TheRumLab Industry Newsletter Week #24 of 2024
The Rum Lab
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ANA MARíA RAMOS BAQUERO Director of the Program Rums of Puerto Rico.
During the 17th century, the rum industry grew throughout the Puerto Rico Island. Fast-forward to today and the Rums of Puerto Rico are enjoyed all over the world. To ensure that each batch meets the high-quality standards, the Government of Puerto Rico has established distillation and aging process laws, including having to be produced on the Island. Rums of Puerto Rico is a program that elevates the rum industry in the "Isla del Encanto". Ana María Ramos Baquero is the Director of Rums of Puerto Rico. Let's know more about her in this interview! ?
TRL: Who are you?
I am a Marketing and Public Relations professional with extensive experience in both the private and public sectors. In addition to serving as the Director of the Program Rums of Puerto Rico, I also work as the Chief Marketing Officer (CMO) at the Department of Economic Development and Commerce. I am dedicated to promoting the rich heritage and superior quality of Puerto Rican rums. Passionate about my family and daughters, I strive to make them proud through my achievements in this vibrant industry. My career is driven by a commitment to excellence, sustainable practices, and the continuous promotion of Puerto Rican culture on a global stage. ?
TRL: What does rum mean for you? What made you fall in love with rum and when did it happen?
For me, rum is more than just a spirit; it’s a symbol of Puerto Rican culture, heritage, and craftsmanship. I fell in love with rum during my first visit to a distillery in Puerto Rico, which is almost walking distance from where I live. The rich history and the vibrant flavors captivated me. And since I started at Rums of Puerto Rico, I’ve been passionate about promoting Puerto Rican rums. ?
TRL: Three essential characteristics that define rum according to your perspective.
- Complexity: The intricate flavors that develop from the different stages of production, aging, and blending.
- Heritage: The rich history and tradition behind each bottle, especially those from Puerto Rico.
- ?Versatility: Its ability to be enjoyed neat, on the rocks, or in a variety of cocktails. ?
TRL: What is the most important contribution you have made to the rum industry?
My most significant contribution has been expanding the presence of Puerto Rican rums. Through strategic marketing campaigns, partnerships, and events, we’ve increased awareness and appreciation for our premium rums in the U.S. and beyond. ?
TRL: Benefits that the rum industry has given you.
The rum industry has given me a deep connection to my heritage, opportunities to travel and meet incredible people, and the satisfaction of seeing Puerto Rican rums gain the recognition they deserve. ?
TRL: What’s another thing you are passionate about, in addition to rum? Why?
Besides rum, I am passionate about my family and my daughters. Being a part of this industry and achieving success allows me to make them proud of me, which is my greatest achievement. ?
TRL: What is your favorite place for drinking rum?
My favorite place for drinking rum is on a beach in Puerto Rico with my friends, watching the sunset. There’s something magical about enjoying a premium rum in the place where it was crafted. ?
TRL: Favorite drink + Recipe
My favorite rum drink is the classic Mojito:
- 2 oz Puerto Rican white rum
- 1 oz fresh lime juice
- 2 tsp sugar
- 6-8 fresh mint leaves
- Soda water
- Ice
Muddle the mint leaves and sugar with lime juice in a glass. Add rum, fill the glass with ice, and top with soda water. Stir gently and garnish with a mint sprig. ?
TRL: Why is it important to educate the rum consumer?
Educating rum consumers is crucial because it helps them appreciate the quality and craftsmanship that goes into making premium rum. An informed consumer is more likely to value and choose higher-quality products. ?
TRL: Any tips to train the palate and taste a good premium rum?
To train your palate, start by tasting rums neat to understand their base flavors. Pay attention to the nose, taste, and finish. Try rums from different regions and ages, and note the differences. Pair rums with food to see how flavors interact. ?
TRL: Is the commitment to sustainable development the key to success for the permanence of the rum industry in the world? Why?
Absolutely. Sustainable development ensures that we can continue producing rum without depleting resources or harming the environment. It also meets the growing consumer demand for eco-friendly products, ensuring the industry’s longevity. ?
TRL: Who would you like to meet in the rum industry? What would you say to him/her?
I would love to meet Joy Spence, Master Blender at Appleton Estate. I would ask her about her journey in the industry and how she approaches blending to create such iconic rums. ?
TRL: Why is the role of the bartender important in the rum industry?
Bartenders play a crucial role as ambassadors of rum. They introduce consumers to new brands and educate them on different ways to enjoy rum, driving demand and appreciation for high-quality products. ?
TRL: What is your advice for new generations in the rum industry?
My advice is to respect the traditions and craftsmanship of rum-making while embracing innovation and sustainability. Always strive for quality and never stop learning about the industry and its rich history. ?
TRL: How can people learn more about you? Website? Social media page.
UK spirits volumes fall 5% in 2023?
By Nicola Carruthers
June 14, 2024?
Spirits volumes declined by 5% in the UK last year, with gin falling by double digits, data from IWSR Drinks Market Analysis revealed.?
Data from IWSR revealed that total beverage alcohol (TBA) volumes in the UK dipped by 2% in 2023.?
Between 2018 and 2023, volumes fell by a compound annual growth rate (CAGR) of 1%.?
The TBA market in the UK is expected to see volume and value declines of 1% CAGR over the next five years (2023-2028).?
Looking at 2023, spirits were hit the hardest with a 5% decline, while beer saw a 2% drop and wine fell by 4%.?
Within spirits, gin experienced the biggest drop, down by 14% in 2023. The category has lost shelf space to segments such as Tequila in the past year, IWSR said.?
Agave spirits had a more positive performance, rising by 4% in volume last year, however the IWSR has noticed that growth is slowing for the category. Volumes increased at a CAGR of 13% in the five years to 2023, but are forecast to grow by a CAGR of only 2% between 2023 and 2028.?
Outside of agave spirits, a few other categories also registered growth, such as Bourbon, cream liqueurs, coffee liqueurs and spirit-based apéritifs, boosted by cocktails.?
Most other spirits categories saw their volumes tumble as consumers converted to ‘better-value long drinks’, such as beer and wine.?
Spirits are expected to register single-digit declines between 2023 and 2028, but gin will suffer heavier losses.?
Rum is predicted to witness long-term growth, although modest and focused in spiced and flavoured variants, the IWSR noted.?
Meanwhile, the ready-to-drink segment reported a 2% increase last year, driven by premium cocktails and a wider range of bottled ready-to-serve options.?
No-and-low booms?
The IWSR found that the no-and-low segment outperformed the alcohol market in the UK, due to the moderation trend and excise duty changes (drinks below 3.5% ABV are taxed at a lower rate).?
The no- and low-alcohol segment soared by 47% last year, with forecast volume CAGR of 19% (2023-2028).?
The low-and-no subcategory is expected to add value of ￡800 million (US$1 billion) gradually by 2028.?
The latest Bevtrac consumer data from IWSR found that the no-alcohol market grew by 17% in 2023 and is estimated to grow at a 4% volume CAGR (2023-2028).?
Volumes of non-alcoholic ‘spirits’ have now comfortably surpassed Tequila in the UK, the IWSR claimed.?
“Whether reflected by reining in grocery spend, reducing the frequency of on-trade visits or switching to longer drinks, seeking out better value was the overwhelming priority for increasingly cash-strapped UK drinkers in 2023,” said Patrick Fisher, IWSR senior market analyst.?
“Rising prices and the cost-of-living crisis have reduced disposable incomes for discretionary spending and, coupled with the enduring trend of moderation, as well as closures and reduced opening hours in the on-trade, this is having lasting effects on consumer behaviour.?
“The upper end of the market remains more insulated, while mainstream-and-below retail sales became more dependent on promotions.”?
The IWSR said there are now more alcohol-free dark spirit alternatives, and some Tequila substitutes, entering the market. It was previously dominated by ‘gin-style’ products.?
Global alcohol sales declined by 1% in volume last year with spirits reporting its first drop in the US in nearly 30 years, the IWSR revealed earlier this month.?
Total spirits sales also declined in Great Britain’s on-trade last year, falling by 4.6%, CGA data showed. Cream liqueurs were the only subcategory to grow in 2023, soaring by nearly a third.
4th Circ. Revives Bacardi Fight Over Expired TM Renewal?
Source:?https://www.law360.com/
June 16, 2024?
The Fourth Circuit on Thursday revived Bacardi's lawsuit challenging the U.S. Patent and Trademark Office's decision to renew an expired trademark registration for Havana Club rum, finding such registration renewals can be reviewed by the courts.?
In a published opinion, a three-judge panel ruled the Lanham Act does not prevent the courts from weighing in on trademark renewal decisions like the one challenged by Bacardi. In doing so, the panel reversed a Virginia federal judge's ruling dismissing Bacardi & Co. Ltd. and Bacardi USA Inc.'s case against the USPTO.?
The decision breathes new life into Bacardi's claims under the Administrative Procedure Act that the USPTO flouted its own regulations by renewing a trademark for Havana Club a decade after it expired.?
"Through the APA, Congress has entitled persons aggrieved by agency actions to challenge those actions in court," Judge Allison Jones Rushing wrote for the Fourth Circuit. "Following the Supreme Court's direction, we will not lightly infer that other statutes rescind that entitlement."?
Bacardi has been locked in a decades-long battle to take back ownership of the trademark for Havana Club, which is held by a company controlled by the Cuban government that does business as Cubaexport.?
According to Thursday's opinion, the Havana Club?mark?originally belonged to a Cuban family that exported rum to the United States dating back to at least the 1930s. Cuba's communist government allegedly seized the family's assets in the 1960s, and the government later registered the Havana Club?mark?for itself in 1974 when the old registrations expired, the Fourth Circuit said.?
The family later sold its interest in the Havana Club?mark?to Bacardi, which has been trying to cancel Cubaexport's registration of the?mark?since 2004, the opinion states. That long-running litigation is centered on the Trademark Trial and Appeal Board's denial of Bacardi's cancellation petition.?
The present appeal, however, hinges on a separate issue: the expiration of Cubaexport's trademark registration in 2006 when the company was unable to pay the required renewal fee due to a trade embargo. The renewal was held up for 10 years while Cuba's export business challenged the need for it to acquire a special license related to the trademark, which the U.S. government ultimately granted in January 2016.?
At that point, Cubaexport paid the fee and the then-director of the USPTO granted its renewal of the Havana Club trademark, according to Thursday's opinion.?
Bacardi challenged that decision under the APA in Virginia federal court, claiming that the registration had expired and that the director went beyond her statutory authority and acted contrary to federal law when she allowed the renewal 10 years after the fact.?
The court ultimately dismissed the suit for lack of subject jurisdiction, finding it to be a rare instance in which Congress did not intend to allow judicial review of an administrative action. Instead, the federal district court judge said the proper recourse under the Lanham Act for a third party claiming problems with a registration would be to file a cancellation proceeding.?
But the Fourth Circuit disagreed, saying there's nothing in the act that "expressly precludes judicial review of the PTO's trademark registration renewal decisions."?
In fact, the panel said, the act specifically allows aggrieved parties a right of appeal, and the only mention of renewals similarly "authorizes, rather than forecloses, judicial review."?
"It is silent about whether a third party may seek judicial review of the PTO's decision to grant a renewal application and certainly includes none of the typical language foreclosing judicial review," Judge Rushing wrote.?
The Fourth Circuit also noted there is an important distinction to be made in Bacardi's present appeal, which is not centered on an initial decision to register or cancel the trademark. If that were the case, the Lanham Act's clear procedures for cancellation might well preempt APA review, the panel said.?
But here, Bacardi specifically challenged a renewal decision, which the Fourth Circuit found to be "statutorily distinct."?
"In this lawsuit, Bacardi does not seek relief based on substantive disagreements regarding Cubaexport's right to register the Havana Club?mark," Judge Rushing said. "Nor does Bacardi ask the court to resolve the parties' competing claims over ownership of the Havana Club?mark."?
"Rather, Bacardi seeks to set aside the director's allegedly unlawful action of renewing Cubaexport's trademark registration in disregard of the statutory time limits," she continued.?
The Fourth Circuit consequently reversed the district court's order of dismissal and remanded for further proceedings.?
"Bacardi is pleased with the Fourth Circuit's opinion that its case can proceed at the district court level to prove that Cuba's ill-gotten Havana Club trademark expired in 2006 and should have been stricken from the trademark registry at that time," counsel for Bacardi told Law360 in a statement.?
A spokesperson for the USPTO declined to comment Thursday.?
Judges Allison Jones Rushing, Julius N. Richardson and Diana Jane Gribbon Motz sat on the panel for the Fourth Circuit.?
