I went to Romania once on the weirdest trip . Halewood International had invested millions in some wineries and was eager to show off the results in a country with potential for making wine - particularly Pinot Noir - but huge issues to surmount over ownership of land .

We were whisked around at speed over potholed roads and the poverty was evident. After one visit we were ushered to a house for a tasting, followed by a formal blessing of the house by Greek orthodox priests , then a buffet lunch with local music .

Photographer Matt Wilson (below left) will be showing off some of his work at the forthcoming Wines of Chile annual generic tastings in London and Manchester on October 16 and 18 respectively.

Wilson studied photography in New York and London and now lives in Chile's Colchagua Valley with his winemaker wife.

He specialises in "in your face photography", using close-ups and trying to "inject fresh imagery into a traditional landscape-dominated field".

Following the tastings , the exhibition will be staged at the Cobden Club in London for two months from November 1.

• The World Atlas of Wine
  
  For anyone interested in wine, Hugh Johnson and Jancis Robinson's World Atlas of Wine is a must. The sixth edition boasts 48 new pages and 200 maps , 20 of which are new . Since the 2001 edition South Africa has changed beyond recognition , Austria and Greece have become serious players and Asia is recognised as a substantial producer.
  
  Published by Mitchell Beazley. Price: £35
  
• The Good Beer Guide 2008
  
  The essential handbook for beer lovers residing in or visiting the UK. The guide is essential to finding great British pubs and traditional beers by the pint.
  
  Guide editor Roger Protz has assiduously listed 4,500 entries along with information about opening hours, food, facilities for families, accommodation, history and locations.
  
  Published by Camra. Price: £14.99
  
  

• And the winners are...
  
  Charles Ainsbury of the Bayswater Brasserie in Sydney has been named Australia's Bartender of the Year, in the seventh annual bar awards .
  
  Bar of the Year is the Golden Monkey in Melbourne (pictured), while Cocktail Bar of the Year is Murmur, also in Melbourne.
  
  Maxxium Australia's Jason Crawley was Brand Ambassador of the Year and Bar Manager of the Year is Mathew Hewitt of the Bowery in Brisbane. The winners were chosen from 3,000 nominations, according to David Spanton of Australian Bartender magazine. For full results visit the barshow.com.au site or contact sam@spantonmedia.com.
  
• Come the revolution
  
  Situated in the City of London's Leadenhall Street, the new 1,000 capacity Revolution bar/restaurant and club covers three floors of the Sir Edward Lutyens-designed former Midland Bank building. It cost the Leisure Group £3 million to redevelop.
  
  The club's booths are sponsored by vodka brands Flagship, Stolichnaya, Absolut and Zubrowka. A converted strong room, complete with original safe deposit boxes and vault door, is now a private meeting room, dining room and bar, sponsored by U'Luvka.
  
  Revolution boasts over 100 different vodkas and the 60-foot long Lutyens bar is claimed to be the longest in the City of London.

Louis Latour Nuits-St-Georges

100 per cent Pinot Noir; 2ha clay/limestone site;18 months in 228-litre French oak; abv 13.5; 15,000 bottles; rrp US$65

Aroma: subtle but rich aromas of blackberry, redcurrant with vanilla and a hint of wet earth

Taste: creamy, generous layers of fruit with subtle smoky touches and a toasty edge leading to an understated but lengthy finish. A light dusting of soft tannins lends balance to a nicely poised, fruit focused wine

Drink: now-2009

Q: How many years have you been coming to the show and what have been the biggest changes to the event in that time?

Thakar: Since 1987. I have never missed a year. There have been some gradual improvements. For instance, now almost everyone at the exhibition speaks English. This wasn't the case in the beginning and is a major improvement for the international community.

Hjartbo: Fifteen years. Honestly, I don't think the fair has changed a lot during this period.

Cheng: Many years. In the old days the shows were dominated by famous big brands. However, there are now many more brands exhibiting, including secondary line brands. There are also many entertainment activities included, which makes the week more fun.

Tappoo: This will be my third year, although our chairman and two other directors have been going to Cannes ever since its inception. The choice of suppliers and offerings seems to get better each year. There seem to be more businesses participating, too.

Q: Given the number of industry exhibitions worldwide - both domestic and duty-free - and the cost involved in attending, is Cannes still good value for money?

Thakar: Cannes is one of the most expensive cities in the world and what we pay are the top prices so I wouldn't say it is good value for money. However, being a glamorous city, it is a good match with the TFWA, which has strong links with the fashion industry.

Hjartbo: Access for buyers is free, so it is obviously good value for money. Whether the fair is good value for money for the exhibitors I don't know. But I suppose it is because they keep coming back. 

The only other tax-free fair I have visited is the one in Florida , and I believe the Cannes fair is much, much better than that. However, MyTravel Airways will be attending other non-tax-free fairs in the future in order to source products that are different from what other duty-free operators are listing and what the domestic Scandinavian market offers.

Cheng: The trade's exhibition calendar is marked with quite a number of events throughout the year, most notably the TFWA exhibitions in Singapore and Cannes.

It's very subjective whether it is good value for money ? exhibitions provide a means for exhibitors to showcase their products and socialise with their business partners, as well as providing exposure for their new products.

Tappoo: The [sales] volume in Fiji is relatively small so we don't get to see the suppliers visiting us often. Therefore this exhibition is an opportunity for us to meet our suppliers and discuss business plans for the year. This is one of the reasons we attend the exhibition.

Fiji is half way around the world from Cannes so the cost is always very high. But because we need to stay in touch with suppliers and discuss business opportunities at least once a year, it becomes value for money for that purpose alone.

Q: What are the big issues affecting your liquor business?

Thakar: I would highlight the attitude of some of the brand owners attending the exhibition. Although the prime reason for them to exhibit is to attract new customers in emerging markets, invariably they treat bona fide duty-free operators like us very shabbily. Maybe it is because we come from a poorer region.

Hjartbo: The biggest issue in this category is the almost total lack of innovation and product development. Some producers seem to think that they can invent a totally new product simply by taking the standard product and adding a few drops from a different barrel and glueing on a new label. In a modern, open-minded world, I do not think this is good enough.

Cheng: Certainly, the economic situation's ups and downs will affect the buying power of customers, which in turn affect the liquor business. However, it is looking good for the category over the next couples of years.

Q: How badly have your stores been affected by the recent aviation security restrictions on liquids, aerosols and gels (LAGs)?

Thakar: Not much because the loss of sales in departures has been compensated for by an increase in sales in arrivals shops.

Hjartbo: We have not been affected by the new security regulations. Most products sold on MyTravel Airways are pre-ordered by the passengers from home and are (since the beginning of the 1980s) pre-packed on the ground and delivered to the consumer in-flight in sealed bags.

Tappoo: We've not been affected too badly. Fiji is a holiday destination and not a transit point. Since the LAG restrictions mostly affects transit passengers, it hasn't affected our liquor sales. In fact, despite the coup in Dec and the LAG legislation, we are showing a healthy growth because of aggressive marketing campaigns and maximi sing passengers' allowance with "two-for" price offers.

Q: What new liquor products will you be look ing for at the show and what would you like to see more of from suppliers in terms of new products and support?

Thakar: We are well set with most of the major brand owners and our business with them is developing very well. Nevertheless, there are some smaller companies out there which have some important brands we need to include in our portfolio to complete the product range. We do look forward to receiving good advertising and promotional support to enhance sales. This varies from company to company, but overall the support is fairly good.

Hjartbo: Innovative white spirits in the €13-€20 retail price range, and new modern strong liqueurs that can be used as drinks mixers. I'd also like to see rare whiskies at affordable prices.

Cheng: We are very receptive to the introduction of new products. Realistically, the effort, investment and time the suppliers put into promoting the new products will positively enhance our consideration of these products.

In terms of the type of support we like, we hope it will be sales driven? stylish marketing efforts, gift-with-purchase and tasting opportunities to promote awareness.

Tappoo: I will not be looking for a lot of new products. Our tourists are predominantly from Australia and New Zealand and they mostly look for good deals on established liquor brands, although we will be looking out for duty-free exclusive offers as well. We'd like suppliers to really get behind promotions. Most of our liquor sales are done through price deals: for example, two bottles for a special price as opposed to a single-bottle purchase.

Q: What advice would you give to a first-time buyer at the show?

Thakar: Patience is the name of the game. First-timers will never get a good response as the brand owners only wish to support big-timers or the very large duty-free operators. Consequently, newcomers must be patient with the brand owners until they have built up some confidence in the buyer.

Hjartbo: Do not book too many appointments - you will end up running from one to another and missing a lot.

Tappoo: Visit as many exhibitors as possible. Also be aware that most exhibitors are aggressive and are looking out for equally aggressive retailers to do large volumes. Keep an eye out for "exclusive for duty-free" offers.

Q: Finally, what places and restaurants do you like to visit while at Cannes?

Thakar: Frankly speaking, our meeting schedule is so tight there is hardly any time for such leisure pursuits. On top of walking all day, the suffocating atmosphere really drains all your energy to the point where I have no strength left for anything except hitting the bed as fast as possible.

Hjartbo: The Scandinavians seem to prefer the Caffé Roma just outside the fair. We call it The Scandinavian Hub. Last year I went to The Blues Night for the first time. That was great too.

Cheng: We mostly go for oriental-style cuisine, and sometimes for seafood and local flavours.

== Balvenie moves into the spotlight ==

This annual event showcasing the world's most luxurious brands and held at the Cannes Palais des Festivals, October 22-26, brings together key buyers and suppliers in the travel retail business in a glamorous environment packed with networking opportunities .

Most importantly, it is the place to discover new products - some of which are previewed on the following pages - and be enlightened on critical issues. The opening conference and a programme of workshops promise perspectives on these issues and views from the experts.

Neil Armstrong, the first man to walk on the Moon, is one of the keynote speakers at the TFWA World Exhibition conference, the theme of which is Sixty Years of Duty Free: A New Moon Rising .

TFWA president Erik Juul-Mortensen will open the proceedings with an address entitled The State of the Travel Retail Industry at 60 , followed by Frank O'Connell, president of the European Travel Retail Council, who will give a progress report on the efforts being made by the travel retail sector to ensure that restrictions regarding the onboard carriage of liquids, gels, pastes and aerosols (LAGs) do not prevent duty-free and travel retail sales from continuing at airports. He will also outline some technological solutions which could be employed, and inform the industry of the action required of them to facilitate future duty free and travel retail sales.

Armstrong will then pick up on the conference theme with Life begins at 60: A Starry Future . He will assess progress in aviation and the impact that technology, communications, the environment and security will have on air transport, tourism and, consequently, on the duty-free and travel retail industry

The third speaker is Mary Portas, creative director of Yellow-Door Creative Marketing. Best known from the BBC TV series as Mary, Queen of Shops , she is expected to show that successful retail "is not rocket science" and will show what can be done to revamp a retail operation.

In addition to the conference, three workshops have been scheduled. At the Asia Pacific Breakfast Workshop, Marion Buttler, European director of the Pacific Asia Travel Association, and Sunil Tuli, president of the Asia Pacific Travel Retail Association will discuss opportunities, trends and outlooks in Asia Pacific, one of the most dynamic regions for the travel retail industry. Hundreds of brands are already enjoying success in this region but the potential is enormous.

They will be joined by Masato Takamatsu, director and vice president of JTM who will present the results of the Japanese outbound traveller research.

At the end of each day delegates can unwind at TFWA nightclub The Scene, featuring live bands every night. This year the club has an Angels and Demons theme in new venue the Palm Beach.

All details at tfwa.com.

The Irish beer and cider industry revolves around two main players - for one it might not be the best of times, for the other it is probably the worst of times. The acid test for old stager Guinness and new kid Magners is how they deal with adverse trading conditions. Both brands share one thing in common - fantastic marketing campaigns, which are essential to keep the tills ringing .

But in recent weeks both groups have reported poor trading in their main overseas and home markets. C&C International, wh ich makes the over-ice phenomenon Magners cider, said trading performance deteriorated at an unexpected rate during the second half of July and it expects interim operating profit to fall by around 35 per cent on the previous year.

Sales were falling as fast as the rain which drenched vast trac ts of the UK throughout the summer and causing a significant slump in pub trade . The producer said Magners' weak performance reflects both the sustained period of poor weather in Great Britain and Ireland and increased competition in Great Britain.

It added cider sales volumes for the month of July were significantly down on the same period last year.

In Ireland the brand is marketed as Bulmers, but it uses the Magners names overseas as the Bulmers name i s owned by Scottish & Newcastle in other markets.

It all shows a lot can change in 12 months . In 2006, according to company figures, sales of Magners grew by 225 per cent after it went on sale in England for the first time, having been available in Scotland since 2003.

Certainly competition has increased. Brewing giant Scottish & Newcastle has reinvigorated its Bulmers Original brand and it has been stealing market share from C&C's Magners in packaged pint bottles. And the brewing giant has stolen a further march on Magners with the launch of the Bulmers brand on draught and over ice too.

For the past four months Bulmers Original Draught over ice has been on trial in the UK throughout the S&N Pub Enterprises estate but, although predicted, Magners on draught has yet to appear.

The Magners team is not daunted by the opposition, however. O n winning the title of Marketer of the Year, Magners' Maurice Breen said: "We are making the most of a great Irish product and are at the early stages of developing a powerful long-term brand.

"Marketing has been at the heart of Magners' development, backed by a managing director and a board who have been visionary and brave in providing the resources necessary to break Magners internationally."

He added: "Much of what is good about Magners comes from Bulmers in Ireland and our brand here has never been stronger. We believe that there is much more development to come from Magners and that to date, only the first couple of chapters of the case study have been written."

C&C International's determination to continue to invest in marketing is put into context by the fact that, while the advertising spend remains high, 70 production jobs have been lost at the Irish cider maker.

