Jan 2006 Financial News

CL World Brands expands in Europe

Jan 18, 2006

The CL World Brands is forming a spirits group that will be among the ten top spirits companies in the world within the next three years, Belvedere SA president Jacques Rouvroy said yesterday.

Rouvroy was speaking at a media conference to mark Belvedere’s formal offer to purchase Marie Brizard SA.

At present, CL Financial, through its Spirits Interests, Angostura Ltd and CL World Brands, currently owns 25.8 per cent of Belvedere, a major wine and spirits group with a strong presence in Eastern Europe.

The deal, which should be completed in April, is worth more than 300 million euros and will see the creation of a grouping of companies with total turnover of about US$1 billion.

“A lot of investors around the world are now admiring the move we are making with Lawrence Duprey to build up the group,” Rouvroy said.

He said the aim was for CL to own more than 50 per cent of Belvedere within next three years.

Belvedere’s shares on the Paris Stock Exchange were about 63 euro when CL bought into it three years ago. The price has since risen to around 158 euro.

CL World Brands chairman Duprey said the company’s expansion was giving it global reach, allowing it to better manage risks.

“This is one company reacting to global forces. We are adding significant shareholder value. What we are doing is managing our risk globally,” Duprey said.

“These companies are all in different geographic locations, in markets that are counter-cyclical.”

The Trinidad Guardian
Wednesday, 19th January, 2006.
http://www.guardian.co.tt/business1.html

Duprey added that there was a lot of consolidation taking place among the big companies. That is providing opportunities for companies like CL World Brands to develop the brands that are unattractive for the top companies.

“We are taking advantage of opportunities in the industry,” Duprey said.

“It all depends on what turns up.”