Archive for January, 2013

New Wines In Dispenser To Try-Roblar Winery

January 31, 2013
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Roblar Winery

Roblar Winery

Roblar Winery

Nestled in an oak tree-studded 40-acre vineyard,
Roblar Winery is located in the heart of Santa Barbara County.
Roblar’s winemaking team is led by Kerry Damskey,
whose reputation for acuity and focus in creating excellent wines spans four continents.
Their estate-grown varietals include Sauvignon Blanc, Merlot, Syrah, Cabernet Franc,
Tempranillo, Sangiovese, Grenache and Semillon—a key varietal used in many  blends.
They also source grapes from other carefully chosen parts of Santa Barbara County,
including the Santa Rita Hills and the Arroyo Seco Valley, where cooler growing climates create richer,
more concentrated flavors in Pinot Noir and Chardonnay varietals. 

2009 Cabernet Sauvignon Santa Barbara County
These Cabernet Sauvignon grapes were grown in the warmer eastern end of the Santa Ynez valley.
The warmer climate (less time each day in the fog) allows the depth and richness of flavor to fully develop
in the late-ripening Cabernet Sauvignon variety. This wine has flavors of plum and dark cherry,
with a lively spicy/peppery accent. A full body wine with well-structured tannins.
90% Cabernet Sauvignon
10% Petite Verdot

Cabernet Sauvignon

Cabernet Sauvignon

750ml $24.99

2010 Estate Merlot
Limited Production – Only 200 Cases Made!
This estate vineyard is located in the heart of the Santa Ynez Valley two miles south of the town of Los Olivos.
The mild climate tempered by foggy mornings, combined with the long growing season
(the southern latitude makes for longer days, more sun and warmth in October and November),
allows our grapes to fully develop structure and complexity while retaining fresh and bright fruit flavors.
The Merlot grapes from our estate vineyard typically exhibit very rich cherry and plum flavors.

The Merlot is bursting with red fruit, cherry, and plum flavors on the forefront with a mid-palate filled with dark fruits and cedar.
Lingering flavors of cassis and cherry compliment the oak on a soft tannin structure.
This heavy bodied wine with rich dark flavors makes for an excellent wine to be enjoyed on its own or with lamb or steak.
Pair this Merlot with maple sage pork sausage with port wine caramelized shallots and apples.
96% Merlot
4% Cabernet Sauvignon

Merlot

Merlot

750ml $17.99

2010 Pinot Noir, Russian River Valley
Aromas: Rich aromas of raspberry and blueberry, with tones of vanilla and Santa Rosa plum
Palate: Concentrated flavors of blueberry, raspberry and plum, lush mouthfeel and full fruit finish
The last vintage of this sold out in one week for us!!
GREAT PINOT NOIR!!
15 Months in Oak.

Pinot Noir

Pinot Noir

750ml $21.99

Visit Roblar’s Website:
http://roblarwines.ewinerysolutions.com/

Everyday Wine Discount For 750ml’s

10% Off On 6

20% off on 12

Liquor Industry News 1-30-13

January 30, 2013
www.franklinliquors.com

Franklin Liquors

SABMiller CEO Says Beer Deals Slowing Amid High Multiples

 

Source: Bloomberg

By Duane D. Stanford

Jan 29, 2013

 

Global beer acquisitions by big brewers have slowed because the prices paid have skyrocketed, SABMiller (SAB) Plc Chief Executive Officer Graham Mackay said.

 

“The last few have been at unthinkable levels,” Mackay said at a conference in San Antonio hosted by Beer Business Daily. “It’s hard to see how most of the potential deals can be worth it.”

 

He didn’t specify what potential deals he was referring to.

 

Global brewers have used acquisitions to expand into new markets in recent years. Including net debt, Anheuser-Busch InBev NV (ABI) last year agreed to buy the remainder of Mexico’s Grupo Modelo SAB for $17.1 billion while Heineken NV (HEIA) last year bought Fraser & Neave Ltd.’s stake in their Asia Pacific Breweries Ltd. (APB) joint venture for about $4.36 billion, according to data compiled by Bloomberg.

 

Those deals followed London-based SABMiller’s 2011 purchase Foster’s Group Ltd. in Australia for about $13 billion, including net debt.

 

AB InBev is valuing Modelo’s enterprise value at 13 times earnings before interest, taxes, depreciation and amortization, while Heineken is paying 17 times F&N’s Ebitda, according to data compiled by Bloomberg.

 

Mackay also said he believes Anheuser-Busch’s purchase of the rest of Modelo will be approved by U.S. regulators. Any concessions won’t derail the deal, he also said.

 

Mackay declined to say whether he expected a deal between Anheuser-Busch InBev and SABMiller.

