Easter Sunday: Good News for Eateries, Not for Bars

Posted on April 14, 2022 by Joel Whitaker

With Easter coming up this weekend, it’s likely eating outlets will see a sales boost, says CGA‘s Matthew Crompton.  In 2019, Easter Sunday experienced velocity growth of +19% in these venues versus the average Sunday in the year to date, driven by an increase in check value of +23%. In comparison, drinking outlets saw velocity down -14% on the Sunday, with a reduction in traffic of -15% being the driving factor.

Velocity in the US over recent weeks has seen a similar pattern to 2019, with a slight decline to April 2 (-3%) followed by growth of +1% in the latest week.  All key states are positive compared to last year.

States with COVID-19 restrictions in place this time last year are currently performing strongly in comparison, with New York up +45%, Illinois up +39%, and California up +24%, while the states that had little to no restrictions are only slightly positive (Florida +2%, Texas +1%).

Crompton, CGA Regional Director – North America, said: “The consistent performance of the On-Premise indicates that the sector has returned to seasonal trading patterns, and suggests that we should see a similar performance to 2019 over the Easter weekend with eating outlets seeing a boost, driven by an increase in check value.”

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Champagne Shipped Over 34 Million Bottles to U.S. in 2021

Posted on April 14, 2022 by Joel Whitaker

That’s a 63.9% increase from the pandemic-depressed shipments of 2020, according to the Comité Champagne. According to Jennifer Hall, director of the Champagne Bureau, USA, “not only did Champagne shipments to the United States rebound last year, but the United States led all countries in shipment volume for the first time in decades.”

Globally, Champagne shipped 322 million bottles in 2021, an increase of 32% from 2020 as COVID-19 restrictions eased worldwide.

Champagne has bounced back as the United States made progress towards recovery from the global pandemic, including a return to in-person celebrations and fewer restrictions at restaurants and bars across the country,” said Jennifer Hall, director of the Champagne Bureau, USA. “We are proud to say that not only did Champagne shipments to the United States rebound last year, but the United States led all countries in shipment volume for the first time in decades.”

The closure of primary consumption and sales hubs, along with the cancellation of in-person events, put pressure on the Champagne industry globally in 2020. However, global shipments increased 32% year-over-year in 2021.

The Champagne industry has weathered global upheaval before, most recently following the 2008 financial crisis.  In 2009, shipments to the U.S. fell nearly 27%.  However, as in 2021, the shipments quickly bounced back, and the industry subsequently saw seven consecutive years of growth in the United States between 2012 and 2019, with an average 6.2% growth in volume per year.

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Marie Brizard W&S Reverses Loss, Posts a Profit

Posted on April 14, 2022 by Joel Whitaker

Marie Brizard Wine & Spirits sold less in fiscal 2021 but turned a profit.  The company reports earning EUR 5.6 million in 2021, reversing a EUR 38.5 million loss a year earlier.   Sales fell 1%, or 2.4 EUR, to 166.7 million euros.

The company said 2021 was marked by a recovery in sales driven by the France cluster despite a slowdown in the Off-Trade spirits market, in particular during the second half, in favour of the On-Trade channel.

International business was impacted by multiple and successive changes in health restrictions, particularly in Europe and major Asian markets. Overall business in the USA was encouraging thanks to the new distribution model but 2021 revenues fell 8% versus 2020, impacted by the distribution model changes in the first half of 2020.

Revenues thus came in at €10.7m, down €5.4m excluding restatement and currency impact. After restatement, pro forma sales decreased by €3.0m compared to the previous year, with the positive effect of the initial stock building at our distributor evaluated at €2.4m. Changes in the US dollar exchange rate had an adverse impact of €0.4m on the company’s revenues, MBWS said.

The end of the year was marked by a slowdown in Sobieski sales due to aggressive promotional strategies pursued by competitors in the vodka category (leading to a decline in value) and postponement of sales to 2022 due to logistical constraints (particularly affecting sea freight). These adverse effects were partly offset by the strong performance from Cognac Gautier.

The gross margin ratio was 41.1% in 2021, down from 42.4% in 2020 due to:

  • the sharp decrease in bulk sales (volume and margin) in the Baltic states (hand sanitizers for the COVID pandemic in 2020), a market that became highly competitive,
  • the negative price effect in France due to trade negotiations and promotional expenditure to drive Sobieski and Paddy brand growth,
  • partly offset by the recovery of the branded business, which posted higher gross margin contributions, particularly for the international and On-Trade business in the second half of 2021.

