Campari Group Sales Up 22.6%, Profit Surges 52.4% in 2021

Posted on February 23, 2022 by Joel Whitaker

Compared to the full year 2019, which represents the unaffected base with regards to the Covid–19 impact, the organic growth was +20.5%. The positive net sales organic growth continued in the fourth quarter, up +20.9%, despite the challenges of logistic constraints (+12.0% vs. the fourth quarter of 2019).

Sales in the Americas (42.7% of total Group sales) were up organically by +23.0% (+19.9% vs. full year 2019). The Group’s largest market, the U.S., grew by +18.9% (+22.8% vs. full year 2019), with continued growth in the last quarter (+6.8% vs the fourth quarter 2020, +20.2% vs the fourth quarter 2019) benefitting from the on–premise reopening and
sustained consumption in the off–premise.

In particular, Espolòn, Grand Marnier and Aperol registered strong double–digit growth, while Wild Turkey, with high–end expressions outperforming, and Campari grew by high single digit. Off–premise sell–out in the U.S. reflected the very tough comparison base from last year, while the 2–year stack grew +28.2%, ahead of the overall spirits market1. Canada grew by +10.9% and Jamaica registered strong growth (+28.0%). The rest of the region, including Brazil, Mexico and Argentina, grew by double digits with improved brand momentum and an easy comparison base.

Global Priority Brands (56.4% of total Group sales) registered an organic growth of +26.2% (+20.9% vs. full year 2019). Aperol
grew strongly at +32.8%, thanks to renewed strength in consumer recruitment in the on–premise channel alongside sustained home consumption. Core markets such as Italy, the US, France, the UK, Russia, Switzerland, Belgium, and Austria grew by double digits, while newer markets such as China and Mexico grew even faster.

Campari grew by +23.4% vs full year 2019, largely driven by core Italy. Wild Turkey showed strong growth (+10.9%, +16.1% vs. full year 2019), mainly driven by the outperformance of premium
expressions in the core US market. SKYY grew +8.2% driven by the international markets, particularly in South Africa, while the core US market was slightly negative.

Grand Marnier (+43.2%, +21.2% vs. full year 2019) registered strong growth in the core US market thanks to the positive cocktail home consumption trends as well as the success of the Grand Margarita in both channels. The growth in the Jamaican rum portfolio (+22.7%, +27.8% vs. full year 2019) was
driven by the favorable category trends in premium rum, particularly in the core US, Canada, Jamaica and the UK.

Regional Priorities (19.3% of total Group sales) showed a strong performance (+29.8%, +31.7% vs full year 2019), with solid growth of Espolòn (+37.5%, +77.6% vs. full year 2019), Bulldog, The GlenGrant, Cinzano, the Sparkling Wines
(Mondoro and Riccadonna), the Bitters and Forty Creek. Other brands such as Bisquit&Dubouché grew, driven by
South Africa and China, while Ancho Reyes and Montelobos both registered strong growth thanks to very positive
category momentum, particularly in the U.S.

– Local Priorities (12.3% of total Group sales) registered a positive performance (+24.6%, +20.7% vs. full year 2019),
mainly driven by Campari Soda, thanks to its successful relaunch, and Aperol Spritz ready–to–enjoy. Regarding other brands Magnum Tonic grew by double–digits and X–Rated was up triple–digits.

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DISCUS Urges Maryland to Slash Tax on Ready-to-Drink Cocktails

Posted on February 23, 2022 by Joel Whitaker

The problem is “Maryland spirits consumers are forced to pay much higher taxes for a spirits-based RTD product even if the product has the exact same or similar amount of alcohol as an RTD made with malt, sugar or wine,” said Jay Hibbard, senior vp-state government relations, Distilled Spirits Council of the U.S.

Under the proposed bill, the tax rate on spirits-based RTDs would be reduced from the current rate of $1.50/gallon to $0.40/gallon.

Hibbard stated that the excessive tax burden on spirits producers is a steep hurdle for Maryland distillers trying to enter this growing category. According to a 2021 DISCUS survey of craft distillers, 62 percent of those not currently producing RTD products cited the higher tax rate as a barrier to entering the market.

Hibbard also noted the Maryland Department of Health’s definition of alcohol clearly states that a 12-ounce bottle of beer or wine cooler, a 5-ounce glass of wine or 1.5 ounces of 80-proof distilled spirits all contain the same amount of alcohol.

“To suggest by statement or policy that some forms of alcohol are ‘softer’ than others sends a dangerous message when science has long recognized that standard servings of distilled spirits, beer and wine contain the same amount of alcohol,” Hibbard said. “This is a critical aspect of responsible consumption.”

Maryland is one of many states taking a closer look at this issue to ensure that producers of spirits-based RTDs are being taxed fairly and that consumers have equal access to these products in the marketplace. Twenty-four states already have lower tax rates for lower-abv spirits-based products. In fact, last year bills to reduce the state excise tax on spirits-based RTDs passed in Michigan and Nebraska.