Bacardi is represented by David Meir Zionts of Covington & Burling LLP, and Michael C. Lynch and Damon W. Suden of Kelley Drye & Warren LLP.?
The USPTO is represented by its own Thomas W. Krause, Christina J. Hieber and Beth Walker, as well as Nicholas Steven Crown, Brian M. Boynton and Daniel Tenny of the U.S. Department of Justice's civil division, and Jessica D. Aber of the U.S. Attorney's Office for the Eastern District of Virginia.?
The case is Bacardi & Co. Ltd. et al. v. United States Patent & Trademark Office, case number 22-1659, in the U.S. Court of Appeals for the Fourth Circuit.
Flor de Ca?a Rum was awarded the “Environmental Initiatives Award” at the 2024 SEAL Awards
Federico J. Hernandez - 6/18/24 - TheRumLab
Flor de Caa, a prestigious premium rum brand known for its exceptional quality and unwavering commitment to sustainability, is pleased to announce that the prestigious SEAL Awards in the United States have given it the “Environmental Initiatives Award.” This acknowledgment underscores Flor de Ca?a’s leadership in advocating for environmental stewardship and cultivating a more sustainable and environmentally friendly future.
The SEAL Awards is a global, multi-industry platform that highlights trailblazing companies that lead innovative initiatives with positive environmental impacts and demonstrate measurable contributions to sustainability. Flor de Ca?a’s carbon neutral certification, the cultivation of one million trees since 2005, and its utilization of 100% renewable energy to distill its rum have been instrumental in securing this prestigious award.
Flor de Ca?a is the world’s first carbon neutral and Fair Trade certified spirit, and it is a fifth-generation, family-owned brand. It has received international recognition for its award-winning portfolio of premium rums from Nicaragua, which are aged naturally in bourbon casks without the use of artificial ingredients or sugar. Flor de Ca?a’s 12 year-old, 18 year-old, and 25 year-old rums are distinguished by their exceptional smoothness and unique flavor characteristics, which serve as a testament to the brand’s dedication to excellence.
The World’s Top Rums, According To The International Wine & Spirit Competition
Joseph V. Micallef - 6/18/24 - Forbes
Seven rums scored Double Gold medals, and 45 won Gold Medals at the 2024 International Wine and Spirits Competition (IWSC) judging of rums. Here are highlights and tasting notes on the top-ranked rums.
Rum was the first truly international spirit. Today, more than 120 countries produce rums across hundreds of different brands and thousands of different expressions.
Each region has its distinctive approach to rum production. Heavy, ester-rich molasses-based rums come from Guyana and Jamaica. In contrast, lighter, cane juice-based Agricole rums like those of Martinique and Reunion come from the former French tropical colonies. Central and South America has its own distinctive style, while lighter, more sophisticated expressions come from as far afield as Barbados, Australia, Thailand, and the Philippines.
This broad diversity in brands and producing countries showcases rum’s global appeal and variety, making it a favorite among spirit enthusiasts worldwide.
The top-ranked rum, winning 99/100 points, was?R.L. Seale (Barbados), Four Square 14 YO Equipoise Rum, 61% ABV. Seale won three of the seven Double Gold medals at the 2024 IWSC judging. If there was any doubt that Foursquare is one of the best rum producers on the planet, its impressive results at the IWSC judging should settle the matter.
Richard Seale, a Master Distiller and leading authority on the history of rum, especially in Barbados, also took Double Gold medals for?Foursquare Covenant Rum, 18 YO, 58% ABV, 98/100 points, and?Foursquare 2011 Rum, 12 YO, 60% ABV, 98/100 points.
The Foursquare Distillery was established in 1996 by the Seale family, whose rum-making heritage dates back to 1820. It is located on a former sugar plantation in St. Philip, Barbados.
Richard Seale, a fourth-generation distiller, is the driving force behind Foursquare Distillery. Known for his commitment to traditional rum-making techniques and his innovative approach to creating high-quality rums, Seale has positioned Foursquare as a leading producer in the industry.
Foursquare distillery uses both pot and column pot and column distillation and avoids additives like caramel or sweeteners. Both molasses and sugarcane juice are used in the production process. The rum ages in various casks, including ex-bourbon, sherry, and wine, to create complex and layered flavor profiles.
Foursquare rums feature nuanced complexity, balance, and high quality. Below is a general description of the aroma and taste profile commonly found in Foursquare rums.
Foursquare rums typically exhibit a rich and complex nose, with multiple layers of aromas. These aromas include vanilla and caramel, dried fruits such as raisins, figs, and apricots, baking spice notes of cinnamon, nutmeg, and cloves, and a noticeable presence of well-seasoned oak. The rums typically show subtle floral and herbal notes, although their intensity can vary dramatically depending on the specific expression.
On the palate, these rums are smooth and full-bodied. The dominant notes are caramel and toffee, which provide sweetness and texture. There are additional dried fruit notes of raisins, figs, and dried apricots, as well as slightly bitter dark chocolate, coffee, and spice notes of cinnamon, nutmeg, clove, well-seasoned oak, and vanilla. These flavors add a nuanced complexity that nicely balances the sweetness, spice notes, and slight bitterness of the chocolate and coffee flavors.
The finish on Foursquare rums is typically long, with a subtle sweetness and lingering notes of seasoned oak, spices, and caramel.
The IWSC Judging Panel described the Foursquare 14 YO rum as featuring:
Enticing aromas of leather and olive oil greet the senses, leading to a compelling blend of citrus peel, cinnamon, oak, dark chocolate, and nutmeg. Plummy, spiced fruit dances on the palate upon a soft, sweet mouthfeel. A dry, tangy finish lingers, revealing layers of caramel, banana bread, and tobacco. It is luxurious and long-lasting.
The IWSC Judging panel described the Foursquare Covenant rum as:
The aroma captivates with toffee sweetness and tropical fruit notes. On the palate, oily vanilla richness is balanced with toffee and caramel. The finish blends sawdust, butter, coffee, and caramel notes, creating a flavourful experience.
The Foursquare 2011 rum, on the other hand, was described by the Judging Panel as featuring:
On the nose, discover a beautiful blend of apricots, toffee, and coconut, introducing a bold palate with a delicious tropical fruit core. Dark chocolate, rich prune, and vanilla ice cream flavors intermingle with crunchy red berries and layers of furniture polish, leather, and walnut wood. This wonderful complexity culminates in a generous, Oloroso-like finish, dancing with treacle, tobacco, and mahogany tones.
Also winning Double Gold medals for their molasses-based rums are?Phraya Rum (Thailand), Deep Matured Gold Rum, 40% ABV, 98/100 points and?Equiano (Barbados), Ominira 11 YO Rum, 52% ABV.
The IWSC Judging Panel described the Phraya Rum as featuring:
The nose is characterized by luxurious aromas of milk chocolate, gentle toffee, and dried stone fruit. The palate reveals enveloping caramel, butterscotch, chocolate, and leather, while the dry finish leaves us with attractive tones of baking spices and abundant dried coconut. This is a textural journey of exquisite balance. Outstanding!
The Judging Panel described the Ominira rum as exhibiting:
Rich tones of vanilla, raisins, nutmeg, and Sherry-soaked fruits create an enticing aromatic display. Flavors of crème brulé, toasty oak, dark chocolate, and ripe cherry combine with sweet toffee and a faint whiff of bitter caramel. It is complex, textural, and amazingly layered with an elegantly dry finish.
Two Agricole rums won Double Gold medals:?Mount Uncle Distillery (Australia), FNQ Iridium X Agave Cask 10 YO Rum, 47% ABV?and?Taiwan, Tobacco & Liquor, Crat Cask Strength Single Rhum, 57.2% ABV. Both rums scored 98/100 points.
Agricole Rum/Rhum Agricole is a distinctive style of rum that originated in the French Caribbean, particularly on the islands of Martinique and Guadeloupe. Today, however, it is produced worldwide. Unlike most other rums, typically made from molasses, a byproduct of sugar production, Agricole rum is produced from fresh sugarcane juice. The juice gives the rum a unique flavor profile that is often more vegetal, grassy, and complex than traditional molasses-based rums. Agricole rum can be aged in oak barrels, which imparts additional flavors and complexity. Unaged versions are called “blanc” (white), while aged versions can be labeled as “élevé sous bois” (aged under wood), “vieux” (old), or other terms indicating longer aging periods.
On the nose, Agricole rhums feature prominent notes of fresh-cut grass, green vegetables, sugar cane, and floral aromas of honeysuckle and jasmine. These rhums show subtle hints of tropical fruits such as banana, pineapple, and citrus and earthy undertones, sometimes with a hint of minerality.
On the palate, Agricole rums often taste fresh and clean, reflecting the pure sugarcane juice. These rhums feature intense vegetal flavors of green grass, bell pepper, and cane stalk with additional layers of tropical fruits and floral notes. Unaged varieties tend to have more prominent pepper notes, while aged varieties feature more spice than pepper.
The finish can vary from short to long, with lingering grassy and vegetal notes. Aged expressions have a longer finish, with additional layers of vanilla, oak, and spice from the barrel aging.
Agricole rum offers a unique and complex tasting experience that differentiates it from traditional molasses-based rums. Its distinctive vegetal, grassy, and fruity notes provide a refreshing and sophisticated profile showcasing fresh sugarcane juice’s pure essence.
The IWSC Judging Panel described the Mount Uncle Distillery rum as showing:
The aroma is a delightful blend of honeyed sweetness and Sauterne complexity. The palate sings with symphonic notes of balanced rich oak, creamy stewed apple, plump raisins and a full, satisfying, citrus-driven finish.
The Craft Cask Strength Single Rum, on the other hand, was described by the Judging Panel as featuring:
Pronounced nose with deep, rich cacao aromas that are perfectly complemented with tropical fruit. The well-balanced palate unfolds with a bounty bar sweetness and a touch of oak, culminating in a long, complex finish.
The 2024 IWSC rum judging produced an excellent set of winners. Particularly impressive was the dominance shown by R.L. Seale. Foursquare has always been recognized as one of the world’s great rums, but at least in 2024, it can lay claim to being the world’s best rum producer. Most of the Foursquare expressions can be readily found in North America. If you are a rum fan and are not familiar with the brand, you need to make it a priority to acquaint yourself with it.
What is also particularly interesting is the dominance of craft distillers among the top-quality producers and how global the top ranks of rum distillers have become. Today, as the IWSC results show, the best rums come from all over the world. This year’s gold medal winners hail from unlikely places like Uganda, Cambodia, Fiji, and Japan.
The?IWSC website?has a complete listing of all the Gold medal winners and other medalists in the rum category.
A new premium rum blended from rums from the Caribbean and Latin America
Georgina Torbet - 6/17/24 - The Manual
A new premium?rum?is being released, backed by Eric Winter — the actor? starring on ABC’s The Rookie. Palm Republic rum will come in both an aged and silver form, having been developed over the last two years to create a unique blend of flavors from across the Caribbean and Latin America.
“To me this is not just another celebrity spirit, this is a passion of mine for the past 20 years,” said Winter. “I fell in love with rum when I went on my first trip to?Puerto Rico?with my now wife Roselyn Sanchez. It was then that I started to appreciate all of the different nuances premium rum had to offer. I mean this when I say it, the real star here is our unique blend of rum that is Palm Republic! As it should be. It’s what today’s consumer deserves in this flooded market of celebrity spirits.”
The Silver variety of Palm Republic is 80 proof, and is a blend of rums from Jamaica and the U.S. Virgin Islands. It has notes of banana, vanilla, and sugar cane, with a creamy texture and medium body.
The Aged variety is 92 proof, and is a blend of rums from Panama, Jamaica, and the U.S. Virgin Islands. It is aged for eight years in sherry casks, to develop notes of dark chocolate, caramel, and molasses. This is the more full-bodied of the two, with warm sugar notes and hints of spice.
The rums are made with no added flavors or colors, and the Palm Republic Rum brand was awarded a Gold Medal at the San Francisco Spirits competition. The brand is currently available on store shelves in Florida and can be shipped to other states in the U.S.
Black Tot reveals fifth annual release
Miona Madsen – 06/18/2024 – The Spirits Business
London-based Elixir Distillers has unveiled its fifth annual release of Black Tot Master Distiller’s Reserve rum.
Following the success of previous releases, Black Tot rum’s 2024 limited edition will launch globally on 1 July.
The 2024 edition focuses on Barbados, the cultural birthplace of rum, and includes 60% rum content from Foursquare, Mount Gay and West Indies Distillery.
