Indholdsfortegnelse for March 1-15, 2022 i Shanken's Impact Newsletter

EACH YEAR, IMPACT’S ANNUAL “HOT Brand” awards celebrate the fastest-growing brands across the drinks business. This year, a total of 96 brands from the wine, spirits, and RTD cocktail categories met Impact Databank’s stringent criteria to make the list. There are three different ways to qualify as an Impact Hot Brand: a contender must have shown double-digit growth in each year from 2019-2021, or be an established player with at least 15% growth in 2021, or else be a top 10 brand with at least 5% growth in 2021 and 15% growth since 2018. The minimum volume requirement for spirits and imported wines is 200,000 cases, while domestic wines and RTDs must meet a threshold of 250,000 cases. This year, 43 spirits brands were awarded Impact Hot Brand honors, bringing…

CONSTELLATION BRANDS AND EN ergy drink player Monster Beverage are reportedly involved in ongoing talks toward a potential merger that could result in a combined company with market value of $90 billion. The two companies could reach a deal within weeks if the talks continue progressing smoothly, Bloomberg reported. Reports of a tie-up between Monster and Constellation emerged last November. Coca-Cola is a major shareholder of Monster, which recently entered the beverage alcohol sector with a $330 million purchase of craft brewer Canarchy. Coca-Cola and Constellation are already collaborating on spiritbased premixed cocktails under the Fresca Mixed brand. In addition to deepening Coca-Cola’s involvement in beverage alcohol, a Monster-Constellation merger would give Coke exposure to cannabis via Constellation’s 40% stake in Canopy Growth.…

JOHNSON BROTHERS HAS AGREED TO acquire Service Distributing, Inc., one of the leading wine distributors in Virginia, for an undisclosed sum. “This acquisition continues to grow our geographic footprint across the country. Over the past few years, we have made strategic acquisitions in North Carolina, Indiana, and West Virginia. With this latest acquisition, we will significantly expand our presence in the Mid-Atlantic region,” said Michael Johnson, chairman and coowner of Johnson Brothers, which now operates across 21 states and had estimated 2021 revenues of $2.7 billion.…

GLOBAL EXPORTS OF SCOTCH whisky grew 19% to £4.51 billion ($6.1b) in 2021 on a 21% volume increase, according to the Scotch Whisky Association (SWA). The U.S., the largest market for Scotch exports, posted value up 8% to £790 million ($1.1b) on a 13% volume gain, even as the single malt segment faced tariffs through part of the year. Despite the solid progress, Scotch exports remain below their pre-pandemic level, with global shipment value still down 8% and U.S. shipments down 26% compared with 2019. “The industry continues to face global challenges, including ongoing trade disruption, growing supply chain costs and inflationary pressures, and undoubtedly there is some road to run before exports return to pre-pandemic levels,” noted Scotch Whisky Association CEO Mark Kent.…

MAST-JÄGERMEISTER US HAS NAMED Joe Fortune chief executive officer, effective April 1. Fortune most recently served as chief commercial officer and will be taking the reins from Jeff Popkin, who has helmed Mast-Jägermeister US for the past six years. Fortune joined the company in 2016 as CFO and has served as CCO the past two years. He has made a significant impact on the business during his tenure, according to parent group Mast-Jägermeister SE. Jägermeister’s namesake brand was up 13% to 1.3 million cases in the U.S. last year, according to Impact Databank. Popkin is credited with implementing the company’s strategic distribution alignment with Southern Glazer’s Wine & Spirits, its multi-year sponsorship deal with the NHL, and improving innovation with Jägermeister Cold Brew Coffee, among other initiatives. He was also instrumental…

AFTER ENDURING A PANDEMIC-DRIVEN DECLINE IN 2020, THE WORLD’S BIGGEST SPIRITS players came roaring back in 2021, boosted by a resurgent on-premise market and pent-up consumer demand. In 2020, Impact’s Top 100 Spirits Brands Worldwide by volume had surrendered more than 11 million cases collectively amid lockdowns in the early part of the pandemic and depressed on-premise conditions throughout the year. By contrast, last year was characterized by a broad reopening of the on-premise, which was accompanied by ongoing strength at retail. As a result, the Top 100 tacked on an aggregate 36.9 million cases in volume in 2021, with its membership now accounting for 422 million cases overall on annual growth of 9.6%. Not only did the Top 100’s performance last year far surpass that of pre-pandemic 2019; it also…

FOLLOWING AN EXECUTIVE ORDER from the president last year, the U.S. Treasury Department has issued its widely-anticipated report on competition concerns in the beverage alcohol sector. The report identifies two trends shaping the business over the long term—the proliferation of small producers and the consolidation of distributors—while putting forth a set of recommendations aimed at promoting competition and market access for smaller players moving forward. Broadly, the report urges the Department of Justice (DOJ) and Federal Trade Commission (FTC) to “vigorously enforce the antitrust laws, while continuing to examine their approach to horizontal consolidation and to evaluate the effectiveness of their remedies in the alcohol markets.” More specifically, it asks those agencies to “consider the effects on distribution stemming from the acquisition of craft brewers by major brewers,” “to apply particular…

