Economy Hurts On-Premise Drinking
Research from the Nielsen company and Bevinco indicates that fewer consumers are drinking at bars, restaurants and nightclubs and that on-premise sales of alcoholic beverages have been “considerably impacted” by the declining economy.
LESS CONSUMER TRAFFIC. More than 40% of bar managers, bar owners, and bartenders surveyed say they have seen a decrease in consumer traffic, while 25% note a decrease in the number of drinks ordered and 22% say that customers are ordering less expensive drinks. The casual dining sector appears to be the hardest hit, with 46% of respondents in this area reporting a decline.
Consumers say they are cutting back too. About 66% of fine dining patrons admit they are going out less often compared to a year ago, while 65% of nightclub patrons, 55% of bar patrons, 59% of casino and resort patrons and 52% of casual dining visitors said the same thing.
On-premise venues on the East and West coasts report the greatest declines, with owners and operators in California and Florida citing significant decreases in consumer traffic: 55% and 52% respectively. Slightly more than half of Texas operators report a decrease in consumer traffic, while nearly one-third see patrons ordering less expensive drinks. In addition, 43% of Florida operators say they’ve experienced a decrease in the number of drinks ordered. Just one-third of establishments in Florida and California claim no impact overall.
BEER FAIRS THE BEST. According to Nielsen and Bevinco’s research, beer sales are affected the least by the economic downturn, with wine sales showing the most impact. Nearly half of people surveyed rated beer as having the “best” sales trend of the three categories, followed by spirits at 40%, while only 11% cited wine as having the best sales trend of the three.
“Wine is more likely to be consumed in dining establishments, which have been more heavily impacted by the economy than bars or nightclubs,” said Nielsen VP Danny Brager. “At the same time, beer and spirit companies vigorously market their product to bartenders, likely resulting in greater ‘share of mind’ compared to wine among servers and bartenders.”
SEEKING CHEAPER ALTERNATIVES. Fourteen percent of operators report customers are ordering more well or house drinks, while 13% report greater sales of beer “on draft” rather than in bottles. Wine drinkers are increasingly opting for house varieties more often than before, according to 9% of operators surveyed.
ITALIAN GOVERNMENT CERTIFIES BRUNELLO EXPORTS
The Italian government has created a certification process for Brunello producers exporting to the United States, which has effectively ended the U.S. Alcohol and Tobacco Tax and Trade Bureau’s (TTB) embargo to ban all Brunello. The threats were made after the Italian government was unable to guarantee that exported Brunello was made with 100% Sangiovese grapes.
Since November 2007, the Italian police have been investigating whether Montalcino producers are using grapes other than Sangiovese in their Brunellos, in violation of DOCG (Denominazione di Origine Controllata e Garantita) rules. Although investigations continue in Italy, Brunello producers that pass an inspection are clear to export to the United States, reports Wine Spectator.
The Florence office of the ICQ (Central Inspectorate for the Control of Quality of Agri-food) is now responsible for authenticating Brunello wines with lab tests. Successful producers should receive a certificate within 15 days allowing them to export to the U.S. The TTB confirmed the certification process satisfies the agency’s requirement.
COCA-COLA AMATIL NOT BIDDING FOR FOSTER’S
Foster’s Group announced last month that CEO Trevor O’Hoy was stepping down amidst a $700 million write-down after the company admitted it had paid too much for the Beringer and Southcorp acquisitions. As a result, some analysts have speculated that Foster’s may consider selling its wine business in order to focus exclusively on its still profitable beer business, while others say Foster’s is not in the position to sell.
Coca-Cola Amatil ceo Terry Davis told The Australian that the company is not seriously looking at Foster’s because it has too many operational issues to consider a bid at this stage.
"You can never say never, but at this price I can say we will not bid for Foster's," Davis was quoted as saying.
Davis has reportedly said on several occasions that he does not believe beer and wine go well together.
FRENCH WINEMAKERS CONSIDER SCREWCAPS
Several of France’s top winemakers are considering screw caps for their wines, according to an article in The Telegraph. The article cites a wine expert that claims two of the world’s top names, Domaine de la Romanée-Conti in Burgundy and Bordeaux's Chateau Margaux, are looking into screw caps.
Romanée-Conti would not comment on the issue, but the director general of Chateau Margaux confirmed the domaine was trying out screw caps although it was too early to say if they would use them.
Burgundy’s Jean-Claude Boisset is already using screw caps on top wines, including a Chambertin grand cru 2005 that sells for almost £100 a bottle.
"We're not staying that corks are bad, it's just that screw tops are better," said Gregory Patriat, in charge of bottling at Boisset, to The Telegraph.
Plastic corks are also a possibility, but growers say they can only be used on bottles not meant to age past three years.
The number of wines using screw tops has grown from 300 million in 2003 to 2.5 billion in 2008. Famed wine critic Robert Parker also predicts that wines with corks will be in the minority by 2015.
