Champagne and Cognac Fair Well for Remy
The company reported that all group brands did well in the third quarter, with Asia and Europe as the growth drivers. Organic sales of cognac grew 8.6%, liqueur/spirits were up 2.8% and champagne jumped 15.6%. Partner brands grew 6% in all.
“Consumer demand [of cognac] in the US remained good in a business environment marked by caution,” said the company.
Melissa Earlam of UBS said in a research note that while cognac demand remains solid in the U.S., it fell short in the third quarter due in part to “some US wholesaler de-stocking due to overall market concern (€2-3m of sales) though depletions held up.” De-stocking of Cointreau in the U.S. also caused lighter sales for spirits and liqueurs.
Remy had more success with champagne and partner brands in the U.S. The performances of Piper-Heidsieck and Charles Heidsieck did particularly well, with Europe and the U.S. as “the main growth drivers.” Partner brands including Russian Standard vodka and Scotch whiskies resulted in “excellent” growth in the U.S.
WINE.COM LOSES ADVERTISERS
Although the year is still young, we’ve already seen a lot of activity from online retailers. As you know, Wine.com has met with a lot of criticism for “policing” its competition and effectively turning them in to state regulators for illegal shipping practices. As a result, ClassicWines.com and other advertisers have “removed all advertising for Wine.com from its popular online guide.” Apparently, uproar over the situation isn’t quieting down anytime soon.
"It is far easier to sell pornography DVD's or missile parts online than bottles of wine, due to a myriad of antiquated and at times conflicting laws and regulations that date back to Prohibition" said Mark Spangler, VP of ClassicWines.com, in a press release.
With that said, online retailers are working to make direct shipping easier. The Specialty Wine Retailers (SWRA) had something of a victory recently in Texas when a judge ruled that Granholm applies to retailers, as well as wineries, and dismissed wholesalers’ claims that their services protect minors. It was not a full victory, however, because the judge also ruled that the state of Texas has the right to force all retailers to buy wine through Texas wholesalers before shipping it directly to Texas residents. (To read our coverage, click here).
As you can see, online retailers think Wine.com is setting them back in their efforts to gain more shipping rights.
“We think Wine.com is choosing the wrong adversary and instead of picking on industry competitors, they should join the industry and seek to overturn the very laws that limit us all collectively," said Mark Shay, founder of ClassicWines.com.
To read our interview with Craig Wolf of the WSWA and Tom Wark of the SWRA, click here.
DIAGEO MAY HAVE THE LAST LAUGH
Diageo has received some rather downtrodden coverage lately as analysts warn that the company may not be able to meet its 2008 guidance. However, the Lehman Brothers has upgraded Diageo from equal weight to underweight and raised its price target.
“We see strong defensive characteristics in uncertain markets. We expect the company to meet its 2008 guidance of 9% earnings growth.”
The firm believes Diageo would do especially well if it were to merge with a brewer. We hear that Scottish and Newcastle is on the market...
On a serious note, we’ve heard from several Diageo wholesalers that everything seems dandy in certain profitable markets on the east coast. Apparently P. Diddy has done well for the Ciroc Vodka brand and volumes are majorly on the rise.
“A ROSE BY ANY OTHER NAME...”
Primo Amore, a new line of Italian wines by Casa Vinicola Zonin S.p.A., Italy’s largest privately held wine company, has hit American shelves. The wines are topped with screwcaps, feature “easy to read labels, colorful packaging and affordable pricing ($6.99-$7.99).” The company describes Primo Amore as “perfect for those who are just getting to know wine or who are discouraged by complicated or pretentious labels.” Sound familiar? It appears that Primo is going after the consumer-friendly, Yellow Tail strategy. Affordable, approachable and probably appeals to a wide range of palates. Instead of a cuddly animal on its label, Primo features a red rose and cleverly plays off Shakespeare’s Romeo and Juliet with Primo Amore Romeo (red) and Primo Amore Juliet (white). Perhaps the Old World isn’t so set in its ways after all.
