France

Folks,


Sometimes people ask me "what do you read?" Every day I read
www.dailyreckoning.com for business summaries, and today they had an amusing
article, to wit:

The Daily Reckoning PRESENTS: Inverting the popular adage that war is an
extension of politics, the Yanks and the Frogs are continuing their
pre-war tiff under the motto that politics is the continuation of war by
different means.

That's good news for investors...and lovers of the grape alike.

YANKS, FROGS AND WINE SPECULATORS
by Chris DeHaemer

The funny thing about the anti-French fever that has swept through the U.S.
over the last month is that it has produced an unusual buying
opportunity in nice French wines. The 2000 Bordeaux is much admired as the
best year in two decades.

The magazine 'Wine Spectator' (or should we call it 'Wine Speculator'?) had
this to say about Chateau Leoville Las Cases St.-Julien 2000:
'Absolutely fantastic. This is one of the most exciting young reds I have
tasted in a long, long time. Las Cases has always wanted to make
first-growth quality in a top-notch vintage, and it certainly did in 2000.
Best after 2012. Collectible.'...$175.00 per bottle.

Last week, even those usually inclined to scoff at the pretentious claptrap
of gourmets and food aficionados might have been tempted to buy a case
or two of 2000 Bordeaux...which they could find heaped in the bargain
barrel beside the door at the local spirit merchant, selling for 25%
discounts.

As France-bashing spilled from late-night comedy shows across the United
States following the French government's theoretical "support" for
Saddam Hussein's Iraq, France's wine exports to the U.S. fell noticeably in
March. Wine exports to the U.S. in 2002 were almost $28.5 billion.
This week, wine producers are holding emergency meetings in Paris.

Before the most recent incarnation of the Gulf War, about 40% of Maison
Latour's wine was shipped to America from its vineyards in Bourgogne.
The nascent U.S. boycott has seen sales drop by up to 15%.

The downturn in March exports of French wines has yet to be documented in
official statistics. But unofficial numbers bandied about by individual
exporters indicate that the upward trend witnessed during the first two
months of the year - when exports rose 16% to $287 million - will not
continue.

If you're stocking or replenishing a wine cellar, here's the opportunistic
thing to do: buy 2000 Bordeaux. In ten years, nobody will remember this
bit of Gaullist arrogance and the wine will be in short supply to
boot...with all that noble stuff swilled by backyard barbeque boobs who
bought it in
the bargain bin and stretched it with sugar and seltzer for homemade wine
coolers.

This line of thinking led me to search for French exporters that have been
flustered by the Francophobe fad. A backbreaking and intensive search
revealed this list of companies (actually, I found it in my inbox,
originally compiled by NewsMax):

* Air France. Air Liquide. Airbus. Alcatel. Allegra (allergy medication).
Aqualung (including: Spirotechnique, Technisub, U.S. Divers, and
SeaQuest). AXA Advisors.

* Bank of the West in California (owned by BNP Paribas). Beneteau (boats).
BF Goodrich (owned by Michelin). BIC (razors, pens and lighters).
Biotherm (cosmetics). Bollinger (champagne). Please note: Bank of the West,
Irving, TX, is locally owned and operated, and is not affiliated with
Bank of the West in California.

* Car and Driver magazine. Chanel. Chivas Regal (scotch). Christian Dior.
Club Med (vacations). Crown Royal Canadian Whiskey (Seagram).

* Dannon (yogurt and dairy foods). Dom Perignon. Durand Crystal.

* Elle magazine. Essilor Optical Products. Evian (which, read backwards,
spells "naïve").

* Givenchy.

* Hennessy.

* Jacobs Creek (owned by Pernod Ricard since 1989). Jerry Springer (talk
show).

* Krups (coffee and cappuccino makers).

* Lancôme. Le Creuset (cookware). L'Oréal (health and beauty products).
Louis Vuitton.

* Martel Cognac. Maybelline. Michelin (tires and auto parts). Mikasa
(crystal and glass). Moët (champagne). Motel 6. Motown Records.
MP3.com.

* Peugeot (automobiles). Pinault - Printemps - Redoute (Guicci, Yves Saint
Laurent). ProScan (owned by Thomson Electronics, France). Publicis
Group (including Saatchi & Saatchi Advertising and Leo Burnett Worldwide).

* RCA (televisions and electronics, owned by Thomson Electronics). Red Roof
Inns (owned by Accor group in France). Renault (automobiles).
Road & Track magazine. Roquefort cheese (all Roquefort cheese is made in
France). Rowenta (toasters, irons, coffee makers, etc.).

* Sierra Software and Computer Games. Smart & Final. Sofitel (hotels, owned
by Accor). Sparkletts (water, owned by Danone). Spencer Gifts.

* Tefal (kitchenware). Technicolor.

* UbiSoft (computer games). Uniroyal. Universal Studios (music, movies and
amusement parks, owned by Vivendi- Universal). USFilter.

* Veritas Group. Veuve Clicquot Champagne. Vittel. Vivendi.

* Wild Turkey (bourbon). Woman's Day magazine.

* Yoplait (French company Sodiaal owns a 50% stake).

* Zodiac inflatable boats.

I don't know about you, but the fact that 'Road & Track' magazine AND Wild
Turkey are French-owned is wrong. Very, very wrong.

That said, none of these companies offered ways to monetize the American
backlash against French stuff. In fact, the Paris CAC 40 index has
climbed from 2,400 to 2,903 since the first week of March, thereby proving
once again the major moral component of film noir - there is no poetic
justice.

Make money, not war.

Sincerely,

Chris DeHaemer
for The Daily Reckoning

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