Wine Consumption on the Rise
Overall wine consumption in the United States rose 3.2% in 2007 to 292.1 million 9-liter cases, according the Beverage Information Group's recently released 2008 Wine Handbook. This marks the fourteenth consecutive year of case gains, indicating positive long-term health and sustainability for the wine industry overall. Increased consumer spending on wine in both the on- and off-premise channels in 2007 mirrored the increase in consumption. Total wine retail dollars peaked at $27.9 billion last year.
The Group’s research reiterated that the U.S. will surpass both Italy and France as the largest wine market and wine importer in the world by the end of the decade.
Millennials, Baby Boomers and Hispanics are helping the industry overall. For example, Millennials, which constitute about 70 million people, are more willing to experiment with bottles at lower price points because they “are not as sophisticated about wine as proceeding generations.”
Conversely, the Baby Boomers – 77 million Americans between the ages of 43 and 61 – have more disposable income and are spending on the more exclusive, higher-priced wines. Hispanics are emerging as an important wine consumers group and the Echo Boomers are coming of age in rapid numbers.
Packaging trends are also boding well for the wine industry, said Beverage Information Group. Boxed wine is experiencing a resurgence in the U.S. as it is increasingly being used for premium and super-premium wines. Target's Wine Cube, produced by Trinchero Family Estates, and the super-premium Black Box Wines from Constellation Wines are prime examples. Screw cap closures are also gaining greater acceptance among consumers.
To order the 2008 Wine Handbook, visit www.beveragehandbooks.com or call Cynthia Porter at (630) 762-8709.
MUMM TESTS LIGHTER CHAMPAGNE BOTTLES
G.H. Mumm, the champagne house owned by Pernod Ricard, has completed a trial production of lighter bottles weighing 2kg when filled and 835 grams when empty, reports the Financial Times. Traditionally champagne bottles weigh a heavier 900g.
The experiment was prompted by increases in production and transportation costs, and done at the behest of the Comité Interprofessionnel du vin de Champagne, a French trade association for grape growers and champagne producers. Mumm cannot sell its bottles to consumers until it receives approval from the CIVC that they will not explode.
Mumm has put the lighter bottles it has produced in its trial run in caves where they will age for at least 2 ½ years. If the trials are successful, says the FT, the CIVC may recommend its other members start using the bottles.
Pommery, the champagne house owned by Vranken-Pommery Monopole, is the only big champagne group to date to use 835g bottles. It adopted them in 2003 and says it can now load 4,000 more bottles on every truck.
RISING COSTS COULD PROMPT SCOTCH PRICE INCREASE
Diageo may take another price increase on Scotch for the second time this year, reports the Sunday Herald. CEO Paul Walsh is expected to disclose this week that the group has seen a £100 million rise in its costs for items such as grain, energy, glass and packaging over the past year. The Scotch Whisky Association says the price of cereals has risen anywhere between 35% and 100% in the past year, while glass bottles have increased by up to 20% and other packaging by around 10%.
Diageo took a price increase in February in addition to a 9% duty rise in the spring.
"Obviously, the group concentrates much of its focus overseas, but Paul Walsh is determined to get more value out of the brands at home," said one analyst, according to the article.
It is now believed that the US market will have performed better than originally thought, but there are some concerns that the UK and Ireland may have suffered from the poor economy.
“BACARDI AND THE LONG FIGHT FOR CUBA”
The Washington Post featured an interesting article on a new biography titled “Bacardi and the Long Fight for Cuba,” which outlines the history of the Bacardi family and its ties to Cuba.
“Drinkers the world round know the name Bacardi means rum, but few non-Cubans know that this global enterprise was founded -- and is still owned -- by a Cuban family that played an important role in the island's social, political and economic history,” says the article.
“...The company has gone to great lengths in recent years to lobby for a tightened U.S. embargo and to fight the French liquor company Pernod's effort to market Cuba's Havana Club rum, a legal duel with Castro that the Bacardis viewed as a crusade to defend another expropriated Cuban brand.”
