Absolut has Record Year in 2007
Vin & Sprit is reporting that 2007 was the best year ever for Absolut, as the Absolut Spirits division enjoyed a “big increase” in sales for the third consecutive year. During the year, total sales of Absolut increased by 9% to an impressive 96,579,000 liters.
More than 5 million nine-liter cases of Absolut were sold in its largest market, the U.S., for the first time, while sales to the trade increased by 4% in fiscal 2007. Since 2006, Absolut has managed to sell more than one in two bottles outside the U.S., making it an increasingly global brand.
V&S Group ceo Bengt Baron said increased sales of Absolut in the US led to a somewhat higher market share in the market in 2007. Outside of the United States, sales saw double-digit percentage growth on most prioritized markets.
As you’ll recall, the new advertising campaign, “In an ABSOLUT World”, was launched in 2007. Absolut also unveiled Absolut Pears, Absolut New Orleans and Absolut 100, which the company said “were very well received.” The $2 million sales profit from Absolut New Orleans was donated for the reconstruction work.
“We focus on around ten key markets, work innovatively with the product portfolio and marketing and invest in the brand in the long term. Our consistent strategy, combined with tough cost control, has made possible both a good profit and much increased market investments,” says Ketil Eriksen, President of V&S Absolut Spirits.
V&S reportedly does not expect Absolut or the premium vodka market to be effected much by the slowing U.S. economy, unless a major downturn takes place.
Cruzan Rum was also responsible for growing V&S’ spirits segment. Volume of Cruzan sold grew by as much as 19% in 2007, primarily in the USA. Cruzan also introduced a new flavor, Cruzan Black Cherry, in the US market.
Now, for a look at the rest of the company.
“The fourth quarter was extremely successful with operating profit up 17%. The main contributing factors are continued strong development for Absolut Vodka and very positive developments in Sweden and Poland,” says Bengt Baron, ceo of V&S Group.
Net sales remained virtually unchanged in 2007. For comparable units the increase was 7%. Sales volume increased to 26.9 million 9-litre cases. For the fourth quarter net sales amounted to SEK 2,964(2,974) million and sales volume was up 5%.
“Our efforts to focus V&S are continuing to yield results. A focus on prioritized markets, prioritized products and lower costs have contributed to our strong figures,” says Bengt Baron.
TOP THEMES AT THE UNIFIED WINE & GRAPE SYMPOSIUM
Let’s take a look at some of the major themes at this year’s Unified Wine & Grape Symposium.
1. Imports are gaining
As Americans are drinking more wine and surpassing countries such as Italy in consumption, imports are looking to profit. (The U.S. is second only to France as the world’s largest wine drinking nation.) During a time when the dollar is weak, consumers are reportedly still willing to spend an extra buck for an imported bottle, which means imports are officially here to stay. One of the main drivers of the trend may be millennials who are more likely to experiment with imports than their baby boomer parents.
The top performing wine brands of 2007 in terms of growth include Ste. Michelle Wine Estates, Barefoot, Clos du Bois and Diageo Chateau & Estate wines.
2. Catching up with overproduction
Now that U.S. consumption is on the rise, local producers have a chance to make a comeback. Years of oversupply, influx of imports and a slowing economy has caused grape prices to dwindle. But now that demand is on the rise and imports are getting increasingly expensive, growers could soon see a return to sustainable prices.
Nat DiBuduo of the Allied Grape Growers said there is a slight shortage of varieties like Chardonnay and Pinot Noir, and recommended that growers plant new vineyards for the first time in ten years. He warned, however, that farmers only begin planting new vineyards if they have a solid winery contract.
3. The glut is drying up
Several factors are helping the worldwide glut to shrink. A drought in Australia, smaller California crops in the past couple of years and new EU reforms are helping drain the oversupply of wine. This can be a good or bad thing, depending on how you look at it. Mainly, prices might go up, which is good depending on who you are.
