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Shanken's Impact Newsletter

Shanken's Impact Newsletter November 1, 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

10 min.
irish whiskey’s major players primed for further progress

IRISH WHISKEY VOLUMES ARE SURGING upward at double-digit rates, driven by the U.S. market, which accounts for 40% of global consumption. As a major driver of the whiskey renaissance, the Irish category has quintupled in size in the U.S. over the past decade. Suppliers are investing in new facilities and product innovations at a rapid rate: the number of operational distilleries grew to 20 this year from three back in 2006, and at least 26 more are in the planning or construction stages, according to the Irish Spirits Association. Overall, Irish whiskey advanced by 10.6% to 9.7 million 9-liter cases last year, making it one of the fastest-growing global spirits categories. Exports are now on pace to exceed the 2020 target of 12 million cases set by the Irish Whiskey…

9 min.
flavors boost category momentum

EXCLUDING ITS BUOYANT FLAVORED SEGMENT, CANADIAN WHISKY HAS BEEN IN A DOWNWARD slide in the U.S. market and worldwide for more than a decade. Globally, the category is down by nearly 2 million cases since 2010, after falling 2% to 20.6 million cases in 2017, according to Impact Databank. In the U.S, Canadian whiskies excluding flavors were down 1% to 13.4 million cases last year, and have fallen by about 1.4 million cases over the past seven years. The brown spirits boom has largely side-stepped the Canadian category—in fact, Bourbon, Scotch, and other whiskies have been drawing consumers away. Also a factor are what Constellation Brands vice president of marketing Carl Evans refers to as “promiscuous consumers,” who often stray from one label to another, or even into entirely new spirits…

1 min.
on the verge

IRISH WHISKEY IS ON THE CUSP OF A MAJOR MILESTONE this year, with global volume likely to crest the 10-million-case threshold. From 2012-2017, the category expanded by some 60% to nearly 9.7 million cases—including a 1.7-million-case jump in the U.S., its largest market—and it shows no sign of slowing. On the contrary, spirits players both large and small are flocking to Irish whiskey, identifying the category as a key source of industry growth for the years ahead. In 2013, there were just four whiskey distilleries operating in Ireland: Cooley, Kilbeggan, Midleton, and Bushmills. This year, there are 20 in operation, with another 26 distilleries in the planning or construction stages, according to the Irish Spirits Association. Pernod Ricard’s Jameson remains Irish whiskey’s clear leader at nearly 7 million cases globally, but it’s…

2 min.
total wine residency case could reverberate across all three tiers

IN A COURT BATTLE THAT COULD have far-reaching implications for wineries, wholesalers, retailers, and consumers, the Supreme Court of the United States has agreed to take on the case involving Total Wine & More’s entry into the Tennessee market, which the Tennessee Wine and Spirits Retailers Association (TWSRA) is fighting on the grounds that Total hasn’t fulfilled the state’s residency requirements. Total Wine asserts that Tennessee’s residency requirement is discriminatory against out-of-state residents and therefore in violation of the Constitution’s Dormant Commerce Clause. Some observers believe that the court could also use its decision to clarify whether state bans on shipping by out-of-state retailers are unconstitutional. Total Wine challenged the Tennessee law successfully on Commerce Clause grounds in both federal district and appeals courts, and noted in its brief to the…

1 min.
u.s. wine market to add 1m cases by 2020

THE U.S. WINE MARKET IS EXPECTED to continue its long-term growth streak in 2018, albeit at a sluggish 0.2% projected pace to reach 328.2 million 9-liter cases. This year will mark the industry’s 25th consecutive annual gain, according to Impact Databank. In spite of the recent lackluster growth, total wine consumption volume has increased by over 80% over the past two decades, and the overall market is projected to add nearly 1 million cases more by 2020. Sparkling wines are again expected to outpace total industry growth this year, with a projected 3% gain to 21.6 million cases. Sparklers will account for a 7% share of the overall wine market this year, an all-time high. In the off-premise, sparkling wines were up 8.3% by retail dollars in IRI channels for the…

3 min.
a new era at constellation brands: bill newlands named ceo, as rob sands becomes chair man

In a major move, Constellation Brands recently announced that its current president and COO, Bill Newlands, will take over chief executive duties from Rob Sands, effective next March, with Sands becoming executive chairman. With the transition, Newlands will become the first Constellation CEO from outside the Sands family. Newlands takes the helm during a heady time for Constellation, which has seen its market value rise from $6.3 billion in 2012 to $43 billion today, following a string of acquisitions across the wine, spirits, and beer businesses. Its key additions in recent years have included Meiomi and The Prisoner in wine, Ballast Point in beer, and High West Distillery in spirits. Most recently, Constellation made another bold move with its $4 billion investment in Canadian cannabis producer Canopy Growth. Impact managing…