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

IT’S A TALE BEING TOLD INCREASINGLY ACROSS THE drinks business. Supply chains are under pressure due to a combination of pandemic-related disruptions and robust demand for a wide range of wine, spirits, and beer products. Hennessy Cognac’s supplies have been outstripped by demand for years, even as the company has expanded its output, owing to skyrocketing popularity especially for its entry-level VS tier. Even so, Hennessy’s global volumes have increased by 1.5 million cases since 2015, according to IMPACT DATABANK. Hennessy’s challenge mirrors that of the overall Cognac category, whose growth has been soaring in recent years, driven by the ascendant U.S. market. Global category volumes are up by more than 2 million cases since 2015, despite a dip last year amid the pandemic, which now appears to have been…

THE WINE GROUP HAS TAKEN A MInority stake in MPL Brands, known for its Rancho La Gloria line of wine-based RTDs. Financial terms weren’t disclosed. The deal will see The Wine Group represent Rancho La Gloria agave-based wine products in the U.S., and become MPL’s sales and production partner. Sales of Rancho La Gloria products are fast approaching 2 million cases in 2021, said The Wine Group, up from a total of 1.3 million cases last year, according to Impact Databank. The brand was the top-selling wine-based RTD cocktail franchise in the U.S. market last year, earning Impact “Hot Brand” honors. Best known for its wine-based Margarita RTDs, Rancho La Gloria is gluten-free and made with 100% Blue Weber agave wine. Rancho La Gloria is also sold in canned and…

TWO OF THE LEADING COMPANIES IN the beverage alcohol e-commerce category are joining forces, with upscale player ReserveBar set to acquire fellow delivery provider Minibar Delivery for an undisclosed sum. ReserveBar says the acquisition will accelerate expansion of its retailer network and its planned introduction of on-demand delivery. “This industry consolidating acquisition firmly establishes ReserveBar as the first spirits e-commerce company that can meet all consumer needs and occasions while accelerating the services and performance we offer to suppliers and retailers,” said ReserveBar chairman Jim Clerkin. Both ReserveBar and Minibar coordinate delivery through their respective networks of retail partners, but Reserve-Bar is known for luxury spirits, customization, and gifting, while Minibar Delivery has served the broader market for on-demand delivery, partnering with retailers across 1,000 cities, including both independents as…

DESPITE SUPPLY CHAIN ISSUES AND PRODuct shortages, Cognac consumption grew 24.5% to 8.4 million cases in the United States last year, according to Impact Databank. Of the top six brands in the U.S. market, Martell is the only one that declined, dropping 25.5% to 174,000 cases in 2020. Meanwhile, No.-1 brand Hennessy grew 21.2% to 5.1 million cases, followed by Rémy Martin’s 50.6% jump to nearly 1.5 million cases and Courvoisier’s 20.8% rise to 706,000 cases. In fourth place is D’Ussé, which increased 47.1% to 548,000 cases, and in the fifth spot is Salignac, with a 4.7% bump to 177,000 cases. Worldwide, shipments dropped 11.2% to 15 million cases last year, according to Impact Databank. The United States is the biggest market by far with a 1.7% nudge to slightly…

PORT PILEUPS, SHIPPING DELAYS, AND SUPPLY CHAIN disruptions continue to hamper industries across all sectors of the economy—including beverage alcohol. For wine and spirits in particular, glass supplies and shipping snags are two of the biggest problems. Sales remain strong, but businesses of all sizes—including producers, importers, and retailers—are scrambling to stock the most sought-after releases moving into the holidays. “Supply constraints are always popping up—but never to the extent and scope that we’re seeing now,” says Nima Ansari, spirits buyer at Astor Wines & Spirits in Manhattan. Preparing for the holiday crunch requires “a full court press of checking in daily on ETAs, quantities, and anticipating needs—and with the assumption that further delays will continue at least for the foreseeable future. We’re prioritizing key SKUs and considering alternatives.” At…

AMBER BEVERAGE, PART OF STOLI owner SPI Group, has agreed to acquire Ireland’s Walsh Whiskey for an undisclosed sum. Walsh produces The Irishman and Writers’ Tears brands, currently handled by Hotaling & Co. in the U.S. Bernard Walsh will remain managing director of the company. “Given the underlying strengths of our brands and of the long-term trajectory of Irish whiskey, this is a logical next step for us, providing a means of scaling up the business,” he said. The Irishman, the company’s original brand, is a suite of nine single malt-led whiskeys. Writers’ Tears is a range of eight pot-still-focused whiskeys. Both brands will join the ABG core brands portfolio. “This is a major step for us as a company,” noted Jekaterina Stuge, CEO of Amber Beverage Group. “We already…

