Strauss buys Russian coffee brand

Ambassador Coffee Brand

Israeli food company to pay $8 million for Ambassador brand, which includes instant freeze-dried coffee, roasted coffee and ground coffee, and another $ 2.4 million for non-compete clause on part of seller

Strauss is continuing to chip away at the ice encasing its Russia coffee sales: The company announced Sunday the acquisition of the Ambassador coffee brand which sells in Russia, the Ukraine and Moldova, in a deal valued at $10.4 million.

Strauss will pay $8 million for the brand which includes instant freeze-dried coffee, roasted coffee and ground coffee, and another $ 2.4 million for a non-compete clause on part of the seller – the Sucafuna group.
 
Strauss has designs to turn the Russian brand, which chalked up $10 million in sales in 2010, to a premium brand in Russia and other FSU countries. The company estimates that no further major investments will be required for this.

The acquisition follows the acquisition of the Le Café coffee brand announced by Strauss on late November 2010. Strauss acquired the La Café brand which recorded annual sales of $23 million, for $37 million and for an additional $6 million – acquired the brand operator's buildings and warehouse real estate.

Strauss decided to use the property for a logistics center for its coffee activity in the operator's country and for a roasted ground coffee factory, at an investment of an additional $6 million.

The acquisition comes in the wake of the 2010 reports that showed a standstill of Strauss's coffee activity in FSU countries. According to the financial reports, sales were bogged down at NIS 543 million ($158 million) in 2010. Revenues from these markets dropped to 7.9% against 8.6% in 2009.
 
Strauss Group President and CEO Gadi Lesin imparted in the company's announcement: "The Ambassador deal is another important step in Strauss' expansion in Russia and in other FSU countries".

Strauss Coffee Division CEO Todd Morgan said, "The acquisition of Ambassador brands consolidates our competitive standing in Russia and the FSU countries and constitutes a new level in the development of our instant coffee business following the acquisition of Le Café."

American Idol to promote coke : study

Is "American Idol" teaching America's children to drink Coke?

The beverage company has promised not to market unhealthy foods to children, but a new study suggests it may have found a loophole: product placements on prime-time TV shows like the hit singing competition.

The study, from Yale University's Rudd Center for Food Policy & Obesity, found that the average child saw Coke products during prime-time shows about 200 times over the course of a year — far more than any other brand. And 95 percent of the exposures were during "American Idol."

That's despite a pledge that Coca-Cola and other major food and beverage companies made in 2006 to advertise only "better-for-you" foods to children — part of the Children's Food and Beverage Advertising Initiative of the Council of Better Business Bureaus.

Researchers analyzed data from Nielsen, the media research giant, that showed how often unhealthy foods, beverages and restaurant brands were shown on prime-time TV during 2008. They found almost 35,000 such appearances — exposing children to almost one product placement per day.

Regular Coca-Cola soft drinks accounted for 71 percent of the product placements seen by children and about 60 percent of those seen by adults and adolescents. Children saw five times as many product placements for Coca-Cola products as they did traditional advertisements.

Vintage Wine Estates new aquisition

"Windsor Sonoma Winery"
one of the brands from the large portfolio
of Vintage Wine Estates 

Vintage Wine Estates which brings exceptional wines from the Napa Valley & Sonoma County, plus the best of all the world' s wine accessories, on Tuesday acquired the 100,000-case-a-year Cartlidge & Browne brand and inventory.

“It add another level of business for us,” said Pat Roney of Vintage Wine Estates. “It adds different line of distributors nationwide to what we’re doing.”

The acquisition price wasn’t disclosed, but Mr. Roney said industry estimates of $4 million to $6 million for were “comfortable.”

Of the Cartlidge & Browne partners — Tony Cartlidge, winemaker Paul Moser and Bob Babbe — Mr. Cartlidge will be remaining involved with the brand, according to Mr. Roney.

The wine now will be made by Marty Peterson, winemaker at Vintage’s Grove Street Winery in Healdsburg.

The brand had been produced by Sonoma Wine Co. since it acquired Greenfield Wine Co.’s custom wine business and the lease for the 116,500-square-foot winery at 205 Jim Oswalt Way in the Green Island Industrial Park. Mr. Cartlidge and Glenn Browne started the brand in St. Helena in 1980. Mr. Cartlidge remains the owner of the building.

Vintage Wine Estates’ portfolio includes Girard, Grove Street, Sonoma Coast Vineyards, Fire Station Red, Windsor Sonoma, Windsor Vineyards, International Wine Accessories, StoneFly Vineyards and Cosentino Winery.