TREASURY WINE ESTATES’ STRATEGY to revamp and premiumize its Americas unit appears to be bearing fruit. Treasury Americas saw net sales revenue increase 13.6% on an organic basis to A$466 million ($333m) in its fiscal first half through December, while EBITS surged 46% to A$85 million ($61m). Volume was down 5.5% to 4 million cases on an organic basis, as the company continues to accentuate its premium and luxury labels and battle tougher conditions in the $8-$11 tier. After offloading a number of nonpriority assets—including Provenance and Chateau St. Jean—and acquiring Napa Valley’s Frank Family Vineyards for $315 million in November, Treasury Americas now derives 90% of its net revenues from its premium and luxury portfolios, and its priority brand stable posted sales growth of 19% in the first half.…

TENNESSEE-BASED OLE SMOKY DIStillery crossed a key milestone last year, surpassing 1 million cases in volume on 50% growth. Private equity group Apax Funds announced that it has acquired a controlling stake in the distiller from Centerview Capital for an undisclosed sum. Centerview Capital invested in Ole Smoky in 2013, with the company quadrupling in size since then. Ole Smoky founders Joe Baker and Cory Cottongim, and management will remain significant shareholders. Ole Smoky’s four Tennessee distilleries welcomed over 5.7 million visitors last year, breaking the company’s record of 4.5 million, set in 2019. The deal is expected to close in April.…

• CAMPARI AMERICA HAS RENEWED its national alignment with Southern Glazer’s Wine & Spirits, under which the country’s largest wine and spirits distributor handles the Campari portfolio in more than 40 states. The two companies said the renewal—which continues a 30-year partnership—represents “a long-term commitment to continue what has been a proven and mutually beneficial relationship.” • RÉMY COINTREAU IS EXTENDING its partnership with Republic National Distributing Company (RNDC), with the alliance covering 28 U.S. markets. Effective April 1, the new agreement includes Alaska, Arizona, California, D.C., Florida, Georgia, Hawaii, Indiana, Kentucky, Louisiana, Maryland, New Mexico, Oklahoma, South Carolina, Texas, and Washington. Additionally, RNDC will act as broker for Rémy Cointreau USA in the control states of Alabama, Idaho, Michigan, Mississippi, Montana, North Carolina, Ohio, Oregon, Utah, Virginia, West Virginia, and Wyoming.…

THE PAST FEW YEARS HAVE BEEN AMONG THE MOST challenging periods in memory for the drinks business, as a global pandemic, economic uncertainty, and logistical issues have raised hurdles for even the most stalwart brand franchises. But as Impact’s annual “Hot Brands” honor roll illustrates, a host of high-performing labels continues to soar to new heights. Impact’s “Hot Brand” award winners total 96 brands across the wine, spirits, and premixed cocktail categories this year. The spirits contingent accounts for nearly half the overall list, as the category continues to steal share from other parts of the drinks market. The Tequila and whisk(e)y segments have been at the forefront of these share gains, and both are amply represented among Hot Brands. In size, the spirits Hot Brands range from Tito’s at…

PERNOD RICARD POSTED A BUOYANT SET OF RESULTS FOR ITS FISCAL FIRST half ended in December, with sales up 17% to €6 billion ($6.8b) and profit from recurring operations jumping 22% to €2 billion ($2.3b). Both measures were up strongly against pre-pandemic levels as well, increasing 13% and 20% respectively. Growth was robust across the French drinks giant’s global business, with U.S. sales rising 9% year-on-year and 17% compared with pre-pandemic levels. Pernod credited “a strong on-trade recovery and resilient off-trade” as driving gains for brands including Jameson and Redbreast Irish whiskies and Martell Cognac, as well as its American whiskey portfolio, which includes Jefferson’s, Rabbit Hole, Smooth Ambler, and TX. Jameson unveiled a new orange flavor expression during the first half, while Martell was boosted by a new campaign starring…

ONE OF NAPA’S ICONIC WINERIES IS CHANGING HANDS. DOUG SHAFER, PRESIdent of Shafer Vineyards, announced that Shinsegae Property, a luxury brand firm based in Seoul, South Korea, with department stores, shopping centers, golf resorts, hotels, and other interests, has acquired his family’s winery. The price tag is a reported $250 million. Shinsegae acquired the winery through its U.S. subsidiary Starfield Properties, lnc. Shafer winemaker Elias Fernandez and the core winemaking and vineyard staff will continue with the winery for the foreseeable future. The deal includes 225 acres of vines. Doug Shafer, who also will stay on, said in a statement to longtime customers that he hopes the sale will allow him more time to explore projects and focus on the things that made him fall in love with the wine…

Breakthru Beverage Group is the third-largest wine and spirits wholesaler in the U.S., with estimated 2021 revenues of $6.1 billion. The distribution giant entered 2022 under new leadership, following the retirement of chief executive Greg Baird last year. Stepping into Baird’s role as president and CEO is Tom Bené, who took the helm effective in October. Prior to joining Breakthru, Bené, a 30-year veteran of the food and drink industry, led the National Restaurant Association, Sysco Corporation, and PepsiCo’s foodservice business. Impact managing editor Daniel Marsteller spoke with Bené recently on his new role and the business outlook for one of the middle tier’s leading players. IMPACT: As a veteran of Sysco and PepsiCo, you have long experience leading large organizations. How is the challenge of leading Breakthru similar to…