Kove Launches Limited-Release Dragon Fruit Margarita

Kove Brewing, San Diego, Calif., launched a limited collaboration flavor, Dragon Fruit Margarita, which was created in partnership with Pitaya Foods.  Kové’s Dragon Fruit Margarita offers a “better-for-you” buzz as a beverage that is vegan, gluten-free and made with organic ingredients.

The new flavor will be available for purchase in four packs of 12-ounce cans and on tap at both Kové tasting rooms in San Diego including a new 1,600-square-foot tasting room in Miramar.

Kové is available for purchase at select bars, restaurants and liquor stores across California, Arizona, Nevada, Colorado and Oregon with an SRP of $9.99.

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Who & What —

Beam Suntory promotes Carlo Coppola to managing director of James B. Beam Distilling Co., effective July 1.  He has been chief commercial officer.  Coppola will oversee long-term plans for the Beam family of brands, including Jim Beam, Knob Creek, Basil Hayden and Booker’s bourbons, managing the end-to-end P&L, as well as marketing, pricing, liquid allocation, while partnering with markets to effectively position the family of brands to consumers globally.

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Memorial Day On-Premise Sales, Traffic Surge

All key states experienced double-digit positive velocity on Memorial Day, May 30, compared with the previous Monday.  Total U.S. sales were up 30%, driven by a 26% increase in traffic, according to CGA’s BeverageTrak data.  California experienced an especially strong day, with average outlet velocity up +45%.

“The channel can expect another welcome boost of sales with Father’s Day around the corner,” said Matthew Crompton, CGA Regional Director, North America. In 2021, Father’s Day was second only to Mother’s Day, with trends of +60% vs the average Sunday of the year to date.  Father’s Day “is a key On Premise date for Spirits, as it’s the third biggest Sunday of the year. It’s the biggest for beer sales, with craft beers leading the way. On Premise event analysis plays an important role in channel strategies and understanding sales dynamics and beverage trends enables suppliers and Operators to plan accordingly for maximum return on such occasions,” Crompton said.

Trends are variable by state, CGA notes, observing that Illinois (+20%), New York (+16%) and California (+12%) were ahead of 2021 for the week ended May 28, while Florida (-11%) and Texas (-3%) remained slightly behind.

 

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Number of Texas Distilleries Grew 2275% in 10 Years

In 2020, Texaas distillleries output totaled $1.28 billion, according to a new study from researchers at the University of Texas San Antonio’s Institute for Economic Development.  Sales by Texas distilleries reached nearly $2 billion and supported 4,900 jobs which paid as much as $334.9 million in salaries and benefits to workers and contributed nearly $948.2 million of gross state product.

Those Texas distilleries represented $8.6 million in spirits gallonage taxes paid to the state in FY 2020.  Covid-19 had a dramatic impact on the hospitality industry, slashing sales and on-premise mixed beverage gross receipts by 34%.

The Institute estimated the total output of Texas distilleries at $1.28 billion, which makes distilling far more important to the Texas economy that followed by wholesale trade of nondurables ($108.9 million), wholesale trade of machinery ($44.4 million), other real estate ($28.9 million), and glass container manufacturing ($28.3 million). Next is truck transportation ($28.2 million), followed by owneroccupied dwellings impact ($22.4 million), this industry represents how much homeowners spent on maintenance and repair of their homes. Also impacted were wineries ($23.9 million), marketing related services ($21.3 million), and insurance agencies and brokers ($19.6 million), insurance carriers ($14.6 million), among others.

In 2020, nearly 10% of the distillers’ output was distributed in Texas.  The rest was exported out of state, resulting in a strong inflow of cash to Texas from other states.

“This study makes clear that continued growth of the Texas distilling industry presents great opportunities for the state, and that the collective economic contributions of these small businesses could be even greater if antiquated laws restricting spirits sales were updated,” said Kristi Brown, senior director of state government relations at the Distilled Spirits Council of the United States.