Guinness conquers new markets

In contrast, Diageo's marketing department has been successfully reinventing its Irish stout brand for decades.

While common wisdom would have it that the UK and Ireland are the two biggest markets for Guinness , in fact Nigeria has overtaken Ireland as the second-largest market as Guinness is increasingly pushed internationally.

Although Diageo will not reveal precise numbers, it said net sales of Guinness in the year ending June 30 were up 18 per cent in Nigeria. Strong growth across Africa helped to make up for a decline in Britain - still the stout's biggest market - and Ireland.

Guinness sales fell seven per cent in Ireland and the volume drunk fell by nine per cent. In Britain, sales fell four per cent as consumption dropped six per cent.

"Outside these two territories, Guinness is growing extremely well and that is the future of the brand," sa ys Diageo chief executive Paul Walsh. He attributes the surge in sales in Africa to a new television advertising campaign that promotes the drink as "the home of greatness".

So what is being done to promote the sale of Guinness in the UK and Ireland?

In the UK, following a successful three month trial in M&B pubs, Diageo is rolling out Guinness Red in a £2.5 million campaign across the central region. Guinness Red uses lightly roasted barley to create a substantial beer with a subtle red hue , and the company hopes to attract regular beer fans across the country.

Simon Garnett, senior innovation manager for Guinness Red, comments: "We are delighted with the results of the test, which emphatically show we have successfully recruited new drinkers to the Guinness brand. Guinness Red has all the hallmarks of the distinctive brand they love, but with a smoother, sweeter taste.

"People who usually only drink a few pints of Guinness a year, on events such as St Patrick's Day and when watching the rugby, now have another reason to choose Guinness more often."

And Diageo Ireland continues to develop a collection of limited edition stouts, the Guinness Brewhouse Series, which have been inspired by traditional stout recipes dating as far back as the 1700s and developed by the master brewers at Dublin's St  James's Gate in an attempt to keep the market fresh.

In our tale of two brands only time will tell if it will turn out to be the age of wisdom for the marketing teams at Guinness and Magners or if it will be an age of foolishness.

Victoria may be smallest mainland state in Australia but it is the most diverse in terms of climate and altitude, with vineyards ranging from just above sea level to almost 1,000m. While plantings of the five usual suspects - Shiraz, Chardonnay, Cabernet Sauvignon, Pinot Noir and Merlot - take up more than three-quarters of the Victorian vineyard, this leaves plenty of room for manoeuvre for other grape varieties.

Though Pinot Grigio/Gris is grown generally throughout Victoria, the Mornington Peninsula is home to a quarter of all the state's plantings, although this sum accounts for less than 10 per cent of Mornington Peninsula's vine plantings overall. With some producers calling it Pinot Grigio and others Pinot Gris, labelling of the varietal is ad hoc at the moment, and it doesn't always correspond to the wine styles anticipated in a European context - ie light, fruity Italian-style Grigio or richer, spicier Alsace-style Gris. Generally though, whole bunch pressing and oak are often used during vinification in the 'Gris' camp. For example, the 10X Pinot Gris from the Ten Minutes by Tractor winery uses eight-year-old oak, wild yeast, and has a hint of residual sugar on a spicy back palate.

Elsewhere in Mornington Peninsula, Kooyong and Port Phillip Estate winemaker Sandro Mosele makes wines using the Piemontese Arneis and Barbera varietals. "We started in 2004, on 0.6ha," he says, "so just about 200-250 dozen bottles, all of it sold domestically. The Arneis is a 100 per cent [stainless steel] tank wine, and the Barbera is made with old oak. We wanted an extra level of complexity and suppleness in the wine, to soften the effect of the [wine's natural] acidity."

Victorian conditions

Though many Italian migrants moved to Victoria in the post-war period to work in the tobacco industry, vineyards began to grow up in the 1970s as the tobacco business declined. The King Valley, home to many of these immigrant families, is the heart and soul of Victoria's production of Italian varieties.

In mid-2007, the King Valley in north-east Victoria attained its own geographical indication (GI). Michael Dal Zotto, winemaker at Dal Zotto Estate says: "King Valley has a lot of different microclimates, and it's large. We're able to keep pockets of the valley allocated to different varietals."

One of the early pioneers for Italian varieties in the 1970s, Brown Brothers, is based in the King Valley. The company worked with growers, many of whom had relocated from northern Italy. Ross Brown, Brown Brothers' chief executive, says: "There's been a progressive shift. People want to try something different. Italian varietals offer such a different flavour profile than Cabernet Sauvignon and Shiraz. There's good demand, and we're likely be planting more Italian varieties."

Fred Pizzini, director of Pizzini Wines in King Valley, is one of the pioneers who used to provide fruit to Brown Brothers. "We started with a passion for Sangiovese and Nebbiolo, going back about 20 years," he says. "When we planted there was only us in Victoria. We set out from day one to let the variety express itself.

"The King Valley gives the ability for Nebbiolo to be left on the vine into early April, for slow maturation," says Pizzini. "We get pure conditions from the Snowy Mountains directly behind us which allow the development of those fantastic aromatics that Nebbiolo has to have."

On Sangiovese, Pizzini adds: "The [climatic] diversity of King Valley means we've selected warmer sites for it within our 81ha site. We learnt from growing Shiraz which looks for similar conditions. Both do very well." About half the Pizzini vineyard is now planted to Italian varietals, and more are going into the ground.

The Aussies seem to favour Barbera wines with some oak, especially old oak. "It's too acidic, and needs a bit of oak to balance out the angles," says Pizzini.

Italian heritage has also spurred on Sam Miranda, who took ownership of his eponymous King Valley winery in 2004, following the sale of the rest of the family business, Miranda Wines, to McGuigan Simeon in 2003. "The vineyard has a variety of soils including heavier clay and red soils," he says. "You can match varieties to blocks. With 20 years' history now we're beginning to match variety with site. Sangiovese is one of the original varieties in the area - I'm looking to plant some next year."

Investing heavily

Since being founded in 1924, the family-run De Bortoli company has expanded to become Australia's sixth largest wine business and has made significant investment in Italian varietals. The company's portfolio is geographically segmented, taking in 180ha and 240ha respectively in Victoria's King and Yarra Valleys, as well as 300ha in the Riverina and 36ha in the Hunter Valley in New South Wales.

"The common brand is De Bortoli, with sub-brands from the other regions," says Steve Webber, the company's manager and winemaker. "People are interested in knowing where wines come from regionally."

The Victorian-origin De Bortoli Windy Peak range has for several years included a red Sangiovese, and the Pinot Grigio is a recent addition to the UK portfolio, taking advantage of the seemingly infinite growth in demand for the grape there.

Of its Sero range, which was launched into the UK in 2006, Webber says: "We liked the King Valley. It has excellent potential for Italian varietals, and we made a large commitment, of 202ha. We've developed interesting wines around it [the Sero label], which are medium bodied, with savoury rather than sweet oak. They might even go well with pizza!"

Among mainstream wine consumers there are not thought to be too many who realise Sangiovese is the backbone of Chianti, or Nebbiolo of Barolo, so De Bortoli is easing Italian varietals into consumers' consciousness by blending with better-known international varieties under the Sero label, such as Syrah/Dolcetto, Chardonnay/Pinot Grigio and Merlot/Sangiovese.

Wines of the moment

There is much experimentation in Victoria with less well-known Italian varieties such as Arneis, Cortese, Verduzzo and some bubblies. Pizzini says: "There's lots of opportunity for white varieties. They work well in Australia. Aussies are looking for new things other than Cabernet and Chardonnay, and for more food friendly styles of wine."

Pizzini made Australia's first Bracchetto, in the traditional Piemontese style and Dal Zotto released Australia's first prosecco sparkling, which has proved so popular the company is increasing plantings.

Italian varietals are in a good position to take advantage of a trend towards less typical, big Aussie wine styles. "There's a definite swing to wines with finesse - cool climate wines," says Miranda. "There's an undercurrent of people wanting to drink a bottle of wine and still be upright. Imports from Spain and Italy are really growing now. Up to 50 per cent of some wine lists are European wines; people are a bit bored of Aussie fruit bombs."

Pizzini agrees, adding that the long, slow drip of education and trial seems to be reaching a critical mass. "Sommeliers have played a big part in making things change - getting product into peoples' mouths," he says. "It takes education, getting people to understand the styles that are for food rather than everyday drinking. It's a lot of little things that make up the picture of change."

Further evidence for these winds of change is provided by the big boys across the state border in South Australia. Jacob's Creek has dipped its toe in the Italian water with its new Three Vines Rosé, which contains a little Sangiovese. Similarly Yalumba has a limited release Sangiovese Rosé under the 'Y' series label. The Italian niche looks like it may have the potential to expand quickly.

So what is a bitter, excepting an English top-fermented ale ? According to web encyclopedia Wik ipedia, it is: "A preparation of herbs and citrus dissolved in alcohol or glycerine with a bitter or bittersweet flavour. The brands, once numerous, were formerly manufactured as patent medicines, often served as digestifs. The few remaining varieties are principally used as aperitifs or as flavourings in cocktails."

There is also amaro, or amaro alle erbe, which is the Italian equivalent, described as an Italian herbal after-dinner digestif liqueur. The best known brands are Amaro Averna and Pernod Ricard's Amaro Ramazzotti.

Pernod Ricard itself describes bitters as: "Spirits flavoured with bitter plants. The infusion, maceration and blending processes are often very old. Bitters may be served as an aperitif or a digestif. They may also be used to make cocktails."

Bitters account for 4 per cent of Pernod's spirits business (by volume), so it is a significant category for the world's second largest drinks company. Its major brand apart from Ramazzotti, which sells well in Germany (number one imported spirit with sales approaching one million 9-litre cases, according to IWSR data), is Suze in France. It also owns Fernet Capri and Becherovka (Czech Republic).

Euromonitor International classifies bitters as a subcategory of liqueurs. In its most recent global overview, it says traditional local liqueurs "suffer from changing patterns of spirits consumption ". It  adds that urbanisation with "accelerated lifestyles and smaller households have disrupted habits such as consuming liqueurs as part of leisurely meal times ".

The traditional role of bitters as after-dinner digestifs has all but gone and their role as a pick-me-up/hangover cure ("hair of the dog "), is not politically correct in this age of concern over alcohol and health. The kiss of death is that younger drinkers regard the category as ­old-fashioned.

The major bitter brands are arguably Jägermeister, Angostura and Underberg. Campari is made from bitters but most would regard that as a mainstream spirit brand/aperitif. The other big brands, such as Fernet Branc (Italy), Gammel Dansk (Denmark), Kuemmerling (Germany), Araucano (Chile) and Unicum (Hungary) are, in the main, more regional or national , whereas the aforementioned have breached their national boundaries and - certainly in the case of Jägermeister and Angostura - positioned themselves as a bitter and a contemporary brand that can be mixed.

Angostura is one of the oldest contemporary mixers. Formulated around 1824 by a German doctor in Venezuela for stomach illnesses, it found its way to Trinidad and England where it was picked up by the British Royal Navy as a cure for sea sickness and gastric ailments but also, more importantly, for the officer class's pink gins. Ironically, Angostura was named after the Venezuelan town but contains no angostura bark.

Peychaud Bitters, the New Orleans-associated gentian-based bitter, is also associated with a particular drink - the cocktail sazerac.

This year Angostura, now owned by Trinid ad-based CL World Brands, which also owns Hine Cognac, Belvedere, Marie Brizard and Burn Stewart, launched its first new product in 200 years - Angostura Orange Bitters. Brand ambassador Mickael Perron says the company discovered in discussions with bartenders and mixologists that in the world of cocktails, "no single flavour has been as versatile as orange".

International brand manager Alison Getty, like so many, is adamant that Angostura is not in the traditional bitters sector. "We are not playing in the bitters sector," she says. "Angostura is for mixing in cocktails, non-alcoholic drinks and with food."

Within five years Jägermeister has gone from a one million case brand to three million in the US, overtaking its historical number one market, Germany.

Jack Blecker, Mast-Jägermeister 's international sales and marketing director, says: "We have been working for a long time all round the world on not being perceived as a bitters brand. we do not have a 'one-and-only marketing activities blueprint' for all our markets. We think and act locally."

The company focuses on young adults and has a programme of sponsored youth-orient ed events such as rock concerts. Jägermeister is strongly associated with the "bomb ritual" of shot drinking and the "flying hirsch", in which a Jägermeister miniature is dropped into a glass with an energy drink.

Blecker says: "In most of the markets around the world we are positioning Jägermeister as a shot brand. Consequently, our main competitors are local shot brands or international shots like Jack Daniels or Jose Cuervo."

Martin Bjelgaard, marketing director of V&S Distillers, which owns Danish bitter brand Gammel Dansk, acknowledges the success of Jägermeister in positioning itself as mixer and ice-cold shot.

He also sees Averna and Ramazotti as having been successful in making themselves appealing to younger adults.

Jägermeister and similar brands he defines as party brands, mixers and shots for younger drinkers, while Ramazotti, Averna and "Campari-type" bitters are aimed at more mature drinkers for use as an aperitif or digestif.

The classics are the "full bitters" such as Gammel Dansk (old Danish), Fernet Branca which he says are more traditional for mature consumers in a "relaxed, wind-down occasion". These bitters, he adds, are often used as a chaser to beer.

Nevertheless, he believes the sector has been stuck in a vacuum.

"The industry has an innovation problem within the category due to the very local origin of many bitters. Many brands have not changed profile or position in the past 30 to 40 years, leading to lost sales and shares.

"We at V&S Distillers have also been trapped in this innovation vacuum for a period, being a local Nordic player in the bitters category. But recently we have begun to realise the vast potential in the category and in our own brands," says Bjelgaard.

