Allied Domecq busts a groove
A rap record promoting Courvoisier cognac is helping Allied Domecq recover from disappointing first-half trading in the America.
Consumption of the Courvoiser in the US has risen 4.5 per cent in early 2002 amid the success of rap artist Busta Rhymes record "Pass the Courvoisier Part Two", currently riding high in US charts.
The increase, which reverses a decline in consumption, is welcome news for the British drinks company, which said the volume performance of its core brands was "disappointing" in the first half of its financial year.
Allied's global spirits and wine sales volumes fell three per cent in the six months to the end of February after acquisitions were stripped out.
US consumption of other core brands such as Kahlua, Sauza tequila and Maker's Mark bourbon has also picked up in early 2002.
The company is to launch a new cream liqueur called Tia Lusso, aimed at women in their mid-to-late twenties. It expects US regulatory approval for the acquisition of Malibu, the coconut rum, next month.
Chief executive Philip Bowman said Allied was continuing to receive supplies of Stolichnaya vodka, which it distributes and markets in the US, in spite of an ownership dispute between the Russian government and SPI, its Russian exporter.
However, about 800,000 bottles of Stolichnaya belonging to Allied Domecq have not been allowed to leave Russia.
Mr Bowman said Allied was trying to free the shipment, using the US government and other sources to press its case.
Sales in the six months to March rose 17 per cent to £1.7bn. Pre-tax profit rose 48 per cent to £335m. This was heavily influenced by a Mexican tax rebate.
Before goodwill and exceptionals, pre-tax profit rose 6 per cent to £251m.
