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.
EACH YEAR, IMPACT’S ANNUAL “HOT Brand” awards celebrate the fastest-growing brands across the drinks business. This year, a total of 96 brands from the wine, spirits, and RTD cocktail categories met Impact Databank’s stringent criteria to make the list. There are three different ways to qualify as an Impact Hot Brand: a contender must have shown double-digit growth in each year from 2019-2021, or be an established player with at least 15% growth in 2021, or else be a top 10 brand with at least 5% growth in 2021 and 15% growth since 2018. The minimum volume requirement for spirits and imported wines is 200,000 cases, while domestic wines and RTDs must meet a threshold of 250,000 cases. This year, 43 spirits brands were awarded Impact Hot Brand honors, bringing…
AFTER ENDURING A PANDEMIC-DRIVEN DECLINE IN 2020, THE WORLD’S BIGGEST SPIRITS players came roaring back in 2021, boosted by a resurgent on-premise market and pent-up consumer demand. In 2020, Impact’s Top 100 Spirits Brands Worldwide by volume had surrendered more than 11 million cases collectively amid lockdowns in the early part of the pandemic and depressed on-premise conditions throughout the year. By contrast, last year was characterized by a broad reopening of the on-premise, which was accompanied by ongoing strength at retail. As a result, the Top 100 tacked on an aggregate 36.9 million cases in volume in 2021, with its membership now accounting for 422 million cases overall on annual growth of 9.6%. Not only did the Top 100’s performance last year far surpass that of pre-pandemic 2019; it also…
THE PAST FEW YEARS HAVE BEEN AMONG THE MOST challenging periods in memory for the drinks business, as a global pandemic, economic uncertainty, and logistical issues have raised hurdles for even the most stalwart brand franchises. But as Impact’s annual “Hot Brands” honor roll illustrates, a host of high-performing labels continues to soar to new heights. Impact’s “Hot Brand” award winners total 96 brands across the wine, spirits, and premixed cocktail categories this year. The spirits contingent accounts for nearly half the overall list, as the category continues to steal share from other parts of the drinks market. The Tequila and whisk(e)y segments have been at the forefront of these share gains, and both are amply represented among Hot Brands. In size, the spirits Hot Brands range from Tito’s at…
CONSTELLATION BRANDS AND EN ergy drink player Monster Beverage are reportedly involved in ongoing talks toward a potential merger that could result in a combined company with market value of $90 billion. The two companies could reach a deal within weeks if the talks continue progressing smoothly, Bloomberg reported. Reports of a tie-up between Monster and Constellation emerged last November. Coca-Cola is a major shareholder of Monster, which recently entered the beverage alcohol sector with a $330 million purchase of craft brewer Canarchy. Coca-Cola and Constellation are already collaborating on spiritbased premixed cocktails under the Fresca Mixed brand. In addition to deepening Coca-Cola’s involvement in beverage alcohol, a Monster-Constellation merger would give Coke exposure to cannabis via Constellation’s 40% stake in Canopy Growth.…
FOLLOWING AN EXECUTIVE ORDER from the president last year, the U.S. Treasury Department has issued its widely-anticipated report on competition concerns in the beverage alcohol sector. The report identifies two trends shaping the business over the long term—the proliferation of small producers and the consolidation of distributors—while putting forth a set of recommendations aimed at promoting competition and market access for smaller players moving forward. Broadly, the report urges the Department of Justice (DOJ) and Federal Trade Commission (FTC) to “vigorously enforce the antitrust laws, while continuing to examine their approach to horizontal consolidation and to evaluate the effectiveness of their remedies in the alcohol markets.” More specifically, it asks those agencies to “consider the effects on distribution stemming from the acquisition of craft brewers by major brewers,” “to apply particular…
PERNOD RICARD POSTED A BUOYANT SET OF RESULTS FOR ITS FISCAL FIRST half ended in December, with sales up 17% to €6 billion ($6.8b) and profit from recurring operations jumping 22% to €2 billion ($2.3b). Both measures were up strongly against pre-pandemic levels as well, increasing 13% and 20% respectively. Growth was robust across the French drinks giant’s global business, with U.S. sales rising 9% year-on-year and 17% compared with pre-pandemic levels. Pernod credited “a strong on-trade recovery and resilient off-trade” as driving gains for brands including Jameson and Redbreast Irish whiskies and Martell Cognac, as well as its American whiskey portfolio, which includes Jefferson’s, Rabbit Hole, Smooth Ambler, and TX. Jameson unveiled a new orange flavor expression during the first half, while Martell was boosted by a new campaign starring…
