Industry News

[kitzg]

The following appeared in international (mostly British) press today:

(c) National Post 2000. All Rights Reserved.
LONDON - U.S. consumer products group Fortune Brands Inc. said yesterday it would be interested in any drink brands that may "pop up" from the US$7-billion auction of Seagram's spirits business.
"We are looking at any nice brands that might flow out of Seagram," said Norman Wesley, group chairman and chief executive, at a London conference. While the two front-runners in the auction remain Allied Domecq and a joint bid from Diageo and Pernod Ricard, Mr. Wesley said he would be interested in any spirits brands that might be surplus to the new owner.

In addition, on 10/02 a story claimed that
"Pernod Ricard: (NewsWeb) Company announced agreement to acquire 100% of Boulevard Distillers producer of famous bourbon Wild Turkey."

Greg

[kitzg]

The following is from the Financial Times in London:
Seagram sets out spirits stall to bidders
By Andrew Edgecliffe-Johnson in New York and John Thornhill in London
Published: October 12 2000 19:48GMT | Last Updated: October 12 2000 19:58GMT

The management of Seagram's spirits division began presentations on Thursday to three bidding groups, which have each offered about $7bn for the unit.

Bacardi and Brown-Forman have joined forces to challenge Allied Domecq - which analysts see as the strongest contender - and a bidding team formed by Diageo of the UK and Pernod Ricard of France.

Vin & Sprit, the Swedish group that owns Absolut vodka, is believed to have decided to wait until a later stage of the auction before deciding which of the bidders to partner.

The management team making the presentations had earlier attempted to make its own bid for the business. It is understood that the spirits division's executives informed Seagram that they could raise finance for an offer as high as $8.2bn. However, the management team would not have been able to enjoy any of the distribution synergies available to the other big corporate bidders.

"The big drinks groups that already have big portfolios are the best placed to manage bigger portfolios," said one banker close to the auction.

The executives will make three presentations, each lasting two days. Diageo and Pernod started to hear their presentation on Thursday and will be followed by Bacardi and Brown-Forman. The presentations will end with Allied Domecq, which has yet to sign a confidentiality agreement required by Seagram - suggesting it may still be interested in finding an additional partner.

Graham Eadie, drinks analyst at Deutsche Bank, said he thought the auction would boil down to a straight fight between the two UK drinks companies.

"Our view is that Allied will get it because there are greater synergies available to them, and that they will retain the Absolut agency as well," he said.

Some analysts have calculated that Allied might even be able to afford to buy Seagram's business without issuing new equity, provided it sold off its Dunkin' Donuts and Baskin Robbins retail businesses.

The terms of the confidentiality agreement mean the three bidders have seen relatively little detail about the spirits business to date. Morgan Stanley Dean Witter, Seagram's advisers, issued a relatively thin information memorandum, according to people who received it.

Questions remain over which of the smaller regional brands would be retained by the successful bidder.

Talk that Diageo and Pernod Ricard might bring in a third party at this stage to buy the smaller brands has been dismissed by people involved in the auction, however. If, as seems likely, the successful bidder decides to make disposals following the completion of its bid, it will not be short of interested buyers.

Fortune Brands, which makes Jim Beam bourbon, this week joined the list of smaller spirits companies that have expressed an interest in picking up some Seagram brands should they become available later.

Seagram has some 250 brands in total, including Captain Morgan rum, Martell cognac, and Chivas Regal whisky.

[**DONOTDELETE**]

So ya think it could be picked up for a measly $8,200,000,000.50?
Don't tell Linn. He'll never get his credit card caught up by next Bourbon Fest!

=John=
http://w3.one.net/~jeffelle/whiskey

[**DONOTDELETE**]

John,
Let's be real here. Other than Four Roses the brands are going to be Canadian and American blends so do you really think that Linn would spend money for THOSE products?
Mike Veach

[**DONOTDELETE**]

Hell all I want to do is get that minature Michter's copper pot still going.
The StraightBourbon.com Distillery. Hmmm. One barrel a day. Every batch would also be a single barrel pour. What say gents?

Linn Spencer

Have Shotglass. Will Travel.

[boone]

Hi Linn,

My Uncle Everett,(C.E. Beam) developed the Michter'e Pot Still Whiskey for Pennco Distillers.

I have pictures of him and letters (hand written) on how to start a distillery, make bourbon, rye and corn whiskey. He actually drew a picture of the still on these papers. Some day (when I get time) I am going to post a lot of the family records that I have.

boone

[rwilps]

There you go, Linn - with Boone's help, you da man! Put me in for a charter membership on the board, or at least a barrel share. Just so you run some rye through and take off your hat (not your pants) in salute to our forefathers as the white dog starts to come through.

Ralph Wilps

[**DONOTDELETE**]

Cranking up a legal still is a very expensive propisition. If we did it as some kind of co-op that might work. Of course the still's owner David Beam would have to be cooperative also.

Linn Spencer

Have Shotglass. Will Travel.

[**DONOTDELETE**]

That is purely fasinating news Betty Jo! I take it your Uncle Everett is still alive and well. I know that there are a whole slew of questions out there about Michter's and it's demise. Please ask your Uncle how much it would cost to put that still back into operation. This could also be lab equipment for the American Whiskey Acadamey's course in distillation methodology and practicum. What say you Dr. Veach?

Linn Spencer

Have Shotglass. Will Travel.

[boone]

Linn,

I would love to ask a lot of questions myself but all of them are gone now. I call him Uncle Everett but actually he is my great uncle. My great- grandfather was Joseph L. Beam he had 7 sons all were master distillers, Roy, Desmond, Wilmer, Otis, Harry, Elmo,and Everett. Harry was my grandfather we called him "POP". We are "almost" the forgotten Beams. I hope to keep their life history alive by telling people (like you) about them. Ya see they did make history and it is up to us to keep their memory alive.

Gone and sadly missed,
grand-daughter of Harry
boone