Published on: 06 Aug 2017
How do you make $1 billion in 4 years?
Well, the answer is fairly straight forward if you come up with a good idea and have some good friends.
I guess it also helps if you are the famous actor George Clooney…
Mr Clooney and two of his friends – Rande Gerber (the husband of super model Cindy Crawford) and Mike Meldman the property tycoon – reportedly used to play golf together and had properties on a golf development called Casamigos (meaning House of Friends in English).
Playing golf wasn’t the only thing that they did together as friends as they also used to drink tequila. The problem was that they found that the tequila they drank was of mixed quality. Some was good but at the other extreme some was pretty bad.
It was reported that Mr Clooney suggested that they create their own tequila which “didn’t burn going down, that was super smooth and … that we could drink all day long and not be hungover in the morning”.
As a result of that idea, back in 2013 they set up a business producing Casamigos tequila and it’s done pretty well. So well in fact that the drinks giant Diageo has purchased the business for $1 billion split between a $700 million initial payment and $300 million over the next 10 years depending on performance.
Given that only 120,000 cases of the Casamigos tequila were sold last year, that’s a big figure but Diageo are obviously looking to scale up sales it up to a global audience (so far Casamigos has been targeted at the North American market).
Either way, it’s a good return for Mr Clooney and his friends and I’m sure they toasted the sale with a shot or two of tequila.
Then again, maybe they decided to celebrate with champagne and we’ll see a George Clooney champagne in a few years’ time…
Published on: 17 Jul 2017
Roger Federer became arguably the greatest ever male tennis player when he won a record 8th Wimbledon title by beating Marin Cilic but did you see what he was wearing?
Now, I’m not talking about his shoes, shorts or top but rather something less associated with the sport of tennis.
Sponsorship is big business for the top sports stars and as far as Mr Federer goes he’s doing pretty well when it comes to sponsorship. Forbes named him as the world’s highest paid tennis player last year when his prize winnings and sponsorship deals earned him over £50 million.
Winning Wimbledon was a good opportunity for Federer to add to his earnings (the prize money for winning Wimbledon was £2.2 million this year) but it was also a good opportunity for the sponsors to be associated with such a successful person (and of course hope that people will buy more of their products!)
Federer has a number of sponsors ranging from Nike to Credit Suisse but back to what he was wearing though and did you notice the watch that he wasn’t wearing during the match but was wearing when he was presented with the trophy?
Another of his sponsors is the Swiss Watch Manufacturer Rolex and after Federer won the match he quickly put his £6,000 Rolex Oyster Perpetual Datejust II onto his wrist before the presentation.
The end result was no doubt a very happy Rolex company whose watch was on the front pages of all the newspapers.
Some great publicity for the company.
Will we see this trend for tennis players putting designer watches on before they are presented with a trophy expand to other sports?
Will we see the captain of the winning team at next year’s football World Cup wearing a watch when he lifts the trophy??
Published on: 22 Jun 2017
One of life’s great mysteries for men when they are at a bar or club is why women always seem to go to the ladies “powder room” in groups.
There could soon be an equally mysterious occurrence that women will puzzle over and that is why men will soon disappear to the “gents” together during a social evening out.
Well, it won’t be to adjust their makeup or to catch up on the local gossip.
No, if UK company Captive Media has anything to do with it the visits to the toilet by men could soon be a great marketing opportunity.
It’s been estimated that on a night out a man spends on average 55 seconds relieving himself each time he visits the urinals in the gents (if you ever saw a person with a clipboard and a stopwatch behind you at the urinals now you know why…)
In the eyes of Captive Media this represents a great advertising opportunity as rather than staring blankly at the wall in front of you (or telling the person with the clipboard and stopwatch to go away) they have developed a urinal-based games console which allows men to, how can we say it but aim and shoot at targets with their “stream”.
The games are mixed with adverts and include for example a downhill skiing game which is controlled by your “stream”.
It remains to be seen what products will be advertised in this way but one thing for sure ladies is that if your boyfriend or husband returns from the gents whilst you’re out together on a social evening and he says that he’s just beaten his personal best then you know what it refers to.
Published on: 28 May 2017
With celebrity clients such as Angelina Jolie and Victoria Beckham, Jimmy Choo is one of the most famous shoe brands in the world.
It is a real success story having been started 21 years ago by Malaysian shoemaker Jimmy Choo, who trained at the renowned Cordwainers Technical College in London, and Tamara Mellon, a former editor at Vogue magazine, with a loan from her father of £150,000.
The pair started the business after Ms. Mellon met Mr Choo during her time with Vogue. Mr Choo used to make a small number of handmade shoes which the magazine used for photo shoots. Ms. Mellon saw the potential in scaling up the business and 21 years later there are now over 150 stores around the world with prices for some shoes being well in excess of £1,000.
So, why has the business been so successful?
