Created by Mathieu Clausel, bar manager at the Glenmoriston Town House Hotel in Inverness, the first bar in Scotland to be supplied with a magnum of Rémy Martin's Louis XIII Cognac. The cocktail is reckoned to be Scotland's most expensive at £200 a time

Magnum Royal

1 shot Louis XIII Cognac

Dom Perignon 1999 Vintage Champagne

Raspberry liqueur

1 sugar cube

Method: Soak sugar cube in raspberry liqueur and place in a martini glass. Add the Cognac and top up with Dom Perignon

Devised for Tequila Patrón's Simply Perfect party, in London in October. Master distiller Francisco Alcaraz and chief operating officer John McDonnell joined 200 guests from the UK bar scene to mark Patrón's progress worldwide and the launch of the US$499 ultra-premium Gran Patrón Burdeos

Patrón Saint

2 shots Patrón Reposado

2 shots mango, orange and cinnamon-infused sugar syrup

3-4 kumquats

Splash of citrus

Method: Muddle the kumquats, add all ingredients, shake and strain into a martini glass.

== l Wine Report 2008 ==

lovethatwine.co.uk, which claims to be the UK's leading independent resource for wine drinkers, is to expand its services to Facebook and Google. Its pilot on social networking site Facebook has attracted 200 members, says the company. For the iGoogle daily wine widget, lovethatwine has created a "recommended wine of the day" that will be sent to millions of desktops worldwide. Users opt in to the daily wine on their home pages. The choice is based on seasonal, topical and user recommendations. Next year lovethatwine says it plans to use mobile or cell phone technology and PDA platforms to extend the message.

To many it appears as a sharp, eggy aroma and a wine that's subdued and light on flavour - an irritation. To some though, it's the cause of headaches, sneezing and even asthma attacks in the worst cases.

Sulphur dioxide (SO2) is routinely used as an anti-oxidation agent during the winemaking process. It usually remains chemically bound after bottling but on occasion, and particularly in wines in their first couple of years, it breaks free of its chemical moorings and that's when it causes problems - a phenomenon increasingly recognised in young wines under screwcap.

l Basset opens Terravina

Well-known Master of Wine , master sommelier and founder of the Hotel du Vin hotel chain, Gerard Basset has opened his own hotel in southern England's New Forest .

Basset - who also found time to write Wine Experience, a definitive book on wine tasting - describes Terravina, close to the port of Southampton, as "a boutique hotel in the country".

My desitination was the Uco Valley with its high-altitude vineyards and I anticipated the comfort of a brand new Jeep, air conditioned, CD player, leather seats - the kind of regal tour one plays down to others back home in the UK .

They appeared out of nowhere, a Gaucho and three horses. "Didn't we tell you we are going on horseback?" My horse looked like he had just galloped here from Peru. I questioned his demeanour and the reply came : " Don't worry . He never runs, he is too lazy."

Drinks analysts looking at the rum category have for years shaken their heads sorrowfully as rum never quite achieved its potential. "Always the bridesmaid, never the bride" would be an accurate summation - until now.

In the decade from 1996-2006, rum sales increased in volume by 3.5 per cent, according to IWSR statistics, outperforming the overall spirits market at 2 per cent. This rise has accelerated in the past two years, with rum up by 5 per cent, again faster than the overall spirits market. Specifically this growth is coming from the premium (aged) sector which is showing double-digit growth. To use one brand as an example: in 1993, Havana Club sold 400,000 cases. Last year sales topped 2.8 million 9-litre cases and Pernod-Ricard has set a target of 5 million by 2013.

"What you are seeing is white rum in decline in many markets while premium aged rums are growing in the UK, Italy, Spain, Germany, US and Canada," says Peter Martin, regional manager, Europe, for Jamaica's J Wray & Nephew. "Spain, for example, was 70 per cent white, 30 per cent dark a decade ago. Now those figures have been reversed. In any market where Bacardi has declined, premium aged rums are growing."

Late starter

What is behind this switch? "Aged rum has done it because white cannot," says Martin. "White is fighting vodka on price and has become another white spirit. We are putting rum elements into the mix and creating something new with a new generation."

At Angostura, marketing manager Brian Woods sees it as part of a general upward trend among consumers. "The age of connoisseurship has arrived for rums - a trend we have only seen previously in Scotch and Cognac," he says. "There's a lot of innovation just now and with the introduction of premium aged rums, consumers are more knowledgeable about rum and are demanding challenging aged rums for both sipping and mixing.

"For consumers hitting their late 20s and early 30s there has been nowhere for them to go. They don't want to be seen to be drinking what they were 10 years ago. Scotch is still a bit challenging, but rum - and especially aged rum - fulfils their emotional needs as well as their functional requirements."

What was the tipping point? "A combination of things," says Marc Beuve-Mery, managing director of Havana Club International. "There is an overall global trend to premium, but rum was late into this. Even now, less than 25 per cent of sales are premium, which is considerably lower than Scotch. Therefore, there is potential. There is no reason not to be premium. In fact, consumers think rum should be more premium than vodka."

It's a thought but there have been years of false starts. A belief that Bacardi's dominance could never be challenged and negative associations with old-style, dark navy rum meant rum as a category had begun to believe its own negative hype. Aged rums existed but there seemed the same sense of weariness felt by whisky markete rs in the UK, or (until recently) their colleagues in gin. Rum may be good, but people wouldn't try it. It was a niche and would remain so.

Winning hearts and minds

Maybe it just needed outside influences to change the mindset. "I think consumers are embracing the appeal of relaxed Latin values in today's hectic world," says Jonathan Welch, who looks after Nicaraguan brand Flor de Caña in Europe. "Lack of personal time, desire for discovery and shared indulgence are driving our consumer choices - kicking back with a Caribbean rum hits all those buttons, and unlike malt whisky, you don't feel as if you're bound by rules of engagement with the category."

Mindset, driven conceivably by increased tourism, may have played its part, but maybe rum simply needed investment. "I think a lot of credit should also be given to Havana Club, wh ich w as probably the first rum brand to develop and invest in the premium rum category," says Andreas Redlefsen at Elements Eight. "It is this, plus increased investments from other rum companies, specifically in the aged/gold sector, which has helped aged rum to come into its own."

It has done so at the expense of other spirits, most noticeably blended Scotch in Spain, while it is making inroads against brandy in Mexico and pisco in Chile. "Aged rums are offering consumers an alternative," says Redlefsen. "Aged white rums are giving vodka drinkers the ability to switch. Gold rums offer bourbon and whisky drinkers an alternative as well."

There is a bullish confidence at work within the rum category. "I think malt whisky is in danger of disappearing up its own retort in its quest for differentiation between distilleries," says Welch. "There are only so many cask styles and finishes consumers are willing to try before they are pigeonholed as obsessives. There is definitely a trade-out momentum within brown spirits from whisky to rum."

Sense of identity

Rum is clearly making a significant jump from "product" to "brand". "I saw the same phenomenon with tequila," says Havana Club's Beuve-Mery. "There were no brands at first and then you got companies, both big and small, trying to be consistent with the product, selling at a consistent price with a consistent image and the sales message was clearer for the consumer."

This has necessitated a change in thinking ,

as Martin outlines. "We were guilty of being the marketing arm of the Jamaican tourist board, whereas the key is in the brand," he says.

"We used to bring in rums for the Jamaican community, but to entice people we had to have something credible so we started promoting the estate, which gave credibility. We don't want to be a Jamaican rum called Appleton, but a rum called Appleton which comes from Jamaica." It is a subtle shift that does not mean brand owners are turning their backs on heritage as part of the marketing mix.

"Our heritage means more than geographic origin," says Richard Seale, whose family owns the Foursquare distillery in Barbados. "We can actually show how the heritage is reflected in the style of the rum. Pot still is a big part of our style because, being relatively poor, our industry came late to the continuous still. Contrast that with rums from Puerto Rico where the pot was abandoned. Contrast the role of heritage in our rums with Morgan or Malibu."

This emphasis on roots is also being explored by Havana Club. "It's for good reason I am based in Havana," says Beuve-Mery. "It might not be the easiest place to do business, but it is vital for understanding the brand. We believe in authenticity."

But Redlefsen was wary of overplaying the heritage card. "I believe that heritage is important, but that it is often over emphasi sed. It does signify experience and denotes a certain 'quality' aspect . However, it can easily be invented and isn't the be-all and end-all of a brand. A brand with no heritage can be just as successful - look at Grey Goose."

Spreading the message

The fact remains that premium aged rum has global reach. How, though, do firms promote their brands to very different markets? "Our strategy varies in terms of the brand variants," says Angostura's Brian Woods. "The UK is much more a white and gold rum market than Spain, where añejo and gran añejo variants are more important. Our portfolio approach therefore varies from market to market."

The situation is similar for Havana Club. "In a mature market such as Spain we lead with 7 Year Old," says Beuve-Mery. "In addition, we compete against different brands in different markets. In Germany we fight against Bacardi; in Italy it is Pampero; Spain it is Cacique, Barcelo and Brugal; in Mexico it is Appleton and Bacardi; in Canada it is Appleton."

Appleton, on the other hand, is sticking to a strategy that has seen it establish its V/X brand in top-end bars globally and then slowly seed it into the off-trade. For Martin, education remains key. "Until we started, no one had been on a rum course. Now everyone is doing something like it."

This proactive work in an increasingly influential global on-trade doesn't cover up the fact that many of the opinion-forming rum brands are owned by small producers. Can they compete long term with the big boys?

Martin says: "Interestingly, the big players are playing catch-up, and it's not that easy. Diageo doesn't seem to have decided what its rum strategy is, Bacardi is suffering and isn't playing in premium, while Pernod-Ricard is playing the discount card. You can't invent a rum. Bartenders want credibility and heritage." [Both Bacardi and Diageo declined to participate in this feature.]

"It is almost impossible for us to develop a strategy against the major players because a realistic strategy needs major funds," says Seale. "We believe we have a good story and the challenge is to communicate the story. The key difference when we communicate is that we tell the story of rum. We educate and inform. Hype, by contrast, needs a sustained bombardment at all levels and the majors have the resources to hype their brands, but education is the best weapon against the hype."

So is distribution. The smaller firms are at the mercy of needing to build an often fragmented selection of agents - it is noticeable that Angostura acquired its own distribution network before it started to build its brands.

