Tequila Surges Ahead in February
The rate of growth for spirits slowed in the four weeks to February 24, with dollar sales up 2.1% and volume up 0.4%, according to IRI food and drug scans. In comparison, spirits sales in January increased 7.8% and volume rose 5%.
The fastest growing spirits category continues to be tequila, with dollar sales growing 8.7% and volumes up 5.3%. Vodka remained in second place in terms of dollar sales (up 4.7%), while volume grew 3.4%. Meanwhile, the rate of growth for rum slowed a bit in February after coming slightly ahead of vodka in January. Dollar sales of rum grew 3.5% and volume rose 1.8%. Brandy surprisingly fared better then rum, with dollar sales up 4.1% and volume up 4.3%.
Sales of whiskey and gin were virtually flat, both up 0.8%, respectively, while volume declined
-1.7% for whiskey and -2.1% for gin. Cognac was once again in big declines, both in dollar sales (-4.8%) and volume (-6.8%). Irish whiskey continued to show the highest rate of growth for whiskey in February. Dollar sales grew 25.4% and volume rose 24.4%. Scotch whisky dollar value rose 0.3% and North American was up 0.5%.
PRICE CATEGORIES. Mid-value vodka did slightly better then ultra-premium vodka, with mid-value dollar sales up 5.4% and ultra-premium sales increasing 5.2%, respectively. Volumes of ultra-premium vodka, however, were much higher, up 7.5%, while mid-value vodka rose 5.8%.
Ultra-premium whiskey was once again the fastest growing price category in terms of dollar sales, rising 6%. Volumes, however, declined -1.6%.
Ultra-premium rum again made huge leaps in value, rising 134.2%. Volume grew 161.4%. The second fastest growing price category, value rum, was far behind in dollar sales (3.5%) and volume (1.2%).
Expensive tequila is apparently all the craze today, with ultra-premium taking the cake. The value of ultra-premium tequila rose 30%, while volume grew 33%. The next in line, super-premium tequila, increased 18.2% in dollar sales and 22.7% in volume.
Gin, meanwhile, only saw dollar sales grow in the premium price category. Premium gin’s retail value grew 3.7% in February, while volumes grew 3%. Ultra-premium gin declined a whopping
-8.5% in value and -8.8% in volume.
BRAND RANK. Diageo’s Smirnoff Vodka gained 0.8 share points and its dollar sales rose 8.7% from the same period last year. Bacardi lost -0.5 share points but gained 2.2% of dollar sales. Captain Morgan (owned by Diageo), meanwhile, gained 0.2 share points and jumped 4% in value. Jack Daniels’ (owned by Brown-Forman) share was flat in February as it rose 0.4% in dollar sales. Lastly, Absolut gained 0.6 share points and rose 10% in dollar sales.
As we mentioned earlier, higher priced tequila is performing especially well in the category. Jose Cuervo (Diageo) was down -0.3% in value and lost -3.3 share points. Sauza was up 3.1% in value, but lost a share point. Patron, meanwhile, is on fire, growing 33.2% in dollar sales and gaining 3 share points.
WIRTZ ANNOUNCES STRATEGIC ALIGNMENT
Rocky Wirtz, chairman of the Chicago-based Wirtz Corporation, announced today that the company’s national portfolio of wine, spirit and beer distributorships would be united under a new organizational operation of the Wirtz Beverage Group (WBG). Additional announcements, including corporate leadership, operational efficiencies and strategic partnerships will be forthcoming.
Companies under the new structure include Judge & Dolph and Callison Distributing of Illinois; Hawkeye Wine & Spirits of Iowa; Griggs, Cooper & Co. and Mark VII of Minnesota; DeLuca Liquor & Wine, Coors of Las Vegas, and Silver State Liquor & Wine of Nevada; and Edison Liquor Corporation of Wisconsin.
The new operation will be led by Rocky and include an executive committee to manage the strategic direction of the Wirtz Beverage companies. Each distribution affiliate will report to a state general manager who will oversee state operations under, for example, Wirtz Beverage Nevada. These general managers will comprise the Wirtz Beverage Group operating committee to manage the short-term cross function issues and human resources, finance, IT, sales and marketing and operations functions of the state distribution affiliates.
