2009 Predictions and Changes at Glazer’s
A lot of readers helped us come up with predictions for 2009, which we believe will be as full of changes (some unexpected) as last year. In 2010 we'll take a look back and see how we faired. Here is what we came up with, for what it's worth:
Following in the spirit of craft breweries and small wineries, artisan distilleries will be the new hotness in 2009. We expect a significant increase in micro-distilleries because as one reader put it: "The past 30 years of consolidation has paved the way for new players."
The economy will continue its downward slump into the summer, which will help grow value wine and spirits brands. Super-premium brands will experience softness and premium brands will continue to grow but at a much slower pace. Consumers will also continue to trade down from super-premium brands to premium. Not a very tough prediction, I know, but it's a continuation of a current trend.
Thanks to the economy more people will be drinking at home. As a result, off-premise brand building will become as important or more important than on-premise marketing. Said one subscriber: "The intangible here is at what price range will the consumer buy in at? This is why you need retailers to make their stores into destinations for the consumer.
Hire employees with better backgrounds who can sell more products. The consumers will be there but they will have to be sold to. Otherwise, they will buy your inexpensive, low margin products. This is where retailers will have to create more private and control labels."
Lots of speculation over where Ste. Michelle will end up. Some readers predict Gallo, Kendall-Jackson and/or Pernod Ricard will grab some of its portfolio since all three companies lack the northwest corner in their portfolio. Diageo was also named as a potential suitor.
We expect to see Foster's sell some of its wine brands this year but would be surprised if it sold its entire wine business. The usual suspects, such as Constellation, were named.
New York and Tennessee are expected to start selling more types of alcohol in grocery stores and club stores. One reader wrote: "I expect the New York legislature to pass a law that will allow 20,000 additional licenses in the state. The retail industry will be in turmoil."
We wouldn't be surprised if Constellation acquired a more seasoned spirits brand to spruce up its portfolio after it pays down some more debt.
Cognac sales will further decline.
William Grant could go to Southern Wine & Spirits across the country, and Constellation could perhaps consolidate with one distributor in each market across the U.S.
Following in the spirit of Southern and Glazer's, we will see some big wholesalers merge (such as Wirtz and Young's).
Readers are predicting that Pernod will switch to Southern Wine & Spirits, possibly taking Bacardi's place. Said one subscriber: "The alliances of BF/Bacardi/Remy vs Diego/Fortune/Pernod is the new Hatfields vs Mccoys."
Medium-sized independent wineries and wholesalers will be snatched by larger companies.
We expect Amazon to start selling wine sometime in the next couple of months as long as they can get through the legal hurdles.
GLAZER'S SELLS SPECIALTY BEER TO TEXAS A-B NETWORK
Glazer's is selling over 50 specialty import and craft beer brands to a network of seven Anheuser-Busch distributors in the major markets in Texas, it has been reported in sister publication Beer Business Daily. The big wine and spirits distributor, which recently signed a joint-venture deal with Southern Wine & Spirits, is only selling the brands in territories where it does not have a full-fledged beer distributorship operation, mainly Dallas, Houston, Austin, Corpus Christi, and San Antonio. Glazer's indicated to BBD that its joint venture with Southern had no bearing on the decision to sell the rights to the specialty beer brands, which include Sierra Nevada, Paulaner, and St. Arnolds. Glazer's also indicated that it was keeping its Miller and Coors distributorships in the state and was looking to expand its presence in beer distribution outside of the wine and spirits operation. Glazer's also indicated that the sale of the specialty beer brands would have no impact on the wine and spirits operations, and that they are keeping their beers in the rural markets.
STUDY SAYS AMERICANS DINED OUT MORE IN 2008
An interesting story published this week suggests Americans are not eating out any less than last year. According to market research firm NPD Group, the average American eats outside of their home about five meals each week, including takeout and dining out. Interestingly, Americans bought 2% more meals at a restaurant in November of 2008 than November 2007 despite the recession.
So far “there hasn’t been a recession in eating,” says Harry Balzer, an NPD vice president, to USA Tkoday. “We may postpone a car purchase or a new coat, but we won’t postpone eating.” We believe that goes for alcohol sales as well.
