Thursday, August 27, 2009

BAILEYS IRISH CREAM

       To get to the bottom of Baileys, we'll need to travel back to Ireland 30 years ago. An Ireland-based drinks company employed a Managing Director by the name of David Dand. Along with a small team of supporters, he saw an opportunity to create a new-form of beverage-something unique in taste, low in alcohol, and made of natural ingredients. And, it would be advantageous that the ingredients were easily available and indigenous to Ireland.
       the Irish were the first to distill whisky. (Interestingly, Ireland's first distillery, today owned by Diageo Plc., is the same owner of Baileys.) And, Ireland's moderate climate saw year-long greens that nourished its cows to produce some of the world's top cream. Well aware of these two renowned Irish traditions, Dand put the two together, and the outcome was distinct and delicious.
       Known as the godfather of Baileys, David Dand was believer in his dream, a dream that was met with complex challenges. The most challenging was simply to keep the whisky and cream from separating after being bottled. After four years of trials and tribulations, while over a conversation with a colleague from the ice crea industry, the perfect ingredients were formed to keep the two together. And behold, the Baileys proprietary process was quickly patented.
       When Baileys was launch on November 26, 1974, it became the world's first cream liqueur brand. Although it was met with skepticism, one thing was unanimous: the taste it was met with skepticism, one thing was unanimous: the taste was unique and great. Today, Bailey's characteristic taste still remains the leader of the segment and the aspiration for its many followers.
       Rising to the Top
       In its first year, Baileys was test-marketed in Ireland, the Netherlands and UK, with the addition of Denmark and Australia soon to foolw. It was a huge success in Australia thanks to the support of the Irish community. And, in the early "80s, Baileys entered the United States, which still stands as the largest market for the brand today.
       Success fuelled more investment and refinement. Through R&D from its parent company, it had now a shelf life of 24 months, a guarantee no other cream liqueur can behold till this day. By the late "80s, Baileys was now a household name in global mainstream spirits. And Through successful advertising campaigns and sponsorships, it continued to connect with consumers the world over. To accommodate with its continuous growth, in 1992, state-of-theart facilities were opened on the outskirts of Dublin, and another outside of Belfast in 2002. Baileys now sells 6.8 million cases a year in over 130 countries. It is the 7th largest-selling global, premium drink brand in the world.
       Baileys Today
       By tapping into key insights and the ever-changing lifestyles of consumers, Baileys has been able to retain its consumer loyalty as well as attract new ones, like the introduction of Baileys Minis in 2002, a RTD (ready to drink) 4-pack that can be easily stored in the fridge. With over-achieving success around the world, the largest consumption per capita remains in its native country, Ireland. And through its stringent quality control, from the daily-supplied cream, finest spirits, triple-pot distilled whisky, and French and German chocolates, the luxurious mouth-feel and its harmonious flavors continue to delight pleasure-seekers everywhere.

