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

EACH YEAR, IMPACT SALUTES THE BEST performing wine, spirits, and beer brands in the U.S. market over the long term with its “Blue Chip Brands” honor roll. The challenges of the past year and a half have certainly created new business dynamics—accelerating some areas of the market while hampering others—but, as the Blue Chips roster shows, many of the industry’s major players remain at the top of their game. To meet Impact’s Blue Chip criteria, brands must show at least 10 consecutive years of volume growth, or average annual compound growth of at least 0.5% from 2010 through 2020 with positive growth in at least eight of those 10 years. In addition, the brands must have maintained gross margins of at least $25 million last year. This year’s Blue Chip…

STOLI GROUP SUBSIDIARY TENUTE del Mondo has acquired a 50% stake in Provence winery Chateau Miraval from actress Angelina Jolie for an undisclosed sum. That makes the drinks group a 50/50 partner with Brad Pitt, Jolie’s ex-husband and former partner in the winery. Miraval, which is handled by Vineyard Brands in the U.S., recently earned an Impact “Hot Prospect” award after rising 17.4% to just under 150,000 cases in the U.S. market last year. The chateau in Correns, France sits on 400 hectares (988 acres) and was acquired by Pitt and Jolie in 2012 for an estimated $60 million. It was said to be worth about €140 million ($162m) currently. Tenute del Mondo now adds the 50% interest in Miraval to its existing holdings. The company owns Argentina’s Achaval Ferrer…

PERNOD RICARD HAS AGREED TO acquire U.K. retailer The Whisky Exchange in a move that will bolster its e-commerce business. Financials weren’t disclosed. Founded by Sukhinder and Rajbir Singh in 1999, The Whisky Exchange carries over 10,000 products and is known for its online shop as well as three brick-and-mortar locations in London at Covent Garden, Great Portland Street, and London Bridge. Pernod said the deal is in line with its “consumer-centric strategy of meeting new consumer needs and expectations, in a context of solid ecommerce growth and strong demand for premiumization.” Chairman and CEO Alexandre Ricard called the Singhs pioneers of the online sales space, noting that “E-commerce is a key channel in our long term strategy.” The Whisky Exchange’s parent company had sales of just under $100 million…

CONSTELLATION BRANDS IS INTRODUCING ITS FIRST CBD PRODUCT, KARMA CBD Water. The beverage is infused with 25mg of CBD distillate an 18-ounce bottle, plus four adaptogens and seven essential vitamins “to deliver a full entourage effect to support holistic health,” according to the company, which developed the product by leveraging its stake in Canadian cannabis group Canopy Growth. Karma CBD Water will be available in five natural flavors: Cranberry Lime, Blueberry Yuzu, Blood Orange Papaya, Lavender Orange, and Watermelon Dragonfruit. It’s debuting online as well as in retail stores nationwide. The lineup will be distributed through Constellation’s beer distribution network.…

• EDRINGTON HAS ANNOUNCED Highland Park 15-year-old Viking Heart, the latest permanent addition to the Orkney-based distillery’s portfolio. The 44% abv whisky is a new creation and blends Sherry-seasoned European and American oak barrels with a little bit of whisky matured in refilled barrels previously used to age Highland Park’s malts. The whisky comes in an embossed ceramic bottle and will retail for around $110 when it hits shelves across America around the beginning of November. Last year, Highland Park had volume of 23,000 cases in the U.S., according to IMPACT DATABANK. • ACTRESS BLAKE LIVELY IS JOINING her husband Ryan Reynolds in the drinks business, launching a new sparkling mixer brand called Betty Buzz. Betty Buzz includes five flavors: Tonic Water, Sparkling Grapefruit, Meyer Lemon Club Soda, Sparkling Lemon…

FOR 20 YEARS, CANADIAN WHISKY HAS BEEN HOVERING BETWEEN 21 AND 23 MILLION cases worldwide, finding favor in its domestic market. But aside from standout labels like Crown Royal, the category continues to stagnate in the U.S., its top global market. While Canadian whisky has yet to garner the enthusiastic following of American Bourbons and ryes, global depletions held steady last year at 21.3 million cases, including flavors, boosted by Crown Royal’s 3% increase. In Canada, the second-largest market for the spirit, Canadian whisky increased a sizable 4.2% to 3.6 million cases. However, the category still faces challenges in the U.S., which accounts for more than half of total consumption. In 2020, depletions stateside fell 1.1% to 12.5 million cases, excluding flavors. Still, suppliers have been successfully using innovation in…

