France Takes the New World Approach
President Nicolas Sarkozy and the French cabinet approved a five-year plan to modernize its wine industry by simplifying marketing, production and labeling techniques. The proposal was written by the country's Agriculture Ministry as a way to gain back international market share from other wine producing countries, most notably the New World. The measure has been drawn up over the past two years.
“French wine is complicated and often little understood,” the Agriculture Ministry said.
The most controversial initiative, perhaps, is a proposal to create three categories for French wines. A new mid-quality category, called the “Wines of France,” will most closely mirror New World wines by including the grape varietal on the label (instead of grape origin) and using cheaper production practices, such as adding wood chips and tannins.
In another example, certain wines traditionally produced in one area (such as gewurtztramminer) can now be produced anywhere in France and sold under the new Wine of France category.
In addition to the Wine of France, the second category will be directed to a specific area and the third will cover the AOC appellation, of which there are 457.
The proposal is to be signed in August 2009. The French wine industry is cautiously optimistic, although some are disappointed that the proposal doesn’t address whether it is legal to sell and promote wine on the internet.
"It's a way of giving new consumers a taste for wine," said Jean Claude Ruet, chief sommelier at the Paris Ritz hotel. However, "we will not fall as low as the Americans, who make vin rosé that is sugary and fizzy like soda," he continued.
In terms of volume, French exports have fallen behind many New World and Old World countries, but remain at the top in terms of value.
NABCA VOLUMES IN APRIL 2008
In April 2008, spirits volumes in control states grew 1% on an unreported basis once extra selling days were taken into account. On a reported basis, volumes were up 5.2%, according to UBS analyst Melissa Earlam based on NABCA data.
Diageo’s volumes were below the market, growing 3.7%. The company lost some volume share, notably in vodka (+6.4% vs. category +9.3%), rum (+2.8% vs. category +5.7%), cordials (-1% y/y vs. category +1.8% y/y) and tequila (+0.1% y/y vs. category +7.3% y/y). UBS believes it is related to price increased introduced over the last months.
Diageo gained share in Canadian whisky (+5% vs. category +3%) and cocktails (+6.6% vs. category +1.8%).
Pernod’s volumes grew 1.5% year over year with a mixed performance by category. It gained share in Scotch, Cordials and Irish whiskey; but lost share in vodka (-0.2% decline), gin (+1.8% vs. category +3.6%), and brandy/Cognac (-58% vs. category flat) where it is de-emphasizing VS growth.
Brown Forman volumes declined -0.6%. Campari grew 3.9% and Remy rose 10%.
UBS had Buy ratings on Diageo, Pernod, and Campari. They “expect a slowdown in US spirits growth in a recession” but forecast market volume growth of 1.7% and 4.5% in value for 2008.
FOLEY WINE GROUP ACQUIRES VENGE VINEYARDS
William Foley, the head of Foley Wine Group, acquired the Venge Vineyards winery in St. Helena last week. The transaction includes the Venge production facility and 61-acre property, but not the inventory or brand rights. Terms of the sale were not disclosed.
This marks Foley’s second Napa acquisition in six months. In December, he bought Cabernet producer Merus. He will use the Venge facility to produce Merus and a second label, Altus.
According to Wine Spectator, Foley said he is “looking in Oregon, Sonoma and looking at a couple different properties and brands in Napa. I’m trying to round out the portfolio and have 10 to 12 different brands.”
LION NATHAN ACQUIRES CUMULUS GROUP
Australia-based Lion Nathan has acquired the U.S. wine importer Cumulus Wine Inc. (CWI), a subsidiary of the New South Wales based Cumulus Group. The new import company will be called Lion Nathan USA Inc, and will import Lion Nathan's Australian and New Zealand premium wine portfolio in the U.S. market. The brands include Petaluma, St Hallett and Wither Hills, as well as Cumulus brands Rolling, Climbing and Phillip Shaw Wines from the existing CWI portfolio.
