Ray Herrmann, Breakthru Beverage Chairman Emeritus, Dies at 100

A century after he was born, and less than a month before he would have turned 101, Ray Herrmann, chairman emeritus of Breakthru Beverage, has died at home in New York City.  His wife, Marianna, was at his side.

He initially worked for two wholesalers  in Louisville, Ky., before moving to National Distillers Products Co., where his 18-year career ended as general manager of wine and spirits operations.  SY Schieffelin & Co., he served as EVP, general manager and director, overseeing sales and marketing for Hennessy, Moët & Chandon, Ruffino and Teacher’s.

Herrmann joined McKesson Corp. to become president of its wine and spirits group.  In 1988 he acquired McKesson’s wine and spirits business, which he turned into Sunbelt Beverage Corp., which merged with Charmer Industries to become Charmer Sunbelt.  In 2015, Charmer Sunbelt merged with Wirtz Beverage  to become Breakthru Beverage, the No. 3 wine and spirits wholesaler in the U.S.

Herrmann is survived by his wife, Mariana; his daughter, Laura Nicholson; his grandson, Christian Kai-Nielsen and his dog Pancho II. He was predeceased in death by his sons, Mark and Michael Herrmann.

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What Wine Drinkers Know About Wine is Declining

Research from Wine Intelligence shows that the breadth of wine knowledge among wine drinkers is gradually decreasing, as consumer knowledge of varietals, wine-producing origins and wine brands reduces. At the same time, consumer confidence in wine – which was historically correlated to knowledge – is stable and in fact, increasing marginally in some key markets.

This trend can be seen in markets such as the US, Brazil, Germany and Australia, where wine knowledge has decreased between 2019 and 2021. In the U.S., wine knowledge has taken the biggest downturn since 2017 as wine engaged ‘Generation Treaters’ drive category growth, but without the need to retain technical wine knowledge.

A significant contributing factor, Wine Inelligence says, is ‘cognitive offloading’, which refers to consumers’ growing reliance on instant, online resources for information, rather than committing information to long-term memory. As such, while wine knowledge is being accessed, it is not necessarily being retained, leading to an overall reduction in retained consumer wine knowledge. The wealth of online sources of wine information, easily and rapidly accessible via a smart phone, are enabling buyers to purchase with confidence, without the need to retain hard facts.

“The wine industry has undoubtedly helped consumers to feel more confident both navigating and enjoying wine, without the need to bring with them and encyclopedic knowledge,” explains Lulie Halstead, CEO, Wine Intelligence. “Wine consumers are being helped by the fact that many of today’s wine labels are both visually appealing and highly successful at explicitly communicating the flavors and tastes inherent to a particular brand,” she adds.

This response from the industry is making wine more inclusive as opposed to exclusive, as consumers no longer need to commit multiple facts to memory in order to participate. While confidence was historically linked to an individual’s breadth of knowledge, market changes are enabling wine to become more accessible and therefore ‘democratic’.

The dual trends of reducing wine knowledge and increasing wine confidence are therefore not as at odds with each other as they may first seem. “Confidence has become uncoupled with knowledge in recent years, creating a more inclusive wine category – a key necessity if it is to retain market share against challenges from craft beer and RTDs,” remarks Halstead. This is also supporting opportunities in channels such as convenience and online.

Going forward, how can brands adapt to the changing dynamics of the category to become more inclusive?

Clarity when it comes to communicating a wine’s flavor is important. There are successful shortcuts to achieve this, such as through label design, bottle shape, and broader brand communication. “Helping consumers understand flavor instinctively through visual branding cues is a good starting point,” says Halstead.

Since an increasing number of consumers want to quickly access information on the go, it will pay to have a good website that is easy to navigate and well optimized. While websites often dive deep into winemaking stories and the details of production, simple messaging and layered information will prove critical.

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Jack Daniel’s Sponsors Climate Pledge Arena, Seattle Kraken

Climate Pledge Arena and the Seattle Kraken named Jack Daniel’s Tennessee Whiskey as the Official Whiskey of Climate Pledge Arena. The agreement also includes a new Jack Daniel’s Old No. 7 Bar on the main concourse of Climate Pledge Arena.

“Seattle is one of our most important markets and Jack Daniel’s is extremely excited to enter into this new partnership with the Kraken and Climate Pledge Arena,” said Risa Scandora, Jack Daniel’s Marketing Manager. “Our commitment to making great whiskey is only matched by our commitment to preserving the planet we call home. We send 99% of the materials used at the Jack Daniel Distillery to be reused or recycled which is just another great reason why we look forward to a long-term relationship with Climate Pledge Arena.”

Climate Pledge Arena will open in October as the home of the Seattle Kraken, Seattle Storm and over 100 nights of live entertainment and music a year. The Seattle Kraken begin their inaugural season at Climate Pledge Arena on October 23, 2021.

