TheRumLab Industry Newsletter Week #16 of 2024
The Rum Lab
TheRumLab - Our main focus is Rum Education. We do so through our digital magazine, events, infographics, and more.
MARIE EL HANAFI Ron Millonario, Global Brand Ambassador.
It’s fascinating to see how Ron Millonario, originally a family rum intended for a small community, was able to conquer the European market thanks to the initiative of Fabio Rossi, the creator of the brand and Rum Nation. This demonstrates how passion can transform a local tradition into international success. ?
TRL: Who is Marie El Hanafi?
My name is Marie. You can also call me Maria or Zee Bat (I love Batman).
I was born and raised in France, but my parents have diverse origins and I grew up immersed in various cultures from around the world. I believe this diverse background is a real advantage in my profession, as it allows me to better understand the diverse universe of rum. I am 33 and a mom of 2 kids.
Balancing a career that takes me to too many markets while being a mom isn’t easy every day. It’s a daily challenge that requires a lot of organization!
I started bartending 10 years ago. I quickly became a bar manager, and my curiosity about ingredients and cocktail structure led me to work for some spirits companies. Eventually, I was recruited by Rossi&Rossi to become their Brand Ambassador for Ron Millonario. I also provide support to Rum Nation in certain markets. ?
TRL: What does the rum mean to you? What made you fall in love with rum and when did it happen?
I wasn’t particularly interested in rum…
My first love is whisky! Ahah
I learned about rum and fell in love with it while working in the industry and interacting with these incredible people around me. Today, rum represents a big family. Lots of knowledge and innovation. A world of passion and share. Serious and fun at the same time.
Working for rum is a unique sensation. ?
TRL: Three essential characteristics that define the rum according to your perspective.
There are so many things to mention... I would say: alcohol, aging, and refining (sugar content, reduction, etc.). ?
TRL: What is the most important contribution you have made to the rum industry?
It is not too much yet, but I have the chance to develop both brands with the team.
I work on brand development, market research, and understanding their expectations and needs. We establish strategies and objectives. I also take part in various meetings regarding the development of our product ranges and brand universe. ?
TRL: Benefits that the rum industry has given you.
I discovered myself. I want to improve myself and learn more every day to influence this industry in the future. ?
TRL: What is your favorite place for drinking rum?
In a professional setting, I enjoy savoring a good cocktail at a bar. Being a bartender it makes sense! In a personal setting... on the beach! With some music, of course! ?
TRL: Favorite drink + Recipe
Daiquiri: - ? ? ? ? ?Rum 6cl - ? ? ? ? ?Simple syrup 1,5cl - ? ? ? ? ?Lime juice 2cl - ? ? ? ? ?+ every spicy ingredient ?
TRL: Why is it important to educate the rum consumer?
First, to remember. The traditions, the culture behind it, and the history around the rum. In a world where memory and habits are shaped by our time, it’s essential to stay rooted in the past, to remember to better transmit and preserve the roots and stakes of rum history. With over 300 years of history, it’s a precious heritage to safeguard!
Twice, to show the difference between each rum/brand and that every type of rum needs a special interest. ?
TRL: Is the commitment to sustainable development the key to success for the permanence of the rum industry in the world? Why?
I don’t know, but it is an important subject and we have to work on it seriously. ?
TRL: Who would like to meet in the rum industry? What would you say to him/her?
Lots of people… But, Lorena Vasquez.
? Lorena! I’m a big fan! Can I spend a week with you in the distillery?! ? ?
TRL: What are your next goals in the rum industry?
I would like to produce/commercialize my rum. One day… ?
TRL: What is your advice for new generations in the rum industry?
To be open-minded. To learn every day. From all the actors and in all sectors of rum and spirits in general.
Read a lot, and do a lot of research. Be curious. ?
TRL: How can people learn more about you? Website? Social media page?
I am more active on Instagram ( Zee_bat_millonario) but you can find me on Linkedin or Facebook. ?
Rampur reveals The Kohinoor Indian Dark Rum
Melita Kiely – 04/15/2024 – The Spirits Business
Indian distillery Rampur has unveiled its latest spirit: The Kohinoor Reserve Indian Dark Rum.
The new release was unveiled at the International Association of Airport and Duty Free Stores (IAADFS) Summit of the Americas trade show in Florida, US, which will run until 17 April this week.
The Kohinoor Reserve Indian Dark Rum will be rolled out internationally over the next few months, and will be available in the US, the UK, the EU, Asia, and the global travel retail channel.
The rum is made in small batches from fresh cane juice during the north Indian winter. The rum is aged in ex-Indian single malt, American oak barrels, followed by time in ex-Cognac XO casks and ex-vermouth casks.
“Crafted with meticulous care and inspired by centuries of tradition, The Kohinoor Reserve Indian Dark Rum embodies the essence of luxury and refinement akin to world-renowned Kohinoor Diamond,” commented Sanjeev Banga, president of international business at Radico Khaitan, the parent company of Rampur Distillery.
Bottled at 43% ABV, the rum will retail for RRP US$49.99 per 700ml.
Radico Khaitan was founded in 1943 and also produces Jaisalmer Indian Craft Gin.
In October last year, Radico Khaitan released a trio of Indian whiskies: Jugalbandi #3 and #4, and the 2023 edition of its Rampur Select.
The whiskies followed the launch of Sangam Indian whisky in March 2023.
Chicago Rum Fest reveals seminar schedule
Nicola Carruthers – 04/11/2024 – The Spirits Business
The eighth Chicago Rum Fest will return to the Logan Square Auditorium next weekend with a programme of tastings and seminars.
Due to be held on 20 April, the annual event will welcome rum brands from across the world, offering tastings and seminars to attendees.
Organiser The Rum Lab said the state of Illinois is one of the largest rum consumer markets in the US.
Among the participating brands are Shakara, Camikara, Santa Teresa, Renegade, Bacardi, Black Tot Rum, Monkymusk, Hampden Estate, Bounty Rum, Saint James, Worthy Park and Chairman’s Reserve.
The programme of seminars includes a 2.45pm session on ‘Transcontinental Ageing’, which explores how climate, barrel types and extensive travel are challenges for rum producers in creating distinctive flavour profiles.
Meanwhile, the importance of Puerto Rican rum to the spirits sector will be explored in a masterclass at 3.45pm.
The ‘Le Décollage – Cane Rules Everything Around Me’ session at 4.45pm will look at centuries-old styles of cane spirits.
Haitian rum will also be put into the spotlight in a seminar at 5.45pm.
The festival is split into four sessions: VIP Rum Experts, VIP Enthusiastic, trade and Rum Aficionados general admission.
The VIP Rum Experts session (1.30pm-7pm) provides two-hour early access to the event, a tasting cup and access to two VIP seminars. The VIP Enthusiastic ticket includes entry to one VIP seminar and a tasting cup, as well as early access to the event at 3pm.
The trade session will be held from 2pm to 3.30pm and includes entry to trade-focused seminars.
