The acquisitive Glazer's is creating a J-V with leading US Virgin Islands beer, wine, and spirits distributor Premier Wine and Spirits to create a new company, Glazer's Premier Distributors, LLC, effective October 1.
Glazer's says that it is making a financial investment while Premier is putting its operations and assets into the new venture. Suppliers of the company include Pernod Ricard, SABMiller, Beam Global, Campari, Patron, Imperial Brands, Serralles, Sidney Frank, Constellation, and Red Bull. "Premier has operations in St. Thomas and St. Croix. Glazer's Premier expects to continue with its core suppliers and expand the business with the resources of Glazer's," said the company.
Glazer's chief Shelly Stein, "We have taken the first step of Glazer's long term strategy to grow internationally, which we believe will create new value for our strategic suppliers. We are extremely excited by this new opportunity, and are looking forward to growing our Caribbean footprint with our new partners."
WINERY DIRECT SHIPPING NEARLY 10% OF ALL SALES
Direct-to-consumer wine shipments are now an incredible 8.6% of total U.S. retail wine dollar sales, and increasing at a rate of 10.3%, far outpacing total wine growth. In fact, it's a $1.35 billion industry at retail. That's according to estimates by ShipCompliant and Wines & Vines Magazine for the 12 month period ending in July, using ShipCompliant transactions as a base to extrapolate total direct shipping sales.
That has to be a wake up call for wholesalers and retailers. By the end of the year, nearly 10% of wine will likely be sold through direct shipping. It's becoming quite a sizable channel.
A few interesting facts from the report:
-Four States Get The Most Wine: California, Texas, New York and Florida account for 54% of all shipments from wineries.
-Three Varietals Account for Bulk of Shipments: Cabernet Sauvignon, Pinot Noir and Chardonnay account for nearly 60% of all wines shipped during the period.
-Expensive wines rule channel. Not surprisingly, wines priced at $50 or more a bottle represent 21% of all case shipments to consumers, but account for nearly 50% of the dollar value. Wines priced at $100 or above account for 4% of the volume, but 19% of direct dollar sales, and are growing at 15%. Direct-to-consumer wine shipping is very much about high-end wines. It's not surprising because the shipping costs are lower as a ratio to the total cost of the wine.
-Larger Wineries are Increasing Their Shipments: While medium sized wineries account for the majority of volume of wines shipped, larger wineries saw the greatest percent increase in volume of wines shipped.
-Napa Valley Dominates. Shipments of wine from Napa wineries account for 50% of the value of the direct shipping channel, while accounting for only 34% of the volume.
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Until tomorrow, Emily
"I don't want to own anything that won't fit into my coffin."
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