Back in November, Diageo sold 19 low-end brands – what they called 'non-priority' brands – to Sazerac for USD 550m. Then last month, Constellation Brands sold 30 of its own wine and spirits brands to E&J Gallo for USD 1.7bn. These transactions share a lot of similarities – both involve public companies selling low-end assets to a privately held competitor. Could this kind of shake-out of the bottom shelf become a trend – not only for alcohol, but for the entire beverage category?
Today's episode features global strategist Stephen Rannekleiv, senior analyst Maria Castroviejo, senior analyst Jim Watson, and that 'other guy,' analyst Bourcard Nesin.