General admission provides entry to visitors from 4pm to 7pm.
The Rum Lab holds festivals in Miami, Dallas, New York, Los Angeles and San Francisco annually.
Acclaimed small-batch distillery StilL 630 wins top honors for rum
Emily Standlee – 04/15/2024 – Feast Magazine
Whether you take a cocktail class at its downtown headquarters or shop for its products in your favorite liquor store, St. Louis' own StilL 630 boasts an impressive lineup of award-winning spirits worth seeking out for their distinctive flavor and craftsmanship. And the small-batch distillery just added more trophies to its collection: In early spring 2024, it took home 11 medals at the 2024 American Craft Spirit Association Awards event. This time around, StilL 630's 5 Year Expedition Rum was awarded not only a gold medal, but also Best in Class - Rum for the entire craft distilling space. The distillery's Knowledge of Good Apple Brandy also took home a gold medal. ?
We recently talked to StilL 630 owner-distiller David Weglarz about his lauded operation, the crew's reaction to the award, the rum itself, and why StilL 630 is an ever-evolving testament to the city of St. Louis.
How did you and your team take the news of winning for rum?
I'm only the owner and distiller – our team does so much of the work behind the scenes. It was doubly special to have our head of sales and head librarian, Andrew Spaugh, right alongside me at the convention when our name was called for Best in Class - Rum! This is The Oscars of our industry. It was such a surreal experience that it was hard to believe – getting to go through that with the main guy I work with every single day was the absolute culmination of thousands of hours of hard work behind the scenes. It was truly special. I wish our whole team could've been there to celebrate together, but I was texting with them through the ceremony and we had phone calls afterwards. I think I speak for [all of us] when I say that it still hasn't sunk in; we're always focused on doing our best, day in and day out, and this is such an incredible honor. Amidst so many fantastic rums from all over the country and the world, it still seems surreal.
Tell us about the 5 Year Expedition Rum – how is it made?
To legally qualify for the category of Rum, the spirit must be made from sugarcane or its byproducts. Since sugarcane doesn't grow natively in Missouri, we have to source ours – but we still wanted to keep it as close to home as possible, so we source our molasses out of Louisiana. And we intentionally use Grade A Fancy Molasses – the best quality molasses – instead of the blackstrap molasses variety that is usually over-processed (or the raw sugar itself, which has lost most of its character).
We dilute down the molasses with our great St. Louis City water to lower the sugar concentration to a tolerable level for the yeast. We then ferment our molasses wash for almost ten days in order to utilize all the sugars and develop the esters – [organic compounds that react with water to produce alcohol] – and fruity compounds we are trying to concentrate. We double distill the rum on custom Missouri pot stills and then age it in our own used Expedition Rum barrel (made from Missouri Oak) for over five years.
The longer fermentation time, double distillation on pot stills and barrel aging in our local climate combine to allow the rum to develop a rich, complex flavor that blends together fruity tropical notes of banana, clove, allspice and nutmeg with the deeper, richer flavors of vanilla, tobacco and molasses. Choosing a previously used Expedition Barrel for the aging allows us to throttle back some of the oak flavor components while boosting the normal funk and esters that make it so flavorful. Bottling it at cask strength allows us to capture the full scope of the rum and give the consumer total control over their drinking experience.
What is the convention like? What do they judge on?
We look forward to the annual convention every year. We gather with old friends and make new ones in a new city, and we tour other distilleries, but it's basically the only time for us to commiserate and celebrate with the only other people in the world who truly understand the trials and tribulations of our industry. We learn from each other and the speakers, we meet vendors at the expo to find that missing piece or new idea. It's always so encouraging and inspiring.
The judging portion of the competition is always double blind and strictly professional. They bring in authors, writers, distillers and experts to judge the spirits individually based on category. Each spirit gets its own unique score: High enough scores earn medals, and those with the highest scores in each category are finally judged against each other to determine a best of Category. Class: Rum is split into several different categories (pot-still, column-still, un-aged, spiced/flavored, aged, etc.). Ultimately, the winners of the Best of Category are then tasted against each other to anoint the Best of Class winner – the best spirit in that entire class!
In your mind, how is StilL 630 important to St. Louis and vice-versa?
I founded StilL 630 with two driving ambitions: a) To make the best damn spirits possible, the spirits worthy of the greatest days of your life; and b) To contribute another positive aspect to this great city of St. Louis we call home. Our name is imbued with meaning from our geographical location to the height and width of the Gateway Arch, which is our inspiration. It stands as a testament to the Indomitable Spirit that is required to do anything great in life. And I do not know a better monument to the best part of the human spirit. That's why, at StilL 630, we make Indomitable Spirits.
StilL 630 is open to the public every Friday evening for cocktails and spirit pours from 5 to 9 p.m., no reservations required. The distillery's monthly Experimental Spirits Program releases a new spirit each month for guests to try on Fridays and give feedback on. Grain to Glass Tours are offered on Saturdays – reserve these online at the website listed below.
StilL 630, 1000 S. 4th St., Downtown, St. Louis, Missouri, 314-513-2275, still630.com
‘A More Refined Drinking Experience’: Wise Monkey’s Coffee-Infused Rum Promises a Jolt of Java Over Sweetness
Cynthia Mersten – 04/12/2024 – Rum Raiders
On Friday, Wise Monkey announced the release of its Café Rum: a coffee-infused rum that hosts a 43% ABV and is available for purchase in the United Arab Emirates, Bahrain, and Zambia. The brand additionally shared the buzzy new release will soon be hitting the shelves in London and India.
Wise Monkey Rum claims this release is the “first-ever” coffee-infused rum, and the brand chose three different types of organic beans: Arabica, Robusta and Liberica.
The brand claims its Café rum expression is lower in sugar than other coffee rums, and touts it as the perfect addition to an Espresso Martini.
Wise Monkey Rum is rapidly growing its diverse portfolio of Indian Spiced Rum, White Rum, 5-year-old Jamaican Rum, West Indies Coconut Rum, West Indies Silver Rum, West Indies Gold Rum and West Indies Spiced Rum.
The brand unveiled its Spiced Indian Rum in March, as part of a collaboration with Nirvana Works. What started as a limited release of molasses-based rum quickly became a wildly popular offering, according to the brand. Both companies agreed to make the Spiced Indian Rum a more permanent addition to Wise Monkey’s portfolio.
In a news release, Wise Monkey Rum claimed the brand’s Indian Spiced Rum paid homage to India, which is a rising region for rum production.
“This blend has been a long time in the making, and honestly, I can say it’s been worth every possible minute,” said Director of Nirvana Works Mr. Jagdeep Singh in a statement from a news release. “It’s everything we’ve anticipated and wanted to offer a crowd who’d appreciate a well-crafted spiced rum.”
US Wholesaler Data February: Inventories Still Running Hot?
Source: Jefferies
April 11, 2024?