THE LARGEST SELLING SPIRITS BRAND in the U.S., Tito’s Handmade Vodka long ago transcended its category and imposed itself as a dominant force in the market propelling the fortunes of distributors and retailers across the country. According to IMPACT DATABANK, Tito’s finished 2020 at 10.4 million cases on 18% growth, capping a five-year run in which it expanded by 25% annually and tacked on more than 7 million cases. This year the brand appears poised to continue its double-digit trajectory, even from its enormous base, with its control state volume rising 11% in the first seven months of 2021. Impact Databank projects that Tito’s will surpass the 11-million-case mark for the full calendar year. As large as the brand has become, Tito’s marketers see ample white space for it to…

BACARDI-OWNED PATRÓN TEQUILA has announced a new aged expression: Sherry Cask Aged Añejo. The 40% abv Tequila matured for over two years in Oloroso Sherry casks before bottling. The new Tequila is available exclusively in the U.S. in select retailers and on Drizly while supplies last for a suggested price of $80 a 750-ml. Last year, Patrón reached 2.7 million cases in the U.S. on a 25% increase, according to Impact Databank, ranking second only to Jose Cuervo among all Tequila brands. The new Sherry Cask expression marks Patrón’s first new release in two years.…

THE AMERICAN CRAFT SPIRITS CATEGORY FACED ENORmous challenges in 2020—including on-premise closures, continued European Union tariffs, and uncertainty over extended federal excise tax relief—but for many craft brands last year still provided new opportunities for growth. Despite setbacks for smaller, less-established craft brands, many were able to reach new heights through strong off-premise growth, social media outreach, government pandemic relief aimed at small businesses, and direct-to-consumer sales. Several leading domestic craft brands posted triple-digit growth in the U.S. in 2020, according to Impact Databank, such as Nelson’s Green Brier whiskey (+123.7%), Skrewball flavored whiskey (+259.5%), and Rabbit Hole (+268.3%). The prepackaged cocktail segment similarly exploded in popularity, proving that despite market disruptions U.S. demand for craft spirits is as strong as ever. Craft spirits entered 2020 riding years of robust…

IN THE DRINKS BUSINESS, AS ELSEWHERE, ATTENTION tends to fly to the latest trends and the newest innovations. It’s not hard to see why, because each innovative new category or brand can hold the potential to capture consumers’ interest and become the next significant growth engine for the industry. But as the market chases the next prime growth opportunity—be it seltzers, spirits-based cocktails, or “better for you” wines—it’s worth noting the existing brands that have become the industry’s benchmarks. These are the brands that drive consistently strong performance year in and year out over the long haul. In short, they are the “Blue Chips” of the business. This year, Impact’s “Blue Chip Brand” awards honor a total of 71 labels from across the wine, spirits, and beer categories, featuring household…

DIAGEO WILL INVEST $500 MILLION IN ITS TEQUILA PRODUCTION FACILITIES in Mexico to help meet surging demand. Alvaro Cardenas, president of Diageo’s Latin America and Caribbean region, said the drinks giant will use the outlay to open its third local facility in La Barca, Jalisco, calling the move the most significant investment the company has made in the Latin America and Caribbean region in a decade. Diageo’s Don Julio and Casamigos Tequila brands continue to surge, and the company sees ample room for further growth looking ahead as more consumers gravitate to the category. Meanwhile, Diageo said it’s seeing net sales momentum across all regions so far in its new fiscal year, which ends next June. “Our North American business is performing strongly, despite some supply chain constraints, reflecting resilient…

VINTNERS CONTINUE TO CAPITALIZE on the fast-rising “better for you” wine segment, as American drinkers increasingly opt for health- and wellness-oriented products. These new wines boast fewer calories, fewer carbohydrates, and 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. Until recently, Fitvine had been the most widely known brand in the segment. It launched at retail in 2017, initially at Whole Foods, and sources wines from California and Italy. Fitvine ($15 a 750-ml.) averages less than 1 gram of sugar per liter, or less than 0.09 grams per 5-ounce glass. Fitvine depletions registered a 45% increase in 2020, and the brand is expected to reach 450,000 cases by…

SOUTHERN GLAZER’S HAS NAMED Mark Chaplin as senior vice president, sales and marketing, reporting directly to Gene Sullivan, chief sales and marketing officer. Chaplin will now assume the leadership role of Southern Glazer’s corporate supplier management team, which serves as national brand managers for key strategic suppliers. Also, Zachary Poelma has been promoted to senior vice president, supplier strategy, reporting directly to Sullivan and working with Chaplin on “embedding a supplier-centric approach” across supplier strategy, insights, and other supplier support functions, according to the company. • Independence Wine & Spirits (IWS), the Manhattan-based distributor of fine wines and spirits owned by the Taub family, has appointed John Sellar as executive vice president. A 25-year industry veteran, Sellar spent decades with Frederick Wildman & Sons, most recently as SVP and general…