Dear Client:Planned stock reductions for Diageo’s U.S. wine and spirits wholesalers caused net sales to decline -7% in the third quarter. Inventories at March 31 were approximately one million cases lower than stocks on December 31. Diageo also experienced a significant decline in the Russian market and the Global Travel Retail business.U.S. net volumes were … Continue reading “Diageo Hit by Stock Reductions and Declining Demand”

Dear Client:In Silicon Valley Bank’s annual State of the Wine Industry report, founder Rob McMillan makes predictions for 2009-2010, along with explanations for the present state of the economy and advice. GOOD NEWS. On a year over year basis, Rob predicts slightly improved sales in the second quarter, flat sales in Q3 and positive Q4 … Continue reading ““Capitalistic Darwinism” Envelops Wine Biz”

Dear Client:WSD has learned that Pernod Ricard USA has appointed Lauren Simkin to general manager of Pernod Ricard USA Wines & Champagnes. She will lead the development of the company’s portfolio in the U.S., reporting to chief Paul Duffy. Before joining Pernod Ricard in 2007, Lauren held a series of progressively responsible sales and marketing … Continue reading “Alert: Pernod Restructures Wine and Champagne Unit”

Dear Client:Spirits volumes grew 3.6% in March in control states, whereas volumes grew only 0.2% in February, reports UBS analyst Melissa Earlam based on NABCA data. March benefited from easy comps of -5.2% year over year. Diageo lost some slight share in the month, although volumes grew 3.4%. It grew share in rum with volumes … Continue reading “Spirits grow 4% in Control States”

Dear Client:To say it has been a busy year for Rocky Wirtz is an understatement. As you know, Rocky is the president of Wirtz Beverage Group, which operates in five states, and has overseen a number of changes in the past seven months. After Glazer’s and Southern Wine & Spirits announced intentions to create a … Continue reading “A Talk with Rocky Wirtz”

Dear Client:Fortune said the hardest quarter of the year is now finished as it looks forward to the rest of fiscal 2009. Chief Bruce Carbonari said “as the year progresses, comparisons will ease, a number of adverse factors will annualize, and we’ll realize the benefits of our market-share and cost initiatives, so we believe we … Continue reading “Beam Global Streamlines Distribution”

Dear Client:Dollar sales of spirits jumped 4.2% in the four weeks to March 7 and case sales grew 3.3%, according to food, drug and liquor store scan data from Nielsen. This is a big improvement from February, where dollar sales grew only 1.8% and volumes climbed 0.9%.VALUE SPIRITS LEAD IN GROWTH. Value priced spirits took … Continue reading “Spirits See Improvement in February”

Dear Client:Last week we asked readers if Campari could grow Wild Turkey in the Northeast and California, pushing the brand beyond its traditional following in the South. Respondents were unanimous in singing the praises of Wild Turkey, and here are a few email snippets: “I always thought Jimmy Russell’s firepower was never shown up here … Continue reading “High Hopes for Wild Turkey”

Dear Client:Yesterday Diageo was hit by rumors that a deal with Brown-Forman or a brewer were in the works causing stocks to slide 2% on the London Stock Exchange, reports the London Financial Times. Rumors swirled among analysts that Diageo might form a “friendly” deal with B-F or consider buying a brew. Controlling shareholders are … Continue reading “Diageo Hit with Rumors”

Dear Client:“Simplify” was the theme at Constellation’s fiscal year earnings conference call today where it listed a number of initiatives continuing into fiscal 2010 and beyond. The company plans on the following: moving to one distributor house per market; laying off 5% of its workforce; and consolidating its wine and spirits businesses into one operation.Constellation’s … Continue reading “WSD: Constellation Consolidating Distributor Network”

Dear Client:The Wall Street Journal is reporting that Pernod Ricard is close to striking a deal to sell Wild Turkey bourbon to Gruppo Campari for $575 million, according to sources. Rumors have swirled for months that Wild Turkey was on the market and the official announcement could be made as early as tomorrow, says WSJ. … Continue reading “Alert: Pernod Close to Selling Wild Turkey”

Dear Client:Pernod Ricard announced five new c-level appoints today, effective July 1 2009. Philippe Dréano, currently chairman and chief of the company’s Asian unit will now run Pernod Ricard Americas. Recall that Alain Barbet most recently headed the Americas (effective July 2008) but left the company at the end of last year. No official reason … Continue reading “Pernod Names Replacement for Americas Unit”

Dear Client:A new study from Datamonitor shows that an increasingly large “senior” population is “worth targeting” because they are willing to spend their money on products they perceive as value-added. According to the study, the greatest proportional growth in senior (50+) population is expected to occur in the United States. The over-50s accounted for over … Continue reading “Growing Senior Demographic “Worth Targeting””

Dear Client:Pernod Ricard has appointed Gilles Bogaert to replace Emmanuel Babeau as the new Deputy Managing Director in charge of Finance, effective July 1. Pernod said Emmanuel “decided to leave the Group” and no other explanation was given. Gilles currently serves as the chairman and ceo of Pernod Ricard Brazil and has also held a … Continue reading “Pernod Appoints New Finance Director”

Dear Client:Beam Global’s Sauza Tequila is taking advantage of the surge in growth for boxed wine with its new Sauza Margarita-in-a-Box. According to the company, it’s the first boxed margarita cocktail made with real tequila to hit the market. The recipe includes lime juice, Sauza, triple sec and margarita mix. Beam says the compact Margarita-in-a-Box … Continue reading “Beam Global Taps Into Home Consumption Trends”