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Shanken's Impact Newsletter

Shanken's Impact Newsletter

November 1, 2020

Shanken’s Impact Newsletter, the leading source for exclusive data on the alcoholic beverage industry in the United States and internationally. Every issue features up-to-the-minute data and analysis on trends in the worldwide drinks market.

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United States
M Shanken Communications
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in this issue

10 min.
liqueurs look to capitalize on growing home cocktail trend

LIQUEURS AND CORDIALS HAVE BEEN eking out modest U.S. growth recently, amid uneven conditions across the category. Overall, liqueurs advanced 0.6% in the U.S. last year to rise above the 18-million-case mark, according to Impact Databank, reversing negative growth from the prior few years. That tally excludes flavored whiskies but includes flavored brandy, bitters, anise and pastis, and spirits-based aperitifs. Unlike numerous other beverage alcohol categories in which the top brands have taken increasing market share, growth was stronger outside the top 10 liqueurs and cordials than within. The top 10 brands combined accounted for a total 8.8 million cases in 2019 and scant 0.2% growth, below the category’s five-year average annual compound growth of 0.5%. Meanwhile, the rest of the field rose to 9.2 million cases combined on 1% growth,…

12 min.
china sees swift return to growth

IN A YEAR OF GLOBAL TURBULENCE AND ECONOMIC SHOCKS, CHINA HAS EMERGED from the pandemic in a unique position. The country was the site of the first outbreak of Covid-19, but its aggressive lockdown and the government’s investment in state-sponsored industries like steel have allowed its economy to reset and return to growth after a first quarter contraction of 6.8%. As Western European nations and the U.S. struggle to contain the virus and stabilize their economies, China’s GDP increased 4.9% in the third quarter. During that time, the restaurant industry narrowed its decline to about 3%, while consumer-goods spending rose 4%, according to the country’s National Bureau of Statistics. Both the service and retail industries still face challenges, but China’s well-established e-commerce channel has helped stabilize its economy, including the…

1 min.
an era of change

WITH CONDITIONS SHIFTING BY THE DAY, 2020 HAS presented no shortage of challenges to the drinks industry. In many ways the pandemic has hastened changes that were already in progress—such as the accelerating role of e-commerce—while in others it has forced marketers to adapt to starkly different circumstances on the fly, as in the abrupt shift to the off-premise A wave of change is also underway at the executive level of top wine and spirits marketers. Pernod Ricard named Ann Mukherjee as its North America chairman and CEO to start off the year, a move that was followed by Debra Crew’s appointment as president of Diageo’s U.S. business this summer. Now, two more key players have made changes at the top. William Grant & Sons announced in recent days that CEO Simon…

3 min.
major changes at wine spectator, whisky advocate

MARVIN R. SHANKEN, CHAIRMAN OF M. SHANKEN COMMUNICATIONS, Inc., has announced major new appointments at the top of the masthead of both Wine Spectator and Whisky Advocate magazines. After a 33-year career at M. Shanken, Thomas Matthews is stepping down as executive editor of Wine Spectator. Jeffery Lindenmuth, currently executive editor of sibling publication Whisky Advocate, will succeed Matthews as executive editor of the world’s most widely read wine publication at the end of the year. “As executive editor of Whisky Advocate, Jeffery Lindenmuth has done an outstanding job propelling that title into the most highly respected whisky magazine in the world. Under his leadership the magazine has enjoyed significant growth,” said Shanken. “Having worked closely with him, I believe he can take Wine Spectator to even greater heights. He has a…

1 min.
david dearie named ceo at smwe

STE. MICHELLE WINE ESTATES president and CEO Jim Mortensen retired on November 1. He has been replaced at the head of the Washington state winemaker by industry veteran David Dearie. Dearie was most recently founder and managing director of East Wind Consulting Pty Ltd., providing strategic, brand and financial advice to clients predominately in the wine and spirits sector. His career also includes leadership positions at Treasury Wine Estates where he served as CEO, and as managing director ANZ for Fosters Wine Group. Prior to that, he spent more than a decade in senior executive roles at Brown-Forman, including managing director of Brown-Forman Beverages for Western Europe and Africa, and as president and COO of Brown-Forman’s wine unit. Ste. Michelle saw first half revenues decline 12% to $277 million as the company…

1 min.
tequila surge drives cuervo’s gains

ROBUST TRENDS IN THE TEQUILA AND RTD COCKTAIL CATEGORIES HELPED catapult Cuervo’s third quarter net sales to a half-billion dollars on a 48% increase. Volume leapt 26% to 6.6 million 9-liter cases, and operating income surged 169% to $147 million. North America, accounting for about 72% of net sales, was the key growth driver for the company, with the region posting 79% sales growth to $360 million on volume gains of 51% to 4.4 million cases. Cuervo credited the U.S. surge to “the strength of our largest brands within the region leading an acceleration in depletions and shipments, and the Mexican peso depreciation against the U.S. dollar on a year-over-year comparison.” Flagship brand Jose Cuervo Tequila saw global net sales climb 62% to $198 million in the third quarter on…