Innholdsfortegnelse for July 15, 2021 i Shanken's Impact Newsletter

ONE OF THE LARGEST WINEMAKERS in the U.S. is set to change hands. Ste. Michelle Wine Estates, a driving force behind the development of the Washington wine category over the past few decades, is being sold by corporate parent Altria to New York-based private equity firm Sycamore Partners in a deal worth $1.2 billion. The all-cash transaction is expected to close in the second half of the year, subject to obtaining financing and other customary closing conditions. According to Impact Databank, Ste. Michelle ranked as the eighth-largest wine marketer in the U.S. last year at 7.3 million 9-liter cases, led by the Chateau Ste. Michelle and 14 Hands brands, which account for about 3.1 million cases and 1.3 million cases respectively. David Dearie, the veteran wine executive who became Ste.…

REPUBLIC NATIONAL DISTRIBUTING Co. (RNDC) is entering the Illinois market with a letter of intent to partner with in-state player Heritage Wine Cellars Ltd. The letter of intent is effective immediately, with the official partnership beginning in the third quarter of 2021. The deal marks the 33rd market nationwide for RNDC, the second-largest wholesaler of spirits and wine nationally. “This partnership will allow RNDC to expand our footprint into Illinois, creating strategic opportunities that will benefit our business partners in a rapidly changing and highly competitive marketplace,” stated RNDC president and CEO Tom Cole. “All of us at RNDC are excited to partner with Heritage Wine Cellars, Ltd., an established family-owned company with an excellent reputation for brand-building and customer service.” Heritage Wine Cellars owner and president Steven Hirsch said…

The largest-selling wine brand in the U.S. in volume terms, Franzia saw an impressive 7.6% increase in 2020 to 24 million 9-liter cases, according to Impact Databank, led by gains from its Rich & Buttery Chardonnay and Dark Red expressions, as well as from its Pinot Grigio and Pinot Noir labels. Now, The Wine Group is extending Franzia into the rising “better-for-you” segment with a range of Refreshers, selling in 3-liter boxes retailing at around $15. Impact managing editor Daniel Marsteller recently spoke with Jeff Dubiel, CMO at The Wine Group, to discuss the launch and the overall outlook for Franzia. “You’ve got other flavored wines out there that play at around 120 to 140 calories, so coming in at 75 calories gives us an advantage. Also, the Refreshers are…

BEVERAGE RETAIL BEHEMOTH TOTAL Wine & More continues to make major moves across the country, entering new markets and adding locations nationwide. Total Wine opened its 216th store this month when it debuted in Grand Rapids, Michigan, on July 8. The new unit is the company’s first in Michigan. Total Wine will also expand into San Diego this year, debuting its first store in that city this fall. In all, the company expects to reach 230 stores by the end of 2021. Michigan is especially notable for Total Wine, as the company is putting a big emphasis on the Midwest for future growth. Total Wine opened its first store in Indiana during the Covid-19 pandemic last year, in the state capital Indianapolis. This follows recent additions in Fairview Heights, Illinois—a…

LUXURY ROSÉ LEADER CHÂTEAU D’ESCLANS CAME UNDER THE U.S. WING OF majority owner Moët Hennessy late last year, and the Provence label has continued to climb, despite the challenges raised by the pandemic. D’Esclans increased 7% to 525,000 cases in the U.S. in 2020, according to Impact Databank, led by its core Whispering Angel expression. That growth occurred even amid heightening competition in the rosé space, as Whispering Angel’s online sales boomed, thanks to app-based delivery services like Drizly. “What happened last year with Drizly, in regard to Whispering Angel, was crazy; they called us up and said ‘We’ve never seen a product perform as well as Whispering Angel.’ It just blew up,” says Château d’Esclans vice president Paul Chevalier. Because of the wine’s success with the platform, Château d’Esclans…

CONSTELLATION BRANDS HAS OFFIcially appointed Matt McHargue senior vice president, fine wine and craft spirits division. Earlier this year, Constellation announced the creation of a standalone, vertically integrated fine wine and craft spirits business unit to support its ambition to be the high-end wine and craft spirits category leader. Prior to this role, McHargue led wine and spirits sales for Constellation’s Mid-Atlantic region, following over two years as director of wine and spirits commercial planning. • Anheuser-Busch InBev has named Brendan Whitworth as zone president North America and CEO of Anheuser-Busch, effective July 1. He succeeds Michel Doukeris, who transitioned to the role of global CEO of AB InBev on the same date. Whitworth was previously U.S. chief sales officer, where he’s credited with capturing more than $1 billion of…

THE RENAISSANCE OF THE AMERICAN WHISKEY industry has been one of the defining stories of the drinks business over the past decade. After a long period of decline running into the first years of the new millennium, Bourbon and Tennessee whiskies have enjoyed a rebirth that’s seen their combined volume expand by more than 10.2 million cases—or roughly two-thirds—since 2010, according to IMPACT DATABANK. Perhaps the most impressive thing about the American whiskey boom is its robust premiumization dynamic. Bourbon and Tennessee whiskies retailing at $25 and over a 750-ml. have grown much faster than the total category over the past 10 years, jumping 10.5% last year to reach 7.8 million cases. They now account for about a 30% market share, up from a 12% share in 2010. The top…

BEAM SUNTORY AND BOSTON BEER are forming a new alliance to target new drinks categories with some of their largest brands and leverage each other’s distribution networks. The companies will expand Boston Beer’s Truly Hard Seltzer into bottled spirits, and Beam Suntory’s Sauza Tequila brand will expand into additional RTD formats by leveraging Boston Beer’s expertise, production capabilities, and distribution footprint. Terms of the agreement weren’t disclosed. Beam Suntory CEO Albert Baladi and Boston Beer CEO Dave Burwick were former colleagues at Pepsico. “We are each tapping opportunities in adjacent categories by unleashing our shared creativity and respective distribution strengths in spaces that resonate with consumers,” said Baladi. The first new products from the partnership will launch mid-2022, with plans to add more brands in the future.…

BACARDI RUM IS LAUNCHING TROPIcal, a limited-edition flavored rum expression. The new white rum boasts a flavor profile of pineapple, coconut, and guava. It’s made from a base of Bacardi white rum and infused with natural fruit flavors, ending up at 100 calories per ounce. Bacardi Tropical is at 35% abv and is available now for $13 a 750-ml on Drizly and at select retail locations nationwide for a limited time through the end of summer. It’s the eighth installment in Bacardi’s flavored lineup, which also includes Lime, Dragonberry, Raspberry, and Mango, among others.…

• BEAM SUNTORY HAS INTRODUCED Jim Beam Orange. The new flavored whiskey combines Bourbon and orange flavor and is intended to be served as a chilled shot or in a Highball with soda water, ice, and an orange wedge. Jim Beam Orange is at 32.5% abv and retails at $16 a 750-ml. It’s rolling out to select retailers nationally. • MOËT HENNESSY AND CAMPARI Group have announced a new joint venture targeting Europe’s e-commerce market. Campari will be contributing its stake in Italian ecommerce platform Tannico to the JV. Plans call for Campari to sell 50% of the joint venture’s equity capital to Moët Hennessy for €25.6 million ($30.4m). • DEEP EDDY VODKA IS DEBUTING new RTD vodka sodas. Including lemon and ruby red flavors, the newcomers are at 4.5%…