Alert: William Grant to Distribute Stoli
SPI Group says it has entered into an agreement with William Grant & Sons for the distribution of Stolichnaya in the United States.
"William Grant & Sons has a wonderful portfolio and a proven track record with super premium spirits. The company has one of the fastest-growing spirits portfolios in the United States. While there were many suitors for the Stolichnaya brand, William Grant & Sons is the best partner for us," stated Andrey Skurikhin, SPI minority shareholder. "We are excited to work with their executive team, many of whom have experience working with our brand. Their expertise and passion will continue to propel Stolichnaya and deliver great success."
As you can recall, Stoli has been the subject of a lot of speculation in recent months over where it would end up once its distribution agreement with Pernod ended. More details to follow...
RETAIL SHIPMENTS CHALLENGED IN MICHIGAN
Michigan is again the center of controversy for direct wine shipments. As was expected, Michigan’s state Attorney General's office is appealing the Sept. 30 ruling by U.S. District Judge Denise Hood that struck down the state's 2005 wine shipping laws as unconstitutional. She ruled that Granholm applies to wineries AND retailers, so laws must apply equally to in-state and out-of-state retailers when it comes to direct wine shipments. This was a huge victory for retail advocates, namely the Specialty Wine Retailers Association based in California.
However, the state also has the option under Granholm to ban in-state and out-of-state retailers from shipping directly to Michigan consumers – known as “leveling down” – which would obviously come as bad news for retailers. They are protected at least for the time being since Judge Denise Page Hood stayed her decision allowing retailers nationwide to ship to Michigan customers pending the appeal.
State Attorney General's office spokesman Matt Frendeway confirmed the state appealed the decision. Ken Wozniak, director of executive services for the Michigan Liquor Control Commission, said the state appealed because the ruling "undermines" the Michigan Liquor Control Commission’s (MLCC) licensing system for retailers. "We don't know who these people are or what they had to go through to get licenses in other states," Ken said.
The appeal process is expected to last into 2009. Mike Lashbrook, president of the Michigan Beer and Wine Wholesalers Association’s, said his organization will “follow the state’s lead,” according to Crain’s Detroit.
“This is really a vital concern to the state of Michigan and the Liquor Control Commission,” he said. “I think they will look at all options to try and preserve rational regulation.”
He told Crain’s Detroit that leveling down is certainly a possibility but Michigan wholesalers are not working with any legislator to introduce a bill to level down, and that he hasn’t even discussed it with the organization’s board.
Conversely, Tom Wark, director of the SWRA says the group “would do everything to oppose a leveling down in Michigan.” He also said “retailers would love to pay Michigan sales tax.”
GROWTH OF GLOBAL DISTILLED SPIRITS SURGES
Growing spirits consumption in developing countries and premiumization trends are helping the spirits industry reach a projected value of over $315 billion by the year 2012, reports Global Industry Analysts. In terms of volume, distilled spirits are forecast to reach about 25.3 billion liters by 2015.
Consumers in Asia-Pacific and Eastern Europe are adding to the already developed markets in North America, Western Europe, and Japan, which is promoting companies to expand in developing markets.
Interestingly, Europe is the largest value market with an estimated share of 34%. Asia-Pacific is by far the largest market in terms of volume sales with a share of 47%, mainly dominated by local rice-based spirits.
The world market for brown spirits (Whisky, Dark Rum and Brandy) is projected to exceed $100 billion in 2010, with whisky representing the largest product segment by value. The world market for white spirits (Vodka, Gin and White Rum) is forecast to reach a value of about US$80 billion in 2012.
The on-premise sector also continues to be the most popular consumption channel among young consumers.
FOSTER’S DENIES ‘TROUBLE IN PARADISE’ REPORTS
Foster’s Group is denying reports out of Australia that it has ruled out a straight cash sale of its wine business prior to the completion of its strategic wine review (set to end in February).
Company spokesman Troy Hey told WSD: “Our position and statement remains unchanged - no option has been discounted. All options remain under consideration in the review and we expect to announce the outcomes early in the new year.”
He also denied reports that Foster’s managing director, Jamie O’Dell, left on bad terms, according to The Shout. Several reports out of Australia claimed Jamie left because he was overlooked for the position of ceo.
FRESH & EASY EXPANSION SLOWS
Tesco says it is once again slowing expansion of its Fresh & Easy stores, but this time it’s blaming the weakened economy. In an interview with The Times, Fresh & Easy ceo Tim Mason said: “The industry is in a very different place than when we came out and did the feasibility research three years ago...We will still open stores every week, but it's prudent to slow things down a bit.”
“If the economy takes a turn for the worst, it would be unwise to accelerate.”
“You only have to look at the pronouncements of retailers that have been here more than a year,” he continued. “Starbucks and Costco, to pick but two, have said that California, Arizona and Nevada are among the most difficult places that they operating in.”
However, he said Fresh & Easy is on the right track and made an “exceptional” achievement by opening 100 stores this year.
K-J: FIRST WINE AT THE WHITE HOUSE?
Kendall-Jackson said last week it is sending a few congratulatory cases of its Vintner's Reserve Chardonnay to President-elect Barack Obama after reading a story in People Magazine that of Kendall-Jackson chardonnay sat on the Obamas’ kitchen countertop.
Founder Jess Jackson mentioned that his Vintners’ Reserve Chardonnay “was a favorite in the Reagan Republican White House,” and wants to provide “some common ground” with the new Democratic administration.
“Whether or not the brand becomes a staple in the White House wine cellars is not known. It has been the policy of past administrations to serve only American wine at state functions.”
The winery also sent a special bottling of Kendall-Jackson Grand Reserve Cabernet Sauvignon, featuring a label developed for the Breeder’s Cup where Jackson’s racehorse Curlin, the 2007 Horse of the Year, ran last month.
K-J is not the first brand to issue product placement at the White House. In the past, peanuts (Carter), Jelly Beans (Reagan) and McDonalds (Clinton) received a boost from former presidents.
TOP TIER WINES FEEL A PINCH
Even high end wine collectors are cutting back in the midst of the financial crisis, prompting expensive wine prices to drop in recent weeks, reports Reuters. Top labels saw wine prices plunge as much as 10 or 20 percent at auctions in New York and London in the past few weeks. But crème of the crop wines which used to command four- and five-digit prices from Russian and Chinese investors were hardest hit.
"We had extraordinary high prices in September, but afterwards ... we've seen in October the descent from the absolute top," Serena Sutcliffe, head of Sotheby's International Wine Department, told Reuters at a wine event in Milan.
A Sotheby's auction called "An Evening of Exceptional Wines" in New York at the end of October raised $2.2 million -- well below expected $3.2- 5.1 million. The top lot, 12 bottles of Romanee-Conti 1990, sold for $151,250, falling short of an estimated price range of $170,000-240,000.
At another auction in Chicago this month Romanee-Conti 1990 fetched $6,500 a bottle, 67.5 percent down on just over a year ago.
Instead, collectors are focused on sorting out their financial situation instead of investing in wine.
COPIA TO OPEN OPERATIONS IN SAN FRAN, DOWNSIZE IN NAPA
Napa’s financially troubled Copia, developed by Robert and Margrit Mondavi in 2001, is set to downsize its operation in Napa and open a new site in San Francisco by the new year, according to an article in Wines & Vines. It reportedly plans to expand its education programs and open satellite campuses with wine bars and stores beginning with San Francisco. However, fans of the Napa Valley institution will be disappointed to learn that ceo Garry McGuire says the nonprofit organization will sell its building and campus by the end of the year, and then either lease back part (the first floor) or move to smaller spaces.
The organization has a debt of $78 million, and prospective buyers are already dealing with a 50% write-down in value, a knowledgeable source close to the organization told Wines & Vines. Garry responded “no comment” when asked if he had a buyer. One possibility? The city of Napa, which could use the site for a civic center.
WSD BRIEFS:
EMPLOYMENT WEBSITE FOR DRINKS INDUSTRY. We get a lot of emails at WSD for people in the wine & spirits industry looking for a job, so this could be a great resource. Bevforce.com is a targeted job listing and recruitment resource for the entire beverage industry. The site is aligned with companies such as The Patron Spirits Company, VOSS water, Sidney Frank Importing, SKYY Spirits and Morgans Hotel Group.
BONNY DOON’S NEW TASTING ROOM OPENS THIS SATURDAY, Nov. 15, in its new spot of the Westside of Santa Cruz. The tasting room “is extraordinarily playful,” says the company, and took six months to construct.
Until tomorrow, Megan
“You know, you can't please all the people all the time... and last night, all those people were at my show.”
Mitch Hedberg
--------- Sell Day Calendar ----------
Today's Sell Day: 8
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
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.
"William Grant & Sons has a wonderful portfolio and a proven track record with super premium spirits. The company has one of the fastest-growing spirits portfolios in the United States. While there were many suitors for the Stolichnaya brand, William Grant & Sons is the best partner for us," stated Andrey Skurikhin, SPI minority shareholder. "We are excited to work with their executive team, many of whom have experience working with our brand. Their expertise and passion will continue to propel Stolichnaya and deliver great success."
As you can recall, Stoli has been the subject of a lot of speculation in recent months over where it would end up once its distribution agreement with Pernod ended. More details to follow...
RETAIL SHIPMENTS CHALLENGED IN MICHIGAN
Michigan is again the center of controversy for direct wine shipments. As was expected, Michigan’s state Attorney General's office is appealing the Sept. 30 ruling by U.S. District Judge Denise Hood that struck down the state's 2005 wine shipping laws as unconstitutional. She ruled that Granholm applies to wineries AND retailers, so laws must apply equally to in-state and out-of-state retailers when it comes to direct wine shipments. This was a huge victory for retail advocates, namely the Specialty Wine Retailers Association based in California.
However, the state also has the option under Granholm to ban in-state and out-of-state retailers from shipping directly to Michigan consumers – known as “leveling down” – which would obviously come as bad news for retailers. They are protected at least for the time being since Judge Denise Page Hood stayed her decision allowing retailers nationwide to ship to Michigan customers pending the appeal.
State Attorney General's office spokesman Matt Frendeway confirmed the state appealed the decision. Ken Wozniak, director of executive services for the Michigan Liquor Control Commission, said the state appealed because the ruling "undermines" the Michigan Liquor Control Commission’s (MLCC) licensing system for retailers. "We don't know who these people are or what they had to go through to get licenses in other states," Ken said.
The appeal process is expected to last into 2009. Mike Lashbrook, president of the Michigan Beer and Wine Wholesalers Association’s, said his organization will “follow the state’s lead,” according to Crain’s Detroit.
“This is really a vital concern to the state of Michigan and the Liquor Control Commission,” he said. “I think they will look at all options to try and preserve rational regulation.”
He told Crain’s Detroit that leveling down is certainly a possibility but Michigan wholesalers are not working with any legislator to introduce a bill to level down, and that he hasn’t even discussed it with the organization’s board.
Conversely, Tom Wark, director of the SWRA says the group “would do everything to oppose a leveling down in Michigan.” He also said “retailers would love to pay Michigan sales tax.”
GROWTH OF GLOBAL DISTILLED SPIRITS SURGES
Growing spirits consumption in developing countries and premiumization trends are helping the spirits industry reach a projected value of over $315 billion by the year 2012, reports Global Industry Analysts. In terms of volume, distilled spirits are forecast to reach about 25.3 billion liters by 2015.
Consumers in Asia-Pacific and Eastern Europe are adding to the already developed markets in North America, Western Europe, and Japan, which is promoting companies to expand in developing markets.
Interestingly, Europe is the largest value market with an estimated share of 34%. Asia-Pacific is by far the largest market in terms of volume sales with a share of 47%, mainly dominated by local rice-based spirits.
The world market for brown spirits (Whisky, Dark Rum and Brandy) is projected to exceed $100 billion in 2010, with whisky representing the largest product segment by value. The world market for white spirits (Vodka, Gin and White Rum) is forecast to reach a value of about US$80 billion in 2012.
The on-premise sector also continues to be the most popular consumption channel among young consumers.
FOSTER’S DENIES ‘TROUBLE IN PARADISE’ REPORTS
Foster’s Group is denying reports out of Australia that it has ruled out a straight cash sale of its wine business prior to the completion of its strategic wine review (set to end in February).
Company spokesman Troy Hey told WSD: “Our position and statement remains unchanged - no option has been discounted. All options remain under consideration in the review and we expect to announce the outcomes early in the new year.”
He also denied reports that Foster’s managing director, Jamie O’Dell, left on bad terms, according to The Shout. Several reports out of Australia claimed Jamie left because he was overlooked for the position of ceo.
FRESH & EASY EXPANSION SLOWS
Tesco says it is once again slowing expansion of its Fresh & Easy stores, but this time it’s blaming the weakened economy. In an interview with The Times, Fresh & Easy ceo Tim Mason said: “The industry is in a very different place than when we came out and did the feasibility research three years ago...We will still open stores every week, but it's prudent to slow things down a bit.”
“If the economy takes a turn for the worst, it would be unwise to accelerate.”
“You only have to look at the pronouncements of retailers that have been here more than a year,” he continued. “Starbucks and Costco, to pick but two, have said that California, Arizona and Nevada are among the most difficult places that they operating in.”
However, he said Fresh & Easy is on the right track and made an “exceptional” achievement by opening 100 stores this year.
K-J: FIRST WINE AT THE WHITE HOUSE?
Kendall-Jackson said last week it is sending a few congratulatory cases of its Vintner's Reserve Chardonnay to President-elect Barack Obama after reading a story in People Magazine that of Kendall-Jackson chardonnay sat on the Obamas’ kitchen countertop.
Founder Jess Jackson mentioned that his Vintners’ Reserve Chardonnay “was a favorite in the Reagan Republican White House,” and wants to provide “some common ground” with the new Democratic administration.
“Whether or not the brand becomes a staple in the White House wine cellars is not known. It has been the policy of past administrations to serve only American wine at state functions.”
The winery also sent a special bottling of Kendall-Jackson Grand Reserve Cabernet Sauvignon, featuring a label developed for the Breeder’s Cup where Jackson’s racehorse Curlin, the 2007 Horse of the Year, ran last month.
K-J is not the first brand to issue product placement at the White House. In the past, peanuts (Carter), Jelly Beans (Reagan) and McDonalds (Clinton) received a boost from former presidents.
TOP TIER WINES FEEL A PINCH
Even high end wine collectors are cutting back in the midst of the financial crisis, prompting expensive wine prices to drop in recent weeks, reports Reuters. Top labels saw wine prices plunge as much as 10 or 20 percent at auctions in New York and London in the past few weeks. But crème of the crop wines which used to command four- and five-digit prices from Russian and Chinese investors were hardest hit.
"We had extraordinary high prices in September, but afterwards ... we've seen in October the descent from the absolute top," Serena Sutcliffe, head of Sotheby's International Wine Department, told Reuters at a wine event in Milan.
A Sotheby's auction called "An Evening of Exceptional Wines" in New York at the end of October raised $2.2 million -- well below expected $3.2- 5.1 million. The top lot, 12 bottles of Romanee-Conti 1990, sold for $151,250, falling short of an estimated price range of $170,000-240,000.
At another auction in Chicago this month Romanee-Conti 1990 fetched $6,500 a bottle, 67.5 percent down on just over a year ago.
Instead, collectors are focused on sorting out their financial situation instead of investing in wine.
COPIA TO OPEN OPERATIONS IN SAN FRAN, DOWNSIZE IN NAPA
Napa’s financially troubled Copia, developed by Robert and Margrit Mondavi in 2001, is set to downsize its operation in Napa and open a new site in San Francisco by the new year, according to an article in Wines & Vines. It reportedly plans to expand its education programs and open satellite campuses with wine bars and stores beginning with San Francisco. However, fans of the Napa Valley institution will be disappointed to learn that ceo Garry McGuire says the nonprofit organization will sell its building and campus by the end of the year, and then either lease back part (the first floor) or move to smaller spaces.
The organization has a debt of $78 million, and prospective buyers are already dealing with a 50% write-down in value, a knowledgeable source close to the organization told Wines & Vines. Garry responded “no comment” when asked if he had a buyer. One possibility? The city of Napa, which could use the site for a civic center.
WSD BRIEFS:
EMPLOYMENT WEBSITE FOR DRINKS INDUSTRY. We get a lot of emails at WSD for people in the wine & spirits industry looking for a job, so this could be a great resource. Bevforce.com is a targeted job listing and recruitment resource for the entire beverage industry. The site is aligned with companies such as The Patron Spirits Company, VOSS water, Sidney Frank Importing, SKYY Spirits and Morgans Hotel Group.
BONNY DOON’S NEW TASTING ROOM OPENS THIS SATURDAY, Nov. 15, in its new spot of the Westside of Santa Cruz. The tasting room “is extraordinarily playful,” says the company, and took six months to construct.
Until tomorrow, Megan
“You know, you can't please all the people all the time... and last night, all those people were at my show.”
Mitch Hedberg
--------- Sell Day Calendar ----------
Today's Sell Day: 8
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
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 2:23 PM
<< Home