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Batiste Rhum’s Process Footprint Validated as Climate-Positive, 1st in Bev/Alcohol Industry

Batiste Rhum, which calls itself “the First Sustainable American Craft Rum,” said its proprietary rum production process, from ground to finished bottle, has been rigorously reviewed and validated as being carbon-negative by Third Partners, a boutique management consultancy working for positive change.

With this third-party validation, Batiste Rhum becomes the only known beverage alcohol in the world to have a climate-positive, natural-production process without the purchase of carbon offsets.

Third Partners’ report analyzed Batiste Rhum’s production process, what it calls the ‘Three R’s’ process of Regenerative Agriculture, Renewable Energy, and Responsible Choices. Batiste Rhum’s exclusive use of fresh sugarcane along with specific agricultural techniques captures significant carbon dioxide from the atmosphere, setting the entire process up for a net climate-positive position.

Reliance on renewables at major energy consumption points, including solar for electricity and biomass for steam power, minimize carbon output ahead of further sustainability-minded shipping and packaging choices. Third Partners found that the cumulative effect of Batiste Rhum’s ‘Three R’s’ process results in a net reduction in carbon dioxide equivalent emissions per bottle.

John Haugen, Principal and Client Director at Third Partners shares, “The beauty of Batiste Rhum’s process is its simplicity: use clean energy, reuse waste and byproducts, and help nature do what nature does best. This closed-loop approach to production results in a process that is climate positive and better than carbon neutral.”

Batiste Rhum COO Jon Lawson agrees, “From the beginning, we sought to demonstrate a method for minimizing industrial footprints that does not rely on purchased offsets like planting trees or carbon credits. Batiste Rhum’s integrated process is the best-practice in sustainability, and Third Partners’ validation proves that great taste with true sustainability is not a goal for tomorrow but a reality today.”

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Kendall Jenner’s 818 Tequila Now in 9 States

After launching in February, the brand has quickly expanded its offerings into Arizona, Georgia, Florida, Illinois, New York, New Jersey, Nevada, and Texas following its regional launch in California.

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Coors Light, Miller Light Turn Promo Plans to Football

For the last four weeks ending Aug. 8, Coors Light and Miller Lite have cumulatively picked up a 0.2 volume share of the premium lights segment, according to IRI multi-outlet and convenience store data. That’s mostly from chief competitor Bud Light, which has shed 1.1 segment share in that same period, Molson Coors noted.

Coors Light is continuing its relationship with renowned football commentator Kirk Herbstreit, but is also taking aim at the important 21-34 demographic with a new relationship with Barstool Sports’ popular podcast, “Pardon My Take.” This week, Coors Light kicked off its football programming by sponsoring the podcast’s “Grit Week” road trip, and its two hosts tweeted images of custom cans to their more than 2 million followers.

“‘Pardon My Take’ is really helping us recruit younger legal-age drinkers into Coors Light,” says Chris Steele, director of activation for Coors Light.

Coors Light is also unveiling new promotional materials for its 34 college football partnerships, which will be seen in retail and out-of-home advertising, further amplifying the Made to Chill campaign.

“We’re incredibly excited for college football this year,” Steele says. “We have solid programming for our core consumer and are finding a new way to connect with younger legal-age drinkers, too.”

For its part, Miller Lite is looking to pro football to help continue the momentum from a strong summer, says Anne Pando, director of activation for Miller Lite. In addition to partnerships with 17 pro teams, Miller Lite is doubling its ad spend in the fantasy football and sports betting arenas, inking deals with ESPN and Draft Kings (Molson Coors also has a new partnership with the Pro Football Hall of Fame).

“With ESPN and Draft Kings, we’re tapping into the behaviors that consumers have during football season and making sure Miller Lite is part of those Miller Time moments with fans, when you are with your friends, sharing raw intimate moments, watching the game you love,” says Pando.

While the brand plans a series of eye-catching promotions during the season and into winter, football is just one field where Miller Lite is playing.

Last week it revealed a major partnership with global superstar musician J Balvin, “the biggest and boldest Latino plan we’ve ever had,” says Pando, noting the brand has doubled its Latino media spend.

“We have a lot of pieces in place to make sure Miller Lite builds on the success of this summer,” she says.

Meanwhile, the brand continues to take aim at Michelob Ultra. It fired its first salvo shortly before pro football’s championship game, when it featured Michelob Ultra in an ad, noting that Miller Lite has just one more calorie than the beer that’s marketed toward the active set.

With more tentpole promotions planned for winter – Coors Light’s Beerman is set to return, while Miller Lite will re-up its cheeky “Beer Me” campaign and will finish the year with its holiday program, called “Give the Gift of Miller Time” – both brands are looking to do more than just gain share.

“With these two big brands, we have a great opportunity to dominate the premium light space,” Pando says.

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