Hibbard completed his testimony by stating, “There is no public policy rationale for maintaining policies that stifle innovation and prevent competition. In fact, we think policies should foster both innovation and competition, and then let consumers decide.”

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SGWS to Rep Insolito Tequila

Posted on February 23, 2022 by Joel Whitaker

Southern Glazer’s Wine & Spirits said it signed a multi-state distribution agreement with Insolito, a small-batch, super-premium tequila from the brothers Octavio and Alberto Herrera, who own and operate the Premium de Jalisco distillery; double Grammy-nominated band Midland; and Spirits Innovation Partners (SIP). Southern Glazer’s will have exclusive distribution rights for Insolito in Texas, California, Florida, New York, Illinois, Colorado and Arizona.

Launched in February of 2020, Insolito is distilled at an altitude of 7,200 feet in the Sierra Del Tigres mountains of Jalisco within a town called Mazamitla. The high altitude and cooler temperatures provide for a slow, natural aging process, resulting in more complex flavors.

Similar to the aging process of bourbon in Kentucky, the broad temperature fluctuation of aging at nearly a mile and a half above sea level allows the tequila to travel into and out of the barrel wood at a higher rate, developing layer upon layer of complexity.  The brand chose to use only new American White Oak barrels for the aging process, allowing the 100% Blue Agave spirit to mingle with the barrels’ richness and hints of natural caramel and vanilla without the influence from other spirits previously aged in those barrels.

Insolito will be included in Southern Glazer’s recently launched Craft Collection Luxury Spirits division in California, Texas and Florida, supported by a dedicated sales and marketing team focused on high-potential, super-premium craft spirits.

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Glendalough Releases Mizunara Cask-Finished Whiskey

Posted on February 23, 2022 by Joel Whitaker

Glendalough Distillery launched a 7-year-old Irish single malt aged in very rare Japanese Mizunara casks sourced from the island of Hokkaido, Japan. 

A relentless search for the most flavorful oak in the world took them from their own wooded mountains in Wicklow to those in the volcanic north of Japan, Hokkaido. This is where they found Mizunara, the most sought-after oak in the whiskey world.

As the first Irish whiskey brand to use the rare and exotic Mizunara, they had very much ventured into the unknown. Bringing Irish single malt and Japanese oak together went far off the beaten path, literally, but it has led to this wonderfully different whiskey.

Mizunara’s rarity makes sourcing a great undertaking, but Glendalough was ready for the challenge of being the first Irish whiskey to utilize this oak. The trunks of these uniquely beautiful trees are prone to growing twisted, and they must grow to be twice the age of most oak trees before they can be felled. It then takes three years to dry, and even then, is notoriously difficult to cooper due to its porousness. However, therein lies its saving grace: whiskey can seep deeper into the wood, resulting in an alluring, exotic flavor.

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Old Forester Releases 3d in 117 Series, 1910 Extra Old

Posted on February 23, 2022 by Joel Whitaker

Old Forester Distilling Co. (Brown-Forman) released the third installment of The 117 Series – 1910 Extra Old.

The limited-edition expression is Old Forester’s standard 1910 Old Fine Whisky that has been left to age 18 months in a secondary barrel – hence the name “extra old.” The result is a bourbon with intense caramel notes.

“This release in The 117 Series is a curious exploration into the intensity of the proprietary heavily charred 1910 barrel,” Master Taster Jackie Zykan said. “This liquid was allowed to rest for 18 months in this secondary barrel, extracting significantly more of the heavily charred influence.”

1910 is a beloved Old Forester expression that commemorates an important moment in Old Forester history.

On Oct. 22, 1910, a fire on the bottling line halted the production of Old Forester. Mature whisky ready to be bottled was instead stored in a second barrel. What emerged was a delightful whisky, remarkable enough to become an entirely new expression – Old Fine Whisky.

The 117 Series is a limited-expression lineup that debuted in Spring 2021.

Old Forester 1910 Extra Old is bottled at 93 proof and is available at the retail shop at Old Forester Distilling Co. and in select states for direct-to-consumer sales for $49.99 in limited quantities — and at select Kentucky stores.

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Crux Fermentation Expands Non-Alc Line-Up

Posted on February 23, 2022 by Joel Whitaker

Crux Fermentation Project, Bend, Ore., released its newest non-alcoholic beer: NØ MØ HAZY IPA. Crafted with traditional brewing ingredients so drinkers will find a similar flavor and mouthfeel, NØ MØ HAZY IPA features Pacific Northwest-grown BRU-1 and Sabro hops for big tropical flavors with hints of pineapple and coconut. Like Crux’s first non-alcoholic beer last year, NØ MØ IPA has 30 calories and less than 0.5% ABV.

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