CLICK WINE GROUP INTRODUCES NEW MALBEC
Click Wine Group is launching High Note, an Argentinean Malbec from the Uco Valley in Mendoza. The wine was created by Peter Click, CEO of Click Wine Group, with the idea that Malbec will be the next “sought-after varietal,” according to the company. High Note is available nationwide for the suggested retail price of $12.99.
Dollar sales of Argentinean wine in the U.S. grew 28% in 2007, while Malbec dollar sales were up 87% in the 52 weeks ending May 3, 2008, according to Nielsen.
Recall that Winebow, a New Jersey-based importer, recently bought Click Wine Group for an undisclosed price earlier this summer. Founder Peter Click will remain as president of Click Wine Group and will also become executive vice president of Winebow.
PERNOD RICARD SPENDS $320K ON LOBBYING
Pernod reportedly spent over $320k in the first quarter lobbying the U.S. government on relaxing or lifting the U.S. trade embargo on Cuba, according to a disclosure report. The company also lobbied on a trademark dispute with Bacardi over the Havana Club brand. Pernod struck a partnership with the Cuban government in the mid-1990s to sell Cuba’s Havana Club rum everywhere outside of the U.S., and claims Bacardi does not have the right to use the Havana Club trademark in the U.S.
WSD BRIEFS:
CANADIAN WINE COMPANY DIAMOND ESTATES HAS ACQUIRED 20 BEES WINERY (originally owned by Niagara Vintners Inc.) in the town Niagra-on-the-Lake. Diamond Estates also owns EastDell Estates, Lakeview Cellars and Birchwood Estates wineries and Dan Aykroyd Wines. Diamond Estates plans to keep the 20 Bees brand as well as add some additional brands. Terms of the deal were not disclosed.
A DAILY GLASS OF RED WINE COULD HELP PREVENT BREAST CANCER, researchers at the University of Nebraska Medical Centre are saying. The helpful agent, once again, is resveratrol – a chemical found in the skin of grapes and other berries.
COCKATOO RIDGE WINES EXEC CHAIRMAN IVAN LIMB is stepping down but will remain on the board as a non-executive director. He oversaw Cockatoo’s merger with Australian Commercial Wines and its integration into the business. Stuart Richardson will replace Ivan.
SHIPCOMPLIANT AND eWINERY SOLUTIONS announced the launch of eWinery's real-time integration with ShipCompliant's compliance engine. The full integration allows wineries (or retailers) to check online orders for compliance at the time of purchase via eWinery ecommerce sites.
Until tomorrow, Megan
“There's always somebody who is paid too much, and taxed too little - and it's always somebody else.”
Cullen Hightower
--------- Sell Day Calendar ----------
Today’s Sell Day: 6
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
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.
LESS CONSUMER TRAFFIC. More than 40% of bar managers, bar owners, and bartenders surveyed say they have seen a decrease in consumer traffic, while 25% note a decrease in the number of drinks ordered and 22% say that customers are ordering less expensive drinks. The casual dining sector appears to be the hardest hit, with 46% of respondents in this area reporting a decline.
Consumers say they are cutting back too. About 66% of fine dining patrons admit they are going out less often compared to a year ago, while 65% of nightclub patrons, 55% of bar patrons, 59% of casino and resort patrons and 52% of casual dining visitors said the same thing.
On-premise venues on the East and West coasts report the greatest declines, with owners and operators in California and Florida citing significant decreases in consumer traffic: 55% and 52% respectively. Slightly more than half of Texas operators report a decrease in consumer traffic, while nearly one-third see patrons ordering less expensive drinks. In addition, 43% of Florida operators say they’ve experienced a decrease in the number of drinks ordered. Just one-third of establishments in Florida and California claim no impact overall.
BEER FAIRS THE BEST. According to Nielsen and Bevinco’s research, beer sales are affected the least by the economic downturn, with wine sales showing the most impact. Nearly half of people surveyed rated beer as having the “best” sales trend of the three categories, followed by spirits at 40%, while only 11% cited wine as having the best sales trend of the three.
“Wine is more likely to be consumed in dining establishments, which have been more heavily impacted by the economy than bars or nightclubs,” said Nielsen VP Danny Brager. “At the same time, beer and spirit companies vigorously market their product to bartenders, likely resulting in greater ‘share of mind’ compared to wine among servers and bartenders.”
SEEKING CHEAPER ALTERNATIVES. Fourteen percent of operators report customers are ordering more well or house drinks, while 13% report greater sales of beer “on draft” rather than in bottles. Wine drinkers are increasingly opting for house varieties more often than before, according to 9% of operators surveyed.
ITALIAN GOVERNMENT CERTIFIES BRUNELLO EXPORTS
The Italian government has created a certification process for Brunello producers exporting to the United States, which has effectively ended the U.S. Alcohol and Tobacco Tax and Trade Bureau’s (TTB) embargo to ban all Brunello. The threats were made after the Italian government was unable to guarantee that exported Brunello was made with 100% Sangiovese grapes.
