Mexican windfall cheers Domecq
DRINKS group Allied Domecq is set for a £110m windfall this year in tax rebates from the Mexican government. Along with rival drinks operators, the group whose Presidente brandy and Sauza tequila are two of the country's biggest spirit brands was overcharged for several years by the Mexican excise authorities to the tune of hundreds of millions of dollars.
Allied is to take the repayments over several years. The £110m, a first instalment, will swell profits for the year ended August.
The group also issued a trading statement dismissed as 'humdrum' by one analyst. Allied described the first four months of its financial year as a 'challenging and uncertain period' for the world economy but said earnings were expected to meet City forecasts.
Christmas in Britain had been strong, with increased market share for all its key brands, which include Stolichnaya vodka and Kahlua liqueur.
Allied has also struck a deal with US brewer Miller to make alcoholic malt drinks based on the Stolichnaya and Sauza brands. Milwaukee-based Miller will make and distribute the drinks, which will contain 5% alcohol, roughly the same as beer, and will launch the drinks in the spring. The companies will initially invest up to $50m (£33m) in the venture.