Data from the US Census Bureau points to continued high inventory/sales in Feb. Across beer, spirits, and wine, inventory/sales increased to 1.64x in February vs 1.63x January, December 1.58x and May peak 1.66x. This remains above the 3yr average of 1.45x. As the consumption picture starts to improve, excess inventories will be digested. If growth stalls, there is a risk that shipments continue to underperform depletions.
What to do with this data? US Census Bureau provides monthly wholesale trade data for total alcohol, across beer, spirits, and wine. As a reminder, the US alcoholic beverages supply chain consists of three steps:?
(1) manufacturer to wholesaler = company shipments (STWs) - i.e., what we care about for supplier reporting;?
(2) sales from wholesaler to retailers = this data (STRs); &
(3) retailer sales to end consumers = consumer off-take. We use NielsenIQ data as a snapshot for consumer off-take trends but acknowledge that it doesn't capture the full picture, such as on-trade or independent liquor stores.?
February STR trends remained muted. US total alcoholic bevs wholesaler sales to retailers (STRs) decreased -5.7% (YoY) after Jan/Dec -6.0%/+0.7%. While the comp is slightly stronger (February +1.3% vs January +0.3% vs December +3.4%), underlying performance was subdued. STRs declined yoy c.-2.2% in 2023 across total alcoholic beverages. Within this, we believe spirits-based RTDs are outperforming other spirits/beer/wine. See our report Ready To (Not) Drink on the risk that spirits industry growth takes longer to come back until RTDs roll-over.?
Where are inventories relative to history? February inventory/sales is running at 1.64x, ahead of January 1.63x, December 1.58x and the 3yr average 1.45x but slightly below the May peak 1.66x. Inventories across beer, spirits and wine at the wholesaler level continue to run ahead of historical levels. The increase in inventory/sales ratio this month owes to a decline in STRs and a slight increase in the absolute level of inventories.?
How to think about destocking risk? Growth normalisation has resulted in volatility between shipments and depletions after the pandemic supercycle. We note that:?
(1) the data is across beer, spirits and wine, and therefore we cannot isolate sub-sectors of total beverage alcohol;?
(2) Price increases have likely led to some inventory build / lumpiness between months; & (3) If growth accelerates, high levels of inventories should be digested; however, if growth stalls, there could be a period where shipments underperform depletions.?
US Spirits: industry digesting the COVID supercycle. Market has largely come to terms with the US reset (see our DISCUS 2023 review here) as it digests three above-average growth years. DGE 1H24 results show N America sales continuing to normalise (-3%), with the timing of the recovery unclear. See our report on tequila growth normalisation here. Our de-premiumisation tracker indicates that pace of premiumisation has moderated, with some signs of downtrading.?
Wholesaler vs Nielsen. February wholesaler sales -5.7% compares to spirits +6.0% (including spirits based RTDs), beer -2.8% per Nielsen. See report here. Remember, Nielsen covers <20% of the alcohol bevs industry (c.60% independents & liquor stores) with on-trade a further 20%.?
Exposure to US. c.45% DGE profits, 40% Remy, 25% Pernod and Campari, ABI c.30%, Heineken 5%.
GRAMMY-Nominated Artist Camila Cabello Debuts as the New Global Face of BACARDí? Rum
Press Release – 04/09/2024 – Bacardí
The iconic rum brand has teamed up with the Cuban-American megastar for a new summer campaign, featuring music from her highly-anticipated new album
HAMILTON, Bermuda, April 9, 2024 /PRNewswire/ -- BACARDí rum announces pop superstar Camila Cabello as the new face of the brand, kicking off a multi-year partnership under the BACARDí global Do What Moves You platform. In her first-ever spirits collaboration, the multihyphenate artist stars in a sensational campaign spot set to her new song "I LUV IT," now available on all major streaming platforms. This is the first single off her highly anticipated fourth album arriving this summer, C, XOXO.
"I'm beyond excited to be partnering with BACARDí. I've always thought of BACARDí as the quintessential rum brand," said Camila Cabello. "To me, BACARDí is synonymous with the spirit of the Caribbean and, of course, good cocktails and a great party. The campaign we worked on is unlike any project I've done before. I can't wait for fans to experience it."
The BACARDí campaign is a celebration of the vibrant spirit of Cabello's new music and the brand's longstanding passion for bringing together community through movement and self-expression. The creative was captured by director Nicolás Méndez, Co-Founder of CANADA and a go-to director for international hitmakers including Rosalia, Travis Scott, and Tame Impala. His cinematic and irreverent vision, developed in partnership with BBDO New York, features the popstar moving to the beat of her infectious new track. Soundwaves from the song begin to pulsate from the radio onto the street, and eventually culminate in a joyous, communal block party complete with BACARDí cocktails. The choreography was brought to life by Marine Brutti, Jonathan Debrouwer, and Arthur Hare of (LA)HORDE, while Cabello's bold new looks were created in collaboration with celebrity stylist Jared Ellner, makeup artist Ash K Holm, hairstylist Dimitris Giannetos, and nail artist Tom Bachik.
The campaign celebrates Cabello's fresh-new sound and style, unlike anything fans have seen before. Beyond the new creative, BACARD? will continue to support the star through the release of her new album with a series of upcoming events and performances across the world, all featuring the I LUV IT Punch. Co-created by Cabello herself, the drink is a delicious twist on a classic rum punch, pairing BACARDí Superior with some of her favorite ingredients, including passion fruit, lime, coconut water and St. Germain.
"The BACARDí team is thrilled to partner with one of the biggest stars of today for our newest campaign," said Roberto Ramirez Laverde, Global SVP of BACARD? Rum. "Our shared Caribbean heritage and love of music are the driving forces behind this multifaceted global collaboration. Camila Cabello's electrifying energy matches perfectly with our brand DNA, which has always championed individuality and doing what moves you. This campaign is only the start—we can't wait for the world to see just how she embodies the spirit of BACARD?."
The campaign will air on global broadcast and be amplified through various social and online video channels, with additional support via out-of-home billboards and still imagery. C, XOXO will be released on global streaming platforms this summer. The full recipe for Cabello's I LUV IT Punch is below. Be sure to follow both @Bacardi and @Camilla_Cabello on Instagram to stay in the loop for more exciting campaign updates, or visit www.BACARDI.com .
I LUV IT Punch Recipe
2 oz BACARDí Superior rum
? oz St Germain liqueur
? oz Passion Fruit Nectar
? oz lime (juice of about half a lime)
1 oz coconut water
Lime wheel and toasted coconut flakes as garnish
Method: Build all ingredients into a rocks glass filled with cubed ice. Give a quick stir to combine. Garnish with a lime wheel and toasted coconut flakes.
