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Off-Premise Spending Increased in 2018

In the off-premise, total spending on food and beverage has increased 4.29 percent for the year through August, with spending on alcohol growing slightly slower than the overall food and beverage category at 4.15 percent. Beer still accounts for the most dollars spent off-premise on alcohol, but is growing slightly slower than wine and spirits. Beer sales increased by 4.13 percent, wine increased by 4.14 percent and spirits increased the most up 4.19 percent in the last year. Liquor stores showed a large increase in both on and off-premise outlets to 5.48 percent in the last year. Warehouse clubs and supercenters were also up in the 5 percent while supermarkets and grocery stores were up 3.56 percent for the year. Source: winespiritdaily.com, October...

On-Premise Spending Accelerates in 2018

Total spending on-premise increased up to 9.2% in August. Alcohol beverage accounts increased total spending on-premise for about 25%-26% and nearly 8% for the period. For the year, full service restaurant sales increased by 4.7%, while limited service restaurants increased by 2.8%. Source: winespiritdaily.com, October...

TTB: Avoiding Common Errors on Alcohol Beverage Labels

The government of health warning statements is one of the most common problems the TTB sees on alcohol beverage labels that causes them to have to send those COLA applications back for correction is errors in the mandatory health warning statement, including punctuation and formatting problems. The following health warning statement must appear on all alcohol beverages for sale or distribution in the U.S. that contain 0.5 percent or more alcohol by volume: GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. See the regulations in 27 CFR part 16 for the full rules about how to meet the health warning statement labeling requirements and speed your label approval process. Source: TTB, October...

Byrd v. Tennessee: Supreme Court Revisit The Case Of Interstate Wine and Spirits Shipping

The U.S. government is willing to reevaluate how wine and spirits are sold, both within and between various states in the country after 10 years of speculation. The case of Tennessee Wine and Spirits Retailers Association v. Clayton Byrd (Tenn. v. Byrd) is the second time a process like this has passed by the Supreme Court since the repeal of Prohibition in 1933. The U.S. government decided to regulate alcohol sales was by giving each state the right to decide how wine and spirits were sold within its borders after Prohibition was repealed. As a result, the legal arrangement in every state has a fractured method of handling the sales and shipment of alcohol. Washington and Pennsylvania among other states have a set up control state monopolies where the government is charged with the sales alcoholic beverages. Since then Washington and other states have since privatized their wine sales model. Byrd v. Tennessee was initiated by Total Wine & More’s desire to expand and open a retail location in Tennessee. According to state legislation, the chain is not be permitted to do unless the owners are residents of the state. The case will reevaluate the legal process for alcohol interstate shipping. Retailers, with brick-and-mortar locations in distant states, had long been allowed to ship into other states set in motion by the 2005 Supreme Court case of Granholm v Heald. Technically, wineries are still legally allowed to ship into multiple states because of Granholm but a legal loophole pursued by wholesalers and in-state retailers have made it difficult to hit the market by out-of-state stores.   Source: Forbes, October...

American brandy is on the rise

Brandy refers to a variety of spirits such as Cognacs and Armagnac, since they are distilled from grape wine, while Calvados and other apple brandies are distilled from cider, and other fruit brandies are derived from berries and tree fruits. The brandies considered to be the most popular are those that are barrel-aged since they turn a brown color and have a strong aroma. To further popularize California brandy, there has been a push for it in the cocktail scene. By pushing more brandy into the cocktail world, this could lead to more inclusion to drink recipes as opposed to the common use of whiskey or rum. In addition to that, educating consumers by emphasizing the “terroir” of brandy, similar to that of California wine, has proven successful. Another implemented strategy was to create a “straight brandy” category similar to straight bourbon, with additional legal requirements regarding production, to help drive the premium association. Source: WSJ, October...

California Wineries will be allowed to post photos to social media ahead of special events

Gov. Jerry Brown signed into law on September 22nd assembly Bill 2452 allowing wineries and alcohol producers the opportunity to post pictures on social media of the venue before the event. The bill was introduced to update the rule that prohibited alcohol producers from posting pictures of a venue hosting an alcohol marketed event, such as a wine tasting. Source: winebusiness.com, October...

Pernod Ricard Renews Distribution Agreement with Republic National Distributing Company

The world’s 2nd largest wine and spirits company, Pernod Ricard USA, announced today a renewed distribution agreement with Republic National Distributing Company (RNDC), the nation’s second largest distributor of wine and spirits. The contract, effective as of July 1, 2018 extending through June 2024, reaffirms the long-lasting partnership between the two companies. RNDC will distribute Pernod Ricard’s brands in Louisiana, Maryland, Nebraska, North Dakota, Oklahoma, South Dakota, Texas and Washington D.C. It will include wine and champagne portfolio to Georgia, Michigan and Virginia. Source: webershandwick.com, October...

TTB Announcement

UPDATED PROCEDURE ISSUED: VOLUNTARY CHEMIST CERTIFICATION PROGRAM On September 24, 2018, the TTB Procedure 2018-2 regarding the procedures followed for the Chemist Certification Program for the analysis of wine, distilled spirits, and beer for export. Under that program chemists in the private industry are certified to analyze specific tests as listed in TTB Procedure 2018-2. Many countries accept a report of analysis of alcohol beverages from a TTB-certified chemist accompanying the export shipment as a condition of entry. Initial certification is valid for two years and re-certification is required at the expiration of the two-year period. TTB Procedure 2018-2 revises TTB Procedure 2010-1 by: Incorporating certification guidelines and information for analyses of beer for export; updating eligibility guidelines for applicants; and establishing processes for TTB audits of certified chemists and revocation of certification. Source: TTB, October...

Wine and spirits hit $11.3 billion in travel retail

Generation Research data revealed that sales of wines and spirits in duty free and travel retail amounted to $11.3 billion, an increase of 8.5 percent in 2017. TFWA World Exhibition & Conference provided the platform to further state that duty free and travel retail sales increased by 9.5 percent amounting to $69.3 billion. Asia Pacific has been a major driver to this growth hitting sales to up to $30 billion, an increase of 12.6 percent compared to 2016. Source: thespiritsbusiness.com, October...

Wine Trends: Boxed & Sparkling Wine increasing in sales in H1

Box wine dominates convenient stores for the first half of the year. Sales of domestic premium boxed wine increased by 23 percent throughout the first 6 months, and gained 1.5 dollar share points. Boxed wine represents up to 10 percent of the convenient store wine share, according to IRI. Boxed wine has gone up to 15 percent in the food/grocery channel up until June, and added .50 a dollar share point to the collection only making up 5 percent of the channel. Sparkling wine sales increased by 11 percent in the first half of the year, and was driven by super premium ranging in the $13-$18 prices and ultra-premium in the $18-$34 prices. Super premium increased sales by 17 percent in the category, adding nearly a whole dollar share point. Ultra-premium sales increased by 24 percent and gained 0.6 dollar share points. Other sales increases in the category: Popular ($0-$8) segment grew sales by 5%. Premium ($8-$13) segment increased sales by 10%. Super premium ($13-$18) segment grew sales by 17%. Ultra ($18-$34) segment grew sales 24.5%. Luxury ($35+) segment grew sales 12%.   Source: Wine & Spirits Daily, July...