Innholdsfortegnelse for August 1-15, 2022 i Shanken's Impact Newsletter

As vice president, Americas, for the Bacardi rum portfolio, Lisa Pfenning oversees Bacardi Ltd’s largest brand in the U.S. market, where it has annual volume of some 6.8 million cases, according to Impact Databank. In recent years, Bacardi has moved to capitalize on the brown spirits boom to offer aged rum styles to a new generation of discerning drinkers. The largest aged rum in the range, Bacardi Reserva Ocho, grew by 21% to 28,000 cases in the U.S. last year. Impact recently caught up with Pfenning to discuss the progress of Bacardi’s premiumization efforts. IMPACT: What role do you see aged offerings playing within the wider rum category? Pfenning: Premium spirits consumption is on an uptick, including in the on-trade and at-home segments, so it’s clear that the pivot to…

MOËT HENNESSY SAW SALES INcrease 14% organically to €3.3 billion ($3.4b) in its fiscal first half ended in June, while profit from recurring operations jumped 25% to €1.15 billion ($1.2b). The luxury giant was boosted by 16% growth from its Champagne business during the six-month period, “leading to increasing pressure on supplies,” according to the company. The Hennessy brand was hampered by health restrictions in China and “logistical disruptions” in the U.S., but still gained ground owing to a catchup in deliveries to the U.S. in the second quarter, along with price increases.…

GRUPO CUERVO ACHIEVED 22% NET sales growth to just over $1 billion in its fiscal first half ended in June, even as supply chain struggles and tough comps hit U.S. volumes in the second quarter. The company’s operating income grew by 32% to $206 million in the first six months of the year. Overall, Cuervo’s second quarter sales came in up 19% to $567 million on a volume increase of 11.4% to 7.1 million cases, with operating income jumping 49% to $107 million. The strong numbers came despite logistical challenges and difficult year-on-year comparisons in the U.S. and Canada, which accounted for 60% of sales in the second quarter but saw only a 0.2% increase, coinciding with a volume decline of 7.6% to 4.1 million cases. Cuervo cited “an impact from…

• STOLI GROUP IS LAUNCHING TULchan Gin globally. Taking its name from Tulchan Estate in Scotland, Tulchan is a small batch gin distilled in Speyside. The 45% abv gin includes botanicals like sloe berries, elderflower and blackberry leaves which are found on the Tulchan Estate. One unusual botanical is asparagus, which provides the gin with a bitter edge and unusually long finish, according to the company. It joins Stoli Vodka, Elit Vodka, Bayou Rum, Kentucky Owl, Villa One, Gator Bite Rum Liqueurs, Cenote Tequila, and Se Busca Mezcal in Stoli’s spirits portfolio. • SOUTHERN GLAZER’S HAS AGREED to distribute Tilray CBD drinks in the U.S. market. Southern Glazer’s will be the exclusive distribution partner for the Tilray Wellness CBD beverage portfolio across 13 states, with opportunities to scale nationwide. The strategic…

CONSTELLATION BRANDS HAS TAKEN a minority stake in canned wine brand Archer Roose, through the corporation’s venture capital arm and its Focus on Female Founders program. The price and exact stake weren’t disclosed. Last year, Archer Roose shipped 35,000 cases in the U.S. and co-founder Marian Leitner-Waldman tells Impact that the brand is on track to hit 100,000 cases or more in 2022. Currently, Archer Roose’s wines are available in 46 states across the U.S. and are sold in chains like Kroger and Eataly, with a planned expansion into Target coming this fall. Additionally, the brand is served on JetBlue flights. Archer Roose’s porftolio is made up of six canned releases—sparkling white and rosé wines from Italy, an Italian Pinot Grigio, an Argentine Malbec, a Chilean Sauvignon Blanc, and a French…

THE U.S. TREASURY DEPARTMENT’S ALCOHOL AND TOBACCO TAX AND TRADE Bureau (TTB) issued its long-awaited notice of a proposed rule to define and recognize American single malt whisky as a specific category. The news comes as a boon to American distillers who have sought the classification for several years as they continue to establish American single malts as a unique category within the burgeoning brown spirits market. “The formal establishment of standards of identity for American single malt whisky is a clear recognition that this rapidly growing category is unique and deserves to be defined and protected as a distinctive product of the United States,” said DISCUS president and CEO Chris Swonger. “Consumer fascination with American single malt whisky is at an all-time high and establishing a clear definition will drive…