About BACARDí? Rum – The World's Most Awarded Rum
In 1862, in the city of Santiago de Cuba, founder Don Facundo Bacardí Massó revolutionized the spirits industry when he created a light-bodied rum with a particularly smooth taste – BACARDí. The unique taste of BACARDí rum inspired cocktail pioneers to invent some of the world's most famous recipes including the BACARDí Mojito, the BACARDí Daiquiri, the BACARDí Cuba Libre, the BACARDí Pi?a Colada and the BACARDí El Presidente. BACARDí rum is the world's most awarded spirit, with more than 800 awards for quality, taste and innovation. Today, BACARDí rum is made mainly in Puerto Rico where it is crafted to ensure the taste remains the same today as it did when it was first blended in 1862. www.bacardi.com
The BACARDí brand is part of the portfolio of Bacardi Limited, headquartered in Hamilton, Bermuda. Bacardi Limited refers to the Bacardi group of companies, including Bacardi International Limited.
LIVE PASSIONATELY. DRINK RESPONSIBLY.
?2024. BACARDI AND THE BAT DEVICE ARE TRADEMARKS.
Media Contact: [email protected]
SOURCE BACARDí? Rum
Limited-edition rum celebrates Spanish roots
Staff – 04/12/2024 – Tribune Net
Tanduay commemorates 170 years of mastery at rum-making with the launch of the Tanduay Heritage, a blend of rums matured through inter-island tropical aging.
“Tanduay Heritage pays homage to our Spanish roots in rum-making, back to our founding in 1854 during the Spanish period in our history. It also represents the brand’s strive for excellence throughout the years as it is blended from Tanduay’s finest reserves from different parts of the country,” said Roy Sumang, Tanduay International Business Development manager.
Reserved rums
While Tanduay Heritage is a Spanish-style rum, it is 100 percent crafted by Filipinos and was made in the country’s different islands. It is made from the reserved rums of Tanduay’s aging warehouses in Quiapo, Cabuyao and Negros, and were column-distilled in Batangas and Negros.
The molasses used in making Tanduay Heritage also came from Negros, and the reserved rums that went into it were aged up to 19 years in oak barrels that were once used for bourbon.
For its packaging, Tanduay Heritage comes in an accordion-type gift box in black with streaks of gold, symbolizing a treasure that is being unveiled. Its bottle is also black and has a natural cork.
Tanduay Heritage
Tanduay Heritage has a dark amber color, with elegant and sweet aromas of dried tropical fruits, vanilla, oak and caramel. It has a medium, smooth and fruity body and tastes of toffee, creme caramel, pepper, oak and honey. It has a warming medium-long finish manifesting nuances of molasses cookie and raisin. ?
Only 10,000 bottles of the Tanduay Heritage were made in a one-time production. It is available only until supplies last.
“This is one of the most expensive rums that we are introducing. In the US, it will retail at around $80 and here in the Philippines, it will be around P4,000,” Sumang said.
Tanduay Heritage is now available for purchase at select local and international stores. It is also available at shots.ph .
Meet Kapil Mohan, a teetotaler and brigadier behind the success of the iconic rum ‘Old Monk’
Staff – 04/11/2024 – FE Lifestyle
Old Monk is the third-largest selling rum in the world and for many years remained in the list of the biggest Indian Made Foreign Liquor (IMFL) brand for many years.
In the world of spirits, few names resonate as deeply as Old Monk. This vatted Indian dark rum, known for its distinct vanilla flavor and smoothness, has captured the hearts of millions around the globe. Behind the success of this iconic brand stands Kapil Mohan, a retired brigadier who steered Old Monk towards international acclaim.
Not only did he created Old Monk but is also behind the creation of famous brands Solan No. 1 and Golden Eagle. Old Monk is the third-largest selling rum in the world and for many years remained in the list of the biggest Indian Made Foreign Liquor (IMFL) brand for many years.
He was the Chairperson and managing director of Mohan Meakin.
A Diversified Empire
In December 1954, Ved Rattan Mohan, the son of entrepreneur Narendra Nath Mohan, unveiled a beverage that would pay homage to the Benedictine monks he had encountered during a trip to Europe. Inspired by their craftsmanship, he created Old Monk—a unique dark rum matured in oak vats for seven years and infused with a blend of spices. This labor of love symbolized a deep appreciation for tradition and craftsmanship.
After the untimely passing of Ved Rattan Mohan, his brother Kapil Mohan took the reins of the company. Kapil’s leadership skills and unwavering pride in the product propelled Old Monk to unprecedented heights. Despite the absence of any advertising, the brand thrived solely on word-of-mouth recommendations and customer loyalty. Kapil understood that once people tasted Old Monk, they would never settle for anything less. Under his stewardship, Old Monk became the pride of India, commanding a significant market share.
Under Kapil Mohan’s leadership, the company diversified its manufacturing activities into various sectors, including breakfast cereals, fruit juices, and mineral water. However, it was the introduction of Old Monk that would forever etch his name in the annals of the liquor industry.
The Brigadier’s Legacy
Kapil Mohan’s journey began in the Indian Armed Forces, where he dedicated himself to the nation’s service. As a brigadier, he served with honor and distinction, earning the prestigious Vishisht Seva Medal for his exemplary contributions. His military background instilled in him a sense of discipline and determination that would later shape his entrepreneurial endeavors.
In addition to his military accolades, Kapil Mohan was bestowed with the Padma Shri, the fourth-highest civilian award in India. This recognition exemplified his significant contributions to society and his remarkable leadership skills.
Mohan was also a director of other group companies such as Arthos Breweries Limited, Mohan Rocky Springwater Breweries Limited, Sagar Sugars and Allied Products Limited, R. R. B. Energy Limited and Solchrome Systems India Limited. He was a PhD and a former managing director of Trade Links Private Limited (1956-1966).
Beyond Business:
Kapil Mohan’s contributions extended beyond the realm of business. He served as the chairman and managing director of the Narinder Mohan Hospital in Ghaziabad, exemplifying his commitment to healthcare and welfare. Furthermore, he played a crucial role as a patron of the General Mohyal Sabha, an apex body representing the Mohyal community. His multifaceted involvement in various Indian companies further showcased his versatility and expertise.
While Kapil Mohan sadly passed away in 2018 due to a cardiac arrest, his legacy and the spirit of Old Monk continue to thrive. The day-to-day operations of the company now rest in the capable hands of his nephews, Hemant and Vinay Mohan. With their guidance, Old Monk remains a symbol of craftsmanship, authenticity, and the power of a loyal customer base.
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Top 10 countries with the highest alcohol consumption
Lauren Bowes – 04/11/2024 – The Spirits Business
New data has revealed that Germany, Ireland and Spain consume the most alcohol in terms of litres of pure alcohol per capita.
A study by ProVape.com investigated the ‘bad habits’ of 50 countries, including alcohol consumption, cigarette usage rates and drug use rates.
Germany topped the list for alcohol consumption, with the country’s drinkers averaging 12.79 litres per person a year. Ireland followed with 12.75 litres, with Spain close behind at 12.67 litres.
Despite its reputation for binge drinking, the UK just scraped into the top 10, with the average Brit consuming 11.45 litres per year. The US featured at 20th place, averaging 9.97 litres.
The highest-placing non-European country was Australia, at 17th place with an average consumption of 10.36 litres.