In January V&S introduced a new bitter, Malteser, into the German market and in August i t unveiled Gammel Dansk Asmund, named after master distiller and blender JK Asmund who invented the original brand. The ingredients are aged in 350-litre French Limousin oak casks used for Cognac. The taste is described as warm and rounded with notes of vanilla, coffee and cocoa beans.

Bjelgaard believes that, with the quest for new flavours, colours and sensations combined with lower alcoholic strengths, there is a place among modern drinkers for bitters.

The problem for bitters as a category is that the brands cannot speak with one voice like vodka or whisky. Gammel Dansk is a three million-litre brand and bitters is the second largest spirits category in Denmark with a 15 per cent share, but it is virtually unknown outside the country and certainly outside Scandinavia.

As Bjelgaard says, the local nature of bitters makes it "difficult". Euromonitor states: "The sector's development was constrained by the poor performance of traditional liqueurs in markets such as France and Italy in western Europe and Slovakia and Hungary in central/eastern Europe."

Michael Jordens, of Averna, which he describes as a "sweet bitter like Jägermeister", believes the happy hour/cocktail sector is still "quite an untapped opportunity for bitters". His brand and Pernod Ricard's Amaro Ramazzotti have done well in Germany primarily because of that country's love of the Italian/Mediterranean lifestyle. He also points out that sweeter bitters have a significant advantage with women who, generally speaking, have a sweeter tooth than men.

Of the major brands, Underberg has remained steadfastly traditional as a natural herbal digestif, best after a meal. It is available in more than 100 countries and claims to be number one in duty -free/travel retail. The leading brand in the herbal bitter sector, it still comes in the single shot 20ml bottle, but ask Underberg's Nicole Christen how bartenders should or could serve it and she says they should stick to the traditional way.

"Underberg should be drunk neat. All barmen or waiters should serve Underberg in the original, closed portion-sized bottle at the table. Open the bottle in front of the consumer and pour it in the Underberg tall glass - that is how to offer Underberg in a stylish way," she advises.

The bitters sector is so disparate that it is difficult, if not impossible, to generalise about. Certain brands have carved a niche or jumped on the shot and/or mixer/cocktail bandwagons. If there is a move away from clear, neutral spirits towards more exotic, demanding flavours then bitters with their authenticity, traditions, histories and medicinal claims should be well placed to exploit that trend.

Horrific fires devastated the countryside and ancient winegrowing regions of Greece during August this year. They started in the mountainous Peloponnese areas of Lakonia, Ilia and Messinia and high winds caused their rapid spread to lower cultivated lands. It is estimated that 250,000 ha have been burnt out, including dozens of villages and homes and, tragically, some 70 plus people lost their lives or are still missing.

The area of Messinia has several small wineries that have been severely affected. In Ilia, where the beautiful Mercoury winery has its vineyards, it has been reported that Foloi and the surrounding area, where many of these vineyards are concentrated, has been completely destroyed and other smaller wineries nearby have also been badly affected.

Forest fires also appeared in Korynth, but these were soon put out and, thankfully, the valley of Nemea has not been touched at all.

While there were no fires in Macedonia and northern Greece, the small new Tetramythos winery in the area of Kalavryta at the top of the Peloponnese has been totally burnt out, and it is understood that vineyards owned by Oenoforos and others in Aighialia have also been severely damaged.

The islands of Samos, Santorini, Crete, Rhodes and others were not affected.

Vineyard owners who have suffered at the hands of this disaster will be compensated during the next few years for loss of income, but there is some doubt as to whether wineries that rely on contracted growers only will receive any financial help from the government.

Former president of the Union of Wine Producers of Attica, Alexandros Megapanos , once said: "Greece has over 4,000 years of winemaking tradition, which cannot be ignored." But for all Greece's colourful history in the origins of winemaking, it is the here and now that matters to the world wine markets of today.

Greece's failure to make an impact on the world stage is due partly to its recent rather than its ancient past . Memories linger in the m inds of today's wine buyers and consumers of that dire period between the turn of the century and the late 80s when poor winemaking and rancid retsina were the norm.

Producers complain this is not helped by the way they are represented by those who hold the strings to their public purse - the government quangos and professional winemaking bodies of Greece. They say the fine wines of Greece are not being promoted in a fashion that will bring success or the recognition they deserve and any innovation or vibrant promotion is left to the importers and producers . Huge de listings have been seen across the board - the worst example could well be Oddbins in the UK, which listed 48 labels in 1999 but now has only around 11.

Waitrose supermarket in the UK, however, is starting to list some charming examples of Greek wine in the form of Hatzidakis' ground breaking Santorini Assyrtiko and Tsantali's delicious Organic Cabernet. How long will it be before more retailers have the foresight to delist their Greek dross and replace it with more of the good stuff from this wonderful region, even if it costs a little more, with other merchants hopefully catching on and following the lead?

Megapanos points out some other issues facing the producers of Greece in today's difficult market s. "Greek wine producers face high production costs for a variety of reasons: land holdings tend to be divided into small plots, making cultivation - a lot of which is done by hand - very costly, leading to high prices for grapes," he says.

A lot of the vineyards are planted with old, low-yielding vines and need to be replanted with varieties that can compete on the international market. Although international grape varieties are popular in the Greek market, a major trend is the promotion of indigenous grape varieties, of which there are many.

"Our priorities for the industry, and particularly for export, must be to create and promote brand awareness for Greece, and to support Greek grape varieties, which produce wines with character and typicity. Greece is a small country, and will never be able to compete with volume, so we need to create the image of a boutique wine-producing country with exclusive, quality wines. To achieve this we need long-term management and planning of our goals, and a concerted promotional strategy," he adds.

Greece's vineyards produce only a tiny amount of the world's wine - about 3.5 million hectolitres every year, of which 750,000hl is exported, while white grapes account for the majority of the 71,000-75,000 ha under vine (around 68 per cent). Even though production here is relatively small, the diversity of terroir and the various styles of wine are as broad as any other region in the world, if not more so. There is a vast wealth of indigenous grape varieties from which producers can choose ( some 300 or so, though only around 65 are significant), and myriad terroir types that var y from region to region - and, indeed, vineyard to vineyard - though it will take a huge amount of time and effort to instill in the consumer a basic knowledge about the various regions of the country. This is surely something which must be passed on through trained retail staff and sommeliers. Much is being made of the resurrection of once-thought extinct varieties, and Mary Pateras, director of UK wine importer Eclectic Wines, feels Greece's real wealth lies in its traditional indigenous varieties.

"It's the crisp white wines from indigenous Greek varieties, with good structure and balance of fruit and acidity, that seem to sell best in the key UK market," says Pateras. "They have to be realistically priced and preferably with some added value - for instance, the ancient vines of Santorini, possibly the oldest in the world; a touchy-feely story about a winemaker; a beautiful island etc. With this in mind I find Assyrtiko wines from Santorini have the greatest appeal as this variety seems to be fast outstripping other noble grape varieties and is becoming recognised internationally - Hatzidakis on Santorini is upping his production of Assyrtiko by 10 tons to meet demand from both the UK and US markets.

"Dessert wines from Greece also have a good image, good examples being the Muscats from Samos and Vinsanto, but fine sweet wines sell in smaller quantities. Red wines have sold slower than the crisp whites, but generally there is reasonable demand for the softly-oaked Nemeas (Agiorghitiko), although there is an interest in wines made from more esoteric grapes, such as Mavrotragano (Santorini) and Xinomavro.

"The English market, however, wants a point of difference and really appreciates the indigenous grape varieties and the unique flavours they have to offer. Many of these wines are great with hard-to-match food, for example tomatoes and artichokes. Special winemakers making great wine will ultimately be appreciated in the UK, but it does take time to erode old prejudices."

According to Dr George Tsantalis, vice president of the giant producer Tsantali, which has wineries all over northern Greece and exports to 48 countries , his wines fare better in markets other than the UK, especially when sold by well trained staff.

"It is fair to say every market is radically different and each has its own unique challenges," say s Tsantalis. "For example, the UK is one of the most demanding and difficult countries, as the market is very price-driven and emphasis is given to constant price promotions, making it difficult to match the prices set by New World countries. We have also found that in the UK the consumers are still unfamiliar with wines from Greece, which only sell considerably well when they are hand-sold and explained by the staff . Whereas in Belgium, for example, the market is more open as it is not dominated by big brands."

"In Canada," he adds, "the pace is set by the monopoly making it easier to reach the shelf. The Russian market has also been difficult to crack as the multiple grocers are full of wines, the competition is big and the listing fees are even bigger. The US market is difficult to enter as there is a lack of knowledge of Greek wines in a marketplace dominated by Californian and other US wines."

Tsantalis continues: "The ex-pat market still gives us a strong footing and is a very good asset. They tend to make the entrance to the overseas markets easier and they offer a good boost in sales. Greek gastronomy in ex-pat markets acts as an effective promotional tool as the restaurants can introduce the wines to their customers and convince them of the quality and character.

"In countries where Greek cuisine can be found, the demand for wines from Greece is generated automatically. In Germany, Austria, Holland and Belgium, Greek cuisine is widespread and there is also a liking of the Mediterranean lifestyle. This has resulted in multiple grocers wanting to stock wines from Greece.

"The common denominator in most markets is that wines from Greece face strong competition, not just from the Old World but also countries such as Chile, Australia, South Africa and so on, that spend serious money on promoting their wines, which gives them a competitive edge. However, the strong asset Greece possesses is global market diversity, new intriguing tastes to the palate and I believe we have the potential to be a formidable player in the middle price range ."

The 2007 vintage looks promising with regards to quality if not quantity. June saw a serious heat wave hit most regions, halving the crop yield in some areas - but early reports suggest the quality of what is left will be excellent. It is hoped that HEPO and other organisations deliver the service the wine producers of Greece have been waiting for - maybe then these winemakers will get the public recognition they deserve for their excellent wines .

Following the warmest April on record and, with the maximum permitted yield in the appellation set at the new INAO agreed high of 15,500 kilos per hectare, Champagne looked set to have the earliest and largest harvest on record this year. But this expectation has been confounded by unexpectedly wet and cool weather pretty well from May right up until the last week of August.

The warm weather in April - when the average temperature was 5.6°C above the monthly norm of 9.4°C, with temperatures above 25°C achieved on 11 days - kick-started the growing season and flowering began three weeks in advance of normal, leading to the prediction that the harvest might begin even earlier than in 2003, when grapes were first cut in the Côte des Bar village of Bligny on August 18.

However, with considerably more rain than normal and fewer sunshine hours in both July and August - there were 15 days of rain in the first three weeks of August with more than 6mm falling on seven of them and 60 fewer hours of sunshine than the monthly norm - things slowed down. The first official date for picking was August 23, when a number of villages in the Côte des Bar, including Buxeuil and Neuville-sur-Seine, were allowed to start picking black grapes (Pinot Noir and Pinot Meunier) along with Bethon and Cumières (Pinot Meunier only) - the latter always one of the first top-rated premier crus to start the harvest, thanks to its exposure.

Bordeaux has its First Growths and Burgundy its tiny Grand Cru vineyards, but Champagne is a special case. Everything about it shrieks exclusivity, the exception to the rule . Yet, at the same time, it stands for good times and celebration and has become increasingly accessible to a wider cross-section of consumers.

In the face of ever-increasing demand (see Analysis, page 29) the Champagne industry is being squeezed by lack of new vineyard space, and the major producers are turning to added-value strategies to find new opportunities to increase profits.

That's where the prestige cuvées come in. They're expensive - current UK retail prices for the benchmarks are around £90 for Dom Perignon and Belle Epoque, £95-£100 for Krug Grande Cuvée, £150 for for Roederer Cristal and £95 for Clicquot La Grande Dame - but what exactly are they? There is no official definition - it's essentially down to what each house decides to package and market as its prestige, special or deluxe cuvée.

Daniel Lorson, head of marketing at the Comité Interprofessionnel du Vin de Champagne , says: "I would say that the first contact for a consumer is the distinctive packaging - shape, clear glass, special label and so on. The second difference is the price, which can be only twice as much as a NV, or three or four times or more."

It's a subject that lies at the heart of the philosophy behind each Champagne house involved, and on which the Champenois themselves like to wax lyrical.

Specialist in the field is the house of Krug which, since its establishment in 1843, has concerned itself solely with the production of prestige cuvées. "Champagne houses build their ranges as a pyramid," says president and chief executive Panos Sarantopoulos. "NV, vintage, and at some point in time - and in some cases as an afterthought - they will create a special cuvée. In many cases it will have some sort of special significance internally, commemorating a person or a date, for instance.

"We have the Grande Cuvée that defines the very style of our house - it's the star in our solar system and the other styles revolve around it. Then you have the exception: Clos du Mesnil - single vineyard, single vintage, single varietal. It is the blonde-haired princess, sister of four dark-haired boys."

In the eye of the beholder

Going further, Alexis Petit-Gats, international sales director for Canard-Duchene, which produces the prestige Grande Cuvée Charles VII range, adds that it can even come down to public perception. "It depends which consumer you are talking about," he says. "There are only very few prestige cuvées, probably two, that the general public would think about, and most would probably not be able to link those to the Maison to which they belong. On the other hand, if you explore the prestige cuvée category with consumers more interested in Champagne, they will refer to tête de cuvée and know about it."

"It's a knowledge-led market," agrees Chris Seale, head of Champagnes at Pernod Ricard UK, "in which understanding quality, craftsmanship and rarity is key."

"The price for prestige cuvée is driven by the quality: the best grapes, special winemaking, longer ageing," says Dominique Demarville, deputy cellar master at Veuve Clicquot. "But also because these cuvées are rare. Often, when people are buying prestige cuvée, they are not looking at the price but they are looking at the name, the quality, the packaging. It is the same when we offer flowers to a lady - we are not looking at the price but at the pleasure we will give ."

