News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter July 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.

United States
M Shanken Communications
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in this issue

9 min.
buffeted by covid, champagne aims for a second-half surge

LAST YEAR, CHAMPAGNE REACHED A MILE-stone in the U.S. market, with shipments topping 2 million cases for the first time on an 8.3% increase. Progress was even better on the value side, with exports to the U.S. jumping 15% to €665 million ($745m). That performance capped a run in which U.S. shipment value has more than doubled since 2010. Four of the top five brands in the U.S. market showed increased volumes last year, according to Impact Databank, although total U.S. depletions advanced by a modest 0.5% to 1.5 million cases after a nearly 5% bump in 2018. What a difference a year makes. The first half of 2020 has been marked by unprece-dented turbulence in the market, fomented initially by a threat of up to 100% tariffs on all European…

10 min.
vodka players adapt to new reality

DESPITE SLOWING GROWTH IN RECENT YEARS, VODKA REMAINS BY FAR THE LARGEST spirits category in the U.S. Many legacy brands have faced challenging conditions, both from new competition within the vodka space and the rising popularity of competing categories. Nonetheless, total volume in the U.S. advanced again last year. U.S. volumes reached over 78 million 9-liter cases last year, according to Impact Data-bank. While the category grew 1% overall, that growth was concentrated in only a handful brands, primarily in the top 25. Within the 25 leading brands in the U.S., growth registered 1.5% on a total volume of 62.4 million cases. The rest of the field saw a decline of 0.9% to 15.9 million cases. However, only eight brands among the top 25 were up, with the other 17 in…

1 min.
facing down challengesto

WITH THE GLOBAL DRINKS INDUSTRY CONFRONTING the ongoing challenges of Covid-19, the news that the U.S. has renewed its threat to expand tariffs to a host of European Union wine and spirits products is ill-timed at best. The industry successfully beat back a similar threat earlier this year by mobilizing to flood the U.S. Trade Representative’s (USTR) web-site with 28,000 comments on the issue, highlighting the potential damage such tariffs could do within the drinks business, with smaller importers and distributors especially vulnerable. Now it falls to us to rise to the moment again. The USTR will accept comments on its new proposal through July 26, and industry players must make their presence felt While the news on the trade front remains troubling to say the least, it’s heartening to hear that a…

2 min.
bacardi targets rtd cocktail trend

READY-TO-DRINK COCKTAILS HAVE been among the fastest-growing spirits segments lately, and top players are taking notice. Bacardi recently expanded in the space with a new line of Bacardi Real Rum Cocktails. The RTDs are made with Bacardi Superior Rum and come in three flavors: Lime & Soda, Limón & Lemonade, and Rum Punch. Major chains have picked up the line, including Publix and Total Wine, where a 4-pack retails for $13. Ned Duggan, global senior vice presi-dent of Bacardi rum, points to the spirit base as a strong selling point. “Just like with most categories within spirits, peo-ple are going to be looking for more and more premium products as the segment evolves,” Duggan told Impact. “The segment has been known as primarily malt-based, which is more affordable, but more spirit-based…

1 min.
u.s. threatens e.u. with more tariffs

WITH THE DRINKS INDUSTRY STILL CONFRONTING THE CHALLENGES PRE-sented by the Covid-19 pandemic, another significant obstacle to growth has reemerged in the form of threatened U.S. tariffs on a host of European wine and spirits products. The preliminary tariff list released by the U.S. Trade Representa-tive (USTR) threatens increased or new tariffs on most wine and spirits categories. The new product list includes Scotch whisky, Irish whiskey, other whiskies and grape brandy (from all E.U. members), vodka and gin from the U.K., Germany, France, and Spain, and liqueurs and cordials from all other E.U. members not cur-rently facing tariffs. This list builds on the existing 25% tariffs on single malt Scotch whiskies and French, Spanish, German, and U.K. wines that went into effect last October. The USTR is accepting comments…

1 min.
gallo adds high-end tequila don fulano

E.&J. GALLO HAS EXPANDED ITS spirits portfolio with luxury Tequila brand Don Fulano. Gallo is now the exclusive U.S. importer for the brand, owned by the Fonseca family. The Don Fulano range includes Blanco ($50), Blanco Fuerte 100 Proof ($60), Re-posado ($60), Añejo ($80), and Don Fulano Imperial Extra Añejo ($190). The brand’s Tequilas are made using a dual distillation process, comprised of a double column still and a traditional copper pot still. Gallo’s other luxury spirits brands include The Dalmore, Diplomático, and Jura among others.…