Southern Moving to Texas, What Next?
It’s official: Southern is moving into Texas after receiving a wholesaler’s permit to distribute statewide and gaining approval from the Texas Alcoholic Beverage Commission. Southern now covers in excess of 72% share of the U.S. market and is the only major wine and spirits distributor licensed in each of the nation's top five wine and spirits markets: California, New York, Florida, Texas and Illinois.
The big question remains, though, will Southern open a new branch from scratch, or buy out a current wholesaler?
Harvey Chaplin, chairman and ceo of the company, says Southern will either acquire existing businesses in Texas or establish a new distributorship in order to expand in the Texas market, according to a report in the Austin Business Journal.
The two biggest wine and spirits wholesalers in Texas are Glazer’s and Republic. Glazer’s represents Diageo (like Southern), and Republic much of the rest. A Dallas newspaper reported a rumor last year that Southern was interested in purchasing Glazer’s, but nothing came of it. Stay tuned.
SENATE BILL HOPES TO SQUASH TTB PROPOSALS
A California Assembly Committee has approved Senate Joint Resolution (SJR) 22, which opposes the TTB’s proposed rule changes regarding AVAs within AVAs. As you’ll recall, the motion to create a Calistoga AVA within Napa has been a big issue in the California wine country. SJR 22 asks the TTB to withdraw Notice of Proposed Rulemaking No. 77, which would create a grandfather clause in the establishment of a Calistoga AVA, and No. 78, which would alter regulations to establish all future AVAs. The bill argues that the TTB’s proposed changes threaten all U.S. wineries’ ability to fairly trade domestically and internationally. It is supported by several of California’s premium growing regions, including Lake, Mendocino, Napa and Sonoma.
SJR 22 will soon be taken up by the full Assembly, perhaps as early as this week, according to the California Chronicle.
QUICK BACKGROUND. The TTB proposal to establish a Calistoga AVA within Napa County has since been opposed by Calistoga Cellars and Calistoga Estate. Since neither winery sources 85% of their grapes within the proposed Calistoga AVA, they would likely have to remove the word “Calistoga” from their labels. In response, the TTB issued a new notice of proposed rulemaking (No. 77) to provide “grandfather” protection for certain brand names, as long as the label states grapes were not sourced from the specified AVA. March 31, 2005 would be the grandfather cutoff date.
The “grandfather” clause would allow Calistoga Cellars to keep “Calistoga” on its labels because it was established before the cutoff date. Calistoga Cellars said it is willing to place disclaimers on the back of its labels as a result. Calistoga Estates would have to change its name because it was formed after the “grandfather” cut-off date.
Grape growers throughout California generally disagree with the TTB’s Notice No. 77, claiming that it misleads consumers. Recently, Napa, Sonoma and Paso Robles passed labeling laws that require wineries to source 85% of grapes from a specific AVA if the name is featured on the brand’s label.
Furthermore, the TTB wants to amend the approval process concerning the establishment AVAs within AVAs with Proposed Rulemaking No. 78. The TTB stopped approval of all AVAs this past summer in order to review and basically improve the approval process. The California wine industry, however, believes the existing AVA petition process doesn’t need any tweaking.
To read what the Napa Valley Vintners have said in the past, click here.
PERNOD APPOINTS JIM EVANS, SENIOR VP-SALES
Pernod Ricard USA today announced that Jim Evans, a 17-year industry veteran who most recently served as sales VP of the company's Central Division, has been promoted to the national role of Senior VP, Sales. Evans will report directly to Alain Barbet.
Ted Roman, Evans' predecessor, will support Jim in his transition until March 31, 2008, when he will leave Pernod Ricard USA to pursue other interests.
"Ted played a key role in guiding the growth of our premium spirits and wine business, and I thank him for his contributions to the success of both Pernod Ricard USA and its predecessor company, Austin-Nichols," Barbet said.
W.J. DEUTSCH SPLITS
W.J. Deutsch & Sons said its sales will now be managed as two zones within the U.S.—Eastern and Western. In addition, newly appointed senior VPs David McDade and Ryan Rowder will manage the Eastern and Western zones. Both will report to President James Mello, effective April 1, 2008.
Michael Aitken and Stephen DiCarlo, newly appointed VP, sales, for the Southern region and Northeastern region, will report to McDade. Mark Salmon, VP, sales, for the Central Region and Al Della Corna, VP, sales, for the Western Region, will report to Rowder.
DIAGEO INTRODUCES SMIRNOFF PASSION FRUIT AND WHITE GRAPE
Passion Fruit and White Grape are the two latest flavors to join Smirnoff’s flavored vodka line, joining Blueberry, Lime, Watermelon, Strawberry, Cranberry, Vanilla, Raspberry, Citrus, Orange, Green Apple and Black Cherry. The 750mL bottle carries a suggested retail price of $14.99.
WSD BRIEFS:
OKLAHOMA HOUSE COMMITTEE approved a bill yesterday that would allow small wineries to ship directly to liquor stores and restaurants. Lawmakers will reportedly vote on how many gallons a winery can ship direct before using a wholesaler. The measures are Senate Joint Resolution 29 and Senate Bill 995.
KENTUCKY BILL TO ALLOW WINE SALES in grocery stores apparently died yesterday after State Rep. Joni Jenkins, chair of the Licensing & Occupations Committee, said she didn't plan to give the bill a hearing because it arrived too late in the session, according to local reports.