A RECESSION IN THE WORKS
Goldman Sachs indicated yesterday that a “mild” recession may hit the U.S. in the middle of 2008. The recession will cause consumers to slow their spending and shop in low-price retail outlets like Wal-Mart and Costco. Great news for them, perhaps not such good news for organic retailers and other higher end outlets. What does this mean for us? Some trading down seems inevitable, but we have high hopes for the wine and spirits industry. The past few years have been good to us and a little recession won’t hold us back.
WSD BRIEFS:
WE REGRET TO INFORM YOU that an explosion at NSW Hunter Valley winery in Australia killed owner and chief winemaker Trevor Drayton and another man, understood to be a welding contractor, reports the AAP. Assistant winemaker William Rikard-Bell, 27, survived the blast, but suffered serious burns to up to 80% of his body. Our thoughts and prayers are with their friends and families.
SILICON VALLEY BANK named Harry Kellogg, the company's vice chairman, to oversee its Wine Division and support its growth plans. Kellogg joins Bill Stevens, Wine Division manager, and Rob McMillan, Wine Division founder as part of the group's management team.
ABSOLUT has joined with Live Earth to present the brand’s first national sales and marketing platform, titled Absolut Global Cooling. Playing off Absolut’s advertising campaign, “In an Absolut World” the program features other “absolutes” that center around the environment. Preaching the good word on environmental issues is becoming increasingly important.
CONTROVERSIAL BOTTLE SHOCK premiers tomorrow night at the Sundance Film Festival. As you’ll recall, the movie portrays the legendary 1976 Paris wine tasting, but individuals who the movie is based on say it’s inaccurate. Click here to read great coverage of the controversy.
LUXCO is adding a new De Agave Tequila Premium Margarita to its Salvador’s RTD portfolio. Created and bottled in Mexico, De Agave is available for $11.99 for the 750ml size and $17.99 for the 1.75 liter.
AVERNA is launching three new Sambucas – traditional, licorice and citrus – and Averna’s own Limoni, a lemon liqueur. Averna is imported by Domaine Select Wine Estates.
Until tomorrow, Megan
“I always keep a supply of stimulant handy in case I see a snake--which I also keep handy.”
W. C. Fields
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
“Consumer demand [of cognac] in the US remained good in a business environment marked by caution,” said the company.
Melissa Earlam of UBS said in a research note that while cognac demand remains solid in the U.S., it fell short in the third quarter due in part to “some US wholesaler de-stocking due to overall market concern (€2-3m of sales) though depletions held up.” De-stocking of Cointreau in the U.S. also caused lighter sales for spirits and liqueurs.
Remy had more success with champagne and partner brands in the U.S. The performances of Piper-Heidsieck and Charles Heidsieck did particularly well, with Europe and the U.S. as “the main growth drivers.” Partner brands including Russian Standard vodka and Scotch whiskies resulted in “excellent” growth in the U.S.
WINE.COM LOSES ADVERTISERS
Although the year is still young, we’ve already seen a lot of activity from online retailers. As you know, Wine.com has met with a lot of criticism for “policing” its competition and effectively turning them in to state regulators for illegal shipping practices. As a result, ClassicWines.com and other advertisers have “removed all advertising for Wine.com from its popular online guide.” Apparently, uproar over the situation isn’t quieting down anytime soon.
"It is far easier to sell pornography DVD's or missile parts online than bottles of wine, due to a myriad of antiquated and at times conflicting laws and regulations that date back to Prohibition" said Mark Spangler, VP of ClassicWines.com, in a press release.
With that said, online retailers are working to make direct shipping easier. The Specialty Wine Retailers (SWRA) had something of a victory recently in Texas when a judge ruled that Granholm applies to retailers, as well as wineries, and dismissed wholesalers’ claims that their services protect minors. It was not a full victory, however, because the judge also ruled that the state of Texas has the right to force all retailers to buy wine through Texas wholesalers before shipping it directly to Texas residents. (To read our coverage, click here).
As you can see, online retailers think Wine.com is setting them back in their efforts to gain more shipping rights.
