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

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%…

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…

BEAM SUNTORY SAW SALES CLIMB 12% in the first half of 2021, boosted by solid growth for its premium brand stable and the recovery of the on-premise sector. The company logged double-digit sales gains in markets including the United States, Canada, EMEA, Oceania, India, China, Emerging Asia and Global Travel Retail. Its first-half 2021 sales were 8% above the first half of 2019, the comparable pre-pandemic period. According to Impact Data-bank, Beam Suntory is the third-largest global spirits marketer at approximately 59.3 million cases last year. Beam Suntory’s North America sales jumped 12% through the first six months versus last year, with the company hailing “a faster-than-anticipated on-premise recovery and double-digit sales growth in the United States.” Among the company’s key premium brands, Maker’s Mark and Basil Hayden Bourbon, Courvoisier Cognac,…

THIS SUMMER, BEAM SUNTORY RELEASED THE DESIGNED by Aston Martin collection of Bowmore Single Malt Scotch, exclusively in the global travel retail market. The line combines the iconic whisky with the design talent of one of the world’s foremost luxury automotive marques, the company heralded. “These limited-edition releases not only celebrate our partnership but also give some of our wonderful whiskies a whole new look which I know will excite Bowmore fans and collectors around the world,” said David Turner, Bowmore Distillery manager. “By bringing together our skills and passions, we are inviting drinkers to explore our stunning and exclusive GTR collection whilst also showcasing how our shared commitment to heritage and craftsmanship can truly come to life.” This travel retail exclusive release joins a handful of others in what is…

• REPUBLIC NATIONAL DISTRIBUTing Co. (RNDC) has announced its entry into five new control states, including Iowa, Maine, New Hampshire, Pennsylvania, and Vermont. The initial focus will be on spirits in the new control states, with the company planning to add wine to its offering looking ahead. RNDC expects to begin selling in these states beginning in the fourth quarter of this year. With the addition of the new states, RNDC will have a footprint of 37 U.S. states, plus Washington, D.C. • AFTER A DIFFICULT YEAR IN 2020 owing to the pandemic, Scotch whisky exports grew 31% to £1.97 billion ($2.71b) on volume up 42% to 642 million bottles in the first half of this year, according to the Scotch Whisky Association (SWA). The category still has ground to make…

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…

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…

TREASURY WINE ESTATES (TWE) REVEALED A SOLID SET OF NUMBERS FOR ITS U.S. and global businesses, with overall revenues up 4.4% to A$2.6 billion ($1.86b) and EBITS rising 3.5% to A$510 million ($366m) for its fiscal year ended in June, even as the company navigated the global pandemic and prohibitive tariffs in the key Chinese market. Treasury’s Americas region outperformed the global business, with net sales up 11.3% on an organic basis to A$876 million ($628m), and EBITS increasing 66% to A$157 million ($113m). “Despite a backdrop of significant external disruption, we have delivered on the priorities we set for ourselves at the start of the year, and therefore we remain very well placed to deliver on our long-term growth ambitions,” said Treasury CEO Tim Ford. In the U.S., Treasury has…

TREASURY WINE ESTATES AMERICAS has promoted Sarah Bakx to chief sales officer, effective immediately. Bakx joined Treasury Americas in April of 2020 as senior vice president of luxury sales. A 25-year industry veteran, she has also held senior sales roles with Casa Dragones and Constellation. • Breakthru Beverage has named Rachel Gallen as general manager, Colorado, United Division, which is devoted to Diageo and Moët Hennessy brands. Gallen was previously division manager, Summit Mountain Wine. In her new role, Gallen will be responsible for all sales and marketing for the Colorado United Division, reporting to Brian Albenze, executive vice president, United Division, and will serve on the Colorado leadership team. • Renowned winemaker Thomas Rivers Brown has become consulting wine-maker for Constellation-owned Mount Veeder Winery in the Napa Valley. In the…

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…

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.…

AT FIRST GLANCE, THE VOLUME NUMBERS FOR THE world’s top 10 spirits marketers look underwhelming at best. Only four of the top 10 posted volume growth last year, and as a whole the market leaders were down 6% to 587 million cases in 2020, according to Impact Databank, with their combined market share slipping slightly to 47.9%. Fortunately, the picture is much brighter on the value side, with spirits behemoths like Diageo, Pernod Ricard, Beam Suntory, Campari, and Brown-Forman all enjoying impressive gains in dollar terms, especially during the latter half of last year and first half of this year, following the initial shock of the pandemic in early 2020. “While our business has recovered strongly in fiscal 21, with net sales growth on a constant basis ahead of fiscal 19…

SANTA ROSA, CALIFORNIA-BASED Jackson Family Wines has announced a new plan to address climate change and wider sustainability issues. The “Rooted for Good: Roadmap to 2030” initiative will see Jackson Family undertake greenhouse gas emissions reductions, water management, land conservation through regenerative farming practices, and social responsibility measures to advance diversity, equity, and inclusion in the workplace and wine community, according to the company. Specifically, Jackson Family is aiming to cut its carbon footprint in half by 2030 and become climate positive by 2050; transition 100% of its estate vineyards to regenerative farming practices in the next decade; reinforce its commitment to water conservation and water quality improvements by enhancing local watersheds; and build its workplace around diversity, equity, and inclusion through a wide range of initiatives encompassing recruitment of women…