CIVC's Lorson agrees: "The quality itself - and they can be multi-vintage, vintage or NV - is not the only factor," he says. "If the consumer is solely interested in quality, he might look for a small producer instead of a prestige cuvée. Rarity is important, even if it's only a perceived rarity by the consumer. As well the history, if any, matters for many consumers."

In London, conspicuous consumption has been driven by city bonus culture, and consumers are motivated by the fact that prestige cuvées are the best, along with all other deluxe brands. "We're getting more requests from our [London] clients for old and rare vintages," says Seale. "Consumers understand that rarity and availability drive price." And price, argues Krug's Sarantopoulos, is not relevant except in relation to producers' own ranges.

Creation of value

So prestige cuvées are a seemingly guaranteed route to increased profits. "It's true that more producers want the consumer to trade up," says Lorson. "The creation of value is crucial. NV is still 85 per cent of total Champagne sales, and those who drink it are very price sensitive. So a good way to increase turnover faster is to sell more vintage, rosé and prestige cuvée."

But, he adds, not all producers are likely to win out at the top end: "For those houses that already have a prestige cuvée it would be [commercially] dangerous to see newcomers. For any newcomers it is difficult, requiring a lot of investment in launches and ongoing promotion."

At Pernod Ricard, the last 12 -18 months ha ve been about integrating ex-Allied Champagnes Mumm and Perrier-Jouët into the portfolio, and in that time the company has launched a Blanc de Blancs extension of its iconic Perrier-Jouët Belle Epoque and the Mumm Cuvée R Lalou - the first Mumm prestige cuvée since the 1985 vintage of the former Mumm René Lalou cuvée.

"A higher style of Belle Epoque was a natural extension for us, with Belle Epoque already being a Chardonnay-driven style," says Chris Seale. "Mumm is now in a very different position to where it was even 10 years ago. The time was right to launch a prestige cuvée."

Chef de caves Didier Mariotti says: "Cuvée R Lalou truly reflects the GH Mumm vineyard, the heart of the house. Selecting and working with individual vineyard parcels; harvesting, pressing and vinifying each lieux dit separately - this is the dream of every Champagne oenologist."

"The temptation is certainly bigger today than a few years ago to develop more prestige cuvées," cautions Dominique Demarville. "It will not detract from the value of the existing ones if they keep their level of quality. When the volume of prestige cuvée increases, it can be dangerous for the NV because the best wines are used for the top quality wines. At Veuve Clicquot we do not do La Grande Dame or a Vintage if the quality of the year is not enough good to secure our Yellow Label."

Limited ultra-premium

Setting aside the challenges of limited grape supplies and the need for hefty marketing budgets, the future for Champagne looks certain to include growing numbers of prestige cuvées from both existing producers and new players. "It seems the Grandes Maisons are trying to develop this category because Champagne is, by definition, an ultra-premium and limited product," says Alexis Petit-Gats.

"We would expand La Grande Dame, however production is limited by the capacity of the eight Grands Crus [vineyards] to deliver enough wines for the blend and also by the quality level of each vintage," says Demarville.

"The big players are well established and difficult to compete with," says Daniel Lorson. "But the cake is growing, and the Champenois are trying to add new value-added segments to their portfolios.

"Today's world economy is making more people rich, and they are more likely to spend over E100 to buy something impressive."

A year ago, UMP party deputies Philippe-Armand Martin and Gerard Voisin suggested teaching wine appreciation in French schools to help the nation's ailing vineyards, in the light of increasing evidence that young French people are turned off by the traditional drinks of their parents.

Per capita wine consumption had, after all, famously dropped dramatically from what it was in 1970, standing at some 55 litres per capita in 2005 compared with 160 litres previously. This meant the French domestic drinks market had been shrinking at the same time as the export market was suffering from increased competition from the New World, an effect felt most acutely from the early 1990s onwards. It had also been suffering from particularly restrictive legislation (Loi Evin, or the Evin Law) aimed primarily at reducing alcohol consumption by carefully controlling advertising practises.

But after a number of difficult years, things seem to be looking up, at least in pockets of the industry. In 2004, the total volume of wine produced in France was 5,850 million litres and the country remained the largest exporter of wine by volume with an 18.5 per cent share of the world wine market. In the same year, France was also the number one exporter by value with a 35.1 per cent share of the world wine market and total exports valued at US$6.8 billion. Last year, the largest drinks company in France, Pernod Ricard, had total sales of €6,443 million (US$8.7 billion), while the largest wine company, Castel Frères, reported sales of €920 million in 2006.

The Fédération des Exportateurs de Vins et Spiritueux de France (FEVS) is a trade association representing the interests of 550 wine and spirit-producing and exporting companies from France. The latest FEVS figures show the value of French wine and spirits exports totalled €4.16 billion (US$5.6 billion) in the first half of the year, an increase of 7.5 per cent on the corresponding period in 2006, with sparkling wine up 13 per cent. As French wine exports had fallen 11 per cent between 2002 and 2005, this was very welcome news. In the year up to July 2007, total wine exports were valued at around US$6.35 billion, climbing back up towards the 2004 figure.

Even in the home market, while the French are drinking less they are at least drinking better. In terms of volume sales, the off-trade accounts for the bulk of alcoholic drink sales, taking around two-thirds of sales during 2004 (and 70 per cent of that in supermarkets). In value however, two-thirds goes to the on-trade. Across all sectors, the move towards premium products is now well-established, although pressure on prices in supermarkets, combined with fewer people going out to drink in restaurants, mean that market value hasn't risen significantly overall. In terms of categories other than wine, the major changes in recent years have come from ready-to-drinks, which demonstrated steady growth both in volume and value, moving from 57,793.5 litres in 2001 to 63,519.5 litres in 2007 (source: Euromonitor).

The French are not averse to drinking beer, especially in the north west and north east. Annual beer consumption in 2005 stood at 20 million hectolitres (just slightly over production figures), or 38.6 litres per capita, with this figure showing a slight decline since 2001. As with wine, drinkers are showing a tendency to choose quality over quantity, but while there is a small rise in the opening of independent microbreweries, Kronenbourg and Heineken still control about 75 per cent of the French beer market. Imports perform much better in beer than in wine, accounting for around 25 per cent overall.

Cider also has a fairly stable market , not seeing the same double-digit growth as in the UK - with sales in supermarkets and hypermarkets remaining stable or losing slightly in most categories, from dry to sweet - but overall consumption rising from 99,980 litres in 2001 to 104,921 litres in 2006 (source: Euromonitor).

One bright spot in the drinks market is Cognac. According to the BNIC (Bureau National Interprofessionel du Cognac), five bottles of Cognac are sold somewhere in the world every second. From May 1 2006 until April 30 2007, Cognac shipments grew by just under 10 per cent, continuing five consecutive years of growth. The increase in shipments applies to all categories (VS, VSOP, XO) and to all markets. Cognac now sells 157 million bottles, a year, putting it at the top of international consumption tables for quality eaux-de-vie. With almost 95 per cent exported, Cognac currently represents some €1.5 billion in France's balance of trade figures - an increase of 10.5 per cent in one year. Armagnac has also seen a rise in export value of 29.3 per cent over the past year.

Champagne, of course, stands alone as a French success story and should perhaps largely be seen as a luxury goods product. The region's biggest, if not only, problem is being unable to fulfil demand - a situation which is set to get worse in the coming years as the lack of potential new vineyard areas persists. Figures for May 2007 show sales up again 7 per cent in France and 8.1 per cent in export, according to CIVC , up 99 million bottles from the same period in 2006.

But France is best associated with still wine - and it is wine producers who have been suffering the most in terms of declining sales. But intense marketing efforts and genuine attempts to balance supply and demand through uprooting vines and distilling excess wine have led to improvements. Still wines overall, in the first six months of 2007, saw a rise of 1.3 per cent in volume exports and 4 per cent in value.

Philippe Castéja, president of the FEVS , is clear about the challenges. "Global wine consumption is growing every year, even while we're losing drinkers in France, and that gives me hope for the future," he says. "But I am also aware of the problems we face. For example, I'm fighting in the EU for action to help lower the import taxes that India places on wines that can go up to 500 per cent."

As in the rest of the world, rosé wines are up in volume in France, selling 200.8 million litres in 2006 (+7.5 per cent, source: Rayon Boissons) in hypermarkets and supermarkets. In terms of wine regions, Burgundy exports have risen more than 20 per cent in value over the past six months (and 6.8 per cent in volume), and Bordeaux has managed to stem four years of declining sales, showing a 2.2 per cent rise in volume although still dipping slightly in export value.

Imports of overseas wines to the domestic market remain a tiny 2 per cent of the overall picture (and that figure has remained constant for 10 years), and the ones that make it over the border are still given poor exposure on supermarket shelves.

Yvon Mau, however - one of France's largest brand-led négociants and a subsidiary of Spanish giant Freixenet - is planning a marketing drive to improve the image of imports. Its overseas range, known as Flying Vintners, distributes Constellation Brands wines alongside Freixenet wines, including names such as Paul Masson (US), Trapiche (Argentina), Barramundi (Australia) and Kumala (South Africa).

"There has been an increase in international wines in the on-trade," says Christian Herbeth, of Flying Vintners, "with their positioning on wine lists becoming more prominent, and this is starting to follow in supermarkets also. But sales are centred around brands - the leading wines of Australia, Spain and so on; it's difficult to round out a range and to place more unusual grape varieties or smaller producers. However, we have good quality references on our list. There are too many wines coming into France that are low priced and not good quality, so if the French decide to try an overseas wine, they often don't get a good experience. We try to break with that tradition, going above €5 in our range and ensuring quality bottles." The strategy appears to be working, with Flying Vintners seeing a 10 per cent rise in sales over the past year, now up to 1 million bottles per year, excluding cava.

Overall the drinks market in France looks set to continue to be one of the world's leading consumer markets. The French have the enormous advantage of being indelibly associated in the minds of consumers around the world with food and drink - the Washington Post recently ran an article looking at how the success of Hollywood film Ratatouille, set in Paris, had reminded the French of the strength of their own gastronomic image.

The continuing ability to pull out of a difficult slump, however, depends largely on individual producers looking not to the EU or the government to help with their supply and demand issues, but to adapt to a modern marketplace, and to modern consumers who have plenty of other options for their drinking dollars.

Those who regularly attend business conferences or seminars such as Wine Evolution , Pro Wein, the London International Wine & Spirits Fair or Vinexpo are likely to have seen Marian Kopp in action.

His enthusiasm is infectious. Almost so much so that you want to be inoculated against it. So fresh-faced, you feel that security personnel at German wine and spirits company Racke probably ask for the executive board member's ID and date of birth every time he comes in.

One of the biggest challenges when we're asked to create a distinctive design for a branded wine range is how to make it stand out in a category so dominated by tradition and traditionalists. Mixing oil and vinegar comes to mind.

We quickly discover two very different perspectives: that of the traditional wine trade and that of the consumer. For the former, the focus is more on WHAT? So what's important is the country of origin, the grape variet y, the maker and ultimately the price - the factual stuff.

But today's consumers are more concerned with WHEN , WHO and HOW? - the more emotional side. We want to choose the right wine for a particular occasion, considering who we're going to drink it with and what it says about us. We're anxious to "do it right", serving it with the right foods and creating a good impression. This is where brands come in.

The wine brand has to offer everyday consumers a more compelling, emotionally engaging and reassuring story than simply "this is a Merlot". Having won them over, it wants to keep them loyal, making it easy to find other wines from the range. Ultimately it has to help them choose what's best for them by selling a consistently reliable approach and attitude, rather than just another product.

We have to communicate these emotive values in a way that will be recognised (ie looks different to other wines) but also trusted (ie isn't too unconventional). It's difficult to balance these opposing forces, and it's always tempting to be safe rather than sorry. But we know from long experience that the safe way doesn't tend to deliver the business objectives. Those compelling brand messages eventually get camouflaged in all the traditional wine language: The Wine Design Law.

But there is one golden rule that you break at your peril. Most people regard even the cheapest bottle of wine as a more up-market treat than a premium food. As long as whatever you do looks "classy", wine drinkers will cut you more slack than you might think or that even they will admit to in focus groups.

And "classy" really doesn't have to mean sombre typefaces, endless coats of arms and lashings of gold script.

Have security restrictions on passengers carrying liquids onto aircraft - particularly for transfer passengers - done irreparable damage to the duty-free and tax free liquor sectors?

It's the drinks industry's longest-running story-that's-never-actually-happened. Britain's biggest brewer, Scottish & Newcastle, has been rumoured to be a takeover target for several years - for SAB Miller, Diageo, Heineken, a pre-Pernod Allied Domecq, and now Carlsberg.

Speculation about Carlsberg's intentions surfaced after the Danish brewing giant announced changes to its share structure in May that vastly increase its spending power for potential acquisitions.

The move sees a reduction in the minimum shareholding in the publicy-quoted Carlsberg held by the Carlsberg Foundation trust from 51 per cent to 25 per cent, allowing the brewer to strengthen its capital base through new share issues. A statement said the trust was "prepared to ensure the company can continue to seize value-creating opportunities that arise as a result of the ongoing consolidation of the global beer industry."

Carlsberg quickly insisted that no immediate offer for S&N is on the cards, but there would clearly be some synergy between the two businesses, and Carlsberg will be capable of a counter-bid should another major international player come in with a firm offer for S&N.

Prior to the Carlsberg share restructure, the talk was of a joint bid for S&N by Diageo and SAB Miller, though since then talk has been more about Diageo getting out of beer rather than deeper into it.

