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.
AMID A RAPIDLY CHANGING MARKET characterized by new consumer trends and a host of challenges ranging from the supply chain slowdown to inflation to the pandemic, the U.S. market’s wholesale tier continues to see sales churn forward. According to Impact Databank, the total wholesale market for wine and spirits in the U.S. is projected to grow 5% this year in value terms to just under $70 billion, up from approximately $66 billion in 2021. The distributor tier’s top players have been taking an outsized share of the market’s growth, with the 10 largest wholesalers nationwide projected to account for a combined market share of 78.5% this year, compared with their 75.2% share in 2021. That trend looks set to continue, as the leading companies continue to expand both organically and…
THE RUM CATEGORY HAS DELIVERED AN UNEVEN PERFORMANCE LATELY, WITH SEVERAL brands experiencing swift growth, while the rest of the segment has been in decline. In the U.S., the category’s top market by volume, rum consumption continued to struggle last year, falling 1.5% to 23 million 9-liter cases. However, pockets of growth have emerged, particularly in the premium-and-above segment. Rum marketers have also been leveraging the spirits-based RTD sector, releasing branded, single-serve extensions in the last two years. Like vodka producers, rum distillers have taken the opportunity to use these RTD expressions as ambassadors for their flagship labels. Concurrently, premium extensions from brands like Appleton and standalone labels like Plantation and Diplomático have helped elevate the category, actively courting whisk(e)y drinkers with aged liquid, limited-edition bottlings and unique cask finishes.…
AFTER A SURGE IN VOLUME IN 2020 AS CONSUMERS loaded their pantries during the initial outbreak of the pandemic, it was unclear how much upside the wine and spirits market would have in 2021, especially amid challenges in the supply chain and rising inflation. But the wholesale tier of the wine and spirits industry ended up posting solid 5% growth last year, with revenues reaching nearly $70 billion, up from approximately $66 billion in 2020, according to IMPACT DATABANK. The wholesale tier’s major players have been the driving force behind this growth, with the top 10 distributors projected to account for 78.5% of overall middle tier revenues this year, increasing from a 75.2% share in 2021. Market leader Southern Glazer’s continues to reach new heights, with its revenues projected to…
DIAGEO HAS ANNOUNCED PLANS TO build a new C$245 million ($190m) distillery in Canada for Crown Royal. The facility will have capacity of 10.5 million proof gallons annually, and will sit on approximately 400 acres in Ontario’s St. Clair Township. The site will include blending and warehousing operations in addition to the distillery. The carbon-neutral distillery will operate with 100% renewable energy and contribute zero-waste to landfill from all direct operations. According to IMPACT DATABANK, Crown Royal had U.S. volume of 7.3 million cases last year, including its flavored whiskies, and has been one of the fastest-growing brands in the spirits category over the past half-decade, during which it has tacked on about 1.6 million cases. It’s also one of only three spirits brands—the others being Hennessy and Tito’s—with U.S.…
THE U.K. IS LIFTING ITS 25% TARIFFS on American whiskey stemming from a larger dispute over steel and aluminum tariffs between the two countries. The move is effective June 1. According to DISCUS, since the imposition of the 25% retaliatory tariff on American whiskeys, exports to the U.K., the category’s fourth-largest market, have declined by 42%, from $150 million to $88 million (2018-2021). “The removal of tariffs on American whiskey and other U.S. exports creates more opportunities for the continued international growth of our American-made products,” Brown-Forman stated.…
THE WINE GROUP IS INTRODUCING new innovations on two brands that combine for nearly 6 million cases in the U.S. market. They include a new Signature Sweets range under the Cupcake brand, as well as Lemonade Stand at Main & Vine, a new offshoot of Beringer Main & Vine, which was among the labels The Wine Group gained from Treasury Wine Estates last year. According to IMPACT DATABANK, Cupcake’s full portfolio totaled 2.9 million cases in the U.S. in 2021, while Beringer Main & Vine was at approximately 3 million cases. The Wine Group CMO Jeff Dubiel tells Impact that the two new lines are aimed at “sweet seekers,” a demographic that is buying across a variety of price points and driving big gains in the fruitflavored wine segment. “Over…
