Shanken's Impact Newsletter

EACH YEAR, IMPACT’S ANNUAL ROSTER of “Hot Prospect” brands recognizes the upand-coming labels across the drinks business. This year, a total of 99 brands from the wine, spirits, and RTD cocktail categories met Impact Databank’s criteria to make the list. To qualify as Hot Prospects, brands must have achieved at least 15% depletions growth for 2021, while also showing consistent growth in the two preceding years. For spirits, imported wines, and RTDs, brand volumes must be between 50,000 and 200,000 cases, while domestic wines are between 50,000 and 250,000 cases. This year’s class of spirits Hot Prospects draws from 13 different categories, totaling 44 awardees. Given current trends in the spirits world, it’s no surprise that 12 whiskies and seven Tequila brands earned Hot Prospects status. While the Hot Prospects winners…

AFTER AVERAGING LOW SINGLE-DIGIT GROWTH FROM 2010-2020, VOLUME FOR THE TOP 10 spirits marketers globally surged 11.6% to a collective 685 million 9-liter cases last year, according to Impact Databank. With that performance, the 10 largest spirits players globally pushed their market share past 50% for the first time in memory, and the numbers are even more impressive in light of the fact that they exclude volume from the burgeoning RTD category. The share of the top 10 had actually slipped slightly from 2015 to 2020, as the entire industry reeled from the shutdown of the on-premise amid the outbreak of the pandemic. Last year represented a clear return to form, as consumers rejoined the on-premise market in large numbers and the spirits category continued to premiumize, with all members of…

IT’S BEEN ONE OF THE MOST CHALLENGING PERIODS in history to launch a new drinks brand over the past few years, as the pandemic temporarily shuttered the on-premise and consumers gravitated to tried-and-true options. But that hasn’t stopped a host of small but promising brands across the business from gaining impressive traction. Impact’s “Hot Prospect” award winners total 99 brands across the wine, spirits, and premixed cocktail categories this year. The spirits contingent accounts for nearly half the overall list, as consumers continue to tilt toward that category in both the on- and off-premise markets. The Tequila and whisk(e)y segments lead the way among the spirits Hot Prospect winners, but they’re joined by an eclectic mix of labels from other categories including rum, gin, vodka, liqueurs, Cognac, and mezcal. California, meanwhile,…

BEAM SUNTORY SAW GLOBAL SALES grow 13% in its fiscal first half ended in June, boosted by “stronger than expected demand in key markets and excellent performance for premium brands,” according to the company. Sales rose 25% in the first half of this year compared with the same period in pre-pandemic 2019. Beam Suntory saw double-digit growth across a number of key global markets, including the U.S., where the company recently upped its alliance with leading distributor Southern Glazer’s to 43 markets nationally. Overall North America sales grew by 13%. Maker’s Mark and Basil Hayden Bourbons drove growth for the company in the first half with strong double-digit gains, alongside The House of Suntory’s Roku Gin and Toki Japanese Whisky. Yamazaki, Knob Creek, Laphroaig, Bowmore, and El Tesoro Tequila were also…

TREASURY WINE ESTATES SAW SALES SLIP 1% ON AN ORGANIC BASIS TO A$2.5 billion ($1.7b) in the year through June, as the company battled exorbitant tariffs in China and reshaped its portfolio toward the premium end of the market. EBITS increased 4.4% to $524 million ($363m), as net sales revenue per-case advanced 8%. Treasury’s premium and luxury portfolios now contribute 83% of net sales, up from 77% a year ago. The group’s Treasury Americas unit posted organic growth of 12% to A$963 million ($667m) despite a volume decline of 3% to 8 million cases. Growth was led by labels including Beringer, Stags’ Leap, Matua, and 19 Crimes. Matua and recent acquisition Frank Family Vineyards were among the brands seeing price increases over the course of the year. That helped Treasury Americas’…

CONSTELLATION HAS ADDED AN other wine label under The Prisoner Wine Co. The newcomer, called Blindfold, will feature white wine expressions from North Coast vineyards and appellations. Its first offering is a Sonoma County Blanc de Noir retailing at $35. The Blanc de Noir is made from early harvest Pinot Noir grapes that go direct-to-press, blended with Viognier and Gewurztraminer. Constellation says the goal is “to disrupt the white wine category the same way that The Prisoner did with the red category.” Blindfold will roll out across the country in the coming weeks. It joins The Prisoner’s eponymous brand, as well as Saldo and Unshackled in the brand family. The Prisoner grew 18% to 267,000 cases in the U.S. last year, according to Impact Databank, while Unshackled was up 30% to…