Table of Contents
The Top 10 Spirits Companies
Executive Summary 16
Industry overview 16
Diageo 16
Pernod Ricard 17
Bacardi 18
Brown-Forman 18
Fortune Brands (Beam Global) 19
LVMH (Moët Hennessy) 19
Thai Beverage 20
Belvédère 20
William Grant 21
Campari 21
Chapter 1 Introduction 24
What is this report about? 24
Methodology 24
Chapter 2 Industry overview 28
Summary 28
Introduction 28
Market overview 29
Market size and growth 29
Positioning and performance of top 10 companies 30
Consolidation in the spirits industry 32
Performance by category 33
Trends 34
Shift towards premiumization 34
High growth rates are making emerging markets attractive 35
Increasing taxes may restrict volume growth 36
Emergence of organic spirits 37
Cocktail culture in the US is thriving despite the recession 37
Chapter 3 Diageo 40
Summary 40
Company overview 41
Recent financial performance 41
Performance by business segments 42
Growth strategies 43
Promoting global priority brands 43
Premiumization 43
Strengths 45
Economies of scale 45
Broad product portfolio 46
Strong volume growth in premium brands 46
Weaknesses 46
Decline in sales of ready-to-drink (RTD) spirits 46
High debt obligations 47
Opportunities 47
Initiatives in China 47
Expansion plans in India 47
Expansion in premium products portfolio 48
Threats 48
Threat from private label 48
Slowdown in global drink sales 48
Chapter 4 Pernod Ricard 52
Summary 52
Company overview 53
Recent financial performance 53
Performance by business segments 55
Growth strategies 55
Investment in key brands 55
Premiumization of portfolio 55
Acquisitions and divestments 56
SWOT analysis 57
Strengths 57
Broad product portfolio 57
Strong presence in emerging markets 58
Strong performance of key brands 58
Weaknesses 59
Increased debt level 59
Weak brands in the US market 59
Opportunities 59
Acquisition of Absolut vodka brand 59
Fast growing local brands 60
Threats 60
Competition from local players in emerging markets 60
Threat from private label 60
Chapter 5 Bacardi 64
Summary 64
Company overview 65
Recent financial performance 65
Growth strategies 66
Expanding presence in emerging markets 66
Acquisitions and divestments 67
SWOT analysis 67
Strengths 68
Premium portfolio of white spirits 68
Low debt burden 68
Weaknesses 68
Limited presence in brown spirits 68
Declining cash flow 68
Opportunities 69
Expansion in India 69
Growth in popularity of rum punch 69
Threats 69
Competition from private label spirits 69
Chapter 6 Brown-Forman 72
Summary 72
Company overview 73
Recent financial performance 73
Performance by business segments 74
Growth strategies 75
Geographic expansion 75
Acquisitions and divestments 75
SWOT analysis 76
Strengths 76
Strong growth of premium brands outside the US 76
Depth of product portfolio 77
Weaknesses 77
Slow growth of Jack Daniel’s in the US 77
Rising debt burden 77
Opportunities 78
Expanding presence in tequila category 78
Strengthening distribution network 78
Threats 78
Excise tax increase in California 78
Increase in excise duties on RTD products in Australia 79
Chapter 7 Fortune Brands (Beam Global) 82
Summary 82
Company overview 83
Recent financial performance 83
Performance by business segments 84
Growth strategies 85
Building routes to market through alliances 85
Supply chain management 85
Acquisitions and divestments 86
Strengths 87
Strong portfolio of premium spirits brands 87
Decreased debt level 88
Weaknesses 88
Weak geographic diversification 88
Lack of a premium vodka brand 88
Opportunities 89
Expansion in India 89
Product innovation and new launches 89
Firm footing in the US rum market 89
Threats 90
Increasing excise duties 90
Private label 90
Chapter 8 LVMH (Moët Hennessy) 92
Summary 92
Company overview 93
Recent financial performance 93
Performance by business segments 94
Growth strategies 95
Strengthening brands through advertising and promotions 95
Accelerate expansion of whisky brands through renewed brand identity 95
Acquisitions and divestments 96
SWOT analysis 97
Strengths 97
Strong portfolio of luxury brands 97
Strong brand presence in cognac category 98
