Market Watch June 2021

We all know how much the pandemic boosted off-premise drinks sales last year. For a retail giant with the scale of Costco Wholesale Corp., that growth was even more mind-boggling, with its 2020 U.S. beverage alcohol sales hitting nearly double the projections from the start of the year. To give an idea of what that means, consider that Costco’s global beverage alcohol sales topped $5 billion in 2020 (yes, you read that right). That was up from $4 billion in 2018, and a mere $2.3 billion back in 2010. Wine still comprises the lion’s share of Costco’s beverage alcohol sales at around half the total, compared to its 25% share a decade ago. Spirits, meanwhile, account for 30% of the pie, up from 25%, and beer and seltzer comprise the…

Boston Beer To Develop Cannabis Drinks….The Boston Beer Co. is establishing a new research and innovation hub in Canada that will focus on non-alcoholic cannabis beverages. The company has hired industry veteran Paul Weaver to lead the Canadian subsidiary business, where he will focus on developing and piloting cannabis drinks in advance of federal legalization in the U.S. The development comes nearly two years after CEO David Burwick told CNBC the company was looking at cannabis drinks. “We’re not going to be the first one in, but we’re going to study and learn,” he said at the time. “Innovation is core to what we do,” Burwick says. “We believe non-alcoholic cannabis-infused beverages represent a new frontier of innovation and we want to be ready for any and all future opportunities…

Canadian cannabis producer Canopy Growth has partnered with Southern Glazer’s Wine & Spirits (SGWS) to bring its CBD drinks portfolio to the U.S. The partnership begins with Quatreau, Canopy Growth’s top-selling CBD drink in Canada, which recently launched stateside. Quatreau is a line of sparkling water with four flavors: Cucumber & Mint, Passionfruit & Guava, Blueberry & Acai, and Ginger & Lime (all $4 a 12-ounce can), all containing 20-mg of CBD. SGWS will bring Quatreau to seven states initially, including Arizona, Florida, Nevada, and Oregon, among others, with expansion to additional states planned in the months ahead. This partnership with a leading, national distribution company like SGWS—which is projecting annual revenue of $21 billion this year—marks a turning point for the distribution of CBD products in the U.S. The…

Nashville: Boutique Hotel Unveils Upbeat Drinks Den Southern charm and a lively atmosphere make Sidebar a destination venue in Nashville’s Bode hotel. The bar opened in April with a menu of classic and seasonal cocktails, small plates, and live music. Beverage director Meg Hoberg, a Nashville native, worked with Los Angeles-based hospitality firm New School to craft a menu that includes specialties like the Wallflower, mixed with Hendrick’s gin, Angostura Aromatic bitters, bergamot oil, jasmine simple syrup, lemon juice, hibiscus tea, and egg white, and the Romero, comprising Corazón Reposado Tequila, lime and cranberry juices, and house-made toasted black peppercorn syrup, topped with torched rosemary (signature cocktails are $12). Sidebar also lists a variety of craft beers, including local offerings by Wiseacre Brewing, Yazoo Brewing, and a special private collaboration…

Highland Park 50-Year-Old Highland Park, part of the Edrington portfolio, has unveiled a new ultraluxury single malt. The 43.8% abv Highland Park 50-year-old ($30,000 a 750-ml.) was selected from nine refill casks originally laid down in 1968, married together in 2008, then re-racked into a handful of first-fill Sherry seasoned oak casks. Then, after a further 12 years of maturation, one of these limited casks was selected and married with a small quantity of the whisky from the last 50-year-old released by the Orkney-based distillery. Highland Park 50-year-old is an extremely limited release of 274 bottles each signed by master whisky maker Gordon Motion. For more information, visit Highlandparkwhisky.com. Laphroaig 10-Year-Old Sherry Oak Finish Beam Suntory-owned Laphroaig has announced a new limited edition 10-year-old single malt Scotch whisky finished in…

In the world of wine retail, few companies can compete with Costco Wholesale Corp. Amid a tumultuous year of navigating a changing retail climate during a global pandemic and new leadership at the head of its beverage alcohol sector, the big-box retailer could have easily suffered during 2020. Instead, Costco’s beverage sales continued to grow. The mega-company has been a leader in off-premise beverage sales for years and, like many of its competitors, Costco saw huge gains last year as buying trends shifted heavily toward retail during the height of the Covid-19 pandemic. “Alcohol sales were very strong in 2020 and we’re continuing to see healthy double-digit increases,” says Chad Sokol, Costco’s assistant vice president and general merchandise manager for beverage alcohol. “We believe we will continue to have robust…