“For this new release, we wanted to focus on the warmth and fruit of rums from Barbados, which has given us a foundation of juicy pineapple, lime and sweet melon,” said Oliver Chilton, master blender at Elixir Distillers.
Since the debut of Master Distiller’s Reserve in 2020, Chilton has used a perpetual blend as a backbone for the annual release paired with variables to create a unique flavour profile each year.
“I knew I wanted to highlight Barbados and then bring in some of the older Jamaican blends that we created a few years back for added intensity. We also used some deep, rich rums from Guyana and Trinidad, including one from the closed Caroni distillery.”
Black Tot Master Blender’s Reserve 2024 offers ‘notes of grilled, buttered pineapple with lime, chilli and coconut’ on the nose, followed by ‘hints of dark sugar, baked banana, sweet melon and guava’ on the palate.
Black Tot Rum promotes transparency and provides a detailed breakdown of the 2024 blend on the brand’s website.
The 2024 edition is aged in a combination of American and European oak casks and is limited to 3,000 bottles worldwide.
The expression is offered un-chill filtered at 54.5% ABV and retails for ￡145 (US$184) for a 700ml bottle.
Black Tot Rum began its journey in 2011 after founder Sukhinder Singh purchased stone flagons filled with rum from the Royal British Navy.
As with previous releases, these original navy rum flagons from the 1970s were used to pay homage to the first Black Tot release, The Last Consignment.
CARICOM's 50th anniversary to be celebrated with commemorative rum
Staff – 06/18/2024 – Loop News
In a tribute to the Caribbean Community's (CARICOM) 50th anniversary, thirteen member states of the West Indies Rum and Spirits Producers Association (WIRSPA) are set to honour the regional organization with specially crafted rum blends.
This initiative marks the culmination of a year-long celebration of CARICOM’s achievements and contributions to the Caribbean region.
The participating rum producers, representing all rum-producing CARICOM member states, will present their commemorative blends during ceremonial events scheduled throughout the month of June.
These events are designed to formally acknowledge and celebrate CARICOM’s half-century of regional cooperation and development.
The distillers involved in this historic gesture include well-known names such as Mount Gay Distilleries (Barbados), Demerara Distillers (Guyana), Suriname Alcoholic Beverages, Angostura (Trinidad and Tobago), Saint Lucia Distillers, Belfast Estate (Dominica), Antigua Distillery, Grenada Distillers, Travellers Liquors (Belize), Watlings Distillery (The Bahamas), National Rums of Jamaica, and St. Vincent and the Grenadines Distillers.
Each producer will present their unique blend to their respective national governments, highlighting the diversity and craftsmanship of Caribbean rum production.
CARICOM disclosed in a statement that “The products being showcased by regional rum producers will be distributed to CARICOM Member States, with some products being available for sale in local markets. Several of the special edition rums are unique blends that will only be available for this purpose and in very limited quantities.”
Eric Winter of ABC's The Rookie Releases Gold Medal Winning Rum
Palm Republic Rum – 06/17/2024 – PR News Wire
LOS ANGELES, June 17, 2024 /PRNewswire/ -- Eric Winter, currently starring on ABC's The Rookie, is debuting Palm Republic Rum. Palm Republic is a premium rum available in Aged and Silver.
"To me this is not just another celebrity spirit, this is a passion of mine for the past 20 years. I fell in love with rum when I went on my first trip to Puerto Rico with my now wife Roselyn Sanchez. It was then that I started to appreciate all of the different nuances premium rum had to offer. I mean this when I say it, the real star here is our unique blend of rum that is Palm Republic! As it should be. It's what today's consumer deserves in this flooded market of celebrity spirits," says Eric.
When discussing the development process, Eric says, "We spent the last 2 years developing the liquid, we worked with some incredible mixologists, masters of spirits, etc. that helped tremendously in that process."
The quality of Palm Republic comes from its unique blend, combining the best flavors from across The Caribbean and Latin America in a single glass. While other blends try to mask imperfections, we have nothing to hide. With no added flavors or colors, we've created an end product that is greater than the sum of its parts.
Palm Republic Aged is a 92-proof blend of quality rums from Panama, Jamaica and USVI, aged up to 8 years in sherry casks. Notes of dark chocolate, caramel, and molasses combine to give way to a warming flavor or muscovado sugar, gingerbread and, baking spice for a full-bodied finish.
Palm Republic Silver is an 80-proof blend of hand selected rums from Jamaica and USVI. Refreshing notes of banana, vanilla, and sugar cane while baking spices of nutmeg and clove round out the nose giving way to a creamy texture and a medium bodied finish.
Palm Republic Rum was awarded a Gold Medal for its blend in the San Francisco Spirits competition that took place in April.
Joining the Advisory Team and leading the Investment Team are Andy Miller and Andrew Pruett.
Andy Miller is a serial entrepreneur having co-founded a number of start-ups with successful exits including Quattro Wireless which was acquired by Apple in 2009 and become Apple's mobile ad network, iAd. At Apple, Andy served as Vice President of Mobile Advertising, reporting directly to Steve Jobs. Andy has sat on the boards of and advised a number of companies including the NBA's Sacramento Kings, of which he was a co-owner. Andy is a co-founder of Hometap, a home equity sharing company, and NRG, a leading North American video gaming club competing across numerous gaming titles, of which he is currently CEO. ?Andy was born in Boston, Massachusetts and attended Union College and Boston College Law School.
Andrew Pruett brings extensive Advertising, Marketing, Sales and Business Development experience to Palm Republic after Executive Management roles at The Walt Disney Company, Disney Online & The Family Network, Quattro Wireless, and Apple, Inc., where he was Director of Global Business Development and ran Worldwide App Monetization & Publisher Relations for iAd, Apple's Advertising network. He was formerly President & CEO of NRG eSports, a leading North American video gaming club and is currently Head of Operations at the historic Bel Air Church in Los Angeles, California. Andrew was born in Oklahoma City, Oklahoma and graduated from John Brown University.
Palm Republic is currently available in retail stores in Florida. It is also available to ship to 42 states on www.palmrepublicrum.com.
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New Grove Rum reveals redesign
Miona Madsen – 06/17/2024 – The Spirits Business
Grays-owned New Grove Rum has introduced new colourful branding that honours the heritage of Mauritius.
In celebration of the distillery’s over 20-year journey, New Grove has unveiled a new identity for its single-estate rums with the slogan ‘A Taste of Passion’.
The new milestone brings the distillery’s blue latanier leaf icon to the centre of the branding, coupled with vibrant colours that incorporate Mauritian landmarks and sugar fields.
The blue latanier represents the start of distillation in Mauritius. In the 16th century, Dutch settlers produced arak, a spirit obtained from latanier tree sap distillation.
New Grove oversees all aspects of production from its estate.
It offers rums that pay homage to the island’s 200-year rum distillation tradition while embracing innovation, sustainability, and traceability.
The company’s subsidiary, Harel Freres Group, known as Terra, started producing spirits from sugar in 1838 in the village of Pamplemousses, improving the existing distillation techniques.
New Grove distillery, meaning ‘renewal’, was established in 2003 by spirits distributor and producer Grays.
Earlier this year, Grays partnered with EcoSpirits to launch Gecko Bay rum by the New Grove distillery at Veranda Resorts.
ISLE OF WIGHT GIN WINS YET MORE INTERNATIONAL AWARDS
James Rann – 06/17/2024 – Island Echo
In a proud moment for the Island Spirits Distillery, makers of Isle of Wight Gin and Rocken End Rum, 3 of its spirits have clinched prestigious awards at this year’s International Wine & Spirit Competition (IWSC).
The distillery’s signature gin, Island Spirit Gin, was awarded a Silver Medal, and comes just a month after winning a bronze medal at the international London Spirits awards.
Quarr Abbey Gin, a gin made exclusively for Quarr Abbey using only their botanicals, won a Bronze medal, and Rocken End Dark Spiced Rum was also awarded a Bronze medal, after being launched just a few months ago.
The IWSC, renowned for its rigorous judging process, is one of the most prestigious competitions in the wine and spirits industry, making these awards a significant achievement.
Cris Jackman, Distiller at Island Spirits Distillery, has said:
“Winning at the IWSC is a true testament to the dedication and craftsmanship that goes into every bottle we produce.
“We are thrilled to see our spirits recognised on such an esteemed global platform.”
The Island Spirit Gin, which earned a silver, is celebrated for its classic blend of local botanicals that capture the clean fresh summer breeze on the Island. Its complex, yet balanced flavour profile has garnered acclaim, making it a favourite among gin enthusiasts.
The Quarr Abbey Gin, infused with botanicals, honey and apple sourced from the historic Quarr Abbey gardens, and the RockenEnd Dark Spiced Rum, spiced with spices grown in Ventnor and a nod to the Isle’s smuggling past, both earned bronze medals. These spirits have been highlighted for their unique characteristics and the stories they tell through their tastes.
Cris Jackman added:
“These awards not only reinforce our passion for distilling but also motivate us to continue innovating and elevating our craft.
“The distillery plans to leverage the momentum from these wins to bring the taste of the Isle of Wight Gins to new enthusiasts around the globe.”
The Best Value Rums of 2024
Don Kavanagh – 06/12/2024 – Wine-Searcher
It's fitting that if one spirit is going to be enjoying its time in the sun it should be rum.
However, it's odd that, in a world where sugar is viewed by dieticians to be as bad as crack, that one of the great sugar by-products – rum – is having an extended period in the consumer spotlight. No matter how many people boast about cutting sugar out of their lives, more and more of them are turning to sugar for their drink of choice.
Rum is still very much enjoying a renaissance. It's not that long ago that rum – particularly dark rum – was the stuff of sailors and fishermen, rather than the basis for an entire cocktail subculture enjoyed by a new generation of younger consumers who have never even been on a boat. But that has changed and the past two decades have been a boom time for the old sea dog of the spirits world.
The secret to rum's success, of course, is it diversity and versatility. While there are rums from all over the world available, the spirit is most closely associated with the once-pirate-laden waters of the Caribbean. That's hardly surprising, given the amount of sugar grown there – it's the type of place that rarely wastes anything, as a look at Caribbean cuisine will confirm – but it's also a legacy of the Caribbean's importance as a trade route; the easy access to international shipping meant that producers could export their wares worldwide.
Rum is also a versatile spirit, coming in a variety of styles and flavors. From white rums through golden examples to dark and black-strap styles (and not forgetting the various spiced rums available), there is something for everyone and something for every cocktail. And those cocktails have been a tremendously effective way for rum to enter the consumer's awareness.
Value has also been a strength of rum down the years. With much shorter aging times (due to the higher temperatures typical in rum production regions) and cheaper raw materials, rum has always had an edge over other, more finicky, spirits. And a look at our list of the best-value rums currently on offer across Wine-Searcher's vast database shows that clearly.
We choose these products manually, using pretty direct point-to-dollar ratio for a simplified "bang for buck" scale. We divide the score by the price giving a value factor. The higher the value factor, the more points per dollar. However, it's not simply about being cheap – every spirit on the list has a minimum aggregated critic score of 92.
Best Value Rums on Wine-Searcher:Rum Name - Value factor
? Plantation Original - 5.22
? Planteray 3 Stars - 4.60
? Plantation Isle of Fiji - 2.94
? Appleton Estate Reserve - 2.85
? El Dorado 12 Year Old - 2.36
? Holmes Cay Esotico Edition - 2.21
? Punta Cana Club Tesoro - 2.13
? Appleton Estate 12 Year Old - 2.00
? Santa Teresa 1796 Solera - 1.96
? Kirk and Sweeney Gran Reserva - 1.70
Let's continue talking about value: the scores for these rums are pretty wild. While our Irish whiskeys had an average aggregated critic score of 91.5 and our gin list's average score was 92.1, the rums above have an average score of 93.8. Only three of them have scores of 92, while four have scores of 94 and there are two 95-pointers. The Punta Cana's aggregated critic score is 96.
The fact that the top rum on our list has an aggregated critic score of 94 and a global average retail price of just $20 tells you everything you need to know about rum and value. That's the global average, too; in some places you can pick it up for much cheaper.
True, the prices have nudged up somewhat in the past year, but not by much, and certainly nothing like the rate of inflation, so while there are more better rums arriving on the shelves, the prices aren't going nuts.
How's that for a sunny outlook?
Aluna Tropica launches in the UK
Lauren Bowes – 06/18/2024 – The Spirits Business
Mangrove Global will distribute Aluna Rum’s newest expression, Tropica, in the UK.
Tropica blends premium rums sourced from Sri Lanka and the Caribbean with ingredients from South Asia, including pandan leaf, spiced pineapple, lemongrass, and galangal.
