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”

Dear Client:Brown-Forman has appointed John Kristin “Kris” Sirchio as its new chief marketing officer, effective November 16. The New Jersey native joins Brown-Forman after working the last five years at Syngenta AG, one of the world`s leading agribusinesses based in Basel, Switzerland, where his title was Global Head, Professional Products. Before that he spent 13 … Continue reading “Brown-Forman Names New Chief Marketer”

Dear Client:The Australian and British press are at it again. Speculation swirled over the weekend that LVMH could sell Moët Hennessy to Diageo, although the French company has denied interest in the past. Recall that Diageo already holds a 34% stake in the company.It appears that a new acquisition by LVMH reignited the rumor last … Continue reading “Speculation on Diageo and Foster’s Resurfaces”

Dear Client:The millennial arm of Jackson Family Wines, White Rocket Wine Company, is being absorbed into the parent company right away, spokeswoman Caroline Shaw told WSD. As a result, White Rocket is laying-off “about 6-8 people,” she said, “which isn’t too big given the size of our company.”This is an interesting development following reports that … Continue reading “Jackson Family Wines Integrates White Rocket”

Dear Client:Yesterday we considered whether premiumization is dead, particularly among the major spirits companies and mega-brands. Recall that in a research note from Deutsche Bank, analysts believe we are headed for a reversal in the spirits business. They argue that producers set to win in the coming years must practice the following: invest in advertising … Continue reading “Readers Respond: Premiumization Alive and Kicking”

Dear Client:Most of the U.S. spirits industry’s major brands that have driven profitability for decades and some in recent years are in a free fall, leaving many in the industry to wonder if and when they’ll recover. Industry execs have warned since last October that spirits is not recession proof but recession resistant. Indeed, we … Continue reading “Is Premiumization Dead?”

Dear Client:The times are certainly tough, particularly for higher end spirits brands (not to mention wine but that’s another story). Consumers are less willing to drink at bars and nightclubs, causing super-premium brands that were on fire just 2 years ago to take a step back. Case in point: the percentage of volumes on promotion … Continue reading “Diageo Increases Promotional Dollars in July”

Dear Client:The wine industry has seen major changes over the past year and a half as we all know. Yes, consumers are drinking more at home, eating and drinking less at “fine dining” restaurants and even trading down to value brands. And wine has been hit the hardest in the alcohol beverage industry. It continues … Continue reading “Internet Buzz Strong for Growing Wine Regions”

Dear Client:Grupo Campari finished integrating Wild Turkey in its first half, with overall results turning out better than expected. However, UBS analyst Melissa Earlam noted spirits sales “decline[d] slightly worse than expected.” Organic sales were down a whopping -15.1% in the U.S. through subsidiary Skyy Spirits, offset by a positive exchange rate of 12.4% and … Continue reading “Campari Faces Tough First Half”

Dear Client:The Virginia ABC sent a letter to all licensed shippers announcing it will not allow unlicensed, third party fulfillment houses to ship wine directly to residents in the state. Ship Compliant posted the letter on its blog today. In the opening paragraph, the ABC states: “In state and out of state Virginia shipper licensees … Continue reading “Virginia ABC Warns Against “Unauthorized” Wine Shipping”