Dear Client: Remy Cointreau’s global sales continue to drop this fiscal year, with global organic sales down 6.5% for the nine months ended December 31, largely thanks to strong comps and slow replenishment. “Clearly this year is a challenging year for the group,” said cfo Luca Marotta on this morning’s earnings call. “Sales are down 6.5% in … Continue reading “Remy Deals with “Challenging Year” But Shows “Sequential Improvement””

Dear Client: Yesterday, the Oklahoma Supreme Court ruled the state’s new alcohol distribution law is unconstitutional in a 5-4 vote, reaffirming a lower court’s decision.BACKGROUND. In May, Oklahoma Gov. Kevin Stitt signed SB 608 into law, requiring the top 25 wine and spirits suppliers (by sales) to offer their products to all wholesalers. SB 608 goes … Continue reading “Oklahoma Supreme Court Rules Alc Distribution Law Unconstitutional”

Dear Client: Direct-to-consumer wine sales recorded another record-breaking year. In 2019, DTC wine sales reached $3.2 billion, an increase of 7.4% in value and 4.7% in volume, according to ShipCompliant’s annual DTC report. Obviously, that’s still pretty healthy growth, but channel growth rates have slowed over the last two years.   “The days of annual 13% to 18% … Continue reading “DTC Wine Sales Hit $3.2 Billion in 2019”

Dear Client: Well that was fast. Yesterday, we reported that France was ready to come to the negotiation table to hash out details over the digital tax and the resulting retaliatory tariffs. Last night, President Trump and President Emmanuel Macron both agreed to not impose any punitive tariffs this year. In July, France’s digital services tax was … Continue reading “US and France Call a Truce, Staving Off Latest Tariffs”

Dear Client: People are buying less wine these days. In 2019, wine volumes dipped slightly and sales were up just about 1%-2%. The problem isn’t in the quality of wines, rather, the industry isn’t giving consumers what they want, according to Rob McMillan, evp and founder Silicon Valley Bank’s wine division. “[B]ased on the industry’s current results, making … Continue reading “SVB: Why (And How) Wine Brands Should Tap into Health & Wellness Trend”

Dear Client: Year-end data reports started rolling in this week. Overall, spirits and RTDs showed strong growth, while wine and beer aren’t looking too hot.  Total beverage alcohol sales were up 2.5% from 2018, reaching $167 billion last year (including both on and off-premise), according to IWSR. TBA eked out 0.3% volume growth in 2019, largely dragged … Continue reading “Top Categories in 2019: Spirits & RTDs”

Dear Client: Babe Wine founders David Oliver Cohen (“Doc”), ceo, and Josh “The Fat Jewish” Ostrovsky, cmo, took the stage at the Wine & Spirits Daily Summit on Tuesday. The subject of Babe Wine cropped up several times throughout the WSD Summit as well as the Beer Summit. Indeed, Kevin O’Brien, principal, Zepponi & Co., a bev … Continue reading “Babe Wine Founders Opine the Power of Branding”

Dear Client: New year, new predictions. Unfortunately, our crystal ball was a bit hazy, so we’ve had to rely on trends and gut instincts for our 2020 predictions. Here’s what we see in store: TAXES AND TARIFFS. Taxes and tariffs took up a lot of space in the virtual pages of WSD in 2019, and we expect that … Continue reading “What’s In Store for 2020”

Dear Client: US online alcohol sales hit $2.6 billion in 2019, up 22% year over year, according to Rabobank estimates. While online alcohol sales are growing at a nice clip, Rabobank believes bev alc companies are leaving a lot of money on the table.For instance, there’s a huge gap between alcohol’s share of spending in brick-and-mortar … Continue reading “Rabobank: Bev Alc Companies Missing Out on Billions in Online Sales”

Dear Client: In 2018, Pacific Northwest-based beer distributor Columbia Distributing made its first direct foray into wine and spirits by agreeing to take over Constellation Brands’ wine and spirits portfolio in addition to beer in Washington and Oregon [see WSD 05-03-2018]. Just last month, Columbia secured distribution rights for Treasury Wine Estates’ portfolio in Oregon. Your editor … Continue reading “Columbia Distributing’s W&S Biz Offers “Greatest Growth Potential””

Dear Client: Constellation Brands’ net sales were up 1% for the third quarter ended November 30. Not surprisingly, the wine and spirits business weighed down results, with net sales down nearly 10% for the quarter. Shipment volumes were down 13.5% for wine and spirits and depletions were down nearly 6% – though that is an improvement over … Continue reading “Constellation Focusing On Premiumization, Innovation & Brand Building”

Dear Client: The 2020 predictions are rolling in–and we certainly have some of our own–but first, let’s take a look back at our 2019 predictions and see how we did. We weren’t always exactly right, but we were certainly on the right track. 1. PREDICTION: THE CRAFT SQUEEZE. The number of craft brands and distilleries will undoubtedly … Continue reading “Grading Our 2019 Predictions”

Dear Client: The Tennessee Alcoholic Beverage Commission is cracking down on illegal direct-to-consumer shipments in the state. Following investigations, the TABC permanently ordered seven out-of-state businesses to cease and desist further alcohol shipping into the state, per a release. “Wine is the only alcoholic beverage that can be legally shipped direct to consumers in Tennessee, and it … Continue reading “Tennessee ABC Cracks Down on Illegal DTC Shipments”

Dear Client: 2019 has been a busy year when it comes to supplier m&a activity, with the proposed Constellation/Gallo deal being the largest. The number of deals continues to climb every year, reaching more than 40 suppliers deals so far in 2019.The number of wine deals compared to the number of spirits deals were just about … Continue reading “2019 M&A Recap: Supplier Deals on the Rise”

Dear Client: In recent years, spirits have been growing faster than both wine and beer. Now, we’re seeing the “biggest divergence between wine and spirits in recent memory,” according to SipSource Analyst Dale Stratton. Indeed, the trend gap between spirits and wine grew to 5.4 percentage points in the rolling 12-month period ended September 2019. Spirits depletions … Continue reading “SipSource: Spirits Pulling Ahead of the Pack by More than 5%”