[BND] Kane's Beverage News Daily

Good Morning and Happy Tuesday, June 23, 2022.

A Note from Joel

This week's issues are an experimental change in format. In the past, each item in the newsletter has been a separate post on our website and the newsletter simply compiled them using an automatic compiler in the last two or three weeks.

This week I'm trying something new. For the most part, the newsletter is being written as one continuous post. Some product announcements will be summaries with links to the original press release for anyone who wants to read all the details.

Please let me know if you prefer this format or the one we've had in the past. Thanks. – Joel

FIFA World Cup May Be Lifting Total Alc Sales-NIQ

Let's start off with the positive note in the latest NIQ report on bev/al sales by noting tbat dollar sales increased from $2.1 billion in the week ended June 6 to $2.2 billion. That's a 1.6% WoW (week oveer week) bump.

The weekly acceleration may be attributed to a rise in demand as seasonal drinking occasions progress alongside FIFA World Cup drinking occasions, NIQ says.

As has been the case for months, it was Prepared Cocktails that drove optimism among summer-led demand while traditional categories weighed on demand.

Prepared Cocktails delivered much-needed sales growth, with dollar sales up 1.7%, while case volume fell 3.9%. The improvement as compared to recent periods continues to be evidence of summer’s notable influence as demand peaks for the RTD category.

Spirits led declines, with losses steeper than the prior period, as dollar sales fell 6.8% and volume declined 5.7%. Wine followed, with dollar sales down -5.1% and volume decreasing -7.0%. Performance showed a regression relative to the prior last four weeks period (w/e June 6), down 4.8% and 6.6%). Beer faces the slowest losses, with dollar sales declining 4.0% and volume down 5.3%.

Despite the negative trends, the results show slight improvement building compared to prior periods. All in all, NIQ says, Total Alcohol results point to a mixed environment where both seasonal dynamics and ongoing macro influences are impacting categories. Prepared Cocktails continue to work as a positive buffer against pressure seen elsewhere, while Spirits hold the most daunting declines. Wine sees continuous headwinds, while Beer shows up as the most stable among traditional categories.

Regional trends generally align with overall U.S. softness. . . . Michigan led resilience efforts, with dollar sales up 0.4% and volume down 0.6%. Ohio also showed growth, up 0.1% in dollars and down 1.5% in volume. California maintained the largest declines, with sales falling 7.4% and volume down 8.6%.

Volume trends differed slightly across key states. New Jersey led volume growth of 4.5% and dollars down 0.7%. In contrast, Washington led losses, down 10.1% in volume and down 6.1% in dollars. Whether or not states involving FIFA World Cup host cities can spur improved regional trends will be seen in the coming weeks as the event runs to late July.

In the four weeks ending June 13th, Spirits remained in a downtrend, with dollar sales dropping -6.8% and volume falling -5.7%. This stagnancy was primarily driven by trend (87% of decline) as consumer interest in Spirits holds fragile despite summer timing. Traditional spirits fell behind, NIQ says, while Non-Alc pushed ahead.

Wine experienced losses of 5.1% in dollar sales and 7% in volume. The losses were driven by a combination of less product availability (29% of decline), less promotional sales (16%), and decreased consumer interest (55%). Weekly sales saw marginal improvement, growing to $363.7 million from $363.3 million (+0.1% WoW), indicative of the challenge to find meaningful growth as longer-term demand remains vulnerable.

Beer gained short-term momentum fueled by FIFA World Cup, as week-over-week sales gain traction. In the four weeks ending June 13th, Beer lagged year ago, with dollar sales down 4% and case volume declining 5.3%. These results were led by weakened consumer demand (82% of decline) and product availability challenges (13%), NIQ said.

NC Grocers to Sell Premixed Cocktails Under Bill OK'd by NC House

North Carolina grocery stores would be able to sell premixed cocktails such as Cutwater, High Noon, Surfside and canned vodka sodas under a bill approved by the North Carolina House of Representatives.

As long as the drinks contain no more than 9.9% alcohol by volume, they could be sold the same way beer and wine are sold, rather than being restricted to state-run ABC stores.

