WSWA Alerts Regulators on Illegal Shipping
The WSWA sent a letter to officials in 50 states claiming illegal alcohol shipments are “rampant” and “in dire need” of enforcement measures. The letter by ceo Craig Wolf to liquor control boards, attorneys general and governors expressed concern about direct-to-consumer shipments across state lines, outside of regulatory channels and in clear violation of most states’ laws.
“Evidence has mounted lately that the illegal practice is common and growing—and that prosecutions for it are virtually unheard of,” said the trade group in a statement.
“As you are well aware, the sidestepping of state-controlled alcohol distribution channels causes a host of negative effects—the inability to collect taxes, the absence of a face-to-face transaction that addresses myriad regulatory aims, and the very real possibility of introducing tainted or counterfeit product into your marketplace, to name but a few,” Wolf’s letter says.
It goes on to say that “a growing number of interstate purveyors of beverage alcohol are flaunting their disdain for laws designed to prevent underage access and ensure accountability. They appear both utterly remorseless and resolute in their intention to keep breaking those laws, with little fear of retribution.”
As you’ll recall, the WSWA’s letter is in similar spirit to that of Wine.com in January. (To view our coverage, click here.) In the group’s statement, it points out several comments made by public blogs and journalists (including a New York Times writer) that side with companies that allegedly illegally ship wine and spirits to consumers.
Read Wolf’s full letter here.
PATRON: BETTER BRANDS MAKE BETTER DRINKS
In keeping with the theme we’ve had so far this week, Patrón’s Chief Operating Officer, John McDonnell, gave a keynote address at the annual Nightclub & Bar Show on the luxury spirits market. Not surprisingly, John says premiumization is not going anywhere and is in fact only going to get stronger. According to John, research and day-to-day living proves that people have embraced the idea that better brands make better drinks. He said that consumers prefer luxury spirits and they’re willing to pay for them.
By Patrón’s estimates, based on an average of $10 a shot, sales of Patrón in on-premise establishments in the U.S. in 2007 generated $1.7 billion for bars, restaurants and nightclubs. And, this year, if Patrón achieves its sales forecasts (which John says he’s confident they will), Patrón on-premise should add almost $2.2 billion to bar and restaurant retail sales. (That’s based again on $10 a shot – many establishments charge more than that for Patrón.)
After so much success in the luxury spirits market, John said Patrón is introducing this year its latest addition to the portfolio – Ultimat vodka, an ultra-premium Polish vodka. John told the audience today that The Patrón Spirits Company will spend $15 million in marketing support for Ultimat this year.
TOM FLOCCO DEFENDS ROBBY GORDON
Beam Global is staunchly defending its NASCAR sponsored driver Robby Gordon who received a 100-point penalty after NASCAR inspectors found an unapproved front bumper cover on his No. 7 Dodge at the Daytona 500. In addition to the 100-point penalty, his crew chief Frank Kerr was suspended for six races, and the team was fined $100,000. The deduction in points dropped the only owner/driver in NASCAR's top series from ninth in the standings to 40th. He finished eighth in last Sunday's season-opening race at Daytona and is currently appealing the decision.
As a result, Beam’s chief Tom Flocco wrote a letter to NASCAR officials in support of Gordon. WSD was able to get a hold of the letter and here are some excerpts:
“Robby's team earned an honest 8th place finish in the Daytona 500 through tireless dedication, quality, and character - not because of rule violations... Your decision unfairly penalizes Robby, his sponsors and his fans. In fact, nearly 70 percent of racing fans on NASCAR.com are standing up for Robby and agree with our assessment. While we fully support the rules NASCAR has put in place to keep the playing field level, we ask that you closely review all the facts. Please consider not just the letter of the law, but the spirit of the rules of competition.”
When asked the biggest effect of the penalty, Gordon said, "Perception. Being labeled a cheater where we have not cheated. Where the problem comes into play is with sponsors. When you start impacting our sponsorship opportunities, you start getting into the root of the real situation and we're in trouble for something we didn't do," as quoted in the Associated Press.
"It was something that we didn't build, we didn't fix, we didn't supply," he said. "It was a clerical error from the manufacturer and all we did was install it actually on the race car.”
DIAGEO CREATES J-V WITH ZACAPA RUM
Diageo announced it has been granted a three-year distribution and joint marketing agreement for the high-end Zacapa rum brand (a hugely growing category) by the Industrias Licoreras de Guatemala group of companies. Under the contract, Diageo will become the global distributor of the company’s Zacapa rum brand. After the three-year term runs out, Diageo has the option of buying a 50% stake in Zacapa, including Centenario 15, Centenario 23 and ultrapremium Centenario XO. Diageo will distribute the Zacapa line in all its international markets, excluding Guatemala and some other Central American countries. Financial details were not released.
WSD BRIEF:
THE EURO REACHED A RECORD HIGH at $1.5057 today in early European trading. Another not-so-good sign for European exports to the U.S., or Americans traveling in Europe for that matter.
Until tomorrow, Megan
“The statistics on sanity are that one out of every four Americans is suffering from some form of mental illness. Think of your three best friends. If they're okay, then it's you.”
