LATEST EDITION OF RESERVA DE LA FAMILIA IN STORES

Jose Cuervo International today announced the availability of the 2007 edition of the Reserva de la Familia in U.S. stores beginning March 1st. This will be the 12th edition of the product.

A NEW LINE OF CACHACAS HITS MIAMI

Araci Ferreira Slasinki, a fifth-generation cachaça maker, has collaborated with Agudente Caribena Ltd., to create Cuca Fresca, a new premium line of Brazilian cachaças made specifically for the international market. This 40% alcohol-by-volume spirit, named after the Portuguese translation for “cool head,” had its debut in Miami this month and is set to begin rolling out in the Northeast.

Cuca Fresca is available for $19.95 per 750-ml.bottle. Prestige Chateaux & Domains distributes the spirit in the on- and off-premise throughout the Miami-metro area, and ACE Distributors recently signed on as its Northeastern distributor. Next month, Cuca Fresca Pura Gold will also launch in the U.S.

ITALIAN VITIANO INTRODUCES A NEW FACE

U.S. importer Winebow, Inc. has embarked a new campaign with Italian winemaker Riccardo Cotarella to rebrand and relaunch the Vitiano label. The new effort includes a new label that emphasizes both the Vitiano name and the grape varietals in the bottle, according to a statement issued by the company.

The Vitiano line encompasses three wines: Rosso (equal parts Cabernet, Merlot and Sangiovese), Bianco (50% Vermentino and 50% Verdicchio), and Rosè (a blend of the Vitiano Rosso with 10% Aleatico). The wines are available at a price range of $7.99 to $10.99.

“We see this as a stand alone brand,” added Leonardo LoCascio, Chief of Winebow. “The updated packaging will appeal to a wider – and savvier – consumer base.”

NEW ZEALAND: FASTEST GROWING IMPORT

ACNielsen data from off-premise liquor stores reports that New Zealand wines are growing their market share in the United States faster than any other import. Currently, New Zealand wine sales annual growth is over 45%, with the next best growth at 36% from South African wines.

CONSUMER LOYALTY DRIVEN BY LAZINESS

Business Insights’ has a published a study that claims brand loyalty is “considerably higher” in the drinks market than in the food sector, with alcoholic beverages and soft drinks enjoying the highest levels of consumer loyalty.

In the survey, 56.9% of the participants rated their loyalty towards drinks brands as ‘high’ or ‘very high,’ with 66.7% believing their loyalty will at least stay the same or improve over the next five years.

However, the report suggests that the consumer loyalty is more about habit rather than true devotion. They’d rather stick to what they know then venturing into new products. The best way to maintain their loyalty? Stay true to yourself, says the article. Determine what your brand is about and commit to it in the long-term.

WARREN BUFFET BUYS TESCO SHARES

By now, we’re pretty confident that everyone, even billionaire investors, has heard of the Tesco retail giant that will soon land on our west coast shore.

Tesco's “Fresh and Easy” U.S chain set to launch later this year has attracted the attention of billionaire Warren Buffett, according to Bloomberg news. Buffet purchased 177.8 million Tesco shares at a 2% stake through his company Berkshire Hathaway, Inc.

Knows as the “Wal-Mart of Britain,” some view Tesco’s move into the U.S. as a risky venture since other U.K. chains have not faired so well (Sainsbury, for example.) However, Tesco is at the head of British retail, and comes into the U.S. with a clean slate and desire to conquer. Want more proof of its likely victory? Warren Buffet, who has stakes in both Diageo and Anheuser-Busch, obviously thinks it’s going to be a success, which says a lot.

Many reports state that Tesco plans to build anywhere from 250 to 300 stores in the U.S., but in theory could support much more

SIDNEY FRANK DOES IT AGAIN

Irish-owned Cooley Distillery saw profits rise 20% in 2006, helped largely by the successful launch of the “Michael Collins” Irish whiskey brand in the U.S. (imported by Sidney Frank).

Profits reached about $2.1 million last year, with sales increasing 10% and volumes rising from 180,000 cases to 210,000 cases. According to Adam’s Handbook, Irish whiskey volumes were up 10% in the U.S. last year – and the growth is expected to continue.

SPIRITS DOWN 3% IN DECEMBER

Based on IRI data, UBS analyst Melissa Earlam reported that NABCA spirits volumes (covering Control States or 24% of U.S. market) were down 3.04% in December 2006 due to tough comps (up 4.75%). This marks the first monthly decline since January 2005, although November was very strong with a volume growth of 6.74%.

For the entire year, 2006 volumes grew 3.92%, a little above 3.46% in 2005. That figure tracks closely with the 3.8% figure reported earlier by DISCUS, which predicts volume will slow down in 2007 to a 3.2% growth.

Diageo saw December volumes decline 1.88%, but experienced an almost 6% volume growth for the year. Diageo continued to take share in all major categories in December with the exception of vodka (attributed to the Smirnoff price increase) and ready made cocktails.

Pernod also saw a drop in December with volumes down 4.56%, resulting in some lost share in Scotch, gin, rum, Brandy/Cognac and cordials, and some gained share in vodka. In all, the French company grew 2.89% for 2006.

Both Remy and Campari gained volume share in December, with 2006 growth of 5.25% and 6.46% respectively.

B-F ELECTS NEW BOARD MEMBER

Brown-Forman announced today that William Mitchell, chairman, president and CEO of Arrow Electronics, will joined the company’s board of directors, effective March 12.

POTATOES OR MOLASSES, IT’S STILL VODKA

The European Parliament has struck a compromise deal on the definition of vodka. Although a full report will not be released until March, members voted to make the definition as broad as possible despite some MEP’s (Finland, Poland, ect.) who wanted to limit “vodka” to a spirit made only out of potatoes or grains.

Now, producers must include the basic ingredient for the vodka on the label, whether it’s molasses, grain or potatoes. The compromise will allow producers throughout the EU to continue making vodka as they always have, and will also avoid problems at the WTO.

WINE REFORMS TOO RADICAL. Members of the EU Parliament Agriculture Committee agreed that the distillation system used to dispose of surplus wine should be retained in the short-term. Furthermore, they determined that member states should be allowed to choose how they dispose of wine in their own countries.

The measures, to be voted on by the full Parliament in February, were laid down in a report by MEP Katerina Batzeli.

WINE SALES SLOW IN DECEMBER

December is a big month for the wine industry and 2006 was no exception. According to IRI supermarket scanner data interpreted by Merrill Lynch’s Christine Farkas, table wine dollar sales rose 8.9% in December, although down slightly from the 10% increase in November and YTD. Table wine volumes rose 5%, a little shy of November’s growth of 5.6% but much higher than the 1% increase in December 2005.

