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The U.S. market’s top super-premium liqueur brand has a new owner. As Shanken News Daily reported earlier today, Italy’s Gruppo Campari has agreed to acquire Grand Marnier through a friendly takeover. Campari America will now handle the liqueur brand, effective July 1. Grand Marnier’s current U.S. marketer is Moet Hennessy USA.
Grand Marnier has U.S. volume of nearly 500,000 cases. Retailing at around $40 a 750-ml., it dominates the super-premium liqueurs tier, defined by Impact Databank as being at $25 and above. Second-ranked Cointreau has roughly half the U.S. volume of Grand Marnier, although Cointreau has enjoyed solid growth in recent years while Grand Marnier essentially has been flat.
It’s no secret that E.&J. Gallo Winery and Constellation Brands are powerhouses in the U.S. wine market. Indeed, the two companies comprise more than 35% of the market’s volume, according to Impact Databank. When it comes to fast-rising brands, Gallo and Constellation are especially prominent, accounting for nine of this year’s 20 domestic wine “Hot Brands.”
At more than 18 million nine-liter cases, Gallo’s Barefoot Cellars is easily the largest player on this year’s Hot Brands list. Barefoot’s sustained success is driven in part by its accessible pricing and approachable image. “(Barefoot Cellars) continues to resonate with consumers who share our belief that wine should be fun, less serious and always varietal-correct,” says Stephanie Gallo, vice president of marketing for E.&J. Gallo Winery.
Gallo boasts six domestic wine Hot Brands, with Liberty Creek, Apothic, Dark Horse, Carnivor and William Hill Estate all returning to the list from last year. Dark Horse—which only expanded its reach nationwide last spring—has grown at a particularly breakneck pace, jumping from 5,000 cases in 2012 to 875,000 cases last year, according to Impact Databank. Retailing at around $10, Dark Horse is led by its Cabernet Sauvignon, and also includes Chardonnay, Merlot and a red blend. Another Cabernet Sauvignon-focused range, Carnivor ($15 a 750-ml.) is also demonstrating significant gains—up more than 50% in 2015—thanks in part to its strong appeal among Millennials. And at the higher end, Gallo’s William Hill Estate (around $17- $60) is showing similar double-digit traction.
Constellation has three domestic wine Hot Brands, including Black Box ($24.99 a 3-liter box). The brand, which features nine varietals and a red blend, topped 4 million cases in 2014 and added another 400,000 cases last year. Black Box has also launched select varietals in a 500-ml. Tetra Pak format.
Meiomi, which Constellation purchased from Joe Wagner’s Copper Cane Wines & Provisions for $315 million last year, also earned Hot Brand status. Launched in 2009, the brand sold an impressive 90,000 cases in 2010—its first full year on the market. Meiomi—which retails at around $25 and is best known for its flagship Pinot Noir—has continued to thrive, with the brand up 58% to 790,000 cases in 2015.
Also posting strong progress is Constellation’s The Dreaming Tree, which debuted 2011 in collaboration with musician Dave Matthews and is poised to cross half a million cases. Retailing at $15 a 750-ml., the California brand has carved out a niche among eco-conscious consumers, playing up the fact that its bottles are 50% lighter than the average wine bottle and feature sustainably grown cork and labels made from 100% recycled paper.
•The Fresh Market retail chain has agreed to be acquired by private equity Apollo Global Management for $1.36 billion, a 24% premium over the company’s Friday closing price. Kroger had been in the hunt for The Fresh Market, along with KKR and TPG Capital. North Carolina-based The Fresh Market, which competes with Whole Foods, has 186 stores across 27 states, mainly in the Southeast.
•Albertsons is set to acquire bankrupt competitor Haggen’s 29 stores in the Pacific Northwest for $106 million. Albertsons plans to operate 15 of the stores under the Haggen’s name, while converting the rest to its own banner.
•Lodi, California-based SIP Moscato has debuted a new California rosé extension. Rolling out nationwide this month, SIP Rosé is made in a French style from 100% Pinot Noir, retailing at around $15 a 750-ml. Launched in 2012 by wine industry veterans Tyson Rippey, Barry Gnekow, Joseph Smith and Mark Albrecht, the SIP brand is marketed in the U.S. by Sonoma’s Vintage Point. SIP Rosé’s rollout comes as the rosé segment surges in the U.S., with the category up 28% in the 52 weeks ended January 30, according to Nielsen.
•Colorado’s Oskar Blues Brewery has acquired Tampa, Florida-based Cigar City Brewing for an undisclosed sum. Under the deal, Cigar City founder Joey Redner will remain CEO of the brewery. Established in 2009, Cigar City is known for its Jai Alai IPA, Tampa-Style Lager and Florida Cracker labels and produced nearly 60,000 barrels in 2015. Oskar Blues, which operates breweries in both Longmont, Colorado and Brevard, North Carolina, produces around 192,000 barrels annually, with plans to expand with a third brewery in Austin, Texas this May. Last year, Oskar Blues partnered with private equity firm Fireman Capital Partners, and also acquired Comstock Park, Michigan-based craft brewer Perrin Brewing Company.
•Brooklyn-based Sixpoint Brewery has partnered with Guardian Distributors of Los Angeles to enter the L.A. metro market, marking its initial foray into California. The initial late-March launch will include both draft and cans of Sixpoint beers Sweet Action (ale) and The Crisp (pilsner), while Resin (double IPA) will be draft-only and Bengali IPA, Hi-Res (triple IPA) and C.R.E.A.M. (coffee blonde) will be available in cans only.
•Lenexa, Kansas’ Union Horse Distilling Company, formerly known as Dark Horse Distillery, is launching a Reunion Straight Rye Whiskey and Reserve Straight Bourbon Whiskey. The small-batch, copper pot-distilled offerings are aged up to five years. Reunion (93 proof) is a 100% rye whiskey, while the Bourbon (92 proof) is distilled from a sour mash recipe. The newcomers join Long Shot White Whiskey and Rider Vodka in Union Horse’s craft spirits portfolio. Union Horse’s offerings are available in Kansas, Missouri, Nebraska, Iowa, Connecticut, New Jersey and New York.
•Portland, Maine-based Peak Organic Brewing Company is releasing a new spring seasonal, High Note Belgian White Ale. High Note is made with the Warthog wheat variety from Oechsner Farms in Newfield, New York, as well as lemongrass, orange peel and coriander. High Note follows last spring’s launch of Peak Organic White Nitro and will be available this March and April on draft and in six-packs of bottles. Peak Organic produces 25 beers, such as IPA, Fresh Cut, Summer Session and Simcoe Spring, among others.
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