Dear Client:There are signs of an economic recovery although it will likely be rocky with many hits and misses, said Nielsen vp Danny Brager at his company’s Economic Advisor Update for the Beverage Alcohol Industry webinar. “As people are cycling through the emotions related to the recession, their acceptance of it has perhaps caused a … Continue reading “Pricing Will Likely Remain Flat, says Nielsen”

Never has there been a better time to see into the future as far as the industry is concerned. Everyone is trying to predict how consumers will react, whether it’s during the holidays or over the next couple of years as we emerge from the recession. Most industry members expect a slow recovery as consumers … Continue reading “Readers Take out their Crystal Ball”

Dear Client:Compared to other categories, holiday sales should bode well for the industry as Nielsen believes products aligned with at-home entertainment and considered “essential gift giving” such as alcoholic beverages, cookware, kitchen items and bed and bath accessories will do well. Traditional gifts such as apparel, toy and technology will also be popular but at … Continue reading “Alcohol in a Good Spot for Holiday Gifts”

Dear Client:In the past six months Constellation has streamlined its company by combining its wine and spirits sales and marketing teams and beefed up its presence with distributors by consolidating in 19 states. It also managed to cut out a large bulk of costs by selling its value spirits brands to Buffalo Trace Distillery, and … Continue reading “A New Constellation Emerges”

Dear Client:You can argue that forming and maintaining relationships is the hardest part of running a business but also the most necessary. That seemed to be the crux of Peter Mondavi Junior’s message at the Wine Symposium this week as he spoke on the importance of relationships and innovation in maintaining a family winery. It’s … Continue reading “Peter Mondavi on Relationships and Innovation”

Dear Client:The tenuous relationship between wineries (particularly small and medium wineries) and wholesalers is nothing new. Wineries commonly complain of having a tough time gaining distribution, and then not receiving the attention they feel they deserve once they sign with a wholesaler. Wholesalers, meanwhile, point out they can’t represent everyone and struggle to meet demands … Continue reading “Challenges Facing Wineries and Wholesalers”

Dear Client:It’s only mid-September but the holidays are already on everyone’s minds, looming in the not-so-distant future. Will the industry be able to make up for lost sales in October, November and December (OND) or will they see declines? A large chunk of sales are made that time of year so it’s no wonder that … Continue reading “Expectations Low this Holiday Season”

Dear Client:Summer is pretty much over leaving some in the wine and spirits biz with the summertime blues – and we don’t mean the kind associated with back to school. Instead, summer was a mixed bag for the industry with a large group reporting moderate to dismal sales, while others reported flat sales (which is … Continue reading “Readers Respond: Summer a Mixed Bag”

The latest Nielsen data in the four weeks to August 22 shows that volumes grew 3.3% year over year, compared to 2% in the 12 weeks and 2.1% in the 52 weeks, reports UBS analyst Melissa Earlam. However, price/mix is deteriorating. Price/mix declined by -0.2% for the month year over year. It actually grew 0.4% … Continue reading “Spirits Price/Mix Deteriorates in August”

Dear Client:The big focus for Constellation continues to be growing its premium portfolio, paying down debt and improving organic growth – so don’t expect any major acquisitions anytime soon. CFO Bob Ryder told listeners at the Barclay’s Back to School consumer conference that acquisitions are not “top of our priority.” “We’re doing more dispositions than … Continue reading “Constellation’s Bob Ryder Talks Wine, Spirits and Beer”

Dear Client:Empire Merchants, which is part of The Charmer Sunbelt Group (CSG), was selected to distribute Long Island-based Banfi Vintners in metro New York (formerly distributed by Southern Wine & Spirits of New York). The partnership will take effect October 1. CSG already distributes Banfi in upstate New York, Arizona, Colorado, Florida, and South Carolina.”It … Continue reading “Banfi Vintners Appoints Empire Merchants in NYC”

Dear Client:Before the recession struck in October of 2008, expensive wines had enjoyed years of success and steady growth in the US. Since then, sales have dramatically dropped off and many consumers have done a complete 180. Kevin McCallum of The Press Democrat wrote an interesting article on the subject of consumers increasingly seeking value. … Continue reading “Unpredictable Future for Fine Wine”

Dear Client:The spirits industry showed some growth in the 13 weeks to July 25, with dollar sales up 1.6% and volume up 1.1%, according to Nielsen scan data in food, drug and major market liquor stores. Value spirits showed the most growth (3%) in dollar sales, followed closely by mid-priced brands (2.3%) and then premiums … Continue reading “Spirits Grow in July, Tough on RTDs and Tequila”

Dear Client:While some companies are cutting back in Advertising and Promotional (A&P) spend, Pernod Ricard is investing more in its strategic brands, the company said today in its fiscal year (ended June 30) earnings call. And although 2009 was a “difficult” year for everyone marred by consumers shifting to the off-premise and distributors and retailers … Continue reading “Pernod to Boost Investment Behind Strategic Brands”

Dear Client:Building the off-premise continues to be a big focus for Brown-Forman as consumers drink more at home. The company said today they reallocated money spent on advertising and promotion (A&P) in the first quarter ended July 31 to boost value added packs and increase their presence at retail stores, which helped underlying sales.“The shift … Continue reading “B-F Refocuses A&P Spend Off Premise”