Until tomorrow, Megan
“In attempts to improve your character, know what is in your power and what is beyond it.”
-Francis Thompson
--------- Sell Day Calendar ----------
Today's Sell Day: 2
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 big question remains, though, will Southern open a new branch from scratch, or buy out a current wholesaler?
Harvey Chaplin, chairman and ceo of the company, says Southern will either acquire existing businesses in Texas or establish a new distributorship in order to expand in the Texas market, according to a report in the Austin Business Journal.
The two biggest wine and spirits wholesalers in Texas are Glazer’s and Republic. Glazer’s represents Diageo (like Southern), and Republic much of the rest. A Dallas newspaper reported a rumor last year that Southern was interested in purchasing Glazer’s, but nothing came of it. Stay tuned.
SENATE BILL HOPES TO SQUASH TTB PROPOSALS
A California Assembly Committee has approved Senate Joint Resolution (SJR) 22, which opposes the TTB’s proposed rule changes regarding AVAs within AVAs. As you’ll recall, the motion to create a Calistoga AVA within Napa has been a big issue in the California wine country. SJR 22 asks the TTB to withdraw Notice of Proposed Rulemaking No. 77, which would create a grandfather clause in the establishment of a Calistoga AVA, and No. 78, which would alter regulations to establish all future AVAs. The bill argues that the TTB’s proposed changes threaten all U.S. wineries’ ability to fairly trade domestically and internationally. It is supported by several of California’s premium growing regions, including Lake, Mendocino, Napa and Sonoma.
SJR 22 will soon be taken up by the full Assembly, perhaps as early as this week, according to the California Chronicle.
QUICK BACKGROUND. The TTB proposal to establish a Calistoga AVA within Napa County has since been opposed by Calistoga Cellars and Calistoga Estate. Since neither winery sources 85% of their grapes within the proposed Calistoga AVA, they would likely have to remove the word “Calistoga” from their labels. In response, the TTB issued a new notice of proposed rulemaking (No. 77) to provide “grandfather” protection for certain brand names, as long as the label states grapes were not sourced from the specified AVA. March 31, 2005 would be the grandfather cutoff date.
The “grandfather” clause would allow Calistoga Cellars to keep “Calistoga” on its labels because it was established before the cutoff date. Calistoga Cellars said it is willing to place disclaimers on the back of its labels as a result. Calistoga Estates would have to change its name because it was formed after the “grandfather” cut-off date.
Grape growers throughout California generally disagree with the TTB’s Notice No. 77, claiming that it misleads consumers. Recently, Napa, Sonoma and Paso Robles passed labeling laws that require wineries to source 85% of grapes from a specific AVA if the name is featured on the brand’s label.
Furthermore, the TTB wants to amend the approval process concerning the establishment AVAs within AVAs with Proposed Rulemaking No. 78. The TTB stopped approval of all AVAs this past summer in order to review and basically improve the approval process. The California wine industry, however, believes the existing AVA petition process doesn’t need any tweaking.
To read what the Napa Valley Vintners have said in the past, click here.
PERNOD APPOINTS JIM EVANS, SENIOR VP-SALES
Pernod Ricard USA today announced that Jim Evans, a 17-year industry veteran who most recently served as sales VP of the company's Central Division, has been promoted to the national role of Senior VP, Sales. Evans will report directly to Alain Barbet.
Ted Roman, Evans' predecessor, will support Jim in his transition until March 31, 2008, when he will leave Pernod Ricard USA to pursue other interests.
"Ted played a key role in guiding the growth of our premium spirits and wine business, and I thank him for his contributions to the success of both Pernod Ricard USA and its predecessor company, Austin-Nichols," Barbet said.
W.J. DEUTSCH SPLITS
W.J. Deutsch & Sons said its sales will now be managed as two zones within the U.S.—Eastern and Western. In addition, newly appointed senior VPs David McDade and Ryan Rowder will manage the Eastern and Western zones. Both will report to President James Mello, effective April 1, 2008.
Michael Aitken and Stephen DiCarlo, newly appointed VP, sales, for the Southern region and Northeastern region, will report to McDade. Mark Salmon, VP, sales, for the Central Region and Al Della Corna, VP, sales, for the Western Region, will report to Rowder.
DIAGEO INTRODUCES SMIRNOFF PASSION FRUIT AND WHITE GRAPE
Passion Fruit and White Grape are the two latest flavors to join Smirnoff’s flavored vodka line, joining Blueberry, Lime, Watermelon, Strawberry, Cranberry, Vanilla, Raspberry, Citrus, Orange, Green Apple and Black Cherry. The 750mL bottle carries a suggested retail price of $14.99.
WSD BRIEFS:
OKLAHOMA HOUSE COMMITTEE approved a bill yesterday that would allow small wineries to ship directly to liquor stores and restaurants. Lawmakers will reportedly vote on how many gallons a winery can ship direct before using a wholesaler. The measures are Senate Joint Resolution 29 and Senate Bill 995.
KENTUCKY BILL TO ALLOW WINE SALES in grocery stores apparently died yesterday after State Rep. Joni Jenkins, chair of the Licensing & Occupations Committee, said she didn't plan to give the bill a hearing because it arrived too late in the session, according to local reports.
Until tomorrow, Megan
“In attempts to improve your character, know what is in your power and what is beyond it.”
-Francis Thompson
--------- Sell Day Calendar ----------
Today's Sell Day: 2
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 1:20 PM
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