TTB Establishes Virginia Peninsula AVA, Modifies 2 Others

Posted on August 29, 2021 by Joel Whitaker

Williamsburg Winery petitioned Alcohol & Tobacco Tax & Trade Bureau to establish the 673,059-acre Virginia Peninsula viticultural area in southeastern Virginia.  It includes the counties of James City, York, New Kent, and Charles City, as well as the independent cities of Poquoson, Hampton, Newport News, and Williamsburg. At the time the petition was submitted, the proposed AVA had five  commercial vineyards, covering about 112 acres. An additional 61 acres of vineyards are planned for planting in the near future. In addition, there are five wineries in the AVA.

In another action, TTB removed about 376 acres from the Santa Lucia Highlands viticultural area, and transferred 148 acres were removed from the Arroyo Seco viticultural area and added to the Santa Lucia Highlands viticultural area.

 

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TTB Proposes Designating Singani as Distinctive Product of Bolivia

Posted on August 29, 2021 by Joel Whitaker

Alcohol & Tobacco Tax & Trade Bureau proposed to amend the standards of identity for distilled spirits to designated Singani as a type of brandy that is a distinctive product of Bolivia.  This proposal follows a joint petition submitted by the Plurinational State of Bolivia and Singani 63, Inc., a distilled spirits importer, and subsequent discussions with the Office of the United States Trade Representative.  Among the amendments to regulations, TTB invited comments on authorizing a minimum ABV of 35% for Singani.   Comments on the proposal are due on or before Oct. 25.

Singani is an alcohol beverage product that is distilled from grape wine or grape pomace, produced in certain parts of Bolivia generally classified as a brandy. Boliva permits Singani to have an ABV of 35%, but under TTB’s rules, all brandy must be at least 40% ABV.

In proposing the change, TTB is acting on a petition by  Singani 63, which argued that TTB’s recognition of Singani as a distinctive product would benefit consumers by informing them that the product was produced and labeled in compliance with Bolivia’s laws. It also asserted that Singani is a product that is distinct from other types of brandy.

Once TTB classifies Singani as a type of brandy that is a distinctive product of Bolivia, Bolivia will then recognize Bourbon Whiskey and Tennessee Whiskey as distinctive products of the United States.

Following such recognition, Bolivia shall prohibit the sale within Bolivia of any product as Bourbon, Bourbon Whiskey, or Tennessee Whiskey, if it has not been manufactured in the United States in accordance with U.S.  laws and regulations the manufacture of Bourbon Whiskey and Tennessee Whiskey. These protections will also apply to products spelled as “Bourbon Whisky” or “Tennessee Whisky,” TTB said.

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Top drinks brands dominate the On Premise as U.S. Consumers Opt for Familiar Choices After Covid-19

Posted on August 26, 2021 by Joel Whitaker

That’s according to CGA’s latest on-premise measurement (OPM) data which finds the top 10 beer, American whiskey, and rum brands have significantly increased their category share as many on-premise operators reduced their drink range.

At a mega category level, beer is dominated by core brands, with the top ten brands in beer making up 58% of sales in the On Premise – an increase of 3% post-COVID-19. Within this category, the highly competitive craft beer segment is still holding strong, however the top ten brands have maintained their share of 32% following the pandemic.

Within the spirits category, the top ten brands hold a significant share across tequila, which maintains a 72% share, and vodka which has dropped 4% to 75% post-COVID-19. Whiskey brands tell a similar story, with a share of 74% for the top brands, however within American whiskey the top ten brands occupy 83% of this segment – with three brands holding 46% alone.

However, rum is the category most dominated by big brands, with the top ten occupying a share of 97% – an increase of 5% post-COVID-19. This demonstrates that consumers are consistently favoring the brands they are already familiar with as they return to the On Premise.

Wine has always been a competitive category, with the availability of high-quality vineyards globally and across the US offering consumers a range of options. This is still the case post-COVID-19, with the top ten brands increasing their share to just 25% (+1%) in table wine, the category’s largest segment. However, the sparkling wine segment bucks the trend, with the top brands occupying a share of 66%, highlighting the presence of more dominant brands that consumers and retailers alike choose consistently.

Matthew Crompton, CGA Client Solutions Director, Americas, said: “Across many categories, consumers are choosing the brands they know and love, which is consistent with our consumer data. For suppliers with mainstream brands in their assortment, this is positive news as it bodes well for sales. Suppliers who are looking to launch NPDs in the coming months would do well to invest in the right marketing strategy – ensuring there is less ‘me too’ is crucial for success.”

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Drizly: RTD Cocktails Soar 60% from Year Earlier

Posted on August 26, 2021 by Joel Whitaker

High Noon and other brands are innovating like crazy to keep RTDs in fridges this fall. Cutwater, Onda, Kahlua, Crafthouse, and Volley have proven popular and are among the fastest growing RTD brands in 2021, Drizly said, adding that the growth of the hard seltzer category is stalling.

A recent Drizly survey found health emerging as a top influence on alcohol buying, pointing to why hard kombucha (bubbly, fermented, typically ranging from 5% to 11% ABV) is gaining in popularity. Though still young and tiny sales-wise compared to beer and other fizzy stuff, Drizly buyers are snapping up hard kombucha at higher and higher rates, making it one of the app’s fastest growers. JuneShine, Boochcraft and Flying Embers are the brands dominating the hard kombucha category on Drizly.

Scotland’s iconic single malt whiskies are now the fastest growing whiskey on Drizly, which says this is consistent with the bigger premiumization trend.

As for wines, Drizly shoppers are eschewing bottles under $20 in favor of those between $20-$100 more than at any time before.

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Beer Institute Estimates Shipments Fell 6.4% in July

Posted on August 26, 2021 by Joel Whitaker

The latest dometic tax paid estimate from Beer Institute, which measures shipments, fell 6.4% to 14.4 million barrels from 15.4 million a year earlier.   Year to date, shipments are up 2.3% to 97.4 million barrels, BI said.

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Michelob Ultra Commits $100 Million to Support Gender Equality in Sports

Posted on August 26, 2021 by Joel Whitaker

Michelob Ultra is committing $100 million over the next five years to increase visibility of women’s sports through:

  • Dedicating 50% of its lifestyle media inventory to content that features and promotes female athletes and women’s sports by 2025
  • Representing female and male athletes equally in all advertising creative moving forward.
  • Ensuring equal representation of female and male athletes on Team Ultra talent and influencer roster

The new commitment is important step in insuring women’s sports eceive the same level of coverage in the media, which is a critical factor in ensuring that female athletes are paid equally.  It builds upon the brand’s efforts over the past 18 months to elevate women athletes, including becoming the official beer sponsor of the WNBA and increasing female representation on the Team Ultra talent and influencer roster by signing athletes like Serena Williams and Alex Morgan.

To encourage people across the U.S. to join in helping increase the visibility of female athletes, Michelob Ultra is asking fans to “Save It, See It.” Starting on Women’s Equality Day, August 26, Michelob Ultra is advocating for greater equality and enjoyment in sports by encouraging people to hit “save” on women’s sports highlights on social media. Tapping the save ribbon on content featuring female athletes is a first step in creating more visibility in women’s sports. The more people hit save, the more they’ll see women’s sports.

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