News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter May 15, 2019

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.
competition ramps up within tequila category’s luxury tier

IN THE U.S.—TEQUILA’S LARGEST EXPORT market—super-premium and luxury brands are driving premiumization within the category, with consumers continuing to trade up to 100%-blue agave expressions. Last year, the global Tequila market grew 3% to nearly 24 million cases, according to IMPACT DATABANK. While that performance marked a slight deceleration from the previous year, it was mostly due to the decline in lower-priced mixto Tequilas. In just under 20 years, 100%-blue agave Tequila has gone from being a small slice of the U.S. market—8.6% in 2000—to reach a 57.2% share last year. The shift toward 100%-blue agave Tequila has pushed the market into higher-end expressions, benefiting producers who mainly play in the super-premium and luxury segments. Though Jose Cuervo (including both mixto and 100%-blue agave) remains the largest brand in the U.S. by…

8 min.
provence leads ongoing rosé boom

ROSÉ WINES HAVE TAKEN OFF IN THE U.S. MARKET, AS VARIETY EXPANDS AND WINE drinkers opt for rosé options beyond the traditional summer months. Last year, the category increased to 18.7 million cases—including blush and pink wines, as well as traditional rosés—up from 17.5 million cases in 2015, according to IMPACT DATABANK. Pink/blush wines like White Zinfandel accounted for about 16.4 million cases on a 4% rise in Nielsen channels in 2018, with value at $1 billion on a 13% increase. But it’s the premium-and-above rosé segment, overwhelmingly led by Provence, that’s really exploded in recent years. Provence rosés topped 2 million cases in the U.S. on 14% growth in 2018, according to Business-France, a French government agency. As a number of new brands enter the rosé space, the category has…

1 min.
climbing the price ladder

THE JOURNEY OF THE TEQUILA CATEGORY IN THE U.S. over the past two decades has been nothing short of remarkable. Less than 20 years ago, the category was still dominated by mixto Tequilas, and the connoisseur segment was barely on the radar screen. Today, led by the dominant Patrón brand, Tequila above $40 a bottle is a 4-million-case business in the U.S. Patrón, owned by Bacardi, is the clear leader of the luxury segment with a roughly 60% share, but Diageo, Brown-Forman, Pernod Ricard, and others are also making rapid gains. Diageo’s one-two punch of Don Julio and Casamigos has been particularly potent lately, with the two brands now combining for more than 1 million cases. While the luxury Tequila segment continues to appeal to consumers in ever greater numbers, the super-premium…

1 min.
hanson will head up key constellation unit

FORMER CONSTELLATION BRANDS board member Robert Hanson has been named executive vice president, and president of the company’s wine and spirits business, effective June 3. He replaces Chris Stenzel, who left the group late last year. Hanson served on the Constellation board from 2013 until this spring, and stepped down from the board to accept the new role leading the wine and spirits unit. Hanson was previously CEO of John Hardy Global Limited, a leading global luxury jewelry brand, and he will continue to serve as that company’s chairman. Prior to joining John Hardy, Hanson also served as CEO at American Eagle Outfitters and global brand president at Levi Strauss & Co. The move comes as Constellation retrenches its wine and spirits portfolio at the higher end of the market,…

2 min.
grey goose, absolut reload with new campaigns to boost momentum

TWO OF THE WORLD’S TOP VODKA brands have unveiled new marketing campaigns aimed at restoring momentum to their franchises in the U.S. and other key markets. Grey Goose’s new “Live Victoriously” platform marks a 44% spending increase for the brand in the U.S., the company tells IMPACT. Last year, Grey Goose spent $12.6 million on media advertising, according to Kantar. The new programming combines a national print campaign running in lifestyle titles like Rolling Stone and Esquire, digital, television, and social media activations aimed at promoting Grey Goose in everyday occasions that are more accessible for consumers, as opposed to the brand’s luxury-focused campaigns of the past. “The ethos behind Live Victoriously is that every single moment has the potential to be a lifelong memory, so why not spend a few dollars…

1 min.
johnson bros. enters nj wholesale market

JOHNSON BROTHERS HAS ENTERED its 27th U.S. market with the launch of operations in New Jersey. Johnson Brothers’ New Jersey business will be led by Eddy Rivera, a Gallo veteran who already serves as general manager of Johnson Brothers New York. The company will handle wine, spirits, and beer in the Garden State. Rivera said that Johnson Brothers’ experience since entering New York in 2016 has made it “clear that the New York/New Jersey area welcomes and embraces more choices at the distributor level.” Johnson Brothers ranks fifth among wine and spirits wholesalers in the U.S.…