An agreement has been reached with current U.S. distributor, Constellation Brands, for the Lion Nathan Australia and New Zealand wine portfolio to move to Lion Nathan USA within the month.
Based in Kansas, Lion Nathan USA's dedicated sales force will be led by President Ron Mertz.
SEBASTIANI LAUNCHES LUXURY NAPA WINE
Don Sebastiani & Sons have released Pennywise, a new luxury Napa Valley label. The winery will release a Napa Valley Cabernet Sauvignon and a Napa Valley Petite Sirah, but the company said production on both wines is “extremely limited.” Pennywise will be marketed by the company’s The Other Guys (TOG) division and will be priced between $25 and $30.
Sebastiani announced earlier this year that it is premiumizing its entire portfolio, hoping to appear in more high-end retail stores and restaurants. TOG portfolio experienced a 200% increase in growth in 2007 and is expected to equal or surpass that performance in 2008, according to Sebastiani.
AMERICANS BEAT ITALIANS IN TOTAL WINE CONSUMPTION
In 2007, the U.S. increased its wine consumption for the 14th consecutive year, gaining 4% in volume. Americans drank more than Italians for the first time ever and were beaten only by the French in total wine consumed, according the 2007 edition of The Global Drinks Market: Impact Databank Review and Forecast. American consumption is expected to overtake France as the world’s largest wine-consuming nation within five years.
On an individual basis, Americans drank only 9 liters per adult in 2007, while the French and Italians consumed 52 liters and 46 liters, respectively. China was the fastest growing wine market last year, while Australia, South African, Canada and Chile also performed well.
GABRIEL MEFFRE LAUNCHES AMERICAN UNIT
Bertrand Bonnet, president and chief of Gabriel Meffre, announced the formation of Gabriel Meffre America Inc. The new Princeton, New Jersey-based national importing company will market many of the leading estate-bottled, Appellation d’Origine Controlée (AOC) and regional wines the company owns and sells in France as well as exports to more than 40 countries.
Gabriel Meffre’s brands include: the Laurus line, including Condrieu, Côte-Rôtie, and Hermitage; Domaine de Longue Toque in Gigondas; Château Grand Escalion in Costières de Nîmes; La Chasse du Pape in Côtes du Rhone; and Wild Pig, a line of premium wines from the Languedoc, which are shipped in wood cases.
Lionel de Ravel was appointed National Director of Gabriel Meffre America, effective immediately.
RUSSIAN’S DRINKING MORE HIGH-END
As Russians show a higher propensity towards high-end alternatives to vodka, companies like Diageo and Pernod are taking note. An article in the Financial Times says Russia has become the biggest market for Johnnie Walker Blue Label, in addition to other expensive liquors, which has prompted Diageo to import more aged versions of its Talisker whisky and Tanqueray 10 gin next year.
"It is very much a status symbol to be seen to be drinking Johnnie Walker," said managing director John O'Keeffe. "People have been finding their wealth only recently so they want to show they've made it."
Pernod’s managing director Pierre Pringuet also said last week that the company is looking to grow in emerging markets, specifically Russia. The French company plans on importing its newly acquired Absolut vodka. Pringuet admitted that Absolut will never compete with the cheaper vodka brands Russian drinks with meals, but forecasts Absolut sales will grow “double digits” in Russia as people use it in cocktails.
WSD BRIEFS:
VINTRUST HAS EXPANDED ITS FACILITIES INTO SONOMA COUNTY with a new warehouse that doubles its winery fulfillment and storage capacity. Vintrust specializes in consumer-direct fulfillment and case goods wine storage for some of California’s elite wineries, mainly small- to medium-sized. The new facility opens in July and is located in Santa Rosa near Highway 12 and Highway 101.
AT ONE POINT, W.L. LYONS BROWN III expected to stay at Brown-Forman forever. Now, he is running his own company, Altamar Brands, which owns Kubler Absinthe and Right Gin. To read an interesting article about Brown and his departure from Brown-Forman, click here.
Until tomorrow, Megan
“Did you ever walk into a room and forget why you walked in? I think that's how dogs spend their lives.”