Christine describes 2006 as a year with “good table wine volume growth,” up 3.6%, with gains in all price categories over the $2.99per bottle category. In accordance, a favorable price/mix over 6% pushed dollar sales by 10%.

Although trading up among consumers continues, the industry did not benefit as much in 2006 as they had in the past. Category price/mix was up 3.8% in December to $5.65 per bottle, representing the slowest growth in 2006 mainly due to imports. (January 2006 saw the highest price/mix at 9.4 %.) California wine rose 4.4% in December 2006, while Oregon and Washington wine prices were flat and Australian prices slid 1.5%.

As we mentioned earlier, table wine dollar sales rose approximately 9% in December due to “strong high-end brand growth.” Low-end wine brands saw a little improvement, while mid-range brands moderated and super-premium pricing was mainly negative.

VOLUMES DOWN FOR THE BIG THREE. Volumes of wines priced above $15 a bottle rose by 19.5% in December, coupled with a 16.8% gain in the $12-$15 segment and a 9.4% rise in the $9-$12 range. Volumes in the $5.50-$9 segment grew by 9.2%, and volumes in the $3-$5.49 and <$3 segments rose by 1.6% and 1.9% respectively.

With high-end wines continuing to drive growth, the major players (Gallo, STZ and The Wine Group) have lost annual volume since 2002 after skewing to lower-priced wines.

Merrill Lynch reports that STZ (along with Vincor) has done the best of all the small and large players with a price/mix growth that has averaged 4.9% since 2002. UST’s volume growth has grown every year since 2002, and in 2006 reported 12% leap in volume that exceeded Yellow Tail's growth of 10.7%.

FORTUNE MAGAZINE: “DRINK WINE AND LIVE LONGER.”

The front page of the February issue of Fortune Magazine promises to give the wine industry some positive press. The phrase “Drink Wine and Live Longer,” is featured in large, bold letters beside a picture of red wine being poured from a bottle into a glass. The days of health benefits going unreported are officially over.

WILLIAM GRANTS BUYS A STAKE IN TEQUILA

William Grant & Sons, the family-owned distiller and one of Scotland's biggest private companies, has expanded into the tequila market with a 30% stake in Mexican brand Milagro.

The maker of Glenfiddich, The Balvenie and Hendrick's Grant's has retained an option to buy the brand out-right if it achieves its growth targets under the terms of the deal, according to The Scotsman.

William Grant already handles the Milagro brand in the U.S. and plans to launch it in the U.K. in the second half of this year.

SCREW CAPS SURGE TO NEW HEIGHTS

U.S. wine with screw caps increased 24.6% in 2006 according to research released by ACNielsen at the Unified Wine & Grape Symposium last week. The latest scan data again shows strong growth, with screw cap closures winning market share as consumers learn more about the closure and overlook stereotypes.

According to ACNielsen, sales of wines with screw cap closures surged 24.6% in 2006, 2.3 times faster than the total 750 ml bottled wine category. ACNielsen found white wines, imports and wines priced $8 to $11.99 to be the most developed within the screw cap segment. Grossing $191.9 million in retail off-premise sales (U.S. food/drug/selected liquor markets), screw cap finished wines contributed to 4% of total 750 ml table wine sales for the 52-week period ending December 16, 2006.

"The burgeoning market for innovative closures is not about direct competition with natural cork," said Paige Poulos, founder of the Alliance for Innovative Wine Packaging (AIWP) and president of Paige Poulos Communications. "This is about diversification and convenience, creating new opportunities for the enjoyment of wine as an everyday beverage, and expanding the market. In the immediate future, we see traditional packaging continuing to thrive, with screw caps and other innovative closures seeing widespread consumer acceptance. This is a very healthy market dynamic."

KENDALL-JACKSON NAMED “WINERY OF THE YEAR.”

So wine’s doing great these days, but there was one brand in particular that did noticeably well. The highly respected industry analyst Jon Fredrickson named Kendall-Jackson his “Winery of the Year” at the Symposium last week. The award is presented by the analyst each year to recognize a winery that has done significantly well with marketing its wines.

It looks like the company’s price increase paid off. Sales of Kendall-Jackson wines in food stores soared 19% last year despite a $2-per bottle price increase of its flagship Vintner's Reserve Chardonnay, said Jon during a presentation. The winery also sold an estimated 4.1 million cases last year, 650,000 more than 2005.

The company took a risk in re-branding its flagship brand, already the best-selling chardonnay in the nation, but it paid off.

In 2005, K-J announced it would up the price of its Vintners Reserve from $10 to $12, and source grapes only from its family-owned vineyards. The new label and advertising campaign now focuses on the winery’s family ownership and farming, and carries the phrase "Jackson Estates Grown."

According to ACNielsen data for wine sales in grocery stores, Vintner's Reserve Chardonnay increased from $72 million in 2005 to $81 million last year.

In addition to the success of Vintner's Reserve, sales of K-J's $17 Grand Reserve Chardonnay, increased 52% percent, from $24 million to $37 million, he said.

CONSTELLATION INTERNATIONAL APPOINTS NEW CHIEF

Constellation has announced the appointment of Jon Moramarco to the newly created ceo position for Constellation International. Reporting to Jon will be Hardy Wine Company and Constellation Wines International.

Jon, who will be headquartered at Fairport, N.Y., will report to Rob Sands, Constellation president and coo.

Troy Christensen, cfo at Constellation Europe, will assume the role of president for that operating company. David Klein, vice president of corporate development at Fairport will become cfo for Constellation Europe. These changes will become effective March 1, 2007.

"We continue to refine our organizational structure as we identify opportunities which maximize the company's operational capabilities and resource utilization to meet ever-changing marketplace needs around the world," said Rob Sands in a statement. "Our emphasis on being a nimble, entrepreneurial and decentralized organization is at the core of our strategy to deliver growth and increase shareholder value.”

Prior to his appointment, Jon was ceo for Constellation's fine wine group, Icon Estates, with headquarters in California's Napa Valley. A 12th generation winemaker, Moramarco joined Constellation Brands as chief executive officer at Canandaigua Wine Company in 1999.

U.S. DRINKS RECORD AMOUNT OF WINE

The increase in wine consumption in the United States has helped vintners and growers recover from the wine glut brought on by the 2004 and 2005 harvests.

U.S. sales of wine surpassed an estimated 300 million cases last year for the first time, Jon Fredrikson said last week at the Unified Wine & Grape Symposium in Sacramento, the industry's largest trade show.