Furore over caning highlights rise of Islamic law

       Malaysia would be better off if all citizens, including non-Muslims, were subject toIslamic law including 'hudud' penalties like stoning adulterers and chopping off thieves' hands.
       HARUSSANI ZAKARIA, THE MUFTI FOR PERAK STATE.
       The dramatic case of a Muslim model who faces caning for drinking beer in Malaysia has highlighted concerns that Islamic law is on the rise and that the nation's secular status is under threat.
       Kartika Sari Dewi Shukarno,32, was arrested at a hotel nightclub and sentenced to six strokes of the cane last month, in a rare prosecution of religious laws that ban alcohol for Malaysia's majority Muslim Malays.
       Her insistence that she was ready to face her punishment and would not appeal threw government and religious authorities into a spin as they attempted to carry out the sentence against a woman for the first time.
       As international headlines mounted,and foreign TV crews reported live from her family's home as the mother of two was detained ahead of the thrashing,she was abruptly released and the punishment is now on hold indefinitely.
       "The overriding view was that the sentence meted out was too harsh and is not commensurate with the offence,"said Women's Minister Shahrizat Abdul Jalil.
       She announced that the religious court would hold a review.
       "We are equally concerned not only for Kartika Sari, but also for the fact that this one particular case could have damaged the image of Malaysia in its fair and just implementation of the sharia law," the minister said.
       Despite the queasiness in meting out the sentence, in a jail not far from the glittering capital Kuala Lumpur, ethnic Muslim Malay politicians have long been competing to be seen as more pious than the other.
       The dynamic of "political Islam",which has alarmed Malaysia's minority ethnic Chinese and Indians, has gone into overdrive since 2008 elections that humiliated the long-serving Barisan Nasional coalition. The United Malays National Organisation (Umno) which leads the coalition and needs Malays as its bedrock, is being challenged by the conservative Islamic party PAS, a member of the resurgent Pakatan Rakyat opposition.
       "There is this whole business of outIslamising one another," said Azmi Sharom, an associate professor in the law faculty of Universiti Malaya.
       "There has been persistent talk that Islam is under threat for the past year and a half, since the results of the last general election." Prof Azmi said that in their eagerness to display their religious credentials, politicians were failing to check the creeping authority of the sharia courts, which operate in a dual-track system with the civil courts.
       Sharia courts can prosecute Muslims for certain offences including drinking alcohol and "proximity" or illicit contact with the opposite sex. While enforcement has been lax in the past, it is now becoming more aggressive, and the scope of the religious courts appears to be expanding.
       Prof Azmi said the government, which is keen to preserve Malaysia's reputation as a progressive and moderate Muslim nation, was skirting the issue by urging Ms Kartika to appeal."The crux of the matter is, how can we have such medieval laws on our books at all?" the professor said."I have a feeling this problem is going to get worse and worse because none of the leadership is going to have the guts to say - hold on, this is a secular democracy, we have to put a stop to this."
       Harussani Zakaria, the mufti for northern Perak state - an Islamic scholar empowered to give rulings on the Sharia - endorsed the push for stricter implementation of Islamic law.
       "People will ask, you have this law,why don't you practice it? When we practice it, then the government interrupts the process," he complained, adding that Ms Kartika should be punished swiftly. The influential cleric said Malaysia would be better off if all citizens, including non-Muslims, were subject to Islamic law including hudud penalties like stoning adulterers and chopping off thieves'hands.
       Zaid Ibrahim, a former cabinet minister in charge of legal affairs who quit last September and later switched to the opposition, said problems can arise if sharia pronouncements conflict with the constitution.
       "But which Malay political leaders from either side of the political spectrum dare touch it?" he said.
       "So the hardliners can and will always push and push and Malaysia will no longer be a liberal and moderate modern state," Mr Zaid said.

Muslims barred from Black Eyed Peas gig

       Muslims in Malaysia have been barred from attending a concert by US hip hop band the Black Eyed Peas sponsored by Guinness.
       The move comes after a Malaysian Islamic court sentenced a 32-year Muslim woman to be caned after she was caught drinking beer in a hotel and at a time when an opposition Islamic party has moved against beer sales.
       The concert, part of celebrations for Guinness'250th birthday, asks on its website "Are you a non-Muslim aged 18 years and above?" and if the response is no, access is not allowed.
       Muslims account for 55% of the 27 million people in Malaysia and are barred from consuming alcohol although the rules are regularly flouted, especially in big cities like the capital, Kuala Lumpur.
       Malaysia's Guinness Anchor which sells Guinness and other brands had sales of 1.2 billion ringgit (11.5 billion baht) in 2008.
       Even without alcohol, foreign bands are subject to scrutiny. Earlier this week,the Pan Malaysian Islamic Party (PAS)said it wanted Danish band Michael Learns to Rock banned from performing as it would cause immorality.
       Since 2007, PAS, the country's second largest political group measured by party membership, has campaigned against performances by Beyonce, Rihanna,Gwen Stefani and Avril Lavigne.