Goodwill is one thing, ensuring the brand is available globally is quite another. Beuve-Mery predict s that in a few years there will be a couple of strong international brands, while others will be local. With E50 million being invested in a new distillery and ageing facilities in Havana you can see what Pernod-Ricard thinks one of these majors will be.

It might be finally walking up the aisle in the white dress, but you get the feeling that the rum story is far from over.

The US brewing industry presents two very different faces to the world's export markets . On the one hand are the multinational corporations with international brands, increasingly using licensed brewing to keep a brake on costs. On the other is the craft brewing movement, parachuting a few pallets of increasingly diverse brews into select international markets.

The latter ha s given US beer some extra credibility in world markets in the past few years, but the former still account for the real volume. US Treasury figures show a drop of 4 per cent in US beer exports in 2006, to 3.8 million barrels. Exports have dropped 18 per cent since 2000, though this doesn't necessarily reflect a fall in sales of US-origin brands, as brewers increasingly switch to in-market brewing in countries where brands are achieving a level of maturity.

Global leader

At the top of the tree sits Anheuser-Busch with Budweiser, one of a handful of truly global beer brands. The company claims to have sold 22.7 million barrels of its beers on international markets in 2006, and has more than doubled its barrelage from owned operations, exports and licensed brewing in the past five years.

Despite the branding challenges posed in some markets by the long-running legal battles with the Czech Budweiser Budvar brand, Budweiser performs strongly in many of the countries in which it is sold.

Bud's brand personality differs between markets: in Canada it's a mass-market product, but in Russia the brand is sold as Bud to high-end restaurants and bars in a licensing deal with Heineken Russia.

It outsells every other beer brand in Canada, even though it's produced under a licensing agreement with InBev's Labatt, and has the Canadian brand and Stella Artois as stablemates . Sales of Bud Light - actually the world's biggest beer brand on the back of US domestic sales - were up 38 per cent in Canada in 2006. A-B's largest export market is Mexico, where Bud Light and Budweiser are distributed through Modelo, in which A-B has a 50 per cent equity stake.

Like rival brewing giant SAB-Miller, A -B has been keen to establish a presence in China, where it invested in the Tsingtao brewery as long ago as 1993. It now has 14 of its 15 overseas company-owned brewing operations in China (the other is in London). China is also home to eight of A-B's 24 overseas field offices, and has a network of 200 independent wholesalers, many of which stock Budweiser as a beer exclusive in their portfolio.

India represents the most significant new market for Budweiser. Crown Beers India - A-B's joint venture with Crown International - began local brewing of Budweiser in the south and west of the country in July. Stephen Burrows, chief executive and president of A-B's Asia-Pacific operations says: "As the Indian beer market continues to experience tremendous growth, our goal is to make Budweiser the leading brand in the premium category." The plan is to expand distribution outside its current footprint of hotels, stores and bars in Andhra Pradesh and Mumbai.

Selling the American brand

The UK is the largest European market for A -B, and Budweiser's US background remains key to its marketing strategy, despite the fact the brand has long been brewed in the UK. Vicki Kipling, UK marketing director for A -B Europe, says: "It is important we focus on communicating our core brand attributes of quality, style and American heritage to achieve stand-out ."

While Budweiser is targeted at 18 to 34-year-old men, sister brand Michelob is aimed at older 25s to 45s, and with a much narrower profile. Kipling says: "They are professional city workers employed in the legal and financial sectors. They are willing to spend more on a brand that complements their lifestyle."

Michelob returned to US brewing, an original all-malt recipe and its iconic tear-shaped bottle in the UK earlier this year. "We are positioning it as an aspirational brand," says Kipling. "It's our Rolls-Royce."

Fierce competition

With its US heritage recognised in the second part of the company name, SAB-Miller is only just behind A-B in the world brewing stakes, but increasingly less visible as an American company. With more than 200 brands in its portfolio, its strategic focus is more about strong local and regional brands than as a global big hitter.

But there are international pockets of Miller brand strength. A new half-litre bottle has driven sales of Miller Genuine Draft in Russia, resulting in growth of 21 per cent for the brand in the group's last financial year. MGD is also experiencing strong growth in SAB's home market, South Africa, while a 2006 relaunch in Panama has given SAB's presence in the premium beer segment a significant lift.

Molson Coors was formed in February 2005 in a US$3.4 billion merger between the Colorado-based brewer and Canada's Molson. Coors Light is the second biggest brand after Budweiser in the Canadian market, with a claimed share of 11 per cent, ahead of Molson Canadian, which is on just 8 per cent in its home market.

Outside Canada, principal export markets for Coors are Mexico and the Caribbean. Coors is market leader in Puerto Rico, but that market contributes less than 5 per cent of the Coors half of the union's total sales, emphasising the importance of domestic sales to the group.

Molson Coors chief executive Leo Kiely says he'd like to redress the balance: "We will strengthen our export markets . Although we maintain the leading share of the Puerto Rico beer market, the economic environment remains challenging there."

Molson Coors' UK subsidiary contributes 25 per cent of the group's sales, but was hit by poor weather and higher interest rates in Europe this year. The company also has an "emerging" business in Asia, which is managed through the UK subsidiary. The fledgling Japanese business is focused on the Zima and Coors brands, while Coors Light is the lead brand in China, where product for both markets is contract-brewed. The small remaining Asian volume is exported from the US.

Honing craft brewing's niche

While the recently-announced link with SAB-Miller in the US market will strengthen its mainstream presence there , the launch of the above-premium AC Golden Brewing offshoot indicates that Molson Coors believes there's much to learn from the craft brewing movement. This expansion of Molson Coors' presence in speciality beer is being viewed by many as a fundamental shift in emphasis.

The brewer's interest in the sector has been prompted in part by the increasing market strength of US craft beer producers, who saw volume sales increase by a further 11 per cent in the first half of 2007. Sales in US supermarkets were up by 17.4 per cent, higher than any other alcoholic beverage category.

Brewers Association director Paul Gatza says: "The 1,400 small, independent and traditional craft brewers in the US have hit their stride. They are making some of the world's best beers and the marketplace is responding."

But craft brews remain niche in export markets. Coors would have no problem with capacity, but whether it wants to use its new-found presence in the US niche beer market for export purposes remains to be seen. In its UK subsidiary it has the perfect vehicle to road-test smaller brands , but until it does, the US brewing presence in export markets remains a story of two extremes.

Much of the attention in recent years has focused on the "sexier" side of the port business. The growth of aged tawnies in North America and new business in eastern Europe and Asia have had the port barons licking their lips for some time now.

But the commercial fact of life is that the "commodity" markets of France, Belgium and the Netherlands still account for 65 per cent of all port sold. And, since the start of the millennium, port has been in slow but sure decline. It may not amount to much year-on-year, but port has lost 560,000 cases (about 5 per cent of its market) since 2000.

France and the Netherlands have actually performed rather worse than this; Belgium has done better although it's difficult to be exact , as there is a n amount of cross border traffic with the Netherlands to the north and France to the south.

What unifies the three markets is price. Competition is fierce, and the average price paid in these markets is the lowest in the world. The purchasing power of the main supermarket chains makes brand development an extremely expensive business. In the case of own-label rules, port must be careful it does not follow in sherry's footsteps, whereby producers fall over themselves chasing cash flow rather than profitable business. People have been saying for years that the prices being quoted are unsustainable, but little concrete evidence is at hand to suggest that times are changing - at least at the low end.

The most-quoted one-liner on New Zealand Pinot Noir right now is that of Tim Atkin MW . It was penned immediately after the Pinot Noir 2007 conference , printed in UK title Off Licence News (Feb 9 2007) and reprinted almost everywhere you look in the New Zealand wine industry.

Atkin echoes the thoughts of many when he says: "If you've got less than £25 to spend on a single bottle, I'd choose New Zealand over France for consistency, depth of flavour and, increasingly, complexity. Worryingly for Burgundy, Kiwi Pinots will only get better."

Atkin's comments may not have been intended to have such an impact, but some New Zealand producers are feeling more than justified in charging NZ$150-plus per bottle of their first-ever, top quality, or ultimate Pinot Noirs.

As you might expect, the New Zealand wine industry agrees resoundingly with his summary. The country is producing a burgeoning number of high-priced Pinot Noirs - some disturbingly pricier than others.

Fairness of comparison is perhaps not the issue. It's more that extreme pricing is forcing consumers to place a large question mark over what their money is actually buying them when it comes to Kiwi Pinot Noir these days.

Small is beautiful

New Zealand winemakers have always made high quality wines in small quantities but, now that several are concentrating on making super-premium s such as Pinot Noir, Riesling, unusual white blends and Chardonnay that command super-premium price s, the question is: who are these wines for?

Do wines such as Rockburn Eight Barrels Pinot Noir 2006 (NZ$75), Alana Estate Martinborough Le Coup Pinot Noir 2006 (NZ$150) and Martinborough Vineyards Marie Zelzie Pinot Noir 2005 (NZ$180) actually deliver value for money? They are definitely good wines, but that little list is just a taster of the new, upper echelons of New Zealand wines.

Contrary to what you might expect, the big-name producers of consistently top quality Pinot Noirs are not the ones turning out these new well-heeled wines. Felton Road winemaker Blair Walter says he and winery owner Nigel Greening are intentionally erring on the conservative side with their pricing. "We are placing more emphasis on improving quality, consistency, gaining a solid track record and strong international distribution," Walter says.

"Our prices will increase a little next year but I don't think we'll be selling [our] Block 3 or Block 5 for $150 anytime soon. Sure, our wines can end up being on wine lists for high prices or in auction houses but we believe it is better for the market to help determine wine prices than some winery-driven idea of what they're worth ."

Warren Adamson, director for UK & Europe at New Zealand Winegrowers, agrees that up to £25 retail for New Zealand Pinot Noir represents "very good value for money against traditional Pinot Noir regions ".

Bucking the price trend is Jackson Estate's Gum Emperor Pinot Noir, which had its inaugural release this year with the 2005 vintage costing an easy £20 (NZ$55) compared with wines of arguably similar quality that cost three to four times more . It sits alongside Jackson's premium Grey Ghost Sauvignon Blanc, priced £15 (NZ$41).

