Young adults' alcohol consumption: UK girls just want to have fun

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Diageo: holding all the aces

Diageo is considering offering financial help to either Pernod Ricard or Constellation Brands, which are involved in a battle to acquire Allied Domecq. Diageo is in a strong position, in that it has the requisite financial muscle to support either side in the bidding war. Whichever side it aligns with, it is well placed to enhance its own offerings by acquiring some useful brands from Allied.

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Pernod/Diageo: drinking with the devil

Pernod and Diageo are cut-throat competitors, but drinking with the enemy can sometimes be your only option. Diageo's agreed purchase of several Pernod brands ensures that Diageo will not back Constellation Brands in sabotaging Pernod's takeover bid for Allied Domecq. Although a Pernod/Allied merger would not be good news for Diageo, it is a far better outcome than a Constellation/Allied tie-up.

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Convenience retail: alcohol on the forecourt equals money in the bank

Although UK on-trade drinks sales are destined to falter, with a smoking ban on the horizon and consumer spending slowing down, there is an opportunity for forecourt retailers to exploit the growing off-trade industry. Both petrol stations and drinks makers would thus benefit from looking into increasing forecourt alcohol sales.

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Diageo: high spirits despite testing times

Despite the challenging environment in Europe and the fact that its biggest competitors are to join forces, Diageo has a strategy in place to maintain its lead in the industry. Primarily, this involves capitalizing on the premiumization trend by introducing price increases, which could prove the perfect tonic to counter the growing threat of private label competition.

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Foster's: no hangover from Southcorp struggle

Foster's has posted an encouraging increase in its FY2005 profits, suggesting its integration of Southcorp is proceeding smoothly. Southcorp is set to play a critical role in the group's future development, giving it essential global reach in the wine market. Though renowned for brewing 'Australia's famous beer', we may now have to consider Foster's equally as a vintner.

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Forecourt shops are becoming the ideal vehicle for a night in

Consumers are increasingly choosing a night at home with a meal and a good wine over the overpriced and low-quality vino often offered at restaurants. They would rather remain in the comfort of their own living room than deal with the noise and push and shove of a crowded pub. Either way you cut it, consumption of alcohol at home is on the increase - good news for licensed forecourt retailers.

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JD Wetherspoon: non-smoking switch may win ashes battle

JD Wetherspoon's revenues have held up despite a declining off-trade market, but margins have been hit by fierce competition and anti-binge drinking measures. Looking forward, the planned UK smoking ban is a major concern: the company is dealing with this threat proactively, but it risks unnecessarily losing revenues while providing competitors with useful learning experience.

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Constellation Wines: brimming with attitude

The younger 25 to 34-year-old segment has historically been overlooked by European and US wine producers. However, with the launch of its new 'young' wine brand called Smashed Grapes, Constellation is clearly seeking to capitalize on the momentum that has seen new hipper wines being made accessible to a younger demographic.

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Wine: grapes of wealth for the US wine market

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