Gallo Trades Grapes for Grain
E&J Gallo has quietly entered the gin business with New Amsterdam Straight Gin, a premium gin aimed at consumers 25-49 years old, according to the Modesto Bee. Gallo’s new gin is its second spirits brand, but the first one not to be distilled from grapes. It also sells E&J Brandy, distilled from wine with 40% alcohol content. New Amsterdam is flavored with juniper berries and has a hint of citrus. The gin falls in the popular “premium” category, priced $13-$14 a bottle.
The article says Gallo would not comment on how much gin it is making, the source of the grain used to make New Amsterdam or the number of employees involved in the process. New Amsterdam is being produced in Modesto. It was test-marketed last year and began a yearlong national rollout in January.
You might be asking yourself, why gin? The rate of growth for gin has fallen far behind vodka in recent years, but is starting to pick up in pockets throughout the country. Super-premium and premium gin, in particular, is doing especially well. In fact, a lot of people in the industry predict gin is on its way towards making a comeback in the U.S. In the four weeks to January 27, dollar sales of gin grew 2.6% and volume was down -0.9%, according to IRI.
Dollar sales of gin grew 0.4% for the 52 week period ending January 27, while volume declined -3.2%. Premium gin ($15-$26) sales grew 4.1%, while volume increased 2.5%. Ultra-premium gin ($26 and above), meanwhile, grew 0.8% in value and declined -0.3% in volume. As you’ve probably guessed, value gin is declining the most. Dollar sales of value gin ($15 and below) were down -2.6% and volume declined -5.1%.
Dollar sales of Tanqueray Gin grew 8.6% in the 52 week period, with volume up 7%. Seagrams Gin, meanwhile, saw sales rise 0.5% and volumes decline -1.3%. Bombay’s sales rose 0.6% and volumes decline -0.5%. Lastly, Gordons’ sales were down -5.2% and volumes declined -8.9%.
DIAGEO EXPECTS WHISKY SALES TO SPIKE
Diageo predicts that its Scotch whisky business will grow at least 8% to 9% annually, reports the AP, thanks to growing demand from emerging markets like Asia and Latin America. Scotch growth has been in that range for the past few years after facing earlier slumps in the spirits’ popularity.
The company says its whisky sales will be protected from any consumer spending downturn because Scotch is seen as an “affordable luxury,” unlike cars and expensive vacations.
Managing director of Diageo Scotland, Bryan Donaghey, said the company is partly insulated against the recent sharp increases in cereal prices because it can absorb costs over several years.
WSD BRIEFS:
TERLATO WINES HAS RELEASED Seven Daughters Winemaker’s Blends, one white and one red, composed of seven varietals. They will be available at fine wine shops, retailers and restaurants across America beginning in April 2008. The suggested retail price for both wines is $14.99.
SAN FRANCISCO’S BOARD OF SUPERVISORS HAVE APPROVED a requirement that some chain restaurants post nutritional information on their menus and menu boards. The proposal now awaits the signature of Mayor Gavin Newsom’s, who is expected to sign it into law. It is expected to take effect in six months. New York City is currently facing a similar measure.
FOSTER’S AUSTRALIA says it will immediately cease the production and marketing of added energy and higher alcohol RTD products in Australia. In addition, the company has formally committed to a voluntary limit of two standard drinks (20 grams of alcohol) per single serve container and 7% alcohol by volume across its RTD product portfolio.
BOMBAY SAPPHIRE is launching five limited-edition bottles handcrafted with crystals and sapphire jewels with crystal manufacturer Baccarat and jeweler Garrard. Each of the five bottles retails for $200,000 with profits going to the Smile Train charity.
Until Monday, Megan
“The future is here. It's just not widely distributed yet.”
William Gibson
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
The article says Gallo would not comment on how much gin it is making, the source of the grain used to make New Amsterdam or the number of employees involved in the process. New Amsterdam is being produced in Modesto. It was test-marketed last year and began a yearlong national rollout in January.
You might be asking yourself, why gin? The rate of growth for gin has fallen far behind vodka in recent years, but is starting to pick up in pockets throughout the country. Super-premium and premium gin, in particular, is doing especially well. In fact, a lot of people in the industry predict gin is on its way towards making a comeback in the U.S. In the four weeks to January 27, dollar sales of gin grew 2.6% and volume was down -0.9%, according to IRI.
Dollar sales of gin grew 0.4% for the 52 week period ending January 27, while volume declined -3.2%. Premium gin ($15-$26) sales grew 4.1%, while volume increased 2.5%. Ultra-premium gin ($26 and above), meanwhile, grew 0.8% in value and declined -0.3% in volume. As you’ve probably guessed, value gin is declining the most. Dollar sales of value gin ($15 and below) were down -2.6% and volume declined -5.1%.
Dollar sales of Tanqueray Gin grew 8.6% in the 52 week period, with volume up 7%. Seagrams Gin, meanwhile, saw sales rise 0.5% and volumes decline -1.3%. Bombay’s sales rose 0.6% and volumes decline -0.5%. Lastly, Gordons’ sales were down -5.2% and volumes declined -8.9%.
DIAGEO EXPECTS WHISKY SALES TO SPIKE
Diageo predicts that its Scotch whisky business will grow at least 8% to 9% annually, reports the AP, thanks to growing demand from emerging markets like Asia and Latin America. Scotch growth has been in that range for the past few years after facing earlier slumps in the spirits’ popularity.
The company says its whisky sales will be protected from any consumer spending downturn because Scotch is seen as an “affordable luxury,” unlike cars and expensive vacations.
Managing director of Diageo Scotland, Bryan Donaghey, said the company is partly insulated against the recent sharp increases in cereal prices because it can absorb costs over several years.
WSD BRIEFS:
TERLATO WINES HAS RELEASED Seven Daughters Winemaker’s Blends, one white and one red, composed of seven varietals. They will be available at fine wine shops, retailers and restaurants across America beginning in April 2008. The suggested retail price for both wines is $14.99.
SAN FRANCISCO’S BOARD OF SUPERVISORS HAVE APPROVED a requirement that some chain restaurants post nutritional information on their menus and menu boards. The proposal now awaits the signature of Mayor Gavin Newsom’s, who is expected to sign it into law. It is expected to take effect in six months. New York City is currently facing a similar measure.
FOSTER’S AUSTRALIA says it will immediately cease the production and marketing of added energy and higher alcohol RTD products in Australia. In addition, the company has formally committed to a voluntary limit of two standard drinks (20 grams of alcohol) per single serve container and 7% alcohol by volume across its RTD product portfolio.
BOMBAY SAPPHIRE is launching five limited-edition bottles handcrafted with crystals and sapphire jewels with crystal manufacturer Baccarat and jeweler Garrard. Each of the five bottles retails for $200,000 with profits going to the Smile Train charity.
Until Monday, Megan
“The future is here. It's just not widely distributed yet.”
William Gibson
--------- Sell Day Calendar ----------
Today's Sell Day: 14
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
posted at 12:03 PM
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