Dear Client: The softness we saw in bev alc trends in 2023 is leaking into 2024, with lackluster Q1 results. But there’s reason to hope for gradual recovery as we move through the year. Your editor pinged a few wine and spirits distributors to get a better read on Q1 performance as well as their … Continue reading “Distribs Report Soft Q1, But Prepping for Gradual Recovery”
Dear Client: The Oregon wine industry’s economic impact continues to grow. Indeed, economic activity directly or indirectly related to Oregon’s wine industry was estimated to be more than $8.1 billion in 2022, an increase of 12.8% compared to 2019, according to an economic impact study released yesterday by the Oregon Wine Board. The study was … Continue reading “Oregon Wine Industry Economic Impact Tops $8 Billion”
Dear Client: This week Phil Hurst, in partnership with Ken Wilson and Wilson Artisan Wineries, re-acquired the Truett Hurst and VML wineries. No financial details were disclosed. The partnership to re-acquire the brands “was driven by the goal to bring Truett Hurst & VML back to their roots as a family and locally-owned wineries,” per … Continue reading “More Wine Brands Going Back Under Founder Control”
Dear Client: During the Distilled Spirits Council’s annual economic briefing this year, DISCUS chief Chris Swonger called 2023 a “reset year” as the industry grappled with normalizing trends after a couple years of accelerated growth during the pandemic. DISCUS chief of policy, strategy & membership Christine LoCascio led a panel discussion at the trade group’s … Continue reading “Key Themes Impacting Industry Growth in ’23, ’24, and Beyond”
Dear Client: Michigan recorded a 21% decline in illegal direct-to-consumer bev alc shipments in Q1 2023 compared to the same period in 2022, according to data recently compiled by the Michigan Beer & Wine Wholesalers Association (MBWWA). The MBWWA says the decline in illegal bev alc shipments into the state “highlights the ongoing work” of … Continue reading “MI Records Drop in Illegal DTC Shipments as AG Continues to be Vigilant”
Dear Client: This week we reported on a couple interesting deals, including Sazerac acquiring ready-to-drink company BuzzBallz and Patz & Hall founder acquiring the wine brand back from Ste. Michelle Wine Estates. Both deals clearly point to larger strategy objectives for the bigger companies. SAZERAC TO ACQUIRE BUZZBALLZ. Sazerac’s acquisition of BuzzBallz bolsters the company’s … Continue reading “Recent M&A Points to Wider Strategy Objectives”
Dear Client: Yesterday we reported on Brown-Forman’s ambition to double the size of the company by 2032, and part of that plan which includes doubling the size of the American whiskey business [see WSD 03-20-2024]. Today we’ll dig into their other long-term strategic priorities and growth aspirations. TRIPLING THE TEQUILA BIZ. In addition to doubling … Continue reading “B-F Brass Detail Strategies to Achieve Long-Term Growth Ambitions”
Dear Client: Sazerac is extending into the fast-growing ready-to-drink category, announcing today it has reached an agreement to acquire BuzzBallz. Terms of the deal were not disclosed. BuzzBallz was founded in 2009 by Merrilee Kick. The RTD brand includes malt-, wine-, and spirits-based products. The spirit-based cocktails are consistently growing double digits in Circana-measured channels, … Continue reading “Sazerac to Acquire BuzzBallz”
Dear Client: Last week, we covered Rabobank’s recent report on glass bottle lightweighting as well as analyst Bourcard Nesin’s takes on the matter [see WSD 03-14-2024]. Today, we’ll continue our coverage of that discussion, focusing on what some of the potential payoffs lightweight glass may have for the wine industry. CONSUMERS DON’T CARE ABOUT WEIGHT. … Continue reading “How Going Lightweight Can Lift the Bottom Line”
Dear Client: Today James Hall, founding partner and winemaker of Sonoma-based Patz & Hall, along with a group of wine industry veterans, repurchased the wine brand from Ste. Michelle Wine Estates for an undisclosed sum. “This rare opportunity to reclaim the winery from Ste. Michelle Wine Estates is the culmination of my life’s work over … Continue reading “Founding Winemaker Buys Back Patz & Hall from SMWE”
Dear Client: Even though US online bev alc sales have moderated recently, IWSR still expects the channel to outperform the total US bev alc market, with a CAGR of 7% for online alcohol sales vs. 1% for total bev alc between 2023 and 2027. With that growth rate of 7%, e-commerce’s share of US bev alc … Continue reading “US Online Bev Alc Sales Moderate, But IWSR Sees Plenty of Room to Grow”
Dear Client: Sustainability is increasingly moving to top of mind for the wine industry as the effects of climate change become more apparent and costly. And consumers are becoming more savvy when it comes to purchasing sustainable or eco-friendly products. Late last year, Rabobank released the first in a series of reports in conjunction with … Continue reading “Glass May be Wine’s Top Sustainability Challenge and Opportunity”
Dear Client: After a bit of a delay, Vintage Wine Estates reported its second quarter earnings yesterday afternoon for the quarter ended December 31. Net revenue was down 13.3% in Q2, resulting in a net revenue decrease of 9.7% for the first six months of the fiscal year. Breaking it down by business segment, both … Continue reading “VWE Revenues Down Double Digits in Q2 as it Works to Execute Turnaround Plan”
Dear Client: After a decent start to the year [see WSD 02-14-2024], February proved to be more difficult as off-premise wine trends decelerated. Table wine sales were down 1.7% and volumes were down 4.6% for the four weeks ended February 25 in Circana multi outlet + convenience. Year-to-date, table wine sales are down 0.7% and … Continue reading “Scan Data Shows Weaker Wine Trends in February”
Dear Client: Earlier this year Constellation Brands announced that Robert Hanson, president of the wine and spirits business, would be stepping down at the end of February [see WSD 01-04-2024]. Now the company has named his successor: Sam Glaetzer. “Sam is a well-rounded senior leader with a wealth of experience in wine and spirits and … Continue reading “Constellation Names New Wine & Spirits President”
Dear Client: At the recent American Craft Spirits Association conference, your editor sat down with ACSA ceo Margie Lehrman and current board of directors president and founding partner of Minnesota-based J. Carver Distillery Gina Holman. They both spoke in-depth about some of the priorities ACSA has for this year and how they see craft spirits … Continue reading “ACSA Leadership on Navigating Craft’s “Teenage Years””
