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Shanken's Impact Newsletter

Shanken's Impact Newsletter January 1-15, 2018

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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

in this issue

3 min.
constellation invests in craft players

CONSTELLATION BRANDS CONTINUES TO BOLSTER ITS PORTFOLIO OF CRAFT SPIRITS, taking minority stakes in up and coming craft brandy producer Copper & Kings and up-scale rum producer Real McCoy for an undisclosed sum to kick off the new year. With American brandy experiencing a renaissance, Louisville, Kentucky-based Copper & Kings has been among the craft players stoking growth in the category, with distribution to 31 states. The portfolio includes a variety of brandies, apple brandies, absinthe and gin retailing from around $30-$60 a bottle. “We’re going to need additional gas in the tank to keep up with the growth we’re now encountering as a brand, and for the brandy category in general,” said Copper & Kings founder Joe Heron. “Brown spirits have a very long-term planning horizon; 10 years or more out.…

13 min.
spirits market’s brand leaders display solid growth in 2017

WHILE THE U.S. SPIRITS MARKET CONTINUES to see increasing contributions from craft brands and other boutique offerings, the re-sults for calendar year 2017 show that the industry’s major players remain the domi-nant growth engines. The top 25 spirits brands in the U.S. by volume increased by an aggregate 4.6% last year to 104 million cases, comprising nearly 46% of the total category, up from 43% two years ago. Al-though the top 25’s combined growth slowed slightly from 2016’s rapid pace of 6%, the leading brands’ ongoing progress has seen them continue to capture the vast majority of overall spirits growth over the past few years. While the top 25 added a total of 4.5 million cases to its tally last year, the rest of the market managed an increase of…

1 min.
steady progress

WHILE THE CRAFT SPIRITS CATEGORY HAS INJECTED new excitement into the business—and continues to attract signifi-cant investments from entrepreneurs and industry heavyweights—the spirits market’s biggest-volume brands remain the dominant drivers of growth. For evidence, look no further than our annual Top 25 Spirits Brands feature. Last year, the Top 25 grew by an aggregate 4.6%, adding 4.5 million cases to their total volume. By contrast, the rest of the market was up by just 0.4%, or about half a million cases. To be sure, the Top 25’s growth numbers received a big boost from Tito’s, which alone added 1.6 million cases last year. But growth was solid for a wide array of brands, including Crown Royal (+8%), Jim Beam (+9%), Hennessy (+11%), Jameson (+12%), Patrón (+8%) and others. Moreover, none of the…

1 min.
cuervo gets pendleton whisky in $205m deal

CASA CUERVO HAS BOLSTERED ITS whisky stable with a deal to acquire the Pendleton whisky brands from Ore-gon-based Hood River Distillers in a deal worth $205 million. The transaction is expected to close in the first quarter. Pendleton, sourced from Canada, sells about 250,000 cases across its portfolio. In addition to the core brand ($25), the franchise includes Pendleton Midnight and 1910 Rye, which combine for about 22,000 cases. The brand also has a 20-year-old offering, Director’s Reserve ($125). Hood River will continue to bottle the Pendleton portfolio. “The Pendleton whisky brand will fill an important strategic position in our portfolio, as we add a fast-growing, super-premium whisky,” said Mark Teasdale, president and CEO of Cuervo’s U.S. subsidiary Proximo Spirits.…

1 min.
luxury tequilas post sharp u.s. rise in ’17

EXPORTS OF 100%-AGAVE TEQUILA to the U.S. increased 14.5% in the 11 months through November, to 9.5 million nine-liter cases, according to the Consejo Regulador del Tequila (CRT).The U.S. is by far the world’s largest market for Tequila, accounting for over 80% of all exports last year, according to the CRT. Shipments of 100%-agave comprise more than half of all Tequila exports to the U.S., and upscale brands have driven category growth in recent years. Impact Data-bank estimates that the luxury Tequila segment ($40 and over a 750-ml.) was up 7.5% in 2017 to 3.5 million cases, with more than two-thirds of that volume coming from Patrón.…

1 min.
stoli’s bayou rum in expansion mode

LOUISIANA SPIRITS, MAKER OF THE BAYOU RUM BRAND DISTRIBUTED BY STOLI Group USA, has broken ground on a $6 million expansion of its distillery and tourism facilities. Notably, the company will build a barrel library where new creations and old recipes will be able to mature in greater quantities, allowing the distiller to expand its offerings in the future. The new project is slated for completion in the summer of 2018. The expanded facility will also feature a tasting room and event space that can hold up to 300 people, and an outdoor concert venue. “Last year, the Bayou Rum distillery hosted more than 35,000 guests,” said Joe Reese, the company’s managing director. “While the barrel library certainly en-riches the visitor experience, the benefit for our production team is more room…