On the palate, it offers ‘pineapple, lemongrass and almonds’, with ‘a smooth finish of honeyed spice’.
Other rums in Aluna’s portfolio include its coconut expression and two lower-sugar rum-based liqueurs: Cold Brew Coffee and Peach & Pomelo.
Aluna co-founder Guy Ritchie said: “We can’t wait for UK consumers to get the chance to taste Aluna Tropica. We’ve had some incredible feedback on this spirit already. It’s a less sugary, really differentiated flavoured rum that’s as enjoyable neat as it is in a cocktail – something we think will go down really well this summer.”
Bottled at 38% ABV, Tropica will be available from 20 June at an RRP of ￡32 (US$41).
Aluna co-founder Heather Graham added: “We have focused on taking a step away from the usual dark rums and sugary profiles.
“The freedom to select from a greater diversity of premium world rums while experimenting with new culinary ingredients from South Asia has allowed us to create a really appealing product for those who like to explore better drinks.”
Aluna is a member of 1% For The Planet, which means it contributes 1% of total sales to support environmental non-profits.
As well as Aluna, Mangrove distributes Indian single malt brand Indri, Lewis Hamilton’s Almave and Canadian whisky Bearface.
Why Are Cocktails So Expensive Now?
Staff – 06/12/2024 – Daily Sevenfifty
In the changed economic landscape, bar professionals are working to keep cocktail price increases to a minimum
These financially challenging years have delivered a trail of alarming headlines related to inflation, and one oft-named disproportionate expense remains going out for cocktails. Even as inflation has fallen from its zenith in 2021 and 2022, there is a lingering perception amongst consumers that drinking in bars is extravagantly expensive.
Cocktail prices increased on average by $1 between 2021 and 2022, according to a CGA by NIQ report. A $14 drink grew to $15, a rise of seven percent, consistent with inflation rates at that time, but for more expensive cocktails, the increase of a single dollar represents a smaller percentage increase in price. Whether or not the price of cocktails inflated disproportionately, prices have gone up for a variety of reasons, a spike in the cost of booze and labor amongst them, and regardless, the perception alone has an impact on consumer behavior.
“I think the issue is people are so aware of [inflation,] it’s part of the zeitgeist,” says Laura Unterberg, the beverage director of The Fox Bar and Country Club in Nashville, Tennessee. “People assume things are too expensive without even looking.”
With that in mind, many bars and restaurants have sought strategies to keep cocktail prices consistent or price increases to a minimum, while maintaining workable profit margins in these difficult economic conditions. SevenFifty Daily spoke to bar professionals and industry analysts about the state of the cocktail economy today.
A Changed Financial Landscape
According to a Coresight Research study conducted in February 2024 and authored by analyst Sujeet Naik, while inflation overall has finally moderated, inflation for bars and restaurants is still considerably higher than other related industries, particularly food and beverage retail, or the “food-at-home” (FAH) sector. “‘Food-away-from-home’ inflation remains notably higher, at 5.1 percent year-over-year growth in January 2024, compared to 1.2 percent at grocery stores,” the report states. “With this unfavorable pricing gap, restaurants need to be careful of increasing menu prices, as this increases the risk of outsized traffic declines with more consumers choosing FAH.”
Whereas other sectors have been able to bounce back, restaurants and bars have faced a bigger challenge when it comes to pricing. “Most [on-premise businesses] wanted to preserve their profit margin because of the loss they experienced during the pandemic,” says Naik, noting that cocktails are frequently one of the most profitable menu items, and therefore most subject to pricing scrutiny among operators. For those that were forced to raise prices consistent with inflation rates, “they were a bit reluctant to decrease those prices for consumers [as inflation cooled], even when prices [in other industries] were going down.”
The double-edged sword for the restaurant and bar industry is that inflated prices are partially driven by consumer willingness to spend money—to a point, according to Naik. In this post-inflation moment, beverage and bar directors are tasked with finding the sweet spot of pricing cocktails to encourage rather than dissuade consumers from partaking, yet neither limiting their potential profit or incurring a loss. “We can charge $20 for a cocktail,” says Sara Gabriele, the owner of Gabi James in Redondo Beach, California, whose cocktail menu prices typically range between $13 and $16. “But if someone buys a $20 cocktail, are they going to be less open to buying that second cocktail? Or is it better to keep them at $17, and then they might get two?”
Cocktail Inflation Is a Nuanced Challenge
Each state, region, or even city has its own factors when it comes to cocktail pricing in any economic landscape. Across the country, however, drastic cocktail price increases are as often a factor of increased labor rather than supply costs, which are typically higher for restaurants than retail outlets. Labor costs are also subject to frequent legislative changes. In Denver, for example, required incremental wage increases exacerbated the problem of inflation for bar managers, like Chad Michael George, a bar consultant and the founder of Denver’s Proof Productions. “Our labor costs are going up anywhere from eight to 10 percent a year just based on minimum wage,” he says. Minimum wage has doubled since 2018 in Denver, and is still on the rise. This has made a noticeable impact on cocktail prices for the area. “I can think of multiple spots that, in 2019, were serving $12 to $14 cocktails, and now they’re $16 to $18.”
Markets with an established cocktail culture can buffer higher prices to a degree, whereas emerging markets can be less tolerant of price increases, creating challenges for beverage directors in those areas. “Considering median household income, when people are going out in New York, the difference between $22 and $24 isn’t much,” says Karl Góranowski, the beverage director for Bata and its associated bar and restaurant projects in Tucson, Arizona, “whereas here, the difference between $11 and $13 is a major shift.”
Category shifts also influence cocktail prices, such as the massive surge in demand for agave spirits. “Anything that increases in popularity that quickly, takes a long time to catch up in terms of production,” says Unterberg. She, and everyone else profiled here, noted price increases of at least 25 percent for adequate, ideally additive-free tequilas of the price bracket that can support usage in cocktails.
Product Swaps and Menu Revamps
Despite various challenges to keeping cocktail prices static, however, many bar and beverage managers consider price increases only as a last resort. “I almost view a price increase as the easy way out,” says Patrick Smith, the senior beverage manager for New York’s Union Square Hospitality Group. “Instead I’m leveraging my expertise, my skill set, and my time in the industry to try to find every saving and pass those savings on to the guest.”
Ingredient substitutions are frequently necessary when spikes in specific product prices force the question of whether to raise a cocktail’s price. The alternative is to look across the breadth of a cocktail menu for other potential savings, rather than at a specific cocktail and its ingredients. “We have had to have difficult conversations about the products that we’re using,” says Smith. “Is there a way we can use a premium ingredient in a certain cocktail and make adjustments to other cocktails?” This is one way he’s succeeded in keeping Union Square Hospitality Group’s cocktail prices mostly consistent across various restaurant concepts over the past several years, while still maintaining a favorable average profit margin across the entirety of the menu. “If it’s a linchpin ingredient that is really definitional to what it means for your program to exist in a way that you’re proud of, then you’re gonna look everywhere else [for savings] first,” he says.
Some product swaps are doable; when the price of Campari increased in 2022, many beverage directors looked to other bitter Italian liqueurs such as Contratto or Meletti for potential cost savings. However, more difficult considerations may involve dropping some cocktails outright, or overhauling the menu in a major way. “We had to reinvent or remove quite a few things about a year ago,” says Gabriele. “Sazerac Company’s whole catalog moved to a beer distributor in Los Angeles, and their price minimums made them cost-prohibitive.” This change was compounded by labor shortages in the distribution sector, further hiking pricing. “We would have had to charge $19 for certain cocktails,” she says, which is untenable in a neighborhood where her experience has shown that price tolerance for cocktails tops out around $16.
From left to right: Chad Michael George, a bar consultant and the founder of Denver’s Proof Productions (photo by Kyle Arthur); Karl Góranowski, the beverage director for Bata (photo by Jack Ludlam); Patrick Smith the senior beverage manager for the Union Square Hospitality Group (photo courtesy of the Union Square Hospitality Group).
From left to right: Chad Michael George, a bar consultant and the founder of Denver’s Proof Productions (photo by Kyle Arthur); Karl Góranowski, the beverage director for Bata (photo by Jack Ludlam); Patrick Smith, the senior beverage manager for Union Square Hospitality Group (photo courtesy of Union Square Hospitality Group).
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Garnish and waste are also opportunities for scrutiny when repricing cocktails. For a lot of bartenders, garnishes aren’t necessary for every cocktail and offer a cost-saving. “This trend of dehydrated citrus wheels over the past few years drives me nuts because I see it in a lot of programs that say they’re zero waste,” says George. He advises bar clients to rethink these choices; the cost of citrus is especially volatile, and dehydrated wheels are wasteful by definition, as they have no additional value for juicing or twists.
Renegotiating with Suppliers and Brands
Not every business has the ability to negotiate liquor prices, depending on state or local liquor laws, but relationships with distributors or suppliers are often instrumental in finding potential savings. “I try to do more tastings to see what else is out there, and what could be a better price that maybe I’m not aware of,” says Carolyn Kao, a Bay Area bar manager (formerly of Good Good Culture Club in San Francisco), whose bar traffic was seriously impacte
WSWA Releases Statement on Calls to Dismantle the Three-Tier System
Staff – 06/18/2024 – WSWA
Wine & Spirit Wholesalers of America (WSWA) today issued the below statement on calls to dismantle the three-tier system of beverage alcohol regulation:
“WSWA steadfastly defends the robust federal and state regulatory environment that created the safest, most competitive, and most successful alcohol marketplace in the world. Federal alcohol regulations coexist with the Twenty-First Amendment, giving every state the right to regulate alcohol as they see fit.
Keeping the alcohol marketplace competitive is paramount. Weakening the current system of regulation would take the industry back in time 90 years with only the largest and most lucrative brands dominating the marketplace, limiting consumer choice and value. This means that the investments of time, money, and sweat made creating the craft wine and spirits brand renaissance of today would all be in vain.
The current federal and state alcohol regulatory framework also provides for the world’s most diverse marketplace – people and products look much different today than they did 90 years ago, and this is something to be celebrated not dismantled.
Over the past decade, craft, startup, and small production wine and spirits have become one of the largest growth segments in the industry because of the three-tier system. Who would want to undo this? From a consumer safety standpoint, deregulation enables predatory behavior and puts consumers at risk of becoming victim to counterfeit and illicit alcohol.
Robust regulation means consumers can trust that what the label says is what’s in the bottle. We can track bottles from the producer, through the wholesaler right to the retail shelf, something you can’t count on in loosely regulated countries. Why would anyone want to threaten the health and safety of American consumers? Why would anyone want to trade our model protecting consumers to one that turns a blind eye to product integrity?
As for the industry-wide social responsibility work lead by Responsibility.org and others, the risk of underage access to a socially sensitive product is managed by state regulators who utilize enforcement tools to detect and deter underage access and impaired driving. Again, who would want to take this ability away from regulators dedicated to public health and safety?
WSWA along with our industry partners will continue to engage with the appropriate regulatory agencies to ensure the value of the three-tier system is never diminished. WSWA always engages the White House, Congress, and state legislatures to ensure the U.S. marketplace is well-regulated and continues to be the global standard for others to follow. The U.S. leads and must continue to do so.
The three-tiers are the legs of the U.S. alcohol marketplace and without them, it would not stand to serve consumers, place responsibility at the forefront, or set the global-standard.”
Archaic Alcohol Regulatory System Must Modernize Argues New White Paper
Staff – 06/17/2024 – NAWR.org
National Association of Wine Retailers Publishes “Modernizing Alcohol Regulation"
Over 90 years after it was first proposed and implemented in most states, the three-tier system of alcohol distribution has proven that it cannot address the needs of a modern society and changed culture, argues a new white paper released by the National Association of Wine Retailers (NAWR). “Modernizing Alcohol Regulation” suggests that a new set of principles, not addressed by the nearly 100-year-old three-tier system, must guide a new approach to alcohol regulation in the United States.
“Modernizing Alcohol Regulation” demonstrates that the underlying principles of the three-tier system do not address the primary economic, social, and political concerns of a 21st-century America—a society that bears no resemblance to the conditions existing in the late 19th and early 20th century that the three-tier system was created to address.
Replacing an Archaic System Incapable of Addressing a Modern Industry
Originally designed and deployed to prevent the return of the “Tied House System ” prevalent before Prohibition, the three-tier system’s most important feature is the legal mandate that producers and suppliers must go through middlemen wholesalers before their products may be sold at retail, while retailers may only procure inventory from the same wholesalers. “Modernizing Alcohol Regulation” argues this mandate is inappropriate in 2024 and does not address contemporary issues surrounding alcohol sales and consumption. The new NAWR white paper proposes a new set of principles to guide a modern alcohol regulatory system as well as proposed policies derived from those principles.
