News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter March 1-15, 2018

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

22 min.
impact’s “hot brand” list salutes the industry’s top growth drivers

AS THE RISE OF A NEW GENERATION OF CONSUMERS CONTINUES TO RESHAPE THE U.S. drinks market, defining trends like the brown spirits renaissance, vibrant growth in upscale Tequila, and the expansion of the rosé category are all in evidence on Impact’s annual “Hot Brands” list, recognizing the fastest-growing franchises in the industry. A total of 74 brands from across the wine and spirits business met Impact’s Hot Brand growth criteria based on their 2017 performances, among them volume drivers like Constellation’s Black Box and E.&J. Gallo’s New Amsterdam vodka, but also a number of upscale labels including Hennessy and Rémy Martin Cognacs, Diageo’s Don Julio Tequila, and Robert Mondavi Winery. In spirits, Tequila has risen to the fore as the category with the most Hot Brands, boasting 11 entrants, even as whiskies…

12 min.
diageo’s vision for the future

In its fiscal first half ended in December, Diageo North America posted a sales increase of 2% to $3.1 billion on an organic basis, with operating profit rising 3% to $1.4 billion. The company—whose spirits portfolio’s U.S. retail sales value is roughly twice the size of its nearest competitor, Bacardi—has been a major player in the whisk(e)y boom across multiple segments, led by Crown Royal, Johnnie Walker, Bulleit, and Buchanan’s. It has also returned Captain Morgan rum to growth over the past two years, and recently made a bold move in Tequila with the acquisition of the Casamigos brand in a deal worth up to $1 billion. While prospects are bright across most of the portfolio, vodka remains challenging. But Diageo has redoubled its efforts, boosting its marketing spend behind…

1 min.
raising the bar

MUCH HAS BEEN MADE ABOUT THE ADVENTUROUS nature of the new generation of consumers increasingly defining trends in the drinks market. If further evidence is needed that the younger set thrives on discovery and novel propositions, our annual “Hot Brands” feature, celebrating the fastest-growing brands in the industry, should put any doubts to rest. Thirty-two of the total 74 Impact “Hot Brands” for 2017 are new to the list this year, highlighting the success of the industry’s savviest marketers in catering to millennial tastes—as well as the difficulty of maintaining Hot Brand status in this intensely competitive environment. Among the key developments in spirits this year, the Hot Brand list reflects the market’s growing thirst for Tequila—especially of the upscale variety—with the category fielding more entries than any other spirit. In domestic…

1 min.
jägermeister, sgws align across 45 states

MAST–JÄGERMEISTER U.S. HAS aligned nationally with Southern Glazer’s Wine & Spirits, which will now handle the German company’s namesake brand across 45 U.S. markets. Jägermeister was already part of the Southern Glazer’s portfolio in 21 markets. Now, the wholesaler will add the brand in 24 new states, including 13 open markets and 11 control markets. The move to go national with SGWS comes as Jägermeister looks to rejuvenate its U.S. business after years of decline owing to heightened competition from flavored whiskies in its core shot occasion. After surrendering nearly 1 million cases between 2010 and 2016 to arrive at about 1.7 million cases, Jägermeister went on the offensive with a $15 million U.S. campaign last year, including TV ads and new packaging. In NABCA channels, the brand was down…

2 min.
svedka eyes on-premise expansion

WHILE IT’S BEEN TOUGH SLEDDING for many of the U.S. market’s leading vodka brands lately amid intense competition within the category, Constellation Brands-owned Svedka vodka has managed to remain in positive territory over the past two years, reaching 4.4 million cases on 2% growth in 2017, according to Impact Databank. Since 2010, Svedka has added more than 1 million cases to its U.S. total. In 2015, Svedka became the largest imported vodka brand in the U.S. by volume, and is now the market’s fourthlargest vodka overall, behind Smirnoff, Tito’s, and New Amsterdam. Carl Evans, Constellation’s vice president of marketing for spirits, is confident that Svedka can continue its gains. “The value equation—what you get versus what you pay,” continues to be the driving force for the brand, he says. At retail, Svedka…

1 min.
twe’s beringer adds bourbon barrel wines

TREASURY WINE ESTATES IS EXTENDing the Beringer brand with Beringer Bros. Bourbon Barrel Aged wines, including a Chardonnay, Cabernet Sauvignon, and Red Cuvee aged for 60 days in charred American oak Bourbon barrels and retailing at $18 a bottle. Mark Beringer, the great-great grandson of co-founder Jacob Beringer, oversees winemaking for the new offering. Beringer’s new Bourbon Barrel wines sport interactive labels which can be scanned with the “Living Wine Labels” app to bring Beringer’s founding brothers Jacob and Frederick to life in an augmented reality feature.…