TTB Seeks 21.33% Budget Boost Mostly to Administer Import Rebate Claims

Alcohol & Tobacco Tax & Trade Bureau is seeking $14.9 million and 40 additional employees to administer a new import claims program. The Craft Beverage Modernization Act (CBMA), as amended, transferred jurisdiction for import-related provisions from U.S. Customs and Border Protection (CBP) to Treasury as of Jan. 1, 2023, and Treasury intends for TTB to administer the new CBMA import claims program.

Under the law, starting in 2023, alcohol beverage importers will no longer be eligible for the CBMA tax benefits at the time of entry; rather, importers will be required to pay the full tax rate at entry and submit quarterly refund claims to TTB to receive the benefits. TTB anticipates that this program will roughly double its current claims workload, estimating that importers will submit approximately 7,000 claims per year for roughly $250 million in refunds.

The FY 2023 request supports the development and maintenance of
custom information technology (IT) modules for foreign producers and importers to enable online filing and processing of claims as well as additional tax administration and enforcement staff necessary to timely issue refunds.

 

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What Millennials Are Drinking

Millennials, whose ages range from 26 to 41, favor spirits and beer over other beverages, according to Drizly, which finds they over-index on beer (17% share versus 15% for the other generations), and slightly under-index on wine (37% vs. 38% ). Liquor holds 44%of share among millennials.

Within the spirits category, on Drizly, millennials over-index on tequila and ready-to-drink cocktails, with RTDs holding 5.2% of spirits share and tequila holding 20%  of spirits share. Millennials also specifically over-index on silver/blanco tequila.

Whiskey also tends to be a favorite of millennials at 37% of spirits share; this generation’s top sellers include bourbon, Scotch, and Irish whiskey.

Within the beer category, hard seltzer holds 24% of beer share on Drizly for millennials (versus 21% for other generations), and IPA (including standard, double, imperial, hazy and New England varieties) holds 17% share (versus 15% for other generations). This suggests that millennials appreciate a variety of malt-based beverage styles, from crisp and refreshing to bold and hops-forward.

Millennials over-index on Champagne and sparkling wine on Drily, with the category holding 28% sales share for millennials versus 25% for other generations. This is the No. 2 wine category for millennials, while white wine ranks second across other generations.

Mariana Fletcher, the head of analytics and insights at IWSR Drinks Market Analysis has also seen younger generations gravitate toward sparkling wines. However, she notes the occasions for drinking them differ between millennials and Gen Z.

“We’ve found that millennials associate Champagne with parties and celebrations at home, while Gen Z relates the drink to occasions outdoors on the street, or in virtual gaming events,” she says. “It’s the same drink, but in very different occasions.”

Millennials’ wine preferences run toward dry selections over sweet, says Sciaretta, and they enjoy a wide range of varieties. “This generation is very willing to try wines from off-the-beaten path regions,” says Sciaretta, “and wines made with esoteric grapes like Godello and Falanghina.”

Whether they choose wine, beer, or spirits, millennials prioritize treating themselves with higher-quality products. According to IWSR Drinks Market Analysis, off-premise spending peaks between $30 and $49.99 per unit for millennials. Gen Z, on the other hand, typically stays below the $29.99 price point and boomers prefer the under-$20 category.

What’s Trending: No/Low, Cans, and Shared Values

Across the beer, wine, and spirits categories, millennials purchase more non-alcoholic and low-alcohol beverages than other generations. Alcohol-free drinks accounted for 0.22% share of total sales on Drizly during the past 12 months, compared to 0.18% share for all other generations.

Millennials also buy a greater share of canned beverages on Drizly, making up 14% of sales share compared to 13% for other age groups. Bottle sales make up a slightly lower share for millennials at 82% versus 84% for all other age groups.

When it comes to choosing brands, millennials tend to seek out producers that share their ethical and environmental values. “These are topics that positively influence many millennials in their attitudes toward businesses,” says Fletcher.

Star power is another draw for this generation, particularly for younger millennials. However, says Sciaretta, it has its limits.

Celebrity products where the quality and value are good enough to warrant repeat purchases, and where the products are savvy enough to become solid brands, are the most successful,” she says. “Examples include the rosés Hampton Water and Miraval. Otherwise, these products can be like shooting stars— they get decent sales when initially released, but then the interest quickly fades away.”

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Heineken and Carlsberg Said They Will Exit Russia

Danish-based Carlsberg has a 27% share of the market through its ownership of Baltika, the country’s largest brewer.  Carlsberg said it will book a “substantial non-cash impairment charge.”  Last year, Russia accounted for 10% of Carlsberg’s total revenue and 6% of its operating profit.

“We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment,” Carlsberg said. “Upon completion we will have no presence in Russia.”

For Heineken, with only 2% of its sales in Russia, the decision to exit was less painful.  It said it will seek an “orderly transfer” of its business, while reducing operations in an effort to avoid nationalization.