“A broad discussion of the significant infirmities of the three-tier system is long overdue,” explains Tom Wark, executive director of the National Association of Wine Retailers. “The archaic three-tier system not only hampers innovation within the alcohol industry but fails to draw attention to the most important concerns and desires of consumers and is leading to anti-competitive practices that harm producers, retailers, importers, consumers, and even small distributors. This white paper attempts to refocus attention on the most important issues facing the alcohol beverage industry and society.”
Issues addressed in “Modernizing Alcohol Regulation” include:
-The origins of the three-tier system
-How social, cultural, and economic changes have rendered the three-tier system obsolete
-The key principles a modern alcohol regulatory system should uphold
-Proposed changes to alcohol law that derive from appropriate principles
“Modernizing Alcohol Regulation” was written with lawmakers, the alcohol regulatory community American wine retailers, and alcohol industry practitioners in mind. It is the most comprehensive review of the current alcohol regulatory system reform proposal offered in the past two decades.
About the National Association of Wine Retailers (NAWR)
NAWR is a national trade association representing brick-and-mortar alcohol retailers, Internet-based retailers, wine clubs, and auction houses. It represents its members’ interests through lobbying and litigation efforts, providing member benefits, and educating the alcohol industry as well as lawmakers. For more information see www.nawr.org.
The FTC Brings Back the 1930s (Ongoing Coverage)
The Editorial Board – 06/13/2024 – WSJ
The agency may sue an alcohol distributor for sale-volume discounts.
Dinosaurs roam the earth again, and not merely in the movies.
They’ve been spotted at the Federal Trade Commission, which is excavating ancient bones like the long out of favor 1936 Robinson-Patman Act to harass business as an inflation scapegoat.
Our sources say the FTC is preparing to file a complaint against Southern Glazer’s Wine and Spirits, the nation’s largest alcohol distributor, for giving big retailers discounts on volume purchases. Robinson-Patman says suppliers cannot “discriminate in price between different purchasers of commodities of like grade and quality.”
Congress in that era wanted to protect small grocers from larger competitors, but the law has rarely been enforced in the past four decades because of its unintended harms. A 1977 Justice Department report documented how Robinson-Patman resulted in higher prices and price-fixing among competitors, while inhibiting small-retail cooperatives from negotiating discounts with suppliers.
Progressives are nonetheless urging the FTC to revive this legal velociraptor. “Dominant retailers can extract more favorable prices and terms from suppliers,” which “make up their losses by charging higher prices to independent, smaller grocery stores,” 16 Members of Congress wrote FTC Chair Lina Khan this spring.
Manufacturers often set different prices for customers based on purchase volumes, among other reasons. But there’s little evidence that these select discounts increase food or any other prices. Food prices roughly tracked overall inflation during the 1960s and ’70s, yet they rose more slowly than the consumer-price index in the 40 years before the pandemic.
One reason is that competition from big-box stores has helped keep prices down. Yet the Biden-era inflation has given Americans sticker shock in the grocery aisle. Since the start of the pandemic, food prices have increased at the fastest rate since World War II as energy, labor, commodity and material costs have surged.
Progressives want to scapegoat big business, and they have found unexpected allies among some conservatives. Last month a bipartisan House letter led by Reps. Zoe Lofgren (D., Calif.) and Tom Tiffany (R., Wis.) asked the chamber’s appropriators to designate $10 million of the FTC’s budget for Robinson-Patman enforcement.
“As Congress and federal antitrust authorities continue to expend time and resources scrutinizing the tech industry, we should not do so at the expense of kitchen table issues and the health of competition on Main Street,” they wrote. They say workers at mom-and-pop businesses have been harmed by the FTC’s failure to enforce Robinson-Patman.
Show us the evidence. Liquor and convenience stores have added roughly 26,000 jobs—about a 7.8% increase—since the start of the pandemic. Big-box stores have expanded, but Americans shop around.
In addition to Southern Glazer’s, the FTC has launched an investigation into Coca-Cola Co. and PepsiCo. Robinson-Patman is a blunt tool that lets the government fix prices, and it is so malleable that virtually all supplier discounts could be deemed illegal no matter if they benefit consumers.
Nostalgia for the 1930s is a Biden trend. The Federal Communications Commission recently invoked the Communications Act of 1934 to regulate broadband providers as common carriers under the pretext of protecting “net neutrality.” Now the FTC wants to use another New Deal law to mandate price neutrality. Bernie Sanders may have lost the 2020 Democratic primaries, but he has persuaded the Biden Administration that 2024 is really 1936.
Rethinking the Term 'Neo-Prohibition'
staff – 06/13/2024 – Meiningers International
Rod Phillips, noted wine historian and Professor of History at Carleton University, examines the popular new phrase 'neo-Prohibition'.
It’s become popular to refer to recommendations to drink less wine and alcohol in general, or to stop drinking altogether, as the advance of “neo-Prohibitionism.” As Marx and Engels might have written, “a spectre is haunting the vineyards of the world, the spectre of Prohibition.”
It’s a spectre conjured up by alarmists who simplify the complex issue of declining demand for wine, and attribute it to organizations such as the World Health Organization and various public health authorities that they believe wish to impose ‘neo-Prohibitionist’ policies on everyone. But these commentators wield the term ‘Prohibition’ like a blunt object, as if Prohibition were a single phenomenon, apparently unaware that there were many ‘Prohibitions’ applied to alcohol, all with different target demographics, purposes, and practical implications.
I suspect the idea that there was only one form of Prohibition results from the fact that to most people, ‘Prohibition’ means National Prohibition in the US between 1920 and 1933. But look at the many other Prohibitions before and since.
The most extensive in geographical terms was imposed on Muslims a millennium and a half ago, although it was not nearly as dogmatic, comprehensive, and universal as often thought. Then, in the nineteenth and twentieth centuries, some French, German, and British colonial administrations in Africa forbade indigenous peoples to drink alcohol. In the 1800s, the federal governments of the US and Canada did the same to their indigenous peoples, and these prohibitions lasted until 1953 and 1985, respectively.
Then, some Mexican states applied Prohibition after the 1910 Revolution, and Russia adopted Prohibition at the start of World War One in 1914.
After the 1917 Revolution, Lenin, then Stalin continued Prohibition until the mid-1920s. ?During and after World War 1, several north European countries (such as Iceland and Finland) adopted Prohibition for varying periods of time. Prohibition was also a popular policy among national liberation movements in Africa and Asia from the 1950s because alcohol was seen as a means by which Europeans had controlled colonized peoples. ?Prohibition was written into India’s constitution, and it is currently law in four states.
Although all these examples of Prohibition were based on the belief that alcohol is bad – for individual or public health or for the religious, moral, or social order – they were all qualified.
Although all these examples of Prohibition were based on the belief that alcohol is bad – for individual or public health or for the religious, moral, or social order – they were all qualified. Historically, despite an apparent blanket ban, alcohol was permitted in much of the Muslim world, as it is today. White settlers in Africa, Asia, and North America drank freely while keeping alcohol from their subject populations. Prohibition in Russia was initially implemented only as a time-limited measure to help the war effort. And while the production and sale of alcohol – or some types of alcohol – were forbidden in most countries under Prohibition policies, drinking alcohol was not.
From Prohibition to Temperance
Prohibition, then, has been many things, and I don’t recognize any of them in today’s discourses on alcohol – even in ‘neo’ mode, whatever that means. What I do see now is something akin to the temperance movement of the 1800s. Temperance was radically different from prohibition in that it was not coercive but aimed to persuade people to moderate their drinking or to abstain altogether. People were told that alcohol was bad for them – for reasons that varied by time and place – and they were urged to reduce their levels of drinking or to stop altogether.
Temperance was radically different from prohibition in that it was not coercive but aimed to persuade people to moderate their drinking or to abstain altogether.
That, surely, is the force of public health guidelines that suggest limiting drinking to so many standard servings of beer, wine, and spirits per day or per week, and to statements that no level of drinking is safe. We may choose to follow or ignore the advice, just as people did historically in societies where Prohibition policies were not imposed. Call it ‘neo-temperance’, if we must, but references to ‘neo-Prohibition’ reflect a misunderstanding of history.
There are two things going on these days. One is a decline in alcohol consumption, especially among the younger demographic groups, and the other is more prominence being given to alcohol by public health authorities. But they are not necessarily linked.
Alcohol consumption has been declining in many countries for many years, especially in previously high-consumption places such as France and Italy. So has a decline in alcohol consumption among young people.
Alcohol consumption has been declining in many countries for many years, especially in previously high-consumption places.
These trends pre-date the more concerted attack on alcohol by public health organizations, and they are based on changing attitudes towards health, sociability, and gender. ?As shown by preferences for the ‘natural’ and ‘organic’ – even though these are problematic terms – people seem to be increasingly concerned about what they consume, and many believe that alcohol has a negative impact on their physical and mental health. This is especially true of younger people, who are more concerned about their future than earlier generations. The growing popularity of alcohol-free periods (such as ‘Dry January’) and non-alcoholic beverages speaks to this.
Changes in social behaviour
As for patterns of sociability, aging populations increasingly socialize at home rather than in bars, as shown by the decline in the number of public drinking places everywhere. Although there were concerns about elevated alcohol consumption when mobility was restricted during the Covid period, alcohol consumption at home at other times is probably lower than in bars. And shifts in gender expectations mean that men today are less likely than in earlier generations to go drinking with their mates at the end of the day, and then go home to a meal prepared by their spouse. (I would add, “and the children in bed,” but there are many fewer children to go home to these days.)
The decline of wine consumption is not driven by announcements by the WHO or other public authorities, but by changes in everyday life in many countries.
The decline of wine consumption, and alcohol consumption more generally, is not driven by announcements by the WHO or other public authorities, but by changes in everyday life in many countries. No doubt, official warnings about alcohol reinforce individual decisions to reduce alcohol consumption, but to think of a concerted drive towards ‘neo-Prohibitionism’ as the problem is to miss the point entirely.
So are ideas such as enlisting celebrities to endorse wine, portraying wines as part of a healthy diet, or promoting wine as an artisanal product that has a sense of place. Proposals such as these strike me as desperate, and they remind me of the ‘drink more wine’ campaign in France in the early 1930s. Faced with bumper harvests and limited export markets, the French wine industry urged the French to up their already substantial consumption.
Responsible marketing
‘Drink a barrel of wine a year’ was one idea, and we can only hope it was nothing bigger than a barrique – 225 litres of wine a year would have been more than twice the prevailing per capita level of wine consumption. Other bright ideas including giving children wine at recess, having cyclists in the Tour de France drink wine and flourish the bottles as they sped by, and harnessing the more-than-compliant French medical profession to stress the health-benefits of wine.
This campaign came to nothing. French wine consumption didn’t move. I expect that having celebrities endorse wine, using YouTube, TikTok, and other media to reach potential young drinkers, gamifying wine, and the other ideas put forth to increase wine consumption today will be just as successful. The wine industry is faced with a sea-change in attitudes and consumption patterns. Wine might not be heading the way of the whaling, coal, asbestos, and tobacco industries, but it would be better to figure out ways to adjust to the changes rather than to raise spectres of non-existent threats such as ‘neo-Prohibitionism’ and indulge in fantasies about recovering lost markets.
Rod Phillips is a professor of history at Carleton University, Ottawa, Canada, and wine writer and author. His books include A Short History of Wine (Penguin UK, 2000), Alcohol: A History (University of North Carolina Press, 2014), French Wine: A History (University of California Press, 2016), and Wine: A Social and Cultural History of the Drink that Changed our Lives (Classic Wine Library, 2017). ?He is currently writing a book on Cabernet Franc around the world and on wine in the French Revolution. He contributes to The World of Fine Wine (UK), The World Atlas of Wine (UK), and guildsomm.com (US).
The biggest-selling spirits in the world (Link)
Lauren Bowes – 06/12/2024 – The Spirits Business
A bumper 2022 resulted in widespread declines across the spirits industry in 2023. But it wasn’t all doom and gloom – here are the world’s top 10 biggest-selling spirits.
High inflation, soaring energy costs, packaging shortages, and recessions – the challenges of doing business were plentiful in 2023. But so were the opportunities.
2022 was a standout sales year as the world rebounded post-pandemic. While some major borders remained closed for the majority of the year (such as China), travel became easier. Travellers returned with vigour (but not quite to pre-Covid numbers).