“We think Wine.com is choosing the wrong adversary and instead of picking on industry competitors, they should join the industry and seek to overturn the very laws that limit us all collectively," said Mark Shay, founder of ClassicWines.com.
To read our interview with Craig Wolf of the WSWA and Tom Wark of the SWRA, click here.
DIAGEO MAY HAVE THE LAST LAUGH
Diageo has received some rather downtrodden coverage lately as analysts warn that the company may not be able to meet its 2008 guidance. However, the Lehman Brothers has upgraded Diageo from equal weight to underweight and raised its price target.
“We see strong defensive characteristics in uncertain markets. We expect the company to meet its 2008 guidance of 9% earnings growth.”
The firm believes Diageo would do especially well if it were to merge with a brewer. We hear that Scottish and Newcastle is on the market...
On a serious note, we’ve heard from several Diageo wholesalers that everything seems dandy in certain profitable markets on the east coast. Apparently P. Diddy has done well for the Ciroc Vodka brand and volumes are majorly on the rise.
“A ROSE BY ANY OTHER NAME...”
Primo Amore, a new line of Italian wines by Casa Vinicola Zonin S.p.A., Italy’s largest privately held wine company, has hit American shelves. The wines are topped with screwcaps, feature “easy to read labels, colorful packaging and affordable pricing ($6.99-$7.99).” The company describes Primo Amore as “perfect for those who are just getting to know wine or who are discouraged by complicated or pretentious labels.” Sound familiar? It appears that Primo is going after the consumer-friendly, Yellow Tail strategy. Affordable, approachable and probably appeals to a wide range of palates. Instead of a cuddly animal on its label, Primo features a red rose and cleverly plays off Shakespeare’s Romeo and Juliet with Primo Amore Romeo (red) and Primo Amore Juliet (white). Perhaps the Old World isn’t so set in its ways after all.
A RECESSION IN THE WORKS
Goldman Sachs indicated yesterday that a “mild” recession may hit the U.S. in the middle of 2008. The recession will cause consumers to slow their spending and shop in low-price retail outlets like Wal-Mart and Costco. Great news for them, perhaps not such good news for organic retailers and other higher end outlets. What does this mean for us? Some trading down seems inevitable, but we have high hopes for the wine and spirits industry. The past few years have been good to us and a little recession won’t hold us back.
WSD BRIEFS:
WE REGRET TO INFORM YOU that an explosion at NSW Hunter Valley winery in Australia killed owner and chief winemaker Trevor Drayton and another man, understood to be a welding contractor, reports the AAP. Assistant winemaker William Rikard-Bell, 27, survived the blast, but suffered serious burns to up to 80% of his body. Our thoughts and prayers are with their friends and families.
SILICON VALLEY BANK named Harry Kellogg, the company's vice chairman, to oversee its Wine Division and support its growth plans. Kellogg joins Bill Stevens, Wine Division manager, and Rob McMillan, Wine Division founder as part of the group's management team.
ABSOLUT has joined with Live Earth to present the brand’s first national sales and marketing platform, titled Absolut Global Cooling. Playing off Absolut’s advertising campaign, “In an Absolut World” the program features other “absolutes” that center around the environment. Preaching the good word on environmental issues is becoming increasingly important.
CONTROVERSIAL BOTTLE SHOCK premiers tomorrow night at the Sundance Film Festival. As you’ll recall, the movie portrays the legendary 1976 Paris wine tasting, but individuals who the movie is based on say it’s inaccurate. Click here to read great coverage of the controversy.
LUXCO is adding a new De Agave Tequila Premium Margarita to its Salvador’s RTD portfolio. Created and bottled in Mexico, De Agave is available for $11.99 for the 750ml size and $17.99 for the 1.75 liter.
AVERNA is launching three new Sambucas – traditional, licorice and citrus – and Averna’s own Limoni, a lemon liqueur. Averna is imported by Domaine Select Wine Estates.
Until tomorrow, Megan
“I always keep a supply of stimulant handy in case I see a snake--which I also keep handy.”
W. C. Fields
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
posted at 2:42 PM
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