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TWST: Can we begin with a brief introduction to Allied Domecq (London:ALLD.L; NYSE: ADR.NY)?

Mr. Hetherington: Allied Domecq is quoted on both the London and New York Stock Exchange. We are a constituent part of the FTSE 100 index in the UK -- about No. 50 at the moment. Our business is focused in international spirits and premium wines and a leading quick service restaurant business. This is a business portfolio which Allied Domecq has been focusing on under the leadership of Philip Bowman for last three years after a period of divestments cumulating the sale of our UK pub business in 1999, which returned approaching $4 billion of value to shareholders at that time.

TWST: What will be the strategic direction the company will be taking over the next couple of years?

Mr. Hetherington: Our strategy remains in line with the strategy we’ve been driving for the last three years, which is to develop the growth and the financial performance of the existing business. Secondly to harness a benefit from the acquisitions that we’ve made over the last two years, both in spirits and the establishment of a leading premium wine business around the world, and to drive the platform and growth that we have in the business through further innovation. Certainly, those are the areas of focus for the next twelve months.

TWST: How many spirit brands are your operating currently?

Mr. Hetherington: We operate nine core spirit brands, which are leading brands around the world with high growth prospects. They include Ballantine Scotch, Kahlua, Malibu, Beefeater Gin, Corvoisier Cognac, Canadian Club, Maker’s Mark Bourbon, Sauza Tequila and Tia Maria which is a leading liquor brand particularly here in Europe.

TWST: Have you seen good growth across the whole spirit portfolio?

Mr. Hetherington: The year to August 2002, which is our last fiscal, eight of those nine brands were in growth and we’ve been working hard at investing behind those brands for the last two or three years to build a strong platform of growth and that the performance in fiscal 2002 was evidence that the strategy is working.

TWST: Which are your largest geographic markets?

Mr. Hetherington: The US is our largest market in spirits and wines, as it is for our quick service restaurant business with Dunkin Donuts, Baskin Robbins and Togos. Elsewhere around the world our next largest markets would be Spain, Korea, the United Kingdom, Mexico and Canada

TWST: How do you see emerging markets figuring into your strategy?

Mr. Hetherington: The acquisitions we’ve targeted over the last couple of years have taken into account the fact that we did not have the kind of exposure to some emerging markets that we would have wanted and an example of an investment that we’ve made was the establishment of a joint venture in Korea called Jinro Ballantines, which we made two years ago back when business was being incredibly successful both in the growth of the Korean brand Imperial and supporting the growth of our premier aged Ballantines’ portfolio in Asia as well.

TWST: What does the competitive landscape look like today and how do you see that shifting going forward?

Mr. Hetherington: Around the world, certainly in spirits and wine it is an industry which has both international and domestic players. The international players that we compete against would include Diagio, Bacardi, Brown Foreman, Pernod Ricard and others. The wines industry is even more fragmented and our wine business, which operates out of New Zealand, France, The United States, Spain and Argentina, has actually few international peers in terms of having a spread of business similar to our own. Then our quick service restaurant business, which is focused in the United States, has a number of competitors but the unique combination of our breakfast, lunch and evening operation gives us quite a unique position.