Ukraine’s XDar Vodka Resumes Production

XDar, a world-renowned Ukrainian vodka, has safely resumed production at its distillery in this time of unrest.

When conflict broke out in mid-February, XDar was forced to halt vodka production but continued to pay its 4,400 employees, some of whom are currently serving in the Ukrainian army to protect their country.

“The people at XDar are committed to their employees,” said Natalya Kolosok of Liquorum Imports, Inc., the US importer of XDar. “They are some of the strongest people in the world. The employees, while grateful for the assistance, don’t just want a check, they want purpose. They want to work, which is why, as safely as possible, XDar opened up their facility to resume production.”

The modern, high-tech XDar Distillery was built in 2005 in Cherkassy region near Belarus and north of Kyiv, where the largest supply of mineral and freshwater resources is concentrated. XDar has created more than 100 signature recipes of distilled beverages and continues to innovate past the 18 unique patents already in place. Prior to the invasion by Russian forces, the factory was capable of producing over 150 million bottles per year. In 2021, the brand sold upwards of 8 million cases worldwide.

Dar is a unit of XBayadera Group, one of the largest alcohol holding companies in Eastern Europe, with 30 distribution offices nationwide. Currently, the company exports brands such as XDar to 45 countries, and has officially donated more than $150,000 in support of Ukrainian troops.

XDar has also seen support from its partners in the US. Royal Wine Corp., distributor of XDar vodka in the New York and New Jersey markets, is donating all proceeds from sales during March to Ukrainian relief efforts, with more than $100,000 raised already.

“Knowing how much our simple gesture means to the Ukrainian people is very humbling,” commented Mordy Herzog, CEO of Royal Wine Corp. “The drive and determination of the Ukrainian people in the face of adversity is truly amazing, and we look forward to raising awareness for this incredible company.”

“The amount of support we’ve seen has been incredible,” added Liqorum’s Kolosok. “People want to do what they can to help, and the more vodka we sell, the more people we can bring back to work.”

XDar is made from ecologically pure artesian well water and premium grain harvested from black soil, so there is no need for additional purification or artificial enrichment. The vodka rests for 24 hours to ensure the best spirit and water dissolution before being processed through eight meticulous filtration stages. ABV 40%. $16 on Drizly and shop.royalwinemerchants.com.

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Añejo Tequila Snags One-Fifth of Drizly Tequila Orders

Añejo tequila has accounted for a 19% share of the tequila category on Drizly over the past 12 months. While it’s still a lower share than reposado and blanco, the añejo share on Drizly has risen three percentage points from a 16% share the prior 12 months.

The añejo subcategory is the priciest among the tequila subcategories, and the average unit price is only going up. Over the past 12 months, the average unit price for añejos on Drizly was $98, compared to $85 over the previous 12 months—a 15% increase year-over-year. Añejo has seen the strongest year-over-year growth in tequila subcategories. Reposados reach an average unit price of $57, while blancos have an average unit price of $38.

As with some other spirits categories, the rising average price point can in part be attributed to premiumization trends.

“We’ve seen a trend toward premiumization within the spirits category overall; however, it has impacted different categories differently,” says Liz Paquette, Drizly’s head of consumer insights. “Whiskey and tequila have seen growth in high price-point categories like Scotch and añejo, while other categories like vodka have not seen such impact.”

Another factor in the rising sales of añejo tequila is that people are swapping lower-priced styles for añejo. “We are seeing consumers trade up within tequila as they become more educated on the category and seek to try new styles beyond silver or blanco,” says Paquette.

The subcategory is also attractive for people looking to send gifts. Key sales-driving occasions are days associated with gifting, with Mother’s Day and Father’s Day as important ones to watch coming up as well as looking ahead to the Q4 holidays.

