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.
VODKA SALES SOARED IN THE U.S. LAST year as Americans isolated by the pandemic compensated for on-premise closures by purchasing for home consumption. Case volume was up nearly across the board, according to IMPACT DATABANK, with numerous brands eliminating years of volume decay in 2020. Among the 20 vodka brands above 1 million cases in the U.S., 12 saw growth last year while eight declined. Among those that lost ground, none lost more than 4% of their volume from the previous year. The top 20 vodka brands in the U.S. reached a cumulative 61.5 million cases last year, up 6.5% and nearly 4 million cases from 2019. The market’s million-case brands have added nine million cases in aggregate since 2015 and have more than doubled in volume over the last…
EARLIER THIS MONTH, UBER ANNOUNCED THAT IT WAS PURCHASING ALCOHOL E-COM-merce platform Drizly for $1.1 billion, primarily delivered in the ride share company’s stock. The move, according to Drizly CEO Cory Rellas, will give Drizly access to Uber’s massive platform and allow the company grow as quickly and efficiently as possible while benefiting consumers and retailers alike. The transaction is expected to be approved before the end of the first half. Once the transaction is approved by regulators, the next move will be to begin to integrate Drizly’s alcohol delivery service into Uber’s food delivery platform, UberEats. “Drizly will continue to exist, and we hope to accelerate it with the help of the platform that is Uber,” he said. “We’re also going to have many conversations about how we can…
WHILE THE PANDEMIC HAS BROUGHT WHOLESALE change to the industry over the past year, it has also accelerated some trends that were already afoot within the drinks business. Chief among these is the rise of e-commerce at all levels of the industry, as suppliers, wholesalers, and retailers aim to leverage the online space to streamline and improve how they do business, with both their partners and customers. If anything, the e-commerce drive has shifted into an even higher gear so far in 2021. Just before press time, Uber announced its $1.1 billion acquisition of Drizly, whose beverage alcohol delivery platform saw sales roughly triple over the past year, boosted by the shift to the off-premise, its partnerships with retailers in local markets across the country, and the new on-demand economy.…
SOLID GAINS IN NORTH AMERICA LED DIAGEO TO AN ORGANIC SALES INCREASE of 1% to £6.9 billion ($9.4b) in its fiscal first half ended in December, despite ongoing challenges like on-premise restrictions and a depressed travel retail market. Organic operating profit was down 3.4% to £2.2 billion ($3b), as productivity gains were offset by cost of goods inflation. “North America, our largest market, performed particularly strongly and ahead of our expectations,” said chief executive Ivan Menezes. “Consumer demand has been resilient and the spirits category continues to gain share of total beverage alcohol.” Diageo also cited “positive category mix and the replenishment of stock levels by distributors and retailers” as contributing to U.S. gains. The company’s U.S. net sales jumped 15% for the first half. Its super-premium and luxury Tequila…
MGP INGREDIENTS HAS AGREED TO acquire St. Louis-based spirits producer and marketer Luxco for $475 million, comprised of equal parts cash and stock. For the 12-month period ended October 31, 2020, Luxco generated approximate net revenues of $202 million and 9-liter case volume of 4.8 million. Luxco’s brand portfolio includes Ezra Brooks Bourbon Whiskey, Daviess County Straight Bourbon Whiskey, Yellowstone Bourbon Whiskey, El Mayor Tequila, and Everclear. MGP says the acquisition “will immediately increase MGP’s scale and market position in the branded-spirits sector and strengthen its platform for future growth of higher valueadded products.” “Luxco presents a unique opportunity to take a material step towards realizing our long-term strategy. It significantly expands our product line in the higher-value branded-spirits sector and increases our sales and distribution capabilities across all 50…
HOSPITALITY TITAN TILMAN FERTITTA has announced a deal to take his Fertitta Entertainment Inc. company public via a merger with blank check company FAST Acquisition Corp. The deal values Fertitta’s Golden Nugget/Landry’s hospitality group at $6.6 billion. It’s expected to close in the second quarter of this year. Fertitta will remain chairman, president, and CEO of the company, and be its largest shareholder with an approximately 60% interest. The group has five land-based Golden Nugget casinos, and more than 500 outlets overall across restaurant brands including Del Frisco’s, Houlihan’s, McCormick & Schmick’s, Morton’s, Bubba Gump Shrimp Co., and Rainforest Café. Pro forma 2019 sales totaled $3.4 billion, with EBITDA at $741 million. Restaurants make up about 72% of revenue and 60% of EBITDA, with gaming accounting for the remainder. “We…
