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Heineken Completes Stake Purchases in Lagunitas, Slovenian Brewery

Heineken Zoeterwoude. (Photo by Jasper Juinen for Heineken)

Heineken continues to expand its global beer portfolio.

The company announced today that is has closed on the purchase of a 50-percent stake of U.S. craft brewery Lagunitas. This follows fulfilment of conditions agreed upon last September, when the intention to enter into a partnership with was announced.

Heineken also officially acquired a majority share of Pivovarna Laško d.d. — the largest brewery in Slovenia — for a price of about $29 per share.

 A total number of 4,673,941 shares were acquired from a consortium of shareholders representing 53.43 percent of the issued share capital, for a total consideration of about $135.58 million. Heineken will formally announce its intention to make a mandatory takeover offer to all remaining shareholders within the coming three business days.

Heineken acquired the Jamaican beer brand Red Stripe earlier this month.

Charmer Sunbelt and Wirtz Beverage Agree to Merge

AB Inbev and SabMiller aren’t the only major alcohol companies about to merge.

The Charmer Sunbelt Group and Wirtz Beverage Group — two of North America’s pre-eminent family-run distributors of wine, spirits and beer — announced that they have signed an agreement to combine their beverage alcohol operations.

The new company, Breakthru Beverage Group, will be one of the largest wholesale distributors in the United States and Canada.

The company will initially have operations in 16 markets, employ more than 7,000 people and represent a portfolio of wine, spirits and beer brands with $6 billion in annual sales, company spokespeople said.

W. Rockwell Wirtz and Charles Merinoff will lead the new organization as co-chairmen of the Board. Daniel Wirtz, current president of Wirtz Beverage Group, will be vice-chairman.

Greg Baird, current Charmer Sunbelt president, will serve as the president and chief executive officer of the company. Arthur Wirtz, current Wirtz Beverage chief operating officer, will serve as executive vice president of operations and a member of the board.

Is Gin the New Craft Beer?

Global trends often preview local trends.

Who would have guessed in the early 2000s that craft beer would be such a huge trend? What started off as just a few local brews sold locally, inched up to steal market shares from some of the biggest players. Now craft represents over 11% in volume of the U.S. market, and probably more importantly, close to 20% of the market in value.

Some were taken by surprise; some rode the wave and profited; but undoubtably, everyone now asks, “where is the next trend coming from?”

There is certainly plenty of U.S. consumer research and data tracking to keep every trade analyst busy, so instead of looking in, I propose to look outside of our borders to see what interesting trends are taking place in Europe and Asia. And without a doubt, one trend stands out from the crowd: the growth of premium “craft-like” gin.

Although interesting variations appear from country to country, agencies across Sopexa’s network agreed that premium and small-batch gins were a trend to contend with.

In Germany, where the trend is probably the most apparent, gin is living through a full-blown renaissance. Hipster brand ambassadors highlight the wonders of their unique product. Creative and adventurous mixologists itch with the desire to explain the differences between the various product discoveries they have made.

And dedicated bars, like the G&T in Berlin, are becoming unmissable staples of the nightscape.

“In Germany, gin has now become an affair of connoisseurs,” says Sylvain Rouchy, Sopexa Germany’s Managing Director. “Long gone are the days where you’d order just a Gin & Tonic at the bar.”

How Mia Wines Gives Drinkers What They Want

I recently sat down with Gloria Collell (pictured above) to get the low-down on Mia wines, the fun-forward, entry-level wine available from Freixenet USA.

Collell says the wine was researched every step of the way to create a line specifically for new wine drinkers. Freixenet – looking to renew its offerings – and Collell spent two years before they had a blend, and then continued to tweak the recipes, labels and the messaging based on consumer focus groups.

The outcome is an easy-drinking wine with an engaging story and a fun label. Collell says the background of the line differs drastically from the way things used to be done.

“Twenty five years ago, a winery would say, ‘This is my terroir, this is my soil, those are the grapes I can grow, those are the wines I can make and the consumer should like it,” she says. “Now, we’ve realized we need to talk to the consumer and can’t just take the wine Mother Nature is giving us.”

Most of the big brands have moved toward this research and product, as the risk of creating a new line becomes a million-dollar gamble.

“If you’re making 2,000 bottles, go ahead. If nobody likes it, you can drink it with your friends. But if you’re selling one million bottles you need to understand what the consumer wants,” said Collell. “To me that’s the big change in the wine business — and that’s good. We need to talk; we need to understand what people want.”

