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.
OVER THE PAST 20 YEARS, VODKA CON-sumption in the U.S. has nearly doubled, increasing to just under 80 million 9-liter cases in 2021. While the emphasis in spirits circles has been on the success of brown spirits like whisk(e)y and Cognac in recent years, the Nos. 1 and 2 spirits brands nationally are both vodkas: Tito’s and Smirnoff, respectively. However, the category has become a tale of two segments: the domestic market, which continues to showcase burgeoning growth, accounting for 72.5% of the market by volume; and imports, which make up 27.5%, trying to regain lost ground. Suppliers in both segments are focused on expanding their brands through innovation, particularly in the RTD and flavor space. Vodka depletions in the U.S. were down last year by 1% to 79.9 million…
SINCE HITTING A PEAK IN 2015, THE AMERICAN BRANDY CATEGORY HAS FACED HEAD-winds, slowly ceding roughly half a million cases, settling at an estimated 7.03 million cases for 2021, according to Impact Databank. Although the category has seen its share of dif-ficulty in recent years, the major brands are holding firm, with some producers engaging the higher end alongside craft distilleries working to kickstart a once-vital American spirit. “American brandy has been receiving more attention in the on-premise over the last five years, and the activity around acquisitions, new brand introductions, and innovation within legacy players speaks to the opportunity this category represents,” says Meghan Murray, vice president of marketing at Phillips Distilling Co. Though American brandies declined in 2021, returning to roughly the same place they were in 2019,…
WITH THE LATEST WAVE OF THE PANDEMIC RECEDING rapidly in recent weeks, optimism is again on the rise across the drinks business. But as we look ahead to better market conditions, it’s worth noting how impressively the industry has performed through the crisis of the past two years. Vodka, the largest spirits category, was roughly flat in the U.S. last year after a strong bump in 2020, and its longer-term positive trend appears almost unaffected by the worst market disruption of our lifetimes. According to Impact Databank, vodka category volume increased by almost one-quarter from 2011-2021, reaching the 80-million-case mark. That performance includes the addition of more than 10 million cases since 2013. Looking ahead, rebounding on-premise sales and the growth engine of premixed cocktails are likely to further boost…
BEAM SUNTORY IS GETTING INTO hard kombucha. The spirits giant is the lead investor in a new $20 million series C financing round behind the Ventura, California-based Flying Embers brand. Additional investments in Flying Embers were provided by Power Plant Ventures, Quadrant Capi-tal, Monogram Capital Partners, and Beechwood Capital. The new funding will go toward developing a robust national footprint for Flying Embers’ hard kombucha and seltzer, with a particular emphasis placed on marketing and refining their sales infrastructure. Last year, according to the company, Flying Embers grew by 93% and their products currently reach 42 states.…
DWAYNE “THE ROCK” JOHNSON’S TER-emana Tequila has rocketed out of the gate since launching just under two years ago, reaching 640,000 cases in 2021 as it more than doubled in size from a year earlier. Teremana has an-nounced that existing distribution part-ner Mast-Jägermeister has become a strategic investor in the brand, with an eye toward bringing it to new global markets. Financial terms and the size of the stake weren’t disclosed. “We have created a trailblazing, leg-acy partnership with Mast-Jägermeister and have worked closely from a place of shared values, principles and a core belief in the Teremana brand,” said Johnson. “It is now time to make Ter-emana Tequila a true global Tequila brand, to be enjoyed by the people around the world. Moving forward, we will work extremely hard…
REPUBLIC NATIONAL DISTRIBUTING COMPANY (RNDC) has appointed Nicholas Mehall as president and chief executive officer, effective February 1. Mehall succeeds Tom Cole, who will serve as a senior advisor to the company’s board of directors moving forward. Mehall served as RNDC’s chief financial officer since 2017 and is credited with successfully strengthening the company’s financial position, improving RNDC’s investment in technology and leading its recent expansion into new markets. Prior to joining RNDC, Mehall held a number of leadership roles at Diageo, including as SVP of finance for Diageo’s U.S. and Canada Spirits busi-ness. Prior to that, Mehall spent nearly 10 years at KPMG, LLP in Cleveland, London, and metro New York City, holding a number of leadership roles in both the U.S. and U.K. “Nick is a transformative leader…
