News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter September 1-15, 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

21 min.
impact’s “hot prospects” rosterhighlights stars of the future

EACH YEAR, IMPACT’S “HOT PROSPECTS” awards showcase the emerging stars of the industry—those that are poised to drive sig-nificant growth across the wine and spirits business in the years ahead. This year, a total of 90 brands met Hot Prospect criteria, split nearly evenly among spirits and wine brands. To qualify as Hot Prospects, brands must have achieved at least 15% depletions growth for 2018, while also showing con-sistent growth in the two preceding years. For spirits and imported wines, brand vol-umes must be between 50,000 and 200,000 cases, while domestic wines are between 50,000 and 250,000 cases. The Hot Prospects spirits list presents a nearly even spread across the major catego-ries, with American and imported whiskies, Tequilas, rums, vodkas, liqueurs, brandies, and RTDs all represented. Scotch and other imported whiskies stepped…

9 min.
top spirits players pick up the pace

DESPITE TURBULENT GLOBAL ECONOMIC CONDITIONS, GROWTH RAMPED UP SIGNIFI-cantly for the world’s top 10 spirits marketers last year, as the group combined for a 3.1% increase to 620.4 million cases, according to Impact Databank, accelerating from a 1.1% pace the previous year. With the robust performance—in which all members of the top 10 posted volume increases for the year—the world’s leading marketers inched closer to a 50% share of the total spirits category by volume, after gaining a full percentage point over the past two years to reach 49.8%. Hot spirits categories like Bourbon (+5.9%), Irish (+9.9%), and Japanese (+7.6%) whis-kies, as well as gin (+6.8%) and Cognac (+5.6%) are driving solid gains, benefiting brands across the premium spectrum. Martell Cognac, Tanqueray gin, Maker’s Mark Bourbon, Aperol aperitif, and Don Julio…

1 min.
emerging stars

IF NEW PRODUCTS INDEED REPRESENT THE LIFEBLOOD of the drinks industry, the bounty of Impact’s “Hot Prospects” awards is a promising sign for the future. Each year, we award Hot Prospect accolades to small but emerging brands that are poised to make an impact on the business in the years ahead. This year, 90 brands from the wine and spirits categories met Hot Prospect criteria, a significant jump from 74 labels last year. In spirits, the Hot Prospects roster is loaded with both American and imported whisk(e)y brands, with Bourbon, Scotch, Irish, Canadian, and Japanese offerings all represented. Tequila also had a strong showing, placing seven labels on the list. The domestic wine Hot Prospects con-tinue to be dominated by California, but rising labels from Washington, Oregon, and New Mexico also earned honors,…

2 min.
treasury invests in france, australia

TREASURY WINE ESTATES SAW SALES climb 12% to A$2.8 billion ($1.9b) in its fiscal year through June on a con-stant currency basis, as the company’s $10 and above business increased by 27%. Wines retailing at $10 and up now account for nearly 70% of net sales for Treasury, which has undertaken an aggressive premiumization campaign in recent years. Those gains helped EBITS rise 22% to A$662.7 million ($449m). In Treasury’s Americas region, sales were up 9.4% to A$1.1 billion ($746m), with revenue per-case rising 6.5% and EBITS increasing 1.8% to A$218.7 million ($148m). The company says its recent route-to-market changes in the U.S. are now “successfully embedded” and began to deliver improved margins in the second half of the fiscal year. From a brand perspective, Treasury saw premium and above labels like…

1 min.
heaven hill acquires black velvet for $266m

HEAVEN HILL BRANDS HAS AGREED to acquire Black Velvet Canadian whisky from Constellation Brands for $266 million, subject to regulatory ap-proval. The deal is expected to close in the second half of the year. The acquisition includes all the dis-tilling operations, aging and bottling facilities, and the remaining portfolio of Canadian whisky brands owned by Constellation, which includes Black Velvet, MacNaughton, McMasters, and others. The net sales for the brands included in the transaction totaled US$67 million during Constellation’s fiscal year 2019, and the purchase price represents a multiple of gross profit af-ter marketing in the range of eight to nine times. Black Velvet was down 2.6% to 1.9 million cases in the U.S. in 2018, in-cluding flavors, according to Impact Databank. Heaven Hill says the brand fills a gap in its…

1 min.
walmart suffers a setback in texas

IN A BLOW TO WALMART’S BID TO SELL SPIRITS IN TEXAS, THE U.S. COURT OF Appeals for the Fifth Circuit has overturned a lower court ruling that found a Texas state law against spirits sales by publicly traded corporations discriminatory to out-of-state entities. The Fifth Circuit panel said U.S. District Judge Robert Pitman’s 2018 ruling was incorrect in declaring the law discriminatory on the basis of the state’s history of litigation against out-of-state operators, and did not take into account “evidence addressing the public corporation ban’s effect on the flow of interstate goods, or how the ban affects the flow of the potential market participant’s goods to the Texas liquor retail market.” The panel observed that out-of-state interests already own package stores in the state, and added that it found no…