You Get the News First in Kane’s

Posted on July 28, 2022 by Joel Whitaker

On June 13, we reported that Alcohol & Tobacco Tax & Trade Bureau was proposing amending 27 CFR Part 4 to allow winemakers to reference added distilled spirits on labels and in ads.  Now that JD Supra, a newsletter for lawyers has carried a legal analysis of that proposal, some of our competitors are trumpeting this six-week-old piece of news like it was fresh off the Government Printing Office’s presses.  If you want to read the analysis, it’s here.

Posted in News, Regulations | Tagged | Comments Off on You Get the News First in Kane’s

Campari Organic Sales Jump 19.2%, Net Profit Soars 40.4%

Posted on July 27, 2022 by Joel Whitaker

Sales in the Americas, which comprise 44% of Campari Group’s total sales, were up 12.9% organically in the fiscal first half.  Sales in the largest market, the U.S., were up 7.1%, and accelerated slightly across core brands despite tough comparables.  Wild Turkey bourbon, Espolón, Aperol and Campari all grew double digits in the first half. Grand Marnier declined due to a tough comparison base and volumes constraints linked to glass availability. SKYY also declined.

Canada grew by +4.5%. The rest of the region, including Jamaica, Brazil, Mexico and Argentina, grew by double digits thanks to good consumption trends.

Looking at performance by brand, Campari reports that Global Priorities (60% of total Group sales) registered an organic growth of +22.2%. Aperol grew +37.3%, thanks to core
Italy (+35.4%), Germany (+54.7%), France (+39.6%), Spain (+206.8%) and the U. S. (+20.7%), as well as all other European markets. The performance was boosted also by favorable weather conditions.

The Q2 performance was strong overall (+24.2%) despite the tough comparison base (Q2 2021 +69.5%), thanks to numerous activations across all markets and strong recruitment in the on-premise while sustained home-premise consumption remains. Campari delivered strong growth of +32% thanks to all major markets, including Italy (+48.1%), the U.S., Brazil, Jamaica, Germany, Nigeria and Spain.

The brand continues to benefit from mixology trends, via proprietary cocktails such as the
Negroni, Americano and Boulevardier as well as the success of the consumer-driven Campari spritz. Wild Turkey registered solid growth, up +18.1%, mainly driven by the core US market and Australia as well as South Korea.

SKYY declined -4.1% largely due to the U.S. and China, partly mitigated by other international markets. Grand Marnier was flattish after weak shipments in Q2 in the core US due to a tough comparison base and glass constraints. Campari’s Jamaican rum portfolio grew +15.6% overall against a tough comparison base, driven by the favorable category trends in premium rum.

– Regional Priorities (23% of total Group sales) recorded a positive performance (+22.6%). Espolòn grew by double digits (+20.3%) despite a tough comparison base, thanks to the core U.S. market. The performance was boosted also by pricing. Crodino grew by strong double digits driven by strong growth in core Italy as well as seeding markets. The Glen Grant grew double digits driven by premiumisation, in particular in South Korea, China and GTR. Other brands such as the Italian specialities, the sparkling wines and vermouths (Cinzano, Mondoro and Riccadonna) and Aperol Spritz ready-to-enjoy all delivered positive results.

– Local Priorities (8% of total Group sales) grew +6.9% with positive performance of Campari Soda, Wild Turkey ready-to-drink, SKYY ready-to-drink and Cabo Wabo. X-rated declined driven by weak performance in China due to snap lockdowns.

Posted in Earnings Report, News | Tagged | Comments Off on Campari Organic Sales Jump 19.2%, Net Profit Soars 40.4%

Gallo Enters American Whiskey Category, Invests in Horse Soldier Bourbon

Posted on July 27, 2022 by Joel Whitaker

Spirit of Gallo, the #4 spirits supplier in the USA by volume, said it  entered the American Whiskey category by making a strategic investment in Horse Soldier Bourbon brand and effective immediately will begin distributing the brand in the United States.  Terms weren’t disclosed.

Horse Soldier is available in 17 U.S. states and is currently the No. 8-selling Ultra-Premium Bourbon, outpacing all its competitors in the $40+ pricing category with +97% growth in dollars leading into the summer*.

Horse Soldier Bourbon was founded in 2016 by John Koko, Elizabeth Pritchard-Koko, Scott Neil, and key retired members of the hand-selected detachment of Green Berets from the 5th Special Forces Group who were the first to enter Afghanistan on horseback weeks following the 9/11 terrorist attacks. This brave and unconventional act earned them the moniker of “Horse Soldiers,” and their story was told in the 2018 action-drama film “12 Strong.”