"The rationale behind both Grey Ghost and Gum Emperor is that they are purely quality driven," says Jackson Estate winemaker Mike Paterson. "We have set about driving the quality of Grey Ghost upwards each year by fine tuning viticulture techniques and winemaking philosophies.

"At no point have we simply thought it would be nice to make another Pinot Noir or Sauvignon Blanc and charge an extra premium for it. Both Grey Ghost Sauvignon Blanc and Gum Emperor Pinot Noir are evolutionary wines for Jackson Estate and will always be our most important wines as this is where our reputation is formed."

Paterson's comments seem to prove the point that the crème de la crème from New Zealand's top winemakers, wineries and vineyards can be delivered below NZ$100 a bottle.

Rockburn winemaker Malcolm Francis says price reflects cost, at least partially, and points to California's track record of producing Pinot Noirs with "over-the-top price tags for years now".

Conversely, prices are going in both directions for Pinot Noir wines from southern New Zealand's rising star region, Central Otago. "There is a lot coming out at the NZ$20 -$25 price point as well as at the top prices," Francis says. "Our vineyards are ageing and we see a lot more balance coming through. We're all inspired by what's being done in Burgundy and single vineyard wines are clearly the epitome of wine quality. That's what's driving some of these very high priced wines."

"There is value at every tier," Francis adds, "which may be hard to believe when you're looking at a NZ$150 bottle of Pinot Noir, but it's about perceived value as well." Only eight barrels were made of the inaugural 2006 Rockburn Eight Barrels Pinot Noir, which at NZ$75 is almost twice the price of the winery's standard Pinot Noir, which costs NZ$38.

What sets this wine apart - aside from its (welcome) relatively low alcohol level of 12.5 per cent - is that the cropping levels were lower and the quality of the grapes higher. More whole-bunch pressing was undertaken to lift the wine's aromatic spectrum. "I wanted to make a wine that you taste and think 'oh, yeah', but that half an hour later you are still pondering," says Francis.

Global comparisons

Wines such as Rockburn's Eight Barrels, Felton Road's top Pinot Noirs, Ata Rangi Pinot Noir and Bell Hill are all within a similar price range and made with a similar approach to quality.

"We are very mindful of the prices of the wines we respect and their position in the market," says Walter from Felton Road . "For instance, looking at what good quality Burgundy sells for. We are comfortable with our price relative to that when we put ourselves in our customers' shoes."

So what is New Zealand Pinot Noir offering against comparably priced Burgundy? The comparable price range for the priciest of the new-wave Kiwi Pinot Noirs would be Burgundy at about £60 or £70.

Alastair Maling MW and group chief winemaker for Villa Maria Wines, says: "The Burgundies we taste at similar price points to these new top-tier New Zealand Pinot Noirs have generally been held back and released two to three years post-vintage and therefore you are seeing them in a more integrated state.

"These top wines from Martinborough and Peregrine in particular are still very young, very firm tannic wines which aren't that well integrated yet," he says. "But I think they have all the ingredients to develop into fine wines, so assessing them in five years' time I'd probably give a different opinion."

Maling says he doesn't want to add another wine to the top tier right now. In reviewing his own single vineyard and reserve wines, he sees an element of simplicity in New Zealand Pinot Noir, in particular in comparison to Burgundy. "I think we have made strong inroads in the past five years and I think we'll see even greater ones in the next 10 as our quality levels improve again."

The difference, argues Maling, is largely attributable to the age of the vines. "Our winemaking is also getting better, in terms of moving beyond just making a sound, well-made Pinot Noir towards something that shows complexity. We're understanding when to pick, best winemaking practices. At Pinot Noir 2007, a lot of smaller labels that we don't normally see were showcased, which gave everybody the chance to see that all New Zealand Pinot Noir is getting better across the board."

Self-expression

The biggest progress with New Zealand Pinot Noir in the past decade has been regional diversification. This is why the largest wine company in New Zealand, Pernod Ricard, launched three new Pinot Noirs this year under its experimental Terroir Series banner. The wines come from Marlborough, Waipara and Central Otago, each one costing about NZ$40 and expressing individuality. To those accustomed to tasting Kiwi Pinot Noirs, it is relatively easy to pick which is which, and why.

It's not only Kiwi Pinot Noirs that are moving up in price. Esk Valley The Terraces - a classic Bordeaux-blend red - is now sold en primeur for NZ$100, but it has a track record and still costs significantly less than many first-ever "top" Kiwi Pinot Noirs.

But there will always be those who disagree with the notion that top quality New Zealand Pinot Noir compares favourably to Burgundy.

French wine write Michel Bettane, for example, expressed his outrage on the final night of the Pinot Noir 2007 conference at the suggestion that New Zealand Pinot Noirs were knocking on Burgundy's door in terms of quality and often surpassing them in terms of the value-quality ratio.

Cava wants to be, needs to be and increasingly is being taken seriously. For the uninitiated, it has in been sold on its reputation as cheap Spanish fizz - not to be taken seriously but a great start to festivities if Champagne proved too expensive. But, as with so many other sectors , consumers are better informed and looking for more quality and differentiation. Empowered with knowledge, they show more discernment and wish to be seen to demonstrate it.

Spanish winemakers became aware of sparkling wine through Catal an cork producers who were supplying Champagne producers. The cava pioneers were experimenting in the early 19th century and, unsurprisingly, the product was called Xampán (Champán in Castilian).

The Champenois stopped the use of that word with the creation of the EEC and the name cava, which is Spanish for "underground cellar", was adopted.

Josep Raventós I Fatjó is widely acknowledged as the first winemaker to produce cava on a commercial scale. His family owned Codorníu , one of the giants of cava - along with rival Freixenet.

The Institut del Cava, which represents producers, sees Spain as "the first country in the world to have a sparkling wine which is a serious competitor to Champagne in both quality and price". So how do the Spaniards drink it?

Maria del Mar Torres, director of the Institute, says: "In Spain, things have changed over the past few years. Traditionally, cava was consumed at Christmas or for special celebrations. More and more premium cavas are consumed to mix and match with food and nowadays we can find high quality cavas on the wine lists of the best restaurants, competing with the Champagnes."

Luis Sierra-Rey, Codorníu's marketing director, says: "The cava market in Spain is much consolidated. General growth is quite stable. However, the Spanish consumer is searching for higher quality when purchasing a cava."

Silvia Alias, spokeswoman for Pimecava (Asociación Patronal de Pymes del Cava - pime is the Catal an name for smaller sized companies), the break-away association representing 80 ( of 270 in total ) small-to-medium sized producers, believes the trend is increasingly to link cava with food and gastronomy, moving it away from its image as just a celebratory drink.

The association, whose members' average production is approximately 600,000 bottles of cava a year, targets the hotel, restaurant and catering or foodservice sector, promoting cava as a "great wine" that has had a secondary fermentation. Up against sector leviathans Freixenet and Codorníu, Pimecava members concentrate on the traditional, indigenous grape varieties.

Josep Puig, a director of Parxet, which makes its cava in the Alella region close to the Mediterranean coast north of Barcelona, sees the domestic market as stable at around 100 million bottles a year. But he says there is a shift to more premium expressions. "Exporting strategies have been heavily based on extremely low prices," he says.

The main markets for cava are Germany, the UK, the US and Japan. According to the Conse jo Regulador del Cava, the Freixenet group alone accounts for 68 per cent of cava exports (2006). It calls itself the world's largest producer and exporter of "traditional method" sparkling lines, exporting to 150 countries.

Codorníu, which claims to possess the biggest area of owned vineyards in Spain with some 3,000 ha, boasts a presence in 90 countries. It has nine overseas sales offices and exports account for 25 per cent of sales.

Sales director Joan Castell believes that international consumers are also looking for better quality and cava with "added value". Known to be favouring the inclusion of Chardonnay in its cuvées, it recently introduced a brut rosé extension of its Anna de Codorníu, made with Pinot Noir and Chardonnay.

At Parxet, Puig reports that the company has started to plant Pinot Noir and Chardonnay in its vineyards, which to date have principally been given over to a more typical mix of Xarel -lo with some Macabeo and Parellada.

While traditionalists and purists ba lk at the increasing use of international varieties, Institute director del Mar Torres says the new law that allows the use of Pinot Noir in white cavas "will increase the diversity without spoiling our own identity because the terroir is all-important and Pinot Noir produced in our region is totally different from Pinot produced somewhere else".

As with almost everywhere else in the world, demand for ros é wines is on the increase. Del Mar Torres says ros é cavas are "living in a sweet moment" with production increasing year on year. Out of a total annual production of 222 million bottles, approximately 20 million are rosés.

While cava has always lived in the shadow of Champagne, with better winemaking and emboldened producers it is starting to have the confidence to come out and show what it can do. In addition, as the Champagne producers appear to struggle to meet demand, cava is ideally placed step in and take it on .

Spain's boom came as no surprise. After 36 years of dictatorship its economy was ripe to explode with a joie de vivre typical of its lively people. What has come as a bit of a shock is that, since Francisco Franco's death in 1975, Spain has surged from a mainly agricultural and tourism-based society to overtake Canada as the world's eighth largest economy (World Bank). To boot, Spain is on the verge of surpassing Italy in per capita income. Yet, with the cheer of success comes some of the hangover of responsibility.

Trading in alcohol is inevitably linked to complex social issues. Producers used to proudly cite what they called a "Mediterranean" way of accompanying drink with food. Even a small glass of beer or wine would be served with a tapa. This, they argued, made Spain an enlightened consumer society. A recent study has shattered this image: affluence has created a blasé attitude towards drink.

Around 31 per cent of young men and 18 per cent of women "binge drink" on a regular basis, says an academic paper published in Alcoholism: Clinical & Experimental Research, the official journal of the Research Society on Alcoholism. The study group monitored 12,037 people aged 18-64 between 2000 and 2005. "Younger generations are acquiring new behaviour patterns," says Joan Ramon Villalbí, of Barcelona's public health agency.

"We are dealing with a pattern which, up until recently, was not habitual here [in Spain] and which is extensively found now among the young and people with high educational levels," José Valencia Martín, of the department of preventive medicine and public health at Madrid's Autónoma university, is reported as saying.

The European Union aims to reduce fatal road accidents to 25,000 by the year 2010. However, according to transport commissioner Jacques Barrot, Spain is not performing well. In the Czech Republic only 5 per cent of road deaths in 2006 involved drunk-driving . Spain, where 30 per cent of fatal accidents involved at least one driver over the legal alcohol limit, has the highest drunk-driving rate in the EU .

