Dear Client:The spirits industry had mixed results in the 52 weeks to November 14. Certain super-premium and value brands were on fire with little rhyme or reason, it seems. Overall, value and mid-priced spirits brands outperformed the industry but not by a lot, according to Nielsen off-premise scan data that spans food, drug, c-store, several … Continue reading “Value Spirits Take Share Off-Premise”

Dear Client:In a rather bizarre story, Australian wine giant and maker of Yellow Tail, John Casella of Casella Wines, has allegedly been the victim of extortion for almost two years, reports the Daily Telegraph. During that span of time, he allegedly paid a “substantial” amount of blackmail money but finally went to the cops after … Continue reading “Casella Family Falls Victim to Extortion”

Dear Client:Constellation Brands is at “the beginning of a multi-year turnaround,” says UBS senior analyst Kaumil Gajrawala in a note to clients, with cfo Bob Ryder as a “key driver behind the focus on improving returns.” The positives include: “(1) exclusive distributor relationships, (2) streamlined portfolios, (3) new compensation structure based on improving margins and … Continue reading “Constellation Brands Turns the Corner”

Dear Client:All ears were on Brown Forman this morning as the industry listened for early holiday sales indicators in the company’s second quarter results ended October 31. Luckily B-F did not disappoint and offered some insight into the holidays and beyond. Most notably, B-F execs said there are concerns of increased trading down in the … Continue reading “BF Says Consumers are Increasingly Trading Down”

Dear Client:Supervalu’s new ceo, Craig Herkert (who was chief of Wal-Mart Americas), is hoping to boost the image of the nation’s fourth largest retailer with a new focused strategy. While Supervalu’s competitors were quick to offer consumers discounts and deals in the recession, Craig admits his company was “not as quick to adapt as we … Continue reading “Supervalu Changes Image for the New Consumer”

Dear Client:We got a lot of insight from subscribers this week on the current holiday situation. The consensus is that suppliers are offering extreme discounts off-premise to boost volume in the short-term, leading some industry insiders to fear that discounts could result in long-term damage. Others feel this is a normal part of the economic … Continue reading “On-Premise Growth Key to Fine Wine Resurgence”

Dear Client:In response to our newsletter yesterday, several readers gave other suggestions for why $20+ wines grew especially strong in October based on IRI scan data. For one, comparisons were pretty easy. October 2008 is when the economy bottomed out and luxury wine sales took a nosedive that continued through the rest of the holiday … Continue reading “A Closer Look at Holiday Promotions”

Dear Client:In perusing some data today from IRI we were surprised to discover that wines in the $20+ range were the fastest growing table wine category in the 4 weeks to November 1 (or the month of October) by a long shot. Their growth in October was several percentage points higher than in September, and … Continue reading “$20-Plus Wines Gain Share in October”

Dear Client:Brown-Forman is not only tapping further into at-home consumption trends with new “can” packaging for an el Jimador Tequila cocktail mix, but going head to head with beer – particularly Mexican imports and flavored beers like Bud Light Lime, it seems. Beginning in December with California then rolling out to the remainder of the … Continue reading “B-F Targets Beer with El Jimador Cocktail in a Can”

Dear Client:Constellation Brands has promoted Jay Wright to president of Constellation Wines North America effective immediately, the company said this morning. The CWNA organization spans Constellation Wines U.S. and Vincor Canada. Meanwhile, Jose Fernandez, chief of CWNA, has begun a leave of absence due to personal medical reasons.Recall that Jay was named executive vp and … Continue reading “Constellation Wines Names New President”

Dear Client:You’ll recall we reported in July that Diageo planned to start distributing a Jagermeister look alike, Harlem Kruiden, in the fall. That was only part of the story. It turns out that Nolet Spirits USA, who owns Ketel One and has a distribution j-v with Diageo, is the one launching Harlem. Diageo North America … Continue reading “Nolet USA Launches Harlem Kruiden”

Dear Client:Wine & Spirits Daily has learned that Indiana has reversed an earlier decision to block Southern Wine & Spirits from entering the state. Ed Dunsmore, the executive secretary at the Indiana Alcohol and Tobacco Commission, confirmed that the state has approved Southern’s request for a wine and spirits license although they must conduct a … Continue reading “Indiana Reverses Decision on Southern”

Dear Client:Could it be true that “the golden age of growth in the US spirits market is unlikely to return?” This is according to a new report from Barclay’s Alex Oldroyd, who believes “the industry is unlikely to return to its previous attractive growth rates and unlikely to regain its premium valuation.” According to Alex, … Continue reading “Is the “Golden Age” of Spirits Over?”

Dear Client:7-Eleven is entering the robust value wine segment with a new private label chardonnay and sauvignon blanc. Yosemite Road is produced by The Wine Group and will sell for about $4 across the US and $5 in Florida due to state taxes. Table wines in the $3-$5 range are a big hit in c-stores. … Continue reading “7-Eleven Enters Value Wine Biz”

Dear Client:With 2009 almost over, people are wondering if 2010 will prove better or worse for the alcohol beverage industry. Consulting firm Technomic doesn’t expect to see growth in alcohol sales at the on-premise until 2011, although they believe 2010 will be a little improved. Technomic vp and director of its on-premise practice, David Henkes, … Continue reading “Expect Some On-premise Relief in 2010”