Winebits 408: Diageo sale, wine imports, French wine

diageo sale ? Treasury gets Diageo wine: Get ready for more Big Wine news in the wake of Diageo selling its handful of wine brands to Australia’s Treasury Wine Estates. The $351 million deal gives Treasury four million cases worth of wine in the U.S., which may move it into the top five of U.S. producers. The key is what Treasury will do with the brands, which include Sterling: Will it keep all of them, or sell some it sees as too cheap for its new focus on wine costing more than $10? Also, the purchase was as much about getting Diageo’s infrastructure in the U.S., including its bottling lines. Finally, there is this great quote from Treasury boss Michael Clark: “We remain committed to our strategic road map of transitioning our business from an order-taking agricultural company to a brand-led and capital-light marketing organization.” If anyone can explain what that means, I’ll send you a copy of the cheap wine book.

? It’s all about Italy: We can argue about what wine consumers want, but we can’t argue with the numbers. Hence, Italy’s continued success in selling wine in the U.S., accounting for one-third of all imported wine in dollar terms the first six months of this year. The big losers? Australia, still, as well as Chile and Argentina. Americans want pinot grigio and Prosecco, and Italy is happy to give it to us at mostly cheap prices. The Aussies, on the other hand have little that anyone wants, as sales fell seven percent in dollars and six percent in volume. How the mighty have fallen.

? The French are drinking again: Decanter reports that a government survey found a six percent increase in “occasional wine drinkers,” who accounted for half of the respondents. This is important news in a country where wine consumption has declined steadily for decades. This group included younger drinkers and women, who say they were more likely to have one or two glasses of wine a week. To put this in perspective, that one or two glasses of wine a week is more than bottle a month, which means an occasional wine drinker in France drinks more than the average adult in the U.S.

Leave a Reply

Your email address will not be published. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.