Internationally diversified revenues 98
Weaknesses 98
Limited products in white spirits category 98
Slow growth in revenues in Japan 98
Opportunities 99
Increasing presence in China 99
Threats 99
Competition in Chinese spirits market 99
Private Label 100
Chapter 9 Thai Beverage 102
Summary 102
Company overview 103
Recent financial performance 103
Performance by business segments 104
Growth strategies 105
Premiumization through re-branding 105
Investment in distribution network 105
Geographical Diversification 105
Acquisitions and divestments 106
SWOT analysis 106
Strengths 107
Large distribution network in Thailand 107
Strong position in low to mid price segment 107
Weaknesses 107
Over dependence on Thai market 107
Opportunities 108
Expansion in international markets 108
Re-branding initiatives 108
Threats 108
Higher excise tax rates on white spirits 108
Regulatory restrictions 109
Chapter 10 Belvédère 112
Summary 112
Company overview 113
Recent financial performance 113
Performance by business segments 114
Growth strategies 114
Debt reduction 115
Acquisitions and divestments 115
SWOT analysis 116
Strengths 117
Strong portfolio of vodka brands 117
Large market share in Scotch whisky in France 117
Weaknesses 117
Weak geographic presence 117
Bankruptcy protection 118
Opportunities 118
Launch of Sobieski Vodka in the US 118
Expansion in India 118
Threats 118
Intense competition in Polish vodka category 118
Large focus on Vodka 119
Chapter 11 William Grant 122
Summary 122
Company overview 123
Recent financial performance 123
Growth strategies 124
Diversifying revenue base 124
Acquisitions and divestments 125
SWOT analysis 125
Strengths 125
Strong portfolio of Scotch brands 125
Strong financial performance 126
Weaknesses 126
Limited product portfolio 126
Weak distribution network in emerging markets 127
Opportunities 127
Expanding presence in vodka 127
Investment in Grant’s Scotch whisky 127
Strengthening distribution network 127
Threats 128
Growing wine and beer consumption 128
Increased taxes in the UK 128
Chapter 12 Campari 130
Summary 130
Company overview 131
Recent financial performance 131
Performance by business segments 133
Growth strategies 133
Expanding distribution network 133
Strengthening brand portfolio through innovation 134
Acquisitions and divestments 134
SWOT analysis 135
Strengths 135
Strong portfolio of premium brands 135
Strong growth in cash from operations 136
Weaknesses 136
Weaker presence in emerging markets 136
Lacks presence in gin category 136
Opportunities 137
Expansion in emerging markets 137
Acquisition of vodka brands 137
Partnered with Illycaffe to launch coffee liquor 137
Threats 137
Intense competition 137
Consolidated market 138
Chapter 13 11–20 companies 140
Dr. August 140
Company overview 140
Recent financial performance 140
United Spirits 142
Company overview 142
Recent financial performance 142
Rémy Cointreau 143
Company overview 143
Recent financial performance 144
Takara Shuzo 145
Company overview 146
Recent financial performance 146
Asahi 147
Company overview 148
Recent financial performance 148
The Edrington Group 150
Company overview 150
Recent financial performance 150
Constellation Brands 152
Constellation Brands 152
Company overview 152
Recent financial performance 152
San Miguel (Ginebra San Miguel) 154
Company overview 154
Recent financial performance 154
Berentzen 156
Company overview 156
Recent financial performance 156
Société des Produits Marnier Lapostolle 158
Company overview 158
Recent financial performance 158
Chapter 14 Appendix 162
Glossary 162
Index 164

List of Figures
Figure 2.1: Global spirits market size ($bn), 2007–12 30
Figure 2.2: Top 10 spirits companies’ sales growth, 2006–07 32
Figure 2.3: Global spirits market segmentation 2007 v/s 2012 34
Figure 3.4: Diageo SWOT analysis 45
Figure 4.5: Pernod Ricard financial performance ($m), 2005–07 54
Figure 4.6: Pernod Ricard SWOT analysis 57
Figure 5.7: Bacardi financial performance ($m), 2005–07 66
Figure 5.8: Bacardi SWOT analysis 67