Before long, the U.S. will become the largest wine-drinking nation in the world as Americans grow more comfortable with the formerly “intimidating” beverage. The industry has “potential health benefits” and “improved marketing” to thank as wine increasingly becomes a part of everyday life.

But it's not all smooth sailing for U.S. wine producers. There is evidence more and more Americans are looking abroad as they grow more adventurous in their wine selections. And while we’re on the subject, bulk imports aren’t helping anyone on the home front.

Overall, sales of U.S. and foreign wines rose 3% in the United States last year, rising to 300 million cases. California wineries increased sales 2%, to 189 million cases, while sales of wine produced in the other 49 states dropped 1.3% to 23 million cases. But foreign wineries boosted sales 10%, to 88 million cases, Fredrikson stated.

Depending on who you are talking to, 2006 was either a strong or tough year. Wineries had a great year as consumption increased and grapes were sold cheaply. Grape growers, however, continued to struggle with low crop prices due to surplus supplies from a huge 2005 harvest in California as well as imports throughout the world.

Increasing competition from abroad and elsewhere in the United States is causing California growers to hope for a lighter crop this year to improve prices. Although last year’s crush wasn’t too bad, many in the industry insist growers need another year or two of smaller harvests before balance will be restored.

As a result, Nat DiBuduo of Allied Grape Growers has advised growers not to plant unless the grower has a viable contract for the grapes.

“Foreign competition will not go away,” he said. “We need to compete with them on quality and value.”

“We need to learn how to grow better grapes, quality grapes, cheaper.”

CLARIFICATION

We want to clarify that in yesterday’s (Jan. 25) interview with WineStyle’s CEO Bob Spuck, the Maxwell Creek wine brand uses a different blend of Sauvignon Blanc than what St. Supéry sells themselves.

SIPPIN ON SOME SIZZURP

For those of you who are familiar with that delightful ditty, this one’s for you. Straight Up Brands has revealed that the “mystery company” it plans to acquire is Rappin Brands. The company owns several “celebrity affiliated” brands, most notably “Sizzurp,” which is often mentioned in hip-hop songs.

Rappin, has “extensive relationships in the hip-hop community,” which helped the company sell over $1,000,000 of its products in 2006 with a very limited marketing budget and distribution system.

SEAGRAM’S GIN MAKES A THUNDERING LAUNCH

Seagram’s Gin and Juice product line has rolled out its latest flavor, entitled Tropical Thunder. Gin & Juice Tropical Thunder tastes like mango and comes in a bright, orange color.

"Proprietary, nouveau cocktails in bright colors are keeping the prepared cocktail category on the cutting edge," said Wayne Hartunian, Seagram's Gin Global Brand Director, Pernod Ricard, USA, "and flavorful line extensions are a key business driver in this dynamic segment."

The new brand will be introduced off-premise in March and will be available in 750ml, 375ml, 200ml, and 50ml sizes. OOH advertising, POS materials and off-premise sampling (where legal) will accompany the launch.

TIM MONDAVI MAKES A COMEBACK

Tim and sister Marcia Mondavi, their families, and Robert and Margrit Mondavi.are partnering together to release a new wine entitled “Continuum.” The name is meant to symbolize the continuing legacy of the Robert Mondavi family, according to local Napa reports.

The partnership is currently set to produce only one wine (a cabernet sauvignon) at 1,500 cases a year. The 2005 Continuum will be released in March 2008.

Tim arranged a deal with Constellation to buy grapes from Mondavi Corp.-owned vineyards in Oakville and Stags Leap.

NORM WESLEY: “2006 WAS AN EXCELLENT YEAR

In commenting on the full-year guidance, Norm Wesley, chairman and CEO stated: “2006 was an excellent year for Fortune Brands.”

The company achieved its quarterly and full year target, and was especially helped by the wine and spirits business (Beam Global), which offset losses by home and hardware.

“The benefits of our wine and spirits acquisition accelerated as the year unfolded,” said Norm. “This is the first full year in our history where our wine and spirits sector was the main profit contributor.”

Beam Global has also enjoyed a growing influence in foreign markets since acquiring a portion of Allied Domecq’s brands. Almost 45% of the case volume came from foreign markets, said Norm.

The wine and spirits segment benefited from strong spirits shipments in the U.S. and Asia Pacific regions, as well as strong case volume growth for Beam Global’s wine brands in the U.S.

“We were very pleased with margins for the year for wine and spirits,” said Craig Omtvedt, senior vp and cfo of Fortune. “It reflects one of the best margins in the industry and was helped by strong volumes.”

Global case volume for wine and spirits grew 2-3% in 2006, while net sales were driven to high single digits by strong growth in the premium end of the market. Full year depletions for the U.S. grew at a low-single digit rate with premium and super premium brands growing even faster (trading up was key).

Jim Beam grew mid-single digits on a global volume scale, helped by its most popular markets: U.S., Australia and Germany. Maker’s Mark experienced double digit volume growth thanks to strong consumer demands in the U.S., while Sauza tequila also grew high-single digits with help from the U.S. (Sauza’s fastest growth came from its ultra premium and super-premium persuasions.) Courvoisier gained momentum as the year progressed, closing the year at a low-single digit volume growth. Canadian Club was the only major spirits brand that had lower volume growth for the year.

Although Norm stated there were no “big surprises on any front,” he did remark that Jim Beam did a little better than expected, and Canadian Club did a little worse. “It’s more a brand by brand basis,” he said.

No comment when asked about future acquisitions (Absolut anyone?)

Overall, super-premium and premium brands grew the most in all wine and spirits brands.

As far as wine goes, depletions for Clos Du Bois grew at low-single digits, while Geyser Peak and Wild Horse increased at a double digit rate.

“Consumers continue to trade up, and spirits and wine continue to gain share from beer in the U.S. With the successful integration of our acquisition behind us, we’re looking forward to another very good year in this business,” said Norm.

To help further build long-term equity across all of Beam Global’s priority brands, the company is planning a double-digit reinvestment plan in 2007.

Says Norm:

“We felt that some of the brands we’ve acquired were promoted too much on price, so we want to invest behind those brands and build them in what we would consider a more rational way in the long run. So we have a double digit brand investment built into our plan for next year, and that includes supporting some of these global brands that we feel were promoted too much on price, and in particular supporting some of the international opportunities we see across our portfolio, including India and China for example.”

“Our guidance for next year is to be up in the high-single digits which we think is quite good and reflects solid growth as well as continuing to benefit from synergies in bringing these two portfolios together.”

SUNDAY SALES A HIT IN WASHINGTON

Washington state will likely expand Sunday liquor sales to more stores after a successful experiment showed a huge increase in sales.

