While France is charging Diageo for alleged back taxes, Constellation Brands reveals its new acquisition strategy: obtaining local brewers. In Knoxville, Tennessee, a liquor store owner closes his doors because of legislation allowing grocery stores to sell wine, and four craft brewers close their doors, citing too much competition in the market. This is the news we’re thinking about here at SevenFifty Daily.

August 14, 2017
1. The Sunday Times

Diageo threatened with bigger French tax bill

France’s tax authorities have accused Diageo of not paying enough corporation tax on its earnings in the country. France “intends to deny tax relief for certain interest costs,” Diageo disclosed in its annual report last week.

2. Brewbound

Constellation shifts acquisition strategy to "local brands"

Constellation Brands created a “High End Craft and Specialty” business group whose sole purpose is overseeing the company’s present and future craft brewery purchases. This division was created following their acquisition of Funky Buddha, as Constellation reveals plans to acquire more independent craft breweries.


Knoxville liquor store going out of business, says wine in grocery stores to blame

Following legislature in Tennessee allowing grocery stores to sell wine, liquor distributors feared that business would decline. Farragut Wine and Spirits owner David Purvis says he has seen an unexpected loss of $2 million in revenue due to decline in wine sales. An unforeseen factor, he says, is the decline in spirit sales due to less traffic.


4. Brewbound

Four breweries close their doors in two-week span

Four breweries throughout the U.S. closed recently: Rubicon Brewing of Sacramento, California, American River Brewing, of Rancho Cordova, California, Blank Slate Brewing of Cincinnati, Ohio, and Tipping Point Brewery of Waynesville, North Carolina. In an interview, Rubicon owner Glynn Phillips cites restricted cashflow as a result of increased competition.