is mulling over the sale of its Marie Brizard liqueur unit, media reports have said citing the Les Echos newspaper. Read full article

Diageo partners with Dalkia to create new bio-energy facility
Diageo, an alcoholic beverages firm, has signed a formal partnership agreement with energy management company, Dalkia, to create a new bio-energy facility. Read full article
Company information: Diageo plc

Vina Concha y Toro's Q2 net income up 18%
Vina Concha y Toro, a wine producer and exporter in Chile, has reported that net income was $21.5 million for the second quarter of 2008, an 18.5% increase, compared to $18.2 million for the same period of 2007. Read full article

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NON-ALCOHOLIC DRINKS NEWS

Coca-Cola Hellenic to buy Socib for E270 million
Coca-Cola Hellenic Bottling Company has agreed to buy Socib, an Italian bottler, for E270 million. Read full article

NutriPure Beverages acquires XND Technologies
NutriPure Beverages has acquired XND Technologies. As a result, the company is now a 100% wholly owned subsidiary of NutriPure Beverages. Read full article

Coca-Cola Bottling's Q2 earnings up
Coca-Cola Bottling Company Consolidated, which produces, markets and distributes non-alcoholic beverages, has reported earnings of $15.2 million, or $1.66 per basic share, for the second quarter of 2008, compared to $11.7 million, or $1.28 per basic share, for the same period of 2007. Read full article
Company information: Coca-Cola Bottling Co. Consolidated

Coca-Cola Femsa and Coca-Cola Company to acquire Colombian Brisa water business
Coca-Cola Femsa and The Coca-Cola Company have signed an agreement to jointly acquire the Colombian Brisa bottled water business from Bavaria, a subsidiary of SabMiller. Read full article
Company information: The Coca-Cola Company, Coca-Cola FEMSA, S.A. de C.V.

Hansen Natural Q2 net income rises 31%
Hansen Natural, which develops, markets, sells and distributes alternative beverages, has reported that net income was $50.2 million, or $0.51 per diluted share, for the second quarter ended June 30, 2008, a 31.1% increase, compared to $38.3 million, or $0.39 per diluted share, for the same period of 2007. Read full article
Company information: Hansen Natural Corporation

Nestle's H1 sales up
Nestle has reported sales of CHF53.1 billion for the first six months of 2008, an increase of 3.8% over the same period in 2007, driven by organic growth of 8.9%, including real internal growth of 3.5%. Read full article
Company information: Nestle SA

Hindustan Unilever to increase tea prices
Hindustan Unilever has said that it will soon increase the prices of its tea brands, revealed the Business Standard. The firm has said that high levels of inflation have forced it to go for a price hike. Read full article
Company information: Hindustan Lever Limited

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REPORT BESTSELLERS

MARKET TRENDS

New drinks launches by category, March to May 2008: raising a glass to wine
According to the Productscan database, fruit & fruit flavored drinks, followed by tea and wine & wine coolers, were the leading categories in new beverage products launched worldwide in the three months to May 2008. Compared with the same period of the previous year, the wine & wine coolers category has shown a notable increase, up 87.6%. Other categories to see growth were beer, coffee and energy drinks. Read full article

Product claims: new drinks launches, March to May 2008
According to the Productscan database, upscale, followed by high vitamins and natural, were the leading claims made on new drinks products launched worldwide in the three months to May 2008. While the upscale claim appeared more frequently than in the same period of the previous year, there was a decrease in the number of launches tagged as being pure and natural.
Read full article

Liqueurs and other alcoholic drinks: top flavors in new global product launches
According to the Productscan database, aside from blend, vodka and lemon were the most used flavors in new liqueurs and other alcoholic drinks products launched worldwide between June 2007 and May 2008. Meanwhile, orange dropped to fifth place, and peach, which appeared in fifth place last year, is no longer listed as one of the 10 most used flavors. However, vanilla is a new flavor for the top 10, appearing in sixth place. Read full article

Product claims: new drinks launches, February to April 2008
According to Productscan, upscale was the leading claim made by new drinks products launched worldwide between February and April 2008, appearing on 15% of new launches. Meanwhile, high vitamins and natural remained the second and third most popular claims, respectively. Elsewhere, a slight decrease in the number of new products tagged as containing no preservatives was seen during the period. Read full article

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COMPANY SPOTLIGHT

Southern Wine & Spirits of America, Inc.

Southern Wine & Spirits of America, a wine and spirits distributor, and Glazer's Distributors, a wholesale distributor of wine, spirits and malt, have announced the formation of Southern/Glazer's Distributors of America.

According to the two companies, the new national strategic joint venture for wine and spirits will cover the 38 states that represent more than 80% of the total wine and spirits volume in the US.

The new strategic joint venture will not include the states of Illinois and Arizona, or Glazer's malt beverage business. Closing of the transaction is subject to certain regulatory clearances.

Wayne Chaplin, president and COO of Southern Wine & Spirits of America, will serve as CEO of the new strategic joint venture.

Harvey Chaplin, chairman and CEO of Southern Wine & Spirits of America, and chairman of the new venture, said that it will create the most capable and effective US distributor network in the business, playing to the strengths of both companies.

Key facts

1600 North West 163rd Street
Miami
FL 33169
United States
Tel: 1 305 625 4171
Fax: 1 305 625 4720
Web: www.southernwineandspirits.com

No. Employees: 8,000
Financial Year End: December

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SUBSCRIPTION INFO

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