Over the last 16 months, 20 state-run stores and 38 contract stores run by private vendors have been keeping Sunday hours, noon to 5 p.m., which has resulted in a projected $18.5 million in sales by June 30th.

FOUR ROSES YELLOW FEATURED IN “ROCKY BALBOA

Four Roses Yellow Kentucky Straight Bourbon Whiskey will be featured in Rocky Balboa during a scene between Rocky and his brother-in-law, Paulie, who has appeared in all six Rocky movies.

“I remember Four Roses growing up. It was my grandfather’s favorite drink,” said Sylvester Stallone in a press release issued by the company.

Four Roses was once the most popular Bourbon brand sold in the U.S. But in the 1960s, then-owner Seagram’s made Four Roses an export-only product, making it the top-selling Bourbon sold in Japan and among the most popular in Europe. Four Roses was reintroduced to the U.S. market in 2002 with distribution primarily in Kentucky.

Four Roses Yellow is an 80-proof Kentucky Straight Bourbon Whiskey that is also available in a 90-proof Small Batch Straight Bourbon Whiskey. In 2004 a 100-proof variety was introduced, winning the Whisky Magazine’s prestigious award “The Best American Whiskey Under 10 Years Old.”

SKYY SPIRITS RENEWS DEALS WITH CUTTY SARK

U.K.-based Berry Bros. & Rudd Spirits (BB&R Spirits) has extended its partnership with Campari-owned Skyy Spirits in the U.S., allowing Skyy to continue as the exclusive markets of BB&R’s Scotch whiskey line (includes Cutty Sark Blended Scotch whiskey and The Glenrothes Single Malt Scotch whiskies.) The partnership was first formed seven years ago.

“We continue to be impressed by Skyy’s commitment to long-term value development for our premium and luxury whiskies,” said Mike Salmon, Chief of BB&R Spirits.

While Cutty’s U.S. sales have fallen by more than 50% since the early 1990s, the brand seems to be making a bit of a comeback.

“We have a true partnership with BB&R Spirits and believe in the long-term equity locked up in the Cutty Sark brand and the potential growth of The Glenrothes in the luxury single malt segment,” said Skyy Chief Gerry Ruvo.

FRANCE LAUNCHES A “NATIONAL” WINE

France is planning to launch a national wine brand later this year as a way to get rid of some of the country’s excess wine. “Vignobles de France” will cover vins de pays wines and has already received backing from French wine authorities. What’s the benefits? Authorities hope that not only would the brand help reduce the lakes of unsold wine, but allow French winemakers to compete with foreign brands (think New World).

Vignobles de France would enable winemakers to blend vins de pays (VDP) wines from different regions under one name for the first time, giving the vintners more flexibility in addressing the needs of the market.

Spain also reportedly plans to open a national brand.

TCA CAUSED BY CORKS DROPS 80%

The Cork Quality Council issued a press release yesterday announcing that the levels of TCA found in shipments of natural corks has dropped 80% over the past 48 months. This is good news for cork lovers, but perhaps not so great for screwcaps and other non-cork enclosures which are currently fighting negative press based on a study conducted in the U.K.

Members of the New Zealand industry, the largest proponent of screwtops, are fighting against reports that the enclosure causes sulphidization - a chemical reaction caused by excess use of the preservative sulphur dioxide and a lack of oxygen. Some claim the presence of sulphur smells was a wine making fault rather than a closure problem, and "transitory unstable sulphides" in the wine, which most people would not notice, according to stuff.co.nz.

NEW WORLD WINES STANDARDIZE LABELS

New World winemakers are expected to save a lot of money after key "new world" wine-producing countries agreed to uniform standards on bottle labeling, according to The Australian.

Members of the World Wine Trade Group, an informal body of government and industry representatives from Australia, the U.S., Canada, New Zealand, Argentina, Chile and South Africa, signed a treaty yesterday to standardize label placement requirements for mandatory product information.

Existing laws in each country often require producers to print different front and back labels suitable for each export market. However, the new agreement gives each country the same information requirements, such as country of origin, product name, and alcohol content on wine labels, thus cutting out confusion.

Under the new set of rules, wineries will be able to print a standardized front label regardless of the market, saving on design, printing and production costs, although labels on the back of the bottle will still need to comply with the rules for each export market.

STRAIGHT UP BRANDS ACQUIRE MYSTERY COMPANY

Straight Up Brands, Inc. has reportedly acquired a privately held company that owns several celebrity-affiliated spirits brands, they announced today. Although negotiations continue, the agreement is expected to be signed this week followed by a quick closing.

Straight Up is keeping quiet about the mysterious company, which is set to become a wholly owned subsidiary. Who can it be? Although we have our suspicions, WSD isn’t much for playing the guessing game, but we’ll keep you posted.

David McCallen, Chief of Straight Up Brands, says: "Acquiring this company has been a high priority target for our Company for some time, as it offers very promising growth prospects both in the U.S. and internationally.”

Straight Up Brands portfolio includes Bracco Wine, Foxy Brown's sparkling wine, Storm Vodka with DJ Clue, and MoMo Mojito with Ja Rule. Bracco Wine’s sales in 2006 exceeded the 11,000 case mark and made approximately $1 million in revenue.

SPIRITS WHOLESALERS THROW POLITICAL WEIGHT IN TEXAS

Spirits wholesalers in Texas (Dallas-based Glazer’s and San Antonio-based Republic) are currently pushing for changes that would allow them to sell directly to on-premise accounts.

The law currently prohibits liquor wholesalers from selling to restaurants and bars, allowing only packaged liquor stores to do the honors. The same restriction does not apply to wine and beer.

"We think it's an inefficient and archaic system for the distribution of distilled spirits, and we're going to seek a change," said Alan Gray, a spokesman for Glazer’s, to the Dallas Morning News.

Package stores, on the other hand, claim that if wholesalers get their way, higher prices and poor service will result.

RESIDENCY REQUIREMENT TO BE TESTED UNDER GRANHOLM

While the retailer suit is taking place, Southern Wine & Spirits has filed a suit in Texas challenging that state’s residency restriction, which requires that you must live in the state for a year before getting a wholesale license. The State AG believes that Granholm, which styled state regulations as “unquestionably legitimate,” defends the law.

WHAT’S TO COME OF RETAILER DIRECT SHIPPING?

As WSD has reported in the past, out-of-state retailers are suing Texas to bring down their ban on interstate retail-to-consumer sales. The state says that cutting out distributors would violate a core part of Texas’ orderly market and tax-collecting mechanism, while retailers claim its protectionism that violates Granholm. And while the state appears to be on the side of the second-tier, the Texas wine and spirits wholesalers (Republic and Glazer’s) have filed to intervene in the case AGAINST the wishes of the state assistant AG.