“From the hills of Afghanistan to the valleys of Somerset Kentucky, we’ve learned that you are only as good as the company you keep, and we are proud of this new partnership,” said John Koko, CEO & Chairman of Horse Soldier Bourbon.  “It positions us for unprecedented growth and preserves our legacy through the best-in-class capabilities and commitment that the entire Spirit of Gallo organization brings to consumers across the country.”

Posted in Distilled Spirits, Distribution, News | Comments Off on Gallo Enters American Whiskey Category, Invests in Horse Soldier Bourbon

Coors Light’s Clever Response to the Mosquitoes of Summer

Posted on July 27, 2022 by Joel Whitaker

Coors Light is introducing a new tool that aims to save summer outings from summer’s most notorious pest. The “Coors Light Thirst Trap” is a 3-D-printed funnel that attaches to a 12-ounce can of Coors Light and attracts – and traps – the bothersome bugs.

“Scientific research found that if you’re drinking beer, you’re more attractive to mosquitos. So we’re directing mosquitos straight to the source: the remnants of your delicious beer. By doing so, we’re reclaiming outdoor spaces during the best parts of summer,” says Lindsay Wesloski, marketing manager for Coors Light.

The limited-edition Coors Light Thirst Trap – available online for $5 – works like this: A drinker cracks open a Coors Light and drinks it, leaving a few sips at the bottom. From there, they clip the Thirst Trap onto the mouth of the mostly empty can, attracting mosquitos with the sweet scent of beer. The mosquitos stay in the can, allowing consumers to chill bite-free with their friends.

The Thirst Trap, made of 3-D-printed resin, is Coors Light’s latest volley in its summer marketing program, where it’s declared itself the Official Beer of Everything Unofficial — ranging from snagging great seats at a ballgame to relaxing in a pool.

Posted in Marketing, News | Tagged , | Comments Off on Coors Light’s Clever Response to the Mosquitoes of Summer

OAX Intros Sustainability Initiative

Posted on July 27, 2022 by Joel Whitaker

OAX Original announces a brand-new sustainably focused initiative, the “one bottle produced, one maguey planted” reforesting program, which will restore one wild agave back to its endemic environment in Oaxaca for every bottle produced.

Additionally, 35% of the replanted agave will be gifted back to its Mezcalero partner in Oaxaca to further support the traditions and heritage of this epicenter of mezcal production.

With limited quantities of about 1000 bottles per varietal available and retailing at $125-185 (pricing may vary by retailer and location) per bottle, OAX is a top-shelf spirit that challenges the way we see and encounter mezcal.

 The three matte bottles in black (Arroqueño), white (Tobalá) and pink (Tepeztate) are manufactured off-site in Pachuca, Mexico, and draw inspiration from vernacular Mexican architecture, from the mysterious monolithic pre-Hispanic architecture to the Euro-American Modernist designs spearheaded by Luis Barragán and presently embodied in the work of architects Frida Escobedo, Mauricio Rocha and Gabriela Carrillo, among others.

OAX Original comes in a silkscreened kraft box, equating the unboxing experience with that of an art piece or a design item. The bottle’s striking aesthetic has been previously highlighted by leading design publications including Wallpaper, Design Milk, Print Magazine and more.

Posted in Marketing, News | Tagged | Comments Off on OAX Intros Sustainability Initiative

Presidente Sports a New Label

Posted on July 27, 2022 by Joel Whitaker

González Byass USA is releasing Brandy Presidente with a new label and bottle to showcase the brandy’s heritage with ‘De Mexico Para Todos’ (translating to from Mexico from all) embossed on the bottle to celebrate the brand’s heritage.

Presidente is the national drink of Mexico, produced by Casa Pedro Domecq; the Domecq company is the top producer of brandy in Mexico and was founded in Jerez, Spain 1822 by Pedro Domecq Lembeye to produce high quality sherries and brandies. In 1941 the company set up brandy distilleries and soleras in Mexico and South America, launching Presidente in 1956.

The bottle also now includes a visible crest embossed in red, signifying the Casa Pedro Domecq heritage, along with the Domecq signature. Nicolás Bertino, CEO and Country Manager of González Byass USA, says, “Presidente is the second-largest imported brandy in the U.S. and we wanted to showcase the heritage and modernity of the brand, while what’s in this new bottle is the same, delicious brandy millions have come to love.”

Retailing for $16.99, Presidente will transition to the new 750ml bottle across the U.S. in August 2022, in addition to 200ml, 375ml, 1L, and 1.75L bottle formats.

Posted in News, Packaging | Tagged , | Comments Off on Presidente Sports a New Label