Innholdsfortegnelse for September 1-15, 2020 i Shanken's Impact Newsletter

DIAGEO HAS AGREED TO ACQUIRE super-premium gin label Aviation and New York-based parent company Davos Brands for as much as $610 mil-lion. The sum includes an initial payment of $335 million and a further potential consideration of up to $275 million based on the performance of Aviation over a 10-year period. Aviation nearly doubled in size to 53,000 cases in the U.S. last year, according to Impact Databank. The brand has been among the upscale labels driving a renaissance in super-premium gin lately. Hollywood star Ryan Reynolds became co-owner and creative director of Aviation in 2018, helping to further expand the brand’s audience. Reynolds will retain an ongoing ownership interest moving forward. “The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to…

JACKSON FAMILY WINES (JFW) IS EX-panding Down Under, inking a deal to acquire Giant Steps winery in Australia’s Yarra Valley in Victoria from founder Phil Sexton. The purchase includes the Sexton and Applejack vineyards, about 75 acres total. Sexton, who is also the winery’s general man-ager, and chief winemaker Steve Flam-steed will remain at Giant Steps, and long-term vineyard contracts will remain in place. The purchase price was not disclosed. The deal is a strategic move for JFW, adding an exciting brand in an emerging category in Aussie wine of fresh, cool-climate wines.…

THE TAUB FAMILY HAS BROUGHT DIS-tribution of its fine wine portfolio in-house in the New York market. Independence Wine & Spirits, the Taub-owned distributor operating in New York and New Jersey, is now the exclusive wholesaler for the Taub Family Selections (TFS) range in the Empire State. The portfolio transitioned from Southern Glazer’s Lauber Fine Wine division. Marc Taub, who serves as president and CEO of both Taub Family Selections and Independence, says the move will bring Taub Family Selections closer to its customers, noting that his early career was spent at his family’s former Premier Wine & Spirits distribution house. “This puts us in a position to talk about our brands with the retail and on-premise first-hand every day,” he told Impact. TFS includes Bertani, Planeta, Trim-bach, Jean-Luc Colombo,…

MINNESOTA-BASED PHILLIPS DISTILLing Co. has named Andy England as its new chief executive. England spent nearly a decade at MillerCoors, where he led a 200-member marketing and strategy department as executive vice president and chief marketing officer. In his new role, England replaces Mike Duggan, who was recently appointed CEO at startup Minnesota distiller O’Shaughnessy. Phillips Distilling owner Brad Johnson highlighted England’s “established track record and breadth of business experience in expanding distribution while delivering growth” as key assets as Phillips looks to boost momentum for its portfolio of spirits including Prairie Organic, UV Vodkas, Revel Stoke Whiskies, Phillips Spirits, and Douglas and Todd Small Batch Bourbon. •Minneapolis-based O’Shaughnessy Distilling Co. has named Mike Duggan as CEO. Duggan was most recently chief executive of Phillips Distilling Co. prior to which…

BACARDI IS MOUNTING A RENEWED push into spiced rum, reintroducing its former Oakheart label in a new in-carnation as Bacardi Spiced. Noting that spiced rum is the only segment of the rum category to show volume growth over the past decade, Bacardi is launching Spiced ($13) nationwide, targeting at-home occasions and both new and existing spiced rum consumers. “We feel the spiced segment poses an untapped opportunity, and we’re confident in our potential to steal share from declining segment leaders,” Bacardi rum vice president Lisa Pfenning told Impact. The company will pro-mote the launch with simple serves like Spiced & Cola, Spiced & Ginger, and Spiced & Pineapple. Bacardi’s name-sake brand rose 1.1% last year to 6.4 million cases in the U.S., boosted by innovation in flavors, premium rums, and…

2020 HAS UNFOLDED IN A WAY FEW would have predicted at the start of the year. Yet many of the consumer trends that have animated the spirits market in recent years are holding true to form or even accelerating, including premiumization and the robust growth of key categories like whisk(e)y and Tequila. Earlier this year, IMPACT recognized more than 30 spirits labels as “Hot Brands” based on their 2019 performances. Each member of that esteemed list demonstrated ongoing volume growth in control states in the first half of this year—at double- or in some cases triple-digit rates. Among the largest spirits “Hot Brands,” top performers like Tito’s, Crown Royal, Jim Beam, and Fireball were all up by more than 10% in control states in the first half, with Tito’s leading…

