Industry Issues
March 1, 2005
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Diageo Forms Luxury Brands Group
Diageo has established a new brand division to focus on marketing its luxury
brand portfolio. The group will be responsible for Ciroc; Tanqueray No. 10;
Don Julio; Bulleit Bourbon; Johnnie Walker Green, Gold and Blue Label;
Godiva, The Classic Malts of Scotland, and any future brands launched in
the luxury category.
In explaining the creation of the new group, Ivan
Menezes, Diageo North America president and chief executive officer, said,
“The capabilities required to build luxury brands are fundamentally
different from the rest of Diageo’s premium portfolio.”
Katherine Nicholls will lead the Reserve Brands group
as vice president of marketing, Reserve Brands. Efren Puente will serve as
director of marketing, Reserve Brands; and Glen Philpott will be commercial
director.
The company says the group will develop the luxury
brand portfolio by “amplifying Diageo’s high-image event reach,
developing relationships with leading luxury brands, and optimizing
strategic alliances with media partners.”
BI
Palandri Wines creates U.S. importer
Palandri Wines Ltd. of
Margaret River in Western Australia has formed Palandri America Inc. to
import and market its wines.
“By importing and marketing the Palandri
portfolio of wines from Western Australia directly, we are creating
efficiencies in distribution and sales to ensure added value to our
distribution partners, consistency in supply and pricing as the Palandri
brand continues to grow,” said John Castillo, president of the new
U.S. company.
The company will be based in Houston, Texas. Bill
Ellerman will serve as regional manager for the western United States,
Robert Iandolo regional manager for the northeast, Michael Karaus regional
manager for the southeast, and Steve Rubsam regional manager for the
Midwest.
Palandri’s initial U.S. releases will
include a Shiraz, Cabernet Sauvignon, Cabernet Merlot and Merlot, and will
retail for $14 per bottle. BI
Apple & Eve buys Northland juices
Apple & Eve, Port
Washington, N.Y., has acquired Northland Cranberries Inc.’s juice
division for approximately $10.8 million. The companies also have entered
into a supply agreement that allows Apple & Eve to purchase $6.7
million of cranberry concentrate from Wisconsin-based Northland, with a
nine-year option for additional concentrate.
The purchase includes the Northland, TreeSweet and
Awake brands, and the reassignment of the Seneca brand license. It gives
the company a leading position in cranberry’s 100-percent juice
segment. Apple & Eve says it will maintain the existing Northland brand
names, and Northland’s national distribution will help it expand in
the grocery channel from approximately 40 percent of the United States to
national distribution. BI
Brown-Forman moves wine unit to Louisville
Brown-Forman Beverages says it will consolidate its wine business
in Louisville, Ky., reducing its operation in San Rafael, Calif.
“We are constantly striving to improve our
organization to best meet the needs of our consumers and maximize our
brand-building opportunities. An important part of this evolution is our
decision to create a center for wine brand-building excellence based here
at Brown-Forman’s corporate headquarters in Louisville, where we have
excellent support infrastructure, including access to hundreds of talented
people,” David Dearie, president of Brown-Forman Wines, said in a
statement.
Brands making the move include Korbel Champagnes,
Fetzer Vineyards, Sonoma-Cutrer, Bonterra Vineyards, Mariah, Jekel
Vineyards, Bolla, Fontana Candida Italian wines, and Michel Picard French
wines. BI
Molson Coors closes Memphis plant
In one of its first moves
as a combined company, Molson Coors Brewing Co. announced it will close its
Memphis, Tenn., brewery in 2007. The closure is one of several moves
anticipated to help it achieve cost synergies. Molson Coors plans to shift
production to other brewing facilities and will begin a phase-out in
Memphis this year. The brewery, which employs 410 people, has a brewing
capacity of three million barrels per year and produces Coors Light, Zima
XXX, Blue Moon and Keystone Light. BI