SAN FRANCISCO WINERY RELEASES NEW LINE-UP
Foggy Bridge Winery, a new urban winery to open in San Francisco, is pleased to announce the release of its first collection of California wines made under the direction of winemaker Daryl Groom. The portfolio includes three tiers: the Classic Collection, Tradewinds and G.E.O. tiers. The Classic Collection includes a 2007 Sauvignon Blanc from Sonoma County ($18), a 2006 Pinot Noir from Bien Nacido Vineyard in Santa Maria Valley ($38), a 2004 Cabernet Sauvignon from Napa Valley ($38) and a 2007 Zinfandel from Sonoma County ($26).
The Tradewinds tier includes discovery wines such as a 2007 Riesling from Columbia Valley in Washington State ($18), a 2005 Shiraz from Alexander Valley ($22), a 2005 Bordeaux blend from the Yorkville Highlands area of Mendocino ($26) and a 2007 California Muscat ($20). Lastly, the G.E.O. (Green. Earth. Origin.) tier features wines grown on Foggy Bridge's estate vineyard in the San Francisco Bay appellation. These grapes are grown using organic practices with minimal intervention. The 2007 Chardonnay ($18) is the first G.E.O. wine available to the public, with a limited production of only 190 cases.
WSD BRIEFS:
WINDSOR FORCED TO LAY OFF EMPLOYEES. Yountville winery Windsor Vineyards laid off 16 workers this week as a result of the softening economy. As a high end wine, Windsor is seeing a slowdown in sales, and as a result let go about 10 people in the “cold calling” sales division on Monday, with six additional layoffs among support staff and production, reports The Press Democrat. Employees now total about 164.
GUNDLACH BUNDSCHU WINERY has appointed a new winemaker, Keith Emerson who replaces Linda Trotta, who served as winemaker for 20 years and oversaw the evolution of estate winemaking at the six-generation family winery. Keith is the director of winemaking for Vineyard 29 in St. Helena, Calif.
INERTIA BEVERAGE GROUP has appointed Paul Roberti as Senior Vice President & Chief Financial Officer, the company said today.
Until tomorrow, Megan
“What is a cynic? A man who knows the price of everything and the value of nothing.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 5
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Fri
This month last year ended on a: Thurs
YTD sell days Over/Under: 0
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.
Following in the spirit of craft breweries and small wineries, artisan distilleries will be the new hotness in 2009. We expect a significant increase in micro-distilleries because as one reader put it: "The past 30 years of consolidation has paved the way for new players."
The economy will continue its downward slump into the summer, which will help grow value wine and spirits brands. Super-premium brands will experience softness and premium brands will continue to grow but at a much slower pace. Consumers will also continue to trade down from super-premium brands to premium. Not a very tough prediction, I know, but it's a continuation of a current trend.
Thanks to the economy more people will be drinking at home. As a result, off-premise brand building will become as important or more important than on-premise marketing. Said one subscriber: "The intangible here is at what price range will the consumer buy in at? This is why you need retailers to make their stores into destinations for the consumer.
Hire employees with better backgrounds who can sell more products. The consumers will be there but they will have to be sold to. Otherwise, they will buy your inexpensive, low margin products. This is where retailers will have to create more private and control labels."
Lots of speculation over where Ste. Michelle will end up. Some readers predict Gallo, Kendall-Jackson and/or Pernod Ricard will grab some of its portfolio since all three companies lack the northwest corner in their portfolio. Diageo was also named as a potential suitor.
We expect to see Foster's sell some of its wine brands this year but would be surprised if it sold its entire wine business. The usual suspects, such as Constellation, were named.
New York and Tennessee are expected to start selling more types of alcohol in grocery stores and club stores. One reader wrote: "I expect the New York legislature to pass a law that will allow 20,000 additional licenses in the state. The retail industry will be in turmoil."
We wouldn't be surprised if Constellation acquired a more seasoned spirits brand to spruce up its portfolio after it pays down some more debt.
Cognac sales will further decline.
William Grant could go to Southern Wine & Spirits across the country, and Constellation could perhaps consolidate with one distributor in each market across the U.S.
Following in the spirit of Southern and Glazer's, we will see some big wholesalers merge (such as Wirtz and Young's).
