Premium Spirits Pick Up Globally
The globalization of spirits companies have changed the way countries drink as the big boys make inroads into emerging and even developed markets.
Vodka by far is the world’s most popular spirit, although whiskey, particularly Scotch, is experiencing “very good times,” according to an article in Business Week.
“With the opening up of Russia and Eastern Europe, the growing prosperity in Asia and South America, and above all the Westernization of popular culture, Western spirit brands have become the drink of choice for the emerging middle class from Shanghai to São Paulo—and the category that's leading the way is Scotch whisky.”
The fact that Scotch comes in blends, super-premium blends and single malts gives it an advantage. For example, single malt Scotch is growing at double digit rates in the U.S. and Britain, but blended Scotch is flat or declining. However, Scotch has never really been American’s cup of tea.
“The U.S. is somewhat of an exception to the worldwide Scotch story as it is vodka and rum that are the big growth categories here, largely the result of the current cocktail craze, followed by tequila.”
Americans prefer bourbon over Scotch, though American whiskey has not caught on as quickly in the rest of the world. However, some of the major labels including Jack Daniel’s and Jim Beam are entering markets such as Eastern Europe, Russia and China.
Recently, vodka surpassed Scotch as the top selling spirit in Britain, although Scotch remains the most popular in France. Interestingly, the U.S. is the largest market for cognac while the French have turned away from the category. India is the biggest consumer of “Scotch,” although it is usually domestic (and therefore not authentic) brands and not traditional Scotch that they drink. As a result, the Scotch Whisky Association has in the past and is currently fighting to dispel what they consider unfair tariffs on imported spirits in India.
ECONOMY WEIGHS ON WHOLE FOODS
High-end grocer Whole Foods missed Wall Street’s estimates this week when it reported the weakest same store sales in its history. Comparable store sales rose 2.6% and identical store sales rose 1.9%. CEO John Mackey blamed the U.S. housing slowdown and higher gas prices, saying “people aren't driving as far, as frequently to our stores as they used to."
Mackey said the company is misperceived in yesterday’s conference call. In effort to change its image, Whole Foods will offer more value brands and cutback its plan to open more stores.
"You have a company that used to post above the main-line grocery stores posting more in-line with grocery, so I think that's suggesting a share shift," Edward Jones analyst Stephanie Hoff was quoted saying in Reuters.
However, she doesn’t "think that it means it's a permanent shift. I just think the economy is weighing on everybody."
The grocer said it now expects sales growth of 6 to 10% for the coming year, rather than the previously stated 25 to 30% growth. It also said identical-store sales are expected to grow 0 to 4% down from the previously anticipated 7.5 to 9.5% growth.
The company's shares fell about 17% from $22.92 to $18.93 in trading after the bell yesterday on Nasdaq.
STUDY SHOWS AMERICANS CHOOSING WINE IN OLD AGE
A new study suggests Americans are drinking less alcohol and choosing wine over beer as they get older. The findings are based on a fifty year study of over 8,000 white adults in Massachusetts. Men and women in each generation drank less as they got older, and each generation drank less than previous generations. Participants also drank less beer and more wine as they got older.
Researcher Yuqing Zhang, DSc, of Boston University School of Medicine, told WebMD that he really doesn’t know why average alcohol use drops from generation to generation.
The results are published in The American Journal of Medicine. WebMD said it is not clear if the results apply to all U.S. adults.
SOCO LAUNCHES “SUSPENDED MOMENTS”
Southern Comfort is launching the brand’s new TV creative “Suspended Moments” on 14 cable networks in September, said the company in a statement. The effort is part of the heaviest advertising weight ever for the brand during September, November and December.
“Suspended Moments is an exciting new piece of creative and some of the best we’ve ever done,” said Campbell Brown, Vice President, Director Southern Comfort Americas. "We’re showcasing our SoCo & Lime focus by capturing those great moments where friends connect for a legendary night out, something that will resonate with most people.”
WSD BRIEFS:
BACARDI IS REPORTEDLY REVIEWING its multi-million dollar advertising roster, led by Adam Hillyer, Bacardi’s global marketing director, reports Brand Republic. WPP’s Y&R group currently handles the majority of Bacardi’s global creative, including its flagship rum. The publication asserts that Bacardi “is looking for a network agency with a strong presence in London, New York, and the sub markets of Spain, Russia and Germany.” Besides Bacardi rum, other brands that could be affected include Grey Goose, 42 Below, Bombay Sapphire and Martini.
SCIENTISTS ARE DEVELOPING an electronic tongue that can distinguish between grape varieties and vintages. The device is still in the early stages of development but researchers at the Barcelona Institute of Microelectronics hope it will eventually prove more reliable than the human palette. The e-tongue is based on an array of tiny synthetic membranes built onto a single silicon chip called a multisensory. It can already distinguish between four grape varieties: Airén, Chardonnay, Malvasia and Macabeu.
RUTH’S HOSPITALITY GROUP named Michael P. O'Donnell president and ceo Aug. 7. He also was named to the company's board of directors. O’Donnell most recently served as ceo at Champps Entertainment Inc. and has also served as ceo of Sbarro. Former ceo Craig Miller left the company in April amid slowed sales at Ruth's Chris Steak House and after the $92 million purchase of 22 Mitchell's Fish Market and Cameron's Steakhouse restaurants.
BRINKER INTERNATIONAL says it is looking to sell a majority interest in the Macaroni Grill chain after previously considering a sale of the entire brand, reports National Restaurant News.
Until tomorrow, Megan
“In the end, everything is a gag.”
Charlie Chaplin
--------- Sell Day Calendar ----------
Today’s Sell Day: 4
Sell days this month: 21
Sell days this month last year: 23
This month ends on a: Fri
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
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.