An illustration of the difficulties faced by those promoting safe consumption came in May, when former prime minister José María Aznar drew criticism for defending his right to drink as much and drive as fast as he wished. "I don't like it when they tell me 'You can't drive at that speed, you can't eat that many hamburgers,' or 'It's prohibited to drink wine'," Aznar said after receiving an award in the northerly wine region of Ribera del Duero.

Spaniards work and play hard - and harder than many expect. Nationally in 2005 and 2006, GDP grew 3.5 per cent, and per capita GDP stands at 98.2 per cent of the EU's average. The EU has benefited the country in two major ways. Spain has received nearly E60 billion (US$85 billion, £42 billion) in structural funds since 2000, money invested wisely in a massively improved infrastructure. It has also made good use of low interest rates set by the European Central Bank. The economy's growing sophistication is reflected in the drinks industry.

Harvest variations

Environmental predictions conclude that Spain is likely to suffer agricultural damage if global warming gathers pace. Fortunately, 2007 has been milder and wetter than sweltering, drought-affected 2006 which left low-rainfall vineyards suffering the aftermath of anhydrous stress. Northern regions such as Bierzo, Cigales, Ribera del Duero, Rioja, Rueda and Toro are hopeful of a good vintage . Rioja forecasts 430-450 million "good quality" kilos, while the regulatory councils for central La Mancha and easterly Utiel Requena anticipate 10-20 per cent reductions in volume with good quality.

Bullas, Jumilla and Yecla in Murcia expect a rise in volumes. "Thanks to some late summer rain, we're looking at a 10-20 per cent increase in crop," says Lorenzo Baños, export director of Casa de la Ermita in Jumilla. "Vines have recovered well from last year's high heat and drought," says Baños, adding that the harvest in Murcia was running two weeks late for Monastrell. "We can see the harvest continuing to the first week in November for varieties like Petit Verdot."

Canaries back in vogue

One area that is largely free of the vagaries of the weather and has made remarkable progress is the Canary Islands. Famous in Shakespeare's time and for decades exploited by British merchants, Canary wine fell into decadence until the onset of tourism in the 1990s.

Today eight DO s produce an extraordinary array of styles that includes some of Spain's most interesting dry white wines. At least 33 ancient grape varieties, including Gual, Verdello, Marmajuelo and Bujariego are grown ungrafted (the phylloxera bug never reached the islands) on mineral-rich, organically poor volcanic soils. U NESCO has declared some Canary Islands vineyards sites of special interest, such as those in La Geria, set in black obsidian ash on Lanzarote. Camels are used during the harvest here.

Unctuous Malvasía and port-like Listán Negro provide sophisticated Canary sweet wines. Reds are also improving in quality. Winemaker Juan Jesús Méndez Silverio, of Viñátigo, harvested red Baboso Negro grapes on the island of El Hierro in 2004 and made a rich, deeply aromatic dry red wine called Tanajara.

"The hard work has to be done in the vineyards," says Loles Pérez Martín, who makes Crater, a mineral-nuanced red, in Tenerife. Even wine writer Oz Clarke has been impressed, saying: "It's incredibly important that we take the Canaries' phylloxera-free condition seriously."

Beer in healthy state

Spain's major producers are Mahou-San Miguel, Heineken, Damm, Hijos de Rivera, La Zaragozana and Compañía Cervecera de Canarias. According to generic body Cerveceros de España, Spain's beer industry is the third largest in the EU after Germany and Britain and the ninth largest globally. Figures published by the Spanish government say per capita beer consumption for 2006 reached 59 litres, 30 per cent of which was drunk by tourists. At E5.1 billion (£3.5 billion, US$7.2 billion), the sector contributed 0.7 per cent of Spain's GDP, according to Ernst &Young.

Most beer is lager, normally served as cañas (on tap in small glasses) with two fingers of foam head. Spain is 98 per cent self-sufficient in hops, most grown in Carrizo de la Ribera.

Spirits snapshot

The spirits industry employs 140,000 people and contributes 0.5 per cent of GDP, according to Spain's Food & Drink Federation, dealing mainly in whisky, brandy, rum, gin, vodka and liqueurs. Growth from 2004-5 was 8.8 per cent, equivalent to E1.9 billion. A total 245 million litres of spirits were sold in Spain during that period, led by whisky, which represents 46.6 per cent of the market. Spanish brandy is 28.8 per cent. Among important events, Pernod-Ricard sold Larios (to the Domecq group) and acquired Beefeater, launching a publicity campaign to fix the British brand in the minds of consumers.

Unlike many Russian businessmen who created their empires through the corrupt privati sation of state enterprises in the early 1990s, Roustam Tariko built his company from scratch.

This is a man who likes to talk about his kids. But watch out - he could be talking about his actual kids, or about his vodkas. "I consider all our products to be my kids - it's the official language in the company," he explains. And any multinational that thinks it can take his upstart Russian Standard brand out of the market through acquisition is wasting its time. After all, who wants to sell their kids?

Those who have visit ed Portugal over the past 15 or so years will know that, after a decade of denial, the country's cork producers have spent a small fortune on radically changing their procedures, from the moment the bark is stripped from the tree to the time the finished corks are despatched to wineries around the world.

The investment has resulted in a substantial decrease in the percentage of corks with trichloroanisole (TCA for short) taint, which manifest s as a musty, mouldy, bitter aroma and taste. It is worth noting that humans can detect the presence of TCA in minute concentrations - so minute that testing methods have only recently caught up with the human nose. It is no surprise that Charles Walter Berry, of Berry Brothers & Rudd, wrote in 1932 in A Miscellany of Wine : "The 'corked' bottle we all know, and none of us understand. Happy will be the man who can find out the cause and the remedy."

Before moving on, winemakers who sweat blood to put wine into bottle as perfect as they can achieve should not be inclined to accept the proposition that even 1 per cent of the bottles should be contaminated, let alone higher percentages.

This, certainly, was the view adopted by the Clare Valley makers of Riesling, who moved en masse to screwcaps in 2000, and New Zealand's makers of all wines shortly thereafter. (At the 2005 Auckland Wine Show, all 13 trophies for still table wines - white and red - went to wines with screwcaps.)

Fast-forward to October 2007 and the 1,200 wines I tasted for my annual Top 100 in the Weekend Australian newspaper. In the under-US$20 white section, 96.8 per cent had screwcaps; under-US$20 reds, 88.4 per cent ; over-US$20 whites, 87.3 per cent; and over-US$20 reds, 57.2 per cent. The last figure is largely due to a vintage lag effect; in another two years the percentage will be close to 80 per cent.

The obvious question is why - if TCA (and other associated taints) is being reduced - Australian and New Zealand winemakers are irrevocably headed in the opposite direction. The answer was given well over 100 years ago by Louis Pasteur, who declared oxygen was the public enemy of wine. In 1898 another French researcher wrote: "In bottles, so long as the cork is sound ...protection of the wine is near absolute. New absorptions of oxygen are impossible." In 1947 Professor Jean Ribereau-Gayon came to the same conclusion; in 2000 his son Professor Pascal Ribereau-Gayon was equally emphatic that: "Reactions that take place in bottled wine do not require oxygen." End of discussion on point one: wines, white or red, sealed with screwcaps will evolve and develop in bottle in a not dissimilar fashion to corks.

"So what?" the cork apologists respond. Cork can achieve all that a screwcap can. Yes, but only one in 10 or one in 100 cork finished bottles can do so - the problem is that no two corks are exactly the same, whereas all screwcaps are.

Research by the Australian Wine Research Institute between 1999 and 2004 showed that screwcaps allowed between 0.0002ml and 0.0008ml per day of oxygen, and corks 0.0001ml to 0.1227ml per day. In other words, screwcap has a range of four times in permeability, cork 1,200 times.

So that random (or, technically, sporadic) oxidation of wine, courtesy of the cork, is the reason the elders of the English wine trade used to say : "There is no great old wine, only great old bottles ." It is also the reason for the stampede of winemakers in Australia and New Zealand away from cork to screwcaps.

Finally, let me lay the bogey of reduction to rest. Reductive wine -wine which has had no exposure to oxygen in its elevage, and has developed sulphide-like characters - will show reduced characters whether under cork or screwcap. It is the winemaker who is responsible for reduction, not the closure.



Further reading: The Great Closure Debate - Choices & Consequences, in the second edition of Art & Science of Wine, Mitchell Beazley, London 2006, by Hugh Johnson and James Halliday.

Region of origin is what researchers like to call a "high involvement cue". People who know their regions, goes the logic, are more likely to:

l be highly involved in wine

l be willing to trade up

l talk about their recent purchases to friends.

Using Vinitrac Global, its proprietary survey of wine consumers in all major wine consumption markets, Wine Intelligence has compared the extent of this region knowledge across 11 different countries. The results show that consumers in Switzerland, Ireland and the UK tend to have greater wine region knowledge than, say, consumers in Germany or the U S . Japanese consumers are aware on average of only five regions. Partly this is due to the language barrier and partly to the fact that, of all the countries in Vinitrac, Japan probably still has furthest to go in terms of making wine an understandable and desirable product.

Richard Halstead

operations director

www.wineintelligence.com

The British government is planning to better protect whisky from Scotland , but is it needed?

Nearly 20 years ago, two events occurred in the life of perhaps the world's most famous winemaker, Michel Rolland. He met luxury goods tycoon Alain Dominique Perrin and he went to Argentina.

Rolland has maintained his connection with both and there is one common factor - Malbec. More readily associated with Merlot and Cabernet thanks to his consultancies in Bordeaux, Rolland has spent years observing one of the Médoc's all-but forgotten varieties in the sun-baked vineyards of Mendoza and the rolling hills surrounding Cahors in south west France.

He's uniquely placed to analyse the similarities and differences , having helped Perrin to elevate Château Lagrézette in Cahors from obscurity to international fame . At the same time, he has worked with Argentinian producers to exploit what has become that country's signature grape, masterminding the establishment of the Clos de los Siete project with some of the leading wine families of Bordeaux.

So what are the differences and similarities?