Sue Murphy
--------- Sell Day Calendar ----------
Today's Sell Day: 23
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
“French wine is complicated and often little understood,” the Agriculture Ministry said.
The most controversial initiative, perhaps, is a proposal to create three categories for French wines. A new mid-quality category, called the “Wines of France,” will most closely mirror New World wines by including the grape varietal on the label (instead of grape origin) and using cheaper production practices, such as adding wood chips and tannins.
In another example, certain wines traditionally produced in one area (such as gewurtztramminer) can now be produced anywhere in France and sold under the new Wine of France category.
In addition to the Wine of France, the second category will be directed to a specific area and the third will cover the AOC appellation, of which there are 457.
The proposal is to be signed in August 2009. The French wine industry is cautiously optimistic, although some are disappointed that the proposal doesn’t address whether it is legal to sell and promote wine on the internet.
"It's a way of giving new consumers a taste for wine," said Jean Claude Ruet, chief sommelier at the Paris Ritz hotel. However, "we will not fall as low as the Americans, who make vin rosé that is sugary and fizzy like soda," he continued.
In terms of volume, French exports have fallen behind many New World and Old World countries, but remain at the top in terms of value.
NABCA VOLUMES IN APRIL 2008
In April 2008, spirits volumes in control states grew 1% on an unreported basis once extra selling days were taken into account. On a reported basis, volumes were up 5.2%, according to UBS analyst Melissa Earlam based on NABCA data.
Diageo’s volumes were below the market, growing 3.7%. The company lost some volume share, notably in vodka (+6.4% vs. category +9.3%), rum (+2.8% vs. category +5.7%), cordials (-1% y/y vs. category +1.8% y/y) and tequila (+0.1% y/y vs. category +7.3% y/y). UBS believes it is related to price increased introduced over the last months.
Diageo gained share in Canadian whisky (+5% vs. category +3%) and cocktails (+6.6% vs. category +1.8%).
Pernod’s volumes grew 1.5% year over year with a mixed performance by category. It gained share in Scotch, Cordials and Irish whiskey; but lost share in vodka (-0.2% decline), gin (+1.8% vs. category +3.6%), and brandy/Cognac (-58% vs. category flat) where it is de-emphasizing VS growth.
Brown Forman volumes declined -0.6%. Campari grew 3.9% and Remy rose 10%.
UBS had Buy ratings on Diageo, Pernod, and Campari. They “expect a slowdown in US spirits growth in a recession” but forecast market volume growth of 1.7% and 4.5% in value for 2008.
FOLEY WINE GROUP ACQUIRES VENGE VINEYARDS
William Foley, the head of Foley Wine Group, acquired the Venge Vineyards winery in St. Helena last week. The transaction includes the Venge production facility and 61-acre property, but not the inventory or brand rights. Terms of the sale were not disclosed.
This marks Foley’s second Napa acquisition in six months. In December, he bought Cabernet producer Merus. He will use the Venge facility to produce Merus and a second label, Altus.
According to Wine Spectator, Foley said he is “looking in Oregon, Sonoma and looking at a couple different properties and brands in Napa. I’m trying to round out the portfolio and have 10 to 12 different brands.”
LION NATHAN ACQUIRES CUMULUS GROUP
Australia-based Lion Nathan has acquired the U.S. wine importer Cumulus Wine Inc. (CWI), a subsidiary of the New South Wales based Cumulus Group. The new import company will be called Lion Nathan USA Inc, and will import Lion Nathan's Australian and New Zealand premium wine portfolio in the U.S. market. The brands include Petaluma, St Hallett and Wither Hills, as well as Cumulus brands Rolling, Climbing and Phillip Shaw Wines from the existing CWI portfolio.
An agreement has been reached with current U.S. distributor, Constellation Brands, for the Lion Nathan Australia and New Zealand wine portfolio to move to Lion Nathan USA within the month.
Based in Kansas, Lion Nathan USA's dedicated sales force will be led by President Ron Mertz.
