Control States’ Sales Eased in March

Posted on May 18, 2022 by Joel Whitaker

Control States spirits case sales eased0.6% in March from the year-earlier level. Montgomery County Maryland (15.7%), Utah (30.3%), Vermont (3.0%), and Wyoming (3.7%) reported monthly growth rates for March exceeding their twelve-month trends, National Alcoholic Beverage Control Association says.

The growth rates for Alabama (3.3%), Iowa (-0.5%), Idaho (-3.1%), Maine (-1.9%), Michigan (-2.3%), Mississippi (-7.5%), Montana (2.9%), New Hampshire (-11.8%), North Carolina (0.4%), Ohio (-2.9%), Oregon (-2.2%), Pennsylvania (0.6%), Virginia (-1.23%), and West Virginia (-1.5%) fell short of their 12-month trends. Control state rolling-twelve-month-volume growth, 3.5%, is down from February’s reported 3.8%.  Spirits’ volumes growth is down -0.2% year-to-date compared to 4.2% a year ago.

Control state spirits shelf dollars are up 1.7% during March while trending at 7.8% during the past twelve months. Utah (29.8%) reported a monthly growth rate for March exceeding its twelve-month trend. Alabama (3.6%), Iowa (0.5%), Idaho (0.7%), Maine (2.3%), Montgomery County Maryland (15.2%), Michigan (0.3%), Mississippi (-0.4%), Montana (3.4%), New Hampshire (-15.0%), North Carolina (6.1%), Ohio (-0.5%), Oregon (3.0%), Pennsylvania (-0.1%), Virginia (0.3%), Vermont (7.4%), West Virginia (-0.3%), and Wyoming (4.7%) grew shelf dollars at rates below their twelve-month trends. Shelf dollars in the control states are up 2.9% year-to-date compared to being up 12.0% last March.

Price/Mix for March was 2.3%, slipping from February’s reported 3.9%.

Price/Mix is calculated using dollar growth and nine-liter case growth of current month over same period last year results. For the first time in 24 months, March’s Price/Mix has been at, or below, its pre-COVID average of 2.3%. Since April 2020, Price/Mix calculations have yielded values significantly higher than the pre-COVID average, including an all-time high of 10.6% during April 2021. The data suggest the historic Price/Mix values experienced during the period April 2020 through February 2022 were driven by premiumization and pricing actions.

Cocktails, with 4% share of the nine-liter case control states spirits market, was March’s fastest growing category with 30.4% reported and a twelve-month trend of 35.9%. Tequila, with 9% share, grew at 14.1% during March and 21.2% during the past twelve months. Vodka, with 32% share, grew during the same periods at -1.2% and 1.1%, respectively. Brandy/Cognac (-24.1% during March, -11.5% twelve-month trend), Canadian Whiskey (-3.6%, -1.2%), Cocktails (30.4%, 35.9%), Cordials (0.3%, 9.2%), Domestic Whiskey (1.1%, 3.1%), Gin(-3.8%, -0.2%), Irish Whiskey(0.7%, 12.8%), Rum(-2.5%, 0.5%), Scotch(-7.9%, 0.6%), Tequila(14.1%, 21.2%), and Vodka(-1.2%, 1.1%) all grew at rates below their twelve-month trends.

March’s nine-liter wine case sales growth rate was down 3.7%. Pennsylvania (reporting -7.6% nine-liter-case growth for wines), New Hampshire (-7.3%), Mississippi (-2.3%), Utah (22.7%), Montgomery County Maryland (2.0%), and Wyoming (-2.8%) are the control states that are the sole wholesalers of wines and spirits within their geographical boundaries. Rolling-twelve-month wine volume growth in these six control states is –3.7%, improving upon February’s reported -4.6%.

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Esporão Group Adds Rosé to Monte Velho Line

Posted on May 18, 2022 by Joel Whitaker

Portugal’s Esporão Group introduces the 2021 vintage Monte Velho Rosé this month. Monte Velho Rosé joins the existing Monte Velho Red and White. All three are available nationally and line-priced at $12 SRP. (High-res bottle shot attached.)

