News & Politics
Shanken's Impact Newsletter

Shanken's Impact Newsletter October 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

10 min.
upscale offerings lead a u.s. boom for single malt scotch

SINGLE MALTS CONTINUE TO EXPAND their share of the total Scotch category, with global volume increasing 5.5% to 6.7 mil-lion nine-liter cases last year. The segment remains a mere 7.7% of global Scotch con-sumption in volume terms, but has a 22.6% share in the U.S., where depletions increased 4.5% to 1.7 million cases in 2018. Last year, total single malt Scotch exports grew 11.3% to £1.3 billion ($1.6b), and 0.2% to 9.5 million cases. Shipments to the U.S. surged 14.9% to £344.5 million ($428.3m). The U.S. also leads export growth by value on a per-case basis, at £181 ($225). The top five brands account for nearly two-thirds of the total single malt category in the U.S. Single malts have been the main driver of Scotch’s gains for a number of years, with…

8 min.
canadian whisky in innovation mode

DESPITE THE BOOMING POPULARITY OF WHISK(E)Y IN THE U.S. AND, INCREASINGLY, around the world, Canadian whiskies continue to face challenging conditions, with volume slipping for most brands year over year. Eight of the 10 largest Canadian whisky brands in the U.S. declined last year, with only Diageo’s Crown Royal and Proximo Spirits’ Pendleton posting gains. Overall, the total unflavored Canadian whisky market in the U.S. dropped by 2.7% to just under 13 million cases, continuing its long-term decline. Even as rye whisk(e)y continues to gain momentum, many Canadian brands distilled from the same grain, even those with significant age statements, are struggling to catch fire. Though the category has yet to reap the benefits of the wider brown spirits boom, market-ers see opportunities for the future. “Canadian whisky as a category…

1 min.
single malt’s efflorescence

IF THERE’S A CLEARER ILLUSTRATION OF THE PREMIumization trend in the U.S. market than the remarkable growth of single malt Scotch whisky, I’d like to see it. Since the beginning of this decade, the upscale single malt segment has expanded its portion of the total Scotch whisky market in the U.S. by nearly 10 percentage points, and it’s now cruising toward a 25% share. While single malt is also boosting its share across other global markets, its rise has been propelled first and foremost by the U.S. Last year, single malt exports to the U.S. surged 15% to £345 million ($424m), and they’ve expanded by approximately two-thirds over the past five years. France, the second-ranked export market for single malts, has shipment value less than half that of the U.S. Moreover, malt…

2 min.
michael jordan and partners take on tequila with new cincoro brand

COMCINCORO, A NEW HIGH-END TEQUILA helmed by a team of NBA owners—including Michael Jordan—and finance professionals, has launched in 12 markets across the U.S. The new entry is taking aim at the luxury market in the on- and off-premise with packaging designed by Nike’s Mark Smith and liquid selected by the brand’s founders in consultation with industry experts. Cincoro’s founding partners include finance professional Emilia Fazzalari and her husband Wyc Grousbeck of the Boston Celtics, Jeanie Buss of the Los Angeles Lakers, and Wes Edens of the Milwaukee Bucks, in addition to Jor-dan, who owns the Charlotte Hornets. Fazzalari, who’s the CEO of Cincoro, tells Impact that the founders discov-ered their shared passion for Tequila over dinner one night, and decided to explore the options for creating their own brand. Chris Spake,…

1 min.
treasury wine eyes gains at luxury tier

IN A SURPRISE MOVE REVEALED IN August, Treasury Wine Estates (TWE) appointed company veteran Angus McPherson president of its Americas region and global sales. McPherson recently detailed the company’s strategic plan for the U.S. for investors, focusing on premiumization and innovation initiatives across the portfolio. Overall, TWE is aiming to deliver a 25% EBITS margin in the U.S. looking ahead, up from 19% in its fiscal year ended in June. McPherson said a focus on portfolio mix—upweighting its position in the luxury and masstige ($10-20) segments—and leveraging its revamped route-to-market will be key in reaching that goal. “We’ve estab-lished a separate luxury sales team to drive distribution with a tight-focused portfolio of Stags’ Leap, BV, and the top end of Beringer, as well as Pen-folds,” McPherson said. “The team is actively…

1 min.
patrón doubles its aging capacity

AMID A BOOM IN LUXURY-PRICED AND AGED TEQUILAS, BACARDI-OWNED Patrón has unveiled a new barrel-aging facility that will bring its total capacity for aging spirits to over 20,000 barrels. The new space—a nearly 17,000-square-foot extension named for master distiller Francisco Alcaraz—will roughly double Patrón’s aging capacity, and will feature a tasting area for brand education and an under-ground bar called La Cava for VIP entertaining. The expansion allows the brand to ramp up its aged production as consumers embrace more premium marques and more varied Tequila consumption. Patrón remains the dominant force in the luxury segment, far ahead of second-ranked Don Julio, and continues to expand, averaging growth of about 100,000 cases annually over the past three years. Last year the brand reached 2.5 million cases, including its Roca Patrón…