Irish Whiskey Surpasses St. Patrick’s Day
Irish whiskey is currently the fastest growing whiskey category in the U.S., growing 20% last year to 860,000 nine-liter cases, according to David Ozgo, chief economist for Discus. In an interesting article by MarketWatch’s William Spain, David says Irish whiskey has been one of the fastest growing spirits categories for five years, although it is still small when compared to bourbon or scotch.
Pernod’s Jameson is the biggest Irish whiskey player. It jumped 23%in volume in 2007, according to Impact, and currently holds 65% market share in the U.S. Diageo’s Bushmill is the second most popular Irish whiskey in the U.S., but grew just under 9% last year. Other small players include C&C Group's Tullamore Dew, Michael Collins from Sidney Frank, Clontarf and Connemara.
The success of Irish whiskey has been attributed to “trading up” trends and the approachability of the product. It increasingly appeals to 25 to 35-year olds. To view the article in full, click here.
SPIRITS CONSUMERS BUY LESS, SPEND MORE
When shopping for spirits, consumers are reportedly buying less but are continuing to trade up. Analysts at UBS, including Melissa Earlam and Kaumil Gajrawala, teamed up with IRI to figure out spirits consumers buying patterns. Mainly, they found that consumers are buying less volume, but are continuing to trade up. As a result, “we believe premiumization and pricing should offset volume weakness and thus we do not see earnings risk in our covered spirits companies due to the US volume slowdown at this time.”
UBS says the U.S. spirits market is slowing based on the following reasons: (1) Less traffic on-premise, (2) weakness in the value spirits category, (3) little impact made by softening regulation, (4) and improved positioning/advertising from beer companies.
With that said, UBS found that volume is slowing but price/mix is not. The study confirms that consumers are drinking less but also that they are buying higher-priced spirits. The panel study shows repeat and infrequent consumers are increasing their spend per purchase. This is further supported by the mix effect in off-trade, which accelerated to 2.2% in 2007 (five-year CAGR of 1.6%).
“In 2008, we expect 4.5% value growth for distillers, on 1.7% volume, implying price mix of 2.8% (similar to 2007),” they said. “We thus see limited downside risk to earnings at the spirits companies we cover from a potential US slowdown.”
UBS reiterated its Buy ratings for Diageo, Pernod and Brown-Forman.
WINERIES ALLOWED TO SHIP DIRECT TO WISCONSIN
Wisconsin Governor signed SB 485 into law, allowing a winery in any state with a permit to ship wine directly to Wisconsin residents, effective Oct. 1. Individuals may receive no more than 108 liters of wine annually from any combination of licensees, says Ship Compliant. The individual is responsible for compliance with this annual limit.
All wine sales to retailers must go through a wholesaler, but the state put some safeguards in place:
“All wholesalers must work diligently to ensure that distribution channels are available for the sale of intoxicating liquor products through wholesalers to retailers in this state.”
The legislation isn’t clear about methods or consequences for wholesalers if they fail to adhere to this clause, says Ship Compliant. In addition, wineries that produce under 25,000 gallons of wine a year may group together to form a “Cooperative Wholesaler” to sell to retailers.
ITALIAN MOB SELLING FAKE WHISKEY
New reports claim the Italian mob is involved in selling fake antique whisky online through websites such as eBay. The mob is pouring modern spirits into antique bottles and then selling them for a huge profit. Labels can easily be copied, says The Scotsman, and the bottles usually come from distilleries such as Bowmore, Macallan and Highland Park.
WINE MORE DAMAGING TO THE BRAIN
Research has found that drinking too much wine damages the brain more than spirits and particularly beer, according to a study published in the medical journal Alcohol & Alcoholism. The study revealed that the hippocampus, the part of the brain involved in memory, spatial tasks and many other functions, was more than 10% smaller in people who drink more wine than beer. Scientists say alcohol content is not the culprit. Instead, they think there might be something in beer, such as B vitamins and folate, which partially protects the brain from the damage caused by wine.
SKYY PARTNERS WITH SEX AND THE CITY
Skyy Spirits will become the official spirits sponsor and promotional partner for the new Sex and The City movie. The company signed a multi-dimensional marketing campaign with New Line Cinema that includes product placement of Skyy Vodka and Cabo Wabo Tequila in the movie.
WSD BRIEFS:
WE REGRET TO REPORT THAT Thomas Cekay died after a 14 month battle with pancreatic cancer on Friday, March 14, 2008. Tom was a retired Distilled Spirits Industry veteran. He held various Senior Sales & Marketing roles throughout his 31 year career with both Joseph E. Seagram & Sons and IDV/Carillon Importers. He is survived by his wife Jeanne Cekay, children Michael Cekay and Gregory Cekay, grandchildren Ryan, Taylor and Samantha, and his three siblings, Francis, Alice and Kenneth.
CABO WABO will once again join the A.J. Foyt Racing team this year as an associate sponsor of the No. 14 Indy car driven by Darren Manning in the IndyCar Series. The marketing partnership with Foyt’s IndyCar team marks the third straight year for the tequila, founded by Sammy Hagar.
OREGON WINERIES have crushed a record about of grapes for the third year in a row, says the US Department of Agriculture. In 2007, Oregon wineries sold 1.7 million cases of wine for over $207 million. High demand for Pinot Noir continues.
SOUTH DAKOTA GROCERY CHAINS are going to be allowed to obtain more than 3 off-sale liquor licenses in towns of at least 5,000 people, effective July.
