Shanken's Impact Newsletter July 1, 2021

AS WAS THE CASE FOR MOST DRINKS CATegories last year, Champagne was significantly disrupted in the U.S. market amid the pandemic, with marketers scrambling to shift formerly on-premise oriented brands to the off-trade as they navigated a vastly reshaped and erratic consumer environment. Total Champagne shipments from France to the U.S. fell by nearly 19% last year as a result. Still, the category remained much healthier at the consumer level. In fact, considering the scale of the challenge presented by the pandemic, the bubbly business responded incredibly well, with overall U.S. depletions slipping only 2.5% to just under 1.5 million cases in 2020, according to IMPACT DATABANK. While the fluctuating market conditions across the country presented significant obstacles for numerous brands, others were nimble in adapting to the new operating…

DESPITE SLOWING GROWTH IN RECENT YEARS, VODKA REMAINS THE LARGEST SPIRITS category in the U.S. by far. Many legacy brands have faced challenging conditions, both from new competition within the category and the widespread on-premise disruption stemming from the Covid-19 pandemic. Nonetheless, total volume in the U.S. advanced again in 2020, boosted by a surge in the off-premise. U.S. volumes surpassed 80 million 9-liter cases for the first time last year, reaching 81.1 million cases, according to Impact Databank. While the category grew 3.5% overall, a major improvement over years past, that growth continues to be concentrated in only a handful of brands, primarily in the top 20. Within the 20 million-case brands in the U.S., growth registered 5.1% on a total volume of 60.7 million cases. The rest of…

IT WAS A DIFFICULT YEAR FOR CHAMPAGNE IN 2020, as the luxury-focused category struggled amid on-premise closures and the erratic business conditions brought on by the pandemic. But while shipments were down markedly for Champagne last year, the situation was much more stable at the consumer level, with U.S. depletions for the category slipping only 2.5%, according to IMPACT DATABANK. This year, all reports indicate that the bubbly business is not only recouping those losses but surging forward as the removal of restrictions unleashes pent-up demand among its consumer base. Top Champagne marketers are taking note, laying the groundwork for further growth with new advertising campaigns and novel bottlings aimed both at satisfying current consumers as well as cultivating new audiences. Moët Hennessy continues to dominate the Champagne business in…

AFTER ACQUIRING WEST COAST REtailer BevMo last year, e-commerce player Gopuff has acquired Kentuckybased Liquor Barn for an undisclosed sum. “This acquisition brings two customer-focused brands together to introduce new products and experiences while rapidly accelerating Gopuff’s geographic footprint in the region as we continue our expansion,” said Daniel Folkman, Gopuff’s SVP, Business. The deal will see Liquor Barn, Party Mart, and DEP’s footprint of 23 stores provide infrastructure for Gopuff to integrate into its network of microfulfillment centers, currently numbering more than 275 around the country, plus its more than 160 BevMo stores on the West Coast. Gopuff added that the acquisition positions it “to support Kentucky’s Bourbon industry and its thousands of employees by working with distributors to expand access to products nationwide.”…

HEAVEN HILL BRANDS HAS ANnounced the grand opening of the Heaven Hill Bourbon Experience in Bardstown, Kentucky. Originally opened in 2004 as the Bourbon Heritage Center by the late Harry Shapira, the visitor center has received a $19 million upgrade to become an interactive, educational space offering signature exhibits unique to the Heaven Hill Bourbon Experience. Heaven Hill has also launched Five Brothers Bourbon, paying tribute to the founding Shapira brothers. Five Brothers Bourbon is bottled at 45% abv and is a blend of whiskies aged five to nine years.…

THE U.S. HAS AGREED TO A FIVE-YEAR suspension of tariffs with both the European Union and U.K. related to their long-term dispute over aircraft subsidies. Earlier this year, the tariffs were suspended for four months, but that window was set to expire, adding renewed urgency to the situation for companies across multiple industries, including wine and spirits. The 25% tariffs in the long-running aerospace dispute include E.U. and U.K. levies imposed on U.S. rum, brandy, and vodka in November 2020. In addition, the U.S. had imposed 25% tariffs on liqueurs and cordials from Germany, Ireland, Italy, and Spain in October 2019, and on certain Cognacs and other grape brandies from France and Germany in January 2021. The U.S. had also tariffed French, Spanish, German, and U.K. wines as well as…