Diageo sees recovery in 2010

       Diageo Plc, the world's biggest spirits group, warned recovery would come in 2010 at the earliest,prompting it to cut its growth target after it met forecasts with a 10% rise in annual earnings.
       The London-based maker of Smirnoff vodka, Johnnie Walker whisky and Guinness beer sounded a note of caution yesterday, with uncertainty driven by weak European markets such as Spain,Ireland and Russia.
       Finance director Nick Rose said he expected trading to stay relatively weak in the last six months of 2009, with the speed of any pick-up in 2010 being critical to its performance.
       "There is all to play for, and critical is the speed of the recovery in most of our markets in 2010... We are cautiously optimistic, but we are not shouting about green shoots as loudly as some," Rose told a results telephone briefing.
       The group posted basic earnings for the year to end-June of 65.2 pence a share in line with a range of 57.6 to 72.6 and a consensus of 64.6p in a Reuters survey of seven analysts, while it raised its final dividend 5% to 22.2p.
       The British group's annual underlying sales were flat, and its volumes slipped 4%, but the weak pound and cost cutting pushed operating profit up 4%, at the bottom of its 4 to 6% growth range.
       Heineken NV, the world's third-largest drinks group, also published results a day earlier showing profit had been supported by cost cuts and price rises despite lower sales volumes. The company's much-watched EBIT (earnings before interest and tax) before exceptionals increased to 993 million ($872 million),up a like-for-like 13%. The average forecast in a Reuters poll of 15 analysts was
       927 million.
       Diageo, which cut its operating growth target from 7 to 9% only in February due to weak European demand and destocking in the US, again reset the target to a low single digit percentage for the current year to June 2010.
       Its sales growth shuddered to a halt then tipped downwards over the year as the recession hit drinkers, and profit growth slowed as consumers turned to cheaper priced drinks.
       Rose said Diageo would keep price rises this year to only around 1% in a bit to protect volumes, which fell 4% last year.
       He hoped this action plus more marketing spending and product innovation would see volumes flat this year.
       Diageo said its biggest market in North America was still very resilient, with the destocking seen earlier this year now largely over. Earlier this week the world's biggest brewer Anheuser-Busch InBev NV said it planned to raise beer prices in the US, reflecting a more robust economy.
       Diageo chief executive Paul Walsh said though the global economy appeared to be stabilising, there was still uncertainty as to the sustainability and pace of any recovery.
       Diageo shares have underperformed the FTSE 100 by 6% so far this year, but have risen from a low of 727p in March to close Wednesday at 996-1/2p. They have outperformed rival Pernod Ricard by 7% in 2009.
       The French group, No 2 in the spirits market with brands such as Absolut vodka and Chivas Regal whisky, said in July it expected flat sales in its year to June 2009, with operating profits at the lower end of its 3-5% growth range. It reports full results next week.

