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

MOËT HENNESSY HAS ACQUIRED A 50% stake in Champagne house Armand de Brignac, making the international luxury giant an equal partner with rapper and entrepreneur Jay-Z. Terms weren’t disclosed but Moët Hennessy revealed that it would take over global distribution for the Champagne brand following the completion of the transaction. “The strength of the Armand de Brignac brand and quality of its range of prestige cuvées will allow us to take the business to new heights across the world,” said Philippe Schaus, president and CEO of Moët Hennessy. Armand de Brignac has total volume of about 40,000 cases. Armand de Brignac will sit alongside the likes of Veuve Clicquot, Moët & Chandon, Dom Perignon, Krug, and Ruinart in Moët Hennessy’s Champagne stable. Veuve Clicquot and Moët & Chandon lead all…

SOUTHERN GLAZER’S WINE & SPIRITS HAS PURCHASED EPIC WINES & SPIRITS from wine magnate and NHL owner Bill Foley. Terms of the deal weren’t disclosed, and the transaction is subject to standard closing conditions. As part of the deal, SGWS will become the national distributor for Foley Family Wines. The new distribution agreement comes alongside the launch of Southern Glazer’s new Fine Wine & Artisanal partners strategy, which will prioritize restaurant, fine wine, and craft spirits accounts within the distribution giant and improve customer service relations for the distributor’s smaller partners. “This is a new era for Foley Family Wines, following their recent acquisition of Ferrari-Carano, as they look to accelerate growth for their world-class portfolio across the U.S.,” said SGWS CEO Wayne Chaplin. “Our two family-owned businesses are committed…

DUCKHORN WINE COMPANY, THE Napa Valley–based portfolio of wineries headed by Duckhorn Vineyards, which has consistently made some of the top-rated Merlots from California since its founding in 1976, has filed a statement with the U.S. Securities and Exchange Commission (SEC) declaring its intention to go public. Duckhorn, owned since 2016 by the San Francisco–based private-equity firm TSG Consumer Partners, which manages $9 billion in assets, has reserved the ticker symbol NAPA to trade on the New York Stock Exchange. “This is a step toward potentially becoming a publicly traded company. It doesn’t change our focus on making and bringing world-class wines to the consumer,” Carol Reber, who is Duckhorn’s chief marketing and DTC officer, told Wine Spectator. Duckhorn’s Merlot Napa Valley Three Palms Vineyard 2014 was Wine Spectator’s 2017…

•ATLANTA, GEORGIA-BASED CANNAbis company Parallel is going public via a special purpose acquisitions company (SPAC). Led by chairman and CEO Beau Wrigley, Jr., Parallel has agreed to be acquired by Ceres Group Holdings, a recently formed Canadian SPAC. Ceres is led by cannabis investor Joe Crouthers, chairman and CEO, and co-founder Scott “Scooter” Braun, a record industry executive. The transaction values Parallel at $1.88 billion and is expected to close this summer. Parallel expects net revenues to total $447 million this year. •GREY GOOSE HAS UNVEILED ESsences, a new range of vodkas infused with real fruit and cold-distilled botanicals. The lineup will initially include Strawberry & Lemongrass, White Peach & Rosemary, and Watermelon & Basil expressions. The new range is at 30% abv and has no gluten, artificial ingredients, sugar…

BEAM SUNTORY POSTED U.S. SALES up 4% in 2020, with on-premise conditions improving over the second half of the year and spirits accruing additional share of the overall beverage alcohol market. Company CEO Albert Baladi said the group benefited from “increased investments in e-commerce and ready-to-drink products” as spirits occasions centered around the new “home-premise.” Globally, Beam Suntory’s sales were roughly flat at approximately $4.6 billion for the year. Beam Suntory’s flagship brand Jim Beam crossed 11 million cases in global volume for the first time last year.…

GRUPO CUERVO SAW FULL-YEAR NET sales surge 19% to just under $1.7 billion in 2020, despite a slowdown in growth in the fourth quarter. Volume increased 7% to 23.7 million 9-liter cases, and the Mexico-based company’s EBITDA was up 25% to $368 million. Cuervo’s gains were driven by the U.S. and Canada, which combined for net sales up 33% to $1.2 billion on a 22% volume increase to 15.2 million cases. Growth was robust across Cuervo’s ready-to-drink cocktail business as well as its core Tequila offerings, with Jose Cuervo Margaritas jumping 51% to 3.5 million cases in the U.S. in 2020, according to Impact Databank, and Jose Cuervo Especial Silver rising 33% to just under 2 million cases. Cuervo’s 1800 franchise also soared in the U.S. last year, with the…

