Fortune Brands Inc.,
Lincolnshire, Ill., received approval from the U.S. Federal Trade
Commission for its acquisition of the Maker’s Mark bourbon brand and
its facilities, including the distillery in Loretto, Ky., from Pernod
Ricard following its acquisition of Allied Domecq. The brand is among more
than 20 spirits and wine brands that Fortune is expected to acquire from
The company’s new spirits and wine brands
— which also include Sauza Tequila, Courvoisier cognac, Canadian Club
whisky, Laphroaig single-malt Scotch and Clos du Bois wines will more than
double Fortune Brands’ sales of spirits and wine.
In other acquisition news,
Pernod Ricard and SPI Group have worked out an agreement for the exclusive
rights to distribute SPI’s Stolichnaya brand portfolio globally.
Allied Domecq was the previous distributor of the Stolichnaya brand
portfolio. In addition, the groups agreed to discuss an outright
acquisition of the brand by Pernod Ricard should SPI decide to sell in the future. BI
Pepsi names top bottlers
Pepsi-Cola Co., Purchase,
N.Y., selected The Pepsi Bottling Group (PBG)
of Hawaii and the Honickman Group’s Pepsi-Cola Bottling Co. of New
York as its Donald M. Kendall Bottlers of the Year. The companies were
recognized for their contributions to the Pepsi-Cola North America system
in 2004, including customer service, consistently high volume growth and
support of their communities. Bottlers are measured against key performance
criteria, such as volume and sales growth, per capita consumption trends,
product quality and community involvement.
Dawn Hudson, president and chief executive officer at
PCNA, presented the awards at a ceremony during the company’s bottler
meeting last month in Las Vegas. This is the first time in the 10-year
history of the award that two companies were recognized.
“PBG Hawaii and Pepsi-Cola New York both embody
Pepsi-Cola’s winning spirit,” Hudson said. “These
operations have delivered remarkable sales growth across our total beverage
portfolio while tirelessly and generously giving back to the communities
PBG Hawaii had the greatest bottle and can growth
among all PCNA bottlers in 2004, and during the past five years, its volume
growth rate was among the top five in North America. Serving more than
30,000 retail outlets, Pepsi-Cola New York posted one of PCNA’s top
five volume growth rates last year. BI
Cott announces North American realignment
Cott Corp., Toronto,
announced it will realign the management of its Canadian and U.S.
businesses to a North American basis to leverage management strengths,
improve supply chain efficiencies and position the North American business
to become more profitable and responsive to customers’ needs. Under
the new structure, two veteran Cott executives will lead North American
operations and sales. Mark Benadiba, currently executive vice president of
Canada and International, will head North American operations and supply
chain functions, including manufacturing, purchasing, logistics and
quality. John Dennehy, currently vice president of new business development
for Cott USA, will lead North American sales and marketing. Additionally,
Gil Arvizu, who is responsible for building Cott’s Mexican business,
will return to the United States to head the U.S. sales organization.
The company also announced that Robert J. Flaherty,
executive vice president and president of Cott USA., has left Cott to
pursue other interests.
“The new structure puts proven Cott executives
into key leadership positions, with John Sheppard taking a direct role in
turning around and growing Cott’s North American operations,”
said Frank E. Weise, chairman at Cott.
Sheppard added: “With this structure, we will be
a more efficient and effective organization with a critical focus on
operations and sales.” BI
Great American beers
The best in brewing were
honored recently at the Great American Beer Festival in Denver. Organized
by the Brewers Association, Boulder, Colo., the awards recognize beers in
69 categories, with gold, silver and bronze medals given in each. The goal
of the 109-member judging panel is to identify the three beers that best
represent each beer style. Competition entries came from 466 breweries,
with a total of 2,335 beers judged.
This year’s overall brewery winners were:
Large brewing company of the year: Anheuser-Busch, St.