China’s borders officially reopened at the start of 2023, signalling the start of the real global return to ‘normal’ since 2020. As the data has trickled in this year, from category and regional exports to companies’ financial results, it is becoming clear that 2023 was a ‘reset’ year for the trade.
Data from Euromonitor International forecasts that total spirits volume grew by 1.4% in 2023 compared with 2022.
Nine of the 10 biggest-selling spirits in the world were also featured in 2023’s list, with one newcomer joining the ranks. Four of the top 10 brands managed to grow their sales.
Based on the data in our 2024 Brand Champions report, we’ve analysed the performances of the top-selling spirits and ready-to-drink (RTD) products globally.
Read on to discover the top 10 best-selling spirits brands, listed in order of their nine-litre case sales.
New York: State Assembly passes bill that would allow home delivery of craft liquor, cider
Staff – 06/11/2024 – News 12
Supporters say the bill will help local distillers get into new markets.
The state Assembly passed a bill on Tuesday that would allow craft liquor and cider to be delivered.
Unlike wine and beer, craft liquor and cider currently cannot be shipped directly to consumers.
New York state passed an executive order that allowed it during the coronavirus pandemic, but the new bill can make it permanent.
Supporters say the bill will help local distillers get into new markets.
Russia: Illegal online sales of alcoholic beverages have jumped in Russia
Staff – 06/11/2024 – Oreanda-News
In 2023, the illegal online liquor market in Russia jumped by 60 percent, reaching 80 billion rubles. Artyom Sokolov, President of the Association of Online Trading Companies (AKIT), gave such data in an interview with RIA Novosti.
Sokolov noted that the sale of alcohol on the Internet actually exists, while in quite large volumes, but the transactions are carried out "rough." According to the expert, services for such trade continue to develop - back in 2022, the market for illegal online sales of alcohol amounted to 50 billion rubles.
According to the estimates of the NIFI of the Ministry of Finance, due to the illegal trade in alcohol, the Russian budget will receive 253 billion rubles of lost revenue from 2023 to 2027, Sokolov added.
In October 2023, the Russian Ministry of Finance supported the official sale of alcohol online. According to the head of the department Anton Siluanov, the legalization of such a measure has more advantages than disadvantages. He clarified that state control over such trade would make it possible to combat sites that sell "burnt" alcohol.
House Ag Committee Members, Alcoholic Beverage Industry Coalition, Voice Concerns About U.S. Dietary Guidelines Review Process
Cyril Penn – 06/13/2024 – Wine Business
A letter from 15 associations sent to the heads of the federal agencies responsible for developing the 2025-2030 Dietary Guidelines for Americans (DGAs) is calling for a transparent process free from bias based on science - not ideology.
The letter, sent Monday to Secretary of Health and Human Services Xavier Becerra and Secretary of Agriculture Thomas Vilsack, comes amid reports that the U.S. Dietary Guidelines could be revised to state that, “no amount of alcohol is safe.”
The Guidelines, first published in 1980 and revised every five years, are a resource for making informed, responsible decisions when it comes to alcohol. They have always advised adults who choose to consume alcohol to do so in moderation and have long defined moderation as 2 drinks or less in a day for men or 1 drink or less in a day for women on days when alcohol is consumed.
House Ag members sent a letter to HHS and USDA outlining concerns and demanding answers.
Their concerns include HHS and USDA creating a new independent review process for alcohol guidance within HHS that falls outside of the long-established DGA process, and word that the National Academies of Science, Engineering and Medicine is delegating the review to a committee within the Substance Abuse and Mental Health Services Administration focussed on the prevention of underage drinking.
“We disagree with your agencies’ interpretation that the National Nutrition Monitoring Act of 1990 allows you to extract the alcohol guidance from the purview of the DGAC and house the periodic reviews in perpetuity to a committee within the Substance Abuse and Mental Health Services Administration (SAMHSA), which is required under the STOP Act to exclusively focus on prevention of underage drinking,” read the letter from House Ag members.
“We urge HHS and USDA to ensure an alcohol review process that includes stakeholder input and public comment opportunities and that is transparent, deliberative, science-driven, and results in guidance grounded in the preponderance of scientific and medical knowledge as required by law,” read the letter signed by organizations representing the industry, which included Wine Institute, Wine America, and WSWA.
“Without the discipline and rigor of a fair and transparent process that prioritizes sound science over biased agendas, we are concerned that the ultimate guidance will fall short of the preponderance of the scientific evidence standards long held by the DGAs,” it continued. “Americans deserve guidance based on sound science, not ideology, that is developed and communicated in a clear, meaningful way, to ensure Americans understand and implement it.”
A recent market research survey confirmed young people are likely to be receptive to information being put out by anti-alcohol lobbyists and would reduce consumption if the U.S. Dietary Guidelines were adjusted to include a recommendation of no more than two alcoholic drinks a week. The research didn't consider a hypothetical "no safe level" reccomendation.
The process of updating the guidelines is going on at a time when a coordinated campaign involving negative press about alcohol and health is gaining ground in the U.S. and in Europe. See, “The Fight Over Moderate Drinking: Why Studies on Effects are Unlikely to Happen” and “How Neo-Prohibitionists Came to Shape Alcohol Policy,” in the April 2024’ WineBusiness Monthly.
Bargain Hunting in Spirits (duty free)
Staff – 06/14/2024 – Jefferies
The spirits industry has seen a sharp and painful downgrade cycle, largely due to a hangover after the heady years of the Covid supercycle.
Underlying growth has moderated, however de-stocking has been a major driver of the slowdown.
Our recent report indicates that we at the beginning of the end of the downgrade cycle from de-stocking, however there is some risk of residual destocking in cal 2H24 in certain markets.
Bargain hunting in spirits... do the work today before the inflection becomes visible.
EU spirits stocks have been amongst the hardest hit in global staples given the combination of slowing growth and de-rating.
Spirits share prices appear washed out and in some instances are below Covid levels. This represents an attractive environment for bargain hunting.
The key catalyst for spirits stocks to work is the start of an upgrade cycle, which would put to bed the d/grade cycle and increase investor confidence in LT prospects. This is likely geared more to 2025 vs 2H24 so some patience is required.
Meanwhile, we prefer beer and soft drinks. We recommend doing the work on spirits today before the inflection becomes visible.
Why do inventories matter? The spirits industry has been through a sharp and painful downgrade cycle with downgrades of between 20-40% for the EU listed names. De-stocking has been a significant contributor, in some instances accounting for as much as a -14% drag on sales and 2x this on profits for some companies. As destocking, by definition, cannot last forever, calling the end of the destocking cycle will allow investors with duration to capitalise on spirits recovery as the cycle turns.
Where are we in the cycle? The analysis in our report published this week indicates we are closer to the end, rather than the beginning, of downgrade cycle from destocking. There is risk of some residual de-stocking in the second half of 2024, in some markets. As such, we view spirits as increasingly attractive for investors with duration while, in the very near term, we prefer beer and soft drinks.
Company highlights. Diageo (HOLD) - Destocking correction taken place but some modest risk into cal2H24. The broader question on DGE remains around a med-term growth algo that appears stale. Pernod (BUY) - Balanced inventory position but some modest risk in cal 2H24. Campari (HOLD) - shipments running ahead; less of an issue if sell-out trends remain strong. Remy (BUY) - inventory correction has exaggerated topline weakness and dented investor confidence in cognac. While the majority of excess inventories appear to have been cleared, we do not rule out the risk that shipments grow below depletions in fiscal 1H25 in US and China.
Beer and soft drinks our preferred short-term sub-sectors. We see a favourable catalyst path for both into the third quarter, given easy comps and the summer of sports. Alongside an improving commodity picture, we can see an algorithm of low-single digit volumes, mid-single digit sales, and high-single digit EBIT starting to emerge, and as this becomes visible, we expect these shares to re-rate. Our top pick is Heineken, but we also have buys on ABI, Carlsberg, CCP and CCH, which we see working into the summer.
CPI: May Beer Inflation Outpaces Total Bev-Alc, Wine and Spirits At and Away From Home
Zoe Licata – 06/13/2024 – Brewbound
The Consumer Price Index (CPI) for beer at home increased +3.1% year-over-year (YoY) in May, increasing just enough to end six consecutive months of the category posting a CPI reading at or below +3%, before seasonal adjustment, according to the U.S. Bureau of Labor Statistics (BLS).
The CPI for beer at home remained just below inflation for all items, which increased +3.3% before seasonal adjustment. When seasonally adjusted, the CPI for all items was flat, after increasinging +0.3% in April and +0.4% in March.
Beer at home increased +0.5% month-over-month (MoM) when seasonally adjusted, a deceleration from April (+0.7%) but still above March trends (-0.5%).
Beer at home also remained above spirits (+0.6%) and wine (+0.1%) at home, before seasonal adjustment. Spirits at home were flat MoM, after seasonal adjustment, after declining MoM in April (-1%) and March (-0.2%). Wine at home increased +0.1% MoM, after seasonal adjustment, consistent with previous trends (+0.1% in April, -0.1% in March).
Total bev-alc at home increased +1.7% YoY and +0.1% MoM before seasonal adjustment. Bev-alc at home increased +1.4% YoY and +0.2% MoM, before seasonal adjustment. With seasonal adjustment, total bev-alc increased +0.1% and bev-alc at home increased +0.2%.
Away from home, beer also led YoY CPI increases (+3.1%), before seasonal adjustment, above total bev-alc (+2.2%), spirits (+2.2%) and wine (+2.7%). However, beer recorded a -0.1% MoM decrease in CPI, while total bev-alc, spirits and wine all recorded +0.1% increases.
Similarly, when seasonally adjusted, the CPI for beer away from home decreased -0.1% MoM, after increasing +0.1% in April and +0.4% in March. Total bev-alc, spirits and wine away from home all increased +0.1% MoM when seasonally adjusted.
Off-premise scan data is now caught up through May 19. The average price per case of beer has increased by +$0.55 YTD, to $30.26, in Circana-tracked off-premise channels. In the last four weeks, the average price per cased increased +$0.49 versus the same period in 2023, to $30.40.
UK spirits volumes fall 5% in 2023
Nicola Carruthers – 06/14/2024 – The Spirits Business
Spirits volumes declined by 5% in the UK last year, with gin falling by double digits, data from IWSR Drinks Market Analysis revealed.
Data from IWSR revealed that total beverage alcohol (TBA) volumes in the UK dipped by 2% in 2023.
Between 2018 and 2023, volumes fell by a compound annual growth rate (CAGR) of 1%.
The TBA market in the UK is expected to see volume and value declines of 1% CAGR over the next five years (2023-2028).
Looking at 2023, spirits were hit the hardest with a 5% decline, while beer saw a 2% drop and wine fell by 4%.
Within spirits, gin experienced the biggest drop, down by 14% in 2023. The category has lost shelf space to segments such as Tequila in the past year, IWSR said.
Agave spirits had a more positive performance, rising by 4% in volume last year, however the IWSR has noticed that growth is slowing for the category. Volumes increased at a CAGR of 13% in the five years to 2023, but are forecast to grow by a CAGR of only 2% between 2023 and 2028.
Outside of agave spirits, a few other categories also registered growth, such as Bourbon, cream liqueurs, coffee liqueurs and spirit-based apéritifs, boosted by cocktails.
Most other spirits categories saw their volumes tumble as consumers converted to ‘better-value long drinks’, such as beer and wine.
Spirits are expected to register single-digit declines between 2023 and 2028, but gin will suffer heavier losses.
Rum is predicted to witness long-term growth, although modest and focused in spiced and flavoured variants, the IWSR noted.
Meanwhile, the ready-to-drink segment reported a 2% increase last year, driven by premium cocktails and a wider range of bottled ready-to-serve options.
No-and-low booms
The IWSR found that the no-and-low segment outperformed the alcohol market in the UK, due to the moderation trend and excise duty changes (drinks below 3.5% ABV are taxed at a lower rate).
The no- and low-alcohol segment soared by 47% last year, with forecast volume CAGR of 19% (2023-2028).
The low-and-no subcategory is expected to add value of ￡800 million (US$1 billion) gradually by 2028.
The latest Bevtrac consumer data from IWSR found that the no-alcohol market grew by 17% in 2023 and is estimated to grow at a 4% volume CAGR (2023-2028).
Volumes of non-alcoholic ‘spirits’ have now comfortably surpassed Tequila in the UK, the IWSR claimed.
“Whether reflected by reining in grocery spend, reducing the frequency of on-trade visits or switching to longer drinks, seeking out better value was the overwhelming priority for increasingly cash-strapped UK drinkers in 2023,” said Patrick Fisher, IWSR senior market analyst.
