Another merger possibly in the works

[ratcheer]

(I'm not sure where to post this, because I cannot post in the Industry News forum. But, this certainly relates to bourbon, so I'll put it here. Move it if you need to.)

I read in a prominent article in today's Wall Street Journal that a possible merger of Pernod Ricard and Allied Domecq is being discussed. Both parties realize that they need to get bigger to have any chance to compete with Diageo.

Since WSJ Onine is a paid service, let's see if I can find another reference. Yes, here's a good one: Pernod said to consider Allied Domecq Deal

Tim

[ratcheer]

No comments? I'm wondering which bourbons these corporations produce. The only one I know off the top of my head is Wild Turkey, by Allied Domecq. To me, that is a pretty important one, though.

I have no idea whether Pernod has a hand in any bourbons, though.

Tim

[wrbriggs]

As long as they let Jimmy Russell continue to do his thing, I'll be happy. If the marketroids start coming up with ways to "improve" Wild Turkey (like they did with Jack Daniels at Brown-Forman), then I'll have a fit.

[OneCubeOnly]

The only one I know off the top of my head is Wild Turkey, by Allied Domecq.

Actually, you've got it backwards--WT is owned by Pernod Ricard (and appears to be their only bourbon).

I have no idea whether Pernod has a hand in any bourbons, though.

Again, Pernod owns WT. Allied Domecq owns Maker's Mark.

[ratcheer]

My point, exactly. I don't want some huge corporation messing up my Wild Turkey.

Tim

[ratcheer]

Oh, okay. Thanks.

Tim

[mobourbon]

Pernod Ricard is a big company and they leave WT up to Jimmy Russell. Doesn't Future Brands pretty much leave Jim Beam alone when it comes to production? If it ain't broke, don't fix it.

[TNbourbon]

Just as a point of interest, here are some the companies' respective brands --

Pernod Ricard
<ul type="square">[*]Wild Turkey[*]Abelour and The Glenlivet[*]Chivas Regal[*]Bushmill's, Jameson and Powers Gold Irish whiskies[*]Royal Canadian[*]Jacob's Creek, Long Mountain and Sandeman Port wines[*]Seagram's gin[*]many others[/list]

Allied Domecq
<ul type="square">[*]Maker's Mark[*]Laphroaig[*]Ballantine's and Teacher's[*]Canadian Club and Wiser's[*]Pierre Jouet and Mumm champagnes, Cockburn's Port[*]Clos du Bois and Hawke's Bay still wines[*]Courvoisier, Kahlua, Malibu rum, Suaza, Stoli, Midori, Beefeater gin[*]many others[/list]

[cowdery]

Pernod Ricard is a big company and they leave WT up to Jimmy Russell. Doesn't Future Brands pretty much leave Jim Beam alone when it comes to production? If it ain't broke, don't fix it.

Let me answer that with a little history. Jim Beam started as a family operation with Jacob Beam in the 18th century. It was family-owned and operated, with members of the Beam family making the whiskey, until prohibition. After prohibition, the Beam family no longer owned the company but the new owners--who were individuals, not a corporation--left the Beams in charge. The whiskey at the company's Clermont plant was made by brothers Carl and Earl Beam, then by Carl's son's, David and Baker. Whiskey at the company's Boston plant was made by Booker Noe, Jim Beam's grandson, who was trained by Carl Beam.

In 1967, the company was sold to what is today known as Fortune Brands. Today there is not a single member of the Beam family making whiskey at either of the company's Kentucky distilleries. Fred Noe, Booker's son, is a spokesperson.

In the late 90s, when Guinness merged with Grand Metropolitan to form Diageo, the company's announced business plan was to concentrate on its leading international brands and cut loose the brands that did not fit that description.

At the time of the merger, Grand Met had no bourbons except a U.S. distribution deal with Wild Turkey, then as now owned by Pernod Ricard. Guinness owned George Dickel, Old Fitzgerald, Old Charter, W.L. Weller, Rebel Yell and I.W.Harper. The company was also creating new bourbon brands (Rx), reviving old ones (James E. Pepper) and creating innovative niche products like the Rare Bourbons Collection.

Shortly after the merger was completed, Diageo sold all of its American whiskey brands except I.W. Harper and George Dickel, sold its main bourbon distillery, and effectively exited the American whiskey business.

Draw your own conclusions about the affect of mega-corporate ownership on bourbons.

[mobourbon]

Thanks for that history, Chuck. It explained alot. Do mega - corps have a say in how the bourbon is made?