How was the holiday selling season for the world’s largest spirits company? We’ll find out Thursday when Diageo announces its interim results, although analysts are predicting disappointing numbers.

Although large spirits companies say they’re neutral on privatization initiatives, it could be a big win for that sector of the business. The issue of privatizing spirits sales in control states, which is currently being explored in at least 4 states, made headlines over the weekend in a Marketwatch article by William Spain and David Kesmodel. The fact that its gaining attention from the mainstream press is news enough, but the article also suggests that privatizing states where the government controls spirits sales would actually benefit large distillers, while hurting brewers and small distillers.

“Retailers are looking very closely at how their space is being used,” said Danny Brager, vp of beverage alcohol at Nielsen, and more of that space is being used for beer. The number of items handled for wine and spirits was flat in 2009 versus the past couple of years, while the average retailer added 11 beer items last year, mainly crafts and domestic super-premiums. When looking just at the wine and spirits categories, more space was given to vodka and table wines priced in the sweet spot of $9-$15.

Dear Client:In its fourth quarter and full year results, LVMH Moet Hennessy saw organic revenues decline -14% for the year and -6% for the fourth quarter for its wine and spirits unit. “2009 was a turbulent year,” said Christophe Navarre, head of LVMH’s wine and spirits unit. “Eighty percent of the drop in revenue was … Continue reading “LVMH: Champagne Hurt but Spirits “Withstood the Storm””

Dear Client:“It’s been a heck of a year, heck of a decade for spirits,” Discus chief Peter Cressy told analysts and reporters at the group’s annual briefing this morning. “It’s been a resilient year from my perspective,” he continued. Overall volumes for the spirits industry at the on- and off-premise grew 1.4%, while dollar sales … Continue reading “Peter Cressy: “It’s been a Heck of a Year””

Dear Client:Is the wine glass half empty or half full? Danny Brager, vp group client director, beverage alcohol at Nielsen, encouraged listeners to be optimistic and focus on the wine industry’s growth opportunities rather than its roadblocks during his presentation at the Wine Market Council’s 5th Annual US Wine Consumer Trends conference in Dallas. [Ed … Continue reading “Wine Glass Half Full”

The 1st Circuit Court of Appeals upheld a lower court ruling yesterday in favor of Family Winemakers of California that says the state’s 30,000 gallon cap is unconstitutional. BACKGROUND. The Massachusetts legislature approved HB 4498 in 2006 over the veto of then-Gov. Mitt Romney. It stipulates that wineries who sell over 30,000 gallons a year … Continue reading “Direct Shipper Victory in Massachusetts”

The idea of minimum pricing has been tossed around for years in the UK but chances of it happening seemed more likely over the past week. In what led to an influx of speculation from the press, the lower House of Commons Health Committee said in a new report that setting a minimum price for … Continue reading “Minimum Price Talks Heat up in the UK”

Dear Client:The World Health Organization (WHO), the United Nation’s public health arm, is considering a draft strategy that recommends that member states raise alcohol taxes and implement tighter marketing regulations to curb over-consumption. WHO’s executive board will examine the draft strategy next week and is expected to approve it. It will then be sent to … Continue reading “WHO Alcohol Strategy up for Review”

Dear Client:MECKLENBURG ABC CHAIRMAN “WILL NOT RESIGN”After reports and accusations surfaced weeks ago that a Diageo employee wined and dined several employees of the North Carolina Mecklenburg County ABC Board, chairman Parks Helms is declining to step down. You’ll recall that local paper Charlotte Observer unveiled that the Diageo rep spent $12,700 on the dinner … Continue reading “Latest Wine & Spirits Headlines”

Dear Client:As a collective group, domestic wines were the only ones to post growth in November, according to IRI food, drug and c-store scan data in the four weeks to Nov 29. Dollar sales of domestics grew 4.9% and volume gained 3.1%. Meanwhile, imports declined -0.5% in sales and -0.4% in volume. Where domestics gained … Continue reading “A Look Back at November’s Wine Performance”

Dear Client:Increased inventory at the US distributor level took a toll on third quarter sales to November 30 due to an expected inventory sales shift to the second quarter, Constellation chief Rob Sands said this morning. Organic net sales of branded wine declined -3% in North America. Recall that Constellation shifted $40-$50 million of inventory … Continue reading “Constellation Has Tough Q3”

Dear Client:Private label spirits brands have gained a lot of traction in the recession and now Sam’s Club is jumping on board. Over the holidays the retailer launched a premium, private label Member’s Mark vodka under the label Rue 33. It will be available in the 241 locations that are permitted to sell alcohol. This … Continue reading “Sam’s Club Launches Private Label Vodka”

There are a few trusty ways states can garner more money from the alcohol business with tax increases being number one. Tax increases are a constant concern in this industry, especially in recent years as the recession (and let’s face it, internal mismanagement) led many states close to bankruptcy. When considering tax increases, alcohol and … Continue reading “State Funding Initiatives Aside from Raising Taxes”

Dear Client:2009 was a strange year for the industry. The recession introduced a lot of changes as the “less is more” mantra gained, it seemed, more steam with each passing day. Even more than in 2008, we saw consumers staying home instead of venturing to restaurants, bars and nightclubs. We also saw them trading down … Continue reading “A Look at the Past and What’s in Store for 2010”