Carlsberg's declared global aim is to be the number one player in every market it plays in and analysts have suggested it could raise an extra £4 billion by issuing new stock, though this could still leave it short of the suggested asking price of £8 billion quoted in some sources for S&N.

A cheaper alternative would be for Carlsberg to attempt a buyout of BBH, its market-leading joint venture with S&N in Russia and the Baltic states. A clause in the JV contract allows either party to trump the other with a better offer if a buyout bid is made. This would leave Carlsberg's own stake in BBH vulnerable if S&N as a whole were to fall into the hands of another global player such as SAB Miller.

Russia is the fifth largest beer market in the world and BBH management ha s already set its sights on usurping Heineken as the biggest beer brand in Europe, making the stake in BBH and its main Baltika brand an attractive chunk of any S&N deal for serious global players.

For Carlsberg, BBH would be a comfortable strategic fit with Germany and the larger Scandinavian beer markets, where it is already the market leader.

S&N's market leadership in the UK and France would hold similar attractions for Carlsberg and the two company's portfolios are more complementary than conflicting.

As well as its European strengths, Carlsberg holds the number two position in Malaysia and Singapore and claims to be the biggest brewer in western China.

S&N is the second biggest brewer in Belgium and Greece and has a half share in United Breweries, the biggest producer in India, where Carlsberg has been trying to build its brewing platform.

The main scrutiny from the regulators could come in S&N's domestic market, where it brews top-three beer brand Foster's under licence in direct competition with Carlsberg's main pilsner. The Australian Foster's Group would probably want out of any partnership where it could quickly become the junior brand and look elsewhere, feasibly even setting up its own UK brewing operation as Anheuser-Busch and Carlsberg itself have done . A combined Carlsberg-S&N would be top heavy with UK brewing capacity , and would feasibly offload any o f the S&N plants at Gateshead, Reading and Tadcaster, or its own at Northampton.

Regulators could also force the sell-off of the Tetley's ale brand, with S&N's UK market leader John Smith's a more attractive proposition for Carlsberg to keep. But John Smith's long-term future could be shaky under Carlsberg - S&N alone among the leading British brewers has invested in its ale brand, while Carlsberg has switched focus from Tetleys to its own lagers.

There could also be competition issues in Portugal and Finland, both markets in which Carlsberg is the biggest player, with S&N in number two spot.

Carlsberg may not be ready to bid for S &N immediately, but it is clearly getting into position should the right time come - and that could force other potential suitors out of the woodwork. It's one takeover story that won't be going away any time soon. Probably.

Over the past 10 years Champagne consumption has only exceeded production twice, in 1997 and 2003. In the latter year the average yield across the appellation was 8,251kg/ha due to the summer drought and just 219.12 million bottles were produced while more than 293.3 million bottles were shipped: a deficit o f 74 million bottles. Although production exceeded consumption by a similar amount in 2000 and 2004, if we take a 10-year average from 1997 to 2006, the figure drops to 22.6 million bottles a year.

The Champenois always like to store away at least three times the increase in sales in any given year - and consumption rose by 14 million bottles in 2006 - and therefore they don't view this as enough to meet rising demand. They'd like it to be at least 42 million bottles, but would still prefer a little more.

With nearly all the vineyard within the currently defined Champagne appellation planted - there are just 1,250ha due to come on stream in the four harvests between 2008 and 2011 which should add between 12 million and 15 million bottles to production - the Champenois have come up with two solutions. In the short term between now and 2011 they will raise yields and in the long term expand the appellation.

With this in mind, at the harvest meeting between growers and the négociants that took place on July 23, it was decided to allow producers this year to pick up to the new maximum allowed yield of 15,500kg/ha. If this average is reached across the Champagne AOC's estimated 32,500ha of productive vineyard, theoretically 420 million bottles of Champagne could be produced - 45 million above the previous high of 2004.

This new level of yield is permitted under the new agreement with the Institut National d'Appellations d'Origine (INAO), which runs for an experimental period of five harvests (2007-2011). In reality, even if this high level is reached, which towards the end of picking in mid-September looks increasingly unlikely (see harvest report page 44), initially only some 340 million bottles will be produced. This is because the base yield is set at 12,400kg/ha, which equates to 340 million bottles. However vineyard owners - principally the 15,000 or so individual growers who farm just over 90 per cent of Champagne's total vineyard while the big houses own slightly less than 10 per cent - have the option of producing up to a further 3,100kg/ha depending on the level of wine they already have in their "réserve individuelle".

The idea is that between 2007 and 2011, growers will be encouraged to build up the volume of wine they hold in this réserve individuelle to a maximum of 8,000kg/ha. If they currently hold 4,700kg/ha or less, they will be able to pick up to the maximum 15,500kg/ha this year.

Prior to the 2007 harvest the Comité Interprofessionnel du Vin de Champagne (CIVC) has confirmed that the average réserve individuelle is 2,680kg/ha and if sufficient grapes are available on the vines this would not stop the extra 3,100kg/ha being picked. But some of the growers may have reserves closer to the maximum 8,000 kg/ha, which is equivalent to roughly half a harvest.

The Champenois want primarily to build reserves up to this level in case of a major problem with any particular harvest, so they would still have sufficient wine to produce more than 300 million bottles (even with a yield as low as 4,000kg/ha). But it is becoming clear that this reserve may also be used to increase production over and above the present level if demand keeps on rising at a rate that cannot be satisfied by the area of vineyard now in production.

The négociants also hope once the growers have this 8,000kg/ha in their reserves and know there is little danger of their income plunging as a result of such a natural disaster, they will take a more conservative and responsible view about grape prices, which have risen at an alarming rate in recent years (more than e5/kg for grand crus) from the négoce point of view.

The problem for the Champenois, as the 2007 harvest looks likely to demonstrate, is they can't control nature. So while raising yields to address the supply problem, even in the short term, works on paper, they won't know if it will actually work until after the harvest is in. And while in the past three years (2004-06) the average yield has risen to 13,279kg/ha, over the past 10 years (1997-06) it reached only 11,889kg/ha.

If demand continues to grow quickly a decision on expanding the vineyard needs to be made soon. Alternatively, with Champagne houses increasingly shifting focus towards their "added value" ranges, perhaps the Champenois should consider leaving the sub-£20 territory to the growing band of quality sparkling wines being produced in other parts of the world.

One definition of luck is: "events that are beyond control and seem subject to chance; fortune". In other words, luck has a lot to do with being in the right place at the right time.

Not for a minute should it be said that Michael Cockram, Beam Global Spirits & Wine's global Scotch category director, is lucky . Far from it. He has worked his way up from British bank NatWest, via Jim Beam Brands Greater Europe and William Grant & Sons to Allied Domecq Spirits and Wine .

But after years in the doldrums, the fact is, Scotch is hot. Earlier this year Diageo, the biggest drinks company in the world and the major player in Scotch whisky, announced a £100 million investment in Scotch - £80 million in expanding malt and grain distilling capacity and the rest on packaging and warehousing.

Chief executive Paul Walsh is not going to stick his neck out on such a venture unless it is a sure-fire winner. Witness the latest results, delivered at the end of August: Johnnie Walker, its flagship and the world's leading Scotch brand, now sells more than 15 million cases per year.

Cockram must be one of many in the Scotch whisky industry, pinching themselves and asking: "Is this real, or just a dream? And how long will it last?" Arguably even more so for Cockram because he has one of whisky's most iconic brands under his belt - Laphroaig. The peaty single malt from Islay , not deemed suitable for the wimpy, faint-palated whisky drinker , is strictly for macho, anorak-clad aficionados - the whisky of choice for Scotch hoodies. This brand is only on allocation. Supply and demand? Forget it.

"I don't think anyone anticipated such a strong boom. There has been strong evolution," he says, as a piece of masterly understatement. "The rise of the BRIC countries (Brazil, Russia, India and China) has been significant. Forty -three per cent of all growth in Scotch over the last four years has come from these countries."

But why this massive switch to Scotch? In Europe it seems we can't be bother ed with it. Walsh has pulled the plug on investment in traditional markets such as the UK and Ireland, while Spain, once a big consumer , has become "difficult" following its discovery of rum.

"What we are seeing is part of the way the world is moving," says the 37 year old. "The economies of Latin America are strong and Asia has been up and down, but there is strong potential. They are all moving to western ways."

Nevertheless, why Scotch? "In other countries, Scotch is more prestigious. Scotch is a wonderful mix of a strong heritage and quality, and there is a real sense of discernment," says Cockram.

But surely Cognac has the same qualities? It is also enjoying a renaissance, even though endorsement of certain brands by New York rappers has created a somewhat narrow "audience".

Cockram says: "Scotch has been exporting for hundreds of years - all those Anglo-Saxon countries and historical relationships from global trading. Also, the flavour [of Scotch] meets the needs of global consumers, from smooth grain whiskies to heavy malts like Laphroaig. The sheer range is, I believe, unique among spirits. The volume is still in blends but [sales of] malts are growing strong er. It is still an acquired taste and that gives individual discernment."

Cockram recently oversaw the launch of Laphroaig 25 Year Old to replace the 30 Year Old expression, and the unveiling of a limited-edition 27 Year Old that will cost the princely sum of £500 - for one of 1,000 bottles or so. No worries about shifting old stock with Laphroaig.

One challenge for Beam and Cockram is the resuscitation of dear old Teacher's. Once the strong, number two blend in the UK , it now languishes in the wake of Famous Grouse and Bell's . Help is at hand, according to Cockram.

"Teacher's is the number one bottled Scotch whisky blend in India and Brazil, and is stable in the UK," he counters. "From research, we have not identified any big problems with it. In fact, Teacher's has a lot of strengths. We are going to rebuild equity in the brand, strengthen it and give it a profile. There is still a lot of people who love it, but it has been quiet for a long time."

Cockram reveals that next September we will see a new-look Teacher's: "It is a complex project, involving the whole world."

With Scotch, you dismiss or ignore the whole world at your peril. Lady Luck - who needs her?

== Product

Glenmorangie

Critique by Gemma Leech, brand manager Charteredbrands ==

September saw the results announced of the world's two largest, and most respected competitions in the wine and spirits sector - the International Wine Challenge (see page 8) and the International Spirits Challenge. The trophies and medals for these are widely recognised as marks of excellence - and not only by the trade but, most crucially, by consumers too.

With this month's Drinks International you'll find the special supplement featuring all the Spirits award winners which was distributed after the awards presentations at a celebration dinner held at London's Claridge's Hotel.

The medal-winning products were on display for guests to sample during the evening but I found it particularly interesting to note just how much attention the different styles of packaging were attracting.

There is no doubt of the importance of presentation on shelf or behind the bar - after all, it's usually a split-second consumer decision that's being made.

With the trend in all categories being "premiumisation", there's been a move towards heavier, decanter-style glass bottles in the belief that consumers relate weight to quality - but is this really the case? Not necessarily, according to a recent WSTA and Wine Intelligence "consumer intelligence" report.

While the findings of this research relate primarily to wine, it is also worth considering its implications for spirits. The report confirms anecdotal evidence that glass weight and colour are not important choosing cues in the purchase of wine.

This means that a move to lighter glass in the interests of the environment is not likely to encounter heavy consumer resistance. The report also finds that people have an open mind to alternative forms of packaging for wine, such as PET or cartons, according to occasion - informal meals or picnics, for example. But most ruled out ring pull cans, which surprises me as I've just sampled some, still and sparkling, in Rexam Bevcans, which were in excellent condition.

Brand owner Montgomerie & Co

Produced in Scotland

Size 70cl

Price £45-95, e75-145

Abv 46

Markets UK, France, Netherlands, Italy, Spain, Germany, Sweden, Belgium

Contact: duncan@duncanbaldwin.com

Montgomerie & Co has upgraded and relaunched its Montgomerie's Single Cask Collection. The range is said to be based around selected single-cask malt whiskies from Scotland's five main whisky-producing areas: Highland, Speyside, Lowland, Islay and the islands.

All bottlings are colouring free, without chill filtration at 46 per cent. The first relaunch bottling has drawn from nine casks offering three Speyside, two Highland, two Islay, one Lowland and one island malt.

The embossed bottles come in matt-black cartons and feature colour-coded labels to differentiate the regions.

Brand owner Jackson Family Estates

Produced in California

Size 75cl

Price £8.99-9.99, US$14-15

Abv 13.5

Markets US, UK

Contact: fells.co.uk


Jackson Family Estates (JFV) has introduced two wines into the UK through multiple retailer Tesco - the Kendall-Jackson Vintner's Reserve Pinot Noir and Sauvignon Blanc - which give the California fixture some much-needed mid-priced level wines.

JFV focuses on cool, coastal, Californian vineyards and is said to have 5,700ha of vineyards, 95 per cent of which are in mountains, ridges, hillsides and benches.

Winemaker Randy Ullom describes the Pinot Noir as "black cherry fruit, with velvety tannins typically found in hillside grapes along the north coast, combined with flavours of blackberry jam and currant from Monterey County. Oak ageing adds hints of vanilla, cola and a soft, smoky finish".

Brand owner Société Marnier-Lapostolle

Produced in France

Size 70cl

Price £20, E29.50

Abv 40

Markets Europe, Asia and Latin America

Contact: terryb@cellartrends.co.uk

Lounge bars are the theme of this year 's limited edition, which is the fifth in the annual series, and the Cordon Rouge attempts to recreate the image of lounge bars worldwide, suggesting velvet, leather and metal.

The 127-year-old brand is said to combine the flavours and aromas of the perfumed Bigardia green orange with selected Cognacs.

The limited edition is available in top shops such as Fortnum & Mason, Harrods, Harvey Nichols and Selfridges in London.