CAMPARI GROUP HAS POSTED SALES UP 19% ON AN ORGANIC BASIS TO €1.26 billion ($1.28b) for its fiscal first half ended in June. Campari’s sales are up 45% versus the same period in 2019. Adjusted EBIT jumped 28% organically to €311 million ($316m) year-on-year, and has risen 68% since the first half of 2019. Campari was boosted by a 7% sales increase in the U.S., its largest market, accelerating in the second quarter despite a challenging year-on-year comp. The company said its core brands continue to gain ground in the U.S., with Wild Turkey, Espolòn, Aperol, and Campari all showing double-digit sales growth. Grand Marnier declined “due to a tough comparison base and volumes constraints linked to glass availability,” as did Skyy, which continues to face heavy competition in the…

WITH THE ECONOMY SENDING CONFUSING SIGNALS this year, it’s been an uncertain consumer environment, with some preparing for a recession amid rising interest rates and others more optimistic about a hoped-for “soft landing.” But in the wine trade, one thing remains clear—it’s the premium-plus segment that is driving consumer demand. According to Impact Databank, the total market for table wines in the U.S. slipped 1.7% by volume in 2021, with another small decline projected for this year. But the overall market slowdown is being driven by declines in below-$10 wines, with bottles priced above that mark averaging 5% volume growth over the past five years, and matching that performance in 2021. Domestic wines account for two-thirds of the premium-plus table wine market in the U.S., and they’ve continued to advance…

DIAGEO SAW SALES CLIMB 21% TO £15.5 billion (18.8b) in its fiscal year ended in June, with the company crediting the robust growth to “continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, underpinned by favorable industry trends of spirits taking share of total beverage alcohol and premiumization.” Operating income jumped 26% on an organic basis to £4.4 billion ($5.3b). “Our net sales growth was across categories,” said Diageo CEO Ivan Menezes. “We benefited from the on-trade recovery, continued global premiumization trends, with our super-premium-plus brands up 31%, and from price increases across our regions. I am particularly proud of the performance of Johnnie Walker, which delivered double-digit growth across all regions to surpass 21 million cases globally.” Johnnie Walker has the highest retail value…

SPIRIT OF GALLO, THE SPIRITS ARM OF E.&J. Gallo, has invested in Horse Soldier Bourbon, bringing the wine and spirits giant into the burgeoning American whiskey market. Financial terms weren’t disclosed but the company said it was making a “strategic investment” in Horse Soldier and would begin distributing the brand immediately. Horse Soldier, named for the horse-back Green Berets who began U.S. military operations in Afghanistan following 9/11, has been around since 2016, and was created by a team that included horse soldiers from the 5th Special Forces Group. Currently, Horse Soldier’s portfolio is available in 17 U.S. markets. The range includes a Straight Bourbon (retailing around $50), Small Batch Bourbon ($70), and Barrel Strength Bourbon ($80). In an interview with Impact, Spirit of Gallo vice president and general manager…

BOSTON BEER IS LAUNCHING Twisted Tea Sweet Tea Whiskey through its partnership with Beam Suntory. Twisted Tea Sweet Tea Whiskey will launch across five markets, including MA, RI, OH, MO and TX, plus military outlets. Boston Beer Company will handle national marketing and advertising, public relations, and social media promotion for Twisted Tea Whiskey, and is leveraging Beam Suntory’s expertise in distillation, distribution, sales and trade and local marketing. It’s rolling out in 50-ml., 750-ml. and 1-liter bottles. The new product is bottled at 65 proof.…

FREDERICK WILDMAN & SONS PRESIdent and COO Marc Hirten has stepped down, with his duties to be filled by CEO Roberta Corrà until a replacement is named. Additionally, Matt Munn has been named chief commercial officer at Wildman. Munn, a 20-year industry veteran, was most recently with Southern Glazer’s. • Union Square Hospitality Group (USHG) has appointed Chip Wade as chief executive, effective September 6. Wade, who joined the restaurant group in 2019 as president and COO, replaces founder Danny Meyer in the CEO role. Meyer will remain executive chairman of USHG, whose brands include The Modern, Gramercy Tavern, Maialino, and Daily Provisions, among others. Prior to joining USHG, Wade spent 17 years in leadership with Red Lobster and Darden Restaurants. • Southern Glazer’s executive vice president and general manager…