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Who & What —

 ReserveBar  elevates two executives who were part of the leadership at Minibar Delivery, which ReserveBar acquired in November 2021. Andrew Jacobson has been appointed the Chief Operating Officer of ReserveBar. He was formerly the Chief Operating Officer of Minibar Delivery. In addition, Lauren Henderson, who was the VP-Brand Partnerships and Marketing for Minibar Delivery, has been named the Head of Minibar Delivery Product, responsible for the day-to-day executive leadership for Minibar. Lindsay Held, Chief Executive Officer of ReserveBar, is now CEO of both companies.

Fresh Vine Wine, Inc. hires Ellen Scipta as Chief Financial Officer. Most recently, she was CFO of Intricon, a joint development manufacturer of advanced micro-medical technology. Elliot Savoie, who had been serving as Fresh Vine Wine’s CFO since its IPO, has transitioned to Head of Corporate Development and Ventures.

 

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At NBWA’S Leg Conference, Liquor is Topic No. 1

Liquor is the enemy.

That’s the clear message given 550 members of the National Beer Wholesalers Association who gathered at the Hyatt Regency Capitol Hill Hotel in Washington Monday (4/4) for NBWA’s first legislative conference after Covid-19 forced cancellation of the 2020 conference.

With beer shipments sinking month after month, “the liquor industry is going on the offensive to seek lower taxes” that would actually be equivalent on a unit-of-alcohol basis with beer and to be able to ship distilled spirits direct to consumers through the U.S. Postal Service, NBWA President/CEO Craig Purser said.

“Liquor is swinging for the fences,” Purser said, using a baseball analogy just three days before Major League Baseball’s Opening Day, April 7.  That day also happens to be the day in 1933 when Prohibition ended for beer and wine and the day a wagon of beer was delivered to President Roosevelt in gratitude.

The issue for beer now is the distilled spirits industry’s reinvigoration of its equivalency advocacy — the idea that a drink is a drink is a drink, and it doesn’t make any difference what that drink is.  If a drink really is a drink, and if it doesn’t make any difference whether the drink is beer, wine or spirits, then the alcohol in each beverage should be taxed at exactly the same rate, the distillers argue.

But Purser said, the differences between beer and liquor have been recognized for centuries, and not just in the U.S.  Worldwide, beer is taxed at a lower rate than spirits.

Justin Kissinger, CEO, Worldwide Brewing Alliance, said the campaign for governments to recognize alcohol equivalence is a global campaign.  The Alliance is interacting with global agencies, such as the World Health Organization, to explain what makes beer different and why the differential in tax rates should be maintained.

Retailers really suffered during the Covid pandemic, Purser said, adding the hotel in which the conference is being held closed its doors just a few days after NBWA had to cancel the legislative conference because of Covid in 2020.

John Bodnovich, executive director, American Beverage Licensees, the retail trade group, said “retailers build brands” and added liquor’s drive for direct-to-consumer shipments not only doesn’t take into account public health concerns, but also fundamentally would change the way business has been built.

Jim McGreevey, president/CEO, Beer Institute, said policy makers are “seeing through and rejecting” liquor’s lower FET proposals.

The final policy issue addressed during the conference was CBD beverages.  Bodnovich said it was important that policymakers understand the current alcohol regulatory scheme is “finely balanced” and should not be sacrificed however policymakers decide to deal with CBD.  He said he was especially concerned about impaired driving increasing because of marijuana.  “Beer,” he said, “is different and better than marijuana.

“The world is watching what’s happening in the U.S. regarding cannabis,” Kissinger said.

Purser concluded the discussion saying, “We don’t want alcohol regulation to be a casualty of the debate over cannabis.”

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TTB Focused on Executive Order on Competition, Added Mission

Alcohol & Tobacco Tax & Trade Bureau is focused on responding to President Biden’s recent executive order on promoting competition, David M. Wulf, deputy administrator, told National Beer Wholesaler Association‘s legislative conference.  “The fact alcohol is mentioned is a recognition of the alcohol industry’s importance,” he said.

TTB is considering possible trade practice updates, along with revisions to the process of establishing standards of identity and ingredient labeling.  “You can count on the process being open and inclusive,” he said.