WSD BRIEFS:
INFINIUM SPIRITS ceo Jeff Underwood has appointed Bill Anderson as president of the Aliso Viejo, California-based company. Bill has over 30 years of experience in the spirits industry primarily with Bacardi USA, Inc. Infinium’s portfolio includes Seagrams Vodka and Corralejo Tequilas.
GLAZER’S has hired industry veteran Dolph Parro as senior vp, wine, where he will lead brand building activities for Glazer’s vendors and work with state’s sales and marketing teams. Parro is currently business development manager for The Wine Group.
THE RESTAURANT INDUSTRY is also feeling a pinch from the credit crunch. Brinker International, owner of Chili’s Grill & Bar, Romano’s Macaroni Grill and Magigiano’s Little Italy, said it plans to close 25 underperforming restaurants.
TESCO is planning to open 18 new store locations to the Bay area of California despite reports that it might not be doing so well in the U.S. The stores will begin opening in 2009, according to Fresh & Easy ceo Tim Mason. He said the 37 locations “have been well-received” across Southern California, Nevada and Arizona, and plans to have 50 stores open in the U.S. by the end of February.
CALLING ALL TRUTH SQUADERS. This is the last chance to let us know what you’re thinking. It only takes a few minutes to fill out our Truth Squad survey, and allows us to understand the issues you’re facing in the industry. All answers are kept anonymous. Click here to take the survey: http://tinyurl.com/yuj9hv
CORRECTION. Yesterday we reported rumors that Majestic Distilling Company was sold to Sazerac. We were assured the rumor is false and apologize for the error.
I WILL BE TRAVELING out of the country from February 5-February 14. My fellow editor Harry Schuhmacher will take over the reigns next Tuesday until I return.
Until Monday, Megan
“You only live once - but if you work it right, once is enough.”
-Joe E. Lewis
THIS IS A LEAP YEAR, DON’T FORGET. We gain a sell day in February.
--------- Sell Day Calendar ----------
Today’s Sell Day: 1
Sell days this month: 21
Sell days this month last year: 20
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
More than 5 million nine-liter cases of Absolut were sold in its largest market, the U.S., for the first time, while sales to the trade increased by 4% in fiscal 2007. Since 2006, Absolut has managed to sell more than one in two bottles outside the U.S., making it an increasingly global brand.
V&S Group ceo Bengt Baron said increased sales of Absolut in the US led to a somewhat higher market share in the market in 2007. Outside of the United States, sales saw double-digit percentage growth on most prioritized markets.
As you’ll recall, the new advertising campaign, “In an ABSOLUT World”, was launched in 2007. Absolut also unveiled Absolut Pears, Absolut New Orleans and Absolut 100, which the company said “were very well received.” The $2 million sales profit from Absolut New Orleans was donated for the reconstruction work.
“We focus on around ten key markets, work innovatively with the product portfolio and marketing and invest in the brand in the long term. Our consistent strategy, combined with tough cost control, has made possible both a good profit and much increased market investments,” says Ketil Eriksen, President of V&S Absolut Spirits.
V&S reportedly does not expect Absolut or the premium vodka market to be effected much by the slowing U.S. economy, unless a major downturn takes place.
Cruzan Rum was also responsible for growing V&S’ spirits segment. Volume of Cruzan sold grew by as much as 19% in 2007, primarily in the USA. Cruzan also introduced a new flavor, Cruzan Black Cherry, in the US market.
Now, for a look at the rest of the company.
“The fourth quarter was extremely successful with operating profit up 17%. The main contributing factors are continued strong development for Absolut Vodka and very positive developments in Sweden and Poland,” says Bengt Baron, ceo of V&S Group.
Net sales remained virtually unchanged in 2007. For comparable units the increase was 7%. Sales volume increased to 26.9 million 9-litre cases. For the fourth quarter net sales amounted to SEK 2,964(2,974) million and sales volume was up 5%.
