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.
THE U.S. WINE MARKET’S PREVAILING trend toward premium price points was on continued display in 2021. The total super-premium segment, defined as $15 and above for a 750-ml. bottle, grew a collective 9.5% in volume last year in the U.S. to 23.1 mil-lion 9-liter case depletions, according to IMPACT DATABANK. In retail sales, the super-premium segment, including imported and domestic offerings, continued its years-long expansion by growing 11.9% to more than $5.7 billion in 2021, far above 2015’s total retail sales of $1.9 billion. Within the U.S. market’s leading premium-plus wines, defined as $10 and above, the most impressive growth was seen among super-premium brands last year, including Meiomi, Bread & Butter, and Decoy by Duckhorn. Premium wines, defined as $10-$15 a 750-ml. bottle, collectively grew 3.7% in 2021 to…
HARD SELTZER HAS REACHED A TURNING POINT. LAST YEAR THE CATEGORY’S LEADING brands pressed on to advance 16%, adding 30 million cases to reach 213.1 million cases overall. Three of the top 13 brands were new, debuting to inaugural sales in excess of 1 mil-lion cases on the strength of their companies’ marketing and distribution clout; two others more than doubled their sales. But those gains were unevenly distributed and heralded a shift in consumer preference from flavored malt beverages to options featuring spirits. Summer is supposed to be hard seltzers’ prime season as consumers congregate outdoors, but they were down 20% in the four weeks ended July 23 and 16% year-to-date, according to Nielsen. That translated into spending on the category falling 14% in the four weeks and 10%…
WITH THE ECONOMY SENDING CONFUSING SIGNALS this year, it’s been an uncertain consumer environment, with some preparing for a recession amid rising interest rates and others more optimistic about a hoped-for “soft landing.” But in the wine trade, one thing remains clear—it’s the premium-plus segment that is driving consumer demand. According to Impact Databank, the total market for table wines in the U.S. slipped 1.7% by volume in 2021, with another small decline projected for this year. But the overall market slowdown is being driven by declines in below-$10 wines, with bottles priced above that mark averaging 5% volume growth over the past five years, and matching that performance in 2021. Domestic wines account for two-thirds of the premium-plus table wine market in the U.S., and they’ve continued to advance…
As vice president, Americas, for the Bacardi rum portfolio, Lisa Pfenning oversees Bacardi Ltd’s largest brand in the U.S. market, where it has annual volume of some 6.8 million cases, according to Impact Databank. In recent years, Bacardi has moved to capitalize on the brown spirits boom to offer aged rum styles to a new generation of discerning drinkers. The largest aged rum in the range, Bacardi Reserva Ocho, grew by 21% to 28,000 cases in the U.S. last year. Impact recently caught up with Pfenning to discuss the progress of Bacardi’s premiumization efforts. IMPACT: What role do you see aged offerings playing within the wider rum category? Pfenning: Premium spirits consumption is on an uptick, including in the on-trade and at-home segments, so it’s clear that the pivot to…
CONSTELLATION BRANDS HAS TAKEN a minority stake in canned wine brand Archer Roose, through the corporation’s venture capital arm and its Focus on Female Founders program. The price and exact stake weren’t disclosed. Last year, Archer Roose shipped 35,000 cases in the U.S. and co-founder Marian Leitner-Waldman tells Impact that the brand is on track to hit 100,000 cases or more in 2022. Currently, Archer Roose’s wines are available in 46 states across the U.S. and are sold in chains like Kroger and Eataly, with a planned expansion into Target coming this fall. Additionally, the brand is served on JetBlue flights. Archer Roose’s porftolio is made up of six canned releases—sparkling white and rosé wines from Italy, an Italian Pinot Grigio, an Argentine Malbec, a Chilean Sauvignon Blanc, and a French…
DIAGEO SAW SALES CLIMB 21% TO £15.5 billion (18.8b) in its fiscal year ended in June, with the company crediting the robust growth to “continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, underpinned by favorable industry trends of spirits taking share of total beverage alcohol and premiumization.” Operating income jumped 26% on an organic basis to £4.4 billion ($5.3b). “Our net sales growth was across categories,” said Diageo CEO Ivan Menezes. “We benefited from the on-trade recovery, continued global premiumization trends, with our super-premium-plus brands up 31%, and from price increases across our regions. I am particularly proud of the performance of Johnnie Walker, which delivered double-digit growth across all regions to surpass 21 million cases globally.” Johnnie Walker has the highest retail value…
