Innholdsfortegnelse for January 1-15, 2021 i Shanken's Impact Newsletter

THE DRINKS INDUSTRY HAS FACED ITS share of challenges lately, and as it turns out, 2020 had one more surprise to deliver before giving way to 2021. U.S. Trade Representative Robert Lighthizer has announced new 25% tariffs on Cognac and certain non-sparkling wines from France and Germany, effective January 12. Cognac has been a key growth driver in the U.S. spirits market lately, with the upscale category surpassing 7 million cases for the first time ever last year, according to IMPACT DATABANK. “These tariffs not only harm E.U. spirits producers, they also disrupt and negatively impact the entire U.S. hospitality industry supply chain,” DISCUS said in a statement. “Hospitality businesses and our consumers, as well as producers, wholesalers and importers of distilled spirits are collateral damage in a dispute wholly…

DEUTSCH FAMILY WINE & SPIRITS HAS SOLD THREE WINE BRANDS TO NATIONAL importer and supplier Total Beverage Solution for an undisclosed sum. The brands include Eppa Sangria, Skyfall Vineyards and Ruta 22 and total just under 100,000 cases in volume. “We are constantly evaluating our portfolio through the lens of our new fiveyear strategy. This decision will help drive our ambitious growth aspirations in Low Lux Wines and Super Premium Spirits by creating space and organizational focus both internally and within our wholesaler network,” said Deutsch Family Wine & Spirits president Tom Steffanci. Of the three brands, Washington state-based Skyfall is the largest at 39,000 cases, carrying a suggested retail price of $14 a 750-ml. Eppa Sangria, produced in Mendocino, California, retails at around $11 and has current volume of…

Wine industry veteran Stephanie Honig has been an early advocate for the cannabis industry in California wine country, co-founding the Napa Valley Cannabis Association (NVCA) and serving as its president. While NVCA’s efforts to extend Napa Valley’s fame into the cannabis category by allowing commercial cultivation have yet to bear fruit, the organization is pushing forward, confident that cannabis has a role to play in the valley’s future. Shanken News Daily Cannabis Edition recently caught up with Honig to get her views on the emerging cannabis segment and hear about why she believes the widespread rollout of cannabis beverages in particular will be a game-changer for the category. SNDC: Why do you see cannabis beverages as a key opportunity moving forward? Honig: According to a report by Grand View Research,…

AFTER A FRENETIC AND HIGHLY CHALLENGING YEAR in the drinks business, the sun has finally set on 2020 and we’re off and running into 2021. With vaccines being distributed around the world to combat the pandemic, business prospects appear brighter now than at any time since early last year. While a full recovery—especially for the on-premise—remains a ways off, the early numbers show that key spirits brands continued to connect with consumers throughout the pandemic, which necessitated a massive shift to the off-premise. According to Impact Databank, the top 25 spirits franchises by volume in the U.S. jumped by an estimated 14% to an aggregate 110 million 9-liter cases last year, comprising nearly 44% of the total spirits market. Tito’s attained the top slot among all spirits in volume terms…

REPUBLIC NATIONAL DISTRIBUTING CO. HAS ANnounced that board member and industry legend Alan Dreeben is retiring. His son-in-law Marc Sachs has taken his place on the board. “I am proud of all we accomplished at RNDC,” Dreeben said. “We became a national powerhouse while maintaining our commitment to our suppliers, customers, and associates. Through it all, we maintained the family-focused environment and continue to grow to be the national distributor of choice.” “Alan’s contributions to the industry are unsurpassed,” said RNDC president and CEO Tom Cole. “I have known him and his wife Barbara my entire career and he made a significant impact on me from the beginning. I wish him well in his retirement and thank him for helping put RNDC on an accelerated growth trajectory. Alan will be…

SINCE ITS LAUNCH IN 2013, TREASURY Wine Estates’ (TWE) 19 Crimes label has garnered a widespread following, boasting volume of more than 1.6 million cases, according to Impact Databank. The brand has stayed strong through the pandemic, with value and volume up 39% and 38% respectively in IRI channels in the year-to-date through November 29. The launch of a new offshoot last summer—Snoop Cali Red ($12 a 750-ml.)—has provided additional momentum, far exceeding expectations. “Snoop Cali Red has done amazingly well. It’s the No.-1 new wine item launched in 2020, according to IRI,” says TWE vice president of marketing John Wardley. “We’re continuing to build distribution, with every week getting bigger than the last.” In the first 15 weeks of its launch, Snoop Cali Red sold some $10 million of…