Until tomorrow, Megan
“Mistakes, obviously, show us what needs improving. Without mistakes, how would we know what we had to work on?”
Peter McWilliams
--------- Sell Day Calendar ----------
Today's Sell Day: 11
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
Pernod’s Jameson is the biggest Irish whiskey player. It jumped 23%in volume in 2007, according to Impact, and currently holds 65% market share in the U.S. Diageo’s Bushmill is the second most popular Irish whiskey in the U.S., but grew just under 9% last year. Other small players include C&C Group's Tullamore Dew, Michael Collins from Sidney Frank, Clontarf and Connemara.
The success of Irish whiskey has been attributed to “trading up” trends and the approachability of the product. It increasingly appeals to 25 to 35-year olds. To view the article in full, click here.
SPIRITS CONSUMERS BUY LESS, SPEND MORE
When shopping for spirits, consumers are reportedly buying less but are continuing to trade up. Analysts at UBS, including Melissa Earlam and Kaumil Gajrawala, teamed up with IRI to figure out spirits consumers buying patterns. Mainly, they found that consumers are buying less volume, but are continuing to trade up. As a result, “we believe premiumization and pricing should offset volume weakness and thus we do not see earnings risk in our covered spirits companies due to the US volume slowdown at this time.”
UBS says the U.S. spirits market is slowing based on the following reasons: (1) Less traffic on-premise, (2) weakness in the value spirits category, (3) little impact made by softening regulation, (4) and improved positioning/advertising from beer companies.
With that said, UBS found that volume is slowing but price/mix is not. The study confirms that consumers are drinking less but also that they are buying higher-priced spirits. The panel study shows repeat and infrequent consumers are increasing their spend per purchase. This is further supported by the mix effect in off-trade, which accelerated to 2.2% in 2007 (five-year CAGR of 1.6%).
“In 2008, we expect 4.5% value growth for distillers, on 1.7% volume, implying price mix of 2.8% (similar to 2007),” they said. “We thus see limited downside risk to earnings at the spirits companies we cover from a potential US slowdown.”
UBS reiterated its Buy ratings for Diageo, Pernod and Brown-Forman.
WINERIES ALLOWED TO SHIP DIRECT TO WISCONSIN
Wisconsin Governor signed SB 485 into law, allowing a winery in any state with a permit to ship wine directly to Wisconsin residents, effective Oct. 1. Individuals may receive no more than 108 liters of wine annually from any combination of licensees, says Ship Compliant. The individual is responsible for compliance with this annual limit.
All wine sales to retailers must go through a wholesaler, but the state put some safeguards in place:
“All wholesalers must work diligently to ensure that distribution channels are available for the sale of intoxicating liquor products through wholesalers to retailers in this state.”
The legislation isn’t clear about methods or consequences for wholesalers if they fail to adhere to this clause, says Ship Compliant. In addition, wineries that produce under 25,000 gallons of wine a year may group together to form a “Cooperative Wholesaler” to sell to retailers.
ITALIAN MOB SELLING FAKE WHISKEY
New reports claim the Italian mob is involved in selling fake antique whisky online through websites such as eBay. The mob is pouring modern spirits into antique bottles and then selling them for a huge profit. Labels can easily be copied, says The Scotsman, and the bottles usually come from distilleries such as Bowmore, Macallan and Highland Park.
WINE MORE DAMAGING TO THE BRAIN
Research has found that drinking too much wine damages the brain more than spirits and particularly beer, according to a study published in the medical journal Alcohol & Alcoholism. The study revealed that the hippocampus, the part of the brain involved in memory, spatial tasks and many other functions, was more than 10% smaller in people who drink more wine than beer. Scientists say alcohol content is not the culprit. Instead, they think there might be something in beer, such as B vitamins and folate, which partially protects the brain from the damage caused by wine.
SKYY PARTNERS WITH SEX AND THE CITY
Skyy Spirits will become the official spirits sponsor and promotional partner for the new Sex and The City movie. The company signed a multi-dimensional marketing campaign with New Line Cinema that includes product placement of Skyy Vodka and Cabo Wabo Tequila in the movie.
WSD BRIEFS:
WE REGRET TO REPORT THAT Thomas Cekay died after a 14 month battle with pancreatic cancer on Friday, March 14, 2008. Tom was a retired Distilled Spirits Industry veteran. He held various Senior Sales & Marketing roles throughout his 31 year career with both Joseph E. Seagram & Sons and IDV/Carillon Importers. He is survived by his wife Jeanne Cekay, children Michael Cekay and Gregory Cekay, grandchildren Ryan, Taylor and Samantha, and his three siblings, Francis, Alice and Kenneth.
CABO WABO will once again join the A.J. Foyt Racing team this year as an associate sponsor of the No. 14 Indy car driven by Darren Manning in the IndyCar Series. The marketing partnership with Foyt’s IndyCar team marks the third straight year for the tequila, founded by Sammy Hagar.
OREGON WINERIES have crushed a record about of grapes for the third year in a row, says the US Department of Agriculture. In 2007, Oregon wineries sold 1.7 million cases of wine for over $207 million. High demand for Pinot Noir continues.
SOUTH DAKOTA GROCERY CHAINS are going to be allowed to obtain more than 3 off-sale liquor licenses in towns of at least 5,000 people, effective July.
Until tomorrow, Megan
“Mistakes, obviously, show us what needs improving. Without mistakes, how would we know what we had to work on?”
Peter McWilliams
--------- Sell Day Calendar ----------
Today's Sell Day: 11
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 1:39 PM
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