Market Watch, March 1, 2017

MARCH 2017 MARKETW ATCHMAG COM MARKET WATCH 9 Beam Suntory Campari Link With Southern Glazers In New Deals Beam Suntory has inked a new long term distribution deal with Southern Glazers Wine Spirits its largest distributor partner which will continue the two companies existing alignment across nearly three quarters of the United States Running through 2030 the new performance based agreement covers 21 open markets as well as 16 control states in which Southern Glazers handles Beam Suntorys portfolio Southern Glazers executive vice president Tony Truzzolino a former Beam executive was named to oversee the wholesalers business with Beam Suntory last year In addition Campari America and Southern Glazers formed a new pact to align in more than 40 markets Campari is shifting to Southern Glazers in 14 new markets while maintaining its existing relationship in 27 markets The 14 new markets include Texas Louisiana Nebraska North Dakota South Dakota Maryland Washington D C West Virginia North Carolina Virginia Mississippi Alabama Oklahoma and Montgomery County Maryland Campari previously partnered with Republic National Distributing Co the countrys secondleading spirits and wine distributor in all of these markets Pernod Pours 11M Into Midleton Expansion Pernod Ricards Irish Distillers unit is investing 105 million euros 11 million in its Midleton Distillery in County Cork Ireland intending to grow the facilitys single pot still capacity by more than 30 percent The expansion will include the installation of three new copper pot stills which are expected to be operational by this June According to Irish Distillers chairman and CEO Jean Christophe Coutures the investment will help the company keep pace with growing demand for Jameson which was up 155 percent to 28 million cases in the United States last year according to Impact Databank and its single pot still Irish whiskey range which includes the Redbreast Powers Green Spot and Midleton brands The expansion follows several years of significant investment with Irish Distillers having poured roughly 120 million euros 1273 million into Midleton since 2012 Most recently Pernod Ricard repurposed a warehouse at the Midleton site turning it into a new micro distillery dedicated to innovation and experimentation In August 2016 the company also announced an 11 million euro 117 million redevelopment project at its Old Jameson Distillery in Smithfield Dublin Diageo Beer Co To Build New Guinness Brewery In Maryland Diageo Beer Co USA is set to build a U S version of its Dublin Ireland based Guinness Open Gate Brewery ending a 63 year absence from brewing in the United States The facility will be added to Diageos existing operations in Relay Maryland The new site will include a midsized Guinness brewery visitor center and microbrewery as well as packaging and warehousing operations It will serve as a base for producing new Guinness beers for the U S market Diageo aims to open the facility this fall mw The Editors Sandra LeDrew Tapped As President Of Winery Operations At Terlato Veteran wine executive Sandra LeDrew has been appointed president of winery operations and chief development officer of Terlato Wine Group LeDrew will be based in California and report to president and CEO Bill Terlato Her role as president of winery operations is a new post and includes responsibility for Terlato wineries around the globe including California holdings such as Rutherford Hill Chimney Rock and Sanford as well as joint ventures in France Italy and Australia She will also oversee production of the Federalist Seven Daughters and Terlato Family Vineyards brands as well as all direct to consumer business and retail sales at Terlatos wineries As chief development officer a role in which she replaces Chris Lynch LeDrew will help drive expansion efforts as Terlato looks to acquire new vineyards and wineries and add brands to its portfolio LeDrews career has focused on publicly quoted wine companies From 2012 through early 2016 she was president of Treasury Wine Estates Americas helping to turn around a business that had been flailing prior to her arrival Before that she served as president of Diageo Chateau Estate from 2009 to 2011 LeDrew told Shanken News Daily that Terlatos continuity in leadership and dedication to the industry were important draws The Terlatos have a remarkable family business with a spectacular portfolio of brands anchored in luxury she says This is a company that is very clear about where it wants to go and it has its eye on the long term mw THROUGH THE GLASS Sandra LeDrew has been named the new president of winery operations and chief development officer at Terlato Wine Group PHOTO BY MICHAEL MARQUAND