DIAGEO BEATS GLOBAL DOWNTURN

       Spirits-maker's annual profit rises boosted by strong Guinness sales
       Diageo, the world`s biggest spirits - maker, posted a 7 per-cent rise in full-year net profit yesterday, benefiting from favorable currency exchange rates and cost-cutting amid weaker demand for many of its key products.
       The maker of Johnnie Walker whisky, Smirnoff vodka and Guinness stout cut its profit target for the current year because of concerns about the strength of an economic recovery, but also stressed that It believed the worst was over.
       Net profit for the 12 months to June 30 was 1.62 billion poundsBt89.4 billion), up from 1.52 billion pounds a year ago.
       Revenue rose 15 percent to 9.31 billion pounds, but sales were flat when the exchange rate gains were stripped out.
       "This has been a very challenging year. Overall however, our results demonstrate the resilience of our business," chief executive paul Walsh said in comments accompanying the results.
       "White the global economy appears to be stabilising, there is still uncertainty as to the sustainability and pace of any recovery and 2010 will be challenging, as we lap a strong first quarter and reasonable first half performance this year."
       Diageo has been hit by destocking stores and distributors keeping fewer of its products in the United States and weak demand in Europe.
       Last month it announced that it was cutting 900 jobs as it shutters a 199 year-old distillery and packaging plant as part of a cost-cutting restructure of operations in Scotland.
       With underlying sales flat, cost-cutting and exchange rate movements helped the company record organic operating profit growth the figure closely watched by analysts _ of 4 per-cent. That was at the lower end of the 4 - 6 per-cent range the company forecast in February, a prediction that was itself a lowered target from an earlier forecast of 7 to 9 percent growth.
       The company dropped the target further for the current financial year, pegging `low single digit` growth.
       Chief Financial Officer Nick Rose said that he was confident that the company`s core premium brands would not suffer long-term from the economic downturn, saying that the recent tendency of consumers to seek out value brands had been overstated.
       "The question that we are often being asked is: Is the basic business model of premiumisation over? We feel very strongly that it isn`t," Rose told reporters on a conference call.
       "Although we are not shouting about the green shoots as aggressively as some people are, we would say that the worst is over."
       Diageo, which also makes Baileys liqueur and Gordon`s gin, said that growth in spirits offset a weakness in wine and beer sales in its key US market over the year. While volumes were flat, US sales rose 1 per cent.
       The international division was a major contributor to the company`s earnings report, with continued growth in Africa and increases in Latin America driving net sales growth of 7 percent, despite a 4 percent drop in volumes. Guinness stout was a star performer, with sales up 15 per cent.
       In Europe, volumes fell 6 percent and net sales were down 5 percent. Spain and Ireland were particularly impacted by the worsening economic environment.
       The company`s Asia Pacific region was the worst performer. Volumes were down 11 percent and sales down 4 percent due to trade de-stocking and a decline in sales of ready-to-drink products in Australia after an increase in alcohol tax last year.
       AT A GLANCE
       The maker of Johnnie Walker whisky, Smirnoff vodka and Guinness stout cut its profit target for the current year because of concerns about the strength of an economic recovery, but also stressed that it believed the worst was over.
       Diageo has been hit by destocking stores and distributors keeping fewer of its products in the United States and weak demand in Europe.
       Chief Financial Officer Nick Rose said that he was confident that the company`s core premium brands would not suffer long-term from the economic downturn, saying that the recent tendency of consumers to seek out value brands had been overstated.
       Diageo, which also makes Baileys liqueur and Gordon`s gin, said that growth in spirits offset a weakness in wine and beer sales in its key U.S. market over the year.

Smoking "to kill 6 million next year"

       Tobacco use will kill six million people next year from cancer,heart disease, emphysema and a range of other ills, global cancer experts said in a report issued on Tuesday.
       The new Tobacco Atlas from the World Lung Foundation and the American Cancer Society estimates that tobacco use costs the global economy $500 billion a year in direct medical expenses, lost productivity and environmental harm.
       "Tobacco's total economic costs reduce national wealth in terms of gross domestic product [GDP] by as much as 3.6%," the report reads.
       "Tobacco accounts for one out of every 10 deaths worldwide and will claim 5.5 million lives this year alone," the report said. If current trends hold, by 2020, the number will grow to an estimated 7 million and top 8 million by 2030.
       Last week the US Food and Drug Administration launched a tobacco centre to oversee cigarettes and other related products, after winning the power to do so from Congress in June. On Tuesday it set up a committee of advisers to help guide it.
       Over the past four decades, smoking rates have declined in rich countries like the United States, Britain and Japan while rising in much of the developing world, according to the non-profit research and advocacy organisations.
       Some other findings from the report,available at http:// www.tobaccoatlas.org/:
       One billion men smoke -35% of men in rich countries and 50% of men in developing countries.
       About 250 million women smoke daily -22% of women in developed countries and 9%of women in developing countries.
       Tobacco use will eventually kill 250 million of today's teenagers and children.
       One hundred million people were killed by tobacco in the 20th century.
       Unless effective measures are implemented to prevent young people from smoking and to help current smokers quit, tobacco will kill one billion people in the 21st century, the report predicts.
       China by far leads the world in cigarette production followed by the United States,Russia and Japan.

