A 40 per cent increase in marketing funds should help French wine
makers tackle falling sales in the UK and combat the very real
threat from New World wines.
Added value dairy and soft drinks lead Danone to a sales rise in
the third quarter, but the firm is banking on a new pricing and
innovation strategy to re-ignite itself at home in France.
Italian fraud police have seized more than nine million bottles'
worth of high quality Chianti Classico wine at the renowned Ruffino
winery in Tuscany, seriously threatening the group's supplies at
the start of the new season.
Cadbury Schweppes has hit stormy waters in the US, warning it will
fail to hit profit targets as higher costs and the bankruptcy of a
bottler conspire to foil the group's US revival.
Newly acquired wine brands have continued to carry Constellation
Brands forward in its second quarter, raising suspicions about
weaknesses in the company's organic growth.
Energy drinks push their way to the front of PepsiCo's portfolio as
the Gatorade brand drives forward third quarter sales alongside
more growth from diet and non-carbonated drinks, leaving fizzy cola
festering on the shelf.
Sucralose supplier Tate and Lyle warns profits at its European
sugar refining business have been "substantially reduced"
due to higher costs and oversupplies.
Canadian wine group Vincor has rejected takeover advances from
fellow top-ten producer Constellation Brands, prompting a shouting
match between the two, yet the march of industry consolidation may
be hard to halt.
Soft drinks giant PepsiCo is thought to have asked Cadbury
Schweppes for information on the sale of its European soft drinks
arm, according to a report in the UK's Financial Times.
Pernod Ricard ambled forward in its first half of 2005,
out-performing new rival Diageo, but higher expenses again show the
growing importance of cost-savings and consolidation to the drinks
industry.
The world's largest supplier of private label soft drinks, Cott,
says 2005 profits will be badly hit by low fizzy drink consumption,
rising PET costs and poor performances from own-label bottled
water.
EU farm ministers met with African and Caribbean counterparts on
Monday to discuss the sweeping EU sugar reform that will bring
cheaper sugar ingredients into the bloc.
Developing healthier foods is not only key to stronger sales for
food makers but it also boosts a firm's financial value, as
investors increasingly consider it an important element of
corporate sustainability.
Belgian brewer InBev is making further inroads in the Chinese
market, announcing this week that it has bought the remaining 30
per cent of Ningo-based brewer K.K.
Heineken has come out fighting after announcing losses so far in
2005 with plans to cut back on brands and step up efficiency drives
to beat cost pressures and stagnant Western European beer markets.
As a further sign that packing companies are about to hike prices
in a big way, two of the industry's associations have told
customers they should expect to pay more their products.
Foster's has taken a streamlined approach to 'brand Australia' on
the world wine market, announcing two wineries will be sold off as
the firm tries to realise cost-savings from its Southcorp buyout.
Cash, cash, cash. Castigated as simple asset-strippers out to make
a quick buck, the entrance of private equity onto the food industry
stage has participants chattering in the wings.
Several Dutch brewers, including Inbev and Heineken, could face
tough fines after the European Union charged them with price-fixing
on their home market.
All vending machines are now banned from schools across France in
an attempt to tackle child obesity fears, but the move remains
controversial amid industry accusations of heavy-handedness.
Prices for the omnipresent beverage and confectionery ingredient
coffee leapt this week after flooding caused by Hurricane Katrina
put inventories of beans in New Orleans at risk.
After months of secrecy and whisperings, Cadbury Schweppes has
finally confirmed that it is looking to dump its European soft
drinks arm for a greater focus on confectionery.
Cadbury Schweppes still looks likely to ditch its European soft
drinks arm for the right price, yet it is difficult to find a buyer
for a stumbling business with little growth prospects.
Heineken has ended talks to increase its stake in the Chinese
brewer Kingway, according to a report, after a lack of progress in
discussions with its controlling shareholder GDH.
Russian firm United Confectioners has used new technology to launch
a new range of jelly sweets, tapping in to one of the most
promising sectors in Russia's confectionery market.
Evidence grows that aseptic bottling is one of the biggest emerging
trends in soft drinks production as the technique reinvigorates
sales for Italian supplier Procomac, and the firm prepares to
launch enhanced products at Drinktec...
Nestlé's bottled water sales are rising again in Europe but
competition from both private labels and brands, as well as soaring
plastics costs, are increasing pressure in the sector.
More food and drink makers are to taking recycling seriously in the
UK, but question marks still hang over the quality of recovered
material, says a new study.
The death of France's Galland law has been highlighted as a new
opportunity for branded brewers to fight back against private
labels and poor growth through better deals with retailers.
San Miguel, the biggest food and drink company in the Philippines,
reported a 4 per cent drop in first half profits yesterday, after
higher raw material and packaging costs eroded the benefits of
strong sales growth.
Longer opening hours or not, the latest evidence shows success on
the UK beer market requires a slim-line approach from big brewers,
using strong core brands and counting every penny.
Coca-Cola, hit by a slow-down in fizzy drinks sales, may be looking
to expand into vitamin-enriched milk after the firm's bottling arm
announces talks to buy control of Bravo! Foods.
Under-pressure vintners in southern France have handed out 50,000
free bottles of wine to tourists to publicise their plight as
prices continue to crumble amid a huge bottleneck in supply.
Hopes of an early recovery on the US beer market have been dashed
as Anheuser Busch reports falling domestic sales and warns that it
expects full-year profits to drop below 2004 levels, reports
Chris Mercer.
France will have to give back three times the amount of money it is
receiving in crisis distillation funding for appellation contrôlée
wines as the EU cracks down on wine sector mis-management,
reports Chris Mercer.
Diet trends help Cadbury Schweppes to push forward in the US, yet
its European soft drinks arm looks to be a weak link as tough
market conditions hamper sales, profits and margins, reports
Chris Mercer.
French food and drink giant, Groupe Danone, has acknowledged US
PepsiCo's denial of takeover plans, as the French government
threatens to do everything in its power to stop such a bid from
ever taking place, writes Claire Johnston.
One cannot envy the chief executive faced with a scientific study
that casts doubt over the efficacy or safety of his core product.
But avoiding a sales slump, media vilification and even charges of
fraud means squaring up to such...
One of France's biggest champagne houses, Taittinger, has sold up
to an American hotel firm, but it won't be staying for long as
speculation grows amid a climate for drinks industry consolidation,
reports Chris Mercer.
Another write-down charge hits French firm Danone, taking the gloss
off a rise in dairy and beverage sales, as rumours of a take-over
bid by PepsiCo subside, reports Chris Mercer.
US-based PepsiCo has engaged investment banks Morgan Stanley and
UBS to advise on a possible takeover of Danone, the French bottled
water, yoghurt and biscuits group, according to a report today
inthe Financial Times.
Cadbury-Schweppes looks set to try and sell its European soft
drinks arm, again, but whoever buys it may have a tough time
improving the division's rather average performances, reports
Chris Mercer.