Since November 2007, the Italian police have been investigating whether Montalcino producers are using grapes other than Sangiovese in their Brunellos, in violation of DOCG (Denominazione di Origine Controllata e Garantita) rules. Although investigations continue in Italy, Brunello producers that pass an inspection are clear to export to the United States, reports Wine Spectator.
The Florence office of the ICQ (Central Inspectorate for the Control of Quality of Agri-food) is now responsible for authenticating Brunello wines with lab tests. Successful producers should receive a certificate within 15 days allowing them to export to the U.S. The TTB confirmed the certification process satisfies the agency’s requirement.
COCA-COLA AMATIL NOT BIDDING FOR FOSTER’S
Foster’s Group announced last month that CEO Trevor O’Hoy was stepping down amidst a $700 million write-down after the company admitted it had paid too much for the Beringer and Southcorp acquisitions. As a result, some analysts have speculated that Foster’s may consider selling its wine business in order to focus exclusively on its still profitable beer business, while others say Foster’s is not in the position to sell.
Coca-Cola Amatil ceo Terry Davis told The Australian that the company is not seriously looking at Foster’s because it has too many operational issues to consider a bid at this stage.
"You can never say never, but at this price I can say we will not bid for Foster's," Davis was quoted as saying.
Davis has reportedly said on several occasions that he does not believe beer and wine go well together.
FRENCH WINEMAKERS CONSIDER SCREWCAPS
Several of France’s top winemakers are considering screw caps for their wines, according to an article in The Telegraph. The article cites a wine expert that claims two of the world’s top names, Domaine de la Romanée-Conti in Burgundy and Bordeaux's Chateau Margaux, are looking into screw caps.
Romanée-Conti would not comment on the issue, but the director general of Chateau Margaux confirmed the domaine was trying out screw caps although it was too early to say if they would use them.
Burgundy’s Jean-Claude Boisset is already using screw caps on top wines, including a Chambertin grand cru 2005 that sells for almost £100 a bottle.
"We're not staying that corks are bad, it's just that screw tops are better," said Gregory Patriat, in charge of bottling at Boisset, to The Telegraph.
Plastic corks are also a possibility, but growers say they can only be used on bottles not meant to age past three years.
The number of wines using screw tops has grown from 300 million in 2003 to 2.5 billion in 2008. Famed wine critic Robert Parker also predicts that wines with corks will be in the minority by 2015.
CLICK WINE GROUP INTRODUCES NEW MALBEC
Click Wine Group is launching High Note, an Argentinean Malbec from the Uco Valley in Mendoza. The wine was created by Peter Click, CEO of Click Wine Group, with the idea that Malbec will be the next “sought-after varietal,” according to the company. High Note is available nationwide for the suggested retail price of $12.99.
Dollar sales of Argentinean wine in the U.S. grew 28% in 2007, while Malbec dollar sales were up 87% in the 52 weeks ending May 3, 2008, according to Nielsen.
Recall that Winebow, a New Jersey-based importer, recently bought Click Wine Group for an undisclosed price earlier this summer. Founder Peter Click will remain as president of Click Wine Group and will also become executive vice president of Winebow.
PERNOD RICARD SPENDS $320K ON LOBBYING
Pernod reportedly spent over $320k in the first quarter lobbying the U.S. government on relaxing or lifting the U.S. trade embargo on Cuba, according to a disclosure report. The company also lobbied on a trademark dispute with Bacardi over the Havana Club brand. Pernod struck a partnership with the Cuban government in the mid-1990s to sell Cuba’s Havana Club rum everywhere outside of the U.S., and claims Bacardi does not have the right to use the Havana Club trademark in the U.S.
WSD BRIEFS:
CANADIAN WINE COMPANY DIAMOND ESTATES HAS ACQUIRED 20 BEES WINERY (originally owned by Niagara Vintners Inc.) in the town Niagra-on-the-Lake. Diamond Estates also owns EastDell Estates, Lakeview Cellars and Birchwood Estates wineries and Dan Aykroyd Wines. Diamond Estates plans to keep the 20 Bees brand as well as add some additional brands. Terms of the deal were not disclosed.
A DAILY GLASS OF RED WINE COULD HELP PREVENT BREAST CANCER, researchers at the University of Nebraska Medical Centre are saying. The helpful agent, once again, is resveratrol – a chemical found in the skin of grapes and other berries.
COCKATOO RIDGE WINES EXEC CHAIRMAN IVAN LIMB is stepping down but will remain on the board as a non-executive director. He oversaw Cockatoo’s merger with Australian Commercial Wines and its integration into the business. Stuart Richardson will replace Ivan.
SHIPCOMPLIANT AND eWINERY SOLUTIONS announced the launch of eWinery's real-time integration with ShipCompliant's compliance engine. The full integration allows wineries (or retailers) to check online orders for compliance at the time of purchase via eWinery ecommerce sites.
Until tomorrow, Megan
“There's always somebody who is paid too much, and taxed too little - and it's always somebody else.”
Cullen Hightower
--------- Sell Day Calendar ----------
Today’s Sell Day: 6
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
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 1:18 PM
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