Dear Client:   US craft spirits is still a relatively small segment of the overall spirits category, but the segment’s growth is outpacing the overall category and is on track to “vastly outperform the mainstream market in the coming years,” according to a recent IWSR report.  Indeed, in 2020 US craft spirits grew volumes by … Continue reading “IWSR: US Craft Spirits to “Vastly Outperform” Mainstream Market”

Dear Client:   The franchise law dispute between Missouri-based wholesaler Major Brands and Mast-Jagermeister along with Southern Glazer’s Wine & Spirits has come to a head this week as the trial kicked off in federal court in St. Louis.  BACKGROUND. In February 2018, Mast-Jagermeister notified its distributor network that it intended to consolidate its US … Continue reading “Major Brands v. Mast-Jager, SGWS Trial Kicked Off this Week”

Dear Client:   Republic National Distributing Co. has been busy expanding its footprint this year. Today, the distributor announced it has signed a letter of intent with Opici Family Distributing to create an equal partnership joint venture in New York. “Today we are excited to announce that Republic National Distributing Company will expand its geographic … Continue reading “RNDC Expands into New York through JV with Opici”

Dear Client:  And the acquisition news just keeps rolling in. The latest: Treasury Wine Estates announced it has reached an agreement to acquire Napa Valley-based Frank Family Vineyards for $315 million. That’s an acquisition multiple of 13.2X. The deal is expected to close next month.Frank Family Vineyards was founded in 1992 by Rich Frank. The … Continue reading “TWE to Acquire Napa’s Frank Family Vineyards for $315 Million”

Dear Client:   This year, big wine and spirits distributors (Southern Glazer’s, RNDC and Breakthru) expanded their portfolios to include CBD products. Minnesota-based Johnson Brothers is making moves in the cannabis distribution space in a different way.  This week, Johnson Bros. provided $8 million in funding to Green Acre Capital, a cannabis-focused private investment fund, … Continue reading “Johnson Bros. Making Moves in Cannabis Distribution Space”

Dear Client:   Vintage Wine Estates (VWE) reported a net revenue increase of about 3.4% for the first quarter of its fiscal year ended September 30, driven by acquisitions and strong organic increases in direct-to-consumer. Meanwhile, case volume was actually down 15% for the quarter largely thanks to supply chain constraints impacting its B2B segment.  … Continue reading “VWE Improves Full Year Guidance, Plans At Least One More Acquisition this Year”

Dear Client:  Vintage Wine Estates continues its track of making 2-3 acquisitions per year. Today the company announced the acquisition of California-based Ace Cider for an undisclosed sum. The transaction is expected to close tomorrow. “Ace is an excellent complement to our wine portfolio and its products are distributed through the beer channel which provides a … Continue reading “Vintage Wine Estates Acquires Ace Cider”

Dear Client:   Earlier this year, Delicato Family Wines acquired Francis Ford Coppola Winery, making it the No.5 supplier of all wine above $11 in the US market as well as the No.5 supplier by volume across all price segments and the No.3 exporter of California wines [see WSD 06-24-2021].  Delicato Family Wines chief Chris … Continue reading “Delicato Chief Talks Coppola Acquisition & Current M&A Landscape”

Dear Client:   Earlier this year Breakthru Beverage Group launched a dedicated fine wine strategy called Aspect, billed as a uniform, cohesive portfolio solution for the rapidly growing fine wine space [see WSD 03-08-2021]. Your editor recently checked in with Daren Cliff, senior director, business development – Aspect, to discuss how things are going under … Continue reading “Fine Wine Brands Thriving Under Breakthru’s New Aspect Strategy”

Dear Client:   In recent years, and particularly over the last 18 months or so, wineries have been investing further in digital and direct-to-consumer capabilities. And it seems to be paying off, according to the annual Wine Industry Financial Symposium executive survey presented this week in Napa.  DTC ENHANCING WINERY REVENUE. When asked what is … Continue reading “Survey: DTC Top Answer to What’s Enhancing Winery Revenue”

Dear Client:   Today, Constellation Brands announced it has acquired Paso Robles-based My Favorite Neighbor LLC, which includes Booker Vineyard, My Favorite Neighbor and Harvey & Harriet wine brands. You may recall, Constellation took a minority stake in Booker, a super-luxury, direct-to-consumer focused portfolio in 2020 [see WSD 07-16-2020]. As part of the agreement, My … Continue reading “Constellation Fully Acquires Booker Vineyard”

Dear Client:   Yesterday, ReserveBar announced it has agreed to acquire Minibar Delivery for an undisclosed sum [see WSD 11-08-2021]. ReserveBar ceo and co-founder Lindsay Held and president Derek Correia gave WSD more color on the deal and the company’s outlook for the future.  MORE COLOR ON THE MINIBAR DEAL. We wondered how long they … Continue reading “ReserveBar Brass Talks Minibar Deal, ‘E-comm Everywhere’ Strategy & More”

Dear Client:Some consolidation this morning in the e-commerce sector. ReserveBar announced this morning that it has agreed to acquire Minibar Delivery. This acquisition “accelerates ReserveBar’s expansion of its retailer fulfillment network and planned introduction of on-demand delivery capabilities,” per release. Financial details were not disclosed. Minibar was founded in 2014 and has built a retail network of … Continue reading “ReserveBar to Acquire Minibar Delivery”

Dear Client:  It’s “common wisdom” right now that many of the current supply chain challenges we’re facing are a result of the pandemic, but “this crisis began long ago,” said Agriculture Transportation Coalition executive director Peter Friedmann during a webinar yesterday hosted by the Distilled Spirits Council. Indeed, “COVID exacerbated some long standing challenges and self-inflicted … Continue reading “Some Supply Chain Challenges Only Exacerbated by COVID”

Dear Client:  The Wine Group (TWG) announced today it has entered into a strategic partnership with MPL Brands NV, owner of fast-growing wine-based ready-to-drink brand Rancho La Gloria. TWG will now exclusively represent Rancho La Gloria in the US. Terms of the deal were not disclosed. As part of the agreement, TWG has made a minority … Continue reading “The Wine Group Takes Minority Stake in Rancho La Gloria Owner”