One French icon goes to the Americans(IHT/NYT)

[Up2Late]

(This sucks! Not only because this could ruin Taittinger, but also that this private equity group has $3.47 billion Dollars in Cash to throw around (investing it outside America). Sounds like Corporate Taxes are too low.):mad:

One French icon goes to the Americans

By John Tagliabue The New York Times

SATURDAY, JULY 23, 2005

PARIS If they cannot have yogurt, let them drink Champagne.

Groupe Taittinger, the much sought-after icon of French luxury and taste, has agreed to be acquired together with its main subsidiary, Société du Louvre, by the American real estate and private equity group Starwood Capital under a deal valuing Taittinger at 2.86 billion, or $3.47 billion. The deal brings under Starwood's control such French institutions as the Crillon Hotel of Paris and the Taittinger Champagne company.

The cash deal came less than a month after Claude Taittinger, the group's 77-year-old chairman, unexpectedly announced that Taittinger, one of the last large family-run businesses in France, was up for sale.

It comes also as rumors that PepsiCo, the U.S. food and beverage giant, is considering a hostile takeover of Danone, the yogurt and water company, have prompted French business and political leaders to rally to Danone's defense.

The takeover of Taittinger, the Champagne maker, luxury-goods producer and top-of-the-line-hotel company, though modest by comparison with a potential PepsiCo-Danone deal, involves numerous brands and products closely linked with France and the French way of life. Yet it has aroused no xenophobic reaction.

<http://www.iht.com/articles/2005/07/22/business/champagne.php>
(more at link above)

[Kellanved]

1. Well, Taittinger isn't exactly the best champagne.

I'd say it is an excellent example for a low-quality export product.

:shrug:

[daleo]

3. Now people can have freedom fries with their champagne.

Excuse me, I meant to say fizzy freedom wine.

[Up2Late]

8. Taittinger is Excellent Champagne!

Since you are so fond of disparaging statements with nothing to back them up, what do you consider good Champagne?

"...low-quality export product?" Kind of like Audi and Volkswagen or some mystery meat German sausages, huh?

I should tell you, by far more proud of my French Heritage (my Father was born in Paris), much more than my German (Danzig) Heritage.

[Kellanved]

10. yes,

The Mexico-made Volkswagens are another good example.

Tatittinger definitely makes good champagne as well, but the "normal" Taittinger is not up to the standard of - say - Moet. It also costs about half of the Moet, so that's probably okay.
Neither of them can approach a Gosset, for instance.

And: you should not have. But that's all right.

[Seabiscuit]

14. Sorry, but Tattinger is better than Moet.

Tattinger's close to (note - not equal to) Roederer and Veuve Cliquot. Nothing in Moet & Chandon's stock is on that level.

Moet & Chandon is an average export to this country. Tattinger's not the best, but it is above average.

[fshrink]

15. Try Krug

Laurent Perrier, or even Moet et Chandon.

[Up2Late]

16. Yes, Krug and Laurent Perrier, both exellent, I just...

...wanted to see if he would say Moet.

Moet NV, when compaired to Taittinger NV, tastes more like Andre "Sparkling Wine" by comparison.

Even Mumm is better than Moet, but hey, it's all just personal preference. I know their are some people who insist that Veuve Clicquot is great.

Maybe I got a bad bottle of VC, but I thought it was one of the worst wines I've ever tasted. I ended up throwing almost 1/2 of it away, it was that bad.:spray:

[DivinBreuvage]

2. The French whore for cash as bad as anyone else

As Mark Twain pointed out, the only reason Europeans historically haven't been as money-crazy as Americans, is that the opportunities have not been as common in Europe as in America.

[Kellanved]

4. Now that is an interesting theory

As it has two obvious errors:
>...haven't been as money-crazy as Americans
They have and they are.

>the opportunities have not been as common in Europe as in America.
They have and they are

:D

[DivinBreuvage]

5. Well, give the guy a break, he was writing 120 years ago. n/t

[aint_no_life_nowhere]

6. The French have never been too keen on salesmanship and marketing

It's not in their nature to the extent that it is in the English and even more so in their offspring in America. Napoleon called the English "A nation of shopkeepers" and the English have admitted to this, in fact taking it as a compliment. For example, the French built one of the most innovative cars of its time, the Citroen DS, but were apparently uninterested in selling it to the world. Rolls Royce leased their patent for hydraulic suspension for the rear end of their vehicle and successfully marketed it as an important luxury feature of their cars. The French have preferred doing things in their own traditional or individualistic ways, such as the way they raise beef or make cheese, without resorting as much on high tech innovation or mass salesmanship. This trend may be changing in France, but I think that George Bush's humorous statement about the French not having a spirit of entrepreneurship may have a small grain of truth in it, at least compared to the make-up of the English and especially Americans where business sales, consumerism, and the constant search for something new to excite the public into buying are ingrained in the society to a larger extent.

[Isere]

18. Yes, and it hasn't served them well in this century

You are completely right about their lack of marketing skills.
I think they believe that if they make a good product it will sell itself because the world will eagerly acknowlege its superior quality. Malheureusement, the world doesn't work that way anymore (if it ever did). Remember the VHS-Beta combat? If quality had been the main criterion, then Beta wouldn't be in the Smithsonian.

[Frederik]

7. "xenophobic reaction"

God forbid the French should have any "xenophobic" reactions to the poor American private equity pirates buying up their companies.

[Baclava]

9. I knew you weren't talking about the Tour De Lance

[TomClash]

11. American have been investing in French Vineyards for decades nt

[Wetzelbill]

12. I'm just trying to get to my 4000 post

[Up2Late]

17. Congratulations, you did it!

And then some.

[Sgent]

13. Starwood

Is one of the largest hotel/resort owners in the world -- 3rd I think to Hilton and Hyatt.

W Hotels, Sheraton, Weston, St. Regis -- are all Starwood.

3 bbl isn't that much cash for them to come up with in the grand scheme of things, espcially since they can use lons to do a lot of it (probably 2/3 or so).