Prices of soft drinks rise amid FX woes, inflationary pressure

Prices of soft drinks are on the rise as the industry continues to grapple with the fallout from macroeconomic headwinds induced by the drop in oil price. Nigerian Bottling Company (NBC), the More »

How brewers are selling beer with folklore

As Nigeria’s recession deepens and consumers pockets are squeezed, majority of those still drinking have shifted their beer preferences to value or low cost brands. Nigerian Breweries Plc, the country’s leading brewer More »

Category Archives: Wines & Spirits

Rumours swirl over Brown-Forman, Constellation Brands tie-up

U.S. spirits firm Brown-Forman Corp has declined to comment on a story first reported by CNBC late on Tuesday, that “people with knowledge of the matter” said that Constellation Brands “has made an approach to acquire” Brown-Forman.

However, a spokesperson for Brown-Forman said, “As a matter of corporate policy, we don’t comment on market rumours or speculation.

Diageo’s – Capital Markets Day 2017 Wrap-up

Diageo held its Capital Markets Day (CMD) on 9th May 2017. The company’s Africa President, John O’Keeffe spoke with analysts on various issues covering the group’s business operations in Africa and Nigeria.

Beverage Industry News (NG) recaps some of the highlights of the day and the spirit firm’s strategy for Africa in 2017 and beyond.

Beam Suntory boosts Q1 profits despite flat sales

Beam Suntory Inc, the wine, beer and spirits arm of Japanese conglomerate, Suntory Holdings Limited said that its first quarter revenue for 2017 fell flat, recording 0.15% decrease in sales to ¥217bn ($1.93bn).

However, the maker of Courvoisier cognac and Basil Hayden’s bourbon among others noted that its spirits segment posted sales growth in the low single-digits, helped by strong growth in brands such as Jim Beam bourbon, Maker’s Mark whiskey and other Super-Premium bourbon brands.

Campari starts year with double-digit growth

Italian spirits group Gruppo Campari reported 15% revenue growth in the first quarter of 2017 (Jan – Mar) to €376.6m ($409.8m). The group attributed its good performance to strong organic growth of its global priority and regional priority brands, a positive exchange rate effect and a perimeter effect, driven by the Grand Marnier acquisition in July 2016, which contributed €32.5m to group sales. The gains from the Grand Marnier sales partially offset declines from termination of some distribution agreements and sale of non-core businesses.

Group Pre-tax profit rose 56.7% to €53.6m in the period.

South Africa’s Distell acquires 75% stake in Cruz vodka

South African wine and spirits producer Distell Group announced on Monday it had acquired a 75% stake in Cruz Vodka from Blue Sky Brand Company, a South African family owned firm with the global rights to distribute the brand.

Distell did not disclose how much it paid for the brand except to say that it is the “fastest growing luxury imported vodka in South Africa”. The firm added that premium-vodka category was one of the fastest growing spirits categories in South Africa and that it was expected to continue growing strongly.

Distell is known for its cider brands, Savanna and Hunter’s Dry as well as Amarula liqueur, among others.

Strong growth in the US and Europe lift Pernod Ricard’s YTD sales

Pernod Ricard, the world’s second-biggest spirits maker on Thursday reported a revenue growth of 3% for the first 9-months of its 2016/17 financial year.

The company behind such brands as Absolut vodka, Jameson Irish Whisky and Martell cognac said that sales for the 9-months ending March 31 reached €7.04bn, from €6.8bn in the same period last year. The third quarter alone saw a 3% rise in sales to €1.987bn ($2.13bn). The spirits maker said that sales were driven by a 7% growth in the Americas, with the United States accounting for 5% of the growth. Brands such as Jameson Irish Whisky, Martell cognac and Altos tequila recorded double-digit sales growth, although, it notes that its Absolut vodka brand was in decline in the United States but there was a strong reception for Absolut Lime in that country.

Cognac sales in Asia boosts Remy Cointreau’s year-end results 4.2%

French Spirits group Remy Cointreau on Wednesday reported its full-year results for the 2016/2017 financial year, which ended on March 31. Total revenue grew 4.2% to €1.09bn ($1.2bn).

The company which publishes its profit figures on June 8 attributes its year-end robust growth to group brands, led by the House of Remy Martin, the company’s revenue driver, accounting for over half of its revenue, recording 9.2% in sales growth to €707.5m.  The liqueurs and spirits segment rose 0.9% to €276.3m in the period.

AB InBev completes sale of Distell stake

Anheuser-Busch InBev said on Wednesday that it has completed the sale of its indirect shareholding in South Africa’s Distell Group, the continent’s largest wine and spirits producer to the country’s Public Investment Corporation (PIC), a state owned corporation that manages the government’s Employee Pension Fund.

The financial terms of the deal were not disclosed.

“The sale was required as a condition of the South African Competition Tribunal’s approval on 30 June 2016 of the business combination between AB InBev and SABMiller,” AB InBev said in a statement.

Moët Hennessy begins year with strong momentum

Moët Hennessy, the wine and spirits arm of French luxury goods maker Louis Vuitton Moët Hennessy (LVMH) reported its first quarter 2017 results on Monday, with the unit posting a 16% rise in revenue to €1.2bn euros, surpassing all other units in the group. The unit saw a 13% organic growth in the period.

NAFDAC nabs eight involved in production of fake drinks

The National Agency for Food and Drug Administration and Control (NAFDAC) on Saturday raided the Ogbaru Relief Market, near Onitsha and arrested eight persons including a nursing mother who were involved in the production and sale of adulterated alcoholic beverages.

The agency shut three shops in the market and seized counterfeit drinks and production materials worth millions of naira.