News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter July 1, 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

11 min.
rum marketers intensify their focus on category’s high end

AFTER EXPERIENCING SLIGHT GROWTH IN 2016, total rum volumes in the U.S. market declined once again last year, dropping 1% to 22.7 million cases, according to Impact Databank. Nine of the top 15 brands lost ground, including market leader Bacardi, which slipped by 4% to 6.7 million cases. Rum’s U.S. volume has fallen by nearly 900,000 cases since 2010. While the U.S. market declined, rum fared better on a global basis, as the top 10 premium brands grew by a combined 2.5% to 45.4 million cases last year, bolstered by increases for brands including Captain Morgan (+9%), Malibu (+4.2%), Havana Club (+5.7%), and Brugal (+2%). Marketers in the United States are particularly focused on the premium-and-above tiers, where aged offerings, flavor extensions, and the tiki movement are sparking improvement for a…

7 min.
craft, mexican brews lead the way

CRAFT BREWS, MEXICAN IMPORTS, AND RTDS WERE THE BIG BEER “HOT BRAND” STARS of 2017, reflecting the overall trends of the U.S. beer market. While the list includes several perennial winners, an impressive number of brands joined the ranks for the first time, including new releases that are off to stellar starts. Thirty-six brands from the beer, cider, and RTD categories are recognized as 2017 Impact “Hot Brands,” up from 31 labels in the year prior. Twenty-two of the current winners weren’t on the list in 2016, including four craft brews, two imports, one cider, and a whopping 14 RTD labels. Indeed, for a number of those RTDs, the hot flavor of 2017 replaced the hot flavor of 2016, demonstrating the ongoing importance of flavor in the marketplace. RTDs accounted for…

1 min.
rum’s opportunity

AS THE OVERALL SPIRITS MARKET CONTINUES TO premiumize, rum remains stubbornly resistant to efforts to create value by emphasizing premium offerings. Undeterred, a number of ambitious players are redoubling their investments in upscale rums, laying the groundwork for success in the years ahead. At the forefront is Bacardi, which has mounted a new push this year behind its aged rums, unveiling a revamped lineup that includes new expressions at the upper end of the price spectrum. As the rum market’s undisputed leader, it’s fitting that Bacardi is taking a leadership role in the premiumization movement. But Bacardi isn’t alone. As our feature on the state of the rum category reveals, there are plenty of spirits marketers who sense opportunity at the high end, and they’re launching new brands and extensions aimed at…

2 min.
sandra ledrew named terlato coo

BILL TERLATO, PRESIDENT and CEO of Terlato Wine Group, has named Sandra LeDrew as chief operating officer, a new role within the company. LeDrew is being elevated to the position of COO in an effort to energize and expand the Terlato Wine Group’s worldwide operations. “My goal is to accelerate our business with a special emphasis on profitability,” LeDrew tells Impact. “We have a num-ber of well-positioned brands in our portfolio that offer enormous opportunity for growth.” LeDrew joined Terlato as president of winery operations just over a year ago, after previously serving as president of Treasury Wine Estates Americas and Diageo Chateau & Estate. In her new role, she will take responsibility for day-to-day operations across the entire Terlato Wine Group. Dave Lane will continue as president of Terlato Wines International,…

1 min.
precept expands canned wine range

SEATTLE’S PRECEPT WINE HAS BEEN A MAJOR MOVER IN THE CANNED WINE category, which surged 54% to $28 million in Nielsen channels last year. Precept’s total volume neared 1.5 million cases on 7% growth in 2017, with its canned lineup contributing strongly to that performance. Precept’s canned range includes the West Side Wine Co. brand, launched in 2016, and its flagship House Wine franchise, which debuted canned offshoots last spring. Now it’s expanding further in the segment with the launch of Ste. Chapelle Spritz, a new range of canned effervescent wines from Idaho’s Ste. Chapelle. The Ste. Chapelle Spritz lineup features three expressions—Wild Huckleberry, Wild Mountain Berry, and Blood Orange—and will be retail priced at around $6 a 375-ml. can. The Ste. Chapelle brand has a footprint of 30 states.…

1 min.
u.s. whiskey exportsthreatened by tariffs

CHINA HAS JOINED THE LIST OF countries imposing new tariffs on American whiskey, making the move in response to the Trump administration’s new tariffs on $50 billion worth of Chinese goods. China now plans to impose a 25% tariff on American whiskies—as well as electric cars, soybeans, orange juice, cigars, and other products—beginning this month. While China remains a small market for American whiskies, with imports worth about $6 million last year, the new tariffs threaten to stunt growth just as the American whiskey renaissance increasingly spreads overseas. China’s tariffs on American whiskies follow similar moves by Mexico, Canada, and the European Union, all of which are also hiking levies in retaliation for new steel and aluminum tariffs raised by the Trump administration. The Distilled Spirits Council said exports worth…