There’s been a lot of movement in the Wirtz Corp. in the past couple of weeks. Recall that last month, Wirtz Beverage announced a deal with Glazer’s Distributors of Texas to form the largest wholesale distributor in Illinois. We have a feeling that 2008 will see many more changes in the distributor world.
ABSOLUT APOLOGIZES FOR ‘ANTI-AMERICAN’ AD
Several people in the U.S. are angry over an Absolut ad in Mexico that they are calling un-American. The ad depicts what a map of North America might look like “In an Absolut World.” It features a 1830s-era map when Mexico included California, Texas and other southwestern states before the Mexican-American war.
Absolut has reportedly received numerous complains about the ad, which never ran in the U.S. The ad ran for about two months in Mexico and is scheduled to end this week.
Critics say the advertisement adds fire to already heated immigration issues, which Absolut says was not its intention. Calls to boycott Absolut were all over the internet this weekend.
"In no way was it meant to offend or disparage, nor does it advocate an altering of borders, nor does it lend support to any anti-American sentiment, nor does it reflect immigration issues," Absolut said in a statement.
Absolut said the ad was designed for a Mexican audience and intended to recall "a time which the population of Mexico might feel was more ideal," reports the AP.
ITALIAN WINES UNDER INVESTIGATION
Italian authorities are investigating value wines and luxury wines for incidents of adulteration and fraud. Police are reportedly examining the cheap end of the market amid claims that the wine was being cut with sugar, sulphuric and hydrochloric acid, according L'Espresso. Twenty companies are currently being investigated. Two companies based in Taranto and run by the local Sacra Corona Unita mafia were the main source of the bootleg beverage, the report said.
Reports of contaminated wine come more than a week after several countries banned Italian buffalo mozzarella due to fears it was tainted with dioxins from illegal waste burning near Naples, says Reuters.
Italy assured the EU that its wine was safe to drink on Friday (April 4). Italian authorities claim only water and sugar was added to the wines and there is no health risk.
Separately, 600,000 bottles of vintage Brunello di Montalcino have been seized by investigators, who suspect winemakers used grapes other than Sangiovese.
BACARDI LOOKING EASTWARD
Bacardi ceo Andreas Gembler say the company is ready to actively pursue acquisition opportunities in India and China after taking a slower-moving approach in the past. It has traditionally lagged behind Diageo and Pernod in the pursuit for emerging markets, where Bacardi says it will push its Scotch portfolio.
"The message to the team is: premium, premium, premium. The thrust will be on the premium age profiles of Dewar's scotch, and not on the standard offering (Dewar's White Label)," Gembler told the Economic Times.
He also indicated that Bacardi would be interested in a potential move by Vijay Mallya’s United Spirits (USL) for private placement of treasury stocks with a strategic partner.
WSD BRIEFS:
MORE ABSOLUT. Speaking of Absolut, the company is releasing two new print ad executions centered on homosexuality. The ads touch on the issue of gay marriage and the idea that all men are created equal. "As a company, we respect gay men and lesbians not simply in advertising messages, but behind the scenes as well,” said Jeffrey Moran, Absolut spokesperson.
DON SEBASTIANI & SONS are repositioning Smoking Loon and Pepperwood Grove with new upscale packaging, the company said today. In addition to the updated labels, both brands will go up about a dollar in retail price in most markets.
CHAIRMAN OF CONSTELLATION EUROPE, Christopher Carson, has left the company to join Gruppo Italiano Vini as ceo. Carson stepped down as ceo of Constellation Europe in 2005.
WILLIAM GRANT & SONS has appointed Ted Roman as the new senior VP of Sales of William Grant & Sons USA, effective immediately. Roman comes to William Grant & Sons from Pernod Ricard USA where he held the same position.
DISTELL USA has appointed Joanne Newborn to head up Marketing for their North American Wine Division. Her focus will be on several key brands in Distell’s wine portfolio, including Two Oceans, Nederburg, Durbanville Hills, Obikwa and Fleur du Cap in both the United States and Canada.
TODAY’S BORDEAUX. If you are interested in learning more about Today’s Bordeaux wine expo in New York (April 14th), Chicago (April 15th), and Los Angeles (April 17th), click here: www.todaysbordeaux.com
Until tomorrow, Megan
“Youth would be an ideal state if it came a little later in life.”