The countries that consumed the least alcohol were Brunei and Oman, both totalling less than a litre per capita – perhaps unsurprisingly, considering the sale of alcohol is prohibited or severely limited in both countries.
Here are the top 10 countries with the highest alcohol consumption per capita.
Germany (12.79 litres)
Ireland (12.75 litres)
Spain (12.67 litres)
Luxembourg (12.45 litres)
France (12.23 litres)
Slovenia (12.11 litres)
Portugal (12.09 litres)
Austria (11.93 litres)
Poland (11.89 litres)
United Kingdom (11.45 litres)
The World Health Organization (WHO) reported that alcohol consumption in Europe was declining in January this year.
Last year it was revealed that California was the US state that consumed the most alcohol.
The 10 Most Popular Cocktails In The U.S.—According To NielsenIQ Data (Excerpt)
Staff – 04/11/2024 – Forbes
When it comes to their favorite cocktails, drinkers in the U.S. are wasting away in Margaritaville.
The margarita was the best-selling cocktail of 2023, according to exclusive data from NielsenQ (NIQ). This isn’t a surprise, as the tequila-powered frozen (or shaken) concoction that helps us hang on has been the most popular cocktail in the U.S. since 2015, the first year NIQ began tracking this category.
The best-selling cocktails were determined based on data compiled from a representative sample of more than 10,000 restaurants and bars. “It is balanced with approximately 50% independent outlets and 50% chain outlets; 75% of which are dining-centric and 25% drinking-centric,” Andrew Hummel, the director of BevAl Vertical NIQ, told me via email.
Other cocktails in the top 10 for 2023 include classics such as the martini, mojito, old fashioned and Long Island iced tea, as well as the espresso martini, the current “it” cocktail. Another best-selling mixed drink, the spritz, saw the biggest increase in popularity year-over-year.
“The average (median) cocktail price rose to $13 in 2023 up from $12 in 2022,” Hummel noted, but despite that, the quantity of cocktail purchases was up 6% in the final three months of 2023 compared to 2022.
Here is a rundown of the best-selling cocktails in the fourth quarter of 2023. This gives the closest approximation of what drinkers are currently looking for, but there are some seasonal variations inspired by warm-weather drinking habits to consider. For instance, last summer, the mojito occupied the third instead of sixth slot in the ranking, and the Pi?a Colada was the 10th best-seller before being unseated by the Bellini once the weather cooled.
Liquor Stocks Run Dry in Russia as Bacardí Reportedly Divests Following Years of International Pressure
Staff – 04/12/2024 – Rum Raiders
According to local reports, spirits company Bacardí has begun winding down operations in Russia following years of backlash and accusations of war profiteering.
Russian outlet Oreanda News claims that supplies of Bacardí Rum, Grey Goose Vodka and Patron Tequila — all owned by parent company Bacardí Limited — have begun drying up across the country.
Though Bacardí is apparently divesting due to the Russo-Ukraine War, a handful of its brands remain in the country. Bacardí has reportedly continued importing Italian-made Martini vermouth and sparkling wines “due to the country’s more loyal attitude towards Russia,” says Oreanda. Other imprints like Dewar’s Whiskey and Oakheart Rum continue to be manufactured locally.
The relationship between Bacardí and Russia has notoriously ebbed and flowed since the invasion of Ukraine in 2022.
At the onset of the war, Bacardí publicly condemned the attacks while pledging to halt all exports and investments to Russia. The message was quickly muddied; language surrounding a pause was removed from the press release within weeks as the company reportedly began hiring new employees across the country. By the end of 2022, Bacardí reported an 8.5% rise in annual revenue throughout Russia.
The abrupt reversal led the Ukrainian government’s National Agency on Corruption Prevention to declare Bacardí a “war sponsor.” Despite international pressure and rumors of a boycott, the pros of remaining in Russia appeared to outweigh the cons for the spirits giant.
As industry regulars like Heineken, Pernod Ricard and Diageo divested from the Russian market, a lucrative opportunity arose for brands that chose to stay.
Campari Group, the owner of Aperol, Espolon Tequila and SKYY Vodka, followed a similar trajectory to Bacardí. The company initially pledged to “reduce business to the bare minimum necessary to pay the salaries of our colleagues” at the beginning of the invasion. By the end of the year, domestic sales had reached new heights of around $110 million.
Time will tell whether Bacardí Limited — the largest privately held, family-owned spirits company in the world — can maintain its promises in Russia.
Status spirits set to overcome short-term headwinds
Staff – 04/15/2024 – The IWSR
IWSR analysis shows that status spirits growth will be spearheaded by the US and Travel Retail
Status spirits continue to outperform the global spirits category, and will be boosted further by the resurgence of the travel retail channel in the coming years – despite concerns about the current fragility of the global economy.
More than 80% of the value of the status spirits sector – defined by IWSR as products priced above US$100 per bottle – was accounted for by high-end baijiu sales in China during 2022, reflecting the local spirit’s importance to banqueting and gifting in the country.
If baijiu is excluded, status spirits remain heavily reliant on China, the US and duty free for more than two-thirds of their revenues, although the appetite for high-priced spirits is gaining momentum in new territories as well.
Meanwhile, core categories Cognac and Scotch whisky continue to dominate the higher price echelons, accounting for a combined 78% of global status spirits sales by value, despite big gains in the past few years for agave spirits, and the promise of emerging segments such as Irish and US whiskey.
“We continue to be broadly optimistic about the future of status spirits, but expectations were scaled back during 2023, reflecting a less stable economic outlook globally,” says Guy Wolfe, Head of Status Spirits Insights, IWSR.
“Travel retail share will grow as the channel continues to recover post-pandemic, and this resurgence is expected to shape category growth in the short term, providing a boost to those with a bias towards the channel, such as Cognac and blended Scotch.”
Global travel retail and the US market are expected to spearhead status spirits growth to 2027: IWSR forecasts indicate that revenues in duty free will more than double (+115%) between 2022 and 2027, with the US growing by +50% over the same timescale. Meanwhile growth in China will be steadier with a total value increase of only +10%, in part due to a shift from domestic purchases back to duty free as affluent Chinese consumers start travelling again in greater numbers.
That would make travel retail the most lucrative market for status spirits by 2027, with a value share of more than 25%, slightly ahead of China (24%) and the US (23%).
“In the US, the post-pandemic on-trade recovery has been less pronounced than expected, but consumers are instead upgrading to higher-end products to enhance at-home experiences. Tequila remains very much in fashion at a status level, and will take more share in the next five years” explains Adam Rogers, Research Director for North America.
The resurgence of travel retail will have a knock-on effect on category growth, boosting the fortunes of channel staples Cognac and blended Scotch. IWSR forecasts show that status-level blended Scotch revenues will grow by +83% in absolute terms between 2022 and 2027, ahead of agave (+77%), while Cognac’s sales are expected to rise by +28% over the same timescale.
