UK retailers are hoping for major improvements now Diageo and Pernod Ricard have received the green light to take over the Seagram spirits and wine business. Sainsbury's wine director, Allan Cheesman, said: "I would like to see a new focus on wine management by the big brand owners. Wine needs proper management and professionalism." Spirits team leader at Asda, Mary McCarry, said: "The size of the supplier is not the most important issue for us. It is how close they are to us and whether they understand our culture and our stores." The communications issues were echoed by Waitrose head of buying Julian Brind, who said he believed Diageo and Pernod Ricard needed more people on the road who knew what they were doing. Landmark chairman Steve Parfett said the main issue was the potential threat to wholesalers from increasing consolidation of the suppliers. "We run the risk of being marginalised. The big multinationals tend to think the only business they need is with the major supermarket chains. I hope they have people who understand the whole sector." John Spurs, Morrisons' licensed trade director, said Pernod Ricard's success would depend on those it "puts on the front line". Pernod Ricard's general manager Ian Totman is hoping to allay the trade's fears about disruption, lack of communication and poor direction. Last summer it set up five business groups in a new commercial structure that it would be able to develop when the Seagram brands were brought in. (See drinks page 46). Totman promised increased human resources for the business to deal with the bigger brands and said: "We can bring a new approach and impetus." The company is now the third largest spirits business in the UK behind Diageo and Allied Domecq. Its annual spirits sales will double to 800,000 cases. The deal was announced 12 months ago but was only cleared by the US Federal Trade Commission just before Christmas. The FTC has stipulated that Diageo cannot integrate its Seagram brands until it sells Malibu and gave Diageo six months to sell the brand. A spokeswoman was optimistic. "There has been interest from major players, including Rémy Cointreau, Allied Domecq and Pernod Ricard," she said. For Diageo the main impact of the Seagram brands will be felt in the North American markets but in the UK it will handle Captain Morgan (subject to a legal ruling in Puerto Rico), Bulleit bourbon, Barton and Guestier, Crown Royal Canadian whiskey and Mumm Cuvée Napa. It is also planning to beef up its UK wine portfolio with Seagram's Californian wines. For Pernod Ricard the UK changes are more dramatic. Overnight it will become a major player in the Scotch and Cognac markets. It will be adding to its portfolio Chivas Regal, The Glenlivet and a collection of other whiskies, and the Cognac market leader Martell. It will also handle White Satin gin and OVD and Wood's rums until they are sold, and be responsible for Sandeman until it is sold to the Portuguese company Sogrape. Pernod Ricard will also have its first grande marque champagne as the deal includes a sales and distribution agreement for Heidsieck Monopole. {{NEWS }}

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