Diageo’s Cups Runneth Over

The contest for Seagram Co.’s liquor business was won in December by U.K.’s Diageo PLC and France’s Pernod Ricard SA, which teamed to beat out rivals Brown-Forman Corp. and Bacardi Ltd. and Allied Domecq with an $8.15 billion cash bid. The deal marks the largest transaction in the liquor category since Guinness and Grand Metropolitan merged in 1997 to form Diageo.

Upon completion of the deal, Diageo will own 61 percent of Seagram, with Pernod Ricard holding the remainder. The extensive brand portfolio includes Chivas Regal, Absolut, and Glenlivet, although the new owners intend to sell off some brands.

One area of contention is Seagram’s $2 billion Captain Morgan brand, which Allied Domecq claims it purchased from Puerto Rican distiller Destileria Seralles prior to the Seagram acquisition. Diageo and Pernod, however, claim the brand is theirs.

The deal further extends Diageo’s already large lead over Allied Domecq in the world spirits market. Diageo has pledged to focus on the liquor business; it sold its Pillsbury CPG unit to General Mills last year (September 2000 PROMO) and is readying a partial spin-off of QSR division Burger King.

Upshot, Chicago, has been serving as agency of record on the Seagram Americas account. Chicago-based Group III Promotions, part of DraftWorldwide, handles event marketing. The Marketing Store Worldwide, London and Westmont, IL, works with the company in the U.K.

United Parcel Service late last year said it would not to renew its six-year-old sponsorship of the Olympic Games, a major blow to International Olympic Committee efforts considering that UPS is one of 11 global sponsors that donate at least $50 million in cash, services, or products for four-year ties. The IOC reportedly is attempting to raise the price of global commitments to $60 million.

What does every 14-year-old girl want? Her own fashion line, of course. TV stars Mary-Kate and Ashley Olsen launched a line of children’s clothing in Wal-Mart. The twin sisters have already sold $100 million in books and videos through their company, Dualstar Entertainment Group. Videogames from Acclaim Entertainment Inc. and dolls from Mattel Inc. round out the current licensing list.

Microsoft Corp., Redmond, WA, recruited boy band `N Sync in its efforts to lure teen subscribers for Internet service Microsoft Network. NSync@MSN will offer the same standard access as MSN, but will entice teens with a media player and instant-messaging service featuring the band and exclusive access to photos, videos, newsletters, and chats. `N Sync gets a cut of the monthly subscriber fees in a three-year partnership that could net the band $20 million to $30 million.

Walt Disney Internet Group, Los Angeles, struck a three-year, $100 million deal with Compaq Computer Corp., Houston, TX, through which it will buy equipment and services in exchange for Compaq’s commitment to advertise on such Disney sites as ABC.com and ESPN.com.

BOX OFFICE CLOUT Dutch publisher VNU further extended its reach into the U.S. marketing industry by announcing an intent to purchase box-office and retail-scanner data aggregator ACNielsen, Schaumberg, IL, for $2.3 billion in cash. VNU bought sister company Nielsen Media Research, the TV ratings unit, in November 1999. ACNielsen posts annual revenues of $1.5 billion and has 21,000 employees. VNU will pay $36.75 per ACNielsen share. The deal is expected to close in first quarter 2001.

ARRIVEDERCI, DOUBLECLICK E-mail marketer NetCreations, Inc., New York City, accepted a deal to be acquired by Italian Internet service provider SEAT Pagine Gialle for $111 million in cash. The offer scuttled talks NetCreations had been having with advertising firm DoubleClick, Inc., New York City, which had offered $191 million in stock last fall.

SURFIN’ SURFARI CoolSavings.com, Chicago, acquired the intellectual property assets of Surfari, Inc., Nashville, which provides comparison shopping data. Using the acquired technology, CoolSavings will create CoolShopper, a free service that enables members its to obtain comparison-shopping information.

ADVENTURES IN ACQUISITION 4Imprint, Oshkosh, WI, strengthened its position in the promotional products industry with the acquisition of Boston-based distribution network Adventures in Advertising for a reported $12.5 million in cash. The deal nearly doubles 4Imprint’s annual billings to $225 million, making it the fifth-largest distributor in the world with 400 franchised distributors and 600 associates. Adventures principals Dan and Kurt Carlson will remain at the helm of their company, which will retain its brand identity.

MORE SHOP TALK Publicis Dialog, New York City, acquired Geltzer & Co., Inc., a privately held New York City-based p.r. firm. The shop will merge with Publicis’ Manhattan office. The combined unit will post annual revenues of $12 million.