PAUL HOBBS WINE HAS NAMED JOE Rance as director of national sales. Across a nearly two-decade career in the industry Rance has held management and sales positions for companies such as Terlato and Huneeus Vintners. In his new role, Rance will lead the U.S. commercial strategy for the Paul Hobbs Wines and Paul Hobbs Selections portfolios, managing the company’s national sales team and network of fine wine distributors. He is based in Dallas, Texas. • Joe Glunz Jr. has been named CEO of Illinois-based importer and distributor Louis Glunz Wines. The 27-year company veteran was previously president and executive vice president of sales and marketing. Replacing Glunz as president is John Samaritano, who rejoins the company after most recently serving as regional manager of luxury wines at Constellation. Meanwhile, Stacy…

SOLID GROWTH IN AGAVE SPIRITS AND GIN HAS DRIVEN PROGRESS FOR SOnoma-based 3 Badge Beverage Corp recently, with its Bozal mezcal, Pasote Tequila, and Uncle Val’s Botanical gin labels leading the way. The largest of the three brands, Uncle Val’s, is estimated to have finished the year with shipments up 6% to 33,000 cases. Bozal, which has benefited from increased interest in the mezcal category, rose an estimated 37% to nearly 17,000 cases, while Pasote is is estimated to have jumped 24% to more than 6,000 cases.“Our shipments were generally flat at midyear, growing at roughly 3% over the prior year’s first half,” said 3 Badge president August Sebastiani. “As we entered Q3, markets slowly started re-opening and shipments continued their healthy summer trend. We saw 14.9% growth in our…

IT’S BEEN A LONG TIME COMING, BUT E.&J. Gallo has closed its acquisition of more than 30 wine brands and five wineries from Constellation Brands. The final price was approximately $810 million, consisting of approximately $560 million in cash paid at closing and up to $250 million in earnouts if brand performance targets are met over a two-year period following closing. The acquisition includes well known wine brands such as Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange, and Wild Horse that will join the Gallo portfolio. With the acquisition, Gallo will also expand its operational footprint with the addition of five wineries located in California, Washington, and New York, along with Constellation’s Polyphenolics business. Gallo is also acquiring the Nobilo New…

WILLIAM GRANT & SONS HAS REvealed that its turnover increased 7.5% to £1.43 billion ($1.92b) in 2019, generating profits up 20.7% to £314 million ($424m). But the company says that the pandemic and resulting economic deterioration stunted progress in 2020, “causing major disruption for the business, the spirits industry, and society as a whole.” William Grant currently estimates that its 2020 performance will show a sales decrease of “around 15% and, despite significant reductions in advertising spends and other costs, a decline in profit after tax of over 30%.” William Grant & Sons’ U.S. volume is estimated at 3 million cases, according to IMPACT DATABANK. “The performance during 2019 delivered another year of growth with a continued focus on our premium brands even in the face of increased competition from…

San Francisco-based spirits importer, marketer, and producer Hotaling & Co. was founded in 1993 as an offshoot of Anchor Brewing Co. In 2017, the brewing side was sold to Sapporo for $85 million, and Hotaling became a stand-alone spirits play. Hotaling has been bolstering the portfolio, taking on the single malt Scotch brands of International Beverage Holdings (IBHL), which include Old Pulteney, Balblair, Speyburn, and AnCnoc. It also won import rights to The Arran single malt Scotch as well as Irish whiskies Writers’ Tears and The Irishman (owned by Walsh Whiskey Co.), while reviving the historic Hirsch Bourbon brand. Other key labels in the portfolio include own brands Old Potrero whiskey and Junipero gin, as well as the Nikka range of Japanese whiskies, Hine Cognac, and the Luxardo line. Impact…

REPUBLIC NATIONAL DISTRIBUTING CO. HAS ANNOUNCED A DEAL TO PURCHASE Opici Family Distributing of Florida, effective March 1. The price was undisclosed. Along with the purchase, Opici Wines and Spirits, the supplier arm of the Opici family, will be distributed by RNDC in Florida, Texas, Louisiana, Oklahoma, New Mexico, and South Carolina. Across its seven states of operation, including Florida, Opici Family Distributing represents about 1,400 wine and spirits brands that have a combined 3.3 million cases annually and $350 million in yearly revenues. The acquisition will bolster RNDC’s Florida operation, which had revenues of $1.07 billion in 2019.…

• CALIFORNIA’S O’NEILL VINTNERS & Distillers has acquired Rabble Wines, a Paso Robles-based producer, for an undisclosed sum. The deal will give the company a stronger footing among younger consumers and expand its positioning in the market for wines retailing at $15 and up a 750- ml. Rabble’s portfolio, which contains a Cabernet Sauvignon and a Zinfandel ($25), as well as a red blend and a rosé ($16), will now be produced at O’Neill’s Paso Robles facility. In 2019, Rabble Wines was named an Impact “Hot Prospect,” reaching 75,000 cases that year. Long known as a private label producer, O’Neill has branched out recently with its own branded portfolio. • SKREWBALL PEANUT BUTTER Whiskey has expanded into Canada. The brand’s international expansion is beginning now in Alberta and will spread…