The various structural measures are bearing fruit and all entities except Dubar in Brazil posted positive EBITDA in 2021.

Net non-recurring operating expenses for 2021 amounted to € -0.1m, mainly due to the positive outcome of the Group’s financial restructuring plan.

The €0,25 m net financial income for 2021 was significantly lower than in 2020 (which included one-off proceeds from Trinidad & Tobago recorded in June 2020), but the cost of debt has fallen significantly, given the change in the Group’s financial structure following the February 2021 capital increase.

Net earnings from continuing operations in 2021 amounted to a €6,6m profit compared to a net loss of €5.6m in 2020, reflecting the Group’s improving profitability and the merits of its strategy of refocusing on the core “brand business”.

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Bud Light NEXT Certified as Climate Neutral

Posted on April 14, 2022 by Joel Whitaker

By measuring and offsetting last year’s carbon emissions and implementing reduction plans for future emissions, Bud Light NEXT has met the independent certification standard from Climate Neutral, a nonprofit organization working with brands and consumers to eliminate greenhouse gas emissions. The new designation comes just two months after hitting store shelves as Anheuser-Busch‘s first-ever zero carb beer.

Climate Neutral’s certification builds on internationally recognized standards for carbon measurement, neutrality, and reduction. When Climate Neutral certifies a brand such as Bud Light NEXT as climate neutral, it means the brand has chosen to be accountable for the greenhouse gas emissions generated in the production and operations of their goods or services. To showcase its commitment, Bud Light NEXT will proudly feature the Climate Neutral certification on its packaging beginning in June.

“When we launched Bud Light NEXT, we wanted to bring a beer to market that was all about breaking barriers, just like the consumers it was brewed for,” said Andy Goeler, VP-Marketing, Bud Light. “We have a huge opportunity with Bud Light NEXT to take bold action that creates a better future for our consumers and the next generations to come, and our Climate Neutral certification is a big step in that journey for us.”

In honor of this milestone, Bud Light will also be working with its leading esports partner – League of Legends Championship Series (LCS) – to offset 100% of the electricity used during the LCS Spring Finals in Houston, TX at NRG Stadium taking place April 23-24 with clean, renewable sources from wind power.

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Macallan Launches Limited Edition $4,500 Distil Your World New York

Posted on April 14, 2022 by Joel Whitaker

Distil Your World New York marks the latest release in the series of single malt whiskies and gastronomic creations exploring leading locations around the globe. Crafted by The Macallan Whisky Maker Polly Logan in collaboration with the Roca brothers, owners of El Celler de Can Roca, twice named Best Restaurant in the World, Distil Your World New York embodies and celebrates the city as a dynamic metropolis of art, creativity and visionary talent.

Building on the subtle apple notes already characteristic of The Macallan, Distil Your World New York also offers the sweetness of classic American candy, with nods to peanut and chocolate. A whisp of sidewalks portrays the bustle of the city while uplifting citrus represents the skyscrapers that dominate New York’s skyline. “We really looked towards the quintessential tastes of New York – sweet candy, waffles, peanut brittle, chocolate, and pecans. The city’s thriving street food scene was a great source of inspiration” said The Macallan Whisky Maker Polly Logan.

Distil Your World New York is housed in a striking white presentation box featuring an engraved aerial map of New York. Bold touches of blue on the box and bottle represent the water that surrounds the city and the buildings which reach into the sky.  In addition to the l whisky,imited-edition the box contains a luxurious book showcasing the different inspirations behind this single malt, and the craftsmanship involved in its creation, alongside rich New York photography.

The Macallan Distil Your World New York is a limited-edition release of 1,000 bottles and will be available starting April 2022 for an SRP of $4,200 for the 70cl bottle and $4,500 for the 75cl version at select The Macallan Boutiques around the world, in premium specialist retailers and in exclusive premium non-specialist retailers.

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Hennessy Campaign Celebrates Basketball’s Cultural Influence

Posted on April 14, 2022 by Joel Whitaker

Presented via a short film developed by creative agency Droga5 New York & directed by award-winning director and music producer Maceo Frost, the Hennessy ‘Game Never Stops‘ campaign tells the story of a sport that has created a cultural movement with a global impact that goes far beyond the lives of those who play and watch it. Through his immersive directing style Frost showcases the influence basketball has had on the work of four talents within the music, photography, and fashion industries, all yielding from different parts of the world.

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