Herbert Henry Asquith
--------- Sell Day Calendar ----------
Today's Sell Day: 5
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
The fastest growing spirits category continues to be tequila, with dollar sales growing 8.7% and volumes up 5.3%. Vodka remained in second place in terms of dollar sales (up 4.7%), while volume grew 3.4%. Meanwhile, the rate of growth for rum slowed a bit in February after coming slightly ahead of vodka in January. Dollar sales of rum grew 3.5% and volume rose 1.8%. Brandy surprisingly fared better then rum, with dollar sales up 4.1% and volume up 4.3%.
Sales of whiskey and gin were virtually flat, both up 0.8%, respectively, while volume declined
-1.7% for whiskey and -2.1% for gin. Cognac was once again in big declines, both in dollar sales (-4.8%) and volume (-6.8%). Irish whiskey continued to show the highest rate of growth for whiskey in February. Dollar sales grew 25.4% and volume rose 24.4%. Scotch whisky dollar value rose 0.3% and North American was up 0.5%.
PRICE CATEGORIES. Mid-value vodka did slightly better then ultra-premium vodka, with mid-value dollar sales up 5.4% and ultra-premium sales increasing 5.2%, respectively. Volumes of ultra-premium vodka, however, were much higher, up 7.5%, while mid-value vodka rose 5.8%.
Ultra-premium whiskey was once again the fastest growing price category in terms of dollar sales, rising 6%. Volumes, however, declined -1.6%.
Ultra-premium rum again made huge leaps in value, rising 134.2%. Volume grew 161.4%. The second fastest growing price category, value rum, was far behind in dollar sales (3.5%) and volume (1.2%).
Expensive tequila is apparently all the craze today, with ultra-premium taking the cake. The value of ultra-premium tequila rose 30%, while volume grew 33%. The next in line, super-premium tequila, increased 18.2% in dollar sales and 22.7% in volume.
Gin, meanwhile, only saw dollar sales grow in the premium price category. Premium gin’s retail value grew 3.7% in February, while volumes grew 3%. Ultra-premium gin declined a whopping
-8.5% in value and -8.8% in volume.
BRAND RANK. Diageo’s Smirnoff Vodka gained 0.8 share points and its dollar sales rose 8.7% from the same period last year. Bacardi lost -0.5 share points but gained 2.2% of dollar sales. Captain Morgan (owned by Diageo), meanwhile, gained 0.2 share points and jumped 4% in value. Jack Daniels’ (owned by Brown-Forman) share was flat in February as it rose 0.4% in dollar sales. Lastly, Absolut gained 0.6 share points and rose 10% in dollar sales.
As we mentioned earlier, higher priced tequila is performing especially well in the category. Jose Cuervo (Diageo) was down -0.3% in value and lost -3.3 share points. Sauza was up 3.1% in value, but lost a share point. Patron, meanwhile, is on fire, growing 33.2% in dollar sales and gaining 3 share points.
WIRTZ ANNOUNCES STRATEGIC ALIGNMENT
Rocky Wirtz, chairman of the Chicago-based Wirtz Corporation, announced today that the company’s national portfolio of wine, spirit and beer distributorships would be united under a new organizational operation of the Wirtz Beverage Group (WBG). Additional announcements, including corporate leadership, operational efficiencies and strategic partnerships will be forthcoming.
Companies under the new structure include Judge & Dolph and Callison Distributing of Illinois; Hawkeye Wine & Spirits of Iowa; Griggs, Cooper & Co. and Mark VII of Minnesota; DeLuca Liquor & Wine, Coors of Las Vegas, and Silver State Liquor & Wine of Nevada; and Edison Liquor Corporation of Wisconsin.
The new operation will be led by Rocky and include an executive committee to manage the strategic direction of the Wirtz Beverage companies. Each distribution affiliate will report to a state general manager who will oversee state operations under, for example, Wirtz Beverage Nevada. These general managers will comprise the Wirtz Beverage Group operating committee to manage the short-term cross function issues and human resources, finance, IT, sales and marketing and operations functions of the state distribution affiliates.
There’s been a lot of movement in the Wirtz Corp. in the past couple of weeks. Recall that last month, Wirtz Beverage announced a deal with Glazer’s Distributors of Texas to form the largest wholesale distributor in Illinois. We have a feeling that 2008 will see many more changes in the distributor world.
