Dear Client: Michigan Attorney General Dana Nessel has filed a new round of lawsuits cracking down on illegal direct-to-consumer shipments.   Last week, AG Nessel filed four separate, but similar, lawsuits against out-of-state suppliers California-based Villa Amorosa, West Virginia-based Lambert’s Vintage Wines, Oregon-based Schmidt Family Vineyards and New York-based retailer Taste Wine for shipping alcohol directly … Continue reading “Michigan AG Continues Fight Against Illegal DTC Shipments with New Lawsuits”

Dear Client: Patco Brands’ Rancho La Gloria, a wine-based large format RTD, grew 200% in 2020, reaching 1.3 million cases, and is projected to double its success in 2021.  Indeed, the brand was growing so quickly this past year, they had some trouble keeping up with demand. “When you combine triple-digit growth with a global … Continue reading “Rancho La Gloria Gunning to be No.1 RTD Brand in the US”

Dear Client:There have been several large wine deals so far this year, from the Vintage Wine Estates deal to the Duckhorn IPO to Treasury Wine Estates’ deal with The Wine Group. Meanwhile, there have been noticeably less deals done with smaller wineries and part of that has to do with valuations. EXTREME VALUATIONS NOT THE NEW … Continue reading “Rabobank: Bridging the Valuation Expectation Gap”

Dear Client: Yes, we’re still breaking down tough comps as we lap the first months the pandemic really took hold in the US. Spirits dollar sales were down 6.8% for the four weeks ended April 24 in Nielsen-measured channels, below the 3.1% growth reported for the last 12 weeks.  In a recent note, Cowen laid … Continue reading “How Big Spirits Companies Weathered the Latest Comps”

Dear Client: Campari reported a strong start to its fiscal year, with reported net sales up nearly 18% on an organic basis for the first quarter ended March 31, partially thanks to an easy comparison base and an early Easter effect, per release.  In the Americas–which represents almost half of total sales–organic sales were up … Continue reading “Campari Kicks Off FY with Double-Digit Growth, Launches New High-End Division”

Dear Client:Today, Treasury Wine Estates announced it has entered a long-term distribution agreement with Republic National Distributing Co., effective as early as July 1, per a release. RNDC already handles TWE’s portfolio in Michigan, Georgia and New Mexico. This new agreement extends coverage to California, Texas, Louisiana, Oklahoma, Kentucky, Mississippi, Utah, Wyoming, and Nebraska. TWE is switching … Continue reading “TWE Inks Long-Term Distribution Deal with RNDC”

Dear Client: Continuing our short series grokking the low/no alcohol segment, suppliers share insights on shelf space, education, the category’s overall potential and going beyond low/no alc in the better-for-you space.  THE IMPORTANCE OF DEDICATED SHELF SPACE. Low/no alc products could easily get lost in the sea of SKUs on the shelves. As such, dedicated … Continue reading “Shelf Space and Education Key to Building Low/No Alc Category”

Dear Client: Across the US, every state has restaurants open for indoor service and 98% of states have bars open indoors to some capacity. And consumers are eagerly returning, with 62% of consumers reporting they’ve visited bars/restaurants since their local market reopened and 59% of consumers also saying that they plan to visit the on-premise … Continue reading “The Casual Dining Channel’s “Untapped Beverage Opportunity””

Dear Client:The low/no alcohol segment has been gaining traction in recent years, though it’s still a relatively small piece of the total bev alc pie. Last week, we took a look at how big the category is and how fast it’s growing [see WSD 04-20-2021]. Today we’ll dig further into the category from the supplier … Continue reading “Low/No Alc Products Drive Incremental Sales, Bring in New Consumers”

Dear Client: There’s been encouraging movement on the tariffs front recently.  In a Senate hearing today, US Trade Representative Katherine Tai said she is “hopeful and motivated” about resolving the trade dispute with the European Union over aircraft subsidies by early July, reports Bloomberg.  There’s been a lot of back-and-forth in the nearly two decades … Continue reading “New US Trade Rep “Very Committed” to Ending Aircraft Subsidies Dispute”

Dear Client: Grupo Cuervo continues to post impressive growth rates. The company’s volumes were up 43.4% and net sales were up 37.7% globally for the first quarter ended March 31, driven by strong results in the US and Canada. Indeed, in the US and Canada volumes were up 55.7% and net sales were up 45.2% … Continue reading “Cuervo on a Tear in Q1, Plus New Long-Term Deal with Proper No. Twelve”

Dear Client: Most states opened up cocktails to-go for the struggling on-premise channel to help provide another avenue for sales, and a few states have decided to make their cocktails to-go provisions permanent. Where permissible, most restaurants have taken advantage of this provision.  New York-based family-owned and operated Bohlsen Restaurant Group really embraced cocktails to-go … Continue reading “How this NY Restaurant Group is Leaning into E-commerce & Cocktails To-Go”

Dear Client: Today Anheuser-Busch announced a partnership with Texas-based ready-to-drink cocktail company Canteen Spirits. The partnership includes a Master Distributor Agreement and a minority investment through A-B’s ZX Ventures.  Canteen Spirits launched in 2019 by Brandon Cason and Daniel Barnes. The company has experienced rapid growth, selling 517,000 cases of RTDs in 2020. The portfolio … Continue reading “Anheuser-Busch Takes on Another Spirits RTD, Canteen Spirits”

Dear Client: After being heavily weighed down by declines in travel retail and on-premise, Pernod Ricard benefited from a performance boost in Q3. Global sales were up 19% for the third quarter ended March 31, bringing the group’s nine-month sales growth up to nearly 2%.  “Our Q3 was excellent, marking a return to organic sales … Continue reading “Pernod Sees Return to Sales Growth in Q3, Expects Acceleration in Q4”

Dear Client:Constellation Brands-backed Canopy Growth Corp. has signed a distribution agreement with Southern Glazer’s Wine & Spirits to handle Canopy’s CBD-infused beverage portfolio in the US, WSD has learned. “We’ve partnered with Southern Glazer’s as they share our future-forward view of the category and by working with them we have an immediate advantage of our route … Continue reading “Southern Glazer’s to Distribute Canopy Growth CBD Beverages in the US”