Indholdsfortegnelse for May 2020 i Market Watch

AS PICTURED: 1. Rapper Wiz Khalifa served up cocktails featuring McQueen and the Violet Fog at 40 Love in West Hollywood, California on February 19 to celebrate the gin brand’s first anniversary. 2. George Daou, co-proprietor of Daou Family Estates, celebrated the launch of the brand’s flagship Cabernet Sauvignon, Soul of a Lion, at The Beekman in New York city on March 2. 3. Bulleit blender Eboni Major took part in an interactive whisk(e)y experience—hosted by Bulleit Frontier Whiskey and Johnnie Walker and kicking off the Created by Craftswomen campaign—at The High Line Hotel in New York City on March 2. 4. Mixologist Zane Harris, co-creator of the Riedel Drink Specific glassware collection, hosted a demonstration at the Javits Center in New York City on March 2 as part of…

Could 2020 finally be the year for rum, or will marketers’ hopes once again exceed reality? Opinions on the vibrancy of rum’s near-term future are decidedly mixed. Add in the massive impact of the Covid-19 crisis, and it’s anybody’s guess whether rum can make waves this year. Ryan Maloney, owner of Julio’s Liquors, said prior to the coronavirus crisis hitting full force that he was witnessing a “move toward premiumization” in rum at his Westborough, Massachusetts store. He’s not yet sure what that might mean for the category. “For the last ten years I’ve been hearing that rum’s ‘the next one,’” he says. “In the past it’s gotten lukewarm, but has never become red hot. But we’re seeing some things now that may start bringing it to the forefront. Some…

Ron James, director of beer, wine, and liquor at 13-unit Buehler’s Fresh Foods in Ohio, speaks for many beverage alcohol retailers when expressing enthusiasm about the red-hot hard seltzer segment. “Hard seltzers have been fabulous for our department,” he says. “They’ve brought in new customers, and I’m excited about the future of the category.” According to Nielsen, hard seltzer sales in virtually all off-premise channels combined for a gain of 213% last year to about $1.5 billion—up from $496 million in 2018, when dollar sales registered a 169% gain over the previous year. And early forecasts for 2020 call for continued triple-digit growth, driven by surging consumer demand, expanded availability of established brands, and a plethora of new products. While Mike’s Hard Beverage Co.-owned White Claw has emerged as the…

Brendan Watters knew there was something special about Ballast Point. The co-owner and CEO of Kings & Convicts Brewing Co. in Highwood, Illinois made several visits to the Miramar, California-based brewery with partner Chris Bradley while scouting a second location of their own. “We just kept coming back,” says Watters. “We enjoyed the way the employees loved the brand, and we could see how they were hurting because it was no longer independent.” Those visits paved the way for Kings & Convicts’ recent acquisition of Ballast Point from Constellation Brands, less than five years after Constellation’s $1 billion purchase of the California craft brewer. Reports valued the deal between $75 million and $200 million, including the Ballast Point brand, the Miramar facility, and five brewpubs and taprooms in California and…

The change crept quietly, and then rushed in like a silent oncoming train. By mid-March, a stunned nation was isolating at home, witnessing scenes of darkened businesses and deserted streets as local governments ordered shutdowns across all but the most essential services. In the beverage alcohol world, the lockdown of the on-premise became a devastating blow. Bars and restaurants shifted to takeout and delivery in a survival plan that would generate only a fraction of normal income. But as business activity slowed to a trickle, some segments of the economy—very notably supermarkets, drugstore chains, and independent beverage alcohol retailers—suddenly saw unprecedented sales spikes. Faced with long stays at home, people began stocking up on supplies, including beer, wine, and spirits. During the week ending March 14, spirits sales in Nielsen…

Population growth, prepared cocktails, trading-up trends, the ongoing popularity of spirits, new retail store openings, and remodelings all contributed to another year of steady gains throughout the nation’s 17 control states last year, but thus far 2020 has been a rocket ride amid the Covid-19 crisis. As the off-premise boom occurred at retail across the country, control states saw sharp sales rises in the first quarter. From February 1 to March 22, New Hampshire saw total sales jump 17% to $109 million compared to the year-earlier period, including a 21% increase to $70.8 million for spirits and an 11% bump to $38.2 million for wine. Total volume was up 14% to 767,000 cases during the period. In Pennsylvania, wine and spirits sales accelerated from a 5.8% gain in January to…

Treasury Wine Estates (TWE) is eyeing a potential demerger of its Penfolds business, which would create a new company for the Australian luxury wine brand. The company said the demerger plan would allow the luxury Penfolds portfolio to unlock its full potential while TWE works to further premiumize and streamline the rest of the business. “Penfolds accounts for approximately 10% of our volume, but well over half of our earnings, with unique resources and a differentiated execution focus compared to the remainder of our business,” Treasury CEO Michael Clarke notes. If the demerger were to go through, TWE shareholders would own a share in Penfolds and in “New TWE” proportional to their existing TWE holdings. Treasury added that it plans to streamline and further premiumize its U.S. portfolio regardless of…

As Covid-19 led to on-premise shutdowns across the U.S. in mid-March, restaurants and bars faced an unprecedented situation, and millions of hospitality workers were laid off. Jon Taffer, best known as the host of “Bar Rescue” on Paramount Network, watched the crisis unfold from his quarantine in Las Vegas, where the Strip was shuttered. “At the end of the day, the largest workforce in America suddenly was struggling for survival,” Taffer said. “These are people who rely on tips, so it’s a disaster for our industry.” Among the few lifelines for most on-premise operators has been the online space. “A lot of people have been doing cocktail parties online,” Taffer noted. “It’s been an opportunity for brands and venues to connect through content—people are on their computers and phones more…

The drinks industry’s leading lights gathered at The Pierre in New York City on March 5 for a packed program at the 44th Annual Impact Marketing Seminar. Hosted by M. Shanken Communications chairman Marvin R. Shanken, the event featured presentations from top executives in wine, spirits, fine dining, and the emerging cannabis industry, as well as a panel discussion covering the key issues that are affecting the beverage alcohol market at all levels. The proceedings kicked off the evening of March 4 with a welcoming reception at WS New York at Hudson Yards hosted by Beam Suntory. The next day, Seminar attendees heard from leaders across the industry. The lineup included: Albert Baladi, CEO of Beam Suntory; Claudia Schubert, president of U.S. spirits and Canada at Diageo; Christopher Pappas, CEO…

With so many beer options these days, the variety pack—initially marketed to showcase a brewer’s range of styles—has been reimagined. Today’s craft beer drinker can now choose from variety packs offering a single style or theme across a range of brands, a mix of beers from sister breweries, or unique packaging configurations. New York’s Ithaca Beer Co. was among the first craft brewers to market a variety pack dedicated to just one style. Box of Hops, an 8-pack of 16-ounce cans—two each of four different beers—was first introduced in 2013. “Since we were an IPA-driven brewery, we decided to do something different and go vertical, showcasing just one style,” says Ithaca marketing director Gregg Stacy. In recent years, the Box of Hops concept has become even more granular, with some…