Wednesday, October 14, 2015

The great wine brand destroyer buys some more brands

Remember when the release of a new vintage of Rouge Homme was a big wine event? And Quelltaller was a brand of substance? And Tulloch was one of the great names of the Hunter Valley? And Kaiser Stuhl provided us with our daily quaffing and an occasional Barossa gem? And Stock and Hungerford Hill, Woodleys Queen Adelaide and Mathew Lang?  Even those one-time best sellers Bean Ean and Starwine? All these brands disappeared down the vortex of Treasury Wine Estates and its predecessors.
Not to mention the destruction of the value in the Rosemount, Wynns, Seaview, Lindemans, Killawarra, Mildara and Seppelts brands. Treasury and its antecedents Southcorp and Fosters must rank as the great value destroyers of all time.
So forgive me about being a tad sceptical about the announcement today that Treasury Wine Estates has paid a reported $764 million for the wine brands of the international liquor giant Diageo. Sterling Vineyards, Beaulieu Vineyards, Acacia, Provenance and Hewitt in the United States might on paper offer an attractive return but the track record. But will Blossom Hill, the major Diageo brand in the UK, prove anymore profitable under Treasury management than Diageo?

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