WSD BRIEFS:
FREDERICK WILDMAN AND SONS has promoted Martin Sinkoff to the position of Director of Marketing for the newly created Fine Wine Division. In his new role, Sinkoff will report directly to Richard Cacciato, ceo and President of Wildman and will be responsible for determining the company's overall fine wine strategy and marketing activities.
CANADIAN COMPANY DIAMOND ESTATES WINES & SPIRITS has acquired the Beamsville-based family-owned winery, De Sousa Wine Cellars. De Sousa Wine Cellars produces approximately 15,000 cases of wine annually and specialize in the production of both craft and value priced wines. The company also owns a retail operation in Toronto that serves as its direct-to-consumer outlet for purchasing its wines. Diamond Estates says it has invested over $20 million in the Canadian wine industry in the past 60 days, with the acquisition of 20 Bees Winery and now De Sousa Wine Cellars.
BLACK SWAN LAUNCHES NEW PACKAGING. Australia’s Black Swan Wines is unveiling a new label and look for bottles beginning this Fall. The six varietals will be differentiated by the colors used on the bottle cap and label to “better suit the fun, hip, and casual nature of the brand,” said the company. The bottles also feature 25 different equations printed on the corks, which include "Black Swan = Swan - Convention, "Text Message = Telegram - vwls," and "Crazy = Talking to Oneself - (cell phone + ear piece)."
KEN LAIRD BUYS STORAGE FACILITY. Napa Valley grapegrower and vintner Ken Laird has acquired a nearly complete $14 million-plus bulk-wine storage facility in south Napa from Vintage Wine Trust, which is liquidating its $170 million worth of assets. He purchased the 3.83 acre property for an undisclosed amount. Laird purchased the property as an investment and is leasing it to Butch Cameron, who owns a trucking company. The facility will be used for his Cameron Wine Storage venture. To read more, click here.
CLOS DU VAL WINERY PROMOTED John Clews as its new chief operating officer of production. Prior to the promotion, he was winemaker and vice president of vineyard and winery operations. Clews has been with the company since 1999. Before, he was general manager/chief enologist at Steele Wines in Lake County, and he’s also worked at Newton Vineyard in St. Helena, and Preston Vineyards in Sonoma County’s Dry Creek Valley.
Until tomorrow, Megan
“Be courteous to all, but intimate with few; and let those few be well tried before you give them your confidence.”
George Washington
--------- Sell Day Calendar ----------
Today’s Sell Day: 17
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.
The Group’s research reiterated that the U.S. will surpass both Italy and France as the largest wine market and wine importer in the world by the end of the decade.
Millennials, Baby Boomers and Hispanics are helping the industry overall. For example, Millennials, which constitute about 70 million people, are more willing to experiment with bottles at lower price points because they “are not as sophisticated about wine as proceeding generations.”
Conversely, the Baby Boomers – 77 million Americans between the ages of 43 and 61 – have more disposable income and are spending on the more exclusive, higher-priced wines. Hispanics are emerging as an important wine consumers group and the Echo Boomers are coming of age in rapid numbers.
Packaging trends are also boding well for the wine industry, said Beverage Information Group. Boxed wine is experiencing a resurgence in the U.S. as it is increasingly being used for premium and super-premium wines. Target's Wine Cube, produced by Trinchero Family Estates, and the super-premium Black Box Wines from Constellation Wines are prime examples. Screw cap closures are also gaining greater acceptance among consumers.
To order the 2008 Wine Handbook, visit www.beveragehandbooks.com or call Cynthia Porter at (630) 762-8709.
MUMM TESTS LIGHTER CHAMPAGNE BOTTLES
G.H. Mumm, the champagne house owned by Pernod Ricard, has completed a trial production of lighter bottles weighing 2kg when filled and 835 grams when empty, reports the Financial Times. Traditionally champagne bottles weigh a heavier 900g.
The experiment was prompted by increases in production and transportation costs, and done at the behest of the Comité Interprofessionnel du vin de Champagne, a French trade association for grape growers and champagne producers. Mumm cannot sell its bottles to consumers until it receives approval from the CIVC that they will not explode.
Mumm has put the lighter bottles it has produced in its trial run in caves where they will age for at least 2 ½ years. If the trials are successful, says the FT, the CIVC may recommend its other members start using the bottles.