First things first: Rolland is in no doubt about the intrinsic quality of the varietal. He says : "A good grape is a grape able to produce good rosé wine, light but fruity elegant wine, quite big wine or very smart wine like Pigeonnier [Lagrézette's top wine]. That's a good grape."

And, despite first appearances, tiny Cahors and the vast wine fields of Argentina have more in common than you might think. For a start, they share a more continental climate than Bordeaux - important for a grape that likes dry conditions.

"Malbec doesn't like Bordeaux because Bordeaux is often rainy and Malbec doesn't like rain," says Rolland. "That's why we pulled out almost all the Malbec from Bordeaux."

In Rolland's early encounters with Malbec in Argentina and Cahors he faced similar challenges. "The big problem in Cahors for years and even now has been over production. In Argentina, it is the same. We can produce 20 tonnes a hectare if we want - but the wine is awful."

The situation in Cahors was further complicated by a conservative, even reactionary, attitude to winemaking. Château Lagrézette's winery was only built in 1992, with earlier vintages outsourced - as Rolland remembers only too well.

"When I went to the co-op where Lagrézette was made, all the harvest was in one tank," Rolland recalls. "And we were fighting ..." He clenches his fists in mock aggression. "I told the Cave Coopérative to reduce yields. The guy was looking at me - what is this guy? This is a crazy guy ."

Years later, the association with Cahors is still uneasy . Perrin is clearly frustrated about the AOC rules governing Lagrézette and has spoken of his dream of turning the château into a kind of Vega Sicilia of the sud ouest, recognised as one of the top wines "in the Malbec world".

Lagrézette general manager Jean Courtois puts this in concrete terms: "We are talking about Lagrézette, Malbec, France, with the signature of Alain-Dominique Perrin. We are not really talking about Cahors."

Rolland agrees. "Malbec is really telling something to the consumer. Cahors stayed for years and years Cahors. The name was known in France, but nothing outside France. Now if we want to make the image bigger for Cahors, we have to give an identity, and the identity is Malbec more than Cahors."

As the man credited with the revival of Cartier, Perrin clearly has the wherewithal to cement Lagrézette's position at the top of the Malbec tree. He has recently bought 20ha of vineyards 15km from the château and he is considering a further e2 million investment in Lagrézette .

Such budgets are dwarfed by the investments in Argentina, with Rolland spearheading the huge Clos de los Siete project, to take one example. But he sees no conflict of interest or contradiction in championing the same grape variety on different sides of the world.

"The consumer is drinking Argentinian one day and Cahors the next," he says. "The trick is getting them to come back to the shop and take the bottle home again. "

And his personal favourite? Rolland takes refuge in the winemaker's traditional defence. "How can I choose between Malbec from Argentina and Malbec from Cahors? When you have children, you see how difficult it is to choose between them. I drink them both!"

== Concept ==

The 23rd Tax Free World Association World Exhibition held from October 22-26 in Cannes celebrated 60 years of duty-free retailing. The business developed in Shannon, Ireland, around a fuel stop for the early transatlantic flights, and in 2006 was worth some US$29 billion globally, up 7.4 per cent on 2005.

However, with the current security issues over the carriage of liquids, aerosols and gels, sales of liquor in particular are suffering. This is despite new legislation that allows such purchases in sealed bags to come into Europe from authorised countries. The problem lies in the fact that too few countries have applied for airport security recognition and until they do, passengers transferring in the EU will continue to have their purchases confiscated.

To date, only five countries in the International Civil Aviation Organisation - Singapore, Australia, Argentina, Croatia and Dubai - have applied. And these, we understand, will be authorised within the next few weeks. As European Travel Retail Consortium president Frank O'Connell explained at a workshop in Cannes, it is essential that others apply immediately while the European Commission is receptive to applications. It is important to all of us. He and the presidents of the regional duty-free and travel retail associations in the Americas, Middle East and Asia, are calling on individual operators and suppliers to make the most of this opportunity to work with their governments and to urge them to apply to the European Commission for mutual recognition of their security procedures in regard to LAGS (see page 18).

Frank O'Connell, who has worked tirelessly to resolve these issues on behalf of the whole travel retail industry, was unanimously voted the worthy winner of the Drinks International Travel Retail Hero award. Fourteen certificates in six award categories - from product launches to marketing campaigns - were handed out at the exhibition , except the Best Product Launch at TFWA 2007. This, and a full list of all the winners , will be announced in our December issue.

Brand owner Babco Europe

Produced in Amsterdam

Size 70/75cl

Price £26/US$35.99

Abv 30

Markets Worldwide

Contact babco.net

First launched in 1999 in the US, Agwa de Bolivia has since established a cult following in Canada and Australia, before a relaunch and global sales push in January this year. November sees the coca leaf-based liqueur's arrival in the UK and further launches are planned for Spain in January 2008, plus India, Malaysia, Norway, South Korea, China, Ireland and others later in the year.

Coca leaves are shipped from Bolivia to Amsterdam where they are processed, distilled and blended with guarana and ginseng. Each 70cl bottle uses 40g of coca leaf, which is reputed to possess stimulant and local anaesthetic properties.

With its vivid green colour, Agwa is certain to appeal to existing absinthe devotees, but the drink contains no active ingredients related to cocaine. "The primary cocaine alkaloid is distilled out," says Babco commercial director, Alan Brogan. "The secondary alkaloids that remain are perfectly legal. The product has been tested in all jurisdictions and is EU, US FDA and TTB approved."

Brand owner Heaven Hill

Brand owner Diageo

Produced in Mexico

Size 75cl

Price US$59.99

Abv 40

Markets US on- and off-trade

Contact diageo.com

Jose Cuervo has extended its Reserva de la Familia range with the introduction of a handcrafted, limited edition, ultra-premium tequila, distilled solely from the flavourful inner portion of the pine of the blue agave.

The individually numbered, hand-signed bottles are presented in a blue wooden display box with a hand-dipped wax seal and ribbon, also in blue, with a cork-finished closure.

The launch is being supported in the US by a fully integrated, US$6 million marketing campaign targeting all ultra-premium spirits consumer groups including 25-39-year-old males and urban professionals.

In a blind tasting by the US Beverage Testing Institute, Jose Cuervo Platino was described as "superlative" and scored 96 - the highest rating ever given to a silver tequila.

Brand owner Pernod Ricard/Irish Distillers

Produced in Co Cork, Ireland

Size 70/75cl

Price ???????

Abv 46

Markets Worldwide and travel retail

Contact xxxxxxxxxxxxx

Ireland's biggest whiskey export, Jameson, has added a fourth blend to the top of its repackaged Jameson Reserve range. Launched in October, Jameson Rarest Vintage Reserve joins Jameson 12 Year Old Special Reserve, Jameson Gold Reserve and Jameson 18 Year Old Limited Reserve, and contains the oldest and rarest whisk ies stored at the Irish Distillers facility at Midleton, near Cork.

"The rarest has been maturing in port pipes for 20 years and the oldest is from a 23-year-old grain and some other potstill whiskey of the same age," says David Quinn, director at Jameson's central laboratory. "We felt they had all reached their optimum and decided to do something with all of them together." Only 13,000 nine-litre cases were produced.

Also numbering four are the "whiskey masters" who produce the Jameson range: David Quinn, master of whiskey science; Barry Crockett, master distiller; Billy Leighton, master blender; and Brendan Monks, master of maturation.

Constellation Europe is celebrating the 40th anniversary of a classic Australian brand with the launch of Nottage Hill Dessert Shiraz. The first dessert wine produced under the Hardys Nottage Hill brand, it is a ruby red, full-bodied wine with rich dark cherry, blackberry, red plum and soft peppery spice flavours.

Constellation is hoping to open up the dessert category in the UK with a more upfront style of wine with familiar branding . The company is also breaking new ground by using the descriptor Dessert within the style name to help consumers make an informed purchase decision.

Clare Griffiths, VP brands marketing, Constellation Europe, says: "Dessert wines tend to be drunk by affluent, older, consumers of finer food groups. We want to expand this audience with a more accessible dessert wine ."

This luxury blended Scotch will be rolled out in 30 countries such as China, Russia, France and the UAE over the next couple of months.

But with an estimated annual production of just 30,000 70cl bottles, it will only be available in limited quantities to prestige retail outlets, clubs and bars.

The blend is similar to the 12 and 18 Year Olds in the Chivas Regal family, but with a more discrete, sumptuously rich personality . Elegantly smooth and perfectly balanced, it yields sweet orange and peach flavours and aromas followed by notes of marzipan and nuts with a fondant creaminess , and a full rounded and long finish.

Coley Porter Bell's luxury pack design retains the Chivas Regal heritage .

Ginkgo is described as a "true taste of Japan" because, unusually, it is produced from a selection of single malts from a number of Japan's distilleries.

Blended by Ichiro Akuto, formerly of Hanyu Distillery, and launched in Japan under the name Chrysanthemum, Ginkgo is a limited edition release of 1,000 12-bottle cases annually, 50 per cent of which will remain in the domestic market and 50 per cent distributed internationally under Number One Drinks Company.

Ginkgo is described as having a complex nose and spicy palate that makes a well-balanced, light and fresh aperitif or accompaniment to Japanese and other Asian foods.

The long-established coffee liqueur brand Tia Maria has been given a make over. Created from a blend of Jamaican coffee combined with vanilla, cane spirit and sugar, the liqueur is produced by industry giant Pernod Ricard through its Malibu-Kahlúa International subsidiary.

While retaining the classic Tia Maria bottle shape, a refreshed logo, embossed cartouche on the bottle neck and swirling label illustration all add up to a more contemporary look designed to appeal to its core consumer. The new packaging is the first element of a global campaign to reinvigorate the brand which began in the UK in September.

Cyril Claquin, senior vice-president of marketing, Malibu-Kahlúa International, comments that the packaging redesign "elevates the Tia Maria brand to a more premium status with a contemporary, sophisticated look ".

The Brown-Forman travel retail team, based in Louisville, Kentucky, is getting a shake-up in 2008.

Patrick Moran, managing director of Brown-Forman Travel Retail is to retire on May 1 .

Jim Perry, who joined the company as a government relations manager in 2000 and moved to the duty free/travel retail team on ­

October 1, has been named his successor.

Ian Macleod Distillers has added a single malt to its Glengoyne range exclusively for travel retail.

Burnfoot comprises Glengoyne single malt s that have been aged for up to 34 years and has an rrp of €36.

