Here’s How Covid Changed On-Premise

Posted on December 13, 2021 by Joel Whitaker

Before COVID-19, 66% of on-premise users typically visited casual dining chains, and 83% of these consumers did so at least monthly, demonstrating a channel with high engagement and multiple opportunities for drinks suppliers to succeed. However, COVID-19 made On Premise occasions even more important to consumers. Operators need to be able to cater to new needs and expectations during visits.  That’s according to CGA.

Suppliers have long cultivated close relationshiups with bartenders, sommeliers and similar positions.  CGA’s latest research finds that after nearly 2-1/2 years of Covid, 56% of consumers in-venue would opt for recommendations made by the bartender. This emphasizes the importance of bartender advocacy programs within venues; having trained and knowledgeable service staff is invaluable as they identify opportunities for trade-ups and drink choice.

Because some venues now may find themselves with a reduced workforce to support in this final step of the sale, other paths to purchase must be optimized, CGA says.

The most popular alcoholic categories consumers are ordering in casual dining chains is led by beer (37%), followed by cocktails (27%) and wine (27%). As a result, casual dining chains should be a key target for all categories due to the many opportunities to influence a sale of the category and brands within the channel.

Optimizing drink menus plays a key part in influencing consumer drink choice. Fifty-five percent (55%)  f consumers would prefer a smaller range of brands and drinks on menus, which include their favorites, versus 45% who would prefer a wider range of choice. Menus must appeal to target consumers and where operators have implemented a reduced menu, suppliers must showcase the value of their brands to beverage directors and understand their needs when creating strategies to attract consumers.

Previously, the use of Off Premise or measurement data alone was seen as enough to facilitate partnerships between suppliers and operators. Coupled with limited data on targeting consumer demographics, this research provided limited insight for targeted activities to influence or grow value and share.

But recent CGA consumer pulse data has shown that 45% of consumers say their drink preference changes when visiting bars and restaurants versus having drinks at home. This demonstrates that visitors fundamentally ‘shop’ differently than Off Premise consumers.

Matthew Crompton, CGA’s Client Solutions Director, said “COVID-19 has been a catalyst for rapidly increasing the need for a comprehensive understanding of how consumers behave in the On Premise as  a minimum requirement. Every consumer visit is special and demands a unique value proposition that suppliers and operators must demonstrate when they visit.”

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Fresh Vine Wine IPO Priced at $10 a Share

Posted on December 13, 2021 by Joel Whitaker

Fresh Vine Wine, Inc. said it is offering 2.2 million common shares shares of its common stock at a public offering price of $10 a share through underwriters led by Oak Ridge Financial Services Group and Boustead Securities LLC.  The shares are expected to begin trading on the NYSE American on today (122/14) under the ticker symbol “VINE,” and the offering is expected to close on Dec. 16.

Fresh Vine Wine, Inc. co-owners Julianne Hough and Nina Dobrev, together with newly appointed Chief Executive Officer Janelle Anderson, are scheduled to be at the NYSE to ring the closing bell on December 16, 2021.

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40 Non-Alc Beverage Firms Create a Trade Group

Posted on December 13, 2021 by Joel Whitaker

Adult Non-Alcoholic Beverage Association (ANBA) is being formed by more than 40 leading brands and their founders and leaders to become the voice of the industry. ANBA will tackle challenges such as lack of universal regulations, industry standards, develop guides for international trade and market expansion, as well as act as a unified voice driving the education of all stakeholders – consumers, wholesalers, on and off-premise retailers, suppliers, and complementary industries.

The global market for non-alcoholic drinks is expected to grow to $30 billion by 2025, according to Global Market Insights. In the U.S., NA spirits grew 113.4% in the last year, when compared to the year before. NA beer is the fastest-growing segment in the industry and drove 31.7% of growth and NA wines grew 39.4%, according to NielsenIQ. This exponential growth makes evident the need for a trusted source and partner as brands expand domestically and internationally to keep up with rising consumer demand.

“The industry has an incredible opportunity to not only grow the marketplace, but ensure that all adult non-alcoholic beverages offer quality experiences and meet industry standards. This is another big step forward to destigmatize the non-alcoholic beverage industry,” said ANBA Board Chair and Athletic Brewing Co-Founder Bill Shufelt.

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107 Rowers Embark Upon Talisker Whisky Atlantic Challenge

Posted on December 13, 2021 by Joel Whitaker

Some 107 rowers from around the world set off on a voyage across the ocean for the start of Talisker Whisky Atlantic Challenge – an incredible 3,000-mile rowing race across the Atlantic Ocean.

The soul-changing journey and challenge of a lifetime saw competitors launching from the Spanish port of San Sebastian in La Gomera, Canary Islands to spend anywhere between 29-60 days at sea on average finishing in Nelson’s Dockyard in Antigua–Barbuda from January onwards. The crews will be exposed to all of nature’s elements – facing a multitude of weather conditions, up to 40ft waves and experience rare wildlife sightings.

The teams will be rowing for One For The Sea, an initiative launched by Scotch whisky brand, Talisker, to help support the protection and preservation of 100 million square meters of sea forest by 2023 alongside Parley. One For The Sea aims to empower people across the world to reconnect with the beauty and fragility of the sea and recognize our collective responsibility to take action.

