Shanken's Impact Newsletter May 1, 2021

THE GLOBAL PANDEMIC, ON-PREMISE shutdowns and tariffs hampered imported wine shipments to the U.S. last year, but the growth of depletions shows the category’s underlying staying power. According to Impact Databank, imported table wine shipments to the United States were down 8.7% to 70.14 million cases in 2020, though overall depletions were up 3% to 69.5 million cases. France, Spain and Germany saw the most drastic shipment drops, as those countries were all slapped with a 25% tariff on most wine imports in late 2019 (the tariffs are now suspended). Italy—which accounts for the largest segment of table wine imports—grew shipments 0.4% to 26.69 million cases, while Australia increased 1.4% to 8.87 million cases, New Zealand rose 7.6% to 6.32 million cases and Argentina advanced 3.5% to 5.11 million cases. The…

THE GLOBAL SPIRITS INDUSTRY ACHIEVED ROBUST GROWTH IN BOTH VOLUME AND value in 2020 despite the unprecedented challenges to on-premise consumption and broader economic uncertainty. Last year, the top 100 spirits brands at retail worldwide collectively reached 750 million nine-liter cases, with total retail value coming in at just under $100 billion, according to Impact Databank. Growth in the key U.S. spirits market outpaced other beverage alcohol categories, with spirits expanding by roughly 5.5% in volume, compared to 1.5% growth for the wine category and a 0.5% contraction for beer. In response to a near total loss of on-premise revenue from Covid-related shutdowns in the hospitality sector, major spirits marketers got creative with line extensions on popular brands, ready-to-drink options in various formats, as well as a marketing focus on at-home…

WHILE CONDITIONS HAVE BEEN CHALLENGING across the board in the drinks market over the past year, imported wine has been especially vulnerable due to its reliance on the largely closed on-premise arena and tariffs on key countries of origin. Bottled table wine imports to the U.S. fell 8.7% last year, with tariffed countries like France, Spain, and Germany bearing the brunt of the decline, while Italy, Australia, New Zealand, and Argentina managed to carve out growth. But while shipments suffered last year, those numbers don’t tell the whole story. The top 20 imported table wines in the U.S. showed impressive depletion growth of 16.5% to an aggregate 35 million cases—an increase of nearly 9 million cases compared with a decade earlier—as consumers gravitated to well-known brands. That resilient performance shows that…

THE BOLLINGER FAMILY, KNOWN FOR its namesake Champagne brand and other French luxury wines and spirits, has agreed to acquire Oregon stalwart Ponzi Vineyards for an undisclosed sum. Established by Willamette Valley pioneers Dick and Nancy Ponzi in the late 1960s, Ponzi is positioned firmly at the upscale tier. Its core wines include Pinot Gris ($20), Chardonnay Reserve ($40), Tavola Pinot Noir ($27), Laurelwood Pinot Noir ($42), and Pinot Noir Reserve ($70). Annual production is approximately 30,000 cases. New York-based importer and marketer Vintus handles both Bollinger and Ponzi in the U.S. “With Bollinger’s resources, leadership and vision, the development of the Ponzi brand with our distributor partners will only accelerate, particularly given the powerful growth in interest for exceptional Pinot Noir,” Vintus CEO Michael Quinttus told IMPACT.…

THE WINE GROUP AND ANHEUSER-Busch have collaborated to produce 101 North, a new California wine brand. Retailing in the accessibly priced segment at $7 a 750-ml., the initial lineup includes Cabernet Sauvignon, Chardonnay, Pinot Grigio, and Moscato. Additionally, Chardonnay and Pinot Grigio are available in 500-ml. Tetra Paks retailing at $5 apiece, with each holding three glasses of wine. The 101 North Wine Collection will join Anheuser-Busch’s Beyond Beer portfolio, which includes brands like Cacti Agave Spiked Seltzer, Cut-water Spirits, BonViv and others.…

EVEN AS THE HARD SELTZER CRAZE continues in the beverage alcohol market-place, many vintners are now trying to capitalize on the fast-rising “Better for You” wine segment, as American drinkers continue to crave health- and wellness-oriented products. These new wines boast fewer calories, fewer carbo-hydrates, and even lower alcohol—and most of the brands have zero residual sugar. But marketers also get more bang for their buck, as these healthier alternatives generally sell for above-premium prices at retail. The most widely known and largest-selling brand in the segment—California’s Fitvine—has actually been around since 2015, when it became available in the DTC space. It was launched at retail in 2017, initially at Whole Foods. Fitvine’s wines average less than 1 gram of sugar per liter, or less than 0.09 grams per 5-ounce glass.…