TTB is also focused on improving the industry’s “TTB experience,” he said, with efforts under way to further cut the time required to process COLA and formula applications, as well as to improve the online process.  “We want your business to grow and thrive and to contribute to the federal excise tax base.”  Other priorities include maintaining a competitive marketplace and trade practices.

The agency is still incorporating provisions of the Craft Beverage Modernization Act, Wulf said as it gears up to take over some bev/al import responsibilities from Customs & Border Protection.  Wulf noted that the President’s budget includes $14 million and authorizes hiring of 40 people to implement that mission.   Whether Congress will approve both the funding and the personnel in time to meet the Jan. 1 deadline when TTB assumes that function is an open question.

Wulf noted that TTB collects about $20 billion a year in taxes which makes the agency and its 550 employees the federal government’s third largest tax collecting agency behind the Internal Revenue Service and U.S. Customs & Border Protection.

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2022 Likely to Be a Miserable Year for Democrats, Analyst Tells NBWA

Charlie Cook, editor of the Cook Political Report newsletter, told the National Beer Wholesalers Association‘s legislative conferance that the 2022 election is goi said American politics is more divided that at any time since the Civil War and Reconstruction.  “This is an unusually important election because the country is divided, politics is divided and the policy consequences of changes in control are much greater than before.”

Cook noted that in the 2016 election, which brough Donald Trump to Washington, results in six states were divided by just 1.5 percent, and 78,000 votes in those six states put Trump in the White House.  President Joe Biden’s margin in 2020 was less than 120,000 votes across six states. As for the Senate, this is only the second time since the country began the direct election of senators that the Senate has been split 50-50, Cook said.  “Politics used to be stable,” he said.  Not any longer.  Now politics is very volatile.

There is a huge gap between the parties, he added.  It used to be that conservative Democrats were the ballast that kept  the Democrats from going off the rails, and the same thing was true for liberal Republicans from the Northeast.  Now, conservative Democrats and liberal Republicans are almost oxymorons and the two parties are virtual silos.  One more indication of how “siloed” politics has become:  2016 was the first election in which every U.S. Senate race was won by the same party that won that state’s Presidential race.

Turning to the 2020 midterm election, Cook said the deciding factor will be which side is more motivated to turn out.  Truly independent voters or represent about 10% of the electorate, and they tend to get “buyer’s remorse” and vote against the party that won the White House.  For independents, the two major mid-term election issues are (1) competence and (2) overreach.  “In 36 of the 39 elections since the Civil War, the party in the White House loses seats in the House,” Cook said, adding that he expects Democrats to lose their majority in the House and are likely to give up several seats in the Senate.

Cook made an interesting observation when he discussed unemployment and inflation.  If the normal unemployment rate is 4% and joblessness surges to 8%, that means 4% of the country is affected by unemployment.  But, he added, 100% of the country is affected by inflation, and President Biden’s approval rating on inflation is only 43%.

Cook said he thinks Biden and the Democrats are in big trouble and he traces that back to the four challenges he faced when he took office:

  • The first was Covid, and Biden gets reasonably good marks is that department.
  • The second was illegal immigration which is surging.
  • The third was the departure from Afghanistan.  On Afghanistan, which is hurting Biden and the Democrats is not the fact the U.S. left but how it left.  By comparison, Cook said, the U.S. departure from Saigon was almost quaint.
  • The fourth challenge was his legislative agenda.

On the legislative agenda, it was a good thing the infrastructure bill passed. That was good for the country and good for beer wholesalers.  But the “Build Back Better” bill was a big mistake.  “It wasn’t going to get GOP support,” Cook said.

So why did Biden stick with.  Early in his presidency he met with a group of presidential historians who talked about President Franklin Delano Roosevelt’s New Deal and Lyndon B. Johnson’s Great Society.  But FDR’s Democrats held 59 of 96 U.S. Senate seats (Alaska and Hawaii hadn’t been admitted as states yet), and LBJ had 68 of 100 U.S. Senators.  Biden has an evenly divided Senate.

“If you want to do big, historically transformational things,” Cook said, “you have to win big.  Biden doesn’t have a mandate.”

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