Readers are predicting that Pernod will switch to Southern Wine & Spirits, possibly taking Bacardi's place. Said one subscriber: "The alliances of BF/Bacardi/Remy vs Diego/Fortune/Pernod is the new Hatfields vs Mccoys."
Medium-sized independent wineries and wholesalers will be snatched by larger companies.
We expect Amazon to start selling wine sometime in the next couple of months as long as they can get through the legal hurdles.
GLAZER'S SELLS SPECIALTY BEER TO TEXAS A-B NETWORK
Glazer's is selling over 50 specialty import and craft beer brands to a network of seven Anheuser-Busch distributors in the major markets in Texas, it has been reported in sister publication Beer Business Daily. The big wine and spirits distributor, which recently signed a joint-venture deal with Southern Wine & Spirits, is only selling the brands in territories where it does not have a full-fledged beer distributorship operation, mainly Dallas, Houston, Austin, Corpus Christi, and San Antonio. Glazer's indicated to BBD that its joint venture with Southern had no bearing on the decision to sell the rights to the specialty beer brands, which include Sierra Nevada, Paulaner, and St. Arnolds. Glazer's also indicated that it was keeping its Miller and Coors distributorships in the state and was looking to expand its presence in beer distribution outside of the wine and spirits operation. Glazer's also indicated that the sale of the specialty beer brands would have no impact on the wine and spirits operations, and that they are keeping their beers in the rural markets.
STUDY SAYS AMERICANS DINED OUT MORE IN 2008
An interesting story published this week suggests Americans are not eating out any less than last year. According to market research firm NPD Group, the average American eats outside of their home about five meals each week, including takeout and dining out. Interestingly, Americans bought 2% more meals at a restaurant in November of 2008 than November 2007 despite the recession.
So far “there hasn’t been a recession in eating,” says Harry Balzer, an NPD vice president, to USA Tkoday. “We may postpone a car purchase or a new coat, but we won’t postpone eating.” We believe that goes for alcohol sales as well.
SAN FRANCISCO WINERY RELEASES NEW LINE-UP
Foggy Bridge Winery, a new urban winery to open in San Francisco, is pleased to announce the release of its first collection of California wines made under the direction of winemaker Daryl Groom. The portfolio includes three tiers: the Classic Collection, Tradewinds and G.E.O. tiers. The Classic Collection includes a 2007 Sauvignon Blanc from Sonoma County ($18), a 2006 Pinot Noir from Bien Nacido Vineyard in Santa Maria Valley ($38), a 2004 Cabernet Sauvignon from Napa Valley ($38) and a 2007 Zinfandel from Sonoma County ($26).
The Tradewinds tier includes discovery wines such as a 2007 Riesling from Columbia Valley in Washington State ($18), a 2005 Shiraz from Alexander Valley ($22), a 2005 Bordeaux blend from the Yorkville Highlands area of Mendocino ($26) and a 2007 California Muscat ($20). Lastly, the G.E.O. (Green. Earth. Origin.) tier features wines grown on Foggy Bridge's estate vineyard in the San Francisco Bay appellation. These grapes are grown using organic practices with minimal intervention. The 2007 Chardonnay ($18) is the first G.E.O. wine available to the public, with a limited production of only 190 cases.
WSD BRIEFS:
WINDSOR FORCED TO LAY OFF EMPLOYEES. Yountville winery Windsor Vineyards laid off 16 workers this week as a result of the softening economy. As a high end wine, Windsor is seeing a slowdown in sales, and as a result let go about 10 people in the “cold calling” sales division on Monday, with six additional layoffs among support staff and production, reports The Press Democrat. Employees now total about 164.
GUNDLACH BUNDSCHU WINERY has appointed a new winemaker, Keith Emerson who replaces Linda Trotta, who served as winemaker for 20 years and oversaw the evolution of estate winemaking at the six-generation family winery. Keith is the director of winemaking for Vineyard 29 in St. Helena, Calif.
INERTIA BEVERAGE GROUP has appointed Paul Roberti as Senior Vice President & Chief Financial Officer, the company said today.
Until tomorrow, Megan
“What is a cynic? A man who knows the price of everything and the value of nothing.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 5
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Fri
This month last year ended on a: Thurs
YTD sell days Over/Under: 0
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 12:36 PM
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