Brand owner Andrieu Frères

Produced in France

Size 75cl

Price £4.99

Abv 12.5

Markets UK, France, Scandinavia

Contact: freerunwines.com


Free Run Wines, a UK wine agency, has introduced a second organic wine from southern France, L'Olivier, which means "olive tree". The white L'Olivier is made from organically grown Roussanne, Grenache Blanc and Muscat Petits Grains grapes, produced on the Andrieu Frères estate.

The packaging are made from recycled material. A donation is made to the Tropical Forest Trust for each bottle sold.

The red version is made from Syrah and Mourvedre grapes, also from the Minervois region.

Brand owner Bessière

Produced in France

Size 75cl

Price £5-6, e3.50-4

Abv 13

Markets UK, France, Belgium, Germany and Switzerland

Contact: x.renerre@bessiere.fr


Bessière, the Languedoc-Roussillon specialist wine producer, has introduced a range of varietal Vins de Pays d'Oc wines. The range comprises one rosé, Grenache Gris; two whites, Chardonnay and Sauvignon Blanc; and three reds, Cabernet Sauvignon, Merlot and Syrah - all from the 2006 vintage.

The entry-level range has easy-to-read labels with the grape varietal in large letters to make the choice simple for novice wine drinkers. The wines were blended to be fruity and easy to drink.

Brand owner Viña Morand é

Produced in Chile

Size 75cl

Price £12.99 (75cl), £14.99 (gift pack), e15.00, US$19.99

Abv 13.5

Markets US, Europe

Contact: antony@discoverywine.co.uk

Vistamar is Viña Morande's independent retailer-only and on-trade exclusive premium wine label. It has introduced a limited-edition presentation gift-boxed version of its 2004 Gran Reserva Cabernet Sauvignon/Syrah, which is aimed at gifts for Christmas and other special occasions.

Hand-harvested and unfiltered, the Maipo Valley wine is described as elegant, intense and fruity with aromas of woodland fruits, blueberries and black cherries, coupled with notes of dark chocolate and vanilla.

Brand owner Massaya & Co

Produced in Lebanon

Sizes 4cl, 20cl, 35cl, 37.5cl, 50cl, 75cl, 150cl

Price £22.99-23.99

Abv 53

Markets US, Canada , France, Germany, Belgium, Switzerland, UK, Lebanon, Syria, Jordan, UAE

Contact: massaya@massaya.com

El Massaya Arak is an aniseed flavoured eau-de-vie from the Lebanon. It is made by brothers Sami and Ramzi Ghosn and two French winemaking families - Fréd éric and Daniel Brunier of Vieux Télégraphe, and Dominique Hebrard, ex-Cheval Blanc, now Château Bellefont-Belcier and Trianon in Saint Emil ion.

El Massaya is made from a base wine of Obeidi, an indigenous Lebanese white grape variety. It is triple distilled in Moorish lid copper stills, which are heated over vine wood embers. Uncrushed green organic aniseed from the village of Hineh on Mount Hermon is added for the third distillation, after which the arak is matured in old clay amphorae for 12 to 18 months. It is bottled, unfined and unfiltered.

Brand owner Edrington

Produced in Scotland

Size 70cl (75cl South Africa)

Price SEK299, approx e20-25

Abv 40 (43 South Africa)

Markets Sweden, Finland, Norway, Denmark, Estonia, Netherlands, Germany, South Africa

Contact: thefamousgrouse.com

Brand owner Viridian Spirits

Produced in France

Size 75cl

Price US$59.99

Abv 62

Markets US

Contact: info@viridianspirits.com

Lucid is the first genuine absinthe made with the first real grande wormwood to be shipped into the US in 95 years, says US spirits company Viridian Spirits LLC .

The company retained absinthe historian TA Breaux to develop Lucid in France. It is distilled at the Combier Distillery in Saumur in the Loire Valley, using original antique copper absinthe stills.

The spirit is described as having a strong floral aroma and a balanced finish. The cat's eye bottle is insp[ired by Le Chat Noir, an old Parisien night club.

Viridian president Jared Gurfein says Lucid will be available in "high-end retail shops and finer establishments".

Brand owner  Reh Kendermann

Produced in Germany

Size 75cl

Price £6.99, e4.99

Abv 12

Markets Worldwide

Contact (UK): richard.n.jones@btinternet.com, (rest of world) info@reh-kendermann.de

Reh Kendermann, the German wine producer, has unveiled a special-edition cuvée comprising the native German grape variety, Dornfelder, with the Burgundy grape, Pinot Noir.

The fruit is said to be sourced from selected vineyards from growers in the Pfalz in the south west of Germany, close to Alsace, with whom Kendermann has long term contracts.

It is described as smooth and rounded, with aromas of black cherry and plum, and notes of tobacco and spice.

Brand owner Pernod Ricard

Produced in France

Size 75c

Price £85, e107, US$185

Abv 12.9

Markets Worldwide

Contact: isobel.anderson@pernod-ricard-uk.com


Champagne Perrier-Jou ët has launched its 1999 vintage of Belle Epoque, which will be available in top-end outlets, specialist independents and prestige department stores.

Cellar master Hervé Deschamps says that 1999 was one of a run of exceptional years with near-perfect conditions in early September. It ended up as a blend of 49 per cent Chardonnay from Cramant, Avize, Chouill y and Le Mesnil sur Oger; 46 per cent Pinot Noir from Bouzy, Mailly, Verzy and Aÿ, and 5 per cent Pinot Meunier from Dizy, Hautvillers and Venteuil.

Brand owner William Grant & Sons

Produced in  Scotland

Size 70cl (75cl US, Canada) 

Price £60; e89, US$99

Abv 43

Markets Worldwide

Contact (UK): enquiries@first-drinks-brands.co.uk, (rest of world) William Grant & Sons info@balvenie.com

William Grant & Sons has released a limited-edition Sherry Oak 17 Year Old Scotch whisky. Balvenie malt master David Stewart crafted the new whisky. It was matured in European oak butts, bought from bodegas in Jerez, Spain, where they were used to mature oloroso sherry. Approximately 1,900 bottles are now available.

The European Parliament has voted to scrap the year-old airport security restrictions in the European Union on liquids in hand luggage .

MEPs believe the rules, which have disrupted liquor sales to transfer passengers both within and beyond the E U, "caused substantial inconvenience" to travellers and were not effective in preventing terrorist attacks.

European Commissioner for Transport Jacques Barrot reacted angrily, saying: "Europe must not lower its guard, but on the contrary reinforce its vigilance and maintain the prevention instruments it has adopted."

Liquor suppliers are worried that the problem of liquids confiscated from transfer passengers unaware of the rules is causing long-term damage to duty-free.

"I don't think we will know the impact on consumer confidence to purchase in travel-retail for a while as a large number of the people affected are the less frequent travellers, and next time they travel they are much less likely to purchase," said Ian Williams, Pernod Ricard Travel Retail managing director Europe.

Premium blends have always been the linchpin of the duty-free whisky category in the Middle East but the region's largest operator, Dubai Duty Free , has noticed a significant jump in malt sales .

Sales of malt whisky rose 32 per cent in the first half of 2007 despite DDF suffering from a lack of floor space to showcase the category properly. By contrast, overall whisky sales increased only 23 per cent, lagging behind overall liquor sales, which were up 28 per cent in the same period.

"We believe that as customers get more sophisticated in choosing their whisky they will increasingly switch from blended to single malt whiskies to highlight their status, taste and superiority over regular whisky drinkers," said DDF purchasing and research manager Sharon Beecham.

She added that DDF's recent introduction of limited quantities of The Macallan 40 Year Old was proof that regional travellers' tastes were becoming more sophisticated.

And, in another sign of the growing market for malts, Dubai-based distributor The Dead Whisky Society now provides DDF with rare, ­collectable whiskies from mothballed distilleries such as Dallas Dhu.

DDF is also seeing strong sales growth for the bourbon sector, where sales grew by nearly 35 per cent in the first half of 2007. Premium lines such as Makers Mark, Gentleman Jack, Jack Daniel's Silver Select and Jim Beam Black are driving the trend.

A higher percentage of Russian travellers have helped boost The Nuance Group's liquor business at Turkey's Antalya airport this year .

Flight changes at the airport's Terminal 1 have resulted in fewer Dutch and German passengers passing through and an increase in higher-spending Russian travellers.

Swiss travel-retailer Nuance has run a joint venture with local operator Net Holding to operate the main departure and arrivals shops at the terminal since 1998.

"We've sold more Rémy Martin XIII Cognac at Antalya this year than we have in some of our Swiss airport stores," said Nuance category manager for liquor, tobacco and food, Europe, Pascal Delmotte. "It's all down to the increased number of Russian travellers."

The strong performance of Nuance's Antalya operation has helped increase the company's European liquor sales by almost 14 per cent .

Another strong liquor performer was the company's fledgling operation at Malta international airport, which has benefited from the recent opening of a new duty-paid, walk-through arrivals concept called SWIFT - Easy Shopping!

The showing from Malta and Antalya has helped offset more challenging locations such as Stockholm Arlanda and Amsterdam Schiphol , both affected by EU security restrictions on liquids .

Canadian border shop owner Blue Water Bridge Duty Free is battling increasingly tough trading conditions by investing in a refurbished and expanded liquor area.

Work should be completed later this year and will double the size of the liquor department . A wine boutique dedicated to local Canadian icewine is also being installed.

Leading suppliers have supported the retailer with customised merchandising units, many of which will be new to travel-retail .

"For instance, Diageo is building a Diageo Malts Vision unit, which will ­incorporate a holographic, inter­­active display into the gondola," vice-president of sales Tania Lee-Hartmann told DI. "Customers will be able to touch a screen, at which point a holographic image will come out at them with the different regions of Scotland and information on malts in that area."

Prior to embarking on the project, Blue Water hired a consumer research firm to conduct exit surveys at its store to determine the identity of its customers; how they shopped; what products they were looking for; and ways to to increase their spending.

"The [research company] then briefed the design company on the results and came up with a traffic pattern and category design layout of the new renovation," said Lee-Hartmann.

Cointreau is aiming to dispel the staid, after-dinner image often associated with the high-strength liqueurs category with a new travel-retail take on its Be Cointreauversial marketing campaign.

The Be Cointreauversial - Lips promotion involved in-store tastings of the Cointreaupolitan (Cointreau, cranberry juice and lemon juice). Rolled out across stores at Frankfurt, Paris Charles de Gaulle, Amsterdam Schiphol airports and onboard Stena Line over the summer, the promotion also incorporated high visibility display units and selective promotional offers, which together often resulted in sales tripling.

Rémy Cointreau trade category manager Pascale Dubos said the target consumer for the brand was a "charismatic professional woman" in the 25-35 age group. "They are well established, know what they like, and are not afraid to go out and get it. These women are independent; they like to socialise and look for stylish drinks such as trendy cocktails, which demonstrate who they are," she added.

Dubos believes the cocktail boom in the US, UK and other mature spirits markets is transforming the fortunes of the liqueur category.

"Consumers are ready to be educated about the versatility of hard liquor as a base for mixed drinks," she said. "Travel-retail offers a stage through which we can serve this market, but we need space to demonstrate cocktails to the browsing consumer."

Diageo Global Travel & Middle East has sold almost 2 million bottles of Baileys Mint Chocolate and Crème Caramel since their launch two years ago.

The performance of the two flavour extensions helped the liqueur brand to increase overall duty-free sales by 11 per cent in the year ending June 30. Promising duty-free markets for Baileys in this period included Asia, Russia and, most importantly in terms of volume, Latin America.

"There is no sign of the ­customers getting tired of the flavours," said G T M E marketing director Nick Robinson. "They are still not available in all duty-free areas and there are still many travellers who are unaware of them.

"All initiatives therefore will continue to include the flavours and we expect further volume growth ."

The other star duty-free performer for Diageo was Johnnie Walker, which saw sales rise 8 per cent. The launch of the US$400 ultra-premium Johnnie Walker Blue Label George V earlier this year proved particularly effective in spurring sales of the less expensive Blue Label .

In terms of duty-free and travel-retail markets Europe was relatively sluggish for Diageo in the year to June 30, returning low, single-digit sales growth. In contrast, the Americas grew much faster, while forward momentum in Asia/Pacific started to slow, despite encouraging rises in super-premium sales.

Overall duty-free volumes for the company rose 7 per cent, while net sales grew 8 per cent.

• Interwinespirit India
  
  October 19-21
  
  Bangalore, India
  
  interwinespirit@gmail.com
  
• UK RumFest 2007
  
  October 21-22
  
  Pimlico, London
  
  rumfest.co.uk
  
• T ax Free World Exhibition
  
  October 22-26
  
  Cannes, France
  
  tfwa.com
  
• Vinitaly US Tour
  
  October 2 4-2 7
  
  Chicago, LA, Las Vegas
  
  vinitaly.com
  
• Alimentaria Mercosur
  
  October 30-November 1
  
  Buenos Aires, Argentina
  
  alimentaria.com
  
• St Lucia Rum and Food Festival
  
  November 1-4
  
  Rodney Bay Village, St Lucia
  
  foodandrumfestival.com
  
• 147th Hospices de Beaune Auction
  
  November 18
  
  Beaune, Burgundy
  
  beaune@christies.com
  
• IBA Congress & World Cocktail Competition
  
  November 22-27
  
  Kaohsiung, Taiwan
  
  iba-world.com
  
• China International Alcoholic Drinks Expo
  
  November 29-December 2
  
  Beijing Exhibition Centre, China
  
  ciade.com.cn
  
• Middle East Exclusive
  
  December 4-6
  
  Dubai World Trade Centre
  
  middleeastexclusive.com
  
• Wine+
  
  January 16-17 2008
  
  London Olympia
  
  wineplus.co.uk

The board of Cutty Sark International has confirmed Jeremy Parsons as the company's new chief executive.

