Market Watch September 2018

Direct shipping to wine consumers has always been a hot-button issue, even after the Supreme Court’s 2005 ruling that paved the way for it to become mainstream. The second piece of the shipping puzzle, of course, is interstate direct shipping by retailers. That’s an issue that’s likely to bubble up in court battles over the next few years, as retailers increasingly aim to pursue cross-country business to maintain their viability in a rapidly evolving retail landscape. It’ll be an interesting battle, and one that hopefully will be resolved in a way that’s beneficial to the ultimate end-game: selling more wine and educating wine drinkers. Even though direct-to-consumer (DTC) wine shipping is entrenched, it still doesn’t find many fans at the retail tier. But it must be said that DTC has…

Constellation Boosts Stake In Cannabis Producer….Constellation Brands has taken a $4 billion investment in Canada-based cannabis producer Canopy Growth, in which it already held a partial stake. Constellation—which took a 9.9% interest in Canopy for $191 million last fall—acquired 104.5 million shares directly from Canopy Growth to take its stake to 38%, as well as additional warrants which, if exercised, would take its stake to over 50%. Constellation will gain four seats on Canopy’s board as part of the deal. The company says the move will allow Canopy to bolster its leadership position in the global cannabis industry, providing funds for expansion in the medical cannabis market and laying the foundation for the nascent recreational market. Recreational sales of cannabis will begin in Canada on October 17. Constellation says it…

Napa’s Duckhorn Wine Co. announced this summer that it will purchase Sonoma Pinot Noir powerhouse Kosta Browne Winery from investment fund J.W. Childs. The deal includes Kosta Browne’s inventory, winery and tasting room in Sebastopol, 80 acres of owned vineyards, and leases on 90 additional acres. Kosta Browne CEO and president Scott Becker and winemaker Nico Cueva will remain at the company. The sale price wasn’t disclosed. Kosta Browne launched in 1998 with one barrel of Pinot Noir, made by founding partners Michael Browne and Dan Kosta, who were later joined by Chris Costello. Since then, the winery has become one of the most famous Pinot Noir brands in California. Its 2009 Sonoma Coast Pinot Noir was named Wine Spectator’s 2011 Wine of the Year. Kosta Browne currently produces about…

After 37 years, the dean of California wine tasting is ready for his next assignment. James Laube, 66, who has led Wine Spectator’s reviews of California wines since 1981, is stepping back from tasting new releases and turning his focus to cover stories and columns for the magazine, as well as vertical and retrospective tastings. Concurrent with Laube assuming a new role, Wine Spectator is naming a new lineup of California tasters as it moves to build on Laube’s legacy and strengthen coverage for the future. “Nobody at Wine Spectator has made a greater contribution over the past 37 years than James Laube,” Marvin R. Shanken, editor and publisher of Wine Spectator, says. Based in Napa Valley, Laube has reviewed thousands of new releases annually over the past three and…

NYC Bar Owners Add Golden Drinks Den The owners of popular downtown Manhattan bar The Up & Up debuted a new bar uptown in July. Called Stay Gold, the Kips Bay venue features three distinct spaces and a creative cocktail list. Stay Gold’s interior includes a front area with an antique gilded bar, a back lounge with booth seating and a marble-topped bar, and an outdoor garden space. The concept emphasizes innovative but accessible cocktails ($14) and also lists a few customer favorites from The Up & Up. Standouts include the signature Stay Cold, a frozen slushie made with Jim Beam Black Label Bourbon, Founders Brewing Co. All Day IPA, ginger syrup, and lemon juice; the Mezcal Safecracker, comprising Montelobos Joven mezcal, Campari aperitif, and Ancho Reyes chili liqueur; and…

• Set in a repurposed airplane fuselage, tiki concept Last Rites opened in late June in San Francisco’s Duboce Triangle. The bar’s interior mimics a tropical jungle, with banyan tree roots, stone idols, parachute fabric, and plane jump seats throughout. Tropical cocktails and more than 150 rums dominate the drinks menu. • Highlighting natural wines and offering only glass pours, Bar Norman opened in July in Portland, Oregon. The intimate venue, created by local wine guru Dana Frank, lists roughly 25 wines, emphasizing boutique labels with minimal production. These are joined by a small menu of wine-friendly fare. • Los Angeles’ historic The Mayfair Hotel reopened in July after a massive revamp, bringing with it two new venues: The Library and M Bar. The Library offers a secluded drinks escape…