“Texas distillers still aren’t allowed to sell spirits bottles to consumers on Sundays, despite being allowed to open their doors, offer tours and provide tastings. This simply doesn’t make sense. The decline in on-premise sales greatly impacted distillers, and it’s time to modernize Texas alcohol laws to help support this growing industry and spirits consumers throughout the state.”

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Researchers Identify the Real Compounds Linked to Smoke Taint in Wine, Grapes

An Oregon State University-led research team has discovered a class of compounds that contribute to smoke taint in wine and grapes.

“This is a critically important for winemakers who are increasingly dealing with the impact of wildfire smoke on their grapes,” said Elizabeth Tomasino, an associate professor of enology at Oregon State. “It provides them markers that are much more predictive of smoke taint in wine than we previously had.”

The findings are not yet published, but Tomasino is discussing them during a presentation this week at the American Society for Enology & Viticulture national conference in San Diego. Scientists at Washington State University who also worked on the research are joining her.

For years, a class of compounds known as volatile phenols have been used as markers for smoke taint in wine and grapes. However, they weren’t considered good predictors of smoke taint issues, Tomasino said. For example, wines with high levels of these compounds often didn’t taste smoke tainted and wines with low levels did taste smoke tainted.

This led Tomasino and her team to search for other compounds that were causing smoke taint in wine.

Earlier this year, Tomasino and Jenna Fryer, a doctoral student in Tomasino’s lab, published a paper that outlined a new standard for tasting the smoky/ashy component of smoke taint. As part of that work, they discovered the new class of sulfur-containing compounds, thiophenols, that in subsequent analysis was found to cause smoke taint when in combination with volatile phenols.

Tom Collins, an assistant professor at Washington State’s Wine Science Center, confirmed that these sulfur compounds were found in wines that had been exposed to smoke and not in samples that had no smoke exposure.

Work done by Cole Cerrato, a postdoctoral scholar working with Tomasino, confirmed the structure of the compounds using Nuclear Magnetic Resonance, an instrument that allows the molecular structure of a material to be analyzed by observing and measuring the interaction of nuclear spins when placed in a powerful magnetic field.

Ongoing sensory analysis in Tomasino’s lab has shown that wines are described as smoke tainted when these sulfur compounds are in combination with the volatile phenols.

“This changes the game as these new compounds are a completely different class of compounds than we were previously studying,” Tomasino said. “Much of the smoke taint mitigation work to date has not been overly successful and now we know because we have been looking at the wrong thing. We should be much more successful over the next year or two in providing mitigation strategies for the industry that are actually effective.”

Wildfires are a significant threat to these industries because persistent exposure to smoke compromises the quality and value of wine grapes and adversely affects wines. That threat is particularly pronounced on the West Coast of the United States, where California, Oregon and Washington are three of the nation’s top four wine-producing states.

The research will continue due to a $7.65 million grant Oregon State researchers and a team of West Coast university collaborators received last year to study the impact of smoke exposure on grapes. Oregon State researchers are working with scientists at Washington State and the University of California, Davis, on the four-year project, which is funded by the U.S. Department of Agriculture’s National Institute of Food and Agriculture.

The work aims to provide tools for the grape and wine industries to quickly make decisions about whether to harvest grapes or make wine following a smoke event.

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Rising Energy Costs Push Wine Bottle Price Up 35%

That 35% increase to Bloomington, Ind., Butler Winery. Butler Winery founder Jim Butler said he’s considering a 7% increase on its next batch of wine.  Whether that price goes up 7% or more hinges on future price increases.  Nearly every part of the process has been impacted by inflation and supply chain issues. 

Meanwhile, customers will see a change in the bottles wine comes in.  “North American bottle production has been overstretched. So we’re not making Blue bottles. We’re not making brown bottles. We’re basically making just a couple of basic bottles,” Butler told WTIU.  Butler said the winery is also struggling to get certain bottle shapes.

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