“Rising prices and the cost-of-living crisis have reduced disposable incomes for discretionary spending and, coupled with the enduring trend of moderation, as well as closures and reduced opening hours in the on-trade, this is having lasting effects on consumer behaviour.
“The upper end of the market remains more insulated, while mainstream-and-below retail sales became more dependent on promotions.”
The IWSR said there are now more alcohol-free dark spirit alternatives, and some Tequila substitutes, entering the market. It was previously dominated by ‘gin-style’ products.
Global alcohol sales declined by 1% in volume last year with spirits reporting its first drop in the US in nearly 30 years, the IWSR revealed earlier this month.
Total spirits sales also declined in Great Britain’s on-trade last year, falling by 4.6%, CGA data showed. Cream liqueurs were the only subcategory to grow in 2023, soaring by nearly a third.
New York passes interstate cider and spirits shipping bill but there is a catch
Staff – 06/13/2024 – Irish Liquor Lawyer
The New York legislature passed legislation, AB 3132, that would allow the interstate shipping of cider and spirits into the state subject to restrictions.
Specifically, this legislation would limit shipping to distillers producing below 75,000 gallons.
Under the terms of the legislation, an out-of-state distiller can ship up to thirty-six cases of liquor to a resident of New York.
The distiller would need to get licensed under procedures prescribed by rules and regulations of the authority. There is no specific language of a deadline for when the authority is required to issue rules or regulations.
Further, the distiller would need to obtain a New York Certificate of Authority and register as a distributor pursuant to “sections four hundred twenty-one and four hundred twenty-two of the tax law”.
Additionally, the distiller needs to follow reporting, record, and packaging requirements.
Cider rules
Cider manufacturers are subject to the same terms as distillers when it comes to shipping limits, licensure, reporting, record, and packaging requirements. However, there does not seem to be the production limits for cider manufacturers as there are for distillers.
Major caveats
Although this legislation is positive there are two major concerns, will the governor sign the legislation and is it constitutional?
There is no word whether the Governor will sign, but with an almost unanimous vote, she would be hard pressed not to sign.
The other issue is if this becomes law, can it withstand constitutional scrutiny. In the Granholm v. Heald, case, which found New York’s discriminatory shipping law unconstitutional, the Court held that laws which require reciprocity as a condition for shipping into a market are deemed unconstitutional.
Under this legislation for both cider and spirits, as a condition for obtaining a license for interstate shipping, the manufacturer must be licensed in a state that allows New York craft distillers and cider manufacturers to ship. If New York manufacturers don’t enjoy this right, the distiller from that state is shut out of the New York shipping market. So, Kentucky craft distillers can access the New York shipping market, while the Illinois craft distillers cannot.
The legislation has constitutional problems, the conditioning the license on reciprocity would violate the constitution and make a potential law prone to challenge.
Does New York fix the problem, does it leave the constitution hole, or is this an excuse for the governor to not approve the legislation? In remains to be seen, and although the initial victory is great, the game is not over until this becomes resolved!
European Spirits: Nielsen data: Improvement in European sales growth to c.-1%. Campari strong.
Staff – 06/17/2024 – CITI
EU Spirits volumes fell -2.5% in the 4 weeks to May 19th, a softer decline than the previous month at -4.8% despite c.570bps tougher comps. This leaves 12-week volumes down -3.1%. Industry price/mix moderated to +1.6% vs the previous month at +2.5% leaving overall industry sales down -0.9% (previous month -2.4%). Campari saw strong growth of +17.7%, while both Diageo (+0.1% vs -0.5%) and Pernod (-0.9% vs -1.2%) also improved. Rémy Cointreau sales grew +6.8%, softer than +8.9% in the previous 4-wks.
Market & category performance — GB sales were down -3.1% (vs -1.2% last month), with volumes down -6.0%. Spain sales were down -1.0% (+1.0%), with volumes down -1.8%. Italy sales grew +3.3% (-5.6%), with volumes up +0.9%. Germany sales grew +1.3% (-3.3%), with volumes down -1.1%. France sales fell -3.1% (-3.2%), with volumes down -3.8%. In the latest 4-wks, there were sales declines across each of Vodka (-2.1%), Rum (-0.2%), Whisky (-3.5%) and Gin (-4.6%), while Liqueurs grew +0.6%.
Diageo — Sales were up +0.1% in the last 4W, compared to -0.5% last month, on significantly tougher comps. This brings the 12W to -1.5%. Total European volumes fell -2.2% (12W -4.7%) and price/mix grew +2.3% (12W +3.4%). On a 2019 stack, sales growth was stronger at +28% vs +8% last month with the UK notably higher at +30% vs +6% last month. Value share was up +14bps in Europe.
Pernod — Sales in the last 4W were down -0.9%, after a -1.2% decline in the previous 4W despite notably tougher comps. The 12W sales growth trend is now running down -1.0%. Volumes were down -1.0%, with France down -8.2% and UK down -7.5%. Price/mix was flat. 2019 stack sales growth picked up to +12% vs +6% last month with Germany higher at +47% vs +13% last month. Market share was stable in the last 4W.
Campari — Sales grew by +17.7% in the last 4W. The 2019 sales stack jumped to 189 vs 136 last month. Volumes were up +14.0% and price mix grew +3.3%. In Italy, Campari’s sales grew +5.6% while the 4-yr sales stack rebounded to 135 (last month 96).
Rémy Cointreau — Sales grew by +6.8% in the 4W, compared to +8.9% in the prior period despite softer comps. The 2019 sales stack growth was up +18% vs +19% last month. Volumes grew by +8.9% and price mix fell -1.9%. Value share was up +4bps for the 4W period.
Scope of Nielsen data — Nielsen provides data for 5 markets in Europe along with the total Europe data which covers nine markets (Germany, France, Great Britain, Italy, Spain, Austria, Belgium, Netherlands and Portugal). While the coverage is different in each market, we estimate it covers c.80% of the European off-premise. We estimate that c.55-70% of Western Europe Spirits sales are made in the off-trade.
Is That Drink Worth It to You?
Staff – 06/18/2024 – NY Times
Alcohol is riskier than previously thought, but weighing the trade-offs of health risks can be deeply personal.
About a year ago, a friend of mine started evading my invitations to grab a drink. It was only when we caught up for a walk that she explained she wasn’t putting me off for any personal reason — it was just that she had stopped drinking. She wasn’t a heavy drinker — she had a glass of wine with dinner, the occasional Aperol spritz — but she’d been hearing on podcasts and reading in the news that even a small amount of alcohol was much worse for her health than had previously been understood.
My friend was picking up on a swing in the public-health messaging around alcohol. For many years, she might have felt that she was making a healthy choice in having a glass of wine or a beer with dinner. Right around the time when she came of legal age to drink, the early 1990s, some prominent researchers were promoting, and the media helped popularize, the idea that moderate drinking — for women, a drink a night; for men, two — was linked to greater longevity. The cause of that association was not clear, but red wine, researchers theorized, might have anti-inflammatory properties that extended life and protected cardiovascular health. Major health organizations and some doctors always warned that alcohol consumption was linked to higher cancer risk, but the dominant message moderate drinkers heard was one of not just reassurance but encouragement.
More recently, though, research has piled up debunking the idea that moderate drinking is good for you. Last year, a major meta-analysis that re-examined 107 studies over 40 years came to the conclusion that no amount of alcohol improves health; and in 2022, a well-designed study found that consuming even a small amount brought some risk to heart health. That same year, Nature published research stating that consuming as little as one or two drinks a day (even less for women) was associated with shrinkage in the brain — a phenomenon normally associated with aging.
Drinking increased during the pandemic, which may be why news of any kind about alcohol seems to have found a receptive audience in recent years. In 2022, an episode of the podcast “Huberman Lab” that was devoted to elaborating alcohol’s various risks to body and brain was one of the show’s most popular of that year. Nonalcoholic spirits have gained such traction that they’ve started forming the basis for entire nightlife guides; and more people are now reporting that they consume cannabis than alcohol on a daily basis.
Some governments are responding to the new research by overhauling their messaging. Last year, Ireland became the first country to pass legislation requiring a cancer warning on all alcohol products sold there, similar to those found on cigarettes: “There is a direct link between alcohol and fatal cancers,” the language will read. And in Canada, the government has revised its alcohol guidelines, announcing: “We now know that even a small amount of alcohol can be damaging to health.” The guidelines characterize one to two drinks a week as carrying “low risk” and three to six drinks as carrying “moderate risk.” (Previously the guidelines suggested that women limit themselves to no more than two standard drinks most days, and that men place that limit at three.)
No amount of alcohol is good for you — that much is clear. But one might reasonably ask: Just how bad is it? The information we receive on health risks often glide over the specifics of how much actual risk a person faces, as if those were not details worth knowing. These days, when I contemplate a drink with dinner, I find myself wondering about how much to adjust my behavior in light of this new research. Over the years, we’ve been told so many things are either very good or very bad for us — drinking coffee, running, running barefoot, restricting calories, eating all protein, eating all carbs. The conversation in my head goes something like this: “Should I worry? Clearly, to some degree, yes. But how much, exactly?”
The Trick of Defining ‘Low Risk’
Tim Stockwell, a scientist at the Canadian Institute for Substance Use Research, is one of the people most responsible for our cultural course correction on alcohol, a credit that’s all the more notable since he used to be convinced of its health benefits. Stockwell believed so strongly in the soundness of moderate drinking that he wrote, in a commentary in Australia’s premier medical journal in 2000, that skeptics on that subject might reasonably be lumped into the same category as “doubters of manned lunar missions and members of the Flat Earth Society.”
Not long after that, Stockwell received a phone call from Kaye Middleton Fillmore, a sociologist at the University of California, San Francisco, who told him that she had her doubts about the research that Stockwell considered so sound. Fillmore was concerned about possible misleading variables in the studies: To start, they included ex-drinkers in the category of “abstainers,” which meant they were failing to account for the possibility that some people had stopped drinking specifically because of illness. The moderate drinkers looked healthy by comparison, creating the illusion that a moderate amount of alcohol was beneficial.
Fillmore was looking for funding to prove her point, and after listening to her talk for a while, Stockwell was intrigued enough that he not only found her a source of funding but joined ranks with her. The results of this collaboration, published in 2006, confirmed Fillmore’s suspicions. Stockwell, increasingly convinced that an entire field of research suffered from the same fundamental error, continued with the line of research, work that led to the 2023 meta-analysis, which triggered many of the headlines and reappraisals we’re seeing now. Stockwell and his colleagues detected a statistically significant increase in risk for all-cause mortality — the risk of dying from any cause, be it medical or accidental — for women who drank just under two drinks a day and for men who consumed more than three a day.
Based on the research that formed the basis of Canada’s new guidelines, which he helped write, Stockwell walked me through the risks for a woman my age: If I indulged in, say, around six drinks a week, he said, I was increasing my lifetime risk of dying from an alcohol-related cause by a factor of 10, compared with those who drank about only one or two drinks a week. That jump sounded worrisome, until Stockwell put it in context. If I consumed six drinks a week, the risk I was facing of dying of some alcohol-related cause was still, by any measure, small on average — only about 1 percent. And if my risk of all-cause mortality was pretty low — Stockwell assured me that at 53, it was — then any incremental added risk on top of that was also clearly going to be very low.
Stockwell offered me another way of thinking about it, which is even more bottom-line oriented: How much time does a certain amount of drinking shave off your life? For those who have two drinks a week, that choice amounts to less than one week of lost life on average, he said. Consume seven alcoholic beverages a week, and that amount goes up to about two and a half months. Those who push five drinks a day or more face the risk of losing, on average, upward of two years, said Stockwell. He emphasized that all those numbers were averages — and that it was impossible to predict the level of impact an individual person would experience.
Stockwell might be expected to have the zeal of the convert, but his role in the Canadian working group suggests otherwise. He objected to the group’s decision to label one or two drinks a week “low risk” since it increased a person’s risk of mortality by a mere 0.1 percent, compared with those who didn’t drink at all. “I think the three-to-six-drinks-a-week category would be more like what I would call ‘low risk,’” Stockwell said. The language in such guidelines is somewhat subjective, he pointed out.
It can be hard to address the assumptions of the past without overcorrecting. An article in The Washington Post earlier this year, for example, ran with the headline “More Than One Alcoholic Drink a Day Raises Heart Disease Risk for Women.” The cardiologist behind the study, Jamal Rana, who is with the Permanente Medical Group, was quoted as saying that even young and middle-aged women who drank eight or more drinks a week and who binge drink “are at risk for coronary heart disease.” Women are at increased risk, based on his research, but his phrasing lacked context; it seems loaded with the intent of shaping behavior rather than fully informing people about how to understand that risk.
