UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 26, 1998 (August 25, 1998)
---------------------------------------------------------------------------
Date of Report (Date of earliest event reported)
FORTUNE BRANDS, INC.
---------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-9076 13-3295276
---------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
l700 East Putnam Avenue, Old Greenwich, Connecticut 06870-0811
---------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 698-5000
----------------------
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
- ------ ------------
Registrant's press release dated August 26, 1998 is filed herewith as
Exhibit 20 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
- ------ ---------------------------------
(c) Exhibits.
--------
20. Press release of Registrant dated August 26, 1998.
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this Current Report to be signed on
its behalf by the undersigned thereunto duly authorized.
FORTUNE BRANDS, INC.
--------------------
(Registrant)
By Gilbert L. Klemann, II
--------------------------------
Gilbert L. Klemann, II
Executive Vice President -
Strategic and Legal Affairs
Date: August 26, 1998
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
- ------- -------------
20. Press release of Registrant dated
August 26, 1998.
Exhibit 20
[GRAPHIC OMITTED]
NEWS RELEASE
NEWS RELEASE
Fortune Brands, Inc., 1700 East Putnam Avenue, Old Greenwich, CT 06870
NEWS RELEASE
Contact:
Media Relations: Investor Relations
Clarkson Hine Anthony J. Diaz
(203) 698-5148 (203) 698-5553
FORTUNE BRANDS ANNOUNCES COMPLETION OF
GEYSER PEAK WINERY ACQUISITION
Addition of Premium Wine Brands Creates Powerful Distribution Synergies
with Jim Beam Distilled Spirits Business
Old Greenwich, CT, August 26, 1998 -- Fortune Brands, Inc. (NYSE-FO), the
consumer products company, today announced that its spirits and wine business
has completed the purchase of the Geyser Peak Winery.
The acquisition establishes a strong brand presence in a variety of
fast-growing California premium wine categories, in which the
internationally-acclaimed Geyser Peak Winery is a recognized leader. Geyser
Peak's 1997 sales soared 18% to $35 million on a volume of approximately half a
million cases. During the past five years, premium California wine sales have
climbed at an annual rate of 15%. The highly-profitable winery is located in
Sonoma County, California's Alexander Valley, and has the capacity to double
production.
The addition of Geyser Peak creates powerful distribution synergies
with Fortune Brands' distilled spirits operating company, Jim Beam Brands
Worldwide, Inc. (JBB). Fortune Brands expects Geyser Peak sales to significantly
benefit from the strong distribution capabilities of JBB. At the same time,
Geyser Peak's strong sales presence at on-premise restaurant and bar accounts
will benefit Beam's fast-growing high margin brands, including Small Batch
Bourbons and ultra-premium tequilas. Geyser Peak will also represent the premium
Australian wine, Barwang, in the joint distribution venture established earlier
this year between JBB and McWilliams Wines. Cost synergies with the Barwang
joint venture are expected to produce additional savings. Geyser Peak wines are
available nationally and internationally in major hotels and leading
restaurants, airlines, and off-premise retailers.
The winery and its flagship Geyser Peak brand have earned a worldwide
reputation for excellence. Geyser Peak's numerous awards this year include the
coveted "Winemaker of the Year" and the Best Blended Red Wine Worldwide Award at
the 1998 International Wine & Spirit Competition, and "Winery of the Year" at
the California State Fair Wine Competition last month.
Geyser Peak wines include ultra-premium Geyser Peak Reserve and
Venezia, super-premium Geyser Peak and FoxRidge, and popular premium Canyon
Road. The industry categorizes ultra-premiums as wines selling for more than $14
a bottle, super-premiums as $7-14, and popular premiums at $5-7.
The purchase price was $59 million, plus funds to retire $33 million in
debt. Adjacent vineyard property was also purchased for $6 million. The
acquisition of Geyser Peak is expected to modestly contribute to corporate
earnings in 1999, with no dilutive impact in 1998.
Fortune Brands announced on July 22 an agreement to purchase the Geyser
Peak Winery. The acquisition is the eighth for Fortune Brands' operating
companies since January of 1997, and is part of Fortune Brands' sharp strategic
focus on revenue growth, cost initiatives, and asset management.
* * *
Fortune Brands, Inc. is a consumer products company with headquarters
in Old Greenwich, Connecticut. Its operating companies have premier brands and
leading market positions in home and office products, golf equipment and
distilled spirits. Home and office brands include Moen faucets, Master locks and
Aristokraft and Schrock cabinets sold by units of MasterBrand Industries and
Day-Timer and Swingline sold by units of ACCO World Corporation. Acushnet
Company's golf brands include Titleist, Cobra and FootJoy. Major spirit and wine
brands sold by units of Jim Beam Brands Worldwide, Inc. include Jim Beam and
Knob Creek Bourbon, DeKuyper cordials, Whyte & Mackay Scotch and Geyser Peak and
Canyon Road wines.
* * *
This press release contains statements relating to future results,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and uncertainties, including
but not limited to changes in general economic conditions, foreign exchange rate
fluctuations, competitive product and pricing pressures, the impact of excise
tax increases with respect to distilled spirits, regulatory developments, the
uncertainties of litigation, changes in golf equipment regulatory standards, the
impact of weather, particularly on the home products and golf brand groups,
expenses and disruptions related to shifts in manufacturing to different
locations and sources, delays in the integration of recent acquisitions, as well
as other risks and uncertainties detailed from time to time in the Company's
Securities and Exchange Commission filings.
# # #
