Dear Friend: There are some great items in today's issue of Shanken News Daily. We didn't want to you miss out. First read today's issue. Then sign up and get the best deal available! You'll receive late-breaking news, exclusive interviews, and data you can't find anywhere else. Look for it in your inbox, first thing every weekday morning! You'll also receive Breaking News Alerts, and have access to ShankenNewsDaily.com. Take advantage of this very special offer: Get your first 30 days for just $1! Your friends at Shanken News Daily P.S. If you already receive Shanken News Daily, you don't have to do anything. We hope you continue to enjoy it. Constellation Sales Up 6% To $2 Billion In Fiscal First Quarter, Despite Wine And Spirits Slowdown Constellation Brands enjoyed a strong start to its fiscal year, reporting a 6% net sales rise to just over $2 billion in the three months through May. Operating income, however, was down 4% to $638 million on a comparable basis, as the group’s wine and spirits unit showed some softness. Constellation’s wine and spirits sales were down 2.5% to $672 million on the same period last year, as shipments fell 2.9%. Still, the company cited strength within its high-end wine stable, with focus brands like California’s Meiomi and New Zealand’s Kim Crawford continuing to make progress. Meiomi was up 11% to nearly 1.2 million cases in the U.S. last year, according to Impact Databank, as Kim Crawford rose 10% to 1.3 million cases. Constellation’s beer portfolio, however, continued to surge, led by its fast-growing Mexican import business. Boosted by the Modelo and Corona brands, the group’s beer shipments increased 8.6% to nearly 78 million cases in the first quarter, as sales surged 11% to close to $1.4 billion. Constellation CEO Rob Sands also credited “the successful execution and momentum of our new product introductions, including Corona Premier and Familiar,” as major contributors to beer’s solid first-quarter growth. The Corona Extra (+3.2% to 126.4 million cases), Modelo Especial (+17.2% to 97.7 million cases), Corona Light (+0.3% to 16.5 million cases), Pacifico (+18.6% to 9.3 million cases), Negra Modelo (+15.9% to 5.4 million cases), and Modelo Especial Chelada (+39.7% to 5.4 million cases) labels all posted robust gains in calendar 2017, according to Impact Databank. With Play For Codorníu, The Carlyle Group Strikes Its Second Wine Deal Of 2018 The Carlyle Group, one of the world’s biggest private equity firms, has made its second acquisition this year in the premium wine space, yesterday agreeing to purchase a majority stake in family-owned Cava producer Codorníu Raventós Group. The deal, which is still subject to due diligence and regulatory approval, values Codorníu Raventós at €390 million ($454m). The Spanish company’s holdings include 10 wineries across Spain, Argentina, and California—including its flagship Codorníu Cava estate—and more than 3,000 hectares of vineyards. Earlier this spring, Codorníu Raventós reportedly spurned an offer from Carlyle, though the winemaker was courting buyers after a portion of its 216 shareholders announced plans to sell. The company reported €236 million ($274.7m) in revenue for the year ending June 2017. In the U.S. market, it operates through its wholly-owned subsidiary, Aveníu Brands. Much of the company’s recent focus in the U.S. has centered on its Anna de Codorníu range, an offshoot of its core Codorníu brand that’s positioned at the $10-$15 tier. In a statement, Carlyle Europe Partners managing director Alex Wagenberg said that his firm would look to grow Codorníu Raventós’s global footprint, “both organically and through acquisitions.” In April of this year, the Carlyle Group acquired Australia-based Accolade Wines from fellow private equity firm CHAMP for A$1 billion ($770m). The Accolade portfolio, which totals around 35 million cases globally, includes Hardys, Banrock Station, and other brands from Australia, as well as California’s Geyser Peak. The Codorníu deal comes as Cava volumes have been outpaced by other sparkling wine categories in recent years—most notably Champagne and Prosecco. In the U.S. market, the total sparkling wine category was up 3% to just over 21 million 9-liter cases last year. Champagne’s U.S. volumes grew by 5% to 1.5 million cases last year, while Prosecco shipments were up 5% to 5.5 million cases. Cava, meanwhile, saw its shipments decline slightly, to around 1.75 million cases. News Briefs: •Three weeks after Napa’s June 5 election, the Napa County Registrar of Voters has finally certified the results of the tight race on Measure C, the ballot proposal that could have restricted vineyard development in Napa’s watersheds. The controversial measure was voted down by a slim margin of just 641 votes out of 35,707 cast. But the war over Napa’s future is far from over. C supporters have promised to propose a new ballot initiative. Opponents are asking for both sides to work with county officials to address any concerns over the wine industry. Wine Spectator has the full story. •Southern Glazer’s has named Patrick Cassidy executive vice president, general manager of Florida, effective July 1. He replaces Gene Sullivan, who was promoted to the role of president, East Region earlier this year. Prior to the appointment, Cassidy most recently served as Southern Glazer’s South Florida vice president and general manager. Cassidy will report directly to Sullivan in his new role. •The Wine Group’s Cupcake Vineyards has added Cupcake Butterkissed Chardonnay to its permanent lineup. The wine, which first launched as a limited edition offering in 2015, is a more buttery and heavily oaked version of Cupcake’s flagship Chardonnay. Retail priced at $11 a 750-ml., Cupcake Vineyards Butterkissed Chardonnay is available nationwide and joins 11 other wines in the year-round Cupcake portfolio. Craft Brewing And Distilling News: •Boston, Massachusetts-based Bully Boy Distillers has launched a new small-batch gin. The 45%-abv spirit is made from a sugar cane base and infused with Italian Juniper, ginger, blueberry, grapefruit, coriander, and chamomile, among other ingredients. Bully Boy Gin is now available in Massachusetts, Rhode Island, New Hampshire, Maine, and Connecticut for a suggested price of $30 a 750-ml. •Sapporo’s Anchor Brewing Company has released its flagship Anchor Steam Beer in 19.2-ounce cans. The 4.9%-abv beer is a hybrid of a lager and an ale, fermented with lager yeast at ale temperatures. Anchor Steam Beer is now available in 4-packs of 19.2-ounce cans as well as on draft and in 12-ounce bottles. The new packaging marks the first time Anchor Steam has been offered in cans. Sapporo acquired Anchor for $85 million last year. Recently in the News: Rum Moves To The High End In U.S. Market Wine Spectator: E. & J. Gallo Buys Dave Phinney’s Locations Wine Brand Concha y Toro Consolidates U.S. Portfolio With Fetzer Vineyards Subsidiary | |