The litigation has entered the discovery phase, with the AG and distributors fighting over who should discover what. This should go on until mid-2007 leading to motions for summary judgment.

Meanwhile in California, the same retailers have cut a deal with the California ABC in the form of an order that preserves the right of out-of-state retailers to ship to consumers until at least December 31, 2007. Meanwhile the retailers are trying to pass a bill to make it legal. In other words, the ABC has agreed not to enforce its own laws until the laws are changed.

Here’s what Tom Wark, president of the Specialty Wine Retailers Association said exclusively to WSD:

“While in fundamental conflict with wholesalers on the issue of Direct Shipping, members of the Specialty Wine Retailers Association recognize the important service wholesalers provide across the country. In fact, most of SWRA’s members procure their wines directly from wholesalers and they would not be able to provide the services they do without the aid of the wholesale tier.

What SWRA members are seeking is a fair and level playing field for wine sales; a playing field that benefits the consumer, retailers and the wholesalers. Not one that is tilted in one direction for the purposes of protectionism.

Retailers have shipped wine into Texas and Wineries have shipped wine to Texans legally. Yet, the wholesale tier is as strong as ever there. Retailers would like the opportunity to fill consumer demand, pay Texas taxes and do so just like Texas’ own retailers are doing now.

A serious miscalculation is made when anyone suggests retailers want to bring down the 3-tier system or that wholesalers will be hurt by allowing retailer-to-consumer transactions.

A mistake many make however is in thinking that those arguing for a fair and level playing field when it comes to wine shipments have it out for the 3 tier system.

In the case of the Specialty Wine Retailers Association all they are asking for is non-discrimination and a level playing field. For example, in Texas retailers can ship to Texans but out-of-state retailers can't. That's not fair and it's likely unconstitutional.”

SPIRITS GAIN SHARE FOR THE FIFTH YEAR

The Distilled Spirits Council (DISCUS) released its review of the U.S. spirits industry on Monday, containing nothing but good news. The title of the first slide in the DISCUS presentation was certainly indicative of how the spirits industry is doing right now: “2006 Another Good Year For the Spirits Industry.”

Not only did the market share gain continue for the fifth year (currently at 32.8%), but supplier revenues were up 6.3% reaching $17 billion. Why are things going so well? Factors such as the booming cocktail culture and trading up trends paired with creative marketing have had a big hand in growth, says DISCUS. Spirits are hip among consumers, which is nothing but good news for the industry.

Spirits industry volumes grew 3.8% in 2006, with exports up 21% YTD. Super-premium spirits brands are leading growth, jumping a whopping 17.5%, with premium brands up 5.1% and value brands flat at 0.2% (despite accounting for 42% of volume).

Super-premium vodka specifically had a large hand in driving growth last year with revenues up $236 million from 2005 and volume up 38.6%. Rum came after vodka as the second largest price product segment, with volume up 4.9% and revenues increasing $73 million.

Other fast-growing categories include premium vodka, cordials and high-end bourbon.

2007 is expected to report revenue growth similar to 2006 as volume growth moderates but the trend to price/mix growth accelerates. Many in the industry believe the predicted volume growth slowdown has more to do with the timing of shipments, rather than a real halt in liquor sales.

“LAND OF THE WOLF” LAUNCHES NEXT MONTH

Bacardi is set to launch a, international marketing push, titled “Land of the Wolf,” behind vodka brand Eristoff, currently the best-selling vodka in France, Austria and Portugal.

The global ad campaign, which includes TV, movie and print executions, will launch in selected international markets next month.

GREY GOOSE PEARS WITH FRUITY FLAVORS

Bacardi-owned Grey Goose plans to release the first super-premium pear-flavored vodka in the U.S. next month. “La Poire” marks the first flavor to be released from the Grey Goose line since 2003.

PERNOD REMAINS “QUITE POSITIVE” FOR THE FUTURE

Pernod Ricard went beyond analysts’ predictions today with the release of its first half earnings, posting a 7.3% rise in revenue from EUR3.27 billion last year to EUR.3.5 billion for the July-December period. The French company now expects the full year sales organic growth to rise 6%.

Over the first half, the 15 strategic brands, which include Ballantine’s Scotch and Martell Cognac, grew by 9% in volume and 14% in sales, while all brands reported strong growth. Among them, Stolichnaya sales grew 29%, Ballantine's 22%, Martell's 17%, Malibu's by 10%, Havana Club's 14%, Beefeater's 13% and Jameson's by 11%.

In the Americas region, sales in the first half rose 10% with an organic growth of 14%. Pernod reported that sales were “dynamic” in the U.S. particularly, posting organic growth at 12.75 thanks to blockbuster brands such as Stolichnaya, Jameson, The Glenlivet, Malibu, Mumm Napa and Perrier-Jouët. The current demands for premium and luxury spirits brands also played a hand in boosting Pernod in the U.S., said Chief Patrick Ricard.

Champagne sales failed to boost Pernod’s overall wine performance, however, which fell 1.1%. Jacob’s Creek also slid, by 3% due to the challenging conditions in the U.K. wine market.

"We did not feel any slowdown in Europe or the U.S., so we remain quite positive for the future," said managing director Pierre Pringuet this morning in London.

He went on to say that Pernod benefited from its takeover of Allied Domecq in late 2005, and the U.S. wholesaler changes in early 2006. What to do with all the success? Win the race to purchase the world’s most sought after brand, of course – Absolut. Pringuet further confirmed that Pernod was interested in buying Swedish state-owned Absolut when it goes for sale, while talks on acquiring the Stolichnaya brand outside Russia continue

PERNOD GIVES BEEFEATER A FACELIFT. In other news, Pernod USA plans to launch a “revitalization plan” for Beefeater Gin, which will include new packaging and advertising campaign, entitled “Forever London.”

This will mark the first set of innovations by Pernod since purchasing Beefeater from Allied in 2005.

"Pernod Ricard is known for its expertise in revitalizing acquired brands, and we are confident that our new approach to Beefeater will leverage the brand's latent equity and drive growth," said Joanne Kletecka, vp Beefeater Gin, Pernod USA

INTERVIEW: BOB SPUCK OF WINESTYLES

WSD had the chance to sit down with Bob Spuck, president and CEO of WineStyles, the largest national wine franchise in the country which recently opened its 100th store. WineStyles was named the 6th best new franchise in 2007 by Entrepreneur magazine in its annual "Franchise 500" issue, and has built a business on “demystifying wine.” So let’s take a look at what Bob had to say.


