Indholdsfortegnelse for April 1-15, 2022 i Shanken's Impact Newsletter

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…

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.…

CHILE’S VIÑA CONCHA Y TORO SAW SALES TOP THE $1 BILLION MARK ON A 9% increase in 2021, bolstered by the company’s premiumization strategy. EBITDA was up 11% to $204 million. In the U.S., Concha y Toro’s sales slipped 3.5% for the full year but rose 4.8% in the fourth quarter. The company’s “Invest” portfolio was up 7.1% for the year, led by Bonterra, Trivento Golden, Cono Sur Organico, Marques de Casa Concha, and Don Melchor. According to IMPACT DATABANK, the Concha y Toro brand family totaled 1.8 million cases in the U.S. last year, with Gran Reserva and Marques de Casa Concha up strongly from small bases.…

KENTUCKY-BASED BARDSTOWN Bourbon Company has been acquired by Chicago-based Pritzker Private Capital for an undisclosed sum. The firm is investing in the distiller alongside members of the Bardstown Bourbon management team and current investors. Bardstown Bourbon president and CEO Mark Erwin and current management will continue to lead the business, which plans to ramp up its production and market presence with the new backing. Known for its custom distilling services, Bardstown distills more than seven million proof gallons annually across 50 different mashbills and 30 brands, and says it’s now among the top 10 U.S.-based whiskey distillers by volume and the largest custom distiller in America. The company’s own branded products debuted in 2019 and are now distributed across 20 markets.…

Nick Mehall joined Republic National Distributing Company (RNDC) as CFO in 2017 after previously serving as SVP of finance for Diageo’s U.S. and Canada spirits business. Prior to Diageo, he spent nearly 10 years at KPMG, LLP in Cleveland, London, and New York City. Effective February 1, Mehall was promoted to president and CEO of RNDC, the nation’s second-largest wine and spirits distributor with projected 2022 revenues of $13 billion and a footprint of 38 U.S. markets. Impact managing editor Daniel Marsteller recently spoke with Mehall to discuss his vision for the future of RNDC. IMPACT: How has your career in the drinks business to date prepared you for the challenge of leading one of the middle tier’s biggest players? Mehall: I’ve had an opportunity to work on the supplier…

•AS PART OF ONGOING EFFORTS TO improve diversity in the wine industry, the Roots Fund, Wine Spectator, and Zachys have partnered on a new wine auction to raise money for the nonprofit organization’s initiatives to help members of Black, indigenous, Latinx, and other underrepresented communities enter the wine industry. The auction, taking place April 27 at the Chelsea Piers Lighthouse in New York City, will feature rare wines and experiences from some of the world’s best-known wineries. Among the Burgundy domaines featured are Dujac, Drouhin, Duroché, de Montille, Thibault Liger-Belair, and Comtes Lafon. Napa Valley names include Heitz, Inglenook, Silver Oak, and Robert Mondavi. •BROWN-FORMAN IS DEBUTING A new cocktail brand, Up Or Over, in select markets. The 375-ml cocktails ($15) are ready to serve up or over ice. They…

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.…

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.…

E.&J. GALLO, THE LARGEST WINE-maker worldwide, has quietly grown into a spirits giant over the past decade, expanding from its initial E.&J. Brandy to field a portfolio including a host of labels at a variety of price points. According to IMPACT DATABANK, Gallo is now the fourth-largest spirits player in the U.S. with annual volume of approximately 20 million cases. The company is rebranding its spirits unit as “Spirit of Gallo,” as it aims to continue asserting itself in the category. “Our founders, Ernest and Julio, didn’t stop with wine,” said CEO Ernest Gallo. “Their initial entry into spirits was brandy, a natural extension from wine. Our commitment to this category continues. Spirit of Gallo offers us the opportunity to highlight our portfolio of spirits, which includes Tequila, rum, vodka,…

PERNOD RICARD HAS BROUGHT Jameson into the RTD market with Jameson Ginger & Lime. The new 6% abv RTD is made using Jameson’s flagship whiskey, lime and ginger flavoring, and sparkling water. The new release hit shelves across the U.S. in 4-packs of 12-ounce cans in time for St. Patrick’s Day. Jameson Ginger & Lime marks the brand’s first RTD in the U.S. and carries a suggested retail price of $15 for a 4-pack. Last year, Jameson exceeded 4 million cases in the U.S., up 13.6%, according to IMPACT DATABANK.…

CANNABIS BEVERAGES ARE A GROWING CATEGORY OF interest in the legal cannabis industry and companies both big and small are working to develop products that can appeal to new consumers and carve out a niche in the rapidly destigmatizing market. As recreational cannabis legalization spreads to more states—18 states have legalized as of this writing, with some markets slated to launch sales within weeks—marketers are looking to cannabis beverages as a product type that can be integrated into group social activities and recapture the dollars of younger consumers who are opting to spend less on beverage alcohol than previous generations. Rapid advancements in cannabis extraction and infusion technology, as well as increased investment in quality ingredients and production, has led to an unprecedented plethora of cannabis drinks options in the…

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…

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…

ONE OF THE BIGGEST CANNABIS DEALS TO DATE WAS ANNOUNCED, AS ILLINOIS-based Cresco Labs has agreed to acquire Columbia Care for $2 billion. Expected to close in the fourth quarter, the deal creates a combined company with pro forma revenue of $1.4 billion and 130 retail stores across 18 markets. Independently, Cresco and Columbia Care today have leading positions in Illinois, Pennsylvania, Colorado, and Virginia, a No.-2 share in Massachusetts, and “a pathway to a top-3 position in New York, New Jersey, and Florida,” Cresco said. “On a pro-forma basis, the combined company will be the largest cannabis company by revenue, the number one wholesaler of branded cannabis products, and the largest nationwide retail footprint outside of Florida,” said Cresco CEO Charlie Bachtell.…

MORE THAN TWO DECADES AGO, WINE SPECTATOR EDITOR and publisher Marvin R. Shanken was granted a rare interview—the first and last of its kind—with the famously private Ernest Gallo, co-founder and chairman of what was then and continues to be among the world’s largest wine companies. The interview, at Gallo’s home in Modesto, Calif., nearly didn’t happen, and the full footage has never before been shown publicly. Now it is exclusively available on WineSpectator.com. Shanken explains that the long-withheld film was “a labor of love,” created as a birthday gift to Gallo, who had turned 90 the month before the interview was filmed (April 20, 1999). “To those that don’t really know Ernest Gallo … he was like the Henry Ford of the wine business,” Shanken said. “He helped create…

JEREMY SHEPHERD WILL BE NAMED senior vice president and president, USA & Canada at Brown-Forman effective July 15. Shepherd replaces John Hayes, who is retiring August 17. In his new role, Shepherd will lead the commercial organization in its largest and most valuable market with a focus on the company’s strategic ambitions, including continuing to grow Brown-Forman’s premium Tequila and whiskey brands, and accelerating its premiumplus brands. Shepherd, a 17-year veteran of Brown-Forman, previously served as vice president, general manager, for the United Kingdom and Ireland. •Onda Tequila Seltzer has named industry veteran Tom Schlachtenhaufen as president and chief commercial officer. Schlachtenhaufen’s 25-year career includes time with Diageo, Stoli, and High West. Most recently he was EVP of sales at Sagamore Spirit, the rye whiskey owned by Under Armour founder…