Figure 6.9: Brown-Forman financial performance ($m), 2003–07 74
Figure 6.10: Brown-Forman SWOT analysis 76
Figure 7.11: Fortune Brands (Beam Global) financial performance ($m), 2005–07 84
Figure 7.12: Fortune Brands (Beam Global) SWOT analysis 87
Figure 8.13: LVMH (Moët Hennessy) financial performance ($m), 2006–08 94
Figure 8.14: LVMH (Moët Hennessy) SWOT analysis 97
Figure 9.15: Thai Beverage SWOT analysis 106
Figure 10.16: Belvédère SWOT analysis 116
Figure 11.17: William Grant financial performance ($m), 2003–07 124
Figure 11.18: William Grant SWOT analysis 125
Figure 12.19: Campari financial performance ($m), 2003–07 132
Figure 12.20: Campari SWOT analysis 135
Figure 13.21: Dr. August financial performance ($m), 2005–07 141
Figure 13.22: Rémy Cointreau financial performance ($m), 2004–07 145
Figure 13.23: Takara financial performance ($m), 2003–07 147
Figure 13.24: Asahi financial performance ($m), 2003–07 149
Figure 13.25: The Edrington Group financial performance, 2003–07 151
Figure 13.26: Constellation Brands financial performance ($m), 2003–07 153
Figure 13.27: Ginebra San Miguel financial performance ($m), 2005–07 155
Figure 13.28: Berentzen financial performance ($m), 2004–07 157
Figure 13.29: Société financial performance ($m), 2003–07 159

List of Tables
Table 2.1: Global spirits market size ($bn), 2007–12 29
Table 2.2: Top 10 spirits companies by revenue ($m), 1H 2008 31
Table 2.3: Global spirits industry major M&A deals, 2007–08 33
Table 3.4: Diageo snapshot 40
Table 3.5: Diageo financial performance, 2006–07 42
Table 3.6: Diageo business segment performance, 2007 42
Table 3.7: Diageo investments and alliances, 2007–08 44
Table 4.8: Pernod Ricard snapshot 53
Table 4.9: Pernod Ricard financial performance, 2005–07 54
Table 5.10: Bacardi snapshot 64
Table 5.11: Bacardi financial performance ($m), 2005–07 65
Table 6.12: Brown-Forman snapshot 72
Table 6.13: Brown-Forman financial performance ($m), 2003–07 73
Table 6.14: Brown-Forman business segment performance ($m), 2007 74
Table 7.15: Fortune Brands (Beam Global) snapshot 82
Table 7.16: Fortune Brands (Beam Global) financial performance ($m), 2005–07 84
Table 7.17: Fortune Brands (Beam Global) business segment performance ($m), 2007 85
Table 8.18: LVMH (Moët Hennessy) snapshot 92
Table 8.19: LVMH (Moët Hennessy) financial performance, 2006–08 93
Table 8.20: LVMH (Moët Hennessy) business segment performance, 2008 95
Table 9.21: Thai Beverage snapshot 102
Table 9.22: Thai Beverage financial performance, 2005–07 104
Table 9.23: Thai Beverage business segment performance, 2007 104
Table 10.24: Belvédère snapshot 112
Table 10.25: Belvédère financial performance, 2006–07 113
Table 10.26: Belvédère business segment performance, 2007 114
Table 11.27: William Grant snapshot 122
Table 11.28: William Grant financial performance, 2003–07 123
Table 12.29: Campari snapshot 131
Table 12.30: Campari financial performance, 2003–07 132
Table 12.31: Campari business segment performance, 2007 133
Table 13.32: Dr. August snapshot 140
Table 13.33: Dr. August financial performance, 2005–07 141
Table 13.34: United Spirits snapshot 142
Table 13.35: United Spirits financial performance, 2006–07 143
Table 13.36: Rémy Cointreau snapshot 143
Table 13.37: Rémy Cointreau financial performance, 2004–07 144
Table 13.38: Takara Shuzo snapshot 145
Table 13.39: Takara Shuzo financial performance, 2003–07 146
Table 13.40: Asahi snapshot 147
Table 13.41: Asahi financial performance, 2003–07 148
Table 13.42: The Edrington Group snapshot 150
Table 13.43: The Edrington Group financial performance, 2003–07 151
Table 13.44: Constellation Brands snapshot 152
Table 13.45: Constellation Brands financial performance ($m), 2003–07 153
Table 13.46: Ginebra San Miguel snapshot 154
Table 13.47: Ginebra San Miguel financial performance, 2005–07 155
Table 13.48: Berentzen snapshot 156
Table 13.49: Berentzen financial performance, 2004–07 157
Table 13.50: Societe snapshot 158
Table 13.51: Société financial performance, 2003–07 159
Table 14.52: Classification criteria for premium and super-premium categories 163