Megan Haverkorn: In your press release, you describe yourself as a “national franchise demystifying the wine shopping experience.” How, exactly, do you do that?

Bob Spuck: The truth is more people are drinking wine and it seems to be the “in” thing to do, like going to Starbucks and things like that. About 70% of the wines in our stores are usually wines you can’t get someplace else, like Total Wine or Speck’s or ABC. We have a percentage of our wines that are private label, where we go to the winery, own our own label and distribute it nationwide. Some of our wines are negotiated exclusively through the distributors in the local area. So people come to our stores and find a wine that they enjoy, but can’t really get it anywhere else.

The key to our system is our set up. We display our wines by what we call “style,” or in other terms, taste categories, rather than by varietal or by country and things like that. If you know what kind of wine you like or the person you are buying the wine for likes, we take you to a section of the store—it might be bold, it might be mellow, it might be rich—and once you decide that, a Cabernet or a Chardonnay might be in two different taste categories, but it’s the same varietal.

We find it very easy. Each one of our wines has a little description next to it as to where the wine came from, what it’s about, and that kind of thing. Usually there’s a little fun to the description, and the employees are knowledgeable about the wines they have in the store. And of course it’s a continually changing process because wine is a disappearing asset. So our job at corporate is of course to build our brand and to give the person coming through the door an enjoyable experience and enjoy a good wine at a good price that’s going to fit their taste category.

MH: What are your most popular brands?

BS: Well most of the brands we sell are private label because really it’s no different than non-private labels. We’ll go to a winery, like St. Supéry, who makes a great Sauvignon Blanc, and we’ll take that and sell it under our Maxwell Creek brand. It’s the same thing, and it sell for two dollars less. So our best brands are brands that are our own. We don’t try to sell brands, we try to sell wine styles as the brand and people have faith in our system and the wines we’re able to acquire.

Now, we do have about 30% of the wines in our store that we call comfort brands, and these are brands that are available in other places, depending on the neighborhood. Usually available at market price, they’re meant to make our customers feel confident and comfortable because they are familiar with those brands. But we’re not going to have a Kendall Jackson or Yellow Tail or any of those commercial brands that are sold at Costco. That’s not who we are.

MH: So what, exactly, is the difference between you guys and other retailers, Costco for example?

BS: Most of our wines are from small, esoteric, unique wineries from all over the world, of which there are millions. I mean, in total they dwarf the big wineries, but it seems like Constellation and the other big companies dominate the market through their distributors.

MH: What demographic do you think is one of the most influential right now in the wine industry?

BS: Actually the age is getting younger but it’s nowhere near the high percentage of people in the 35-65 range. Our demographics are 65% women, probably educated, have some college, have discretionary income, live in a neighborhood of a certain income level—dual household income level. The taste categories are pretty much the same, where 40% of our sales are bold, especially with men. With men alone, probably 75% are bold.

Our stores are event driven and wine club driven, meaning that people more or less belong to our store and they enjoy coming on a Thursday or a Tuesday. We’ll have Merrill Lynch or somebody in there giving little seminars, or having wine tastings, or birthday parties. We also have chefs from the area come in and share their experience; they promote their restaurant we promote the wine that they suggest.


MH: Sounds like a lot of fun.

BS: Yeah, and that’s what it’s about, fun. That’s what wine is supposed to be.

MH: Why do you think wine is growing so fast right now? What’s changed?

BS: Because it tastes good. It’s interesting. We survey people leaving our stores, and we ask them, ‘What’s the best, what’s the number one reason, what’s the best thing about wine?’ Most people usually say ‘taste,’ but of course the number one answer is that it makes a great gift.

I think it has a sophistication level as people’s communication and education levels rise. It has the same connotation as Starbuck’s. Why do we go pay 3 bucks for a cup of coffee? Because we want to be around other people who are like us, and we want to hang out. People that come into our stores to enjoy our wine events and things like that are looking for people of the same demeanor and the same demographic.

MH: How are retailers specifically playing a part in that growth, specifically WineStyles?

BS: Well, we have small stores. Our stores have about 140 wines in them. They have a wine clubs, they have the events, they have all the things they do to get the people in the neighborhood. Some of our stores have 500 wine club members where the people buy two bottles of wine. Since most people drink more than two bottles of wine, they keep coming back to their store and our retailers work with the company and the distributors and they adjust their inventory to what’s appropriate for their neighborhood.

As retailers, we have marketing programs, we have email programs and we have gift baskets.

MH: What is your relationship like with the other branches of the three tier system?

BS: I can tell you what it used to be and I can tell you what it is. When we first started WineStyles and we had really no stores, they kind of viewed our business as a folly. They didn’t believe that it could be done, especially with competition from Total Wines and Speck’s and all those huge depot type deals. We never believed that was our market.

When they open those big stores like Total Wines and so on, it certainly disrupts the market, but they can’t be everywhere. They can only open one store and can’t open another one for 20 miles, so we fill in all the area in-between and generate convenience, choice, and fun. And that’s really what we feel people are going for, what people want to do.

So we started out with six distributors around the country in different states, and they were very leery about bringing wine in for WineStyles because once they buy those brands, they own them. But they bought into our concept. Either I’m a good salesman or they saw the light or whatever. Now that we have 100 stores and we’ll probably buy $25 million worth of wine next year, it’s a completely different story and everybody beginning with Southern Wine & Spirits has been trying to make relationships with us because we do pretty good business and we pay our bills.

MH: Do you have a history in the wine industry?

BS: No, I don’t. I’m a franchisor. I’ve built many companies. I’ve been in franchising all of my life. I look for things that people want and built different cutting edge concepts and so on. But the people working for me have tremendous experience; people that have been distributors, people that buy the wine and people out in the field.

MH: Where do you see WineStyles going in the future?

BS: Well, I’ll take my crystal ball out. We’re selling—we use the word awarding— we are awarding 6 to 10 new franchises a month. We wish everyday was December. I expect us to probably open between 50 to 100 new stores every year. And we will continue to be international as we already are.

It’s just a different way of fulfilling the needs of the customer. We see Total [Wines] and these guys come into markets and watch the liquor stores fold and the different independents fold. I think our concept provides a need and I think that’s what selling is all about: providing a solution to somebody’s need. People seem to enjoy the atmosphere of the store.

MCGUIGAN WINES LOSES EXECUTIVE, GAINS ANOTHER

Lisa McGuigan has stepped down as global marketing director at McGuigan Simeon Wines Ltd. Lisa, daughter of founder Brian McGuigan, will continue to work for the company by managing Tempus Two, according to local reports.

The company has also reportedly appointed Michele Anderson to the new position of general manager, North America, as it looks to boost sales in the oh-so-important export market.