Monte Velho Red, White and the new Rosé are made at the Herdade do Esporão estate by Sandra Alves, lead winemaker at Esporão Group’s flagship property in Portugal’s Alentejo region. Each is a blend of native grapes from Herdade do Esporão, rounded out by fruit from neighboring growers. Monte Velho Rosé is a combination of red (Touriga Nacional, Aragonez, Syrah, Trincadeira, Tinta Caiada) and white (Arinto) grapes.

“With Monte Velho Red and White sales exceeding 36,000 cases per year, and growing 12% annually, this line extension is a natural move. Esporão also took time to fine tune the new Rosé to ensure the quality measures up to the standards buyers have come to expect from this producer,” said Frank Paredes, president of New Jersey-based NOW Wines, Esporão’ Group’s U.S. importer.

The Monte Velho line outperformed the $8-$12 imported wine category in general, which otherwise experienced a decline of 8.6% in 2021 versus 2020, according to SipSource data. Monte Velho Red is one of the top three best-selling Portuguese reds in that price range. The brand benefited from an increase in key retailers seeking Portuguese wine. Markets including Texas, Florida, California, Michigan, and Ohio experienced double-digit growth. Currently 30% of Monte Velho sales are on premise, 70% off premise. With more restaurants set to reopen in 2022, further growth is likely.

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Elijah Craig Partners with PGA Tour Pro Golfer Talor Gooch

Posted on May 18, 2022 by Joel Whitaker

Elijah Craig Bourbon (Heaven Hill) announced a new multi-year partnership with PGA Tour professional golfer, Talor Gooch. A native Oklahoman and whiskey-lover, Gooch’s success both on and off the course will now be supported by Elijah Craig as the “Official Bourbon of Talor Gooch.” This marks the second PGA TOUR Pro to join Team Elijah Craig, following Max Homa in January 2022.

Team Elijah Craig embodies the striver mindset, endeavoring to achieve greatness and master their craft. On tour for seven seasons, Gooch continues to build upon his success. He is currently ranked in the FedEx Cup Top 10 and 34th in the Official World Golf Rankings. Gooch will add to the golf experience for fans this season through integrated marketing campaigns, social media collaboration, and public appearances. He will also proudly display the Elijah Craig logo on his shirt starting early next year.

“We’re excited to have Talor Gooch join the Elijah Craig team, which already has a winning track record with Max Homa clinching his second PGA TOUR title this season at the Wells Fargo Championship,” said Max Stefka, Elijah Craig Senior Brand Manager. “Talor’s appreciation for the patience and perseverance required to hone his craft epitomizes the same approach our craftspeople take to produce award-winning Bourbon. We look forward to many more celebratory moments on and off the course with Talor and Max.”

Elijah Craig is debuting its 19th Hole campaign to extend the fan experience beyond the course this spring and summer. The 19th Hole campaign includes premium media placements in golf publications, digital and social media activations, and consumer contests. Elijah Craig-branded golf ball on-packs and in-store displays rounding out the 360-degree program.

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Who & What —

Posted on May 18, 2022 by Joel Whitaker

Aviation Gin hires Hollie Stephenson as director of the new Aviation Gin Distillery and visitor’s center.  The facility is expected to open later this summer.  She will oversee distilling and bottling operations as well as the visitor’s center and tasting room. Previously, as head brewer of Guinness, she helped build the company’s only North American site.

BeerBoard names Josh Solomon vp-channel partnerships.  He’s a 16-year veteran of BeerBoard and most recently was part of the National Accounts Division.

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U.S. Wine Exports Grew 10.6% in Value Last Year; Largest Jump Since 2013

Posted on May 17, 2022 by Joel Whitaker

U.S. wine exports grew 10.6% in value last year, resulting in $1.44 billion in total revenue according to Wine Institute. California wine represents 95% of all exported wine. It was the largest jump in exports since 2013.