“If you took Food Lion, Harris Teeter and Lowes Foods, that’s just three grocery store chains. That alone represents about 1,500 locations versus our 450 [ABC stores],” Rep. Bryan Cohn told The Daily Tar Heel

Local ABC boards have raised concerns about how the law could impact revenue coming from ABC stores in the state.

A change to on-premise regulations permit price changes for happy hour, and another change would permit a person to have to two cocktails at one time. Under current law, a person at a wedding, for instance, can order two beers or two wines or a whiskey and a beer at the same time, but cannot order two whiskies or a whiskey and a vodka at the same time.

Another change would permit on-premise operators to order liquor from other ABC stores if their supply runs out.

Napa Valley Estate, Once Home to Charles Shaw, Nears Auction

After lingering on the market for over a year, Benessere Vineyards, a 42-acre property near St. Helena, Calif., that was purchased by Charles Shaw and his wife Lucy in 1977, is set for auction Wednesday (6/24). He planted vineyards, launched the brand, but lost the estate in bankruptcy. Fred Franzia bought the brand in 1995. It was priced at $2 in the Trader Joe's chain, and it was nicknamed "Two Buck Chuck."

The property is now owned by John Benish, founder of Cook-Illinois which supplies school bus services to 18 Chicago area school district, bought the estate and did extensive redevelopment.

The property was originally listed at $35 million, came off and relisted at $28 million. Demand for auctions of wine related properties led the listing agent to go the auction route.

America 250: Whiskey makers show the flag (and serve samples) at U.S. embassies

The embassies in key global markets, including New Delhi, Paris, London, Brussels, Berlin, Singapore and beyond, are celebrating America's 250th anniversary

"American whiskey can help tell the story of American farmers, grain producers, white oak, barrel makers, distillers, warehouse teams, exporters, restaurants, bars, tourism and hospitality. When we share American whiskey abroad, we are sharing a product that carries American identity, craftsmanship and economic value from grain to glass,” said Michael Bilello, president, American Whiskey Association.

"This is a moment to honor the heritage of American whiskey while advancing its future as one of the world’s great whiskey categories. We’re proud to lead in this space by offering consumers iconic American whiskey brands, including Jack Daniel’s Tennessee Whiskey, Woodford Reserve Bourbon and the world’s first bottled bourbon, Old Forester. As we toast this great nation, let’s responsibly enjoy a glass of fine American whiskey!” said Michael Masick, executive vice president and president, Americas, Brown-Forman.

“American whiskey continues to resonate with consumers around the world because of the craft, heritage and authenticity behind the many storied, iconic brands in the category,” said Greg Hughes, president and CEO at Suntory Global Spirits. “We are proud stewards of legacy brands like Jim Beam and Maker’s Mark, and believe in the power of these historic brands to promote connection and new opportunities in global markets. We’re excited for the chance to showcase all that American whiskey has to offer through these celebrations.”

“American whiskey has always been connected to the people and communities behind it, from the farmers who grow the grain to the distillers, barrel makers and hospitality professionals who bring it to consumers around the world,” said Julie Francis, president/CEO of MGP Ingredients. “At MGP Ingredients, we are honored to help carry that legacy forward through our distilling expertise and portfolio of American whiskey brands. As America marks its 250th anniversary, we are proud to support the American Whiskey Association’s efforts to elevate the category, expand its global reach and strengthen its future in international markets.”

“Few products tell the story of America quite like American whiskey. Built on generations of craftsmanship, agricultural heritage and entrepreneurial spirit, it has grown from a distinctly American tradition into one of the world’s most celebrated and respected spirits categories,” said Jake Wenz, CEO of Sazerac. “From Buffalo Trace Distillery to our newest A.J. Bond Distillery in Tennessee, we are proud to help steward that legacy. As America approaches its 250th anniversary, we are honored to join the American Whiskey Association in celebrating the people, places and traditions that have shaped America’s native spirit and continue to fuel its global appeal.”

