End State Stores, Penna. Consumers Say in DISCUS Poll

The majority of Pennsylvania consumers – both Democrats and Republicans – support major changes to the current government-run retail sale of wine and spirits in the state of Pennsylvania, according to a new poll released by the Distilled Spirits Council of the United States.

The poll, conducted by the Tarrance Group surveyed consumer attitudes on a range of issues related to state ABC stores.

Key findings include:

  • 64% favor or strongly favor a state constitutional amendment to end government retail sale of wine and spirits in the State of Pennsylvania
  • 76% favor or strongly favor allowing beer distributors and grocery/convenience stores to sell pre-mixed and ready-to-drink cocktails
  • 61% believe systems like in Ohio and West Virginia – where the state distributes wine and spirits but allows private businesses to sell these products – is the right system

“This poll makes it clear that Pennsylvania residents across the political spectrum are supportive of modernizing the retail sale of spirits and expanding the number of stores that carry these products,” said David Wojnar, senior vp and head of state government relations at DISCUS. “With only 600 state stores, Pennsylvania lags behind other control states, and voters want change. We have long worked with control-state systems to ensure consumer needs are being met and are hopeful we can do the same in Pennsylvania.”

Act 39, signed into law in 2016, allowed the sale of wine in grocery stores but failed to allow spirits products the same market access.

“Spirits consumers should have the same opportunity to purchase their favorite distilled spirits products that wine and beer consumers do,” Wojnar added. “Allowing retail outlets that already sell beer and wine to also sell spirits products would be a great start towards answering consumer demand.”

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Premiumization Drives Recovery On-Premise: CGA

Consumers in the US are opting to spend more on their drinks in bars and restaurants as premiumization drives the recovery of the On Premise after COVID-19, CGA said. .

The premium price tier of the spirits market took a 40% share of sales by value in February 2022, while super-premium took 18%. The ultra-premium segment had a 4% dollar share, having grown sales by 180% year-on-year. It means that the three premium categories now account for 62 cents in every dollar spent on spirits, CGA’s exclusive On Premise Measurement (OPM) service shows.

The premiumization trend was paused during the pandemic is now accelerating again, creating challenges for some spirit brands in the mid-price tier, which saw its share trimmed to 23% in February, from 25% in the same month in 2021. Other CGA insights within specific spirits categories include:

  • Half (50%) of gin sales now come from the premium price tier. Premium and super-premium segments have grown their sales by 137% and 167% respectively year-on-year
  • Super-premium tequila’s share of total sales has jumped from 28% to 32% in a year, while the mid-price tier’s share has gone the other way—from 32% to 28%
  • Vodka’s premium price tier has increased its share from 42% to 44%
  • Whiskey’s super-premium and ultra-premium sales have grown by 163% and 165% respectively over the last year.

There have been more notable moves towards premiumization in other categories Including brandy and rum, which have traditionally been dominated by the mid-price category.

Patrick Bannon, CGA client director, Americas, said: “Celebration and treat occasions are crucial to the US On Premise, and the data suggests that more and more consumers are looking for more premium offerings after two years of disruption from COVID-19. However, mid-priced brands still have a big role to play too, and beverage suppliers and operators that can respond to ever-changing tastes and preferences with the optimal spirits assortment will have a significant competitive advantage.

 

“CGA will be keeping a finger on the pulse through its OPM read and other capabilities, including our proprietary Assortment Optimization Tool, which can determine the optimal brand assortment by category and price tier for specific outlet types; and watching how long and how far this trend develops in 2022.”

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Bud Light to Pay $15 Million to Fans Who Predict All 32 1st Round Draft Picks

“As the official beer sponsor of the NFL, Bud Light continues to cement itself as the beer of choice for football fans across the country by providing them experiences and something to cheers to year-round,” said Andy Goeler, vp-marketing. “Our ‘Perfect Draft’ campaign is the latest way Bud Light is celebrating the most passionate fanbase in sports with the ultimate prize – getting paid like a first-round NFL pick.”

To encourage fans 21+ to enter the competition for their chance to get paid, Bud Light has partnered with former tight end, and 2007 first-round selection, Greg Olsen. Beginning today, fans 21+ can submit their picks to enter the ‘Perfect Draft’ competition at budlight.com/perfectdraft.

Fans can submit their ‘Perfect Draft’ selections up until Thursday, April 28 at 7 p.m., and then tune in to the 2022 NFL Draft in Las Vegas at 8 p.m. to watch the action unfold and see if you will be cashing in on a first-round payday!

Bud Light will also be on the ground in Las Vegas throughout NFL Draft Weekend to help fans 21+ raise a toast to the newest additions to their favorite team. Fans can visit Bud Light at the NFL Draft Experience and fill out their own Mock Draft. If a fan correctly predicts the first five selections from the first round Thursday night, they can show their Mock Draft for a chance to win upgraded VIP access.

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Freshie Organic Tequila Seltzer Expands into Florida

Southern Glazer’s Wine & Spirits will be the distributor.  Freshie is the only USDA-certified organic and sustainably produced tequila seltzer.

The brand launched in the Chicago area in 2021 with one SKU (lime)and is now in more than 1,000 retailers and restaurants. “Between the growth of the spirit-based seltzer category and the growth of the tequila category, we knew Freshie would appeal to anyone looking for a light, hand-crafted, organic tequila seltzer,” said Freshie Co-founder Paige Iseminger. Freshie will be supported in market this summer with digital advertising, social media and PR campaigns as well as retail sampling and events in key markets. With ISWR projecting spirit-based RTDs we see 33% annual volume growth, Freshie expects to enter other markets soon.

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Virginia ABC to Announce Release Dates for Hard-to-Find Spirits

The move is intended to make it fair for everyone, CEO Travis Hill says.  In the past, some customers would camp out or follow trucks on deliveries.

“We’re going to announce [release dates and locations], and then it gives everybody the opportunity to make that decision of, ‘okay, I’m going to try to go down to the store and see what they’ve got,’ and having a chance versus knowing, ‘well, if I go there at whatever time in the morning, people are going to be lined up and I’m not going to have a chance,” said Hill.

He says Virginia ABC will continue to host special lotteries for the hardest-to-find products.

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Bacardi Sues American Airline for ‘Losing or Stealing’ 400 Cases of French Cognac

According to the lawsuit, Bacardi gave American Airlines 24 pallets containing 1,680 cases, to deliver to Los Angeles International Airport last year, but six cases never arrived and were either lost or stolen, Bacardi alleged.  The lawsuit was originally reported by the Dallas Morning News.

American Airlines didn’t immediately respond to a request for comment.

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