The Japanese Suntory, 3rd largest company in alcoholic beverage behind DIAGEO and Pernod-Ricard, had purchased Beam last year in 2014. In buying Beam, Suntory acquired Cognac Courvoisier. In a previous post I was wondering what was Suntory going to do with these 2 cognac companies since the synergies between the two was not obvious. I was guessing about selling one, but I was wondering which one?!
- Suntory-Beam Logo
Well, now we know Suntory decided to sell the smaller of the 2, i.e., Louis Royer established in Jarnac in 1853, originally purchased by Suntory in 1989, when Japanese consumed a great deal of cognac.
- Cognac Louis Royer Logo
Why not selling Courvoisier since they have owned Louis Royer since 1989 one may say? Because Courvoisier is the 4th largest volume maker in the industry. Perhaps it is harder to sell Courvoisier than Louis Royer too - much more money. Also, I think the ups are greater with Courvoisier than Louis Royer.
Who purchased Cognac Louis Royer?
Emperador, the largest alcoholic beverage in the Philippines, owned by Andrew Tan, the 4th richest man in the country, originally a Chinese migrant, had hoped to buy Louis Royer from Suntory. Emperador is a very famous brandy in the Philippines. The Philippines is a growing market for the consumption of cognac and this was a clean strategic decision. I guess Mr Tan offer was too low.
- Emperador Brandy
Other serious buyers in France came out but their offers were rejected.
Terroirs Distillers owned by the Picard family was accepted for 100 million euro. Terroirs Distillers is know for bottling whiskies in France and Scotland with brands such as Highland Queen, Tullibardine, Muirhead's or Rum Charrette purchased recently from La Martiniquaise.
- Tullibardine Whisky by Terroirs Distillers
It is possible to believe that Terroirs Distillers will have a different managerial style and objectives than Suntory for Louis Royer, and perhaps will focus less on Japan and other markets.
Source: Nikkei
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