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september 2011 INSIDE THIS MONTH The No.1 choice for global drinks buyers ISC THE INTERNATIONAL SPIRITS CHALLENGE – BRANDY, RUM, DESIGN & PACKAGING TRAVEL RETAIL – TFWA CANNES – DI AWARDS – NEW CUTTY SARK SCOTCH BLENDS AGE AND BEAUTY RUM THE PARTY'S STARTING Contents 51 Agile Media Ltd, Zurich House, East Park, Crawley, West Sussex RH10 6AS +44(0) 1293 590040 drinksint.com 42 It’s time to head south annes is nearly upon us. A month early due to some G20 summit. A fat lot of good that’ll Cdo anyone except the good business people of the south of France resort, 61 who should do well from feeding and watering the fat cats and their advisers, security etc. News 51 Gift packaging Frankly, I was worried when I heard they had moved 05 business News Don’t worry about the environment or the TFWA exhibition a month forward. The prospect 07 people and events price. The more bling the better. It’s a of getting exhibitor news and advertising in from July 08 What’s New wrap for Christian Davis through August gave me something approaching sleepless nights. In our experience, things go very quiet in August, Profile 54 scotch blends particularly in southern Europe. 12 William Chase They dominate scotch whisky sales yet Our travel retail guru, Joe Bates, was consulted. A sort From Tyrrells Crisps to producing vodka only command a fraction of experts’ of crisis meeting over the internet was convened. He was and gin. Hamish Smith meets the man attention. Gavin D Smith redresses the duly briefed and off he went, well in advance. balance And so we waited. But then things started to come in International Spirits and now we have a blockbusting 76-page issue heaving Challenge 61 rum with product news. At this point – writing this leader is 14 Brandies, rum and packaging – the winners The spirit of the sugar cane is getting virtually the last job before production – we were having serious. Lucy Britner likes to party to say: “Sorry, too late.” And I thought Joe and the rest Features of us would have to make things up to fill the space … 29 tFWA Cannes 68 From Our Own Correspondent It has been just about the busiest August I can One month early due to a G20 summit. The latest from the Wine & Spirit remember. I would like to think that this bodes well Joe Bates sets the scene Education Trust for the industry for the rest of the year and into 2012. Maybe, finally, things are starting to pick up and 47 Cutty sark In the Zone confidence is returning. Fingers crossed. The long-established brand has been given 70 bar Zone To those who are going: Have a good Cannes. To those a new look by new owner Edrington. Ian The latest from behind the speed rail. who aren’t: Keep the momentum going. Buxton got an exclusive insight Recipes, personalities. Mix and mash G20? Who needs it? 48 travel retail Awards 72 Departure Zone Christian Davis Editor Drinks International’s Travel Retail The lighter-hearted sign-off for global Awards medallists travellers september 2011 DRINKSINT.COM DRINKS INTERNATIONAL 3 FOr breAkING NeWs VIsIt DrINksINt.com News sA wine industry comes under fire report by human rights group Human Rights Watch has Alambasted the treatment of workers in the South African wine and fruit industries. The report, entitled ‘Ripe with Abuse: Human Rights Conditions in South Africa’s Fruit and Wine Diageo profits up 17% Industries’, documents conditions that include “on-site housing that is industry’s substantial direct and iageo has cited ‘emerging margin improvement, with the first 200 unfit for living, exposure to pesticides indirect contribution to improving Dmarkets’ as a reason behind its basis points achieved in the next three without proper safety equipment, lack working conditions through positive results – including 16% growth years, and double-digit EPS (earnings of access to toilets or drinking water organisations such as the Wine in scotch whisky in such markets. per share) growth. Achievement of while working, and efforts to block Industry Ethical Trade Association The company also said its premium these aims would underpin even workers from forming unions”. (WIETA), and Fairtrade”. Reserve Brands portfolio grew 24% stronger dividend growth.” But trade body Wines of South As a result of the report, Daniel in ‘developed markets’. The Reserve The company has also recently Africa (WOSA) has challenged the Bekele, Africa director at Human Brands portfolio includes Zacapa rum, announced the completed acquisition report. Rights Watch has called for retailers to Don Julio tequila and Tanqueray 10 of Turkish spirits firm Mey Içki, after Su Birch, CEO of WOSA said the press suppliers on worker conditions. gin. receiving regulatory clearances. 