“We have concluded that Heineken’s ownership of the business in Russia is no longer sustainable nor viable,” the company said in a statement, adding that it would not profit from any transfer of ownership.

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Iconic Brands Launches New Line of Premium Quality, Zero Sugar Still Wines

Iconic Brands, Inc. said it  launched Bellissima Zero, a new line of zero sugar still wines created by Bellissima Prosecco and co-developed by Bellissima brand partner, supermodel, actress and entrepreneur, Christie Brinkley.

Bellissima Zero is available in five expressions: Pinot Grigio IGT, Chardonnay IGT, Rosé Wine, Merlot IGT and Cabernet Sauvignon IGT.

Bellissima Zero has zero sugar, a serving size of approximately 1g Carb per 5 oz, is made with organic grapes and is certified vegan. Bellissima’s Zero is boutique winery quality, with no residual sugar and no compromises on taste. Iconic Brands said it believes Bellissima Zero will live up to the expectations of the most demanding wine connoisseurs, offering all the essence of its terroir.

“Launching Bellissima Zero is a major milestone for us. We believe  Bellissima Zero will help us capture a larger share of growing trends that we are seeing in the alcohol industry, with a push for Keto options, ‘Better-For-You’ options and health and wellness options, in addition to sustainability and unique branding with a story that consumers can connect to,” said Iconic Chief Executive Officer, Larry Romer.

The new line of Bellissima Zero still wines adds to Bellissima’s growing portfolio of BFY and “better-for-the-planet” products that provide sustainable choices and align with consumers’ health and wellness lifestyle choices. Bellissima’s current line of Prosecco and Sparkling Wines are made with organic grapes, are certified vegan and are available online and in wine and spirits retail stores across the country. They include Bellissima Prosecco DOC Brut, Sparkling Rosé Brut Wine, Zero Sugar Sparkling White Wine, Zero Sugar Sparkling Rosé Wine and Prosecco Rosé DOC Millesimato. The offerings also include Bellissima Bambinis, which are 375 ml bottles in most of the same expressions as the 750 ml bottles.

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Wine Group Launches Lemonade Stand at Main & Vine

Lemonade Stand at Main & Vine, a new line of wines blended with natural flavors of freshly-squeezed lemonade and ripe sun-kissed fruit. The wine is available nationally in two blends, Lemonade Moscato and Strawberry Lemonade Rosé, with a suggested retail price of $6.99 for 750mL and $11.99 for 1.5L.

Lemonade Stand at Main & Vine is the first mainstream wine brand to enter the lemonade category with varietal wines. Lemonade Stand at Main & Vine wines are lower in alcohol at 6.5% ABV and only 90 calories per 5 oz serving, as well as vegan-friendly and gluten-free. Available in 750mL and 1.5L bottles.

Lemonade-flavored products have already taken off in other alcoholic beverage categories and account for over $1.1 billion combined in the beer, seltzer, and spirits segments[ By bringing wine into this growing category, Wine Group expects Lemonade Stand at Main & Vine to bring new consumers and occasions to the brand and to the broader wine category, as, according to shopper data, flavored wine is a key driver for new buyers in the alcohol category.

“As a company, we are strategically focused on building new brands and launching innovative products that connect with all types of alcohol beverage consumers,” said Jeff Dubiel, Wine Group’s Chief Marketing Officer. “Lemonade Stand at Main & Vine is our most recent example. Sweet and flavored wines have been effective at bringing new consumers into the wine category, and we’re particularly excited about our potential as a first-mover in the lemonade space in wine.”

Lemonade Stand at Main & Vine will also support a fellow “lemonade stand,” Alex’s Lemonade Stand Foundation for Childhood Cancer. A donation from Lemonade Stand at Main & Vine will go towards furthering the foundation’s mission of changing the lives of children with cancer through funding impactful research, raising awareness, supporting families, and empowering everyone to help cure childhood cancer.

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Svedka Extends Line with Tropics Tea Spritz

Svedka Tropics Tea Spritz, a new spirits-based hard seltzer, combines Svedka Vodka with real tea, sparkling water, and natural tropical fruit flavors, – Pineapple Guava, Raspberry Kiwi and Orange Mango. (SRP: $19.99, 5% ABV)

It’s offered in a variety 8-pack containing four cans of Pineapple Guava and two cans each of Raspberry Kiwi and Orange Mango, all packed conveniently to go where the party is. The spirits-based hard seltzers are also available in a 4-pack for $12.99 SRP and a single can for $2.99 SRP.

“This is the summer of Svedka. With our new Vodka Tea Spritz, Svedka Tropics is filling the consumer need for a different type of spirits-based hard seltzer,” said Billy Lagor, Senior VP-Brand Management. “With real ingredients and a lower ABV, Svedka Tropics provides a depth of flavor and a unique taste experience that sets it apart from other hard seltzers. The RTD canned category continues to grow at a rapid pace, and we believe Svedka Tropics offers a fantastic option for any occasion.”

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