Saz purchasing Corby brands and distillery

[Josh]

Saz exapanding again, purchasing 17 brands from Corby and "shares" in their distillery near Montreal. Article here: http://www.bizjournals.com/louisville/news/2011/09/28/sazerac-purchasing-canadian-brands.html

Thanks to Duncan Ayre for the link via twitter.

[Jono]

I did not realize that Corby had such an extensive portfolio of brands...and representation for Pernod Ricard:

http://www.corby.ca/portfolio.php?id=27

Jameson, Chivas, Glenlivet, Aberlour, Absolut, Wisers etc etc.

The links and connections in the alcohol beverage industry are a maze to be sure.

[p_elliott]

Ok I'm confussed I thought Jim Beam (Fortune Brands) owned De Kuyper ???

[Josh]

Yeah, I was puzzled by that too. Maybe Corby owned the brand in Canada only?

[cowdery]

DeKuyper is still owned by DeKuyper in Holland. Beam has U.S. marketing rights, Sazerac now has Canadian marketing rights.

[p_elliott]

DeKuyper is still owned by DeKuyper in Holland. Beam has U.S. marketing rights, Sazerac now has Canadian marketing rights.

[ThomasH]

This is a good thing. Anytime you can move a brand or control away from a Diageo or Pernod Ricard type outfit is nothing but a plus for the brand and market. Neither is known for their common sense decision making. Diageo needs no explanation. Pernod Ricard was the ones that came up with the bright idea of tankering and bottling WT products in Arkanas!

Thomas

[p_elliott]

Pernod Ricard was the ones that came up with the bright idea of tankering and bottling WT products in Arkanas!

Thomas

I agree and for the life of me why did Campari (sp) built a $50 million distilliary and did not build a bottleing facility? Due to an out dated contract with Pernod Ricard?

[ThomasH]

Hopefully a bottling facility in Lawrenceburg is on the horizon!

Thomas

[callmeox]

I agree and for the life of me why did Campari (sp) built a $50 million distilliary and did not build a bottleing facility? Due to an out dated contract with Pernod Ricard?

It was probably a mutually agreed upon stipulation of the sale. Campari had one less big thing to worry about in the short term and Pernod retained work for their Arkansas facility.

There's plenty of room in Lawrenceburg, so if it makes fiscal sense Campari will do it when they are able contractually.

[cowdery]

Campari's lead brand in the U.S is Skyy Vodka, which I saw being bottled at Brown-Forman one day. Clearly, the company is very satisfied with contract bottling.

Campari had no reason to void its bottling contract with Pernod, but notice that it is relatively short term. Since Wild Turkey is their only U.S. production facility (I assume), I expect they will eventually build a bottling hall at Lawrenceburg to use for all of the company's North American bottling, just as Beam has consolidated all of its North American bottling at Frankfort and Clermont.

With the new distillery, Turkey is increasing production significantly but it will be years before that product will need to be bottled. I expect there will be a tipping point when it makes sense for them to do it themselves.

Remember that in addition to building a building and buying bottling equipment, bottling is very labor intensive. Adding bottling at Lawrenceburg will take that facility from a few dozen employees to a few hundred. It's a big step.