Market Watch January/February 2019

In this issue, we track progress for two of the wine world’s most famous stars: Bordeaux and Australia. In Bordeaux’s case, the export market became overheated about a decade ago—mainly due to inflated demand in China. After that boom fizzled, it took a while for Bordeaux to shake the hangover. In the meantime, millennials in the U.S. moved on to other drinks categories, and a generation was in danger of being lost forever. But Bordeaux is a cyclical business that always bounces back, and right now it’s quietly experiencing a remarkable growth run in the U.S. market. By volume, Bordeaux imports into the U.S. are more than 40% higher than they were a decade ago, and the category is up more than 50% by value. It’s true that today’s en…

Constellation Positioned To Sell Off Wine Brands…. Last fall, multiple reports surfaced that Constellation Brands is exploring a selloff of several wine labels—among them Clos du Bois, Cook’s, Arbor Mist, and Mark West—as it looks to premiumize its portfolio. In a statement to Shanken News Daily, Constellation declined to confirm that a sale is in the works, noting only that it’s “considering a variety of potential options to optimize and continue to grow our wine portfolio and profitability.” The brands in question are valued at up to $3 billion and combine for annual pre-tax earnings of $260 million. From a volume perspective, Arbor Mist, Cook’s, and Clos du Bois are among the largest brands in the portfolio, but only Clos du Bois retails at above the $10 mark, where the…

San Diego: City Welcomes French-Themed, Post-Prohibition-Era Bar San Diego’s historic U.S. Grant Hotel brought back a classic in late October with the unveiling of Rendezvous, a French-themed, post-Prohibition-era bar that has been reimagined. The new bar honors its long-lost predecessor, Rendezvous, The Wonder Bar, which opened in 1933—the year Prohibition was repealed—in the same spot. The modern iteration takes many cues from the original, from vintage décor to sofa-style seating and communal tables. A roaming cocktail cart serves tableside drinks like the traditional Manhattan and Vieux Carré, as well as the Golden Rooster, which mixes Bastille 1789 single malt whisky, Green Chartreuse liqueur, Hardy Le Coq d’Or Pineau des Charentes, and Bittermens TransAtlantic bitters (drinks from the cart are $16). Standard bar-front cocktail service and largeformat punches are also available…

AS PICTURED: 1. Model Alex Lundqvist and actress Keytt Lundqvist attended a cocktail party hosted by England’s 8th Earl & Countess of Carnarvon of Highclere Castle in celebration of the soon-to-be launched Highclere Castle gin at the Soho Grand Hotel in New York City on November 14. 2. Eighth-generation Hennessy family member Maurice Hennessy and investor and television personality Daymond John visited the Hennessy X.O Holiday Personalization Studio pop-up experience at Grand Central Station in New York City on November 30. 3. Huston Wells, Franklin County, Kentucky’s judge-executive, presided over the 20th annual “Lighting of the Trace” at Buffalo Trace Distillery in Frankfort, Kentucky on November 29. 4. Working together as the Fenghuang Fighters, bartenders Caer Ferguson and Sharon Yeung won Espolòn Tequila’s annual COCKtail Fights Tag Team National Championship…

Basil Hayden’s 10-Year-Old Bourbon Beam Suntory has extended its Basil Hayden’s brand with a limited-edition 10-year-old release. Basil Hayden’s 10-year-old Bourbon ($60 a 750-ml.) is bottled at 40% abv and is expected to return on an annual basis during the holiday season. The Bourbon is available nationwide. For more information, visit Basilhaydens.com. Knob Creek Twice Barreled Rye Beam Suntory also extended its Knob Creek brand with the limited-edition Twice Barreled rye. The new label features a base of Knob Creek’s flagship straight rye that’s finished in new, charred American oak barrels prior to bottling at 50% abv. Knob Creek Twice Barreled rye ($55 a 750-ml.) is available nationwide. For more information, visit Knobcreek.com. Patrón Estate Release Bacardi is adding a new expression to the Patrón Tequila lineup. Patrón Estate Release…

Svedka Amid highly competitive conditions in the vodka category, Constellation Brands is backing Svedka—the fourth-largest vodka brand in the U.S. at 4.4 million cases, according to Impact Databank—with a new “Bring Your Own Spirit” campaign. The multi-million-dollar push marks the Swedish import’s first national campaign in a half-decade. Comprising TV, digital, and social components, the ads are designed to appeal to a young, participatory audience by encouraging them to interact with Svedka and assert their individuality. “We’re confident that ‘Bring Your Own Spirit’ will resonate heavily with a millennial audience, while also speaking to consumers who seek a brand with authenticity, originality, and a diverse mindset,” says CMO Jim Sabia. Svedka, which retails in the $10-$15 segment, has continuously expanded—adding 400,000 cases to its U.S. total over the last four…