Whilst design and quality are obviously key features, the brand arguably took off when famous celebrities such as Julia Roberts and Beyonce started wearing them.
But it’s not just shoes that they sell. They have also expanded into items such as handbags, sunglasses and scarves. In business speak this is referred to as “brand extension”.
The original founders sold their shares in the business a number of years ago and the company is now quoted on the London stock exchange with the main shareholder being JAB Luxury GmbH, owned by the German billionaire Reimann family.
They have recently announced that they were putting the company up for sale. In a statement, they said that “The board of Jimmy Choo announces today that it has decided to conduct a review of the various strategic options open to the company to maximise value for its shareholders and it is seeking offers for the company.”
It’s been reported that the company could be worth in the region of £700 million.
So why is JAB looking at disposing of a very successful fashion brand?
Recent acquisitions made by the company may give a clue.
JAB, the gigantic investment firm backed by the billionaire Reimann family has made a number of significant purchases recently.
They already have controlling interests in food and beverage brands such as Keurig Green Mountain, Douwe Egberts, and doughnut maker Krispy Kreme.
A few weeks ago they purchased the US bakery business, Panera Bread, for $7.5bn (£6bn).
It looks therefore like the owner of Jimmy Choo is more interested in concentrating on building up its food and beverage businesses than growing a high fashion business like Jimmy Choo.
I guess we’re unlikely to see doughnuts and Jimmy Choos in the same shop…
Published on: 18 Apr 2017
Picture the scene – you’re the senior auditing partner of KPMG in America with more than 30 years of experience serving some of KPMG’s most prestigious clients. There are over 9,000 KPMG people in the US who look up to you as the boss.
You receive some leaked information about which of your audits the US audit watchdog is going to examine as part of their annual inspection of how well KPMG perform audits.
(a) Disclose this unethical breach immediately, or
(b) Try to keep things quiet and make sure that the audit files of the audits selected are perfect?
Unfortunately for Scott Marcello, the (now ex) head of KPMG’s audit practice in America, he didn’t choose option (a).
The background to the issue is that every year the US audit regulator, the Public Company Accounting Oversight Board (PCAOB) selects a sample of audits to inspect and ensure they have been performed properly.
A former employee of the PCAOB had joined KPMG. A friend of his who was still working at the PCAOB tipped him off about which audits would be selected for inspection this year.
The confidential information was then passed up the KPMG hierarchy until it reached Mr Marcello.
We can only guess what Mr Marcello and 4 other KPMG partners were planning on doing with the leaked information but one thing was for sure and that was they didn’t disclose the leak.
Whilst the 5 partners clearly weren’t very ethical, KPMG as an organisation acted quickly once they found out about it.
The 5 partners were fired and Lynne Doughtie, the chairwoman and chief executive of KPMG was quoted as saying “KPMG has zero tolerance for such unethical behaviour. Quality and integrity are the cornerstone of all we do and that includes operating with the utmost respect and regard for the regulatory process. We are taking additional steps to ensure that such a situation should not happen again”.
The PCOAB publish the results of their inspections and the previous results of the KPMG inspections perhaps give a reason for why Mr Marcello was keen for any help, whether it was ethical or unethical.
In 2014 and 2015, KPMG had more deficiencies in their audits than any of the other Big 4 in America.
38% of their inspected audits in 2015 were found to be deficient whilst in 2014, 54% were found to be deficient.
Published on: 18 Mar 2017
That’s an interesting question and unless you’re a modelling agency then the answer for most jobs should be that looks aren’t important and it’s the ability to do the job that counts.
Research from Aarhus University in Denmark though has raised some interesting observations which could have an impact on fast food restaurants.
The study found that women were more likely to order healthy options such as salad instead of unhealthy options such as chips when they were in the company of a good-looking man. The research found that a woman was more likely to go for low calorie items when they were with a handsome man.
This healthy eating wasn’t present though when a women was eating with a good-looking woman.
Men on the other hand, tended to spend more on expensive food and drink when they were with an attractive woman.
Whilst we can probably guess that a woman doesn’t want to be seen as somebody who could eat a whole restaurant on a date and a man wants to be seen as wealthy and able to afford expensive food, Tobias Otterbring, the author of the study puts it nicely when he says “this research reveals how, why, and when appearance induced mate attraction leads to sex-specific consumption preferences for various food and beverages.”
He went on to say that “the most valued characteristics men seek in a female mate are beauty and health, whereas status and wealth are the top priorities for women.”
He also said that the study findings suggested that fast food chains should consider whether to employ good-looking men in case it encouraged women to look elsewhere for healthy options.
Somehow though, I can’t see many fast food restaurants saying that “good-looking men should not apply” in their job adverts.
Published on: 11 Mar 2017
We’ve all done it. Pressed the wrong key on the keyboard and before you know it you’ve sent an email or report with a typo in it.
