Pernod clips Diageo's wings

Allied Domecq's expected flotation of C&C might be a relatively small event in the international drinks industry, but the extent at which changes are taking place in the sector were illustrated this week by events involving Diageo. the name that some corporate design genius concocted for the merged Guinness-Grand Met company.

Pernod Ricard, one of whose star international brands is Jameson, has peremptorily dumped Diageo as distributor of its Wild Turkey bourbon brand in the US, leading to speculation that other drinks group might sever their ties with Diageo's distribution subsidiaries. Mr Thierry Jacquillat fondly-remembered in Irish corporate circles for his combative role in the Irish Distillers takeover 10 years ago was quite blunt when he said his own sales force would be more motivated in selling Pernod's products rather than Diageo's salesmen who might spend their time selling Diageo brands to the detriment of agency brands like Pernod's Wild Turkey

The creation of Diageo, which is expected to announce the sale of more brands in the next few weeks, has led a lot of companies to reconsider their alliances, the Pernod chief said.

Diageo was quick to scotch later rumours that it was going to lose British distribution rights for Jack Daniels and Southern Comfort, with US distiller Brown Forman looking for a new partner. Not true, said Diageo, who insisted that Diageo's UDV subsidiary would continue to distribute the products.