What We’re Reading —

Posted on October 13, 2021 by Joel Whitaker

Paper bottles all-set to take the wine world by storm   (Vitisphere)

What James Bond could teach the wine industry (Meininger’s Wine Business International)

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Johnnie Walker Blue Label Ghost and Rare Pittyvaich Available in U.S.

Posted on October 13, 2021 by Joel Whitaker

The new product, which we wrote about yesterday, is available in the U.S.  Based upon the product announcement, we said yesterday that it isn’t available here.  The brand’s public relations firm in London has now clarified that it is available here as well as the UK.

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High Court Rejects Retailer’s Direct Shipping Appeal

Posted on October 12, 2021 by Joel Whitaker

No one should be surprised that the U.S. Supreme Court denied Sarastoa Wine Market’s attempt to ship wine into Missouri .  The state’s statutes ban direct-shipping of bev/al from out-of-state retailers and the court had previously held that the 21st Amendment giving states control over the sale of alcohol within their borders was “unquestionably valid.”

The matter was so clear to the justices that they didn’t even bother to explain why they were rejecting Sarasota Wine Market’s petition.  But they had asked the Missouri attorney general to respond to Sarasota Wine Market’s appeal, and he responded that the ban on out-of-state retailer shipments was imposed “as part of Missouri’s tiered distribution system for regulating alcohol shipment and sale within the state– a system this court has recognized as ‘unquestionably legitimate.”

There is a difference, conceptually, between out-of-state retailers shipping into a state and out-of-state producers shipping into a state.  At least theoretically, if a customer wants to buy wine produced by a particular winery, the retailer can obtain it from a wholesaler, by special order if need be.  But a small winery cannot force a distributor to carry its products, so the only way it may be able to obtain distribution in a state is to ship direct.  Even there, the winery will have to comply with each state’s registration and taxation rules.

It’s possible some other case might find the key to getting the U.S. Supreme Court to consider it, but we wouldn’t count on it.

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Non-Alcohol Sales Surge 33.2% in Year, Online Non-Al and Low-Al Sales are More Than 10 Times Beer, Wine, Spirits e-Sales

Posted on October 12, 2021 by Joel Whitaker

We’ve been reporting on the growth of nonalcohol sales for about two years, but Nielsen put some number of it that should get everyone’s attention:

  • Low-alcoholic and non-alcoholic beverages sold $3.1 billion off premise in the latest 52 weeks (+10.4%)
    • Non-alcoholic sales: $331 million (+33.2%)
    • Low-alcoholic sales: $2.77 billion (+8.1%)
  • There was a 315% increase in online non-alcoholic + low-alcoholic beverage dollar sales in the latest 12 months vs. a 26% increase in alcoholic beer, wine and spirits e-commerce sales
  • Non-alcoholic $ % change vs. year-ago
    • Beer/FMB/Cider: 31.7%
    • Wine: 39.4%
  • Spirits: 113.4%Low-alcoholic $ % change vs. year-ago
    • Beer/FMB/Cider: 4.5%
    • Wine: 18%
    • Spirits: 8.5%
  • 78% of non-alcoholic beverage buyers are purchasing alcoholic beer, wine or spirits

“There are many health and wellness trends emerging across center store that are causing alcohol consumers to take a second look at their beverages. While non-alcoholic beer has been available to consumers for many years, there are now more no/low alcoholic wines, spirits and beer options available than ever before. These new innovations better meet health and wellness desires of certain consumers such as lower ABV, lower sugar, lower calorie or sustainable sourcing practices,” said Kim Cox, NielsenIQ SVP of Account Development.

“The market for no/low alcoholic beverages is still relatively small at less than 5% household penetration, but is an interesting area to watch, as it now represents $3.1B in sales and a 3.5% total alcohol market share.”

 

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Duckhorn Shareholders to Sell 12 Million Shares

Posted on October 12, 2021 by Joel Whitaker

Duckhorn Portfolio, Inc. announced the commencement of an underwritten public offering of 12 million shares of its common stock by certain of its stockholders. The Selling Stockholders also intend to grant the underwriters a 30-day option to purchase up to an additional 1.8 million common shares. Duckhorn will not receive any proceeds from the sale of the shares by the Selling Stockholders.

J.P. Morgan, Credit Suisse and Jefferies are acting as joint lead book-running managers for the offering. The proposed offering will be made only by means of a prospectus.

A registration statement on Form S-1 relating to the proposed offering has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

In New York Stock Exchange trading, Duckhorn closed at $22.40, up 33 cents.  Announcement of the secondary offering was made after trading closed at 4 p.m.

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Molson Coors in Pact with Coca-Cola Canada to Produce Topo Chico Hard Seltzer

Posted on October 12, 2021 by Joel Whitaker

Molson Coors will produce and distribute Topo Chico Hard Seltzer in Canda.  It described the agreement as “another significant step in its plan to aggressively grow the company’s above premium portfolio and become a leader in the fast-growing hard seltzer segment. The product is scheduled to launch in the summer of 2022 throughout most of the country, with the Canadian debut taking place one year after the wildly successful launch of Topo Chico Hard Seltzer in the United States.”

Despite being launched in 16 different markets in the United States, Topo Chico Hard Seltzer occupies the No. 3 slot as a new item in the general malt beverages category. The brand also garnered a 2.4% share of the U.S. market according to IRI’s multi-outlet and convenience store data. This success has led to the national expansion of the brand across the United States, which will take place in January of 2022.

Topo Chico Hard Seltzer blends sparkling water and natural flavors, and is inspired by Topo Chico sparkling mineral water, a 125-year-old brand with a rich heritage that has been popular with consumers across the globe. The hard seltzer will be developed in four flavors including: Tangy Lemon Lime, Exotic Pineapple, Strawberry Guava and Tropical Mango, which will be available in a 12-pack slim can variety pack, as well as single serve cans in select flavors.

Topo Chico Hard Seltzer represents the third hard seltzer brand in the Molson Coors portfolio currently available in Canada. The Topo Chico brand is owned by Coca-Cola. Both Vizzy Hard Seltzer and Coors Seltzer launched in March 2021, and early returns have exceeded expectations with both seltzers within the leading seltzer brands based on market share. Both brands have realized extensive national distribution with increasing velocity within all provinces.

Molson Coors closed in New York State Exchange trading at $45.77, down 8 cents a share.

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