THE EUROPEAN UNION HAS AGREED TO REMOVE ITS TARIFFS ON AMERICAN whiskey, which have been in effect since 2018, and have caused significant export declines for U.S. distillers in key markets. The tariffs are being removed as part of a larger deal in which the U.S. has agreed to ease its own tariffs on E.U. steel and aluminum. The E.U. is the largest export market for American whiskies, and the category saw a severe decline in the region owing to the tariffs, down nearly 40% from 2018 to 2020, a roughly $260 million decrease to $440 million in exports. The 25% tariffs had been scheduled to increase to 50% as of December. DISCUS noted that work remains to remove similar tariffs on American whiskies in the U.K. “After three very…

RÉMY COINTREAU HAS POSTED SALES up 52% to €645.3 million ($751m) for its fiscal first half ended in September. The company said results were boosted by restocking in the U.S., where the Cointreau brand has continued to make rapid gains lately, along with promising results for St-Rémy brandy and The Botanist gin, which has done well in the on-trade. Overall, Rémy’s Liqueurs & Spirits unit saw sales climb 47% to €164 million ($191m) in the first half, while the company’s Cognac business jumped 55% to €465 million ($541m). In addition to restocking, flagship brand Rémy Martin benefited from “a structural acceleration in consumption trends observed in 2020—up-trading trends, at-home consumption and the development of e-commerce,” Rémy Cointreau noted.…

JEAN-GUILLAUME PRATS IS STEPPING down as CEO of Bordeaux’s DBR Lafite before the end of the year in order to focus on his family business and consulting. Saskia de Rothschild will take over the executive management of DBR Lafite as of December 1, working with Prats—who has served in the role for four years—to ensure a smooth transition. Rothschild has been chairman of the company since 2018. DBR Lafite’s holdings include Châteaus Lafite and Duhart-Milon in Pauillac, Rieussec in Sauternes and L’Évangile in Pomerol. Outside Bordeaux, the firm owns Domaine d’Aussières in the Languedoc, Viña Los Vascos in Chile and Bodegas Caro in Argentina. •Bacardi has named Astrophel “Troy” Arquiza as global master blender of its flagship rum brand. Arquiza has been with Bacardi for more than two decades, training…

CONSTELLATION IS MAKING IT OFFIcial. Following last year’s minority investment in California’s Booker Vineyard, the corporation is exercising an option in the agreement to acquire the collection in full. Constellation’s portfolio now includes the brands Booker Vineyard, My Favorite Neighbor and Harvey & Harriet. Terms weren’t disclosed. Constellation executives tell Wine Spectator that these brands saw double-digit growth since the company’s minority investment last year. The Paso Robles–based estate vineyard, winery and tasting room are included.…

GALAXY WINE COMPANY, THE OREGON-BASED WHOLESALER OWNED BY WILSON Daniels, is expanding into the Washington market effective January 1. The company will operate out of a 22,000-square-foot warehouse and office space in Tukwila, and will have a workforce of 25 employees. “With distributor consolidation continuing to be a trend in our industry, we see opportunity with the expansion of Galaxy considering the impressive market equity built over the past three decades in Oregon,” said Wilson Daniels president Rocco Lombardo. Galaxy ranks as the third-largest wine wholesaler in Oregon, according to the company, representing more than 400 producers. Galaxy’s revenues are projected at $33 million this year. In addition to the Pacific Northwest, Wilson Daniels’ wholesale footprint covers New York, New Jersey, and Connecticut.…

FAR NIENTE FAMILY OF WINERIES & Vineyards has acquired the former Provenance Vineyards winery in Rutherford, California, from Treasury Wine Estates, for an undisclosed sum. Far Niente plans to repurpose the winery—which has annual capacity of 75,000 cases—as a home for its Bella Union Napa Valley Cabernet label, with a projected opening in early 2023. Treasury has separately sold the Provenance brand and inventory to Lodi-based Thomas Allen Wine Estates. “We have been searching for a home for Bella Union that will enable us to provide our wines and experiences to consumers and the trade and more fully tell the story,” said Far Niente CEO Steve Spadarotto. Bella Union debuted with the 2012 vintage.…

•PRINCETON, MINNESOTA’S PHILlips Distilling Company has acquired the Leroux and Kamora brands from Beam Suntory. While terms were not disclosed, Phillips is acquiring 100% of both brands from Beam Suntory. Leroux, a 208,000-case brand in the U.S., according to Impact Databank, will add 19 liqueurs and 8 brandies to Phillips’ portfolio and Kamora, a 138,000-case brand, will give Phillips a player in the popular coffee liqueur market. The acquisition will bring Leroux and Kamora alongside Phillips’ other liqueurs like Sour Puss and Butter Ripple, among other brands. •DISTINGUISHED VINEYARDS & Wine Partners is launching the Fuji whisky brand in the U.S. Fuji Single Grain Whiskey ($95) is now available at select establishments nationwide, with its flagship label ($60) slated to arrive in November. Both expressions will be available nationwide on…