“American white oak plays an essential role in the story of American whiskey,” said Brad Boswell, CEO of Independent Stave Co. “Each barrel reflects generations of forestry stewardship, skilled cooperage, rural manufacturing and partnership with distillers across the United States. We are proud to support these America 250 celebrations around the world and help share the people, craftsmanship and supply chain behind a truly iconic American product.”

“Kentucky bourbon is a hallmark of American identity, where Wild Turkey stands among the finest expressions,” said Simon Hunt, Campari Group CEO. “Since 2009, we have consistently dedicated resources to the ongoing development and expansion of the brand across our global distribution network. Our commitment has included substantial investments in the distillery and focused efforts to enhance Wild Turkey’s presence on a global scale.”

Willett Distillery Fills First Barrel

At New Springfield Plant

“This first barrel represents an important moment for our family, our team and the future of Willett Distillery,” said Willett Master Distiller, Drew Kulsveen. “Beginning production in Springfield allows us to grow while continuing to honor the people, places and traditions that have made Willett what it is today.” 

Located in Springfield, Ky., the new facility represents a significant investment in the Bourbon world. The project includes a new distillery operation, barrel storage warehouses, and capacity to grow visitor experiences. The 70,000-square-foot facility sits on 150 acres and is expected to create 35 full-time jobs as operations continue to grow.

 While this milestone marks the beginning of distilling operations in Springfield, construction on the full campus is not yet complete. Future expansion of the property in the following years will include a visitor experience, further expanding the site’s role in Kentucky’s bourbon tourism economy, on the Kentucky Bourbon Trail, once completed.

 The expansion of the company’s Kentucky operations is not a relocation. All operations in Bardstown will remain, including Willett’s Visitor Experiences, dining and tastings, bottling and warehousing; preserving the company’s historic home and long-standing presence in Nelson County.

Blue Note Expands Distribution

B.R. Distilling, parent company of Blue Note Bourbon, broadened its distribution into Indiana and Nebraska, selecting Vino Indiana and Quench Fine Wines, respectively. B.R. Distilling also selected Heritage Wine & Spirits as its new distributor in Kentucky.

 "Choosing the right distribution partners is one of the most important decisions a growing whiskey brand can make," said Dan Jurkovic, National Sales Director, B.R. Distilling Co. "As consumer demand for Blue Note Bourbon increases, we're excited to welcome these three new distribution partners to our network. Their market expertise, strong retail relationships, and shared commitment to building premium spirits brands will help us expand our reach while ensuring more consumers have access to our award-winning portfolio. We look forward to working together to accelerate growth in these key markets." More Details, Click Here

New Products

As part of its 150th anniversary celebration, Beringer Vineyards debuts its first-ever wine tasting experience dedicated exclusively to the Knights Valley American Viticulture Area (AVA) in Sonoma County: The Knights Valley Expressions Tour & Tasting. Alongside the launch, the winery introduces a new Knights Valley Expressions wine collection featuring single-vineyard and varietal bottlings designed to showcase the distinctive terroir of the region Beringer has helped define and champion since the 1960s. The Knights Valley Expressions Tour & Tasting, priced at $65 per person, is now open for reservations at www.beringer.com. Read more

Advertising & Promotion

Thousands of fans have already cast votes in The Fan Edit, Smirnoff Ice’s first-of-its-kind fan vote giving consumers the chance to help shape an all-new variety pack from the brand. Now, as the Official Malt Beverage of Love Island USA, Smirnoff Ice is extending the show’s signature voting mechanic beyond the screen, inviting fans to choose from eight Americana-inspired flavors. Fans have one month left (until July 22!) to cast their votes and help determine which four will make the final cut and hit shelves next year.

What I'm Reading

Afterword: What Should I Do with My Winery?

A Practical Checklist for Owners in Napa’s Crowded Luxury Lane (Ted Hall: Tell the Truth and Do the Right Thing)

Virginia: The Commonwealth of Wine

Assessing Virginia's Place in Wine Amid Market Headwinds (Dave McIntyre's WineLine)

Thanks for reading. See you tomorrow. Joel