Ian Macleod is hoping to attract "a new, curious and aspiring target audience" to the product, which features fluorescent colour and contemporary typography on the label.

Ian Weir, marketing director for Ian Macleod Distillers, said: "Using a healthy ­percentage of first fill sherry casks, it offers a slightly smoother and sweeter taste than certain other variants in the Glengoyne range, but at the same time retains the distinctive qualities and depth of the whisky. It is therefore ideally positioned to appeal directly to whisky drinkers new to the Glengoyne brand".

The distiller has also added a "big brother" to its Smokehead Islay Single Malt brand. Smokehead Extra Rare is a premium offer exclusive to travel retail in 1-litre packaging at a rrp of E40/US$55.

Europe's duty-free industry is struggling to persuade governments worldwide to apply to the EU for a formal and mutual recognition of aviation security standards.

This was the stark message at a workshop held at the TFWA exhibition in Cannes last month.

The lack of a uniform security protocol for the carrying of liquids, aerosols and gels (LAGs) in transit poses a threat to duty-free sales, claims the European Travel Retail Council. And, to compound the situation, ETRC's campaign also faces a funding shortfall.

The workshop was told that this "stumbling block" was causing passengers transferring in the EU from flights originating at non-EU countries to have their liquid duty-free goods confiscated.

Goods were being taken even if they were in transparent, tamper-proof bags.

ETRC president Frank O'Connell said the campaign to find workable solutions for duty-free sales while these security restrictions were in place was now at a crucial point.

"Great strides have been made in new legislation which allows liquid goods from authorised countries to be allowed into Europe. The supply chain for tax-free luxury goods in the airport retailing environment is an inherently secure business which has given us credibility with the authorities," said O'Connell. "However, we are in danger of losing this credibility if more countries do not take up this opportunity and make an application [to the EU]."

O'Connell also warned of a funding shortfall. "A huge number of companies have contributed nothing , despite the fact that it affects us all. We only have money to keep us going for two months - we need more donations."

It was revealed at the workshop that authorities recognise the need to adopt scanning equipment capable of detecting and identifying potentially explosive substances in just two to three seconds.

But the reality is, O'Connell warned, that it will be two to three years before such equipment is available and installed at security check points on a global front.

O'Connell said that in the meantime it was essential that as many countries as possible made a formal application to the EU. But just five nations in the ICAO (International Civil Aviation Organisation) have applied - Australia, Argentina, Singapore, Croatia and Dubai.

Comments by workshop attendees reveal that the LAG issue is a low diplomatic priority for most countries.

And in some cases, most notably South Africa and Japan, deals are unlikely to be struck as neither country recognises that the EU is a single authority that can represent all 2 7 member states.

Another pressing concern is the lack of a reciprocal agreement with the US Transport Security Administration . At present anyone transferring in the US on a flight from South America will have duty-free liquor confiscated. This is not the case for transfer passengers on US-originating flights switching planes at South American airports.

In Asia, the transfer issue only applies within three countries: India, Japan and Australia.

Criollo Supreme Brands has struck a duty-free and travel-retail distribution deal with Armagnac Chabot for its brand Sempé Armagnac.

The brand encompasses Benelux countries, France and outlets of the Nuance Group Europe.

Criollo managing director Jo Raskin said the Armagnac could play a small but important role in the duty-free operators' liquor offer. "I travel regularly and am convinced that the travel-retail liquor business is moving towards specialist shops. Armagnac is a niche product, but every shop should have a small selection ," he said.

"We should remember that as Cognac becomes more scarce, Armagnac is an excellent alternative."

Criollo, based in Belgium, has also added an Irish cream liqueur to its spirits portfolio, which will be available in the same European markets as Sempé.

Coole Swan liqueur was launched in March this year and is independently owned. It has been listed by UK luxury department store Selfridges and it will be in Nuance's hands next month.

V&S Absolut Spirits is to widen the distribution of its first travel-retail exclusive line extension - the male-oriented Absolut 100 - after a highly successful six months .

The Swedish company has selected 100 top style bars worldwide for the roll-out of the new, higher-strength vodka from January next year. The participating bars, which will promote the product with various Absolut 100 cocktails, include Below Zero in London, Pontus! in Stockholm, Nobu in Milan and the Beach Road Hotel in Sydney.

V&S duty-free distributor, Maxxium Global Travel Retail (MGTR), will support the initiative with promotions at relevant airport shops, including a consumer guide to the bars.

"With this bar launch we take the collaboration between global travel retail and domestic markets a step further," said Anders Olsson, director of V&S Absolut Spirits Global Travel Retail.

"We see the campaign as an effort to generate hype in preparation of future domestic market launches, while further boosting sales in travel retail," he added.

The travel-retail channel's growing importance to Absolut is underlined by new flavour Absolut Mango, which will launch exclusively in travel retail in February 2008 before a wider roll-out.

Gruppo Campari unveiled two additions to its spirits portfolio at the TFWA World Exhibition last month in the shape of X-Rated, a so-called fusion liqueur, and Jean-Marc XO, a super-premium vodka.

The Italian spirits group acquired both brands from Daucourt Martin Imports in July this year for US$40m. X-Rated is a 17 per cent abv, bright-pink liqueur made from blood oranges, mangoes, passion fruit and vodka. Targeted at young, fun-loving women, Campari believes the brand, which was launched in 2004 and sells mainly in the US, has no direct competitors.

X-Rated will retail in European travel retail for €26-28 for a litre bottle.

"We have done tastings in markets such as the UK, Germany, Switzerland, Austria and Russia, and the early results are really promising," said Virginie Marquet, Campari's area director for duty-free (below).

Jean-Marc XO is a €40-45 super-premium vodka, made from a blend of four different French wheat grains and distilled nine times. Presented in individually numbered bottles, Campari believes the brand is a natural fit for sales at high-end duty-free shops, in first-class airline shopping offers and onboard luxury cruise lines.

Campari also revealed plans to expand its Monaco-based duty-free team . From January next year the company will seek to hire additional sales managers dedicated to specific regional markets worldwide, and more promotional co-ordinators.

Campari's most important duty-free brands are Campari, Skyy vodka, Glen Grant malt whisky and Cinzano.

l Asia's largest duty-free retailer, DFS Group, is to relocate its merchandising office for liquor, tobacco, watches and jewellery from its headquarters in San Francisco to Hong Kong from January next year. DFS Group global vice-president for liquor and tobacco John Hoover will move to Hong Kong as part of the relocation.

l Ylva Persson, William Grant & Son's high-profile global travel-retail director, has left the company after less than two years in the job. Managing director for Asia and global travel-retail Kevin Fong will temporarily assume Persson's responsibilities until a permanent replacement is found.

l BAA-owned World Duty Free and British Airways are trialling a new home delivery service which allows UK passengers to order five malt whiskies from WDF's World of Whiskies stores and have them delivered to their home address. The trial will run until December this year.

l Nuance is to list Belvedere Duty Free's entire Danzka Vodka portfolio as well as Belvedere's Sobieski Estate and Wisent (Bison Grass) vodkas from Poland, plus Marie Brizard liqueurs and Gautier Cognacs, in all of its pan-European duty-free locations.

Joint-venture travel retailer Société de Distribution Aéroportuaire has reported stronger than expected sales of fine French wine at its two liquor stores in the recently opened S3 Terminal of Paris Charles de Gaulle airport.

SDA, a joint venture between France's largest duty-free operator, Aelia, and airport owner Aéroports de Paris , runs two Pure & Rare liquor and wine shops in the e570 million terminal, which opened in June this year.

Premium wine already accounts for 15 per cent of total wine sales at the shops, and the highest single sales transaction for wine so far has been e7,200.

The focus of the 300sq m liquor and tobacco shop is the Oenothèque - an enclosed zone showcasing rare and precious wines, including collectors' items such as a magnum of Château Petrus at e14,000, a bottle of Mouton Rothschild 1945 at e13,800, and two bottles of Petrus 2001, each priced e2,000.

The main 300-strong wine selection is organised by region with Bordeaux and Burgundy proving the most popular among customers.

"Wine has really taken off since we opened in the summer," said Aelia liquor, wine and Champagne buyer Philippe Lanusse. "We are seeing high double-digit sales growth, which is testament to the fantastic selection we have been able to put together because of the good relationship we have with all the top French wine producers."

American , Canadian and Chinese travellers have been spending the most on wine since the terminal opened.

Whisky is also a key category in the new shops. More than 200 varieties are stocked, including a number of malt expressions exclusive to SDA . Among these are Glenfiddich 1975, Caol Ila 1994 and Edradour 1993 Burgundy Finish.

High-end Cognacs sold include Rémy Martin Louis XIII at e1,150 and Hennessy Richard at e1,240.

Alpha Retail has revamped the wine range for one of its largest shops at Terminal 1 of Manchester International airport .

Alpha, which also runs shops in 11 other British regional airports, including Birmingham, Liverpool and Newcastle, undertook consumer research which revealed that average spend per customer on wine in its airport stores was £7 per bottle, about £3 higher than on the UK high street.

In response to this data Alpha has devised a new wine offer at Manchester with four distinct selections.

These comprise an everyday selection with wines priced £5 -£10; a cellar collection of about 16 wines in the £10 -£15 price bracket ; a

premium selection ranging from £15 -£135 ; and a changing promotional selection of price-driven deals.

Another innovation for Alpha will be a focus on wines not normally associated with UK travel retail, such as Canadian icewines and seasonal wines such as rosés.

There will also be more gifting options , including

gift-packed cavas, wine literature and accessories.

Wine expert Peter Ayling, formerly of Allied Domecq Duty Free and now a freelance consultant, helped mastermind Alpha's new approach to wine at Manchester airport.

"The wine offer in the travel retail channel has traditionally taken second place to spirits, a result of the lack of distinction from the high street in terms of offer and price point," said Alpha Retail international director Martin Petchey.

"By using our customer research, extensive knowledge of the travel-retail sector and Peter's expertise we feel that we have come up with a range of wines that will really appeal to our customers."

Opened in 1962, Terminal 1 is Manchester airport's busiest terminal, handling international flights from Air Canada, BMI, Iberia, Olympic, Lufthansa and SAS.

