There’s no denying Costco has made huge inroads into the alcohol beverage industry, particularly in wine, in the past decade. In fact, Costco’s beverage alcohol sales are expected to reach $2.3 billion this fiscal year, with 50% coming from wine. The average Costco store carries 180 alcohol SKUs, with some as few as 80 and … Continue reading “A Talk with Costco”

B-F says it has sold its Bolla and Fontana Candida Italian wine brands to Italian partner Gruppo Italiano Vini (GIV). B-F Chief Paul Varga said the decision reflects the company’s evolving portfolio strategy and its continued focus on its most profitable brands. “We’re proud of the work that our employees and partners placed behind the … Continue reading “Brown-Forman Sells Italian Wines”

In a big victory for wineries this week, a Massachusetts judge has overturned legislation that put a production cap on wineries that were allowed to ship directly to consumers. Yesterday’s ruling will allow wineries of all sizes to ship directly to residents. Massachusetts’ current direct shipping policy goes as follows:Wineries producing less than 30,000 gallons … Continue reading “Winery Victory in Massachusetts”

Last week at Diageo’s Investor Conference, Ray Chadwick, President, Diageo Chateau & Estate Wines, gave some insight into Diageo’s wine business and the overall industry’s performance.Ray said Diageo is “well positioned” in the wine industry and exceeds 300 million cases. By 2010, the U.S. is projected to be the largest wine market, overtaking France and … Continue reading “Diageo’s Ray Chadwick Talks Wine”

Constellation is mainly concerned with building its premium brands and paying down debt, ceo Rob Sands told listeners at the Morgan Stanley consumer conference today. When asked about the negative effects of recent price increases on Constellation’s wine biz, Rob said everything was business as usual.“We’ve been a leader in taking pricing in the U.S. … Continue reading “Constellation Battles Debt, Builds Premium Brands”

‘Tis the time of year for lots of parties, food and celebrations which usually gives a huge boost to Champagne sales. In fact, the bubby vino generates about 25% of overall volume in November and December annually. However, this year is expected to be different in the face of the current economic downturn and weakened … Continue reading “Holiday Champagne Sales Expected to Fizzle”

How important are wine labels really? According to Nielsen, “the role of ‘the Label’, is critical for wine.” Do consumers prefer light hearted labels (critter brands, clever names) or serious labels? There is a lot of room for both, but it’s important to understand what kind of labels appeal to which kind of consumer. The … Continue reading “Wine Labels (Almost) Everything to Shoppers”

As we reported yesterday, SPI has put a series of rumors to rest by announcing its alliance with William Grant & Sons to distribute Stolichnaya in the United States. SPI minority shareholder Andrey Skurikhin said the company is excited to work with William Grant & Sons, claiming it “has a wonderful portfolio and a proven … Continue reading “Stoli Appoints New Distribution Partner”

SPI Group says it has entered into an agreement with William Grant & Sons for the distribution of Stolichnaya in the United States. “William Grant & Sons has a wonderful portfolio and a proven track record with super premium spirits. The company has one of the fastest-growing spirits portfolios in the United States. While there … Continue reading “Alert: William Grant to Distribute Stoli”

Red wine is expected to beat white wine in popularity yet again for the third consecutive year, according to The U.S. Wine Market: Impact Databank Review and Forecast, 2008 edition. Red wine is projected to increase 3% in 2008 to 121 million case, but white wine isn’t far behind. White wine consumption is expected to … Continue reading “Red Wine Takes the Helm in 2008”

Loads of Foster’s news has surfaced over the past several months and today is no exception. The company announced that Jamie Odell, the head of Foster’s Australian and Asia-Pacific business, has reportedly quit after being passed over for the role of ceo. In an official statement, the company says Jamie will leave on Friday (Nov. … Continue reading “Top Executive Leaving Foster’s”

Times are tough but Diageo says it’s prepared to battle the waning economy and changing consumer trends with a number of strategies and programs in place. “It’s a good time to be in the alcohol business,” said Ivan Menezes, president of Diageo North America at the company’s Investor Conference. “Alcohol is resilient and spirits, beer … Continue reading “Diageo Gets in the Economic Spirit”

Weeks ago Deutsche Bank announced it had purchased a 5% stake in Foster’s Group on the behalf of a mysterious company, which was revealed this week to be Molson Coors. The exchange was a “cash-settled total return swap.” Deutsche reportedly began stockpiling Foster’s shares as long ago as May, only declaring its ownership of a … Continue reading “Foster’s Mystery Investor Revealed”

There’s no denying Costco has made huge inroads into the alcohol beverage industry, particularly in wine, in the past decade. In fact, Costco’s beverage alcohol sales are expected to reach $2.3 billion this fiscal year, with 50% coming from wine. The average Costco store carries 180 alcohol SKUs, with some as few as 80 and … Continue reading “Alcohol a Growing Part of Costco”

The spirits industry had a tough month in the four weeks to October 5, with dollar sales sliding -0.1% and volume down -0.3%, according to IRI retail data. The numbers are surprising since last month the category saw growth (albeit slowing growth). Category leader vodka still showed gains, with dollar value increasing 2.2% and volume … Continue reading “Spirits Stuck in the Middle”