Patrick O'Driscoll has been named chief executive and president of Malibu-Kahlúa International. O'Driscoll brings 22 years' international industry experience. He joins from Chivas Brothers, where he was commercial director.

Douglas Cruickshank is Chivas Brothers' new operations and spirit supply director. He has been production director for the company since 1992. Cruickshank is responsible for 16 malt distilleries bottling sites at Dumbarton, Newbridge and Paisley, as well as Pernod Ricard's Glasgow grain distillery and Beefeater gin production in London.

Former Somerfield wine buyer Angela Mount, whose taste buds were once famously insured for £10 million, is to join the board of Great Western Wine Company as a non-executive director.

The Thresher Group, the UK's largest specialist drinks retailer, has appointed Yvonne Rankin as chief executive. Formerly she was chief executive officer of the central and southern European division of international retailer, AS Watson. Prior to AS, she was chief executive of the Co-operative group's specialist retail businesses, responsible for more than 1,500 stores.

New Zealand producer Winegrowers of Ara has appointed Simon Beck as sales and marketing director to grow its brands on the worldwide market. Beck joins from Matua Valley Wines.

Nick Paget has joined Cobra Beer as commercial director. Adrian McKeon is now chief executive and Will Ghali marketing director.

Paget was at Beam Global with McKeon and rose to sales director for the UK and Ireland.

Southern Wine & Spirits of Nevada, part of distributor Southern Wine & Spirits of America, has made John Wittig its executive vice president, general manager. Wittig has worked for Genesee Brewing Company and for Joseph E Seagram and Brown-Forman. Most recently, he was president of Glazier's Union Beverage Company in Illinois.

Suffolk-based English cider maker Aspall has appointed John Leawood, formerly with Carlsberg UK, HP Bulmer and Courage, as key account manager for on-trade.

Philippa Haywood has joined HBJ Wine & Spirits, based in Suffolk, to manage its accounts in southern England. An associate of the Institute of Wines & Spirits, she g ained her Wine & Spirit Education Trust Diploma while working for the UK's major wine warehouse retailer, Majestic.

What has been your greatest achievement?

Getting my wife Tish to marry me and bringing up three sons. Also, successfully re launching the kiwi fruit "World's Finest" brand in Japan in the dark days - for NZ kiwi fruit - of 1989.

Have you ever had a life-changing experience?

Yes, being diagnosed while training in a World Rowing Masters crew with a major heart valve failure that needed immediate open chest surgery. Being faced with mortality made me realise how important people and relationships are. Thankfully, I've recovered fully.

What concerns you most about the drinks industry?

The perennial problem of severe price promotion activity, encouraging consumers to purchase almost solely on price rather than taste preferences, occasion plans or with a view to broadening their drinking experiences. Also the continued demonis ation of alcohol by politicians worldwide as the cause of most social ills, when education and changing cultural attitudes are the better long-term approaches.

What will be your priority at Winegrowers of Ara?

To establish the Ara brand globally as a pre-eminent wine brand from Marlborough, with a unique philosophy on winemaking and viticulture.

What's your view of the NZWG's new campaign?

Pure Discovery is a well structured and thought out campaign that builds on the other generic campaigns that come from NZ, ie tourism, All Blacks and Air New Zealand.

What's the future for Marlborough Sauvignon Blanc?

Adding some nuances and points of difference to the classic fresh zing, maybe through a bit more complexity and texture to make it accessible to an even wider range of food styles.

What's the potential of NZ Pinot Noir?

Very promising as consumers worldwide seem to want the bright but luscious flavours we're starting to produce.

What's your favourite drink?

Our Resolute Pinot Noir 2005.

reports citing the health benefits provided by the high number of antioxidants in pomegranate fruit, two companies are now importing wine made from pomegranates into the US. Aiko Importers, in Charleston SC, imports Tree of Life pomegranate wine in a semi-sweet and semi-dry version from Armenia. A dessert-style from Rimon Winery in Israel and a dry and a port-style pomegranate wine (both kosher) are due to be imported into the US later this year or early in 2008 by Monterey-based Cannonball Wine & Spirits.

You can count on E&J Gallo to latch on to a good thing when the market is right and currently one of the hottest imports into the US is wines from Argentina.

For the first six months of 2007, Argentin ian bottled table wines were up 23 per cent by volume and 43 per cent by value. Including bulk wines, the gain by volume was a whopping 92 per cent and 52 per cent by value.

Gallo has been looking around in Argentina for some time and has now signed an exclusive agreement to bring Gascón Malbec, made by Bodegas Escorihuela, to the US market.

Gascón has made the trip to the US before with Pasternak as the importer. However, Gallo has put the wine in a new package and says it is putting some real marketing muscle behind the brand.

Gallo spokesperson Michael Heintz said the company is committed both to Argentina as an emerging player on the world wine market, and to Malbec. He added that Ameri­cans could take to Malbec in the same way they took to New Zealand Sauvignon Blanc.

Barring a late season shift in weather, California's 2007 wine grape harvest appears to be textbook-perfect and should wrap up by the end of October, according to reports from the vineyards.

Due to a smaller berry size than normal, the crop appears to be lighter than expected - more in line with the 2006 harvest of 3.1 ­million tons.

A record -breaking 3.7 ­million-ton harvest in 2005 led to an oversupply of wine that is only just ­beginning to come back into balance - much to the relief of the whole industry .

Growers and vintners are pleased by the size of the 2007 harvest and the smaller grape size is also a positive sign since the smaller grapes are thought to produce more intense wine.

Nick Frey, president of the Sonoma County Wine Grape Commission, said when grape growers find nothing to complain about, it's very unusual.

H arvest conditions are "close to ideal ," he said.

The California Wine Institute and the California Travel and Tourism Commission have joined forces to promote the state's wine and cuisine.

They are hoping to lure a specific segment of travellers away from France and other international wine and food destinations.

The five-year promotion will feature a national tele­vision campaign which will be launched this winter and feature Governor Arnold Schwarzenegger and wine and culinary celebrities ­promoting the produce California has to offer.

There are about 2,300 wineries in California, producing some 90 per cent of all US wine. California also has nine of the top 10 US agricultural counties.

"California is the most visited state in the US for food and wine-related activities," said CTTC executive director Caroline Beteta. "Wine and food have moved from being a mere vacation activity to a significant part of the aspirational California lifestyle, becoming a driver to visitors choosing a destination."

According to the Travel Industry Association, 17 per cent of American leisure travellers, or 27.3 million people, have engaged in culinary or wine-related activities while travelling.

These travellers are well-educated and more affluent than other US travellers. They cross most age groups and take 6.8 domestic and international trips per year - 15 per cent more than the average US leisure traveller.

• A Gallup Poll of 1,000 adults aged 18 and over revealed that 64 per cent consume some form of alcohol beverage. Of those, 40 per cent said they usually drink beer while 34 per cent identified wine as their drink of choice. Some 22 per cent preferred spirits. The remaining 4 per cent liked them all.
  
• Bacardi has launched a major advertising campaign for Grey Goose vodka. The campaign began in conjunction with the US Open Tennis Tournament in September. Grey Goose is a promotional partner in the tournament and the advertisements will appear during television broadcast coverage on several cable channels as well as in various print outlets. The ads depart from the standard bottle shot and cocktail images to focus on the lifestyles of Grey Goose consumers.
  
• The US wine market was up 5 per cent through June, compared to the first six months of 2006, according to the Gomberg-Fredrikson Report. Imported wines continued to gain market share, with gains through June of 13 per cent, including bulk imports. Bottled imports were up 8 per cent. US wine exports, mainly from California, gained 12 per cent in the first six months of 2007.
  
• Sazerac Brands, a premium spirits importer and distributor based in New Orleans, has rolled out Stiletto Vodka from Russia. Priced in the super-premium range, Stiletto also comes in chocolate, vanilla and mint flavours.

• Old Forester's 2007 Birthday Bourbon honours George Garvin Brown, the founder of Old Forester, born 161 years ago on Sept 2. The Birthday Bourbon was bottled at 94 per cent proof and barreled in 1994. It retails at between US$35 and US$40. Brown is said to be the first distiller to bottle Bourbon rather than shipping in barrel. Old Forester is owned and distributed by Brown-Forman.
  
• Firestone Vineyard and winery in Santa Barbara County on California's Central Coast has been sold to the Foley Wine Group. The Foley group, owned by William Foley, owns a number of small estate wineries, including Lincourt Vineyards, Foley Estates Winery and J Carey Cellars, all on the Central Coast. Foley said other acquisitions were in the works, including wineries in Sonoma, Napa and Oregon and Washington state.
  
• Just in time for Halloween, a vodka with pumpkin pie flavouring has arrived. Pumpkin Pie Artisan vodka from Modern Spirits, Los Angeles, is said to be based on a secret pumpkin pie recipe and is described as "ideal" for dessert cocktails. It is believed to be the only pumpkin-flavoured vodka on the market. Suggested retail price is US$43.99 for a 75cl bottle.

Was it a French terroir snob who recently said that "Australian regional wines are too often jammy and overripe"?

No , that was St Hallett's Stuart Black­well, one of four Australian and New Zealand winemakers on what they call an Antipodean Adventure to bring the message to the US that there is terroir Down Under.

The seven-city tour began in San Francisco and included, besides Blackwell - Andrew Hardy, general manager of Petaluma wines; Paul Smith, winemaker at Knappstein; and Ben Glover, winemaker at Wither Hills in New Zealand.

All the wineries are owned by the Beam Wine Group - also the owner of Geyser Peak in California - which has apparently been converted to the concept of terroir - wines from a place, rather than "wines from no place", as Hardy said.

It could also be that the Beam ­marketing department is aware that Australian imports into the US, especially in the lower price ranges, have stalled.

For the first six months of 2007, Australian table wine shipments to the US were up a sluggish 2 per cent.

Other key points covered by the winemakers were that there is plenty of room to plant more Sauvignon Blanc in New Zealand and the US market has finally discovered Riesling, of which Australia has plenty.

No one expects Australia to walk away from the "good value" wine market in North America, but it seems to have learned there is another side to the coin.

Sean Harrison, master distiller for Plymouth Gin, has moved to the US on a mission: "People have forgotten how to drink gin. I want to bring it back."

Harrison held a series of tastings for bartenders and media representatives in New York, Miami and San Francisco to drive his point home.

Harrison, of course, would prefer that drinkers make Plymouth their gin of choice, but he poured other gins at the tastings to highlight various flavour profiles.

He pointed out that there are only seven botanicals in Plymouth, out of a possible 120 or so flavourings sometimes used in gin production.

The seven used in Plymouth gin, which is owned by V&S, are juniper berries, angelica root, orange peel, lemon peel, cardamom pods, orris root and coriander seeds.

He also had some practical advice for US bartenders on that classic gin cocktail, the martini. "Martinis should always be stirred, not shaken, regardless of James Bond," he said.

Napa Valley winemaker Randy Dunn has sent an open letter to trade and consumers calling for an end to high alcohol wines.

Dunn, formerly of Caymus Winery and who now runs his own winery on Howell Mountain, argues that high alcohol wines destroy any sense of terroir.

"The subtleties of terroir have been melted together in a huge pot called 'overripe' or the vogue 'physiologically mature' grapes," he said.

"Gone are the individ­ua­lities of specific regions, replaced by sameness - high alcohol, raisiny, pruney, flabby wines."

Dunn has called on wine consumers to speak up and reject wines with 15 or 16 per cent alcohol.

"These new wines are made to taste and spit, not to drink," he added.

He also urged consumers in restaurants to ask for wines that are below 14 per cent.

Th is tactic can, however, backfire on US wines as the ­sommelier usually comes back with a French or New Zealand wine.

Dunn, who made Caymus famous with its Special Selection Cabernet Sauvignon during his tenure from 1975-1985, is the first winemaker of his stature to speak up on the controversial subject of high alcohol wines.

• Palandri Wines, the Margaret River winery, has appointed Svarog JSC as it s importing agent for Russia.
  
• Formula One world champion Michael Schumacher is to become Bacardi's global social responsibility ambassador, starting in January with a "don't drink and drive" message.
  
• Constellation Europe has invested £3 million in a pre-Christmas marketing campaign for its Californian wine brand Robert Mondavi.
  
• Grosvenor House saw the end of an era when the London hotel's barman Joe Creighton retired after 42 years service.
  
• Moreno Wines has been appointed the exclusive UK agent for Italian Prosecco producer Mionetto.
  
• Benromach has produced Latitude 53º , a single cask bottling of its Speyside single malt whisky, to commemorate its partnership with the Clipper 07-08 Round the World Yacht Race. Visitors to the benromach.com website can win a bottle by guessing how long the 'Glasgow: Scotland With Style' clipper will take to complete the journey.
  
• The Patrón Spirits Company has finalised a partnership with Prague-based Kratochvílovci to distribute Patrón tequila and Pyrat rum in the Czech Republic.
  
• Carlsberg has entered into a joint venture with state-owned Hanoi Beer & Beverage Corporation (Habeco) to build a brewery in souther Vietnam. Carlsberg and Habeco will each hold a 29 per cent stake.

, world number 12 and former US Masters and US PGA Champion is making his fourth appearance in the Johnnie Walker Classic, Asia's premier luxury golf event, which is being played in India for the very first time at the DLF Golf & Country Club, New Delhi from February 28 to March 2.

The International Wine Challenge, which celebrates its 24th anniversary as the largest blind tasting in the world, attracted 9,358 entries this year.

It took 465 winemakers, merchants and writers, alongside a panel of more than 40 Masters of Wine from around the world, two weeks to judge this prestigious competition. Up to 1,500 wines were assessed daily.

The nine top wines were revealed at a glittering awards dinner in London.