-Rita Mae Brown
--------- Sell Day Calendar ----------
Today’s Sell Day: 19
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
“Evidence has mounted lately that the illegal practice is common and growing—and that prosecutions for it are virtually unheard of,” said the trade group in a statement.
“As you are well aware, the sidestepping of state-controlled alcohol distribution channels causes a host of negative effects—the inability to collect taxes, the absence of a face-to-face transaction that addresses myriad regulatory aims, and the very real possibility of introducing tainted or counterfeit product into your marketplace, to name but a few,” Wolf’s letter says.
It goes on to say that “a growing number of interstate purveyors of beverage alcohol are flaunting their disdain for laws designed to prevent underage access and ensure accountability. They appear both utterly remorseless and resolute in their intention to keep breaking those laws, with little fear of retribution.”
As you’ll recall, the WSWA’s letter is in similar spirit to that of Wine.com in January. (To view our coverage, click here.) In the group’s statement, it points out several comments made by public blogs and journalists (including a New York Times writer) that side with companies that allegedly illegally ship wine and spirits to consumers.
Read Wolf’s full letter here.
PATRON: BETTER BRANDS MAKE BETTER DRINKS
In keeping with the theme we’ve had so far this week, Patrón’s Chief Operating Officer, John McDonnell, gave a keynote address at the annual Nightclub & Bar Show on the luxury spirits market. Not surprisingly, John says premiumization is not going anywhere and is in fact only going to get stronger. According to John, research and day-to-day living proves that people have embraced the idea that better brands make better drinks. He said that consumers prefer luxury spirits and they’re willing to pay for them.
By Patrón’s estimates, based on an average of $10 a shot, sales of Patrón in on-premise establishments in the U.S. in 2007 generated $1.7 billion for bars, restaurants and nightclubs. And, this year, if Patrón achieves its sales forecasts (which John says he’s confident they will), Patrón on-premise should add almost $2.2 billion to bar and restaurant retail sales. (That’s based again on $10 a shot – many establishments charge more than that for Patrón.)
After so much success in the luxury spirits market, John said Patrón is introducing this year its latest addition to the portfolio – Ultimat vodka, an ultra-premium Polish vodka. John told the audience today that The Patrón Spirits Company will spend $15 million in marketing support for Ultimat this year.
TOM FLOCCO DEFENDS ROBBY GORDON
Beam Global is staunchly defending its NASCAR sponsored driver Robby Gordon who received a 100-point penalty after NASCAR inspectors found an unapproved front bumper cover on his No. 7 Dodge at the Daytona 500. In addition to the 100-point penalty, his crew chief Frank Kerr was suspended for six races, and the team was fined $100,000. The deduction in points dropped the only owner/driver in NASCAR's top series from ninth in the standings to 40th. He finished eighth in last Sunday's season-opening race at Daytona and is currently appealing the decision.
As a result, Beam’s chief Tom Flocco wrote a letter to NASCAR officials in support of Gordon. WSD was able to get a hold of the letter and here are some excerpts:
“Robby's team earned an honest 8th place finish in the Daytona 500 through tireless dedication, quality, and character - not because of rule violations... Your decision unfairly penalizes Robby, his sponsors and his fans. In fact, nearly 70 percent of racing fans on NASCAR.com are standing up for Robby and agree with our assessment. While we fully support the rules NASCAR has put in place to keep the playing field level, we ask that you closely review all the facts. Please consider not just the letter of the law, but the spirit of the rules of competition.”
When asked the biggest effect of the penalty, Gordon said, "Perception. Being labeled a cheater where we have not cheated. Where the problem comes into play is with sponsors. When you start impacting our sponsorship opportunities, you start getting into the root of the real situation and we're in trouble for something we didn't do," as quoted in the Associated Press.
"It was something that we didn't build, we didn't fix, we didn't supply," he said. "It was a clerical error from the manufacturer and all we did was install it actually on the race car.”
DIAGEO CREATES J-V WITH ZACAPA RUM
Diageo announced it has been granted a three-year distribution and joint marketing agreement for the high-end Zacapa rum brand (a hugely growing category) by the Industrias Licoreras de Guatemala group of companies. Under the contract, Diageo will become the global distributor of the company’s Zacapa rum brand. After the three-year term runs out, Diageo has the option of buying a 50% stake in Zacapa, including Centenario 15, Centenario 23 and ultrapremium Centenario XO. Diageo will distribute the Zacapa line in all its international markets, excluding Guatemala and some other Central American countries. Financial details were not released.
WSD BRIEF:
THE EURO REACHED A RECORD HIGH at $1.5057 today in early European trading. Another not-so-good sign for European exports to the U.S., or Americans traveling in Europe for that matter.
Until tomorrow, Megan
“The statistics on sanity are that one out of every four Americans is suffering from some form of mental illness. Think of your three best friends. If they're okay, then it's you.”
-Rita Mae Brown
--------- Sell Day Calendar ----------
Today’s Sell Day: 19
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 2:00 PM
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