Mid-size brewing company of the year: New Glarus
Brewing Co., New Glarus, Wis.
Small brewing company of the year: Sandlot
Brewery At Coors Field, Denver
Large brewpub of the year: Iron Hill Restaurant &
Brewery #3, Wilmington, Del.
Small brewpub of the year: Pelican Pub & Brewery,
Pacific City, Ore. BI
IBWA hosts bottled water convention in Orlando
The International Bottled Water Association, Alexandria, Va., held its
2005 annual convention and trade show last month in Orlando, Fla. With the
theme “Quality Through Innovation,”
IBWA presented innovative technologies, processes and industry trends to
help bottled water professionals meet marketplace challenges. In addition,
bottled water-focused exhibits showcased processing, packaging, equipment
Newly-elected IBWA Chairman Phil Susterick of Culligan
of Brooklyn Park, Brooklyn Park, Minn., and other board members were
installed for the 2005-2006 period. The association also presented a number
of awards, including the Aqua Awards, which recognized the best in
advertising and public relations programs produced by IBWA member companies
in 2005. The “Best of Show” Award was presented to Oasis Pure
Drinking Water in recognition of its creative contributions in marketing
and public relations.
In addition, IBWA presented its 2005 Route Salesperson
and Plant Manager of the Year Awards to three people representing small,
medium and large companies who have demonstrated a strong work ethic and
interpersonal skills while maintaining successful bottled water delivery
routes. Awards were given to Denny Basich, Clear Mountain Spring Water in
Charleston, S.C. (small company category); Travis O’Hagan, Eureka
Water Co. (medium company category); and Mark Stankiewicz, Nestlé
Waters North America, (large company category).
The Plant Manager of the Year Award, which recognizes
the impact of plant managers, was presented to Trina Coggins of CCDA Waters LLC. BI
The winners of the 2005 IBWA Aqua Awards, which were
chosen from small, medium and large company categories, are as follows:
Masafi Mineral Water Co., medium company
DS Waters of America LP, large company
Special promotions and public relations
Cohutta Water Inc, combined small/ medium company
DS Waters of America LP, large company
Oasis Pure Drinking Water and DS Waters of America,
LP, tie for combined small/large
Package and label design
BIOTA Brands of America Inc., combined
Mountain Valley Spring Co., large company
Mountain Valley Spring Co., combined small/large
Oasis Pure Drinking Water, combined medium/large
Oasis Pure Drinking Water, combined medium/large
Supplier advertising and marketing
Supplier Web site
Blue Hills Spring Water Co. Inc., combined
Oasis Pure Drinking Water, medium company
Nestlé Waters North America Inc., large company
“Best of Show”
Oasis Pure Drinking Water
“Best of Show” Honorable Mention
Mountain Valley Spring Co.
Beer convention works to improve industry
More than 3,600 beer
industry representatives attended the National
Beer Wholesalers Association’s 68th Annual Convention that took place
Sept. 18-21 at the Bally’s and Paris Hotels in Las Vegas. This
year’s general sessions included several guest speakers, panel
discussions, brewery speakers and an industry update. The convention
stressed NBWA’s efforts to strengthen the three-tier system, protect
the 21st Amendment, work to repeal the death tax and oppose a proposed rule
that may allow alcohol beverage labels to include descriptions of alcohol
content per standard serving accompanied by graphics suggesting that all
types of alcohol are equal.