== l IBA Congress & World Cocktail Competition ==

Peter Sandström has joined Beam Global Spirits & Wine as marketing director. He comes from Diageo where he had held various regional and marketing roles .

Thresher Group, the UK's largest specialist off licence chain, has appointed a non-executive chairman. Patrick Copeland is currently non-executive chairman of Elegant Hotels Group and has been chief executive of Granada/Forte and president of Joseph E Seagram Europe, chief executive of InterContinental Hotels and executive director of International Distillers and Vintners.

Jérôme Philipon is the new managing director of Champagne Bollinger. The 45-year-old has responsibility for business development. Next year he will assume more responsibility as he replaces Ghislain de Montgolifier as head of the house.

Argento Wine Company, the joint venture between London-based Bibendum wines and Bodegas Esmeralda in Argentina has made Amelia Nolan its managing director.

Sarah Gandy has been brought in to oversee the marketing of South African drinks company Distell's wine portfolio across Europe. For five years she was global brand manager for Kumala .

Waverley TBS, the leading UK on-trade drinks distributor, has made Neil Bruce its wine category director. He comes from Bibendum where he was commercial manager.

Chivas Brothers, Pernod Ricard's Scotch whisky and premium gin business, has made Swedish bar owner Fredrik Olsson its Ballantine's global brand ambassador.

Fenella Tyler is the new chairwoman of the National Association of Cider Makers. Tyler is head of communications at Bulmers, maker of the Strongbow brand. After two years she will hand over to Henry Cheva llier Guild of Aspall Suffolk Cider, who has been elected vice chairman of NACM.

Dita von Tees is Cointreau's new worldwide brand ambassador. She is known as being an "international queen of Burlesque and a muse to fashion designers".

Jenks, the sales and brokerage company, has made Des Ewing sales and marketing director for its beer, wines and spirits division. He joins from In Bev where he was sales director of the wholesale channel.

Miguel Patricio has been appointed zone president, Asia Pacific, by InBev. His job as zone president for North America is filled by Bernardo Pinto Paiva. Dirk Moens remains in Shanghai and becomes chairman of InBev China.

== Wh y should people choose Krug over other deluxe Champagnes? ==

l Kenwood Winery of Sonoma County in California is using Vincent Van Gogh's The Starry Night on the label of its 2003 Artist Series Cabernet Sauvignon . Each vintage of the wine since 1975 has featured a famous artist to showcase what Kenwood believes is the best expression of Cabernet Sauvignon.

l The latest artisan spirit coming out of northern California is Crispin's Rose liqueur from Greenway Distillers in Mendocino County. The base is mead, which is fermented with apple juice and infused with petals of heirloom roses before distilling. The liqueur, initially available only in California, sells for US$85 in 37.5 cl bottles.

l Wine Institute of California has received a US$50,000 grant from the US Department of Agriculture to conduct a study of the wine market in India. The report will survey the regulations governing the import into and the distribution of wines throughout India, and focus on key market opportunities for imported wines. In 2006, US wine exports to India, more than 90 per cent from California, increased 111 per cent from the previous year to US$792,000 and nearly 32,000 cases.

l Aimed at "modern Christian consumers" in the US is a new wine, imported by Haroz Vintners, called The Grapes of Galilee. Made in Israel the wine cites the Biblical miracle of Jesus Christ turning water into wine.

of George Washington's Distillery Straight Rye Whiskey signed by former president George H W Bush fetched US$35,000 for Mount Vernon's educational programmes at an auction on the mansion grounds. The winning bidder was John R Frank, vice-chairman of Sidney Frank Importing Co of New Rochelle, New York, wh ich imports Jägermeister and Tommy Bahama Rum. The bottle, number five of a limited edition of 24 , was produced on October 21 2003 on the distillery grounds by a team of master distillers according to the historic recipe found in George Washington's mansion records . It was hand-bottled on September 26 2006.

California and Washington state wineries have been chasing the elusive China market for several years and now US spirits producers have joined the hunt.

The Distilled Spirits Council of the United States recently hosted seminars and tastings for the trade in Beijing and Shanghai.

"The events were very successful with positive feedback," said Frank Coleman, vice president of public affairs for DISCUS.

The numbers also look positive. In 2005, US spirits exports to China totaled US$3.1 million. In 2006, they more than doubled to US$6.7 million . "It's a huge opportunity for us," Coleman said.

He added that the flavour profile of American whiskey was more compatible to Chinese taste than Scotch, which already has a major presence in China.

"The Manhattan cocktail, for example, created a lot of excitement," he said.

Jack Daniel's master distiller Jimmy Bedford led a tasting of US spirits, from raw material to finished product.

Robert Skalli, the veteran French wine producer, has launched US import company Skalli Family Wine Americas to bring a new portfolio of Robert Skalli wines from the south of France to the States.

Skalli, who has vineyard holdings in Châteauneuf-du-Pape, the Languedoc and Corsica, will be offering Pinot Noir, Chardonnay and Cabernet Sauvignon at a retail price of US$19.50.

Skalli's venture and the pricing of the wines reflect the growth in the reputation of southern French wines in the US.

He is one of the producers leading the charge to higher quality wines from the area over the past two decades.

The new company is also indicative of the growing strength of imported wines which now mak e up almost a third of the overall US wine market.

Through July , imported wines were up 13 per cent compared with the same period last year when French imports were up 10 per cent.

Martha Stewart is coming to a wine cellar near you - the iconic American homemaker has join ed with E&J Gallo, California's largest winery, to create Martha Stewart Vintage wines.

The first release will be limited to six regional markets in January, but a national rollout is expected later in 2008.

Some 15,000 cases of Sonoma County Chardonnay, Cabernet Sauvignon and Merlot will go on sale in Atlanta, Boston, Charlotte, Denver, Phoenix and Portland - all good wine markets, but not exactly in the New York-Miami-Chicago-Los Angeles league.

It has not been revealed how much of the US$15 retail price will go to Stewart, although she is known to drive a hard bargain.

A Gallo insider told Eye the deal was in the works in 2004, but when Stewart served prison time in a case involving stock trading, Gallo put the project on hold.

There is speculation that Gallo is initially aiming

at markets where women are not major wine consumers, counting on the Stewart image to bring in new drinkers.

It is doubtful Gallo would get behind a project that didn't involve sales of at least several hundred thousand cases, so by the end of 2008 Stewart may well be in cellars around the world.

Make sure yours is tidied up before she arrives.

l Pernod Ricard is to keep the distribution rights for New Zealand's Framingham winery in its home market and Australia, despite selling the company. Framingham has been bought by Sogrape .

l British retailer Tesco says it could impose on its international retail operation rules on outer packaging that are being introduced into its UK stores. Tesco is asking UK suppliers to ship wine in cases and pallets with a range of features, including country of origin symbols, to make them easier to lift and open for store staff and consumers.

l Ontario's craft brewers want politicians to review the ownership structure of the Canadian province's Beer Store chain. The retailer has an 85 per cent beer market share and is owned by brewers Labatt, Molson-Coors and Sleeman.

l The Fladgate Partnership, which owns the Taylor's, Fonseca, Croft and Delaforce port houses, has bought the prestigious 50 ha Quinta da Eira Velha vineyards from the Newman family. Fladgate now has 750ha of grade A Douro vineyards.

l The Best of Wine in Ireland 2008 guide has named Liberty Wines, the International Wine Challenge's 2007 specialist merchant for Italy, as its importer of the year.

l Carlsberg is to distribute Czech brewer Budejovicky Budvar's beers in Denmark through its House of Beer subsidiary. The two businesses already co-operate in Finland, Sweden, Serbia, Bulgaria, Croatia and the Czech Republic.

The recently appointed managing director of the German Wine Institute has unveiled a new strategy and structure for the generic body.

Monika Reule said the institute needs to show that "Germany is a wine-growing country in which wine is an important cultural asset as well as inherent to a modern lifestyle ".

She foresees emphasis on event marketing and promotions and more focus on grape varieties and regions.

Reule has also changed the structure of the institute , putting domestic and export marketing on an equal footing within five departments rather than treat ing them as separate entities.

Constellation Europe has bought iconic South African wine brand Flagstone and its owner, Bruce Jack, has become head of Constellation's South African operation, which includes top brand Kumala.

The teaming up of the voluble Jack with Kumala was first m ooted by Western Wines, Kumala's original owner before it was taken over by Vincor which was , in turn, acquired by Constellation.

The deal is widely regarded as good news, not just for Kumala but for the South African wine category. Both the brand and the category have been flagging and losing share over the past couple of years.

As part of the deal Jack, a viticulturist who has worked in South Australia, Bordeaux and California, and his team are retained and Jack will supervise all Constellation's viticulture and winemaking in South Africa, including Kumala. He will go from overseeing the production of 300,000 cases of wine to more than 2 million.

Jack says he plans to make contact with the farmers in the various co-operatives that supply the fruit for Kumala. As well as improving quality, he wants them to farm ethically and sustainably.

He sees Penfolds, the iconic Australian brand, as the business model for Kumala. Growers who supply the fruit that goes into Penfolds Grange, one of the best-known and most expensive wines in the world, join what is seen as an exclusive club - being a supplier to Grange is regarded as a badge of honour.

Jack said: "Constellation is prepared to step up to the plate and the farmers love their land and are passionate about what they do. We want to unlock that commitment and give them an incentive.

"South Africa has some of the most ancient and different soils. We have a different taste profile and our wines are different - we want to unlock the complexity.

"We want our farmers to farm ethically and sustainably. Maybe that is a long-term goal but we have to think big," Jack added.

Three wine producers are looking for UK representation following Laurent Perrier UK's decision to concentrate soley on growing its Champagne brand.

Marqués de Riscal, the major Rioja producer in Spain, Trinity Hill from Hawkes Bay on New Zealand's North Island and Thorn-Clarke, the family-owned producer from Australia's Barossa Valley , are all looking for agents.

The agencies end formally on March 31, 2008.

The Swedish government could end up selling its Vin & Sprit operation to its counterparts in Finland.

The Finnish state-owned beverage operation Altia is the latest company to have its name linked with an acquisition of V&S, including the flagship vodka brand Absolut.

Altia's operations include the importing, marketing, production and export of alcoholic drinks. It also has business units in Sweden, Norway, Denmark, Latvia and Estonia, as well as its home country.