BD: What was that research like? 

GC: I think the whole trade and Freixenet especially realized that we had to do something different. So in 2009 we started deep research into what the consumer was all about. And the wine was released in 2011.

In 2011, we started more research into the consumer’s needs. The young consumers that we approached desired uncomplicated wines. They wanted “easy to drink” and “easy to understand.” At the same time there was this desire for real stories. But that demographic wants real stories, they want true stories – they don’t want marketing

BD: What was the inspiration for these wines? 

GC: For me, it was clear that we had to be ambassadors of Spanish grapes. So we said, “Let’s make this style of new-generation wine, but with a Spanish flair.” So Mia was born of the Spanish taste with the Barcelona look, because people love Barcelona.

What Makes a Beer an Import?

The issue of authentic beer imports recently made headlines, thanks to the settlement of a class-action lawsuit that claimed Beck’s was brewed in St. Louis, rather than Germany. Anheuser-Busch may issue refunds to consumers who purchased Beck’s believing it was a true import, rather than a domestically-brewed beer. (Source: Wall Street Journal)

Beck’s is far from the only beer to walk a fine line between import and export – Red Stripe, Foster’s and Killian’s Irish Red are often advertised as imports, but brewed domestically (and all indicate on the bottle that they are from the U.S.).

So why would a brewer imply that its product was an import, when it may have been brewed a few states away? I spoke to Ray Faust, Chief Sales Officer at Heineken USA to find out more. Heineken’s products are all true imports, coming into the U.S. from Europe and Mexico.

Heineken USA Imports the Heineken, Dos Equis and Tecate portfolios, as well as Amstel Light, Newcastle Brown Ale, Strongbow Hard Cider, Sol, Indio, Carta Blanca and Bohemia. Sales for the company are up 0.2% to retailers and 1.1% to wholesalers, according to the most recent earnings release.

“Imported beer brands like Heineken are unique in that they embody the traditions and craftsmanship of their native country and are created with tried-and-tested techniques that lend to the distinct character of the brews,” Faust says. “As such, consumers continue to perceive imported brands as premium when compared to many domestic brands.”

Sales for large domestic brands are down overall, as craft upstarts continue to grow market share and dominate media coverage.

“We expect import share to continue to improve as more Millennial and multicultural consumers reach legal drinking age,” Faust says. “These consumers are more likely to equate cost with quality, and as they trade up, they’re more likely to shop the upscale import segment where quality, variety and image play a key role.”

Touring the Hudson Valley

This week, I visited the mid-Hudson valley area for both work and pleasure. My wife graduated from Marist College in Poughkeepsie, so I’ve been traveling to the area since we met 10 years ago. In addition to the colorful spectacle of the leaves changing this time of year, there are numerous wineries, breweries and distilleries to visit in the area (and, I’m sure, some tourist attractions not related to the beverage alcohol industry).

Half Time's original location in Poughkeepsie features 7,000 square feet of floor space, selling only beer and cider.
Half Time’s original location in Poughkeepsie features 7,000 square feet of floor space, selling only beer and cider.

After hearing about Half Time Beverage from one of my colleagues who attended their beer festival recently, I had to stop by the store to see for myself what a store of that size that sells only beer and cider looks like. You’ll be hearing more about Half Time in an upcoming issue of Beverage Dynamics – the owners’ story is unique and fascinating.

The view of Marist College, across the river, from the Walkway Over the Hudson, an old rail bridge that was converted into a pedestrian trail.
The view of Marist College, across the river, from the Walkway Over the Hudson, an old rail bridge that was converted into a pedestrian trail.

In addition to the tasting glasses, I picked up a bottle of Hudson Baby Bourbon and Cassis Liqueur at the company's Tuthiltown distillery in Gardiner.

No trip to Poughkeepsie would be complete without a trek over the Walkway Over the Hudson, a state park created on top of an old railroad bridge hundreds of feet over the river.

It’s like a supersized version of the High Line in Manhattan.

I also stopped by the Tuthilltown Spirits distillery, nearby in Ulster County. It’s best known as the source of Hudson Whiskey, but the distillery also makes wheat and apple vodkas, gin and a variety of liqueurs (some of which are only available on-site).

The 44-proof Cacao and Cassis liqueurs alone make the trip worthwhile.

In addition to the tasting glasses, I picked up a bottle of Hudson Baby Bourbon and Cassis Liqueur at the company’s Tuthiltown distillery in Gardiner.