“Our efforts to focus V&S are continuing to yield results. A focus on prioritized markets, prioritized products and lower costs have contributed to our strong figures,” says Bengt Baron.
TOP THEMES AT THE UNIFIED WINE & GRAPE SYMPOSIUM
Let’s take a look at some of the major themes at this year’s Unified Wine & Grape Symposium.
1. Imports are gaining
As Americans are drinking more wine and surpassing countries such as Italy in consumption, imports are looking to profit. (The U.S. is second only to France as the world’s largest wine drinking nation.) During a time when the dollar is weak, consumers are reportedly still willing to spend an extra buck for an imported bottle, which means imports are officially here to stay. One of the main drivers of the trend may be millennials who are more likely to experiment with imports than their baby boomer parents.
The top performing wine brands of 2007 in terms of growth include Ste. Michelle Wine Estates, Barefoot, Clos du Bois and Diageo Chateau & Estate wines.
2. Catching up with overproduction
Now that U.S. consumption is on the rise, local producers have a chance to make a comeback. Years of oversupply, influx of imports and a slowing economy has caused grape prices to dwindle. But now that demand is on the rise and imports are getting increasingly expensive, growers could soon see a return to sustainable prices.
Nat DiBuduo of the Allied Grape Growers said there is a slight shortage of varieties like Chardonnay and Pinot Noir, and recommended that growers plant new vineyards for the first time in ten years. He warned, however, that farmers only begin planting new vineyards if they have a solid winery contract.
3. The glut is drying up
Several factors are helping the worldwide glut to shrink. A drought in Australia, smaller California crops in the past couple of years and new EU reforms are helping drain the oversupply of wine. This can be a good or bad thing, depending on how you look at it. Mainly, prices might go up, which is good depending on who you are.
WSD BRIEFS:
INFINIUM SPIRITS ceo Jeff Underwood has appointed Bill Anderson as president of the Aliso Viejo, California-based company. Bill has over 30 years of experience in the spirits industry primarily with Bacardi USA, Inc. Infinium’s portfolio includes Seagrams Vodka and Corralejo Tequilas.
GLAZER’S has hired industry veteran Dolph Parro as senior vp, wine, where he will lead brand building activities for Glazer’s vendors and work with state’s sales and marketing teams. Parro is currently business development manager for The Wine Group.
THE RESTAURANT INDUSTRY is also feeling a pinch from the credit crunch. Brinker International, owner of Chili’s Grill & Bar, Romano’s Macaroni Grill and Magigiano’s Little Italy, said it plans to close 25 underperforming restaurants.
TESCO is planning to open 18 new store locations to the Bay area of California despite reports that it might not be doing so well in the U.S. The stores will begin opening in 2009, according to Fresh & Easy ceo Tim Mason. He said the 37 locations “have been well-received” across Southern California, Nevada and Arizona, and plans to have 50 stores open in the U.S. by the end of February.
CALLING ALL TRUTH SQUADERS. This is the last chance to let us know what you’re thinking. It only takes a few minutes to fill out our Truth Squad survey, and allows us to understand the issues you’re facing in the industry. All answers are kept anonymous. Click here to take the survey: http://tinyurl.com/yuj9hv
CORRECTION. Yesterday we reported rumors that Majestic Distilling Company was sold to Sazerac. We were assured the rumor is false and apologize for the error.
I WILL BE TRAVELING out of the country from February 5-February 14. My fellow editor Harry Schuhmacher will take over the reigns next Tuesday until I return.
Until Monday, Megan
“You only live once - but if you work it right, once is enough.”
-Joe E. Lewis
THIS IS A LEAP YEAR, DON’T FORGET. We gain a sell day in February.
--------- Sell Day Calendar ----------
Today’s Sell Day: 1
Sell days this month: 21
Sell days this month last year: 20
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
posted at 11:23 AM
<< Home