THE UNITED STATES TRADE REPRESENTATIVE HAS ANNOUNCED THAT IT WILL not escalate the current tariffs on single malt Scotch, single malt whiskey from Northern Ireland, and liqueurs and cordials from the U.K, Germany, Ireland, Italy, and Spain, or wines from France, Spain, Germany, and the U.K. However, the current 25% tariff on those products will remain in place. “The USTR is well aware of the impact these tariffs are having on American businesses and is willfully ignoring the compounding impact of the Covid-19 pandemic on our industry,” said WSWA president Michelle Korsmo. “The USTR has failed to provide relief to a once vibrant U.S. industry desperately in need of relief.” A bipartisan group of U.S. senators called for the removal of tariffs on wine, spirits, and food from the European…

• SANTA ROSA, CALIFORNIA’S EPIC Wines & Spirits has purchased the Pacific Northwest wine wholesaler Vehrs Distributing. While financial details weren’t disclosed, the acquisition expands Epic’s distribution footprint into Oregon, Washington, and Idaho and gives the company full coverage of the west coast. Vehrs will operate independently from Epic and will remain under the guidance of its current COO Shaun Dobbelaere and the rest of the company’s management team. This acquisition—plus its earlier purchase of Pacific Wine Distributors—gives Epic roughly 16,000 accounts, delivering 1.2 million cases annually. Foley Family Wines owner Bill Foley purchased Epic in 2013. • DOMAINES BARONS DE ROTHSchild (Lafite) is launching the second wine from its Domaine de Long Dai estate in China’s Shandong region. The new wine, Hu Yue, is a 2018 vintage blending Bordeaux…

WHILE MUCH REMAINS UNCERTAIN ABOUT THE STATE of the drinks business in the age of Covid-19, the industry continues to forge ahead, catering to the latest consumer tastes with new products and shaping the innovation pipeline to anticipate the trends of the future. IMPACT’s annual “Hot Prospects” list—celebrating the most promising smaller brands in the wine and spirits categories—features a wealth of examples of marketers connecting consumers with products that both fit the current moment and lay the groundwork for future growth. The Hot Prospects roster totals 87 brands, with roughly half of the honorees being new to the list this year—including 23 new award winners in spirits and 25 in wine. On the spirits list, the rapidly expanding RTD cocktail segment boasts multiple winners, as do the thriving Tequila…

NEW YORK-BASED DEUTSCH FAMILY WINE & SPIRITS HAS ONE OF THE HOTTEST franchises in the wine and spirits business in Impact “Hot Brand” Josh Cellars—which had U.S. retail value of approximately $550 million last year, according to Impact Databank—and the company says it’s continuing to fire on all cylinders in 2020, despite the pandemic. According to president Tom Steffanci, Deutsch has seen significant growth not only for Josh, but also renewed progress for Yellow Tail and Layer Cake in the off-premise. In the first three months of Deutsch’s fiscal 2021, which began in April, its two largest brands made rapid gains. Depletions for Josh are up 53%, with the Reserve tier nearly matching the core brand at 52%, from a much smaller base. Yellow Tail is up 16%, amid the…

JOSE CUERVO IS LAUNCHING PLAYA-mar Tequila Hard Seltzer. Made with Cuervo Tequila, the RTDs are launching in lime and grapefruit flavors reminiscent of the Margarita and Paloma cocktails. Playamar is debuting in an initial six states, retailing at $12 a 4-pack of 12-ounce cans. Each can is at 4.5% abv, contains 90 calories, zero sugar, and zero carbs, and is free of glu-ten and artificial flavorings. Lander Otegui, Proximo’s SVP marketing, sees opportunity for Playamar off-premise, where RTDs have been serving as a re-placement for the on-premise cocktail experience.…