Sharia court "to review" caning order

       Malaysia said yesterday a caning sentence given to a Muslim model for drinking beer would be reviewed, because it was "too harsh"and may damage the nation's reputation.
       Kartika Sari Dewi Shukarno,32, was found guilty of drinking at a hotel nightclub and sentenced by a religious court last month, making her the first woman to face caning under Islamic law in Malaysia. She won a surprise reprieve on Monday when she was detained and then abruptly released by religious officials who had planned to take her to a jail where she was to be thrashed.
       Women, Family and Community Development Minister Shahrizat Abdul Jalil said the chief judge of a state sharia appeals court had ordered the sentence to be deferred pending the review.
       "The overriding view was that the sentence meted out was too harsh and is not commensurate with the offence,"she said."We are equally concerned not only for Kartika Sari, but also for the fact that this one particular case could have damaged the image of Malaysia in its fair and just implementation of the sharia law."
       Prime Minister Najib Razak urged Ms Kartika yesterday to appeal the sentence,which has generated unwelcome headlines and jeopardised Malaysia's image as a moderate Muslim-majority nation.
       "I believe the authorities concerned are sensitive on this matter and realise the implications of this case," he said.
       "I feel the person concerned should appeal to the state authorities and not be so willing to accept the punishment."
       But the mother-of-two, who has stared down religious authorities by challenging them to cane her in public, again refused and said that if the courts wanted to back down they should do so openly.
       "I won't file any appeal," she said."Carry on and cane me, don't waste my time."
       Ms Kartika said she had sought the advice of a judge and a religious scholar who advised her to "calm down and keep quiet for the time being".

Experts call for levelling of beer taxes

       Taxes on beer should be restructured to ensure fair competition and increase government revenue, say tax experts.
       Excise tax on beer is levied at three rates. Economy beers are charged at 16.50 baht per bottle, standard beers at 22.76 baht and premium beers at 23.38 baht.
       These tax brackets have been in place since August 2003 and were raised to current levels in the middle of this year,when excise tax on beer, whisky and brandy went up by 7-9%. Excise tax on local alcohol drinks now ranges from 39.2% to 78.7%.
       Bunchorn Songsamphant, a tax expert at the Excise Department, said higher excise tax had not reduced alcohol consumption as the government had expected because consumers switched to cheaper products such as white spirits,which are subject to a lower tax rate.
       "If the tax collection on all types of alcohol products were fairer, the government would benefit and earn more tax revenue," he said.
       For example, if the excise tax on economy beers, which account for 80% of the total beer market, rose to the same level as on standard beers, at 22.76 baht per bottle, the government would generate 21 billion baht more in taxes.
       Nipon Poapongsakorn, president of Thailand Development Research Institute, said the unequal tax collection had widened price gaps, increasing smuggling and hurting legitimate business. It is estimated 10,000 tonnes of alcohol are smuggled each year and 90% of community white spirits production pays no tax.
       Some imported beers also reportedly pay very low import duties, which has made them very cheap. Local beer producers have complained about this as creating unfair competition.
       Boonchuay Tongcharoenpulporn, a director of the Thammasat Foundation,approves of level tax rates because they would create fair competition."The problem is bureaucrats still favour complicated and multi-tiered taxation structures, especially on imported liquor, because this leaves room for personal discretion," he said.