 

Chappellet 2012 Pritchard Hill Cabernet Sauvignon, New Packaging

Chappellet will release its 2012 Pritchard Hill Cabernet Sauvignon in November in new packaging.

The redesign reflects quality and the Chappellet family’s three generations of history on Pritchard Hill, the company says.

Designed by Daryl Jones, founding partner and creative director of JonesBecker, the new packaging takes its inspiration from the high-mountain, rocky landscape of Pritchard Hill. In keeping with the Chappellet family’s commitment to the environment, the packaging features a wood box made from sustainable beetle kill pine, the company says.

Inside the box, each bottle is wrapped in tissue printed with the original cartographer’s survey notes of Pritchard Hill from the 1800s. The new packaging also includes a booklet detailing the history of Pritchard Hill and Chappellet.

While the 2012 Chappellet Pritchard Hill Cabernet Sauvignon is already sold out through direct-to-consumer channels, the November 1st release date marks the beginning of allocation shipments to select trade and distributor partners.

The suggested retail price of the 2012 Pritchard Hill Cabernet Sauvignon is $150, but please note that this is special pre-release pricing.

Corazon Tequila Packaging Updates

Corazon Tequila has announced new packaging that puts the focus on quality and craftsmanship, the company says.

After five years on the market, Corazon realized that its packaging did not reflect the heritage, authenticity, quality, and status of Corazon, the company says. These spirits are crafted in the Casa San Matias Distillery in Mexico using 100 percent agave. Traditional clay ovens, proprietary yeast and oxygenation are a few of the elements utilized to create these tequilas.

The new packaging is based on that of the Expresiones del Corazon line, which are aged in barrels that previously held Buffalo Trace and Old Rip Van Winkle.

The new packaging debuted in October. Suggested retail pricing for Corazon Anejo is $39.99 for a 750-ml. bottle, Reposado is $34.99 and Blanco is $29.99. All three are 80 proof.

Boodles Mulberry Gin

Boodles Gin – a London Dry Gin – pays homage to the popular mulberry tree that is seen throughout the English countryside with the brand new Boodles Mulberry.

This mulberry gin will be available for a limited time this holiday season. The suggested retail price is $28.99 for a 750-ml. bottle.

The flavor is mulberries with notes of raspberries and currants, the company says. Boodles Mulberry is ideally enjoyed with champagne, whiskey or in punch, and pairs well with cinnamon, sage, mince pies, christmas pudding and traditional turkey.

Van Winkle Bourbon Annual Release

The annual release of the Van Winkle bourbons will begin in November.

PappVanWink20yrUnfortunately, the company says, the angel’s share was worse this year than in past, meaning lower whiskey yields in 2015.

“The result is less 15 year-old Pappy Van Winkle than usual, and far less 20 year-old and 23 year-old,” said Kris Comstock, Van Winkle bourbon marketing director “Frankly, about half as much as last year.”

The highly coveted Van Winkle collection consists of several whiskeys. Suggested retail prices are:

  • $49.99 – Old Rip Van Winkle Handmade Bourbon 10 Year Old 107 proof
  • $59.99 – Van Winkle Special Reserve Bourbon 12 Year Old
  • $99.99 – Van Winkle Family Reserve Rye Whiskey 13 Year Old
  • $79.99 – Pappy Van Winkle’s Family Reserve Bourbon 15 Year Old
  • $149.99 – Pappy Van Winkle’s Family Reserve Bourbon 20 Year Old
  • $249.99 – Pappy Van Winkle’s Family Reserve Bourbon 23 Year Old

“Although a lot of retailers charge more than our suggested pricing, we are not asking them to do so,” said Julian Van Winkle, president, Old Rip Van Winkle Distillery. “We have not raised prices and do not intend to do so drastically in the future.”

The Van Winkle line of whiskeys has won a multitude of awards through the years, including the 15-year-old being named “Excellent/highly recommended” in the 2014 Ultimate Spirits Challenge; the 20 year-old awarded “Extraordinary/ultimate recommendation” in the 2013 Ultimate Spirits Challenge; a double gold for the 20 year-old in the 2014 San Francisco World Spirits Competition; and the Chairman’s Trophy and “Extraordinary/Ultimate Recommendation” for the 20 year-old in the 2015 Ultimate Spirits Challenge.

Supplies are quite limited and bottles will be hard to find in stores, bars and restaurants. They will be packed three bottles per case.