96-page report used a “questionable He added: “The answer is not to The company said full-year net The group first announced its basis for the selection of many of the boycott South African products, profits had risen 17% to £1.9bn. intention to acquire Mey Içki in respondents interviewed in the study, because that could be disastrous for Diageo chief executive Paul Walsh February, for an ‘enterprise value’ of while interviews with workers had not farmworkers. said: “While Diageo is not immune $2.1 billion (£1.3 billion). been independently verified and nor “But we are asking retailers to press from a fragile global economy, this is a Diageo last month acquired an had employer reaction to allegations their suppliers to ensure that there are strong platform. additional 5.07% stake in Hanoi been sought.” decent conditions on the farms that “It is the basis of our medium-term Liquor Joint Stock Company (Halico) Birch also said the report “plays produce the products they buy and sell outlook for average organic top line for approximately £6.4 million, taking down the significance of the wine to their customers.” growth of 6%, organic operating its share to 30%. Philippines’ discriminatory tax falls foul of World Trade Organisation he World Trade Organisation applied to those made from other raw favourably than domestic spirits, the has discriminated against imported spirits t(WTO) has ruled discriminatory materials. All domestic, distilled spirits Philippine measure is discriminatory. by assessing a tax that can be as much as excise tax on spirits in the Philippines are made from the designated raw In the US, the Distilled Spirits 43 times greater than the tax rate applied is a violation of WTO rules. materials, whereas imported spirits are Council applauded the decision and to domestically-produced spirits. With a The WTO summary said the issue not. Consequently, imported spirits are has urged the Philippine government trade barrier of that magnitude, it is no is that a low tax rate is applied to subject to one of the higher tax rates. to revise its excise tax structure. wonder US spirits have barely made a spirits made from certain, designated The WTO found that, because Peter Cressy, president of the DSC said: dent in the nearly $3.4 billion Philippines raw materials and higher rates are imported spirits are taxed less “For well over a decade, the Philippines spirits market.” Volare has launched a You Heineken’s Western europe Diageo has announced patron has launched its Tube channel to showcase export & Global Duty Free that Madonna will partner first billboard campaign News the mixability of its range. division has introduced Smirnoff in the next outside of the Us. XO Cafe Volare In the Mix is presented an interactive World of instalment of the Nightlife billboards are in place in by brand ambassador beer display. the shelving Exchange Project. The sandton, Johannesburg, In Brief Gianluigi Bosco. Bartenders features onboard the brand’s goal is to interact south Africa. In October, can submit their own recipes Viking Line rosella and with 10 million people another board will appear and the best will appear retailers can customise from 50 countries, and to on Grayston Highway, to Industry stories from in the 2012 Volare cocktail the offer according to the find a dancer who will join promote patrón silver, with booklet. Turn to page 71 for shoppers’ profile. Madonna’s next tour. a further board to appear around the globe more information. in Cape town in November. september 2011 DRINKSINT.COM DRINKS INTERNATIONAL 5 News FOr breAkING NeWs VIsIt DrINksINt.com German wine co-ops to merge wo German wine cooperatives, members/growers,” said Marian of our shareholders/members and to at €35 million (US$50.5m, £30.6m), Deutsches Weintor and Kopp, managing director/executive secure the long-term income and value based on 2010 figures. TNiederkirchener Weinmacher, board member of Niederkirchener of both companies.” Niederkirchener Weinmacher are preparing to merge this month. Weinmacher. The two boast premium German has been awarded Best Wine The move is recognition by both The two intend to merge their wines with national distribution in Cooperative in the Pfalz 2011 by co-ops that the global wine sector is activities and expand their partnership Germany and international markets, trade title Weinwirtschaft (Meininger evolving, competition is becoming regarding bottling, supply chain and such as the US. Verlag). Deutsches Weintor is one of more intense and expectations of IT. A major brand is Blue Fish Original Germany´s leading premium wine quality are rising. Jürgen Grallath, executive board Riesling, imported by Palm Bay brands with national distribution. “We are convinced this step member of Deutsches Weintor added: International, New York. The merger is expected to be will be in the best interests of our “Our aim is to increase the profits The combined turnover is estimated completed within the next five months.
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