2009 is expected to be a tougher year than normal for most in the alcohol beverage industry (unless you’re domestic beer), but many analysts say spirits could have it the hardest. Value spirits brands that haven’t performed as strongly in recent years are more likely to see a surge during the economic crisis, while higher … Continue reading “Spirits Face a Challenging 2009”

The economy is hitting winegrape growers hard in the U.S. and globally as Australian vintners grapple with more over-supply and less demand, and domestic vintners struggle with changing consumer trends and dry weather.Despite having great weather and posed for one of the best harvests in years, Australian vintners have little to celebrate thanks to the … Continue reading “A Peak at Global Wine Industry”

In California the wine industry is facing a proposed tax hike six times higher than its current level to help combat California’s giant budget deficit. LA Times reporter Jerry Hirsch featured an article today on the issue, pointing out that “Two Buck Chuck,” or Charles Shaw wine, would no longer sell for $1.99. Instead it … Continue reading “Ca Vintners Fight Tax Threat”

In a victory for the spirits industry, the NBA has reversed a ban on spirits advertising at games to help drive revenue during the economic downturn, according to an article in the Sports Business Journal. The league is also forming policies that could allow spirits companies to advertise on team websites, point-of-sale retail locations or … Continue reading “NBA Reverses Spirits Ban”

More states are proposing tax increases on beverage alcohol this year to fight the effects of the recession and state budget deficits. Kentucky and Arkansas legislators introduced tax increase last week, joining states like New York and California. Clearly the industry is against such initiatives, but bad economic times may make it easier for them … Continue reading “Poor Economy Prompts Tax Increases”

You may have heard of Wine 2.0, or Winetwo.com, a social networking site for the wine industry that also features a number of events throughout the year. The website was developed in 2006 by Cornelius Geary and Jeff Playter and now features thousands of consumer, winery, retailer and many other types of profiles. Think of … Continue reading “Fly on the Wall Interview: Wine 2.0”

In the current economy, it seems like every news story is preoccupied with doom and gloom, but we prefer to look on the positive side. We’ll give you the statistics first, and then apply it to our own industry. As is widely reported, consumers weren’t spending money over the holidays, which prompted retail sales to … Continue reading “Food and Drink Sales Drop in December”

A policy of serving only U.S. wines goes back to the administration of Lyndon Johnson, and President-elect Barack Obama is keeping the tradition alive. Three different California wines will be served at Obama’s inauguration luncheon next week. The first course, which consists of seafood stew, will be paired with Duckhorn Vineyards 2007 Sauvignon Blanc. A … Continue reading “What Obama’s Drinking”

Pernod Ricard released a trading statement today on its first half sales results, saying overall sales performance was “satisfactory and in line with our expectations.” Organic net sales growth was around 5%. On the whole, said the company, holiday sales “went well” with most emerging markets enjoying continued strong growth (particularly China, India and Eastern … Continue reading “Destocking Hurts Pernod in the Holidays”

Unfortunately, some employees at Constellation face losing their jobs due to this morning’s news. Constellation said many employees associated with the brands being sold will transfer to Sazerac, while others will be laid off. As Constellation put it: “Some [employees] will be impacted by this change and the company is taking appropriate actions to support … Continue reading “More on Constellation and Sazerac”

It was announced this morning that Constellation will sell its value spirits business for $334 million to New Orleans-based Sazerac Company. This is clearly a huge step for Sazerac, who is gaining 40 brands including Barton, Skol, Mr. Boston, Fleischmann’s, the 99 schnapps line, the diAmore line, Chi-Chi’s pre-mixed cocktail line, Montezuma Tequila, in addition … Continue reading “Alert: Constellation Sells Value Spirits Brands”

Alcohol sales over the holidays were not so good, according to IRI’s four week data ending December 28. A calendar shift is one reason for the decline. Not only was Thanksgiving late this year, but the period ended two days earlier than the same period last year. The next set of data should give a … Continue reading “Alcohol Sales Soft in December”

A lot of readers helped us come up with predictions for 2009, which we believe will be as full of changes (some unexpected) as last year. In 2010 we’ll take a look back and see how we faired. Here is what we came up with, for what it’s worth:Following in the spirit of craft breweries … Continue reading “2009 Predictions and Changes at Glazer’s”

With the economy and recent price increases taken into account, Constellation performed well in the third quarter particularly in North America where the branded wine business grew 2%. Chief Rob Sands was careful to note throughout the conference call that although the company is meeting earning expectations, the economic environment remains extremely challenging and unpredictable. … Continue reading “Constellation: Pricing Will Pay Off”

There is no denying that 2008 was a pivotal year for the wine and spirits industry and full of instances that no one (at least us) could have predicted. Here’s a quick look at some of the major changes that went down in no particular order.1. Pernod Ricard acquires Absolut, sells Cruzan Rum to Fortune … Continue reading “A Look Back at 2008”