Gifting 10% of Sales on Drizly

And Drizly says that’s likely to double, based on previous years’ experience, as the holiday season takes off.  Drizly sees Champagne, premium red wine, and high-end spirits as top sellers this year. In the past 12 months, Champagne and sparkling wine have accounted for 30% share of gift orders on Drizly and in December of 2020, Champagne was the top-gifted subcategory with 24% share of orders.

Whiskey accounted for 26% share of gift orders over the last 12 months, and while bourbon leads overall whiskey sales, gifters have been slightly more keen to opt for Scotch. Together, Scotch and bourbon have comprised 73% of whiskey gift orders this past year.

In recent years, many consumers have shifted from entry-level options towards higher-end, single malt Scotch whiskies, Drizly says.  It expects premium Scotches like The Macallan Double Cask 12 Years Old and Lagavulin 16-Year-Old Islay Single Malt to be frequently purchased gift items alongside classic consumer favorites like Johnnie Walker Blue Label Blended Scotch Whisky. Other whiskey styles, like Angel’s Envy Kentucky Straight Bourbon and Hibiki Japanese Harmony Whisky, have made the top 10 gifted whiskeys list for several years in a row and are poised to be popular as well.

Red wine has the highest share of sales overall on Drizly, it’s unsurprising that red wine is also a go-to item for gifters (in the past year, 14% of gift orders were for red wine). Prestigious, well-known Napa Valley Cabernet Sauvignons or Bordeaux blends like Caymus Napa Valley Cabernet Sauvignon and Stag’s Leap Artemis Cabernet Sauvignon rank among the most-gifted red wines year after year. In fact, five of the top 10 gifted red wines on Drizly hail from Napa Valley — and all 10 come from California.

Tequila has been one of the fastest-growing spirits categories on Drizly over the last few years and the spirit has accounted for 10 percent of gift order share in the past 12 months. Premium tequilas have seen particularly high share growth, especially when it comes to gifts.

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Demand for Wine Reflects Uncertainty as World Emerges from Covid: Ciatti

In its latest market report, Ciatti notes that wine production in all Northern Hemisphere countries are lighter than average.  Italy and Spain are down 9%, OIV estimates, which is pocket change compared to France’s 27% drop since 2020.  California’s production, Ciatti estimates, will be “average.”

“These short crops north of the equator have ensured this year’s global wine production will be — according to OIV — ‘extremely low’ at 247.1-253.3 million hectoliters.”  Production had been projected to be around 2652 million, itself 7% less than the 20-year average.

Add to the woes:  The shipping mess.  Transport costs have more than doubled — and that’s when vintners can book shipping at all. Blame port backlogs and a shortage of shipping containers.

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Splash Beverage Revenue Soars, But Net Loss Soars Even More

Splash Beverage Group reports net third quarter sales of $2.8 million, up from $692,974 a year earlier.  The company reported a net loss of $12.2 million, dramatically larger than its $2.1 million loss a year earlier. Splash makes and sell both alcohol and non-alcohol beverages.

Splash recently went public through a Special Acquisition Company (SPAC), which essentially is a blind pool of money that looks for a company into which to merge.

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A-B Brings Back Its Original Flagship Brand

St. Louis Lager was the flagship brand for Anheuser-Busch when it was first founded in St. Louis more than 160 years ago. This darker, lager style beer which began as a regional beer was ultimately distributed all over the world – earning gold medals at tasting competitions in Philadelphia, Paris and Amsterdam.

More than 115 years since it was last produced, the iconic beer is being brewed for a limited time at the company’s Research Pilot Brewery in St. Louis based on the original recipe from the Anheuser-Busch archives and will be available at the Anheuser-Busch St. Louis Biergarten while supplies last.

“We’ve come a long way in the last 160 years and while consumer tastes and products have changed over the years, our commitment to brewing high-quality, innovative products continues to be at the core of everything we do,” said Colleen Lucas, vp-Corporate Social Responsibility and Heritage.  “By bringing back St. Louis Lager this December, we are proud to recognize the community that has enabled us to continue to grow and connect with consumers all over the world.”

In recognition of Anheuser-Busch’s and its Foundation’s longstanding commitment and non-profit partnerships in the local St. Louis community, the beer will be unveiled this week ahead of Giving Tuesday and followed by a special thank you reception for their local non-profit partners.

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The Importance of Premium Drinkers to Wine

How has Covid changed the relationship that premium wine drinkers have with wine?

U.S. premium drinkers have broadly maintained their consumption levels since 2019, despite the restrictions and behavior changes resulting from Covid, says Wine Intelligence.. In fact, average spend per bottle in both the off- and on-premise has been largely stable since 2019.