U.S. WINERIES REACH A NEW HIGH IN UNEXPECTED PLACES

The U.S. wine industry is showing no signs of slowing down, not only in California, but across the country and in Canada too. With the addition of 465 wineries in 2006, California showed the nation's largest increase in new wineries during the last year, according to the 2007 Wines & Vines Directory/Buyer's Guide.

Washington gained 65 new wineries, up 22% in 2006, while Oregon ranked the third-largest growth, adding 49 new wineries for an increase of 22%. Texas (up 32%), Colorado (46%), New York (12%), Virginia (24%), North Carolina (44%), Pennsylvania (22%) and Michigan (26%) made up the rest of the top ten list.

With 2,116 wineries, California leads the nation in the total number of wineries, followed by Washington (365), Oregon (270), New York (199) and Virginia (105). Colorado replaced Missouri in the No. 10 spot this year, after jumping from 48 wineries to 70.

The Top 5 states that showed the greatest increases in new wineries by percentage include: South Carolina (75% increase), Hawaii (67% increase), Nevada (67% increase), Oklahoma (48% increase) and Colorado (46% increase).

Though the number of new wineries continues to skyrocket, the wineries themselves are often small, boutique operations. Approximately half of all North American wineries have an annual production of 15,000 cases or less, according to Wines & Vines

3 BLIND MOOSE JETS AHEAD, LITERALLY

JetBlue Airways’ has added 3 Blind Moose merlot and chardonnay to all flights beginning February 1.

Constellation owns 3 Blind Moose through its subsidiary, Centerra Wine Co. – a popular-priced and premium wine producer.

3 BLIND MOOSE JETS AHEAD, LITERALLY

JetBlue Airways’ has added 3 Blind Moose merlot and chardonnay to all flights beginning February 1.

Constellation owns 3 Blind Moose through its subsidiary, Centerra Wine Co. – a popular-priced and premium wine producer.

3 BLIND MOOSE JETS AHEAD, LITERALLY

JetBlue Airways’ has added 3 Blind Moose merlot and chardonnay to all flights beginning February 1.

Constellation owns 3 Blind Moose through its subsidiary, Centerra Wine Co. – a popular-priced and premium wine producer.

CHAMARRE ARRIVES IN THE U.S.

Opéra Vins et Spiritueux (OVS), one of France’s largest wine cooperatives, has opened a U.S. affiliate in Miami, The Other Wines and Spirits Company (OWS). Integrated last summer, OWS is now in the process of launching its first wine brand, Chamarré.

Slated to be available in about 20 states by this spring, Chamarré includes Grande Reserve, AOC and Duo Varietal lines, with the first two retailing for roughly $12 per 750-ml. and the latter priced at $9.

Chamarré has been present on U.K. shelves for about six months, and OVS is targeting around 100,000 cases for its first year on the market in Britain.

French wine sales in the U.S. were up 2% to 8.6 million nine-liter cases in 2005 after two straight years of declines, but their market share has steadily eroded from 22% to 12% since 2000. That loss coincides with the rise of New World wines in the U.S., and perhaps also has something to do with anti-French sentiment once the U.S. went to war.

ARKANSAS ALCOHOL BOARD WELCOMES NEW DIRECTOR

There’s been quite a bit of movement lately in state alcohol regulation boards – first Pennsylvania, and now Arkansas. Robert Moore, Director of the Arkansas Alcoholic Beverage Control Division was appointed by then Arkansas Gov. Bill Clinton January in 1987, has resigned his position, effective January 8, 2007.

Governor elect Mike Beebe has appointed Michael W. Langley as Robert's replacement. Langley, an attorney from the Northeast Arkansas city of Paragould, began work on January 16, 2007.

NATIONAL DISTRIBUTING EXPANDS

National Distributing Company (NDC) was recently appointed as the exclusive distributor for Jackson Family Wines in Colorado, the company announced last week. In addition, NDC was appointed the exclusive distributor for both Hangar One vodka and Codorniu sparkling wine in South Carolina.

Currently, NDC distributes the Jackson Family Wines portfolio in New Mexico, New York, Maryland and the District of Columbia, and also represents Hangar One in Florida, Colorado and Ohio.

With the addition of Codorniu, NDC will represent the entire Classic Wines of California brand portfolio in the South Carolina, Florida, Georgia, Virginia, Colorado and New Mexico markets.

NDC and Republic are scheduled to complete their merger in 2007, creating a new entity, Republic National Distributing Company, which will span to 22 states and the District of Columbia.

BROWN-FORMAN CLOSES TEQUILA DEAL

Brown-Forman announced yesterday that it has completed its acquisition of the Mexico-based Casa Herradura. The original purchase price was set at $876 million, but has since been lowered to $776 million.

"We are very excited about this acquisition which gives us two strong brands competing at the super-premium and premium levels in the world's largest tequila markets - the U.S. and Mexico," said chief Paul Varga.

U.S. WINE IN ALL ITS GLORY

The U.S. wine industry has made phenomenal headway in recent years, leading it to become the fastest growing sector in the alcohol beverage industry. By 2010, the U.S. is expected to become the world's largest wine consumer, overtaking Italy and France.

So, amid fear of bulk imports, falling grape prices, gluts and global warming, we think the U.S. wine industry has a very bright future indeed, and here’s why:

A GLASS OF WINE A DAY KEEPS THE DOCTOR AWAY. The health news just keeps piling up. It seems like almost every time I check my email there is a new report on the health benefits of red wine, which is nothing but good, no great, news for the industry. Instead of feeling guilty for indulging in a glass of red wine, consumers feel like they are doing something good for themselves – and as it turns out, they are.

According to one of the latest studies concerning mice and a substance that’s been in the news a lot lately (resveratrol), red wine just might be the fountain of youth. Scientists found that not only does resveratrol reverse the effects of obesity in mice and make them live longer, but it also increases their endurance as well. Red wine has also shown to reduce the risk of heart attack for individuals with hypertension.

But what about red wine's white-colored cousin that is so often left out where health is concerned? Some scientists are now saying they have found evidence that the pulp of grapes are just as heart-healthy in laboratory experiments as the skin, which means white wine may be just as healthy as red.

While it’s all great news, it is still “blatantly against the law for any alcoholic beverage producers to make any healthy claim regardless of the facts or the accuracy,” said Michael Mondavi to the New York Times in November. “We have to sit on our hands and wait for others to pick up the story.”

To avoid breeching any regulations, trade organizations within the industry advise their members to keep mum on the whole health factor, and to rely on “others” to get the message across. [Ed. Note: We hear you loud and clear.]