TREASURY WINE ESTATES POSTED NET SALES DOWN 5.9% TO A$1.4 BILLION ($1.1B) for its first half ended in December, with EBITS slipping 22% to A$284 million ($220m). Results were weighed down by pandemic restrictions and trade tensions between Australia and China, which has imposed high tariffs on Australian wines in recent months. Treasury Americas saw sales slip 7.2% to A$535 million ($414m) year-on-year, as EBITS declined 2.7% to A$83 million ($64m), but the company noted that strong growth in retail and e-commerce channels allowed the Americas business to increase sales 17% and EBITS 70% compared with the previous six-month period. Treasury’s premium focus brands rose 31% at retail in the Americas year-on-year, driven by 19 Crimes, St Huberts the Stag, Beringer Brothers, Matua, Stags’ Leap, and Beaulieu Vineyard. According to…

“OUT OF CRISIS, COMES OPPORTUNITY” IS PERHAPS an outworn phrase at this point, and yet it aptly sums up the events of the past year for the wine and spirits franchises recognized in this issue as Impact’s “Hot Brands.” For this illustrious group overcame the unprecedented challenges raised by the pandemic to not only hold their ground but thrive amid a vastly transformed landscape. This year’s crop of Hot Brands numbers 89 awardees, up from 70 labels last year. The increase was most pronounced in the spirits category, which went from 31 winners for 2019 to 51 for 2020. If anything, the pandemic appears to have further galvanized the consumer migration into the spirits sector, with high-flying segments like Tequila, whisk(e)y, Cognac, and premixed cocktails amply represented on the list.…

PERNOD RICARD SAW SOLID GROWTH in the U.S. in its fiscal first half ended in December, with sales increasing 5% on strong gains from the off-premise and e-commerce segments. Other key markets like China and India were also on the rise, but on-trade closures and travel restrictions cut into the business elsewhere, with overall organic sales down 3.9% to €5 billion ($6.1b) and profit from recurring operations dipping 2.4% to €1.6 billion ($1.94b). Pernod said its e-commerce channel in the U.S. surged 84% in the first half, contributing strong momentum to the business. Top-seller Jameson continued to grow despite its high exposure to the challenged on-premise segment, with the brand advancing 10% to cross the 4-million-case threshold for calendar 2020, according to Impact Databank. Malibu rum was also up by…

IN AN INTERVIEW WITH REUTERS, Campari CEO Bob Kunze-Concewitz said that while the pandemic has raised plenty of hurdles for the business, it could also open up some opportunities both for bolt-on deals or a potential transformational merger. Noting that Tequila is the hottest category in the U.S. spirits market, Kunze-Concewitz said Campari could look to augment its presence in the category—currently including Espolòn and Cabo Wabo—with another brand looking ahead. He added that Campari has been considering a merger with another significant player for a few years.…

As the nation’s third-ranked spirits and wine distributor, with operations in 15 North American markets and 2020 revenues of approximately $6 billion, Breakthru Beverage has been at the forefront as the industry has adapted to unprecedented changes in the marketplace over the past year. Impact managing editor Daniel Marsteller checked in with Breakthru president and CEO Greg Baird to discuss current conditions within the middle tier and the business outlook for 2021. IMPACT: How are overall conditions in the U.S. wine and spirits business as it stands today? Baird: The retail business was strong in 2020, and it started out strong this year and we expect that to continue. We also expect a gradual recovery for on-premise this year, with many of the adjustments made by bars and restaurants in…

CONSTELLATION BRANDS EXECUTIVE Jim Sabia, previously executive vice president and chief marketing officer, has been named executive vice president and managing director, beer division, effective March 1. Constellation said the company’s CMO position will remain open in the near term but that it will look to replace Sabia in the role over time. Additionally, Mallika Monteiro has been appointed executive vice president and chief growth, strategy and digital officer. In addition to her current responsibilities leading the company’s growth and strategy functions, she will assume added responsibility for leading the company’s media initiatives, including digital marketing, 3-Tier ecommerce, and Constellation Ventures, the company’s venture capital arm. •Stoli Group has named Harry Bigelow as president, North America. He has previously held positions with Guinness USA, E.&J. Gallo, and Diageo, where he…