Exclusive news and research on the wine, spirits and beer business

News Briefs for September 30, 2011

September 30, 2011

William Grant & Sons Ltd reported a rise in operating profit to £132.4 million ($207m) for 2010, compared to £103.6 million ($162m) the previous year. Turnover also increased strongly, rising 14% to £951.5 million ($1.49b). The company credited its July 2010 acquisition of Irish whiskey brand Tullamore Dew from C&C Group, the largest acquisition in the group’s history, as providing a significant boost. It also cited investments such as a major marketing campaign behind flagship Scotch brand Glenfiddich and increased backing for Grant’s, The Balvenie, Hendrick’s and Sailor Jerry as bolstering momentum.

•Grocery chain Fresh & Easy Neighborhood Market has added 130 new wines to its selection. The store now offers over 450 wines in total—170 of them exclusive to Fresh & Easy—including both domestics and imports retailing from $1.99-$40. Fresh & Easy also has expanded its biggest own-brand, Big Kahuna (selling under $3 a bottle), with new wines including Cabernet Sauvignon, Merlot, Rosé, Shiraz, Tempranillo, Sweet White and Crisp White. Elsewhere, Progressive Grocer reports that the chain is expanding its presence in Los Angeles with plans for five new outlets. With those stores open, Fresh & Easy, a subsidiary of U.K. retail giant Tesco, will have 182 locations across Arizona, California and Nevada. Fresh & Easy took a $300 million loss in its last fiscal year ended in February, despite sales growth of 38%. Tesco has said it plans to expand the chain by 50 units in the current fiscal year, with the goal of breaking even by the end of February 2013, when it expects to have 300 locations in place.

•Diageo is returning to the Indian Made Foreign Liquor (IMFL) market in India with local whisky Rowson’s Reserve. The new brand is rolling out in four Indian states this October, priced at around INR640 ($13.10) a 750-ml. The move represents a change of signals for Diageo, which sold off its local Indian whiskey brand Gilbey’s Green Label to Indian entrepreneur Deepak Roy in 2002. Diageo subsequently formed a joint venture with India’s Radico Khaitan Ltd. to launch a local whisky brand called Masterstroke, which fizzled. Rowson’s Reserve will join Diageo imports including Johnnie Walker, Talisker and VAT 69. But it will compete against India’s more affordable whiskies—such as United Spirits’ Bagpiper and Pernod Ricard’s Royal Stag—which represent nearly 60% of the country’s overall spirits market. Premium imports like Johnnie Walker can sell for around $80 or more a bottle in India due to high import tariffs.

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , , ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :