Premium Gins Take a Hit in October
Vodka’s success along with (white) rum and tequila could lead one to assume that white spirits is doing very well overall. But there is one category on the fringes that always seems on the verge of making a comeback – gin. In the past several years gin has typically been flat or declining in growth but the industry has always whispered of a resurgence. However, the category has yet to appeal to millennials in the same way vodka has (perhaps we can thank Sex in the City and the cocktail culture for that), which could be one reason for its lagging position.
As we wrote yesterday, vodka outpaced overall category growth (1.5% in dollars and 1.3% in volume) in the four weeks to November 2 and once again took the lead as the fastest growing spirit. As far as dollar sales are concerned, tequila came in second, followed by rum and whiskey, which was not far behind. The categories in decline were gin, brandy, cordials and cognac.
Dollar sales of gin were down -0.3% in October but volume was up 1.5%, outpacing overall spirits growth in volume. In fact, vodka and tequila were the only spirits categories that posted higher growth than gin in case sales. Interestingly, in the 52 weeks to November 2, 2008, gin rose 0.2% in dollar sales and declined -0.9%. This leads us to believe that consumers have recently started buying more gin at less expensive prices. Could there be a new trend emerging?
IMPORTS TAKE A HIT. It looks like imports are not faring well for gin either. The weak U.S. dollar makes imports more expensive, which causes some cost conscious consumers to purchase a cheaper domestic brand instead. In October, imported gin was down a whopping -5.5% in dollar sales and -7.5% in volume. Domestic gin, meanwhile, grew 4.1% in value and 4.7% in case sales. This wasn’t always the case though. In the 52 week period to November 2, imported gin was down only -0.2% and -1.9%, respectively. Domestic gin was up 0.5% in dollars and down -0.6% in volume.
Just last year when times weren’t as tough imported gin was outgrowing domestic gin. In the four weeks to November 4, 2007, imports grew 7.5% and domestic gin dropped -2.1% in dollar sales. Similarly, volume of imported gin rose 6.1%, while domestic gin declined -4.6%.
PREMIUM GINS DECLINING. Unlike vodka, ultra-premium gin ($26 and above) did very well in October, rising 14% in dollar sales and 7.9% in volume. Premium gins ($15-$26) were down -6.2% and -7.9%, respectively. Value gin ($15 and below) posted strong numbers, up 4.2% in sales and 4.7% in volume.
Gin in October 2008 was up against some tough comparisons in the same period last year, where all the price categories posted opposite results. Dollar sales of ultra-premium gin declined -7.8% in the four weeks to Nov 2007 and volume was down -10.6%. Premium gin rose 8.1% and 6.6%, respectively, while value gin declined -2.2% in sales and -4.6% in volume.
We took a look at some of the top gin brands, and boy what a difference a year makes. Premium brands Tanqueray and Bombay went from solid growth in October of 2007 to declines in October of 2008. Gordon’s, Beefeater, Seagram’s and Gilbey’s, which are value brands, did just the opposite and posted big gains in 2008.
Dollar sales of Tanqueray were up 14.8% in 2007, but declined -5.2% in the same period in 2008. Bombay posted sales growth of 2.2% last year, but was down -12.3% this year.
Seagram’s went from growing only 0.1% in volume in 2007 to gaining 4.2% in 2008. Beefeater also declined -2.7% in 2007, but posted dollar sales gains of 2.2% in 2008. Gilbey’s declined -2.3% in sales last year and rose 7.8% this year. Gordon’s, however, showed the most impressive recovery. The brand was down -9.8% in dollar sales last year, but grew 26.3% this year.
It could have something to with price/mix, but it also seems that consumers are trading down from premium gin to value gin. The only exception is Beefeater, a premium brand that posted gains in 2008, but we think a recent revamp in advertising and increased focus by Pernod Ricard could have given the brand a much needed boost.
Send us your thoughts at megan@winespiritsdaily.com.
CHATEAU MONTELENA SIGNS WHOLESALE DEAL WITH VINTUS
Chateau Montelena has entered an exclusive distirbution agreement with Vintus in the United States. The agreement becomes effective January 1, 2009.
This has certainly been a year of changes for Montelena. A day after Robert Parker posted a cryptic message on his website in July, the famed winery announced it would be sold to Michel Reybier (owner of Chateau Cos d’Estournel). In a surprising twist of fate, however, Chateau Montelena announced in November it ended the sales agreement because “Reybier Investments has been unable to meet its obligations under its contract with the Barrett family, who will retain ownership and not offer the winery for sale.”
Jim Barrett, managing general partner, said that the outcome was not what the Barrett family or Michel wanted, but noted Montelena is on the hunt for new purchasers. Until then, things are business as usual for the winery.
Chateau Montelena is famous for its chardonnay and winning “The Judgment of Paris” with its 1973 vintage, which helped put Napa on the map. Vintus, meanwhile, was founded in 2004 and mainly represents artisan wines. Their portfolio includes Richard Sanford’s Alma Rosa Winery, Quinta do Noval, Errazuriz, Mitolo, Ch. Margaux, Ch. La Fleur-Pétrus, Nicolas Joly, Marcel Deiss, Sandrone, Petrolo, and others.
WINEGROWERS VOTE AGAINST RUSSIAN RIVER VALLEY EXTENSION
Gallo’s proposal to extend the Russian River Valley AVA is not being backed by the region’s Winegrowers association. In a secret-ballot vote, 71 members of the Russian River Valley Winegrowers association voted to oppose Gallo's application, while 18 supported it and 25 votes were cast as "neutral," according to the Press Democrat. Recall that E&J Gallo submitted an application to the TTB to expand the southern boundary of the appellation to include 350 acres of E&J Gallo vineyards in Cotati. Gallo claims the climate, soils and growing conditions in the expanded area are similar to other parts of the region, but many winemakers say the area is far cooler and windier than the Russian River appellation. The deadline for public comment on the petition is Dec. 19.
WSD BRIEFS:
KAUTZ FAMILY VINEYARDS has hired Richard Conley as their new coo. He will oversee and manage all aspects of winery operations plus the growth and development of the Kautz wine portfolio. Richard most recently severed as executive vp & coo for Don Sebastiani & Sons. Some of its brands include Ironstone Reserves, Christine Andrew, Sonoma Creek, Dog Tail Vineyards and Leaping Horse Vineyards.
DIAGEO REPORTEDLY SPENT $460K on lobbying the U.S. government in the third quarter, according to a recent disclosure form. In addition to promoting safe alcohol consumption, lobbyist pushed to lower the tax rate on distilled spirits and lobbied on free trade agreements, according to the form filed Oct. 19 with the House clerk's office.
Until tomorrow, Megan
“The good or ill of a man lies within his own will.”
Epictetus
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 22
Sell days this month last year: 20
This month ends on a: Wed.
This month last year ended on a: Mon.
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.
As we wrote yesterday, vodka outpaced overall category growth (1.5% in dollars and 1.3% in volume) in the four weeks to November 2 and once again took the lead as the fastest growing spirit. As far as dollar sales are concerned, tequila came in second, followed by rum and whiskey, which was not far behind. The categories in decline were gin, brandy, cordials and cognac.
Dollar sales of gin were down -0.3% in October but volume was up 1.5%, outpacing overall spirits growth in volume. In fact, vodka and tequila were the only spirits categories that posted higher growth than gin in case sales. Interestingly, in the 52 weeks to November 2, 2008, gin rose 0.2% in dollar sales and declined -0.9%. This leads us to believe that consumers have recently started buying more gin at less expensive prices. Could there be a new trend emerging?
IMPORTS TAKE A HIT. It looks like imports are not faring well for gin either. The weak U.S. dollar makes imports more expensive, which causes some cost conscious consumers to purchase a cheaper domestic brand instead. In October, imported gin was down a whopping -5.5% in dollar sales and -7.5% in volume. Domestic gin, meanwhile, grew 4.1% in value and 4.7% in case sales. This wasn’t always the case though. In the 52 week period to November 2, imported gin was down only -0.2% and -1.9%, respectively. Domestic gin was up 0.5% in dollars and down -0.6% in volume.
Just last year when times weren’t as tough imported gin was outgrowing domestic gin. In the four weeks to November 4, 2007, imports grew 7.5% and domestic gin dropped -2.1% in dollar sales. Similarly, volume of imported gin rose 6.1%, while domestic gin declined -4.6%.
PREMIUM GINS DECLINING. Unlike vodka, ultra-premium gin ($26 and above) did very well in October, rising 14% in dollar sales and 7.9% in volume. Premium gins ($15-$26) were down -6.2% and -7.9%, respectively. Value gin ($15 and below) posted strong numbers, up 4.2% in sales and 4.7% in volume.
Gin in October 2008 was up against some tough comparisons in the same period last year, where all the price categories posted opposite results. Dollar sales of ultra-premium gin declined -7.8% in the four weeks to Nov 2007 and volume was down -10.6%. Premium gin rose 8.1% and 6.6%, respectively, while value gin declined -2.2% in sales and -4.6% in volume.
We took a look at some of the top gin brands, and boy what a difference a year makes. Premium brands Tanqueray and Bombay went from solid growth in October of 2007 to declines in October of 2008. Gordon’s, Beefeater, Seagram’s and Gilbey’s, which are value brands, did just the opposite and posted big gains in 2008.
Dollar sales of Tanqueray were up 14.8% in 2007, but declined -5.2% in the same period in 2008. Bombay posted sales growth of 2.2% last year, but was down -12.3% this year.
Seagram’s went from growing only 0.1% in volume in 2007 to gaining 4.2% in 2008. Beefeater also declined -2.7% in 2007, but posted dollar sales gains of 2.2% in 2008. Gilbey’s declined -2.3% in sales last year and rose 7.8% this year. Gordon’s, however, showed the most impressive recovery. The brand was down -9.8% in dollar sales last year, but grew 26.3% this year.
It could have something to with price/mix, but it also seems that consumers are trading down from premium gin to value gin. The only exception is Beefeater, a premium brand that posted gains in 2008, but we think a recent revamp in advertising and increased focus by Pernod Ricard could have given the brand a much needed boost.
Send us your thoughts at megan@winespiritsdaily.com.
CHATEAU MONTELENA SIGNS WHOLESALE DEAL WITH VINTUS
Chateau Montelena has entered an exclusive distirbution agreement with Vintus in the United States. The agreement becomes effective January 1, 2009.
This has certainly been a year of changes for Montelena. A day after Robert Parker posted a cryptic message on his website in July, the famed winery announced it would be sold to Michel Reybier (owner of Chateau Cos d’Estournel). In a surprising twist of fate, however, Chateau Montelena announced in November it ended the sales agreement because “Reybier Investments has been unable to meet its obligations under its contract with the Barrett family, who will retain ownership and not offer the winery for sale.”
Jim Barrett, managing general partner, said that the outcome was not what the Barrett family or Michel wanted, but noted Montelena is on the hunt for new purchasers. Until then, things are business as usual for the winery.
Chateau Montelena is famous for its chardonnay and winning “The Judgment of Paris” with its 1973 vintage, which helped put Napa on the map. Vintus, meanwhile, was founded in 2004 and mainly represents artisan wines. Their portfolio includes Richard Sanford’s Alma Rosa Winery, Quinta do Noval, Errazuriz, Mitolo, Ch. Margaux, Ch. La Fleur-Pétrus, Nicolas Joly, Marcel Deiss, Sandrone, Petrolo, and others.
WINEGROWERS VOTE AGAINST RUSSIAN RIVER VALLEY EXTENSION
Gallo’s proposal to extend the Russian River Valley AVA is not being backed by the region’s Winegrowers association. In a secret-ballot vote, 71 members of the Russian River Valley Winegrowers association voted to oppose Gallo's application, while 18 supported it and 25 votes were cast as "neutral," according to the Press Democrat. Recall that E&J Gallo submitted an application to the TTB to expand the southern boundary of the appellation to include 350 acres of E&J Gallo vineyards in Cotati. Gallo claims the climate, soils and growing conditions in the expanded area are similar to other parts of the region, but many winemakers say the area is far cooler and windier than the Russian River appellation. The deadline for public comment on the petition is Dec. 19.
WSD BRIEFS:
KAUTZ FAMILY VINEYARDS has hired Richard Conley as their new coo. He will oversee and manage all aspects of winery operations plus the growth and development of the Kautz wine portfolio. Richard most recently severed as executive vp & coo for Don Sebastiani & Sons. Some of its brands include Ironstone Reserves, Christine Andrew, Sonoma Creek, Dog Tail Vineyards and Leaping Horse Vineyards.
DIAGEO REPORTEDLY SPENT $460K on lobbying the U.S. government in the third quarter, according to a recent disclosure form. In addition to promoting safe alcohol consumption, lobbyist pushed to lower the tax rate on distilled spirits and lobbied on free trade agreements, according to the form filed Oct. 19 with the House clerk's office.
Until tomorrow, Megan
“The good or ill of a man lies within his own will.”
Epictetus
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 22
Sell days this month last year: 20
This month ends on a: Wed.
This month last year ended on a: Mon.
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 2:00 PM
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