“Nearly 60% of high-end Cognac growth will come from GTR between 2022 and 2027,” explains Wolfe. “It’s expected that the channel will account for almost one-third of global status Cognac sales by 2027.
Travel retail’s recovery is also behind the improved forecast for blended Scotch, while the US and Mexico are expected to remain the key markets for status agave spirits. Status mezcal sales are forecast to double in five years, from a smaller base.
The upbeat outlook illustrates the long-term potential of status spirits, despite immediate economic headwinds and a much tougher trading environment during 2023, impacted by inflation, and economic and geopolitical uncertainty.
“The traditional maxim of ‘the higher the price point, the higher the growth’ is no longer a given, as auction prices start softening and some reserve prices go unmet,” says Wolfe. “But, in the longer term, there is optimism that the direction of the market will continue upward.
“The pockets of growth we see among buyers and collectors in Tier 1 cities in developing markets indicate that the audience for high-end products is both growing and broadening. Middle-class expansion continues in China, India and neighbouring markets in the APAC region, increasing the pool of buyers.”
Meanwhile, in western markets, the tendency to buy ‘less but better’ is widely embedded and, coupled with the evolution of premium at-home drinking and entertaining, is encouraging consumers generally to upgrade their choices.
Should Alcoholic Beverages Have Cancer Warning Labels?
Ted Alcorn – 04/10/2024 – NY Times
Ireland will require them starting in 2026, and there are nascent efforts elsewhere to add more explicit labeling about the health risks of drinking.
Fifteen words are roiling the global alcohol industry.
Beginning in 2026, containers of beer, wine and liquor sold in Ireland will be required by law to bear a label in red capital letters with two warnings: “THERE IS A DIRECT LINK BETWEEN ALCOHOL AND FATAL CANCERS” and “DRINKING ALCOHOL CAUSES LIVER DISEASE.”
The requirement, signed into law last year, is backed by decades of scientific research and goes much further than any country has thus far communicated the health risks of alcohol consumption. It has sparked fierce opposition from alcohol businesses worldwide, but it is also inspiring a push in some other countries to pursue similar measures.
“It’s an important step,” said Dr. Timothy Naimi, the director of the Canadian Institute for Substance Use Research at the University of Victoria. “People who drink should have the right to know basic information about alcohol, just as they do for other food and beverage products.”
In Thailand, the government is in the final stages of drafting a regulation requiring alcohol products to carry graphic images accompanied by text warnings such as “alcoholic beverages can cause cancer,” according to The Bangkok Post.
A bill has been introduced in the Canadian Parliament that would require labels on all alcoholic beverages to communicate a “direct causal link between alcohol consumption and the development of fatal cancers.”
Last week, the Alaska State Legislature held a committee hearing on a bill that would require businesses selling alcohol to post signs carrying a cancer warning.
Norway, which already heavily regulates the sale of alcohol, is developing proposals for introducing cancer warning labels. The country’s state secretary, Ole Henrik Krat Bjorkholt, who followed Ireland’s effort with great interest, said in an interview, “I think it’s probable that we will implement something similar.”
Ireland has been a trailblazer in setting aggressive public health policies before. In 2004, it became the first country to ban smoking in indoor workplaces, including bars and restaurants, a policy since adopted in over 70 countries. The warning label requirement for alcohol could be the start of a similar change in how beverages are packaged, and a vehicle for raising awareness about the dangers of drinking, ?however small the amount.
A long fight
The evidence linking drinking and cancer is well established. In 1988, the World Health Organization’s International Agency for Research on Cancer concluded that alcohol is carcinogenic to humans. Research in the decades since has only strengthened the conclusion, including for breast, liver, colorectal and esophageal cancers. In November, the W.H.O. and the I.A.R.C. declared in a joint statement: “No safe amount of alcohol consumption for cancers can be established.”
Despite this, the connection between alcohol and cancer isn’t well known. In the United States, a recent nationwide survey found that about one in three Americans was aware that drinking increased the risk of cancer.
Globally, only a quarter of countries require any kind of health warning on alcohol, according to a recent study, and the mandated language is generally imprecise. The United States last altered its warning labels in 1989, when it introduced language that discouraged drinking during pregnancy, or before driving or operating heavy machinery, and that vaguely acknowledged that alcohol “may cause health problems.”
It took over a decade for Ireland’s labeling requirement to become a reality, according to Sheila Gilheany, ?chief executive of the advocacy organization Alcohol Action Ireland, who described it as “the most contested piece of legislation in Irish history.” She said that the effort began in 2012, when a steering group assigned to address the country’s high rate of alcohol-related deaths recommended a raft of measures, including warning labels.
Many of the recommendations were watered down by the time they became law in 2018, but the labeling requirement made it through unscathed. It took another four years for lawmakers to hammer out the specific wording and the design that would be required.
As those details were decided, alcohol companies stepped up their protests. In late 2022, a group of major alcohol-exporting European countries submitted formal objections to the European Commission, the European Union’s executive branch, arguing that Ireland’s labels impeded free trade and were not appropriate or proportionate to the objective of reducing alcohol’s harms.
When the commission raised no objection, Antonio Tajani, Italy’s foreign minister, called the Irish proposal “an attack on the Mediterranean diet.” The language in the labels “doesn’t take into account the difference between moderate consumption and alcohol abuse,” he said on Twitter.
Coordinated industry opposition
Alcohol businesses are fighting on multiple fronts to keep the Irish labeling requirement from taking effect. At committee meetings of the World Trade Organization in June and November, trade groups and eleven alcohol-exporting countries, including the United States, expressed concerns, questioned the scientific validity of the cancer warning and argued that Ireland’s labels would infringe on free trade.
In comments submitted to the World Trade Organization, the Distilled Spirits Council of the United States called the labels “inaccurate” and “misleading.” The group also suggested that “this important public health objective would be best managed” as part of a parallel effort to address cancer in the European Union, an area where the alcohol industry has proved to have greater influence.
The European Commission was supposed to propose language for alcohol health warnings as part of the its Beating Cancer Plan by the end of 2023 but failed to meet that deadline. In December, over the objections of the World Health Organization, the European Parliament approved a report that did not affirm the need for warning labels, instead calling for information on “moderate and responsible drinking.”
In the final report, its authors repeatedly watered down language about alcohol’s role in disease, narrowing warning only about “harmful” or “excess” ?of consumption.
Size and design
Cormac Healy, the director of Drinks Ireland, a trade group, said that his organization wasn’t entirely utterly opposed to health warnings. But he said that the mandated size of the labels would be impractical for use on smaller products, picking a 50-milliliter bottle up from his desk to demonstrate. And the warning language itself was “disproportionate and inaccurate,” he said, and primarily geared toward scaring people.
“To inform, to educate — you can’t really do that on a label,” he added.
In the United States, alcohol warning labels are typically on the back of the bottle or can, where they blend in with other graphic features. Dr. Marissa Hall, an assistant professor in the department of health behavior at the University of North Carolina at Chapel Hill, said that the labels would be more effective at catching a purchaser’s eye if they were on the front, included an image or icon, and featured one of a rotating group of brief messages.
