Oligopoly brief: Allied Domecq
The three major companies selling alcoholic spirits are Diageo, Pernod Ricard, and Allied Domecq. Allied Domecq, the #2 distiller, is a $5.3 billion company based in the UK. Its origins are in 1961, with a merger of three British breweries. In 1994 Allied acquired Pedro Domecq, the leading sprits manufacturer in Spain. Over the years, the company acquired more liquor companies (including Hiram Walker) and wine companies, and sold off beer and pub operations. In the last few years, it has aggressively acquired wine operations across the globe, in Argentina, Spain, California, New Zealand, and Australia.
Among the leading brands it now owns are Beefeater's (the world's #1 gin), Sauza (the world's #2 tequila brand), Kahlua (the world's #2 liqueur brand), Courvoisier (a leading cognac brand), Canadian Club (the world's #1 Canadian whiskey brand), and Harvey's Bristol Cream (#1 sherry in the world).
Curiously, the company also owns three fast food chains in the United States: Dunkin' Donuts, the leading US donut chain (it sells 1.6 billion donuts a year); Baskin Robbins, the leading ice cream chain (with 4,500 stores in 50 countries); and Togo's (a California sandwich chain).
Increasing its wine holdings may be the future direction of the company. The tricky fast-food business is more questionable. In the hard liquor category, world growth is very slow and the competition is strong; most of the premium brands are already owned by the big three. Allied Domecq can expect little growth through mergers.
As an article on food.com ("Allied Domecq Wants to Sip Diageo's Drink", 12/20/2000) notes the tough competition among the top liquor companies.
Consolidation is the word of the moment in the branded wine and spirits category these days, much as it is with packaged foods: Companies are fighting for shelf space and distribution opportunities as they seek levers with which they can drive incremental returns from industries that, on macro levels, aren't growing at rapid rates.
Allied Domecq brands
| Category |
Brands |
| Whiskey |
Ballantine's. Canadian Club, Laphroaig, Long John, Maker's Mark, Stewart's Cream of the Barley, Teacher's |
| Gin |
Beefeater, Crown Jewel, Plymouth |
| Vodka |
Stolichnaya* |
| Rum |
Kuya |
| Brandy and Cognac |
Azteca de Oro, Carlos I, Centenraio, Courvoisier, Don Pedro, Fundador, Presidente |
| Liqueur |
Hiram Walker, Kahlua, Malibu, Midori, Tia Maria |
| Bitters |
Kuemerling |
| Tequila |
Sauza |
| Wine |
Albor (Sp), Atlas Peak (US), Aura (Sp), Bodegas Balbi (Arg), Brancott Vineyards (NZ), Buena Vista (US), Callaway (US), Campo Viejo (Sp), Castillo de Olite (Sp), Clos du Bois, Graffigna (Arg), Marlborough (NZ), Marques de Arienzo (Sp), Montana (NZ), Selentia (Chile), Senorio del Condestable (Sp), Senorio del Val (Sp), Tarsus (Sp), Villarei (Sp), William Hill (US), Ysios (Sp) |
| Port |
Cockburn's |
| Sherry |
Harvey's, La Ina |
| Sparkling wine |
Lindauer (NZ), Mumms (Fr) (#3), Perrier Jouet (Fr) |
| Restaurant chains |
Baskin Robbins, Dunkin' Donuts, Togo's | * By license
3:41:46 PM 
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