Arguably the biggest winner was New Zealand's Bald Hills Vineyard, which picked up two of the coveted Champion Trophies (Champion Red and Champion Sustainable). The latter was one of three Champion awards introduced this year as part of the IWC Planet Earth Awards , which honour producers who have made a commitment to the environment.

The other green winners were Hans Tschida Sämling Trockenbeerenauslese 2005 from Austria (Champion Organic) and Champagne Fleury Millésime 1996 (Champion Biodynamic).

Also new this year was the Champion Sake Trophy, which went to Tsurunosato 2005 from Kikuhime & Co - one of more than 200 sake entries this year.

The IWC also honoured some of the trade's best-loved and most respected figures. Bordeaux negociant and producer Jean-Marie Chadronnier was handed a Lifetime Achievement Award, and Chilean biodynamic pioneer Alvaro Espinosa was declared IWC Personality of the Year.

Other Champions were: Beaune Clos des Mouches Premier Cru 2005, Chanson Père et Fils, France (White); Charles Heidsieck Champagne Charlie 1981, Champagne P&C Heidsieck, France (Sparkling and Daniel Thibault Trophy); Vin Santo di Capezzana 2000, Capezzana, Italy (Sweet); and Lustau Almacenista Fino del Puerto Cuesta, Emilio Lustau, Spain (Fortified).

Barolo Essenze 2001, Terre de Vino won the James Rogers Trophy for best wine in its first year of production.

Francisco Albuquerque, winemaker for The Madeira Wine Company, scooped the Len Evans Trophy for ­consistency over the past five years.

For the full list of results visit: internationalwinechallenge.com

New York-based Castle Brands has asked the man who launched Absolut into the Caribbean and Latin American markets to do the same for its Boru vodka brand.

Castle has appointed Miami-based Godoy Wine & Spirits, headed by Raul Godoy, to handle Boru along with Clontarf Irish whiskey, Brady's Irish Cream and the Celtic Crossing liqueur brand.

Godoy launched Absolut into the same market in 1978 through his Vinos Mundiales company after beginning his career with Seagram 10 years before.

The move is the first major step by Castle Brands outside its core markets of the US and Europe.

Godoy said he thought the Castle portfolio would benefit from his company's "extensive distributor relationships in the Caribbean and Latin America".

• Molson Coors has formed a division to launch speciality and premium beers into the North American market. AC Golden Brewing will take a slow-build approach to brands, similar to th at of Coors with Blue Moon Belgian beer.
  
• Strong growth for Jack Daniel's in the UK, France, Australia, Asia and Eastern Europe helped Brown-Forman record a gross profit increase of 12 per cent, to US$42 million, in the first quarter, to the end of July. Double-digit growth for Southern Comfort in the UK, Africa and Germany offset a decline in the US.
  
• Suntory is to roll out distribution of its whisky brands in Russia after launching in the west of the country last year. The Japanese group introduced seven brands through distributor Veld-21 with the aim of grabbing between 10 and 15 per cent market share by 2010.
  
• Carlsberg has entered into a joint venture with state-owned Hanoi Beer & Beverage Corporation (Habeco) to build a new brewery in southern Vietnam. The Danish multinational was recently appointed as the approved strategic foreign investor in Habeco which is to be privatised in the near future.
  
• Beam Global (India) has added Maker's Mark bourbon to the range of spirits it sells in the Indian market. Managing director Harish Moolchandani said the launch was "the first of many extraordinary initiatives designed to tap the potential of the Indian market". Beam's Teacher's brand claims market leadership in Scotch in India .
  
• Russian vodka producer Synergy is lined up for the industry's first stock market share issue. The company will sell a 19 per cent stake in November on an as yet unconfirmed stock exchange.

Pernod Ricard USA has launched an advert­ising campaign to discourage drink driving, under-age consumpt­ion and binge drinking.

The campaign draws attention to many of the excuses associated with drink-related antisocial behaviour and includes press advertising, financial backing for selected organisations involved in alcohol issues, and edu­cational tools for parents and teenagers.

A PR element of the campaign is being fronted by Dr Alfred R Mele, a professor at Florida State University and author of Self-Deception Unmasked, who has contri­buted a quiz on a new website, acceptresponsibility.org.

Pernod Ricard USA chief executive Alain Barbet said: "Although the vast majority of adult Americans who drink do so in moderation, and the incidence of under-age drinking is declining, we have an obligation to fight against irresponsible consumption.

"Our new campaign focuses on recognising and overcoming enabling excuses ."

Plans to ban multi-buy price promotions in Scotland could lead to cross-border shopping into England and Northern Ireland, the head of a UK trade organisation says.

Jeremy Beadles, chief executive of the Wine & Spirit Trade Association, said plans by the Scottish government to ban multi-buys from early next year, would "undoubtedly" bring about such a situation .

"If you get interference in the marketplace you get unintended consequences of your actions," said Beadles.

The Scottish Government also wants to "stop shops displaying beer all around the store or cross-merchandising wine in the pizza counter to entice impulse buyers to buy and drink more alcohol", said justice minister Kenny MacAskill, in plans scheduled to begin in 2009.

Dutch brewer Grolsch has expanded its global footprint with distribution partnerships in Australia and Kazakhstan.

The Australian deal with Premium Beverages will see Grolsch sold alongside Budweiser in the Australian market.

Premium was set up in 2002 as an 80-20 joint venture between Australian brewer Coopers and Budweiser agent American Beverage Distributors.

Rob Snel, president of Grolsch International, said: "The sales performance of Premium Beverages over the past four years is impressive.

"For Groslch this is an important step towards achieving our strategic goals in one of our key international markets."

Premium said it was aiming to become the leader in the premium beer market with a limited range of complementary brands.

Managing director Bruce Siney said: "The premium segment is showing a very healthy double-digit growth.

"With the Grolsch brand in the portfolio we are better-placed to benefit from the growth opportunities in the market.

"We will have a more attractive offer for the consumer and the customer."

In Kazakhstan, Grolsch has signed a long-term licensing deal with Efes Karaganda, a subsidiary of Turkish brewing giant Efes.

Karaganda will brew the Amsterdam Navigator brand which it previously imported through Russia.

Nigeria has overtaken Ireland as the number two market for Guinness, behind the UK.

Brand owner Diageo said fresh distribution for the beer brand in Korea and India this year showed how the global footprint for Guinness was moving from its traditional English speaking territories. Sales across Africa were up by 17 per cent in the financial year to June 30, driven by a new TV ad campaign.

Stuart Fletcher, president of Diageo International said Nigeria had surpassed Ireland in the last three months of the year. He added: "I'd love Ireland to be growing and for it to be a bigger challenge for Nigeria to be chasing.

"We had a tremendous performance not just in Nigeria but in every single market across the sub-Saharan continent, from Kenya to Ghana to Cameroon. The campaign is having a huge effect on consumer attitudes towards Guinness." He added that the increase d growth had been accom­panied by price increases to give the brand a more premium position.

Diageo chief executive Paul Walsh added that non-core markets were "the future of the brand".

See the feature on page 61.

European drinks producers are facing spiralling raw material costs, raising fears that export prices may have to rise.

Adverse weather conditions have affected cereal crops in northern Europe, and the shortfall could add to a rising cost base that has already seen significant pressure on packaging materials such as glass and aluminium.

SAB Miller's Czech subsidiary Plzensky Prazdroj said the cost of Czech barley and hops was reaching "unsustainable levels", and that a beer price rise of 6 to 8 per cent would result later in the year.

Managing director Mike Short said: "A ton of Czech malting barley is approaching double last year's price.

"To maintain current beer prices any brewer would have to compromise quality.

"I would be shocked i f the current situation in raw materials doesn't have a similar impact on beer prices right across Europe."

British producers have also been predicting similar prices after floods in June and July devastated large parts of the farming industry.

David Wigham, portfolio activation director at US brewer Coors' UK subsidiary, said: "The global supply and demand for cereal stocks was already creating upward pressure on prices before this year's floods. In many cases prices are now double the level paid by buyers for the 2006 harvest.

"The brewing industry is experienc ing significant raw materials cost rises, which will ultimately need to be passed on to customers."

Wychwood Brewery managing director Rupert Thompson also said he expected prices to increase. "There's no way that the brewers are going to be able to absorb it," he said, "and consumers are expecting it, as they are with other categories like bread and milk. If beer didn't go up it would look very odd."

The Giesen family has appointed Rabobank to ­handle the sale of its Marlborough winery, but says it will continue with the business if the price isn't right.

The company was founded 26 years ago by three brothers Theo, Alex and Marcel, and there have been "unsolicited approaches" for the business in recent years, with increased interest this year.

General manager Jim Veitch said: "There is potential for further expansion of the business, with extension into new markets and ­product range.

"On a regular basis we receive enquiries from new markets such as China, France and Sweden. The Canadian market also offers significant potential."

"The opportunity to purchase a company with Giesen's track record is limited in the New Zealand wine industry." he added.

Giesen exports most of its current 350,000-case annual sales, with Australia, the US and UK the main markets.

Caribbean spirits producer Angostura has announced ambitious plans for growth in the US following its acqui­sition of the country's biggest spirits distillery from Pernod-Ricard USA in June.

Angostura is to establish a US headquarters at the former Seagram distillery at Lawrenceburg, Indiana. The company said the move would make it the largest independent spirits producer in the US and also claimed it would significantly improve the supply chain for its Angostura rum and bitters brands, Caribbean Club rum punch, Scottish Leader Scotch, Hine Cognac and Blu vodka.

Lawrence Duprey, chairman of Angostura parent company CL Financial, said contract production would be a key part of the facility's future. "Our goals are to aggressively grow our presence in the US," he said.

"An industry trend has been to divest manufacturing capacity and concentrate on brand equity.

"We plan to lure business to Lawrenceburg and develop long-standing relationships with compan­ies wishing to acquire better quality and service for both distillate and packaging."

The plant originally formed part of Pernod-Ricard USA's sell-off plans after the acquisition of Allied Domecq. It had been slated for closure, which would have resulted in 400 job losses, but Angostura said its intervention has saved around 150 jobs.

No brands were included in the sale of the distillery which had been used to make Seagram's gin and vodka and Seven Crown whiskey.

Duprey added: "We have engaged engineers and surveyors to inspect the operation of the plant and their indications are that it has been maintained and operated at a higher standard than most other distilleries in the US."

Russian Standard vodka is one of the first high-profile brands to confirm its entry into the Indian market since the country abolished its federal additional duty on imported spirits.

Russian Standard's Platinum brand will be handled by the Narang Group in Indian metropolitan areas, including Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Goa.

Narang is a logistics, food distribution and marketing company whose existing brand links in the Indian market include Red Bull, Evian and Illy coffee.

Russian Standard founder Roustam Tariko said: "Narang is the perfect partner for Russian Standard because of its leading portfolio of premium brands and we are confident Narang will help Russian Standard capture the Indian market."

Russian Standard was founded in 1998 by Tariko - a billionaire who is Russia's biggest supplier of consumer credit. The brand claims to have 60 per cent share of the premium vodka market in Russia and is available in 40 international markets .

Czech brewer Budejovicky Budvar will be the next state-owned drinks producer to be privatised.

Budvar will follow Sweden's Absolut into private hands when the Czech ministry of agriculture reveals the sell-off process later this year.

InBev and Anheuser-Busch are being tipped as potential bidders, although Carlsberg has money to play with following its share restructure earlier this year.

Budvar would also be a good regional fit for Heineken in central Europe .

A sale to InBev would create a powerful portfolio of international lager brands, with Budvar joining Stella Artois, Beck's and Brahma in the InBev portfolio.

For Anheuser-Busch, an acquisition would conclude long-standing trademark disputes around the world over the use of the names Bud and Budweiser, reported to cost Anheuser US$25 million a year in legal fees.

Beer consumption in the BRIC countries increased by almost 50 per cent over the past year, a series of new reports from Canadean suggest.

The research organisation said India showed the most potential, with sales almost doubling since the start of the century, with lower taxes and improved distribution channels bringing the biggest growth in northern states of Punjab, Haryana and Rajasthan.

Canadean said the Indian market remained tuned into domestic brands, with Foster's the only international beer to make any big impression.

But that could all change with Budweiser's decision to enter the market earlier this year.

The report predicts growth of 4 per cent in Brazil for 2007, with consumption driven by competitive prices and packaging innovation.

In Russia, the introduction of 25cl and 50cl PET bottle beers by leading brewers is driving sales of discount beers in regional markets.

Johnnie Walker has its sights set on stealing the top spot in China's Scotch whisky market from Chivas Regal.

Diageo chief executive Paul Walsh claimed Johnnie Walker had closed the market share gap on its Pernod Ricard-owned rival by 6 per cent, with growth in net sales of 61 per cent for Black Label in the year to the end of June.

Pernod Ricard's estimates for the same period put Chivas Regal growth at between 10 and 20 per cent and managing director Pierre Pringuet recently admitted a slowdown towards the end of the year, following some 50 per cent growth in 2005/6.

Diageo has also closed the gap in Thailand, where Chivas reported a "significant decline" on the back of the country's political problems.

Diageo claimed its whisky sales in Thailand were up 4 per cent by volume and 21 per cent by value over the year.

Walsh said: "We intend to be number one in China one day. I don't know when that will be, but we continue to close the gap. In all the other emerging markets we are number one.

"We have been progressively investing more in Asia Pacific in the past few years. This is going to be a high growth region for us."

Pringuet said Chivas Regal continued to see strong growth in Malaysia, Vietnam, Singapore and Indonesia.

He said: "You could say we created the whisky market in China with Chivas. There is certainly a slow decline of the rate of growth. It's difficult to say what the reason is, but it could be that we had a geographical expansion in China [in recent years] covering large cities and eventually you have to stop that. "