Pommery, the champagne house owned by Vranken-Pommery Monopole, is the only big champagne group to date to use 835g bottles. It adopted them in 2003 and says it can now load 4,000 more bottles on every truck.
RISING COSTS COULD PROMPT SCOTCH PRICE INCREASE
Diageo may take another price increase on Scotch for the second time this year, reports the Sunday Herald. CEO Paul Walsh is expected to disclose this week that the group has seen a £100 million rise in its costs for items such as grain, energy, glass and packaging over the past year. The Scotch Whisky Association says the price of cereals has risen anywhere between 35% and 100% in the past year, while glass bottles have increased by up to 20% and other packaging by around 10%.
Diageo took a price increase in February in addition to a 9% duty rise in the spring.
"Obviously, the group concentrates much of its focus overseas, but Paul Walsh is determined to get more value out of the brands at home," said one analyst, according to the article.
It is now believed that the US market will have performed better than originally thought, but there are some concerns that the UK and Ireland may have suffered from the poor economy.
“BACARDI AND THE LONG FIGHT FOR CUBA”
The Washington Post featured an interesting article on a new biography titled “Bacardi and the Long Fight for Cuba,” which outlines the history of the Bacardi family and its ties to Cuba.
“Drinkers the world round know the name Bacardi means rum, but few non-Cubans know that this global enterprise was founded -- and is still owned -- by a Cuban family that played an important role in the island's social, political and economic history,” says the article.
“...The company has gone to great lengths in recent years to lobby for a tightened U.S. embargo and to fight the French liquor company Pernod's effort to market Cuba's Havana Club rum, a legal duel with Castro that the Bacardis viewed as a crusade to defend another expropriated Cuban brand.”
WSD BRIEFS:
FREDERICK WILDMAN AND SONS has promoted Martin Sinkoff to the position of Director of Marketing for the newly created Fine Wine Division. In his new role, Sinkoff will report directly to Richard Cacciato, ceo and President of Wildman and will be responsible for determining the company's overall fine wine strategy and marketing activities.
CANADIAN COMPANY DIAMOND ESTATES WINES & SPIRITS has acquired the Beamsville-based family-owned winery, De Sousa Wine Cellars. De Sousa Wine Cellars produces approximately 15,000 cases of wine annually and specialize in the production of both craft and value priced wines. The company also owns a retail operation in Toronto that serves as its direct-to-consumer outlet for purchasing its wines. Diamond Estates says it has invested over $20 million in the Canadian wine industry in the past 60 days, with the acquisition of 20 Bees Winery and now De Sousa Wine Cellars.
BLACK SWAN LAUNCHES NEW PACKAGING. Australia’s Black Swan Wines is unveiling a new label and look for bottles beginning this Fall. The six varietals will be differentiated by the colors used on the bottle cap and label to “better suit the fun, hip, and casual nature of the brand,” said the company. The bottles also feature 25 different equations printed on the corks, which include "Black Swan = Swan - Convention, "Text Message = Telegram - vwls," and "Crazy = Talking to Oneself - (cell phone + ear piece)."
KEN LAIRD BUYS STORAGE FACILITY. Napa Valley grapegrower and vintner Ken Laird has acquired a nearly complete $14 million-plus bulk-wine storage facility in south Napa from Vintage Wine Trust, which is liquidating its $170 million worth of assets. He purchased the 3.83 acre property for an undisclosed amount. Laird purchased the property as an investment and is leasing it to Butch Cameron, who owns a trucking company. The facility will be used for his Cameron Wine Storage venture. To read more, click here.
CLOS DU VAL WINERY PROMOTED John Clews as its new chief operating officer of production. Prior to the promotion, he was winemaker and vice president of vineyard and winery operations. Clews has been with the company since 1999. Before, he was general manager/chief enologist at Steele Wines in Lake County, and he’s also worked at Newton Vineyard in St. Helena, and Preston Vineyards in Sonoma County’s Dry Creek Valley.
Until tomorrow, Megan
“Be courteous to all, but intimate with few; and let those few be well tried before you give them your confidence.”
George Washington
--------- Sell Day Calendar ----------
Today’s Sell Day: 17
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 2:52 PM
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