Asked about his findings, Rana acknowledged that the increased risk is, in fact, “small and incremental” — and emphasized that he considered his work important in that it further contradicted the notion that drinking was good for the heart.
Individual Risks vs. Collective Harms
The cultural grip of alcohol is so powerful, its symbolism as a source of pleasure so entrenched that even I, a halfhearted drinker at most, was nearly at a loss for figuring out how I would socialize with a dear friend if it wasn’t with a cocktail in front of each of us. Consider the millions of love affairs that would have gone unstarted but for a few drinks, the workplace rapport that can dramatically transform for the better after one fun night out at a bar. Bonding comes of that collective loosening, from the mutual decision that two or more people make to let go, even a little, in each other’s presence. “History shows that without good food and (often many) good drinks, very little international diplomacy gets done,” said J.T. Rogers, whose play “Oslo,” about the Oslo peace accords, reflected the role that alcohol played in building trust among figures taking great political risks.
Its outsize role in our culture is only one reason it is challenging to fit alcohol into the usual kinds of risk-benefit analyses that apply to so many routine choices. Most of those choices — like driving, or taking certain medications — have some practical offset that make the downsides justifiable; few of them are addictive. Alcohol is somewhat unusual in that its upside, most broadly conceived, is pleasure.
Alcohol’s risk profile also has an added layer: the direct risk posed to others. A woman who has two strong cocktails with friends or a man who has three beers on a night out may be more likely than someone sober to do harm to those around them — more likely to make an ill-advised left turn as another car is speeding their way; or to fail to notice, once home, that the baby has something in her mouth; or to have unsafe ---.
That’s why thinking about alcohol in terms of your own individual risk is a limited exercise, says Jim McCambridge, chair in addictive behaviors and public health at the University of York in England. He encourages the public to think instead about the number of lives lost globally to alcohol, which research puts at about three million a year. (For perspective, that’s about four times more than the number of women who die of breast cancer every year.) Individual risk associated with moderate consumption may be small, but across the population, the damage of alcohol is vast because the number of people who consume it is so high. Even as drinking has declined among young people in the United States and Britain, among those middle-aged and older, and among women, consumption is up.
The Centers for Disease Control and Prevention has reported that alcohol-related deaths in the United States each year have, if anything, increased. They compared data from 2020-21 with data from 2016-17 and found a rise of 29.3 percent, which they largely attribute to the pandemic, the greater availability of alcohol and its recently dropping cost when adjusted for inflation: The last time a federal tax increase was put on alcohol was 1991, and taxes on some spirits were actually cut in late 2020. “Any sentence about drug policy that doesn’t end with ‘raise alcohol taxes’ is an incoherent sentence,” the influential drug-policy researcher Mark Kleiman once told The Washington Post, pointing out that at that time, if you tripled the alcohol tax, you would have 6 percent fewer homicides without putting a single additional person in prison.
The more I thought about alcohol and its collective harms, the more I questioned why I drank at all. I briefly resolved to limit myself to just a drink or two a week, but alcohol was like a friend who kept turning up in my life despite my ambivalence, tugging at my attention at a graduation party or a gathering with friends to celebrate some good news. One function that drinking plays in so many people’s lives — and one reason it’s so heavily associated with important life events, like weddings and wakes — is that it’s a way to turn off the part of our brains that unhappily obsesses over rational calculations, allowing us to feel like we’re living in the moment, even as we’re blaming ourselves for not finding another, healthier way to do so.
I recently went to an annual neighborhood party where mixed drinks, beautifully presented with garnishes and frozen melon balls for ice, were on offer. I sipped on something strong and sweet, trying to remember if I’d had one or two glasses of wine the night before. I sat for a bit with the friend who had told me weeks earlier that she was abstaining altogether, partly as a way to hold myself accountable. I left on the early side and texted her the next day to debrief about the night.
“I drank!” she wrote back. “Too much!
French spirits exports tumble ahead of worsening trade conflict
MSN – 06/13/2024 – Reuters
French spirits sales and exports have dropped sharply this year as consumers continued to cut back spending, the industry lobby said on Thursday, warning that looming trade barriers could further hurt the sector.
Cognac makers said on Wednesday they were "deeply" worried about an anti-dumping probe launched by Beijing in January, after the European Commission imposed tariffs on imports of Chinese electric vehicles.
Total spirits exports dropped 13% in volume last year to 406 million litres and 12% in value to 4.8 billion euros ($5.2 billion), with sales to the U.S. collapsing 36% in value and 35% in volume, the Federation Francaise des Spiritueux (FFS) said.
Cognac exports, which account for 70% of total French spirits exports, plunged 21% in volume in 2023. China accounted for 19.4% of cognac exports in 2023, according cognac producers.
"The consequences of inflation in third countries are now giving way to ongoing trade conflicts whose resolution is threatened," FFS said in a statement, citing the United States with uncertain presidential elections and China's anti-dumping investigation.
Shares of Remy Cointreau which earns significant revenue in the Asian market, were down more than 6% on Thursday, to the lowest level in more than 7 years. Pernod Ricard was also lower although at a lesser extent.
In 2024, two thirds of spirits exports in value were being shipped to high-risk markets, the FFS said.
Alcohol demand has also fallen sharply in France in the past years, shedding 60% over 60 years.
Spirits sales in major retail outlets shed 10% since 2020 and 4.3% in 2023 only to 251 million litres, FFS said.
"The first months of 2024 leave an even more bitter taste: the decline in volumes is around 5% compared to the previous year and marks an accelerating downward trend," it said.
Some types of spirits used in cocktails, such as gin, were spared but digestives collapsed with whiskeys falling 6.4% and rums 3.8%.
4th Circ. Revives Bacardi Fight Over Expired TM Renewal
Staff – 06/16/2024 – Law 360
The Fourth Circuit on Thursday revived Bacardi's lawsuit challenging the U.S. Patent and Trademark Office's decision to renew an expired trademark registration for Havana Club rum, finding such registration renewals can be reviewed by the courts.
In a published opinion, a three-judge panel ruled the Lanham Act does not prevent the courts from weighing in on trademark renewal decisions like the one challenged by Bacardi. In doing so, the panel reversed a Virginia federal judge's ruling dismissing Bacardi & Co. Ltd. and Bacardi USA Inc.'s case against the USPTO.
The decision breathes new life into Bacardi's claims under the Administrative Procedure Act that the USPTO flouted its own regulations by renewing a trademark for Havana Club a decade after it expired.
"Through the APA, Congress has entitled persons aggrieved by agency actions to challenge those actions in court," Judge Allison Jones Rushing wrote for the Fourth Circuit. "Following the Supreme Court's direction, we will not lightly infer that other statutes rescind that entitlement."
Bacardi has been locked in a decades-long battle to take back ownership of the trademark for Havana Club, which is held by a company controlled by the Cuban government that does business as Cubaexport.
According to Thursday's opinion, the Havana Club mark originally belonged to a Cuban family that exported rum to the United States dating back to at least the 1930s. Cuba's communist government allegedly seized the family's assets in the 1960s, and the government later registered the Havana Club mark for itself in 1974 when the old registrations expired, the Fourth Circuit said.
The family later sold its interest in the Havana Club mark to Bacardi, which has been trying to cancel Cubaexport's registration of the mark since 2004, the opinion states. That long-running litigation is centered on the Trademark Trial and Appeal Board's denial of Bacardi's cancellation petition.
The present appeal, however, hinges on a separate issue: the expiration of Cubaexport's trademark registration in 2006 when the company was unable to pay the required renewal fee due to a trade embargo. The renewal was held up for 10 years while Cuba's export business challenged the need for it to acquire a special license related to the trademark, which the U.S. government ultimately granted in January 2016.
At that point, Cubaexport paid the fee and the then-director of the USPTO granted its renewal of the Havana Club trademark, according to Thursday's opinion.
Bacardi challenged that decision under the APA in Virginia federal court, claiming that the registration had expired and that the director went beyond her statutory authority and acted contrary to federal law when she allowed the renewal 10 years after the fact.
The court ultimately dismissed the suit for lack of subject jurisdiction, finding it to be a rare instance in which Congress did not intend to allow judicial review of an administrative action. Instead, the federal district court judge said the proper recourse under the Lanham Act for a third party claiming problems with a registration would be to file a cancellation proceeding.
But the Fourth Circuit disagreed, saying there's nothing in the act that "expressly precludes judicial review of the PTO's trademark registration renewal decisions."
In fact, the panel said, the act specifically allows aggrieved parties a right of appeal, and the only mention of renewals similarly "authorizes, rather than forecloses, judicial review."
"It is silent about whether a third party may seek judicial review of the PTO's decision to grant a renewal application and certainly includes none of the typical language foreclosing judicial review," Judge Rushing wrote.
The Fourth Circuit also noted there is an important distinction to be made in Bacardi's present appeal, which is not centered on an initial decision to register or cancel the trademark. If that were the case, the Lanham Act's clear procedures for cancellation might well preempt APA review, the panel said.
But here, Bacardi specifically challenged a renewal decision, which the Fourth Circuit found to be "statutorily distinct."
"In this lawsuit, Bacardi does not seek relief based on substantive disagreements regarding Cubaexport's right to register the Havana Club mark," Judge Rushing said. "Nor does Bacardi ask the court to resolve the parties' competing claims over ownership of the Havana Club mark."
"Rather, Bacardi seeks to set aside the director's allegedly unlawful action of renewing Cubaexport's trademark registration in disregard of the statutory time limits," she continued.
The Fourth Circuit consequently reversed the district court's order of dismissal and remanded for further proceedings.
"Bacardi is pleased with the Fourth Circuit's opinion that its case can proceed at the district court level to prove that Cuba's ill-gotten Havana Club trademark expired in 2006 and should have been stricken from the trademark registry at that time," counsel for Bacardi told Law360 in a statement.
A spokesperson for the USPTO declined to comment Thursday.
Judges Allison Jones Rushing, Julius N. Richardson and Diana Jane Gribbon Motz sat on the panel for the Fourth Circuit.
Bacardi is represented by David Meir Zionts of Covington & Burling LLP, and Michael C. Lynch and Damon W. Suden of Kelley Drye & Warren LLP.
The USPTO is represented by its own Thomas W. Krause, Christina J. Hieber and Beth Walker, as well as Nicholas Steven Crown, Brian M. Boynton and Daniel Tenny of the U.S. Department of Justice's civil division, and Jessica D. Aber of the U.S. Attorney's Office for the Eastern District of Virginia.
The case is Bacardi & Co. Ltd. et al. v. United States Patent & Trademark Office, case number 22-1659, in the U.S. Court of Appeals for the Fourth Circuit.
Keel joins Newport Craft Distilling
Lauren Bowes – 06/16/2024 – The Spirits Business
Newport Craft Distilling has acquired Rhode Island-based brand Keel for an undisclosed sum.
Keel will join the firm’s portfolio, which includes White Squall vodka and gin, Sea Fog Whiskey, and Thomas Tew Rum.
Founded by Bill Dessel, Tom McGowan and Matt Light, the brand describes itself as a ‘premium light vodka’, as its ABV sits at 23.8%. A spirit must be bottled at 40% ABV to be described as vodka in the US.
Although the company was founded in Rhode Island, the spirit is produced out of state. The transaction will bring production in state.
“The Keel team has found the perfect partner in Newport Craft to help take Keel to the next level,” said Dessel.
“It has always been a dream of ours to produce our product, that was conceived in Rhode Island, in our home state. With this transaction, we can finally accomplish that dream.
“I am excited to get to work alongside the team at Newport Craft, in continuing to spread the Keel story to new consumers looking to have a more balanced social life.”
The spirit is made from locally sourced Idaho potatoes and water sourced from the Rocky Mountains through an aquifer that runs under the distillery.
“We’re thrilled to welcome Keel into the Newport Craft family,” said Brendan O’Donnell, Newport Craft CEO.
“This acquisition represents a powerful synergy of passion, expertise, and a shared love for exceptional spirits. The combination of these brands will meaningfully enhance the efforts of both companies and we can’t wait to see what Bill and Keel can do in partnership with Newport Craft.”
In other lower-ABV spirits news, Quarter Proof rebranded and adapted its products due to labelling guidelines, and launched a Three Grain Spirit bottled at 15% ABV.
Until the next newsletter!
Federico Hernández - The Rum Lab