WASHINGTON STATE LARGEST DISTILLERY OF AMERICAN WHISKEY BOUGHT BY CONGLOMERATE MOET HENNESSY

 

Woodinville Whiskey

Woodinville Whiskey Co., another craft distillery has been bought out but this time by a huge Cognac & Champagne conglomerate, ie, Moët Hennessy.
This is the first time Moët Hennessy are making a move into the craft spirit movement. We know of their ownership of scotch whisky Glenmorangie and Ardberg, but they did not own any small craft spirits.

This follows a trend, last year Pernod bought West Virginia's Smooth Ambler Spirits Co., while Remy Cointreau acquired Westland Distillery also located in the State of Washington.

The sale is a strategic move by the founders Brett Carlile and Orlin Sorensen to help Washington State's largest distillery to grow and expand since establishement in 2010.
Originally, the whiskeys were only available in the State of Washington but one can imagine this will change now.

Source: Woodinville Whiskey Co.

SAZERAC ACQUIRES A DOMAINE IN GRANDE CHAMPAGNE

Sazarac Logo

On 22nd December 2016, in Jarnac (Charente) in front of Notary Marcadié, the family owned Sazerac Company (www.sazerac.com) purchased Earl Domaine du Breuil de Segonzac.

The Sazerac Company (US distributor of Meukow) announced the purchase of Domaine Breuil de Segonzac Cognac from Patrick and Maria Brillet, which is located near the town of Segonzac, in the center of the Cognac region, precisely in the Grande Champagne appellation.

Domaine Du Treuil de Segonzac, Chateau

E.A.R.L. DOMAINE DU BREUIL DE SEGONZAC
Lieu DIT CHEZ COLLET
BP 70032
16130 SEGONZAC

The acquisition includes the cognac distillery, vineyards, existing buildings including a manor-style mansion dating from 1870, an 18th-century restored farmhouse, visitor center and existing stocks. The property is about 220 acres and includes its own grape-pressing operation and distillery with four pot stills, two of which are antique.

Domaine Du Treuil de Segonzac, Distillery

Back in the early 1990s, Patrick and Maria Brillet started turning their production
into certified bio/organic. This decision was rather disruptive in the region as their were among the first.

They originally started converting their wine production in certified bio/organic, and later completed this convertion entirely in about 2006.

About 140 acres (57 hectares) are planted in ugni blanc for the production of cognac.
The Estate produces about 200.000 bottles per year altogether of cognac, pineau des Charentes, wines, and grape juice.

Domaine Du Treuil de Segonzac, Distillery

Mark Brown, Sazerac Company president and chief executive, makes its first purchase in France, and not the least because it makes a connection to the roots of Sazerac, whose ancestors came from France to Louisiana a long time ago and who originated the famous cocktail Sazerac which favors the use of cognac.

Mark Brown is a family descendant who has a very dynamic managerial style. He is an avid reader of the news and makes a digest of the wine & spirits news pretty much everyday and share it with his associates. Sort of his own blog.

Patrick and Maria Brillet will retire and the managerial position will go to Clive Carpenter. Clive has worked about 25 years in executive sales for Hennessy (mostly in Asia), then about 10 years for Camus also mostly in Asia, then semi-retired, and for the past 2 years for Cognac Prunier.

The existing team of Domaine Breuil de Segonzac will remain in place, the contracts in place for vineyard services are being honored, and the visitor center will remain open.

Financial terms of the deal were not disclosed but one would have to believe the price to be in the 6 million euro range, which is a bargain for Sazerac in comparison to the other recent acquisitions which were above 100 million euros.

Domaine du Breuil de Segonzac was using the brand of cognac named "Cognac Ouches du Breuil", which is very difficult to pronunciate in many other languages, hard to remember and rather not famous. The name "Breuil" in cognac and the Cognac region is very common and this brand is already used by many in Cognac and by other spirits, i.e., Calvados Chateau du Breuil for instance.

Therefore, what will Sazerac use? That is interesting. Could they use 'Sazerac'? Perhaps!

I propose: Cognac Sazerac de Segonzac!

===> Becareful Internet site of Domaine Breuil Segonzac has a malware-virus right. User beware!

Sources: Sazerac, Domaine-Breuil-Segonzac, Charente Libre

SPECULATION OF COGNAC REMY MARTIN BEING ACQUIRED BY BROWN-FORMAN

Rémy Cointreau's shares have fallen by around 40% over the past year because of a slowdown in China's economy. China is an important market for Rémy Cointreau because of the amount of business they do with Rémy Martin in Asia. 

Prior to this slow down, China had accounted for around one-third of Rémy’s turnover. In the first nine months of the company’s fiscal year (ended December 31, 2013), overall sales declined by 12.3% to €964.5 million ($1.325b).

However, today Rémy Cointreau’s share price jumped on rumors that Brown-Forman was considering a bid for the French drinks group.

Brown-Forman and Remy-Cointreau

After financial blog Betaville reported on 3rd April that Brown-Forman has been working with several advisers, including Goldman Sachs, Societe Generale, Lazard Bank etc. on a potential acquisition of Rémy, and that “tentative discussions have been held between investment banking advisers to both companies,” Rémy shares rose by as much as 11% on the Euronext Paris Exchange—to more than €65 ($89)—in this morning’s early trading. By mid-day in Paris, Rémy’s share price surge had cooled, but, at around €62 ($85), they were still nearly 5% above yesterday’s closing.

Rémy Cointreau is a family-controlled company, with the Heriard-Dubreuil family holding majority ownership. Over the years, the Heriard-Dubreuils have steadfastly refused to sell, even as Rémy has at times endured more difficult conditions than it does currently, and I doubt the Heriard-Dubreuil will sell.

Brown-Forman is also a family business with 70% controlled by the Brown family in Kentucky. Jack Daniel's is by far its most famous brand (Tennessee whiskey).

Cognac makes up 80 percent of Remy Cointreau's operating profit and China 50% of it. Jack Daniel's make 50% of Brown-Forman profits.

This would be a major deal in the cognac market. I wonder if this is a 'hoax' as it is being reported by Reuters or Bloomberg also as a 'rumor' and 'speculation'.

Diageo, Pernod Ricard or Bacardi may want to get in the game too.

Sources: http://www.shankennewsdaily.com, http://www.reuters.com, http://www.bloomberg.com

REMY COINTREAU IS NEGOTIATING TO ACQUIRE THE MAJORITY OF COGNAC LARSEN

Remy Martin has just announced negotiating the majority acquisition of Cognac Larsen.

Cognac Larsen founded in 1926, is one of the last 100% family owned cognac house controlling the full process of cognac production and is located in downtown Cognac city.

Remy Martin has already sold 202,3 millions euros from Jan-to-July 2012 which accounts for 62% of the Remy Cointreau Group sales during this period.

Société Générale Bank re-evaluated down their valuation of the stock market shares of Remy Cointreau from 93 to 79 euros. The reason is a reduced growth this trimester (+5.3%) compared to +24.4% from the previous trimester. Although they anticipate the growth to continue they do not know how much growth prospects will continue to be generated by Asian markets.

It may appear that Remy Martin is trying to access another stock of cognac and/or perhaps diversify its brand portfolio. Let's hope it is not the disappearance of another smaller house as we want to keep cognac alive in its many different forms. Diversity is key to avoid standardization and boredom.

Cognac Larsen Remy Cointreau Negotiation

Source: Bourse Le Figaro