Dr. Hall recently received a grant from the National Institutes of Health to test the impact of stronger design features. When she tells friends about her research, many are surprised to learn the United States requires warning labels at all, she said, because the existing ones so easily go unnoticed.
“They have no idea,” she said.
In the last 15 years, a few countries have proposed stronger alcohol warning labels, but each has been met with fierce opposition, said Paula O’Brien, a professor of law at the University of Melbourne. In 2010, Thailand proposed requiring a rotating group of warnings accompanied by graphic color imagery; O’Brien called it “the high-water mark for alcohol labeling.” But at the World Trade Organization, other countries raised concerns that the labels would restrain free trade, and the measure stalled.
In 2016, South Korea overcame similar objections to mandate a group of warning labels, some of which link alcohol with cancer, that alcohol makers can choose from to put on their products.
Even research on the topic has been contentious. In 2017, Yukon, a sparsely populated territory in northwest Canada, forged a partnership with scientists to introduce and test the impact of brightly colored warning labels, one of which included the phrase “alcohol can cause cancer.” But after alcohol trade groups complained, the local government paused the study out of fear it would face a lawsuit that it could not afford to fight.
“I was a bit surprised about the strength of the reaction,” said Dr. Erin Hobin, a scientist at Public Health Ontario who led the project in Yukon.
When the researchers resumed the study several months later, on the condition that the cancer warning be omitted, they found that people buying alcoholic beverages featuring the labels were still more likely to notice the messages, and reported reducing their drinking. Sales of products carrying the labels also fell by around 7 percent during the intervention and several months that followed.
Most importantly, Dr. Hobin said, as drinkers grew more informed about the link between alcohol and cancer, they also became more likely to support policies for controlling alcohol availability, pricing and marketing, which have been shown to reduce drinking even more.
If the alcohol industry dissuaded the European Union from adopting warning labels, it would keep Ireland isolated and out of harmony with European law. That ?could ultimately form a basis for challenging the labeling requirement in Irish courts, said Dr. Ollie Bartlett, an assistant professor of law at Maynooth University in Ireland. But he said that such efforts were unlikely to prevail because Ireland’s alcohol warning labels are “proportionate to the objective of protecting public health.”
Observers say the European Union isn’t likely to take any further action until after parliamentary elections this summer. And there’s no indication that Ireland will retreat from its commitment to require the labels starting in May 2026.
Dr. Gauden Galea, a strategic adviser at the World Health Organization, said he was confident that broader labeling efforts would eventually succeed. At 63, he’s old enough to recall how cigarette companies once advertises on the front pages of newspapers, he added.
Eventually, he hopes, “People will not remember the time when you needed a warning on pesticides, but could sell an unlabeled carcinogen like alcohol with impunity.”
Health risks should be discussed with evidence from all sides
Staff – 04/10/2024 – Irish Liquor Lawyer
In a recent piece by New York health advocates, they went after any proposed consumer friendly changes to the New York liquor system. They stated that “any efforts to expand alcohol access in the name of consumer convenience, or private profit, should be suspended indefinitely.”
They attempt to strengthen their position by relying on stats that alcohol related deaths increased 29% from 2017 to 2021. In their opinion “ Legalizing alcohol shipping direct to the home will not only pour gas on the fire that is threatening public health, but it will also contribute to increased underage consumption.” They further rely on regulator reports from South Carolina, Tennessee, Oklahoma, Texas, Massachusetts, and Vermont, which show that wine packages were delivered without age verification.
Next, they take aim at cocktails-to-go, while citing to a federal study that indicates cocktails-to-go contributed to spikes in alcohol consumption.
Finally, they stated that allowing shipping to homes and allowing wine in grocery stores, will lead to increase sales and consumption and will be a threat to women and adolescent’s health.
The claims analyzed
If we are going to have a sincere discussion about the health impacts of alcohol and whether more avenues of obtaining alcohol should be shut off, then we need to perform a more thorough analysis.
Let’s look at some of the claims the CDC report they cite makes. The CDC, which lost a lot of credibility during COVID, states that during the peak of COVID years there was a 23% increase in the number of deaths from alcohol abuse. The report discusses what the CDC believes are the symptoms of the problem.
“During the peak of the COVID-19 pandemic in 2020–2021, policies were widely implemented to expand alcohol carryout and delivery to homes, and places that sold alcohol for off-premise consumption (e.g., liquor stores) were deemed as essential businesses in many states (and remained open during lockdowns). General delays in seeking medical attention, including avoidance of emergency departments**** for alcohol-related conditions????; stress, loneliness, and social isolation; and mental health conditions might also have contributed to the increase in deaths from excessive alcohol use during the COVID-19 pandemic.”
The CDC makes the claim about to-go-cocktails helping contribute to an increase in alcohol abuse without any data to back up their assertions. Finally, they take aim inadvertently at government shutdown policies, which coincided with the worst years in alcohol abuse numbers. But somehow, they can’t bring themselves to study whether causation exist between the COVID lockdowns and deaths from alcohol abuse.
Next, the article takes aim at DTC shipping. Specifically, how it will put alcohol into the hands of adolescents and how state stings have uncovered minors ordering alcohol and a lack of age verification by common carriers.
First, minors are not utilizing the internet to purchase alcohol. The Supreme Court concluded this in 2005 in Granholm and a recent VinoShipper study with extensive data proved this out. Second, the stings where minors have purchased alcohol online, do not reflect the reality of things, as the VinoShipper study demonstrates. These artificial setups do not account for that minors would need to utilize their parents credit card to purchase, which is a big deterrence for purchasing online, and they would need to wait for days and hope they are not age verified by the common carrier driver.
As for recipients not being age verified, often times if someone looks well above 21, whether it is in the store or at the door, they are not going to be age verified. ?It is common sense looking like Uncle Jesse from the Dukes of Hazzard almost guarantees you won’t be carded.
Finally, their claim that allowing increased shipping and wine in grocery stores will lead to health threats, seems more aimed at protectionism. There is no hard data to back this point up. Many states over the years have increased avenues on where you can purchase alcohol, and some have expanded the days in which you can purchase alcohol. Neither of these openings has led to significantly adverse impacts on society. Winery shipping increased since Granholm, no evidence was presented that direct wine shipping led to excessive alcohol abuse.
This seems aimed at stopping the expansion out-of-state wine retailer and supplier shipping and aimed at allowing the sale of wine in grocery stores.
Conclusion
Alcohol abuse is a serious matter, which deserves a serious discussion. However, any position which aims to stop advancement should provide data to support its conclusion. Doing otherwise does a disservice to everyone involved.
Drizly is gone: What happens next in US alcohol ecommerce?
Staff – 04/10/2024 – Beverage Daiy
The closure at the end of last month leaves a hole of nearly half a billion dollars in online alcohol sales in a market that has been evolving fast over the past few years. What other platforms will brands and consumers turn to - and what is the secret to success in the market?
