Shanken's Impact Newsletter September 1-15, 2021

IF EVER THERE WAS A YEAR IN WHICH IT became difficult for newer brands to cut through the noise of the market and make a name for themselves among consumers, 2020 was it. Amid pandemic lockdowns and widespread on-premise restrictions, consumers often favored trusted products, especially early on in the crisis. That’s why it’s all the more remarkable that a full 87 brands earned Impact “Hot Prospect” awards this year, testifying to the indefatigable efforts of brand marketers across the drinks business and the ongoing adventurousness of American consumers, even when faced with unprecedented conditions. Among the winners, 40 spirits brands qualified as Hot Prospects, while 32 domestic wine offerings made the grade, joined by 15 imported wine brands. To qualify as Hot Prospects, brands must have achieved at least 15%…

DRINKS INDUSTRY LEGEND RAY HERRMANN HAS PASSED away at the age of 100. One of the leading lights of the wine and spirits business with a career spanning more than half a century, Herrmann played a key role in the formation of the U.S. distribution landscape as it stands today, led by giants like Southern Glazer’s Wine & Spirits, Republic National Distributing Co., and Breakthru Beverage—a $6.1 billion behemoth of which he remained chairman emeritus up to his death. “Anyone who knew Ray understood that he was one of the classiest members of our entire industry,” said Marvin R. Shanken, chairman of M. Shanken Communications, Inc. “His bright star will be greatly missed.” Herrmann died early Saturday morning, August 21, at his home in New York City with his wife Mariana…

IT’S OFTEN SAID THAT NEW PRODUCTS ARE THE lifeblood of the industry. But in recent years, the former steady stream of innovation produced across the drinks business has become a torrent, challenging distributors and retailers alike to keep up with the ever-increasing pace. The good news is that this wellspring of innovation across the industry is seeding the next wave of growth in the wine and spirits market. Look no further than Impact’s annual “Hot Prospects” list, featured in this issue, for evidence that for many of these younger brands the future is already here. A total of 87 brands from across the wine and spirits categories were named Hot Prospects this year, ranging from upscale whiskies and Tequilas to wine-based cocktails and sake. Those daring marketers launching new brands…

BACARDI RUM HAS UNVEILED A NEW Reserva Cask Finish series, which will see the company introduce a new cask finish offering annually through 2025. The first edition is Bacardi Reserva Ocho Sherry Cask Finish, which aged in American oak barrels for eight to 12 years and finished in an Oloroso Sherry cask for just over two months. The 40% abv rum is rolling out nationwide next month, retailing at $33 a 750-ml. “Despite signs that premium rum is on the rise, we still face the challenge that consumers for the most part associate rum with white and spiced variants only and think of rum as a spirit commonly found in tropical cocktails, which indicates a lack of awareness for premium rums,” Lisa Pfenning, Bacardi rum’s vice president, Americas, tells Impact. “As…

DIAGEO HAS AGREED TO ACQUIRE Casa UM, owner of premium mezcal brand Mezcal Unión, for an un-disclosed sum. Diageo has worked in partnership with Mezcal Unión since 2016, providing expertise and supporting growth of the brand’s distribution network in Mexico, the United States, and other countries. According to the company, Mezcal Unión has become one of the leading mezcal brands in bars and restaurants in Mexico over the past two years. “Our story with Mezcal Unión began with a distribution partnership in 2016 and we are now taking it to a new level,” said Mónica Michel, marketing and innovation director for Diageo in Mexico. Moving forward, Mezcal Unión will preserve its mission of supporting traditional and artisanal production processes while continuing existing relationships with agave farmers and its network of mezcal…

PROXIMO SPIRITS HAS OPENED GREAT Jones Distilling Co., marking the first distillery in Manhattan since Prohibition. Located in the New York City’s NoHo neighborhood at 686 Broadway, Great Jones has a 28,000-square-foot space that includes a distillery, restaurant, bar, and event space. Great Jones produces whiskies using grains sourced from the Black Dirt region of New York and opens to the public with three offerings: a Straight Bourbon ($40), a four-grain Bourbon ($50), and a rye ($40). The whiskies have been aging upstate for five years at Black Dirt Distillery.…