What We’re Reading —

Posted on July 18, 2022 by Joel Whitaker

The Shrinking Footprint of Glass Wine Bottles

How the wine world and its suppliers are dealing with the problematic carbon emissions of its favored packaging.  (SevenFifty Daily)

 

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FYI —

Posted on July 18, 2022 by Joel Whitaker

News Consumers See Balance as Part of Accuracy. The Press? Not So Much.

What a new Pew survey tells about the state of the media. (The Dispatch)

A personal note on the above:  The old Fox News had it exactly right:  Reporting should be fair and balanced.  The only major newspaper I know today that consistently hits that mark is The Wall Street Journal.  I try to always be fair and always be balanced.  Readers of both the Journal and this newsletter need, however, to understand that when we reach out for comment — and we sometimes do it at inconvenient times — if we don’t get a response, we’ll publish the story anyway.  But we’ll include a line that X didn’t immediately respond to a request for comment.  And when we do get the comment, we’ll report that.

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WSWA ‘Disappointed’ Uniform Laws Panel Took Up Direct Shipping Issue

Posted on July 15, 2022 by Joel Whitaker

Wine & Spirits Wholesalers of America said it was “disappointed” the Uniform Laws Commission took up the issue of direct shipping of alcohol beverages.  But, it added, it “appreciated the efforts the ULC has taken to provide state lawmakers with model legislation to promote a compliant and fair marketplace for those states that choose to allow certain types of shipping.”

The Uniform Laws Commission is a panel of lawyers, judges, and law professors who gather to draft Model Acts for state legislatures to consider adopting in addressing various issues.  At its meeting last week in Philadelphia, Uniform Alcohol Direct Shipment Compliance Act was one of five Model Acts that was adopted.  The other five were amendments to the Uniform Commercial Code to accommodate emerging technologies, Uniform Electronic Estate Planning Documents, Model Public Meetings During Emergencies Act and the Uniform Telehealth Act.

WSWA, which opposes the direct-to-consumer shipping of alcohol, said “many public health and safety problems exist in an interstate DTC marketplace as those shipments are essentially hidden from regulatory management. While not the most effective solution, tools such as common carrier reporting and fulfillment provider reporting help provide some transparency for regulators seeking to enforce their laws and keep citizens safe. The best solution is local, licensed delivery that provides unparallel consumer convenience and state oversight, as well as promotes strong communities.”

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Scheid Revenue Jumps 34%, But Firm Swings to a Loss

Posted on July 15, 2022 by Joel Whitaker

Schwab Family Wines reports reports total revenue of $15/9 million in the three months ended May 31, a 34% increase from $11.9 million a year earlier.  But the company, for reasons that are not clear to us, post a net loss of $2.2 million versus a profit of $15.1 million a year earlier.

Cased goods sales increased 36%, bulk wine sales increased 41%, and winery processing and storage revenues increased 60% from the previous year. Overall increases in revenues were partially offset by gross margin decreases from 24% in the 2021 period to 22% in 2022. Margins decreased primarily due to changes in product mix, as well as increases in material costs. Total gross profit increased 24%.

Sales and marketing expenses increased 25%, from $2.8 to $3.5 million, as the Company continued its investment in the marketing of new brands and territories. The Company recognized a gain of $23.8 million from the sale of vineyard properties in the first quarter of fiscal 2022. The net loss before the effects of the gain on vineyard sales and income taxes totaled $2.8 million in the first quarter of fiscal 2022 of as compared to a net loss before income taxes of $3.1 million in fiscal 2023.

As noted, it’s not clear to us why the company posted a loss.  We’ve asked, and will let you know when we get an answer.

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Who & What —

Posted on July 15, 2022 by Joel Whitaker

Frederick Wildman & Sons announces the departure of Marc Hirten, president/chief operating officer.  Roberta Corra, ceo, will act as president/coo, until a replacement is named.

In another development, Frederick Wildman hires Matt Munn as chief commercial officer.   He most recently was senior vp and general manager at Southern Glazer’s Wine & Spirits.

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What We’re Reading–

Posted on July 15, 2022 by Joel Whitaker

Meet Champagne House Perrier-Jouët’s First Female Cellar Master

 

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