Shanken’s Impact Newsletter, the leading source for exclusive data on the alcoholic beverage industry in the United States and internationally. Every issue features up-to-the-minute data and analysis on trends in the worldwide drinks market.
IN 2013, CASAMIGOS TEQUILA LAUNCHED to great fanfare—thanks largely to a glam-orous ownership team led by actor George Clooney and nightlife entrepreneur Rande Gerber. Back then, no one could have imag-ined that the brand would be sold for as much as $1 billion just four years later. Late last month Diageo unveiled its billion-dollar bet on Casamigos—an acqui-sition that includes an initial payment of $700 million, and a further $300 million in performance-based payouts over the next decade. Lee Einsidler, CEO of Casamigos sales and marketing arm Casamigos Spirits, will stay on, and the brand will continue to be run as a separate unit. Casamigos was ini-tially handled by Serrallés USA, but in 2014 it moved to Sidney Frank Importing, where Einsidler was CEO. Sidney Frank was ac-quired by Mast-Jägermeister…
RUM HAS HAD A DIFFICULT COUPLE OF YEARS, WATCHING ON THE SIDELINES AS BROWN spirits and Tequila have taken off, and received the lion’s share of the hype. Since 2013, the overall rum category in the U.S. has declined by some 1.3 million cases. Still, there has been growth in both the flavor and sipping ends, with consumers trading up regardless of the occasion. In the U.S., premium and super-premium brands have been outperforming value labels, with offerings in the $15-plus segment leading the charge. Last year, rum was on the rise in the U.S., but only by 0.2% to 22.8 million nine-liter cases, according to Impact Databank. However, top brands like Diageo’s Captain Morgan (+2.8%), Pernod Ricard’s Malibu (+2.4%), Proximo Spirits’ The Kraken (+5%) and William Grant & Sons’…
BACK IN 2004, SIDNEY FRANK IMPORTING CO.’S $2 BIL-lion sale of Grey Goose to Bacardi Ltd. caused an enormous splash in the industry. At the time, Grey Goose was selling about 1.7 mil-lion cases annually in the U.S. In recent weeks, Diageo made a simi-lar blockbuster acquisition, agreeing to pay up to $1 billion for luxury label Casamigos Tequila, which is expected to reach about 175,000 cases this year. Diageo is targeting 1 million cases for the brand within five years. How times have changed: Diageo’s unexpected move for Casamigos shows not only the impressive rise in valuations of spirits brands over the past decade, but also the company’s faith in the ongoing surge in interest in the Tequila category. Even as Patrón continues to dominate the luxury segment, Diageo…
NEW YORK-BASED IMPORTER BANFI Vintners is pursuing new trends in the U.S. wine market while staying true to its Italian roots. Last year, Banfi de-pleted 3.5 million cases and had sales of $152 million. Excelsior Wines, which Banfi operates as a separate divi-sion in a joint venture with Viña Concha y Toro, saw its U.S. volume hold steady at 3.1 million cases for its portfolio of primarily Argentine and Chilean wines, such as the Casillero del Diablo and Frontera labels. With the U.S. wine market growing more crowded, Banfi is targeting the high end, which is showing the most promise within its portfolio. “We’re try-ing to play in that category of afford-able luxury, and it’s working for us,” says co-CEO and fourth-generation owner of Banfi Vintners, Cristina Mariani May. “We’re…
PERNOD RICARD HAS TAKEN A majority stake in Del Maguey Single Village Mezcal for an undisclosed sum.The transaction is expected to close in the next 90 days. Established in 1995, Del Maguey ($35-$200) offers a range of super-premium mezcals sourced from Mexico’s Oaxaca region, with each expression highlighting the village in which it is made. Under the terms of the deal, Del Maguey’s management team—which includes founder Ron Cooper, Michael Gardner and Steve Olson—and existing Mexico opera-tions will remain in place. Del Maguey, which sells under 50,000 cases in the U.S., according to Pernod, joins Pernod Ricard USA’s New Brand Ventures division, an in-cubation unit established last year that also houses brands including Smooth Ambler, Lot 40 and Aberlour whiskies; Monkey 47 and Plymouth gins; and Lillet aperitif.…
SPIRITS MARKETERS WILL BE ALLOWED TO ADVERTISE THEIR BRANDS DURING National Football League games on a limited basis beginning with the upcoming 2017 season. The NFL will permit its television partners to air up to four spirits ads per game, with no more than two ads appearing in a given quarter or during halftime. The ads cannot feature a football theme and must have a prominent so-cial responsibility message. While beer has long dominated beverage alcohol sports advertising, spirits—whose U.S. ad spend totaled $411 million last year, according to Kantar Media—have been increasing their presence. Wine marketers have also gotten into the act, most notably Deutsch Family Wine & Spirits’ Yellow Tail brand, which recently became the first wine brand to advertise during the Super Bowl in nearly 40 years.…