Most of the time these are fairly harmless. This, together with spellcheck facilities means that normally it’s not a major problem if there’s the odd typo.
Unfortunately though, if you’re a software coder then a typo can have a major impact.
Cloud services are where companies store their data on remote servers held by companies such as Amazon, Google and Microsoft.
Last week, numerous websites which use Amazon’s cloud servers went down. These were major websites such as quora.com and soundcloud.com. Amazon subsequently revealed the problems were down to an employee who was trying to fix a software bug in a billing system but typed in the wrong string of characters.
Amazon said that “the command was intended to remove a small number of servers. Unfortunately, one of the inputs was entered incorrectly and a larger set of servers was removed than intended.”
Amazon quickly resolved the issue though and stated that they had “added safeguards to prevent capacity from being removed when it will take any subsystem below its minimum required capacity level. This will prevent an incorrect input from triggering a similar event in the future.”
There are lots of advantages of using cloud servers but as this illustration highlights there are also disadvantages.
Published on: 04 Mar 2017
It’s an unfortunate fact of life that people get sick. In the winter months especially, there can be a lot of cold and flu bugs going around.
But what percentage of working hours do you think are lost to sickness?
The ONS (Office of National statistics) in the UK has just released details of the number of sick days in 2016. The number of hours lost to sickness as a percentage of working hours was 1.9% or to put it another way, about 137 million working days were lost due to illness in the UK last year.
This may sound a lot but of the number of sick days taken has fallen over the last few years. Last year the average number of sick days per worker was 4.3 whereas when records began in 1993 it was 7.2 days per worker.
It looks like the fall in sick days could be down to a number of factors.
The economic downturn in the late 2000’s arguably caused people to “struggle on” through an illness rather than risk losing their job. Companies are also more flexible nowadays when it comes to letting people work from home. If someone isn’t feeling 100%, a lot of employers will let them work from home and even if they are not up to full speed at least they will be doing some work.
The details also show that there’s a difference between the public sector and the private sector. The percentage absenteeism in the public sector is 2.9% compared to 1.7% in the private sector.
The most common reasons for missing work last year included minor illnesses such as colds (25%), musculoskeletal problems such as back ache (22%), mental health problems including stress and depression (11.5%), stomach upsets (6.6%) and headaches and migraines (3.4%).
Published on: 28 Feb 2017
It’s a busy time for new parents when a baby comes along. Lots of employers give maternity and paternity leave for the new mums and dads but what about when your “baby” has 4 legs and a waggy tail?
Artisan Brewers BrewDog are a Scottish beer company who are very successful and sell their craft beers around the world.
They are also pretty unusual. They have grown from having two staff and two investors in 2007 to a current global team of in excess of 500. It has broken crowdfunding records with more than 32,000 shareholders.
More recently though, they became the first major company to offer their employees a week off if they get a new puppy. This will enable the humans to bond with their new pets without worrying that their work will suffer.
Founders James Watt and Martin Dickie, who themselves founded the company with their dog Bracken, said in a company statement that ‘Yes, having dogs in our offices makes everyone else more chilled and relaxed – but we know only too well that having a new arrival – whether a mewling pup or unsettled rescue dog – can be stressful for human and hound both.
‘So we are becoming the first in our industry to give our staff help to settle a new furry family member into their home,’
If any employees are thinking of getting a new puppy, then they won’t be the first in the company with a dog.
As well as providing time off for new dog owners, BrewDog also allow their employees to take their pet dogs into the office and there are currently over 50 employees at their head office alone who take their dogs to the office every day.
Published on: 14 Feb 2017
Do you know anyone who works in tax?
If by any chance you are in Australia then if I ask you this question in 5 years’ time, as a result of Ailira the answer may well be “no, as no-one works in tax”.
“Who is Ailira?” I hear you say.
Ailira is the brainchild of Adelaide based tax lawyer Adrian Cartland and stands for “Artificially Intelligent Legal Information Resource Assistant”.
Mr Cartland created Ailira to help people with their tax affairs and believes that she could eventually replace human tax agents.
He told the Australian Business Review that “Your tax agents will probably be gone within five years”.
What was interesting was that although to a certain extent Ailira functions like a search engine, you can ask it tax questions in the same way that you would ask a person who works in tax.
Mr Cartland said that “The one thing we had difficulty with is that people are so used to doing keyword searches that they struggle to ask a question as you would to another human.
“So we did some upgrades of Ailira’s interface to encourage people to treat Ailira like a human, more in plain English.”
That’s an interesting phase “plain English” as anyone who has worked in tax or studied tax will appreciate that it’s not always possible to explain tax in plain English as the tax laws can be pretty complex.
Still, good luck to Mr Cartland and importantly, good luck to Ailira who by the sound of things may well be doing a lot of work in the future.