ABSOLUT APOLOGIZES FOR ‘ANTI-AMERICAN’ AD
Several people in the U.S. are angry over an Absolut ad in Mexico that they are calling un-American. The ad depicts what a map of North America might look like “In an Absolut World.” It features a 1830s-era map when Mexico included California, Texas and other southwestern states before the Mexican-American war.
Absolut has reportedly received numerous complains about the ad, which never ran in the U.S. The ad ran for about two months in Mexico and is scheduled to end this week.
Critics say the advertisement adds fire to already heated immigration issues, which Absolut says was not its intention. Calls to boycott Absolut were all over the internet this weekend.
"In no way was it meant to offend or disparage, nor does it advocate an altering of borders, nor does it lend support to any anti-American sentiment, nor does it reflect immigration issues," Absolut said in a statement.
Absolut said the ad was designed for a Mexican audience and intended to recall "a time which the population of Mexico might feel was more ideal," reports the AP.
ITALIAN WINES UNDER INVESTIGATION
Italian authorities are investigating value wines and luxury wines for incidents of adulteration and fraud. Police are reportedly examining the cheap end of the market amid claims that the wine was being cut with sugar, sulphuric and hydrochloric acid, according L'Espresso. Twenty companies are currently being investigated. Two companies based in Taranto and run by the local Sacra Corona Unita mafia were the main source of the bootleg beverage, the report said.
Reports of contaminated wine come more than a week after several countries banned Italian buffalo mozzarella due to fears it was tainted with dioxins from illegal waste burning near Naples, says Reuters.
Italy assured the EU that its wine was safe to drink on Friday (April 4). Italian authorities claim only water and sugar was added to the wines and there is no health risk.
Separately, 600,000 bottles of vintage Brunello di Montalcino have been seized by investigators, who suspect winemakers used grapes other than Sangiovese.
BACARDI LOOKING EASTWARD
Bacardi ceo Andreas Gembler say the company is ready to actively pursue acquisition opportunities in India and China after taking a slower-moving approach in the past. It has traditionally lagged behind Diageo and Pernod in the pursuit for emerging markets, where Bacardi says it will push its Scotch portfolio.
"The message to the team is: premium, premium, premium. The thrust will be on the premium age profiles of Dewar's scotch, and not on the standard offering (Dewar's White Label)," Gembler told the Economic Times.
He also indicated that Bacardi would be interested in a potential move by Vijay Mallya’s United Spirits (USL) for private placement of treasury stocks with a strategic partner.
WSD BRIEFS:
MORE ABSOLUT. Speaking of Absolut, the company is releasing two new print ad executions centered on homosexuality. The ads touch on the issue of gay marriage and the idea that all men are created equal. "As a company, we respect gay men and lesbians not simply in advertising messages, but behind the scenes as well,” said Jeffrey Moran, Absolut spokesperson.
DON SEBASTIANI & SONS are repositioning Smoking Loon and Pepperwood Grove with new upscale packaging, the company said today. In addition to the updated labels, both brands will go up about a dollar in retail price in most markets.
CHAIRMAN OF CONSTELLATION EUROPE, Christopher Carson, has left the company to join Gruppo Italiano Vini as ceo. Carson stepped down as ceo of Constellation Europe in 2005.
WILLIAM GRANT & SONS has appointed Ted Roman as the new senior VP of Sales of William Grant & Sons USA, effective immediately. Roman comes to William Grant & Sons from Pernod Ricard USA where he held the same position.
DISTELL USA has appointed Joanne Newborn to head up Marketing for their North American Wine Division. Her focus will be on several key brands in Distell’s wine portfolio, including Two Oceans, Nederburg, Durbanville Hills, Obikwa and Fleur du Cap in both the United States and Canada.
TODAY’S BORDEAUX. If you are interested in learning more about Today’s Bordeaux wine expo in New York (April 14th), Chicago (April 15th), and Los Angeles (April 17th), click here: www.todaysbordeaux.com
Until tomorrow, Megan
“Youth would be an ideal state if it came a little later in life.”
Herbert Henry Asquith
--------- Sell Day Calendar ----------
Today's Sell Day: 5
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
posted at 11:07 AM
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