Under Philip Bowman’s leadership a strong forward momentum has been established. In consequence, most key measures of performance throughout the business indicate a marked and continuing improvement. High morale, confidence and teamwork are widely evident. Complacency is not.

At the time of writing this, the destiny of Seagram’s wines and spirits business has yet to be determined. Whatever the outcome, we are confident that there is a very sound future for Allied Domecq. The board’s primary objective is to continue to grow earnings at a double digit rate. Consolidation in the wines and spirits industry will certainly play a part in this to a greater or lesser extent, since there are undoubted savings and benefits to be obtained from strengthening the company’s brand portfolio. We know, however, that we cannot rely on consolidation as the primary means of expanding earnings. Bigger is not necessarily better. The best way of achieving growth is to expand the volume sales of our leading brands, including those in the Quick Service Restaurants business. This will call for levels of skill and consistency well beyond what has been achieved in recent years. But the streamlining of the company has given us the opportunity to reach these over time and we are confident of doing so.

It has been a hard but rewarding year for everyone in the business.
I am glad to have the opportunity of paying tribute to their efforts and conveying the thanks of the board.

Sir Christopher Hogg Chairman

A top ten player in a growing international wine market, we are now looking for further opportunities to expand our wine business. John Calmeyer has worked on the launch of Callaway Coastal, marking a major makeover for the Callaway Winery – Southern California’s largest winery.