LIQUOR GIANTS AGREE TO JOIN OPERATIONS : PLAN VALUED AT $22 BILLION.Byline: Youssef M. Ibrahim The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times Faced with a steady decline in liquor consumption in their traditional markets, the world's two biggest distillers, Grand Metropolitan PLC and Guinness PLC Guinness PLC Manufacturer of distilled liquors and brewer of a distinctive, dark, creamy stout. It originated in Dublin, where Arthur Guinness bought a small brewery in the late 18th century. , agreed Monday to a merger valued at about $22.27 billion, the fifth-biggest deal in history. Together, the companies own some of the best-known brands of scotch, vodka and gin, along with the famed Guinness Stout, and their top executives said they are confident that the efficiencies resulting from a combination, including eliminating 2,000 jobs, will lift sales and profits. But at least one big competitor, the Seagram Co., bitterly objected to the market dominance Market dominance is a measure of the strength of a brand, product, service, or firm, relative to competitive offerings. There is often a geographic element to the competitive landscape. the deal will create in scotch, the liquor category with the highest profits. The driving force behind Monday's surprise announcement is the generational divide that has plagued the liquor business for years. Basically, distilled spirits are popular with people 60 and older, while younger drinkers tend to prefer wine, wine coolers, beer or nonalcoholic non·al·co·hol·ic adj. A beverage usually containing less than 0.5 percent alcohol by volume. drinks - a trend that does not bode well for future growth. In mature markets like the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe, the liquor industry faces the need to cut costs of advertising, sales and production to build back profits, while in developing markets, the challenge is to try to make inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ quickly and profitably, though some companies have found that difficult. If approved by shareholders and regulators on both sides of the Atlantic, the merger will create a new company, GMG GMG Giornata Mondiale della Gioventù (Italian: World Youth Day) GMG Guardian Media Group GMG Game Group PLC (stock symbol) GMG Grenade Machine Gun Brands, that will reign over some 150 internationally known labels including Johnnie Walker and J&B scotches; Gordon's and Tanqueray gins; Smirnoff, the world's best-selling vodka, and its rival Stolichnaya; Jose Cuervo tequila; and Bailey's Original Irish Cream. GMG would also absorb Grand Met's huge food operations, including more than 9,000 Burger King restaurants, Green Giant vegetables, Haagen-Dazs ice cream and Pillsbury. THE MERGER Major brand names that would be part of GMG Brands, the new company to be formed by the merger of Guinness PLC and Grand Metropolitan PLC: Burger King Guinness Stout Johnnie Walker Bailey's Irish Cream J&B Rare scotch Pillsbury and Hungry Jack baked goods Green Giant vegetables Old El Paso Old El Paso is a brand applied to a range of Mexican-style foods, including dinner kits, tacos and tortillas, sauces, condiments, rice and refried beans. Old El Paso products are marketed in Australia, Canada, New Zealand, Finland, France, Germany, Greece, the Republic of Mexican foods Haagen-Dazs ice cream Gordon's gin Jose Cuervo tequila Dewar's scotch Moet & Chandon Cinzano CAPTION(S): Box Box: THE MERGER (See text) |
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