EYE-CATCHING LABELS ATTRACT NEW DRINKERS. Labels are now at the forefront of importance where a lot of wines are concerned, almost replacing what’s inside the bottle. As long as critter brands and the new adventure labels continue to make wine (gasp) interesting and accessible to consumers, wine will serve as an accessory that symbolizes consumers’ tastes, interests, social status and monetary means. This is good news.

But where there’s a trend, there’s a backlash of people looking to differentiate themselves. Not everyone wants to be associated with adventure labels, which is good for the rest of the industry. Those individuals who turn their noses up at the oh-so-loosely dubbed “critter label” group because, say, it’s a little too mainstream for their taste, will look perhaps to a less-known or more expensive brand they can impress their friends with. Case in point? Critters are good for the industry.

As long as we’re on the subject of consumers using wine as a status symbol, we have to mention the modern trend of trading-up. In the olden days, (as in a couple of years ago) most consumers bought a $10 bottle of wine when they were looking to impress. Now, $15 is the new $10 – and we can only expect it to go up. As a result, consumers are moving away from low-end wines, which can be bad for some companies like Constellation or E&J Gallo, but great for boutiques.

According to the latest data from ACNielsen, sales of wines priced $15 and above grew 41% between January 2004 and October 2006. Sales of wines priced between $10 and $14.99 have grown by 28%. In the $8-to-$9.99 category, sales have increased 18%.

At the same time, sales of wines priced below $6 are dropping. In particular, sales of wines priced under $3 fell 15% between January 2004 and October 2006.

TASTES ARE CHANGING. As much as some in the industry might hate in, pinot noir is in and merlot is out. Everyone wants to get a taste of the oh-so-delicious wine that Miles refers to over and over again in the 2004 hit Sideways. The result? Everyone’s making pinot, and selling it cheaply.

Younger drinkers in particular, craving intense, big-bodied wines, are a large part of the reason pinot sales have increased 120% in the last two years, according to ACNielsen. Some industry insiders openly lament the way that pinots are changing, but let’s face it – the average consumer loves it.

Not only is it widely popular in its own right, but we believe the pinot craze has had a hand in influencing consumers to try something new, such as rosé, reisling and zinfandel.

MILLENNIALS DRIVING CONSUMPTION. Young people love wine. This is great news for winemakers in a society obsessed with youth, where 20-somethings are often the trendsetters.

Keeping brands innovative is key to maintaining the interest of such an important group with such a short attention span. [Ed. Note: I can rightfully attest to this as I fit somewhere in the category]. Wine companies are realizing the importance of millennials more and more, leading some bigwigs to open a branch entirely designed to market to that group. Recently, The Wine Group has introduced Underdog Wine Merchants, and Kendall-Jackson has unveiled White Rocket.

IT’S A WRAP. Of course these are just a few of the reasons wine is doing so well right now, but we consider them at the forefront. Any thoughts, comments or insights are greatly appreciated and can be sent to megan@beernet.com.

RED WINE SAVES LIVES

And the good health news just keeps rolling in. A study by Harvard School of Public Health shows that men with hypertension have a 30% lower risk of suffering a heart attack if they drink a glass or two of wine daily.

Compared to non-drinkers, men who had one to two and a half glasses of wine per day had a 30% less chance of having a heart attack, but those who were very light drinkers had about the same results as non-drinkers.

REMY COINTREAU SAVED BY CHAMPAGNE

French drinks company Remy Cointreau’s third quarter sales were up 0.2% at EUR610.5 million.

Sales growth of 3.7% in the company's own-brand products was counter-balanced by a 19% decline in sales growth for partner-brand products, which Remy Cointreau distributes for other companies.

“The_Famous_Grouse and The_Macallan Scotch whiskies grew in the US as did California wines,” the company stated. “The beginning of Imperia vodka distribution has not yet offset the cessation of the contracts for wine distribution.”

The strongest sales growth came from the group's Champagne division, up 5.3%, driven by Piper Heidsieck and Charles Heidsieck.

The company’s cognac division sales rose 4.2%, thanks to the U.S. and Asia, alone with high product mix. The Liqueurs & Spirits division's sales rose 1.9% with sales growth from Cointreau, particularly in the U.S., France, Benelux and Japan, the group said.

IS REMY FOR SALE? Meanwhile, rumors that Diageo may pull out of its j-v with LVMH in order to acquire Remy remain unsubstantiated. Diageo currently owns 34% of LVMH’s wine and spirits unit (Moet Hennessy), and is able to sell the stake to LVMH at a six months notice.

Another question – is Remy even for sale? – also remains unanswered. However, many people in the industry translate Remy’s departure from the Maxxium deal as a clue that the company will eventually go for sale.

TRUMP VODKA GOES INTERNATIONAL

Drinks Americas is now shipping Trump Super Premium Vodka to Ontario and Quebec, and is expected to expand to other duty free shops in Europe and Asia, as well as high-end cruise lines.

"The Trump trademark is a globally recognized brand and a perfect fit for the duty free market, a luxury goods business,” said Patrick Kenny, president and CEO.

FUTURE BRANDS EXTENDS DEAL WITH GLAZER’S

Future Brands, the U.S. distribution alliance between Beam Global and Absolut, has extended its existing arrangement with Glazer’s in Texas and Louisiana, according to Marvin Shanken Trade News. The new deal is long-term, although specific details were not released.

DON SEBASTIANI “SURPRISED” AT RECENT SUCCESS

Don Sebastiani & Sons saw sales increase 30% in 2006 from the previous year, the company reported yesterday. Shipments reached a record 1.75 million cases last year, easily beating the 1 million cases the company sold in 2004.

Sebastiani’s oldest and fastest growing brand, Pepperwood Grove, grew 42% in sales, while the Aquinas Napa Valley brand jumped 34%.

Sales of Smoking Loon, the company’s million-case brand, rose 24%, while the company’s other well-known brands (including SKN and Mia’s Playground) saw growth in the double-digits.

In addition, 2006 saw the launch of four new Don & Sons brands – Plungerhead, Hey Mambo, The White Knight, and Gino da Pinot, all of which became part of winery’s The Other Guys sales portfolio.

Says Don Sebastiani, Jr., the company’s marketing director (and we particularly like this quote):

“We’re flattered, and sometimes surprised, that our brands are doing as well as they are.”

Sebastiani is a Sonoma Valley-based negociant winery and was founded in 2001.

Don Sebastiani & Sons Finishes 2006 with 30% Growth

SAZERAC LAUNCHES GREATVODKA.COM

Described as a “one-stop shop for all things vodka,” The Sazerac Company has launched a new website (greatvodka.com) to teach consumers all about the white spirit.