NBWA hosted 25 educational seminars as well, offering
topics for every level of the beer wholesaler organization. The seminars
addressed a variety of issues such as technology, sales and productivity,
legal issues facing wholesalers and future trends in beer wholesaling. With
245 exhibitors filling the tradeshow floor, companies showcased products
and services to help streamline beer wholesaler operations, as well as
promote new beverages, including beers, malts, energy drinks and energy
Monday’s panel discussion featured a beer
industry import set with panelists David Eickhold, Diageo-Guinness USA;
William Hackett, Barton Beers; Simon Thorpe, InBev USA; and Frans van der
Minne, Heineken. The panel yielded a discussion of domestic price
discounting, and underscored that the beers growing in sales also are the
ones that have gone up in price. InBev USA’s Simon Thorpe said,
“If we can maintain strong import pricing, then consumers will
follow.” The panel also emphasized that on-premise sales are
absolutely critical in promoting sampling of imports, distinguishing brands
and developing an image, as have been successfully done with Stella Artois
and Guinness. With the introduction of Heineken Light, panelists agreed
that the market is ready for luxury light beers and sees huge potential for
this category, with panelist hinting at other light import beer
introductions in the near future.
The panel discussion the following day hosted a beer
industry financial update with panelists Christine Farkas, Merrill Lynch
Equity Research; Bonnie Herzog, Citigroup; and Nik Modi, UBS. Panelists
addressed the beer industry’s declining volume and pricing and
increasing costs. The group stated the current pricing environment is
hurting domestic brand equity, with some panelist feeling the market is
stabilizing and others saying it should next year. The discussion generated
statements from the analysts that too many choices have dampened the
market, with the panelists emphasizing that the economic situation cannot
be just blamed on wine and spirits. With multi-brand beer distributors
performing better in the market, the analysts also added improving brand
equity should be the suppliers’ job.
NBWA’s convention also introduced its 2005-2006
slate of officers: Chair, Phillip A. Short, P.A. Short Distributing Co.
Inc. in Hollins, Va.; Immediate Past Chair, Jeffrey S. Vukelic, Saratoga
Eagle Sales and Service in Glens Falls, N.Y.; Vice Chair, Betty Buck, Buck
Distributing Co. Inc. in Uppper Marlboro, Md.; Secretary, Phillip Terry, Monarch Beverage Co. Inc. in Indianapolis; and Treasurer,
Aldo Madrigrano, W.O.W. Distributing Co. Inc. in Sussex, Wis. BI
2005 NBWA Award Recipients
Public Affairs Award
Herbert Schilling, chairman of Schilling Distributing
Co. in Lafayette, La.
David Hutchinson, president of Valley Distributing
Corp. in Salem, Va.
Life Service Award
C.L. Fox, chief executive officer of Fox Distributing
Co. in Shelby, N.C.
Tom LaRose, chairman emeritus of House of LaRose in
Virgis Colbert, executive vice president of Miller
Jerry Clinton, chairman and chief executive officer of
Grey Eagle Distributors in Maryland Heights, Mo.
Carrol Orrison, president and chief executive officer
of Casper Beverage in Casper, Wy.
R. Kenneth Kerr PAC Award
Joe Fabiano, president of Fabiano Brothers in Mt.
Industry Service Award
Michael Lashbrook, president of the Michigan Beer and
Wine Wholesalers Association
Mike Madigan, president of the Minnesota Beer
Frans van der Minne, president and chief executive
officer of Heineken USA
Norman Adami, president and chief executive officer of
Miller Brewing Co.
2005 President’s Award for Legislative
Representative Kenny Hulshof (MO-9)
Representative Bud Cramer (AL-5)
Representative Dave Weldon (FL-15)
Senator Jim Inhofe (OK)
NBWA Chairman’s Scroll
Mark Doll, former NBWA board chairman, and president and chief executive officer of Doll Distributing in Council
NACS show moves to Las Vegas
In the wake of Hurricane
Katrina, the National Association of Convenience Stores has moved the NACS
Show 2005, originally scheduled to take place this month in New Orleans, to
the Las Vegas Convention Center, Nov. 16-18. Despite the move, the show
still will feature a full line-up of educational sessions and an exhibit
floor that is expected to draw 1,400 exhibitors in 370,000 square feet of
exhibit space. In all, more than 24,000 people are expected to attend.
