Late Night a Premium Time for Premium Drinks On-Premise: CGA

Posted on July 29, 2022 by Joel Whitaker

Some 8% of consumers visited On Premise venues for late night occasions in the past three months, two thirds paid extra for higher quality drinks.  That’s according to CGA’s Consumer On Premise Impact Report.   Whiskey and Tequila are obvious beneficiaries, but so, too, are heer (44%) and cocktails (40%).

The report finds that two-thirds of consumers have visited restaurants or bars for food-led occasions in the past two weeks, while around two in five have done so for drink led occasions.  Seven out of 10 consumers say they plan to eat out on premise during the next two weeks and almost half plan to head to venues for drink led occasions.   Beer and cocktails remains the most-consumed alcoholic drink categories in bars and restaurants.

Some 20% of on-premise visitors say they have visited craft breweries in the last three months.  Not surprisingly, independent breweries local to the consumer’s region are most popular with craft beer drinkers, especially in California, CGA finds, closely followed by local, independent microbreweries.  Half of craft beer drinkers consume lager, making it the single most popular style of craft beer, although various alternatives are also proving popular and demonstrating high consumption rates.

“Despite concerns around inflation and the increase in cost of living, it’s clear that there are significant opportunities within the On-Premise channel for drinks suppliers to promote their more premium brands. What is key is how these brands are positioned to consumers, and when – with the late-night occasion posing a particular advantage for brands that are perceived as being higher-quality. This is just one example of how consumer behavior has shifted,” said Matthew Crompton, CGA regional director-North America. 

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Total Bev/Al Has Settled Into a New Normal

Posted on July 29, 2022 by Joel Whitaker

That’s the conclusion of bw166, and what it has to say about the new normal should disturb a lot of bev/al execs at both the wholesaler and supplier levels.

Take, for instance, beer.  Superficially, beer is up 1.9%, about 107.2 million barrels in the first half from a year earlier.  “The reality is that the total growth can be attributed to imports from Mexico while the cumulative mix of all other sources and types is flat. Looking at Mexican Beer, Constellation is the key driver of these trends. The Compound Annual Growth Rate (CAGR) for Mexican Beer from the first half of 2019 to the first half of 2022 is 6.0% which is a reasonable trend line adjusting for the disruptions noted above. Consumer spending for Beer Off-Premise in the first half was $38.9 Billion, a 4.4% CAGR from the first half of 2019. Consumer spending for Beer On-Premise in the first half was $30.1 Billion, a 4.5% CAGR from the first half of 2019.”

Wine shipments in the first half are down 0.7%.   But, again, it’s not quite what it appears to be.  bw166 says the “key drivers of the decline are Flavored Wine Beverages and Vermouth. Excluding these types, wine shipments are up over 3.0% in the first six months. Consumer spending for Wine Off-Premise in the first half was $26.7 Billion, a 4.3% CAGR from the first half of 2019. Consumer spending for Wine On-Premise in the first half was $15.0 Billion, a 3.7% CAGR from the first half of 2019.”

As for spirits, well, spirits were up a spirited (sorry, I couldn’t resist) 11.1%.  The largest drivers of this growth are Tequila and RTD Cocktails. Consumer spending for Spirits Off-Premise in the first half was $26.9 Billion, an 8.8% CAGR from the first half of 2019. Consumer spending for Spirits On-Premise in the first half was $24.0 Billion, an 8.4% CAGR from the first half of 2019, bw166 says.

For the full year, bw166 projects “Beer volume shipments will be flat, Wine will be down 2%, but excluding Wine Flavored Beverages and Vermouth, Wine shipments will be up 1%, and Sprits shipments will be up 4%. We see consumer spending on beverage alcohol growing at 4.5%, slightly lower than the CAGR since 2019 due to the slowing economy.”

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FitVine Wine Intros a New Cab Reserve. Here’s a Secret: It May be Available Locally

Posted on July 29, 2022 by Joel Whitaker

FitVine Wine, a maker of low-sugar, full bodied wines, is introducing a new North Coast Cabernet Reserve.

Reading the press release, you’d think the $19.95 wine was available only from the winery because nowhere does it mention “select local retailers” or any such phrase.  In fact, it was available just about anywhere we checked, and not just in snooty upscale emmporiums but in Walmarts and Whole Foods Markets, too.

Tom Beaton, CEO, thinks it’s a pretty special wine.  “There are two factors that impact the flavor of wine: the grapes and the fermentation process. The grapes for this new variety come from the North Coast of California. They are picked at the perfect moment and go through the same fermentation process as our other varietals. We take an ‘old world wine’ approach and ferment our wines for as long as possible to get deep flavor while reducing residual sugar. That’s how we get them to taste so good while maintaining low sugar content, no flavor additives, and only the good stuff!”