Tobacco field child workers suffer poison

       Thousands of children working in Malawi's tobacco fields suffer nicotine poisoning equal to smoking 50 cigarettes a day, a children's rights organisation said yesterday.
       Children as young as five experienced common symptoms of nicotine poisoning including severe headaches, abdominal pain, muscle weakness, coughing and breathlessness, according to a study done by the international group Plan.
       "Child labourers, some as young as five, are suffering severe physical symptoms from absorbing up to 54 milligrammes a day of dissolved nicotine through their skin - the equivalent of 50 average cigarettes," said the report entitled "Hard work, little pay and long hours".
       Nicotine poisoning, also known as Green Tobacco Sickness, is more severe in children due to their size and because they have not built up a tolerance to nicotine through smoking.
       Up to 80,000 children in Malawi are forced to work in tobacco fields instead of attending school, mainly due to poverty and hunger.
       Plan said some of the child labourers work up to 12 hours a day, many for less than the equivalent of 1.7 US cents an hour and without protective clothing.
       "Children also revealed the physical,sexual and emotional abuse they suffer and spoke about the need to work under these exploitative conditions to support themselves, their families and pay school fees," the report said.
       Known as "green gold", tobacco accounts for up to 70% of the country's foreign exchange earnings and employs close to a half-a-million people.
       Plan said there was a lack of research into the long-term effects of Green Tobacco Sickness in children, but "experts believe that it could seriously impair their development".
       "The brain of a child or adolescent is particularly vulnerable to long lasting adverse neurobehavioural effects of nicotine exposure," said a medical professor at the University of California.
       Marty Otanez of the University of Colorado, who has done extensive research into child labour and tobacco farming in Malawi, said the research was "an important issue that the international community and tobacco companies cannot ignore any longer".

Caning of woman put off; nation is divided

       Religious authorities in Malaysia postponed yesterday the caning of a Muslim woman convicted of drinking alcohol until after the holy month of Ramadan.
       The planned caning of 32-year-old mother of two Kartika Sari Dewi Shukarno has drawn criticism from rights groups concerned by the rise of Islamic laws in the traditionally moderate country, even though Ms Kartika had accepted the punishment.
       Earlier yesterday it appeared she might have been freed when a court order that would have transferred her to a prison where she was to have been caned was ruled invalid by an Islamic justice official.
       Ms Kartika was released from a van that would have transported her to the prison in Pahang state in eastern mainland Malaysia where she committed the offence that she admits and for which she wanted to be punished in public.
       "The punishment has not been cancelled, it was postponed because of Ramadan," said Pahang state Executive Councillor for Religion, Missionary Work and Unity, Mohamad Sahfri Abdul Aziz.
       Ramadan, a time of fasting and contemplation for Muslims, started on Saturday and lasts a month and Mr Mohamad Sahfri said that the decision was taken after consultations with Malaysia's attorney-general.
       Ms Kartika, who has admitted that she drank beer at a hotel in Pahang in December 2007, said that she still accepted the sentence but wanted to be treated fairly.
       "I am shocked but I remain steadfast with my decision," Ms Kartika, wearing a cream-coloured, traditional long Malay dress decorated with flowers and a headscarf, told reporters after the state announced it would push ahead with the caning.
       "All I want now is to know my true situation and do not treat me like a football," said Ms Kartika who had worked as a nurse in Singapore until her trial.
       While caning is a common punishment under Malaysia's civil code, as it is in neighbouring Singapore, no woman has been caned and the severity of the punishment has generated criticism that the modern majority-Muslim state was becoming more hardline.
       It is also a sensitive political issue where Malays, who account for 55% of the 27 million population, must be Muslim.
       "There is a general push towards the implementation of sharia [Islamic] laws,"said Osman Bakar, deputy chief executive of the International Institute of Advanced Islamic Studies in Malaysia.
       "It's too simplistic to say that the government is becoming more Islamicised to gain more votes, more Malay support."
       In a sign of sensitivity over the issue ahead of a state by-election this month that pits the government against the Pan Malaysian Islamic Party in a majority Muslim state, the government's minister for women withdrew a statement in which she labelled the punishment as "harsh" for a woman.
       Former premier Mahathir Mohamad,a frequent critic of the West who ruled Malaysia for 22 years until 2003, said there was no need for Islam or Islamic countries to apologise.
       "The news of the caning has gone all around the world," he said on his popular web log (www.chedet.co.cc).
       "I do not know if this gives a good or bad image to Islam. As a Muslim, we do not have to care too much about the view of others towards Islam when doing what the religion calls for."