Beverages of all kinds, from hot, cold and frozen
dispensed beverages, beer, nutritional drinks, packaged soft drinks and
alternative beverages, and bottled water can be found at the NACS show,
which has become a popular place to feature new products. In fact, the show
will include a “What’s New for Convenience? Cool New Products
Preview Room” that will showcase new items by category.
Both the opening and closing general sessions
scheduled for New Orleans will take place in Las Vegas, featuring Ann
Rhoades, former executive vice president of people at JetBlue
Airways, and former U.S. Secretary of State Colin Powell, respectively.
Rhoades has led several high-profile companies and is
said to specialize in creating workplaces where people love to come to
General Powell is one of the most respected statesmen
in U.S. history. During his tenure, he was tasked with building coalitions,
forging alliances and spreading the universal values of democracy and
freedom throughout the globe, and in doing so became one of the most easily
identifiable and revered people in the world.
Other sessions of interest to beverage companies
Emerging Customer Segments and the Convenience Store
As 70 million teens and twentysomethings come of age
and convenience retailers face greater competition, what do we need to know
about these emerging customer segments? The NACS/Coca-Cola Leadership
Council will report on its consumer research initiative that examines and
compares the shopping habits and preferences of teens and twentysomethings.
Coffee: The New Black Gold
Now that a cup of coffee provides more profit than a
gallon of gas, retailers are focusing more and more on how to compete with
Starbucks. This session will highlight several retailers who are excelling
at serving a hot cup of Joe to their customers and share what it takes to
keep them coming back.
Fueling the Fire: Loyalty Marketing Best Practices for
More and more convenience
and petroleum retailers are embracing the concept of loyalty marketing in
an effort to increase sales from their best customers. This session will outline the key criteria and best practices to
make loyalty marketing work in the convenience store industry by addressing
how a true loyalty marketing program differs from a simple discounting
scheme, what loyalty marketing can and can’t accomplish, and the 10
best practices for convenience store loyalty marketing.
Retailer-Supplier Relationships: Getting to a Win-Win
The relationship between buyer and seller is always an
interesting one. This session will feature a panel of retailers discussing
category management, product innovation, technology, communicating what it
takes to have a successful relationship, and getting to that
“win-win” for both organizations and the end consumer.
What’s Hot: Trends in New Products
Each year the NACS Show invites experts in the field
of new products to update the industry on the hot new products that have
been introduced and how they are performing in the marketplace. This
session will feature consumer trends in new products and identify ways
convenience store operators can capitalize on these trends.
New Product Presentations: Products for Resale
The No. 1 reason attendees come to the NACS Show is to
see new products and services. This session is designed to help buyers find
the most innovative ideas available at the show by providing attendees with
a “sales call” from exhibiting companies with products for
Age Restricted Sales Training
New updated Techniques of Alcohol Management Training
followed by a discussion regarding several of the challenges and strategies
associated with age restricted sales.
For more information about the NACS Show 2005, visit
Did you know?
The convenience industry posted $394 billion in
total sales in 2004.
Packaged beverages (non-alcohol) are the
second highest selling products in the convenience channel and
accounted for approximately $16.1 billion in sales.
Alternative beverages, sports drinks, iced teas
(ready-to-drink) and bottled waters drove that figure.
Beer is the fourth highest selling product
category in the convenience channel and accounted for more than
$15.6 billion in sales.
Beer-related businesses, including brewers,
wholesalers, brewer suppliers and retailers contribute more than $162
billion annually to the U.S. economy.
Beverage Industry’s November issue highlights the 100-year advocacy of the American Beverage Association and what’s next for CEO Katherine Lugar and a new plastics initiative, Every Bottle Back. This issue includes a special report on craft beer, an Up Close With feature on PRESS hard cider and what is sparking innovation in natural colors. Read more about how protein is powering up beverages and how warehouses are using WMS and WCS systems to streamline operations. As usual, the latest trends in new products, packaging and ingredients are highlighted.
Check back throughout the month for additional content.