Word: diageo
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...about leaving the computer at home? Isn't that why companies spent €100 billion on licenses? Apparently 3-G means, as Humpty Dumpty advised Alice , just what 3-G firms choose it to mean. - By Mark Halper Is Guinness Good For You? Global drinks company Diageo bowed to consumer pressure by announcing that starting in 2004 it will make public in the U.S. details of the nutrient, carbohydrate and caloric content of all its beer, wine and spirits products - details that will ultimately find their way onto the packaging...
...spirits. Although recurrent predictions that Scotch would be washed away by a tidal wave of vodka and other trendy tipples have clearly proved premature, the threat remains. Can whisky fight back? It seems to be limbering up. Last year's partition of the Seagram drinks empire by Britain's Diageo and Pernod Ricard of France means that the big three - Diageo and Pernod Ricard, plus Allied Domecq - now account for 57% of global sales. Although global super brands like Diageo's J&B (the world's top-selling Scotch), Allied Domecq's Ballantine's and Pernod Ricard's Chivas Regal...
...Wine Group, third largest wine company in the U.S., acquired Glen Ellen and M.G. Vallejo in May from Diageo, a beverage group based in London. Until then the Wine Group had relied on its Franzia wine-in-a-box brand, which sold in high volume but at a low profit margin. Diageo added Sterling Vineyards--a Napa property that is more upmarket than Glen Ellen or M.G. Vallejo--with its purchase of Seagrams this year...
...winemakers may not sell directly to retailers or restaurants but are forced to sell their goods to wholesalers, who operate under laws that vary widely from state to state. As retailers consolidate into large national chains, so do the distributors. For big producers, this is an advantage: Diageo, the world's biggest alcohol-beverage company, recently began reducing the number of its distributors in each state and persuading each to have a separate division cater exclusively to Diageo's Sterling and Beaulieu brands...
Will the malternatives increase demand for the parent brands? "It's not why we're doing this," says Diageo's Thompson. "But that would be nice." --By Laura Bradford