Allied touts wine acquisitions

By Phil Boeyen, ShareChat Business News Editor

Thursday 1st November 2001

Montana's parent company, Allied Domecq, has highlighted the past year's successful wine acquisition strategy in its latest financial results.

The UK-based company has recorded a trading profit for the year ended August of GBP543 million, up from GBP487 million last year on the back of GBP2.879 billion turnover.

Allied chief, Philip Bowman, says the company is now a major global wine player, ranked fourth globally, following its targeted acquisitions in Argentina, California, France, and New Zealand, and presuming the successful bid for Spain's leading wine producer, Bodegas y Bebidas.

"With these acquisitions, our wine volumes will increase from over 9 million cases to around 23 million cases and wine will in future represent around 20% of Spirits & Wine contribution compared with about 12% a year ago.

Mr Bowman says the company has established a foothold in the important Australasian wine market with its Montana purchase and already has plans to use the winemaker's skills elsewhere in the group.

"The Montana acquisition, in particular, brings with it skills that can be leveraged across our other wine businesses as we share best practice in viticulture, sales and distribution."

Allied has been spending billions of dollars building its wine stake in the past year, including buying major champagne brands G.H. Mumm & Cie and Perrier Jouët in January for GBP 364 million.

"Champagne is an attractive category that has demonstrated strong growth with good margins. The acquisition makes Allied Domecq the joint third-largest Champagne company worldwide," says Mr Bowman.

Allied is planning a new division to manage its wine business from the start of next year.

Besides wine sales the company owns a number of leading spirit brands including Ballantine's, Beefeater, Kahlúa, Sauza, Canadian Club, Courvoisier, Maker's Mark and Tia Maria.

The company also owns the fast-food chains Dunkin' Donuts, Baskin-Robbins icecream and Togo sandwiches, as well as a soft drinks business.

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