Splash Beverage Signs Heimark for South Calif.

Posted on February 8, 2022 by Joel Whitaker

Splash Beverage Group, Inc.  said it signed a distribution agreement with Heimark Distributing to distribute TapouT through the key Southern California markets.

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Hercules Mulligan Rum & Rye Launches in NY

Posted on February 8, 2022 by Joel Whitaker

Hercules Mulligan Rum & Rye (43% ABV/$38), formerly distributed only through direct-to-consumer Flaviar, launches on-premise in New York and plans to expand into additional markets. It’s being distributed by Empire.

Hercules Mulligan was created and launched during the COVID-19 pandemic on Nov. 25, 2019.  The brand was able to leverage its DTC audience to receive feedback from its consumers, then tweak and improve based on its customers’ feedback. Once the product met its full potential, the company leveraged its consumer base to fuel a crowdfunding round, raising $750,00 in just three weeks.

Following its successful crowdfund, the brand is now able to expand beyond its direct-to-consumer offering and bring it to a wider audience in New York with plans for expansion into additional markets just around the corner.

Hercules Mulligan Rum & Rye was inspired by the man himself ­– a tailor, Irish immigrant, spy, and unsung hero of the American Revolution. It is a 50:50 blend of Caribbean aged rum and home-grown American rye whiskey inspired by the revolutionary era. Fresh, organic, ginger root is macerated in the rum and rye blend, and a splash of bitters is added, ensuring this liberating libation can be enjoyed on the rocks as a ready-made Irish Old Fashioned.

Steve Luttmann, a spirits industry veteran, teamed up with Grisa Soba, co-founder of Flaviar, and Mario Mazza of New York-based Five & 20 Distilling, master distiller for Hercules Mulligan Co.

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UK’s Royal Mash Vodka Names PACE Its U.S. Agent

Posted on February 8, 2022 by Joel Whitaker

Royal Mash Ultra-Premium Vintage Vodka partnered with PACE, a specialist Direct-to-Retail sales agency to handle the product across the country.

Royal Mash Vodka is distinguished by the exclusive Jersey Royal potatoes from which it is made. It is truly a ‘vintage’ vodka as it is made just once a year, when the world’s finest potatoes – Jersey Royals – are harvested.

Royal Mash was created by Rachel de Caen, a trained chef, and Peter Le Fol du Taillis. The Royal link originates both from the potatoes and the Royal connections of the Jersey-based owners. The Royal Mash logo is the crest of the Le Fol family, who were ennobled by Henry IV in 1594.

The brand is sustainable using uses potatoes which are over- or under-sized for retail that would otherwise need to be ploughed back into the land.

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Who & What —

Posted on February 8, 2022 by Joel Whitaker

Desert Door Texas Sotol hires Rachael Vallejo Carneglia as director of marketing.   She joins from the Austin Parks Foundation, where she was marketing director.

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Surville Enterprises, a subsidiary of Barton & Gustier France, is renamed BGPL USA a representation of the three wine houses the company imports and distributes: Barton & Guestier, Patriarche and Listel – the three parent companies of the French Castel Group.   Carlos Varela was recently promoed to CEO.

In addition to the name change, BGPL USA has bolstered its U.S. team, adding three hires in key markets. Jessica Rutter, California Sales Manager, brings 11 years of experience to her role with a strong background in sales, marketing and business strategy for Champagne and Fine Wines. An experienced sales representative, Benjamin Aubry, Illinois & Canada Field Manager, brings 10 years of wine industry knowledge to his position. Lastly, Noemie Dauvissat was promoted from Pacific NW Field Sales Manager to National Marketing Manager for BGPL USA, and previously held a position as Brands and Marketing Manager for Finewines in Vietnam.

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What We’re Reading —

Posted on February 8, 2022 by Joel Whitaker

Has U.S. Wine Industry Consolidation Gone Too Far?

A lot of wine is sold in grocery stores, and the top 5 U.S. grocery companies account for about half of total revenues in that sector. Big store chains, with their thousands of assorted SKUs, tend to prefer to work with a small number of distributors in each product segment if possible. So maybe it is no surprise that the top 3 wine distributors account for about 65% of revenues according to Zepponi’s data. Connect the dots here and it is easy to see why distributors might favor large wine companies with broad portfolios.

Big favors big, which favors big. Evolutionary forces point towards increased concentration, even in an industry as fragmented in some ways as wine.

To a certain extent, then, wine consolidation is the result of a process (accelerated by the covid channel shifts) that is affecting retail more generally. Consolidation, in this view, starts at the retail level and works its way backwards. (The Wine Economist)

 

 

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On-Premise Drinking Shifts to Weekends: CGA

Posted on February 8, 2022 by Joel Whitaker

COVID-19 restrictions and working from home have triggered a notable shift in drinking-out occasions to weekends, CGA says, noting that Saturdays and Sundays have increased their share of total wine sales by 3 and 2 percentage points respectively.

CGA’s outlet data shows the number of dining and drinking outlets in the  US fell 4.7% between late 2019 and late 2021. Independents (down 5.4%) have been hit harder than chains (down 0.8%), while the fine dining (down 20%) and premium nightclub (down 27.3%) segments have suffered most. With the market now building back, some of these deficits should be made up as 2022 progresses.

On Premise continues to play a pivotal role in drinking choices in the U.S., CGA says.  More than half (53%) of consumers say menu options influence their alcohol purchases in stores—a reminder that drinks brand-building starts in bars and restaurants.

Spirits have been among the biggest category winners of the last few years. They took a 44.3% share of all drinks sales over the last year—a rise of 1.7 percentage points since 2019. Tequila has been the big winner in market share terms, but whiskey and vodka remain the two biggest categories by value, with 53.6% of sales between them. Cocktails remain a major driver of spirits, with Margaritas, Moscow Mules, Martinis and Mojitos having the highest value velocity.

In contrast to spirits, beer’s share of sales has stayed flat over the last two years. The craft category, down by 2.3 percentage points, has seen the largest dip, though imported and super-premium beers have grown share.

While wine sales have been well below pre-COVID-19 levels lately, two types—Cabernet Sauvignon and French Champagne—have achieved growth in market share. They now attract 20.5% of all wine sales between them.

The hard seltzer category continues its inexorable rise in the US On Premise. In Fall 2019, 8% of consumers had drunk one in the previous three months—but by Fall 2021, the number had doubled to 16%.

More market share growth can be found in no and low alcohol drinks. Small but significant number of consumers have drunk no/low cocktails (11%), beer (10%), wine (10%) and spirits (8%) in the last three months.

There are some positive signs for spending in the US On Premise in 2022. Nearly half (47%) of consumers plan to visit venues more often that they did in 2021, compared to just 10% who think they will visit less. Around a third (34%) think they will spend more too, while 8% will spend less.

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