Market Watch September 2021

Once upon a time, it was impossible to imagine a Bourbon priced at $35 and above, and that rang true for most spirits. We were told that consumers would never go that high. The result was an industry of timid pricing, until a few brave souls took a chance by unshackling themselves from short-term sales worries and placed upscale products on store shelves. And guess what happened? Consumers began to embrace these products in droves. Over the past year, this premiumization trend seemed destined to collapse amid the economic storm wrought by the pandemic. But it didn’t: The upward value curve has carried on, defying all the odds. Adding value is an issue that touches our most important stories, and this issue’s cover story on Bourbon is a very relevant…

Ste. Michelle Wine Estates Sold… One of the largest winemakers in the U.S. is set to change hands. Ste. Michelle Wine Estates, a driving force behind the development of the Washington wine category, is being sold by corporate parent Altria to New York private equity firm Sycamore Partners in a deal worth $1.2 billion. The all-cash transaction is expected to close in the second half of the year, subject to obtaining financing and other customary closing conditions. David Dearie, the veteran wine executive who became Ste. Michelle’s CEO last fall, told Market Watch sister publication Shanken News Daily that he and his team are slated to stay on post-sale. Sycamore, which specializes in retail and consumer investments, has approximately $10 billion in aggregate committed capital. Altria, whose holdings also include…

Delray Beach, FL: Whiskey Rules At Contemporary American Kitchen Boasting a whisk(e)y collection of more than 900 bottles, Warren opened in June in Southern Florida’s Delray Beach neighborhood. The casual and sophisticated American kitchen is operated by Damn Good Hospitality Group and features a massive library of whiskies, as well as creative cocktails and contemporary American fare. Warren’s owners have been privately collecting prestige whiskies for years, and they’re showcasing them at their new venue. The whisk(e)y menu spans several rare and exclusive labels ($5-$5,000 a 1-ounce pour), including Bourbons by Pappy Van Winkle and Colonel Taylor and 30-year-old Scotches. Warren also has a roster of roughly 20 hand-picked private barrel whiskies and several whisk(e)y flights ($30-$50 for four 1-ounce pours). These are joined by a roster of classic cocktails…

The ImpEx Collection Edition One ImpEx Beverages, the U.S. importer of brands including Kilchoman, Penderyn, Glenallachie, Fukano, and M&H, has launched The ImpEx Collection, an lineup of highly rare spirits that represents the company’s first venture into independent bottling. This inaugural edition of the ImpEx Collection is led by Scotch whiskies aged from 12-40 years, but also includes a world whisky, some single cask rums, and several other spirits. The collection also includes vattings from various casks of fine spirits and small-scale batches of unaged spirits. For more information, visit Impexbev.com. Yamazaki 25 Beam Suntory has relaunched Yamazaki 25 with a new blend of Japanese whiskies. The 43% abv ($2,000 a 750-ml.) bottling is blended from spirits matured for 25 years or longer in American, Spanish, and Mizunara Oak casks…

It’s likely that no other major beer brand was as negatively impacted by the closure of bars and restaurants during the pandemic as Guinness. But with the on-premise channel now in recovery mode, the iconic Irish brew has set its sights on building upon the growth it’s experienced off-premise in the last year and a half, continued product innovation, and uncharacteristic sports marketing tieins, all while supporting bars and restaurants in their reopenings. According to Impact Databank, Guinness volume dropped 13% last year to 11.4 million (2.25-gallon) cases from 13.1 million in 2019. “Guinness is very overexposed to the on-premise channel,” says Nikhil Shah, brand director at Diageo Beer Co. “With Covid-19 lockdowns hitting around St. Patrick’s Day last year, the impact of the pandemic was particularly dramatic for us.”…

Among the thousands of Bourbons available in the Liquor Barn chain in Kentucky, there are few, if any, that are collecting dust. “There’s nothing that’s not hot, nothing that doesn’t move” in the Bourbon sector, according to Jonathan Blue, principal of Liquor Barn and alcohol strategy for e-commerce player Gopuff, which recently acquired the Kentucky retail group. The pandemic did little to temper demand for the whiskey and now, with recovery underway, the long-vibrant segment is still booming. “I see absolutely no cooling off,” Blue says. “It’s as hot as it’s ever been and there’s no end in sight.” In Virginia, Brewer Richardson—who is bar manager for Repeal Bourbon & Burgers in Virginia Beach—is seeing similar traffic. “We’re selling even more whiskey and other spirits than before the pandemic,” says…