Why the interest in alcohol ecommerce?
The pandemic pushed alcohol ecommerce into the limelight: growing 31% CAGR between 2019 and 2021, according to IWSR figures. That’s since naturally slowed as the market matures: but market analysts still project a 2022-27 value CAGR of 4.5% for 2022-2027.
That places the overall ecommerce value share of total beverage alcohol at around 4% or 4.5% of the total beverage alcohol market. And - seeing it as a trend here to stay - companies are increasingly willing to make the investment in infrastructure to sell online.
Drizly was a success story in the industry – and very much in the right place at the right time when it came to the pandemic (increasing from 1,250 retailers in mid-2019 to around 4,000 by the end of 2020: and growing sales 274% yoy to reach $1.17bn in 2020). By the start of this year, it covered 1,400 cities with a reach to more than 100 million customers across the US and Canada.
As an online marketplace, Drizly did not own a liquor license or own inventory: but acted as a platform where retailers could sell their products online. That meant making money from retailer fees, gathering data, and advertising revenue (Instacart, ReserveBar and Vivino also use this model).
The model worked in a similar way to food delivery platforms: users can browse products, pick their drinks and choose which stores they want to get them from. The store would then carry out delivery in under 60 minutes.
But in January, Uber announced it was closing down the platform.
Up to now, Instacart and Drizly have been by far the largest players in the market (in 2021, they had around an 86% market share together, according to Rabobank estimates).
Uber hopes it can simply shift Drizly consumers over to Uber Eats: saying customers will value the convenience of a ‘one stop shop’.
(Despite Drizly’s popularity, it still did not touch the size of Uber Eats: Drizly's app had some 1 million downloads on Google Play, compared to Uber Eat's 100 million plus.)
Ecommerce software company MikMak, however, sees these consumers being distributed between multiple ‘quick commerce’ checkout options like Instacart, Uber Eats, Doordash, GoPuff and ReserveBar.
With 1 in 10 US consumers ordering alcohol delivery over the past six months, it recommends brands consider these retailers when planning ahead.
In its analysis of the US ecommerce landscape, MikMak uses a metric called ‘purchase intent clicks’ to measure a number of times a shopping clicks through to at least one retailer during a single-session. In 2023, Drizly came out on top, with 41.2% of purchase intent clicks, compared to the top five alcohol retailers at the time.
So where will that traffic relocate? According to the MikMak shopping index, Instacart is the next leader for alcohol retailers right now (40.3% of purchase intent clicks); followed by Total Wine (24.3%), then Walmart (22.9%), Minibar (8%) and Kroger (4.5%).
“We also expect other retailers with last-mile delivery options similar to Drizly, such as GoPuff, Uber Eats, Reserve Bar, and Doordash, to be key players when alcohol shoppers select their new go-to retailers,” says the company in its analysis.
What Drizly did well
Drizly's value came from the fact it had spent a decade building up a marketplace of local retailers, building up a network of mainly independent liquor stores.
"Drizly always offered consumers an exceptional shopping experience," said Bourcard Nesin, beverages analyst at Rabobank. "Their alcohol-only focus meant that they were just better at selling alcohol than their competitors, allowing shoppers to easily compare prices, sort products by alcohol-specific criteria like price, country, and varietal, and allowing alcohol manufacturers to manage their product detail pages. The latter contributed to a superior, clean-looking website."
The fact is that Drizly's closure has left a big hole in the market, he continues.
“Make no mistake, shutting down Drizly is not good for alcohol brands,” he said. “Nearly half a billion dollars in online alcohol sales disappeared overnight."
Retailers may now be cautious of turning to platforms with high transaction fees and consumer experiences that don't live up to Drizly, he said.
“Some retailers will turn to lower-cost and operator-centric white label providers, like City Hive, to maintain an online presence. Others will simply stop selling online.”
What does the future ecommerce market look like?
Getting ahead in ecommerce requires understanding who the top consumers are and why they turn to the platform.
Online consumers in the US are skewed towards men, millennials, those on higher incomes and people with broader alcohol repertoires, explains Adam Rogers, Research Director for North America, IWSR.
Challenges to alcohol ecommerce
While speed of delivery is key for some consumers, not all are prepared to pay for this. High delivery charges are one of the top challenges for the category's growth, says Rogers.
And while online shopping gives dedicated consumers the chance to research and compare, other consumers still simply prefer the experience of shopping in store.
"Buying online is mainly driven by personal treats and replenishment," he said. "Online buyers favor ecommerce for gifts and special offers. There is demand for broad selections and rare drinks, with a notable increase in preference for buying craft drinks online. Ecommerce generally involves buying more expensive alcohol, with millennials spending most, especially on whisky."
What's all the more important is the high engagement online consumers have: being prepared to spend the time and effort into searching out what they buy.
"Research plays a crucial role in the online buying process, with personal recommendations and brand websites significant sources of information," said Rogers.
Speed of delivery is also important to online orders: with more than three-quarters of online buyers shopping with a specific time frame in mind, with a same day delivery considered to be important, according to IWSR research.
Gopuff is an instant commerce platform with this focus on speed: delivering thousands of items (including alcohol, but also including everything from snacks to soft drinks and fresh grocery goods) in as little as 30 minutes. That represents something that customers ‘greatly value’, according to Daniel Folkman, SVP at Gopuff.
The company is ready to make the most of Drizly's closure: currently running a promotion on alcohol orders from new customers on the platform.
“At this moment in time, we see a great opportunity to show new, potential consumers that there is great value in leveraging our Gopuff services, both through Gopuff and BevMo! by Gopuff,” he said.
Unlike Drizly, the company has its own licence and delivers directly to consumers from hundreds of local micro-fulfillment centers. In 2020 it acquired BevMo!, a specialty beverage retailer on the West Coast which also sells online.
What today’s customers are looking for is convenience and value, continues Folkman.
“We know consumers are looking for a few key elements when it comes to buying alcohol, whether that’s in-store, for pickup, shipping or delivery.
"The first is convenience. Customers want to be able to access all of their needs in one place, from wine and beer to snacks and home essentials.
"Second, is value. As inflation continues to impact daily life, customers are looking to get the biggest bang for their buck whenever they’re shopping, and this is also true in the alcohol category. And finally, speed. All customers, particularly the younger generations, are demanding faster and faster delivery of the things they want.
Wine
A specific area of Gopuff alcohol e-commerce that has seen growth is Gopuff wine orders: with a 20% increase in sales across Gopuff wine deliveries over the past year.
“So, rather than getting their wine delivered and then running out for snacks, making multiple trips to prepare for a dinner party, or paying multiple delivery fees for separate orders, customers prefer a single shop where they can get everything they need quickly.
"This is what saves them time in their lives, makes life easier, and saves more time visiting the store.
"Consumers increasingly seek faster and faster access to the products they need, greater convenience and value. Instant delivery is here to stay.”
Until the next newsletter!
Federico Hernández - The Rum Lab