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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

75000 job cut due to alcohol duty increase - worst case scenario?

March 12, 2009

Alcohol duty rises ‘jeopardise 75,000 jobs’ | www.thegrocer.co.uk

It seems that the scenario of 75000 job cuts due to alcohol tax increase is a worst case estimation. Current global economic climate is condusive of spirits category growth, especially at-home consumption. I believe this growth in the off-premise business would off-set some of the volume loss due to price increase and, therefore, the job loss impact would not be as dramatic.

Online testing panel examples from beauty care

March 12, 2009

Waitrose launches online tasting panel | www.theappointment.co.uk

There are several test/sampling community panels  in beauty care that seem to be successful at putting new products in the hands of the consumer and gathering feedback, ofeten online. The examples are SheSpeaks (Japan), and a couple of US ones - Test Tube and Beauty Fix where for a quarterly fee of $30-50 consumers are exposed to the newest beauty care samples.

Bacardi looking to accelerate growth in brIc

March 12, 2009

Bacardi chief bets big on Indian market | economictimes.indiatimes.com

Bacardi is looking to accelerate growth via a more consistent investment in BRIC, specifically in India. Opportunity exists to grow their flagship brands: Dewars, Bombay gin, and, possibly vodkas. A local aquisition would enhance portfolio critical mass for distribution and salesforce utilisation. It would also strengthen their position in India vs key competitors - Diageo and Pernod. 

Forefront of affordable fashion in Korea

March 12, 2009

H&M to open first store in South Korea | www.theappointment.co.uk

H&M has been at the Global forefront of affordable fashion.  Their move into Korea has excellent business potential due to trend-conciousness of Korean consumers (especially the younger group that H&M targets), strong Global brand awareness which would be quickly built up in Korea, and 'right' price for the current economy

High End Adult Beverages decline in this recession

December 5, 2008

Wine and Liquor Keep Flowing Despite Sour Economy | www.usnews.com

On-premise business decline and growth of in-home consumption would lessen consumer exposure to professional recommendations - bartender/wait staff. Consumers would make their own decision based on what they know and choose the brands with the best awareness. Net, strong brands would do relatively well even in this economy, but weaker players will experience volume declines.

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