Shanken's Impact Newsletter March 1-15, 2021

EACH YEAR, IMPACT RECOGNIZES THE wine and spirits brands driving the fastest growth across the drinks industry. 2020 may have been a year in which the business faced unprecedented challenges, but you’d hardly know it looking across an Impact “Hot Brand” roster that numbers a full 89 brands—including a whopping 51 spirits labels as well as 23 domestic wines and 15 imported wines—up from 70 winners a year ago. The spirits Hot Brand list is loaded with entrants from the thriving Tequila and whisk(e)y categories, but also details the explosion in the ready-to-drink cocktail segment over the past year. On the wine side, the domestic roster remains heavily tilted toward California, but also includes a number of entries from regions as varied as Indiana, New York, and North Carolina. Among…

THE GLOBAL SPIRITS CATEGORY’S BIGGEST PLAYERS SAW A MIXED PERFORMANCE LAST year, as the Covid-19 pandemic shifted the prevailing balance in favor of off-premise focused brands—many of which enjoyed double-digit growth—while at least temporarily subduing the business climate for labels relying significantly on the on-premise and global duty free markets. Overall, Impact’s Top 100 Premium Spirits Brands Worldwide by volume were down 1.4% compared with the previous year, to an aggregate 390 million cases. Looking longer term, the Top 100’s collective volume has still expanded by 50 million cases—or 15%—since 2015, driven by increasing enthusiasm for premium spirits among the younger generation in both established and emerging markets. The pandemic’s effects have been keenly felt among the spirits industry’s largest brands, with seven of the top 10 labels surrendering volume…

“OUT OF CRISIS, COMES OPPORTUNITY” IS PERHAPS an outworn phrase at this point, and yet it aptly sums up the events of the past year for the wine and spirits franchises recognized in this issue as Impact’s “Hot Brands.” For this illustrious group overcame the unprecedented challenges raised by the pandemic to not only hold their ground but thrive amid a vastly transformed landscape. This year’s crop of Hot Brands numbers 89 awardees, up from 70 labels last year. The increase was most pronounced in the spirits category, which went from 31 winners for 2019 to 51 for 2020. If anything, the pandemic appears to have further galvanized the consumer migration into the spirits sector, with high-flying segments like Tequila, whisk(e)y, Cognac, and premixed cocktails amply represented on the list.…

MOËT HENNESSY HAS ACQUIRED A 50% stake in Champagne house Armand de Brignac, making the international luxury giant an equal partner with rapper and entrepreneur Jay-Z. Terms weren’t disclosed but Moët Hennessy revealed that it would take over global distribution for the Champagne brand following the completion of the transaction. “The strength of the Armand de Brignac brand and quality of its range of prestige cuvées will allow us to take the business to new heights across the world,” said Philippe Schaus, president and CEO of Moët Hennessy. Armand de Brignac has total volume of about 40,000 cases. Armand de Brignac will sit alongside the likes of Veuve Clicquot, Moët & Chandon, Dom Perignon, Krug, and Ruinart in Moët Hennessy’s Champagne stable. Veuve Clicquot and Moët & Chandon lead all…

BEAM SUNTORY POSTED U.S. SALES up 4% in 2020, with on-premise conditions improving over the second half of the year and spirits accruing additional share of the overall beverage alcohol market. Company CEO Albert Baladi said the group benefited from “increased investments in e-commerce and ready-to-drink products” as spirits occasions centered around the new “home-premise.” Globally, Beam Suntory’s sales were roughly flat at approximately $4.6 billion for the year. Beam Suntory’s flagship brand Jim Beam crossed 11 million cases in global volume for the first time last year.…

PERNOD RICARD SAW SOLID GROWTH in the U.S. in its fiscal first half ended in December, with sales increasing 5% on strong gains from the off-premise and e-commerce segments. Other key markets like China and India were also on the rise, but on-trade closures and travel restrictions cut into the business elsewhere, with overall organic sales down 3.9% to €5 billion ($6.1b) and profit from recurring operations dipping 2.4% to €1.6 billion ($1.94b). Pernod said its e-commerce channel in the U.S. surged 84% in the first half, contributing strong momentum to the business. Top-seller Jameson continued to grow despite its high exposure to the challenged on-premise segment, with the brand advancing 10% to cross the 4-million-case threshold for calendar 2020, according to Impact Databank. Malibu rum was also up by…