SEBASTIANI LAUNCHES LUXURY NAPA WINE
Don Sebastiani & Sons have released Pennywise, a new luxury Napa Valley label. The winery will release a Napa Valley Cabernet Sauvignon and a Napa Valley Petite Sirah, but the company said production on both wines is “extremely limited.” Pennywise will be marketed by the company’s The Other Guys (TOG) division and will be priced between $25 and $30.
Sebastiani announced earlier this year that it is premiumizing its entire portfolio, hoping to appear in more high-end retail stores and restaurants. TOG portfolio experienced a 200% increase in growth in 2007 and is expected to equal or surpass that performance in 2008, according to Sebastiani.
AMERICANS BEAT ITALIANS IN TOTAL WINE CONSUMPTION
In 2007, the U.S. increased its wine consumption for the 14th consecutive year, gaining 4% in volume. Americans drank more than Italians for the first time ever and were beaten only by the French in total wine consumed, according the 2007 edition of The Global Drinks Market: Impact Databank Review and Forecast. American consumption is expected to overtake France as the world’s largest wine-consuming nation within five years.
On an individual basis, Americans drank only 9 liters per adult in 2007, while the French and Italians consumed 52 liters and 46 liters, respectively. China was the fastest growing wine market last year, while Australia, South African, Canada and Chile also performed well.
GABRIEL MEFFRE LAUNCHES AMERICAN UNIT
Bertrand Bonnet, president and chief of Gabriel Meffre, announced the formation of Gabriel Meffre America Inc. The new Princeton, New Jersey-based national importing company will market many of the leading estate-bottled, Appellation d’Origine Controlée (AOC) and regional wines the company owns and sells in France as well as exports to more than 40 countries.
Gabriel Meffre’s brands include: the Laurus line, including Condrieu, Côte-Rôtie, and Hermitage; Domaine de Longue Toque in Gigondas; Château Grand Escalion in Costières de Nîmes; La Chasse du Pape in Côtes du Rhone; and Wild Pig, a line of premium wines from the Languedoc, which are shipped in wood cases.
Lionel de Ravel was appointed National Director of Gabriel Meffre America, effective immediately.
RUSSIAN’S DRINKING MORE HIGH-END
As Russians show a higher propensity towards high-end alternatives to vodka, companies like Diageo and Pernod are taking note. An article in the Financial Times says Russia has become the biggest market for Johnnie Walker Blue Label, in addition to other expensive liquors, which has prompted Diageo to import more aged versions of its Talisker whisky and Tanqueray 10 gin next year.
"It is very much a status symbol to be seen to be drinking Johnnie Walker," said managing director John O'Keeffe. "People have been finding their wealth only recently so they want to show they've made it."
Pernod’s managing director Pierre Pringuet also said last week that the company is looking to grow in emerging markets, specifically Russia. The French company plans on importing its newly acquired Absolut vodka. Pringuet admitted that Absolut will never compete with the cheaper vodka brands Russian drinks with meals, but forecasts Absolut sales will grow “double digits” in Russia as people use it in cocktails.
WSD BRIEFS:
VINTRUST HAS EXPANDED ITS FACILITIES INTO SONOMA COUNTY with a new warehouse that doubles its winery fulfillment and storage capacity. Vintrust specializes in consumer-direct fulfillment and case goods wine storage for some of California’s elite wineries, mainly small- to medium-sized. The new facility opens in July and is located in Santa Rosa near Highway 12 and Highway 101.
AT ONE POINT, W.L. LYONS BROWN III expected to stay at Brown-Forman forever. Now, he is running his own company, Altamar Brands, which owns Kubler Absinthe and Right Gin. To read an interesting article about Brown and his departure from Brown-Forman, click here.
Until tomorrow, Megan
“Did you ever walk into a room and forget why you walked in? I think that's how dogs spend their lives.”
Sue Murphy
--------- Sell Day Calendar ----------
Today's Sell Day: 23
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 1:36 PM
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