Vodka by far is the world’s most popular spirit, although whiskey, particularly Scotch, is experiencing “very good times,” according to an article in Business Week.
“With the opening up of Russia and Eastern Europe, the growing prosperity in Asia and South America, and above all the Westernization of popular culture, Western spirit brands have become the drink of choice for the emerging middle class from Shanghai to São Paulo—and the category that's leading the way is Scotch whisky.”
The fact that Scotch comes in blends, super-premium blends and single malts gives it an advantage. For example, single malt Scotch is growing at double digit rates in the U.S. and Britain, but blended Scotch is flat or declining. However, Scotch has never really been American’s cup of tea.
“The U.S. is somewhat of an exception to the worldwide Scotch story as it is vodka and rum that are the big growth categories here, largely the result of the current cocktail craze, followed by tequila.”
Americans prefer bourbon over Scotch, though American whiskey has not caught on as quickly in the rest of the world. However, some of the major labels including Jack Daniel’s and Jim Beam are entering markets such as Eastern Europe, Russia and China.
Recently, vodka surpassed Scotch as the top selling spirit in Britain, although Scotch remains the most popular in France. Interestingly, the U.S. is the largest market for cognac while the French have turned away from the category. India is the biggest consumer of “Scotch,” although it is usually domestic (and therefore not authentic) brands and not traditional Scotch that they drink. As a result, the Scotch Whisky Association has in the past and is currently fighting to dispel what they consider unfair tariffs on imported spirits in India.
ECONOMY WEIGHS ON WHOLE FOODS
High-end grocer Whole Foods missed Wall Street’s estimates this week when it reported the weakest same store sales in its history. Comparable store sales rose 2.6% and identical store sales rose 1.9%. CEO John Mackey blamed the U.S. housing slowdown and higher gas prices, saying “people aren't driving as far, as frequently to our stores as they used to."
Mackey said the company is misperceived in yesterday’s conference call. In effort to change its image, Whole Foods will offer more value brands and cutback its plan to open more stores.
"You have a company that used to post above the main-line grocery stores posting more in-line with grocery, so I think that's suggesting a share shift," Edward Jones analyst Stephanie Hoff was quoted saying in Reuters.
However, she doesn’t "think that it means it's a permanent shift. I just think the economy is weighing on everybody."
The grocer said it now expects sales growth of 6 to 10% for the coming year, rather than the previously stated 25 to 30% growth. It also said identical-store sales are expected to grow 0 to 4% down from the previously anticipated 7.5 to 9.5% growth.
The company's shares fell about 17% from $22.92 to $18.93 in trading after the bell yesterday on Nasdaq.
STUDY SHOWS AMERICANS CHOOSING WINE IN OLD AGE
A new study suggests Americans are drinking less alcohol and choosing wine over beer as they get older. The findings are based on a fifty year study of over 8,000 white adults in Massachusetts. Men and women in each generation drank less as they got older, and each generation drank less than previous generations. Participants also drank less beer and more wine as they got older.
Researcher Yuqing Zhang, DSc, of Boston University School of Medicine, told WebMD that he really doesn’t know why average alcohol use drops from generation to generation.
The results are published in The American Journal of Medicine. WebMD said it is not clear if the results apply to all U.S. adults.
SOCO LAUNCHES “SUSPENDED MOMENTS”
Southern Comfort is launching the brand’s new TV creative “Suspended Moments” on 14 cable networks in September, said the company in a statement. The effort is part of the heaviest advertising weight ever for the brand during September, November and December.
“Suspended Moments is an exciting new piece of creative and some of the best we’ve ever done,” said Campbell Brown, Vice President, Director Southern Comfort Americas. "We’re showcasing our SoCo & Lime focus by capturing those great moments where friends connect for a legendary night out, something that will resonate with most people.”
WSD BRIEFS:
BACARDI IS REPORTEDLY REVIEWING its multi-million dollar advertising roster, led by Adam Hillyer, Bacardi’s global marketing director, reports Brand Republic. WPP’s Y&R group currently handles the majority of Bacardi’s global creative, including its flagship rum. The publication asserts that Bacardi “is looking for a network agency with a strong presence in London, New York, and the sub markets of Spain, Russia and Germany.” Besides Bacardi rum, other brands that could be affected include Grey Goose, 42 Below, Bombay Sapphire and Martini.
SCIENTISTS ARE DEVELOPING an electronic tongue that can distinguish between grape varieties and vintages. The device is still in the early stages of development but researchers at the Barcelona Institute of Microelectronics hope it will eventually prove more reliable than the human palette. The e-tongue is based on an array of tiny synthetic membranes built onto a single silicon chip called a multisensory. It can already distinguish between four grape varieties: Airén, Chardonnay, Malvasia and Macabeu.
RUTH’S HOSPITALITY GROUP named Michael P. O'Donnell president and ceo Aug. 7. He also was named to the company's board of directors. O’Donnell most recently served as ceo at Champps Entertainment Inc. and has also served as ceo of Sbarro. Former ceo Craig Miller left the company in April amid slowed sales at Ruth's Chris Steak House and after the $92 million purchase of 22 Mitchell's Fish Market and Cameron's Steakhouse restaurants.
BRINKER INTERNATIONAL says it is looking to sell a majority interest in the Macaroni Grill chain after previously considering a sale of the entire brand, reports National Restaurant News.
Until tomorrow, Megan
“In the end, everything is a gag.”
Charlie Chaplin
--------- Sell Day Calendar ----------
Today’s Sell Day: 4
Sell days this month: 21
Sell days this month last year: 23
This month ends on a: Fri
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
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 12:37 PM
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