Anheuser-Busch and Diageo have both backed a bill signed by California state governor Arnold Schwarzenegger to get tough on under-age drinking.

Arnie has signed a bill which includes increased penalties for teenagers attempting to buy alcohol, or being in possession of, manufacturing or selling fake ID.

Andrew Baldonado, region vice president of government affairs for Anheuser-Busch, said: "The new law will complement the main programmes our wholesalers implement to help prevent under-age drinking ."

Guy Smith, executive vice president for Diageo, said the most important part of the legislation was tougher penalties for adults who bought alcohol on behalf of youngsters.

He said: "It is important for us to consider what real solutions are out there to eliminate under-age drinking and [the bill] is a step in the right direction."

Competition from wine, spirits and craft brewers prom pted the proposed merger of the US interests of SABMiller and Molson Coors.

Subject to regulatory approval, the new company - to be called Miller Coors - will be in operation by the end of the year.

It will be focused on the US and Puerto Rican markets only, with SABMiller having a 58 per cent financial interest, even though the voting rights will be split 50-50.

The new company will have a portfolio that combines strong domestic brands in Miller Lite and Coors Light, craft-style brews such as Leinenkugel's and Blue Moon, and developing global brands like Peroni, Molson and Pilsner Urquell.

Molson Coors chief executive Leo Kiely will head the joint venture with the same job title.

Tom Long, chief executive of Miller Brewing, will be president and chief commercial officer.

Molson Coors vice chairman Pete Coors will be chairman, with SABMiller chief executive Graham Mackay as vice chairman.

Pete Coors said the deal was driven by "the profound changes in the US alcohol beverage industry that are confronting both compa nies with new challenges".

He added: "Consumers are broadening their tastes and are looking for greater choice .

"Wine and spirits companies are encroaching on traditional beer occasions, and global beer imports and craft brewers are both taking a larger share of volume and profit growth.

"Creating a stronger US brewer will help us meet these challenges and provide US consumers with greater product availability and increased innovation."

US-owned Ultimat vodka is aiming for growth in global markets after the worldwide distribution rights were bought by Las Vegas-based tequila producer Patron Spirits.

Patron paid an undisclosed sum for the rights from New York-based Adamba Imports International and said it would immediately offer the Ultimat brand portfolio to its distribution partners in 60 overseas markets.

Ed Brown, president and chief executive of Patron, said: "Ultimat is still very much in its infancy and we see tremendous potential to increase awareness and build this brand across the globe."

Ulitmat was launched five years ago and is growing at around 20 per cent annually, according to Adamba president A dam Bak.

"In that short time we've seen remarkable gains," he said, "and are forecasting to continue this climb."

Ulitmat is triple distilled and bottled in Poland and is claim ed to be the only vodka on the market that combines potato, wheat and rye in the recipe.

The range includes black cherry and chocolate-vanilla flavours, with retail prices in the region of $50.

Dutch wine distribution group Baarsma plans further acquisitions in the wine world after buying the Italian brand Canei from Pernod Ricard.

Chief executive officer Tjeerd van der Hoek said the company would be looking to add to the portfolio of a new company, Winetracks International, which it is setting up to look after Canei in world markets.

"We are in the process of setting up the company to sell and market brands worldwide," said Van der Hoek. "About two-thirds of our business is in the Netherlands but with Canei we have a lot of distribution in other countries. It's the first step to growth outside."

He added the company would be looking for further acquisition opportunities, but was not interested in businesses from South Africa or Australia, to avoid conflicts of interest with distribution deals it holds for wines from Distell and Constellation in the Benelux countries.

"We are looking to buy not only brands, but companies with branded portfolios," said Van der Hoek.

The Canei acquisition alone strengthens the international position of Baarsma, which is the market-leading wine distributor in the Benelux countries and has subsidiaries in South Africa, France and Switzerland.

The semi-sparkling brand sold 10 million bottles in 2007 in 25 international markets. The product is sold in several styles, including two fruit-flavoured variants, and has an abv of less than 9 per cent across the range.

Cees de Rade, chief operating officer, said: "Canei offers large business potential and complements the worldwide demand for wines with a lower alcohol percentage."

Pernod Ricard will continue to make Canei for Baarsma at its production site in Piedmont.

Chief executive Noel Adrian said: "We bought Canei in 1988 to strengthen the group's position in the US and Europe.

"The divestment is in line with the group 's strategy to focus on its new core brand portfolio."

The investment group ABN Amro Captial bought a controlling stake in Baarsma at the start of this year.

l Laphroaig the Islay Scotch whisky brand is to run a virtual tasting and debate on the web. Running for 40 minutes, Laphroaig Live takes place on November 21 at 20.00 (GMT). It will feature Whisky Bible author, Jim Murray and master blender, Robert Hicks.

l Diageo is test marketing premixed bottles of marg arita cocktails made with Jose Cuervo that it sells in the US market in British retailers Asda and Tesco. The mixes are being sold in 450 stores and are aimed at women aged 25 - 44 years old .

l Swedish cider producer Kopparberg has launched a cider flavoured with mixed fruit and a non-alcoholic pear cider on to the UK market. The mixed fruit drink will be available in 50cl bottles with an abv of 4 per cent. The company said it expected the launches to help the UK take over from Ireland as its biggest export market in 2008.

l LVMH said it achieved organic revenue growth in wines and spirits of 14 per cent to just over E2 billion in the first nine months of 2007. Cognac and Champagne volumes increased by 11 per cent and 8 per cent respectively. New World wines saw double-digit growth in all markets.

l ShotPak, the California-based producer of the St r8up range of ready-to-drink shot products, says it has signed a letter of intent with "one of the largest alcohol importers in India" to sell the company's products. The deal came soon after ShotPak entered into a separate deal to take it into the South Korean market.

Pernod Rcvbg excuses ."

Brazil's Leblon cachaça has increased its potential for future growth in international markets in a deal which sees Bacardi take a stake in the company.

The size of the investment has not been disclosed , but access to Bacardi's distribution network will give Leblon a leg-up against rivals in major markets.

The brand claims to be the first super-premium cachaça - the spirit used to make Brazil's national cocktail, the caipirinha - to be sold in all 50 US states.

It has pockets of distribution in top-end bars and restaurants in London and Paris, and is also available in the Thai and Irish markets.

Leblon president and chief executive Steve Luttmann said: "With Bacardi's involvement as a strategic partner and investor, Leblon will lead the Caipirinha trend around the world."

John Esposito, president and chief executive of Bacardi USA, said the deal showed the group's commitment to "grow new opportunities in the premium and super-premium spirits segments".

Leblon will benefit from links with a Bacardi portfolio that includes Grey Goose vodka, Dewar's Scotch whisky and Bombay Sapphire gin.

A Dutch bar and café owners association is su ing brewers Heineken, Grolsch and Bavaria for compensation related to price fixing in the 90s.

The brewers were fined a combined E273 million by the EU Competition Commission earlier this year, after it found them guilty of running a cartel to increase prices.

Heineken was handed the lion's share of the fines with a E219.3 million bill.

Jeu Claes, chairman of Koninklijk Horeca Nederland, is seeking compensation for members affected by the cartel activity.

He told a Dutch newspaper: "We want them to re-examine their prices and make sure there is a clear, transparent structure."

The organisation is being encouraged to bring the case by competition commissioner Neelie Kroes, who ruled on the original case, saying that "the major beer suppliers colluded to up prices and to carve up the market among themselves".

The brewers are all appealing the original decision and have declined to comment on the case being brought by KHN.

West coast USA fine wine and spirits importer AV Imports intends to add to its portfolio after being bought by Spanish wine producer Codorníu.

The importer is being renamed AV Brands and will be headed by Mike Kenton as chief executive.

Kenton was president of Napa Valley winery Artesa, also owned by Codorníu.

"AV Brands does not strive to be the biggest marketing company," said Kenton, "but it does intend to be among the best.

"We will focus primarily on organic growth of current partners along a path that guarantees our ability to maintain the highest level of performance."

He added that "strategic acquisitions of additional prestigious brands will also be part of our growth plans".

AV is being bought from founders Ron Wollman and Albert Percora in what Cordorníu described as a "multi-million-dollar deal".

The company ranks in the top 20 importers in the US by volume and has a portfolio that includes Tio Pepe sherry, Camus Cognac and Caliterra Chilean wines.

A successful joint acquisition of Scottish & Newcastle would see Carlsberg become the most powerful brewer in France and Heineken transform its fortunes in the UK.

For most observers the surprise was the Danish and Dutch brewers forming a consortium to break up the UK's last remaining national brewer, which also has market leadership in France.

Carlsberg would get the French Kronenbourg business, which claims 36.6 per cent market share in the country, plus a brewery in Greece, where S&N has market position number two with a 10 per cent share.

The real prize for Carlsberg would be complete ownership of BBH, the Russian-based brewing operation it runs as a 50-50 joint partnership with S&N.

At the time of going to press, S&N had rejected the consortium's initial £6.8 billion bid, claiming that Carlsberg was trying to get BBH "on the cheap".

Scottish & Newcastle claimed Carlsberg's actions had triggered clauses in the joint-venture contract which obliged Carlsberg to offer S&N its 50 per cent stake.

S&N said it "had been content with the joint ownership arrangements and had wanted them to continue for the long term", but it was now considering whether to seek outright ownership itself or try to bring in a new partner.

SAB Miller would almost certainly seize on any opportunity for a way into BBH.

If Carlsberg was to gain control of BBH it would get outright ownership of the leading brands in Russia, Kazakhstan, Latvia, Lithuania and Estonia, plus number three position in the Ukrainian market.

The deal would make Heineken the leading brewer in the UK, a problem market for the brand which has struggled to make any real impression as a premium brand.

One possible outcome is that a Carlsberg-owned Kronenbourg 1664 would move to Carlsberg's own UK company's portfolio, allowing Heineken to become the running mate to S&N's Foster's in lucrative on-premise distribution contracts.

Heineken would also take over S&N's operations in Finland, Belgium and Portugal - it has the number two position in each - and S&N's cider units in the UK, Finland and Belgium.

Carlsberg and Heineken have yet to declare their intentions for S&N's 37.5 per cent stake in United Breweries - India's leading brewer - or its 17.5 per cent holding in China's fifth biggest brewer.

To follow the latest developments, visit the Drinks International website: [http://www.drinksint.com]