BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Doomsday Scenario: Cheap vodka, rural America goes dark ]]>http://www.bloggingstocks.com/2009/03/09/doomsday-scenario-cheap-vodka-rural-america-goes-dark/http://www.bloggingstocks.com/2009/03/09/doomsday-scenario-cheap-vodka-rural-america-goes-dark/http://www.bloggingstocks.com/2009/03/09/doomsday-scenario-cheap-vodka-rural-america-goes-dark/#commentsFiled under: , , ,

Good morning! A New York Times article reports that cheap booze is seeing a nice sale spike as folks swap out premium or even mid-market brands for rotgut. Popov & Tonic, anyone? The Prince of Darkness over at Zero Hedge illuminates us as to the possibility that a major supplier of financing to rural electrical cooperatives could go dark, taking down dozens of utilities in the sticks with it. Maverick ratings agency Egan Jones began calling this a while back.

Continue reading Doomsday Scenario: Cheap vodka, rural America goes dark

Doomsday Scenario: Cheap vodka, rural America goes dark originally appeared on BloggingStocks on Mon, 09 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alcoholcheap liquorconstructioncornEUexportsimportsmilkSan FrnaciscosubsidiesvodkaMon, 09 Mar 2009 07:00:00 EST<![CDATA[Booze a defensive play in a bear market]]>http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/#commentsFiled under: ,

Bad news in the market means good news for Constellation Brands Inc. (NYSE: STZ) which manufactures and markets spirits, wines and beers under a variety of labels. Brands include Robert Mondavi wines, Corona beer and Black Velvet whiskey. When the economy is good, folks drink to celebrate. When the economy starts to tank, people drink to commiserate. Constellation benefits either way. The company just released 1Q 2009 results. Profits jumped 50%! Diluted (no pun intended) EPS was $0.20, up from $0.13 in 1Q 2008. Consoldiated net sales increased 3%, with wine sales up 15% and spirit sales, led by vodka, up 9%. Constellation offloaded several lower profit margin lines including Almaden and Inglenook wines, and added higher product margin line wines Clos du Bois and Wild Horse.

Investors, whether drinkers or tea-totalers, like the numbers. The stock is up over 5% in the last two days, closing on July 2nd at $21.22

Booze a defensive play in a bear market originally appeared on BloggingStocks on Thu, 03 Jul 2008 12:21:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alcoholbeerBlack velvet whiskeyBlackVelvetWhiskeyboozeConstellation Brands IncoropratedConstellationBrandsIncoropratedCorona beerCoronaBeerinthenewsliquorRobert Mondavi wineRobertMondaviWinespiritsSTZvodkaThu, 03 Jul 2008 12:21:00 EST<![CDATA[Is Absolut worth $8.9 billion? Absolutely!]]>http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/#commentsFiled under: ,

When the Swedish government put Vin & Spirit, parent company of Absolut Vodka, up for sale more than a year ago, industry experts estimated it would fetch over $4 billion.

Now, Pernod Ricard, a French liquor company, is buying the brand for $8.89 billion. Absolut is the third largest spirit brand in the world, and the sale attracted the interest of many of the industry's top players: Fortune Brands (NYSE: FO), Diageo and Bacardi.

What makes the high valuation afforded to Absolut so interesting is that Pernod Ricard is paying nearly $9 billion for a brand that only really came to prominence in its current form in the 1980s.

With its racy and provocative ads (like the one on this post), Absolut was one of the first mainstream brands to aggressively target the gay community. Back when the sale effort was first announced, I opined that targeting gay media outlets was a decision that paid off, as this large, and often affluent population group, now counts Absolut as its vodka of choice. Perhaps a company like Budweiser, which has been widely criticized for spending money on ads (such as the Super Bowl) that have done little for the brand, could learn something from Absolut's edgy marketing.

The M&A field is in a rough patch right now, struggling from a tough debt market and general economic malaise. But apparently, strategic buyers are still able to pay up for strong brands.

Is Absolut worth $8.9 billion? Absolutely! originally appeared on BloggingStocks on Mon, 31 Mar 2008 09:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Absolutalcoholfofortune brandsFortuneBrandsinthenewspernod ricardPernodRicardvodkaMon, 31 Mar 2008 09:31:00 EST<![CDATA[Absolut up for sale]]>http://www.bloggingstocks.com/2007/03/06/absolut-up-for-sale/http://www.bloggingstocks.com/2007/03/06/absolut-up-for-sale/http://www.bloggingstocks.com/2007/03/06/absolut-up-for-sale/#commentsFiled under: , , , , ,

Any heavy drinkers with deep-pockets may want to get in touch with the management of Absolut Vodka, which recently put itself up for sale. As the number 3 premium spirit in the world, the company is expected to fetch over $4 billion, but it could be a bargain. In the highly competitive world of premium alcoholic beverages, Absolut has distinguished itself with its creative, even brilliant, advertising campaigns over the years. Suitors include Diageo plc, Pernod Ricard and Fortune Brands, and there may be more. Some expect that Brown-Forman will take a look, and it's also possible that private equity might bite, although the price is likely to make it more suitable for a strategic buyer.

One interesting thing about Absolut is that it was one of the first brands to actively target the gay community in its ad campaigns. It was a decision that paid off, as this large, and often affluent population group, now counts Absolut as its vodka of choice. Perhaps a company like Budweiser, which has been widely criticized for spending money on ads (such as the Superbowl) that have done little for the brand, could learn something from Absolut's edgy marketing.

Absolut up for sale originally appeared on BloggingStocks on Tue, 06 Mar 2007 12:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AbsolutAlcoholVodkaTue, 06 Mar 2007 12:05:00 EST