“While we continue to see some challenges in the international marketplace for U.S. wine exports, we’re encouraged that export data shows a trend toward countering the impact of the global pandemic, retaliatory tariffs, unfavorable exchange rates and other external circumstances,” said Honore Comfort, vp-international marketing.  “We’re moving the needle for larger gains in the future with a goal to boost the Golden State’s wine exports by $2.5 billion over the next decade.”

Wine Institute compiles its report with information from Trade Data Monitor and the U.S. Department of Commerce.

“We are very pleased to see our exports return to growth after several challenging years and we are grateful for the Biden administration’s diligent work to address a number of trade irritants,” said Bobby Koch, Wine Institute president/CEO. “We urge the administration to continue working to expand market access for our wines through free trade agreements in key markets such as the United Kingdom.”

International Markets

Canada, the largest export market for U.S. wines with 35.6% market share, was a significant driver of export growth, gaining 11.5% in value over the prior year. Eight of the 10 largest markets for U.S. wine exports saw value gains in 2021. While there were volume declines in various markets that drove an overall 9% drop, the value data is the key indicator of growth, given the wide price ranges of a bottle of wine. Declines in markets such as the United Kingdom and European Union were driven by shipping challenges sparked by global supply chain issues.

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Alcohol-Related Traffic Crashes Up 5% in 2020 as Total Traffic Fatalities Jumped 11%

Posted on May 17, 2022 by Joel Whitaker

Fatalities in police-reported, alcohol-involved traffic crashes rose 5% last year, just about half the increase in crash fatalities overall.

That estimate is courtesy of the National Highway Traffic Safety Administration which yesterday provided a preliminary look at traffic fatality data.  NHTSA projects that an estimated 42,915 people died in motor vehicle traffic crashes last year, a 10.5% increase from the 38,824 fatalities in 2020. The projection is the highest number of fatalities since 2005 and the largest annual percentage increase in the Fatality Analysis Reporting System’s history.

The increase also matches the increase in vehicle miles traveled by drivers in 2021.  Vehicle miles traveled by drivers in 2021 increased by about 325 billion miles, an 11% jump compared with the previous year, according to the Federal Highway Administration.

Forty-four states, the District of Columbia and Puerto Rico are all projected to have had an increase in traffic deaths, as compared to 2020.

Preliminary data reported by the Federal Highway Administration show that vehicle miles traveled in 2021 increased by about 325 billion miles, or about 11.2%, as compared to 2020.

Data estimates show the fatality rate for 2021 was 1.33 fatalities per 100 million VMT, marginally down from 1.34 fatalities in 2020. While the fatality rate continued to rise in the first quarter, it declined in the other three quarters of 2021, compared to 2020.

Additionally, the traffic fatalities in the following categories showed relatively large increases in 2021, as compared to 2020:

  • Fatalities in multi-vehicle crashes up 16%
  • Fatalities on urban roads up 16%
  • Fatalities on rural interstates were up 15%.
  • Fatalities among drivers 65 and older up 14%, reversing the decline in fatalities to those 65 and older seen in 2020.
  • Fatalities in the 25-to-34 age group were up 10%, the 35-to-44 age group were up 15%, the 45-to-54 age group were up 14%
  • Pedestrian fatalities up 13%
  • Fatalities in crashes involving at least one large truck up 13%
  • Daytime fatalities up 11%
  • Motorcyclist fatalities up 9%
  • Bicyclist fatalities up 5%
  • Fatalities in speeding-related crashes up 5%
  • Fatalities in police-reported, alcohol-involvement crashes up 5%, that’s higher than increases seen before the pandemic.

There were some surprises in the report.  For instance, passenger vehicle occupant fatalities increased 2% in vehicles older than 10 years while occupant fatalities in vehicles less than 10 years old jumped 10% — an increase five times the older-vehicle rate.

The report also shows the fatality rate for vehicle occupants ejected from the vehicle increased 2%.

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