Shanken’s Impact Newsletter, the leading source for exclusive data on the alcoholic beverage industry in the United States and internationally. Every issue features up-to-the-minute data and analysis on trends in the worldwide drinks market.
COGNAC’S GLOBAL GROWTH CONTINUED its upward trajectory last year, with total volumes up 2.5% to 16.7 million cases, according to IMPACT DATABANK. The U.S. remains Cognac’s No.-1 market by volume and is seeing the most robust gains, with depletions rising by 6.5% to 6.5 million cases last year. By value, too, the U.S. dominates Cognac exports, with some €1.522 billion ($1.8b) worth of the spirit shipped stateside in 2019. Key to Cognac’s ongoing growth in both the U.S. and abroad is innovation, particularly on the craft and luxury side, as well as with cocktails and more targeted online efforts to reach a wider audience. Though Covid-19 has deeply impacted the spirits industry—and the effects on overall growth remain to be seen—many Cognac producers remain optimistic, and have seen their brands…
THE READY-TO-DRINK (RTD) CATEGORY HAS QUICKLY EMERGED AS THE FASTEST- growing beverage alcohol space in the U.S. After tripling in its growth rate last year, RTDs remain on fire, partly fueled by pandemic shifts to off-premise sales, the skyrocketing popularity of canned beverages, and the convenience the products provide. Even more impressive gains appear to be in store, with particular opportunity for canned cocktails as well as premium brands in the on-premise as those accounts reopen. “The at-home daytime drinking occasion has been a trend on the rise for quite some time, and now more than ever consumers who are drinking at home are shying away from creating drinks with complex ingredients in favor of easy-to-enjoy options,” says Krista Kiisk, Smirnoff brand director. Marketers have responded with an onslaught of…
WHILE MUCH HAS CHANGED ACROSS THE BEVERAGE alcohol landscape this year, we’ve also witnessed a continuation of some very promising longer-term trends. Examples of the latter include the skyrocketing growth of both Cognac and ready-to-drink cocktails. Each of those categories has consistently been at the forefront of off-premise growth in recent months, and collectively they’ve contributed a strong share of the gains in the retail spirits segment that has done so much to help offset the on-premise decline. According to IMPACT DATABANK, Cognac shipments to the U.S. have more than tripled in value since 2010, topping $1.8 billion in 2019 on a 25% increase. The U.S. has been the tip of the spear for Cognac exports globally, which nearly doubled to $4.1 billion over the same time frame. Hennessy has…
Within a portfolio that includes multi-million-case spirits giants like Jameson Irish whiskey and Absolut vodka, it’s easy to forget that Pernod Ricard USA has wine volume of nearly 2 million cases annually. While top brand Jacob’s Creek is fighting uphill in the Australia category, Pernod has seen strong gains for brands like G.H. Mumm Champagne and Spain’s Campo Viejo lately, with the latter earning Impact “Hot Brand” honors earlier this year after roughly doubling in size to more than 300,000 cases over the past three years. Impact managing editor Daniel Marsteller recently spoke with James Slack, SVP of Wine, Champagne, and Prestige at Pernod Ricard USA, to hear about what’s ahead for the wine portfolio. IMPACT: How are conditions, broadly speaking, for Pernod’s key Champagne and wine brands? Slack: Ultimately,…
DELIVERY STARTUP GOPUFF, REcently valued at $3.9 billion, has agreed to acquire West Coast retailer BevMo for $350 million. The purchase gives the company a presence in California and dramatically ups its profile in the booming beverage alcohol e-commerce sector. Founded by Drexel University college students Rafael Ilishayev and Yakir Gola in 2013, GoPuff is head-quartered in Philadelphia and operates 200 micro-fulfillment centers servicing over 500 U.S. cities. It offers 24/7 de-livery of everything from food and drink to cleaning supplies, home needs, and over the counter medications—as well as alcohol in select markets—for a flat $1.95 fee. GoPuff says the acquisition will see BevMo customers gain “access to instant delivery of alcoholic beverages as well as everyday items across GoPuff’s rapidly expanding product inventory.” BevMo has 161 stores on…
THE EUROPEAN UNION HAS EXpanded tariffs on American goods including wine and spirits, and 20 trade associations, including DISCUS and WSWA, among others, have released a statement imploring the EU to abandon this escalation. While American whiskies are already under tariffs in the E.U., the new round of 25% levies includes American rum, brandy, vodka and vermouth. Despite the new tariffs, European Union officials expressed hope that trade tensions could be ratcheted down on both sides moving forward following the U.S. presidential election.…
