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:For awhile there companies were almost flying blind, unable to properly forecast as consumers went into a panic state resulting from the recession. Luckily that’s starting to change. Kaumil Gajrawala of UBS took the stage at the Wine Industry Symposium, giving attendees the perspective of a financial analyst. The economy is slowly getting better … Continue reading “Consumers Move from Frills to Basics”

Dear Client:Castle Brands has acquired the assets of Betts & Scholl LLC, a wine company formed in 2003 by Master Sommelier Richard Betts and Dennis Scholl. As a part of the deal, Castle Brands issued 7.14 million shares of common stock to the sellers and approximately $1.1 million of cash and notes. Dennis Scholl will … Continue reading “Castle Brands Enters Wine Biz”

Dear Client:WSD can confirm that discussions concerning a strategic collaboration between Southern Wine & Spirits (SWS) and Glazer’s Distributors have been called off. Recall that the official name of the j-v was to be Southern/Glazer’s Distributors of America. The only reason given was that it was in both company’s long terms best interests to end … Continue reading “Southern/Glazer’s J-V Off”

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”