Dear Client:2019 has certainly been a busy year on the M&A front. A panel at the recent Wine Industry Financial Symposium discussed what’s happening in the wine industry marketplace and where they see it heading, particularly over the next 12-18 months. THE IMPACT OF GALLO/ STZ DEAL. You can’t discuss the current M&A landscape without mentioning … Continue reading “What’s Impacting the Wine M&A Landscape”

Dear Client:Campari sales growth decelerated in Q3, but global net sales are still up nearly 5% for the nine months through September 30. In the Americas, sales were up 6.5%, driven by performance in the US. Campari chief Bob Kunze-Concewitz said the company still “achieved strong organic sales growth” for the nine-month period, “despite the tough … Continue reading “Campari Growth Decelerates in Q3, but Outlook Remains Positive”

Dear Client:UK-based Brockmans Gin launched in the US in early 2014. The brand is now available in 18 states and plans to reach national expansion by the end of 2021. To support its growth plans in the US, former Diageo chief Paul Walsh joined Brockmans advisory board earlier this month. Brockmans co-founder and chief executive Neil … Continue reading “Brockmans Gin Growing 50%, Plans to go National by 2021”

Dear Client:Two years after the devastating North Bay wildfires, California Gov. Gavin Newsom issued an emergency proclamation today for the counties of Sonoma and Los Angeles due to fires in the areas.  The Kincade fire is burning through Geyserville and Alexander Valley in Sonoma County.  The wildfire started Wednesday night, burning through 16,000 acres by Thursday … Continue reading “CA Gov. Declares State of Emergency in Sonoma & LA Due to Fires”

Dear Client:Grupo Cuervo reported strong results this morning, with global volumes up 6.8% and net sales up 12.5% on an underlying basis for the third quarter ended September 30, driven by growth across all regions, according to chief Juan Doimingo Beckmann. GLOBAL BRAND PERFORMANCE. Tequilas reported the highest growth rates for the period along with the … Continue reading “Cuervo’s Tequilas & RTDs Report Strong Growth in Q3”

Dear Client:Bacardi-owned Patron has big plans for e-commerce, hoping that 20% of its business will be through e-commerce by 2030. Part of the strategy to reach that goal includes using Instagram as a shopping platform.   The brand has partnered with social video commerce agency MikMak to allow Instagram users to swipe up on Instagram Stories ads … Continue reading “Patron Now Available on Instagram”

Dear Client:The main question surrounding cannabis has been: how is it going to affect beverage alcohol consumption? So far, data shows that legal cannabis is not having a significant impact on the bev alc market. But the long-term impact is “inevitable,” according to BDS Analytics. So what makes them so sure? The percent of alcohol consumers consuming … Continue reading “More and More Alcohol Consumers also Consuming Cannabis”

Dear Client:Last week, we covered top revenue drivers and challenges for wineries as well as three-tier sales growth compared to direct-to-consumer sales growth from the Wine Industry Financial Symposium’s annual executive survey [see WSD 10-15-2019]. Today we’ll break down top trends and how wineries are playing in them.  ROSE. The majority of respondents (just over 77%) … Continue reading “Wineries are Placing their Bets on These Trends”

Dear Client:Treasury Wine Estates announced that chief Mike Clarke will retire in the first quarter of fiscal 2021, per a release. Current coo Tim Ford will take his place at the helm. Mike will serve as an advisor to the company for up to a year after his retirement “to provide strategic support across key initiatives … Continue reading “TWE Chief Mike Clarke to Retire”

Dear Client:Remy Cointreau reported global organic sales down 3.6% for the first half of its fiscal year ended September 30. Though cfo Luca Marotta stressed on this morning’s earnings call that underlying market trends remain strong for the company in its key regions of Mainland China and the US. In the US, sales were up mid … Continue reading “Remy’s Cognac Sales Slip in H1, But Underlying Trends “On Track””

Dear Client:In the US, Pernod Ricard started its fiscal year on the right foot, with organic sales up 6% for the first quarter ended September 30 thanks to innovation and advance shipments, with an underlying trend of 4%.Jameson continues to report strong growth in the US, up high single digits. Jameson Black Barrel reported “strong … Continue reading “Shipments and Innovation Boost Pernod Q1 Sales”

Dear Client:Casual dining sports bar chain, Winking Lizard Tavern, has about 23 locations in Ohio, including a couple of its high-end, whiskey oriented concepts, called Lizardville. You can imagine that the bulk of their bev alc sales comes from beer. But WLT director of operations John Lane told WSD that they’re growing share of spirits and … Continue reading “How this Sports Bar is Growing Share of Spirits and Wine”

Dear Client:Despite yesterday’s coverage that wine volume trends may be in trouble [see WSD 10-14-2019], the majority of wine producers (85%) are projecting revenue growth and 75% are projecting greater profitability, according to the Wine Industry Financial Symposium’s annual executive survey.REVENUE DRIVERS & CHALLENGES. The survey breaks respondents down between large (more than 100,000 9L … Continue reading “Winery Execs on DTC v. 3-Tier Sales Growth”

Dear Client:Spirits volumes have been growing pretty steadily over the last five quarters between 2.3%-2.6%, while wine volumes have been on a downward trend hitting -1.4% in Q2 2019, according to SipSource’s latest quarterly report. You may recall, SipSource was launched earlier this year by Wine & Spirits Wholesalers of America. It includes real depletion data … Continue reading “SipSource: Wine Volume Trends Show Early Warning Signs”

Dear Client:In case you’ve been living under a rock for the past few weeks, you know that the House is moving forward with an impeachment inquiry of President Trump following a whistleblower’s complaint. D.C. is all abuzz with hearings and subpoenas. That got us wondering, could the impeachment inquiry impact the passage of the Craft Beverage … Continue reading “Could Impeachment Inquiry Hinder Passage of FET Reduction Bill?”