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Fetzer Achieves Regenerative Organic Certification

Posted on December 13, 2021 by Joel Whitaker

Fetzer Vineyards, the largest winery in the U.S. certified as a B Corporation and a leader in regenerative winegrowing, announced it has achieved Regenerative Organic Certification (ROC) for all of its Mendocino County vineyard holdings and winery. Fetzer Vineyards is the world’s largest winery to obtain ROC certification, and is the third winery to certify to the standard, which publicly debuted in 2020.

“We need to diminish, if not entirely eliminate, the use of synthetic pesticides and fertilizers that raise our GHG emissions, harm our biodiversity, contaminate our air and waters, and damage our communities,” says Joseph Brinkley, director of regenerative farming for Fetzer Vineyards, whose role includes advocating for healthy soils legislation and advancing the company’s position on climate policy generally.

“The science supports the abundant connections between soil health and carbon storage, climate resiliency and healthy food systems—and regenerative organic farming is at the heart of this. At Fetzer Vineyards, we plan to continue building on what we’re doing at home, in our supply chain, and at the advocacy table to help advance a positive future for climate-smart agriculture, as we continue to drive scalable solutions to the climate crisis.”

Regenerative Organic Certification (ROC) is a revolutionary new certification for food & beverage, textile and personal care industries that assures shoppers certified farms and products meet the highest standards environmentally, ethically and socially. Certified at the ROC Silver level, Fetzer Vineyards has demonstrated adherence to rigorous standards across the program’s applicable pillars – soil health and social fairness – and committed to ongoing improvement, a core requirement of ROC certification.

Established in 2017 by a group of farmers, business leaders, and experts in soil health, animal welfare and social fairness—including Dr. Bronner’s, Patagonia and the Rodale Institute—the nonprofit Regenerative Organic Alliance (ROA) aims to repair a damaged planet and empower farmers and eaters to create a better future through adoption of regenerative organic farming.

“ROC was created because regenerative organic agriculture has the potential to address many of today’s pressing problems, including the climate crisis, factory farming, and fractured rural economies,” said Elizabeth Whitlow, executive director of the ROA. “If we adopt regenerative organic practices on more farms, we’ll see improvements to soil health, the well-being of animals, farmers, workers, and the climate itself. I applaud Fetzer Vineyards’ achievement of ROC Silver, which is challenging for any farm and especially so given the size and scale of Fetzer Vineyards’ farming and winery operation,” she concluded.

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Economy Watch: Improvement to Continue in 2022, Purchasing Agents Say

Posted on December 13, 2021 by Joel Whitaker

The U.S. economy will continue to improve, say the nation’s purchasing and,  supply management executives. This expansion, detailed in the December 2021 Semiannual Economic Forecast.  will continue a growth trend that began in June 2020.

Revenues are expected to increase in 15 of 18 manufacturing industries and 17 of 18 services-sector industries. Capital expenditures are expected to increase by 7.7% in the manufacturing sector (after a 12.1% increase in 2021) and increase by 10.3% in the services sector.

The manufacturing employment base is expected to grow by 1% following an increase of 3.3% in 2021. Compared to the first half (H1), growth in the second half (H2) of the year is projected to cool slightly in manufacturing and accelerate in services.

Meanwhile, Vanguard, the investment behemoth, anticipates slower growth, regardless of supply-chain dynamics.  In both the U.S. and the Euro area, Vanguard expects economic growth to normalize to 4%. In the U.K., Vanguard expects growth of about 5.5%, and in China, expectations are that growth will fall to about 5%.

Vanguard expects labor markets will continue to tighten, with several major economies quickly approaching full employment. Vanguard estimates the cyclical effects of supply constraints will persist well into early 2022 and then normalize as the structural deflationary forces of technology and unemployment take hold again. These factors contribute to expectations that inflation will trend higher for some time before slowing in the second half of 2022.

Vanguard’s long-term outlook for global asset returns for 2022 and beyond remains guarded, particularly for equities where valuations are high and low real interest rates continue to act as a strong gravitational pull on future returns. Importantly, investors should not fear a “lost decade” for U.S. stocks, but rather, a lower-return one. For fixed income, low interest rates mean that investors should expect lower returns. However, because rates have risen modestly since 2020, Vanguard’s outlook is commensurately higher.

Here are Vanguard’s 10-year annualized return projections:

  • Global equities: 5.2% – 7.2%
  • U.S. equities: 2.3% – 4.3%
  • Global bonds: 1.3% – 2.3%
  • U.S. bonds: 1.4%– 2.4%

“While the economic recovery is expected to continue through 2022, easy gains in growth from rebounding activity are behind us, and policy will replace health as the leading consideration for investors,” said Joe Davis, Vanguard’s global chief economist.

So, what does this mean for bev/al marketers?  Continued sales expansion, powered by premiumization, and volume growth, too.  There will be plenty for everyone — mainstream brands, craft brands and super-premium ultra-luxury brands.

The only downside will be when the Federal Reserve “takes away the punch bowl.”  But even that will work to benefit the bev/al industry, with top-shelf beer, wine and spirits once again playing the role of an affordable luxury.

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