Where changes arise however, is in the demographics of the premium wine drinker segment, which is now increasingly both female and older. As of 2021, 49% of premium wine drinkers in the U.S. are women, up from 36% of premium wine drinkers in 2019. Additionally, paralleling the ‘ageing’ of regular wine drinkers, 1/3rd of premium drinkers in the US are now aged 55 and over (up from 23% in 2019).

WI Chart US Premium drinkers by age and gender updated - Female premium wine drinkers drive growth in the US wine market

The changes become more nuanced when looking at the different attitudes and characteristics of premium wine drinkers. Wine Intelligence segments the premium wine drinking market into 3 segments: Ultra Premium, Popular Premium and Super Premium segments. Of these, the number of Ultra Premium regular wine drinkers in the US has decreased the most during Covid-19.

Ultra premiums are the youngest and highest-spending segment of US premium drinkers. They typically enjoy wine most days and have the highest wine category involvement. They are strong drivers of total wine spend, particularly in the on-premise, and enjoy actively participating in winery visits, events and publications. Ultra Premiums also spend more per bottle on wine in both the off-and on-premises compared with the other segments, by a wide margin. While wine is the primary drink of choice for Ultra Premiums, they are also core Whiskey drinkers.

During the peak of Covid in 2020, the more involved wine drinkers – the Ultra Premium and Super Premium cohorts – tended to increase their frequency of wine purchase and consumption. These drinkers purchased wine to elevate at-home dinners (and replace their previous on-premise drinking), and moved more to supporting their local or favourite wineries.

By contrast, primarily socially-driven drinkers – Popular Premiums and some Super Premiums – found themselves drinking less wine during Covid, with fewer social occasions at which to enjoy wine, they dominant wine occasion.

Popular Premiums make up almost half of the premium wine drinking population. The oldest of the premium wine drinker segments, Popular Premiums typically enjoy wine 1-3 times a week and usually spend $15-20 in the off-premise. Experience with wine has built up over time, resulting in a more settled and less adventurous wine repertoire.

While there are clear differences in quality, price and imagery perceptions of wine from different origins among premium US drinkers, there are some similarities in wine attitude – such as the relationship between the premium drinker and sustainable or organic wine.

Although premium wine drinkers are aware of sustainable and organic wines, these are not key factors that currently drive purchase. Instead, they’re seen as more ‘nice to have’ additions to wine rather than a key driver of purchase. This is in line with a wider trend seen amongst regular wine drinkers in other markets as well – with drinkers believing that standard wine practices are already ‘sustainable and natural’.

Most premium wine drinkers are now returning to their pre-Covid consumption patterns as they return to on-premise drinking. However, these drinkers are now reporting that they are more mindful of their health in relation to alcohol consumption levels overall.

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Beckstoffer Donates $1 Million to Lohr Center at Cal Poly

Andy Beckstoffer of Beckstoffer Vineyards said he and his wife, Betty, have donated $1 million to the Cal Poly Justin & J. Lohr Center for Wine & Viticulture to fund the Beckstoffer Vineyards Fermentation Hall. The Center, completed in September 2021, will open to students in the winter quarter. This is the largest completely donor-funded capital project in CSU history.

Beckstoffer Vineyards employs four graduates of Cal Poly who are key members of the management and viticulture teams: Dave Michul, president/CEO (1984), Brandon Axell, General Manager, Mendocino (1998), Blake Wood, Vineyard Manager, Napa Valley (2006) and Leonel Soto Mora, Viticulturist, Red Hills (2018).

“Cal Poly is a wonderful university, and their viticulture program is excellent, said Andy Beckstoffer commented. “This new facility will further enhance that program. Cal Poly has produced some of the most talented viticulturalists and vineyard managers in the world, and we are especially proud that they allowed us to be to be a part of this program. We made this gift to honor the program, the four Cal Poly graduates that form the major part of our viticulture team and all of the Cal Poly graduates who contribute so much to the premium wine business.”

The Beckstoffer Vineyards Fermentation Hall in the Winery is the largest space inside the Justin & J. Lohr Center for Wine & Viticulture, and it provides a place for students to gain hands-on winemaking experience using state-of-the-art equipment and industry practices. Here they will produce Cal Poly’s commercial wines as well as their own experimental varieties and blends. Every wine and viticulture student will gain invaluable learn-by-doing experiences in the Hall, preparing them for a successful career in this ever-changing industry.

Cal Poly has the largest undergraduate wine and viticulture program of its kind in the nation with nearly 300 students enrolled. It is the only program to emphasize the three major elements of the wine industry: viticulture, enology, and wine business.

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