FitVine Wine is a pioneer of the better-for-you (BFY) wine category. Nevertheless, it could be said that the brand is in a category of its own. FitVine Wine is full-bodied and full-alcohol like traditional wines but contains no flavor additives and is processed to be gluten-free and is 100% vegan.

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NBWA Marks 2d Year of Distributors Against Human Trafficking

Posted on July 29, 2022 by Joel Whitaker

National Beer Wholesalers Association‘s Distributors Against Human Trafficking initiative marked its second  anniversary on Friday (7/29).  To date, nearly 29,000 beer distributors have been trained to spot the signs of human trafficking. The initiative was created to mobilize NBWA’s more than 140,000 beer distribution employees across the country in the fight against human trafficking by providing local distributors with the necessary tools and resources to recognize and report the signs of this heinous crime.

“NBWA started the Distributors Against Human Trafficking initiative in 2020, and it has far surpassed our initial goals for engagement. We are incredibly proud of the initiative’s growth,” said NBWA President/CEO Craig Purser. “The Distributors Against Human Trafficking initiative has become a model for other associations to tackle pressing issues successfully. In its second year, the initiative has received positive industry recognition and even a prestigious award. The initiative’s continued success would not have been possible without the investment and dedication of distributors in every state across the country.”

Human trafficking continues to plague communities across the United States. In 2019 alone, the Polaris Project identified 22,326 victims and survivors of human trafficking, up 20 percent from the prior year. Additionally, human trafficking disproportionately targets vulnerable populations like women and children. Over half of the active criminal human trafficking cases in the U.S. involved children.

Noting these glaring statistics and the presence of beer distributors in 640,000 retail establishments across the country, NBWA identified the need to join the fight and founded the Distributors Against Human Trafficking initiative in July of 2020. NBWA launched the campaign to provide resources and training for beer distribution employees across the country to help educate them on the signs of human trafficking.

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Who & What —

Posted on July 29, 2022 by Joel Whitaker

Sagamore Spirit, the leading distiller of Maryland rye, hires Dayna Dennington as EVP- Sales, effective Aug. 1.  She joins from Fever-Tree USA.

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Beam Suntory Sets $400 Million Expansion of Booker Noe Distillery

Posted on July 28, 2022 by Joel Whitaker

Beam Suntory will expand the capacity of Jim Beam Brands Co. with a $400 million investment that will create more than 50 full-time jobs at the Booker Noe Distillery in Boston, Ky.

“Jim Beam is a renowned name within Kentucky’s signature bourbon industry, and I am thrilled to see the company continue to grow in our state,” Gov. Beshear said. “This is a substantial investment in Nelson County that will ensure Jim Beam continues to grow in Central Kentucky for decades to come. Thank you to the leaders at the company for once again showing faith in our state and our incredible workforce.”

“We are excited about this expansion opportunity at our Booker Noe site, building on our recent investment in the new consumer experience in Clermont, and now expanding production to ensure enough of our premium liquid is available wherever consumers are looking for them,” said Carlo Coppola, managing director of the James B. Beam Distilling Co. “We appreciate the continued support of Gov. Beshear and his administration of the bourbon industry and these incentives will enable us to bring more great jobs to Kentucky. We are still finalizing our plans and will have more details to share very soon.”

“Jim Beam is a renowned name within Kentucky’s signature bourbon industry, and I am thrilled to see the company continue to grow in our state,” Gov. Andy Beshear said. “This is a substantial investment in Nelson County that will ensure Jim Beam continues to grow in Central Kentucky for decades to come. Thank you to the leaders at the company for once again showing faith in our state and our incredible workforce.”

Based in Clermont, Kentucky, the James B. Beam Distilling Co. brands have been produced in the state since 1795. Beam Suntory was formed in 2014 after the company was acquired by Japan-based Suntory Holdings. Beam Suntory is one of the world’s largest producers of premium spirits, with products that include a range of whiskeys, cognacs, gins, vodkas, rum and more. Major bourbon brands include Jim Beam, Maker’s Mark, Booker’s, Legent, Basil Hayden, Knob Creek and Baker’s.

This investment adds to recent bourbon and spirits growth throughout the commonwealth. Since December 2019, Kentucky’s spirits industry has announced more than 50 new-location or expansion projects totaling over $1.1 billion in planned investments and creating more than 900 announced full-time jobs. Currently, approximately 60 spirits facilities directly employ more than 5,300 people.

Kentucky’s bourbon sector is a nearly $9 billion signature industry, generating more than 22,500 jobs with an annual payroll exceeding $1.23 billion. Beam in Nelson County,” Judge Watts said. “The art of making great bourbon is so important to the bourbon heritage that we take pride in, and Jim Beam is top shelf.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3 million in tax incentives based on the company’s investment of up to $436.4 million and annual targets of:

  • Creation and maintenance of 51 Kentucky-resident, full-time jobs across 15 years; and
  • Paying an average hourly wage of $51 including benefits across those jobs.

Additionally, KEDFA approved Beam Suntory for up to $550,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, the company can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

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