 

“Our job is to make our business as expensive as possible to buy,” he said.

 

Share Gain

 

SABMiller shares rose 27 percent in the 12 months through yesterday, boosting the company’s market value to 49.3 billion pounds ($77.7 billion).

 

Last week, the world’s second-biggest brewer reported organic revenue that beat estimates for the third quarter as consumers opted for pricier beers.

 

Revenue at the maker of Grolsch and Peroni rose 8 percent on an organic basis, which excludes the effects of acquisitions and disposals, the London-based company said in a statement. That was ahead of the 6.5 percent median estimate of 11 analysts surveyed by Bloomberg News.

 

 

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COTTAGE GROVE MAN SENTENCED TO FEDERAL PRISON FOR $879,000 TAX FRAUD

 

Source: TTB

Jan 29th

 

Defendant filed more than 70 false federal excise tax returns on behalf of his business, Side Pocket Food Company, and owes more than $879,000 in federal excise taxes

 

Today, Chief U.S. District Court Judge Ann Aiken sentenced William Myers, 66, of Cottage Grove, Oregon, to serve one year and one day in prison for failing to pay $879,000 in federal excise taxes and for filing more than 70 false federal excise tax returns on behalf of his company, the Side Pocket Food Company. Upon release from prison, the defendant must serve three years of supervised release, including 100 hours of community service each of the three years and pay restitution in the amount of $873,186.88. Pursuant to a plea agreement, defendant admitted that he owes more than $879,000 in federal excise taxes and filed more than 70 false excise tax returns. Additionally, defendant was operating an illegal still inside the company warehouse.

 

According to court records, the Side Pocket Food Company is a distilled spirits plant, primarily in the business of blending and bottling distilled spirits, in Cottage Grove, Oregon. It purchases bulk alcohol and bulk distilled spirits from manufacturers or bulk distillers, and the Alcohol and Tobacco Tax and Trade Bureau (TTB) issued the company an operating permit to operate as a rectifier (processor), warehouseman, and bottler. As a licensed distilled spirits plant, the company was required to file federal excise tax returns with the TTB and to pay federal excise taxes to the TTB.

 

Despite collecting federal excise taxes from the company’s clients, Meyers failed to pay the federal excises taxes to the TTB. Instead, Meyers and others used this money to pay for personal expenses, including car, house, and credit card payments, and business expenses. When approached by TTB about the excise taxes, defendant engaged in a repeated pattern of evasion, intentionally avoiding TTB’s efforts to audit his company and to rectify his federal excise tax situation. Defendant operated the illegal still in the middle of the company warehouse, distilling wine for local wineries. When tested, the distilled alcohol had dangerous levels of lead and copper, creating a public health risk to unknowing members of the community.

 

U.S. Attorney S. Amanda Marshall noted, “Defendant cheated his clients, the taxpayers, and the regulatory system, acting as if the rules did not apply to him or his business. Business owners need to understand that this type of conduct will not be tolerated. There are legitimate ways, like bankruptcy, to work through difficult financial times. Theft and tax fraud puts individuals and communities at risk, it is illegal, and will land you in jail.”

Timothy Marsh, Deputy Director for Criminal Enforcement, Alcohol and Tobacco Tax and Trade Bureau, (TTB) said, “Failure to pay taxes is not a victimless crime. It robs the community of revenue and hurts law-abiding businesses. TTB is committed to ensuring a level playing field where businesses can compete on an equal and lawful basis.”

 

This case was investigated by the Alcohol and Tobacco Tax and Trade Bureau and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.

 

 

——

RABOBANK REPORT:  OUTLOOK FOR GLOBAL BEVERAGE INDUSTRY IN 2013

 

SUPPLY SECURITY A TOP PRIORITY IN FACE OF ECONOMIC HEADWINDS,  COMMODITY VOLATILITY

 

Source: Rabobank

January 29, 2013

 

Rabobank has published a new research report on the outlook for the  global beverage industry in 2013, forecasting the impact of weaker demand in developed markets, slower growth in emerging markets, and price and supply volatility for beverage-related commodities.  As a result, the bank says, 2013 will see beverage companies focusing on new sourcing strategies to increase security of supply.

 

In the report “Thirsting for Growth,” the bank’s Food & Agribusiness Research and Advisory team says a major concern for all beverage companies in 2013 is the outlook for key commodities.  Exerting greater control over procurement, including achieving increased transparency with upstream suppliers, will be a critically important initiative for many beverage companies in 2013.

 

Rabobank says that in the past, beverage manufacturers were more concerned with buying their inputs at the lowest price, but in today’s world of tightening supply and price volatility, security of supply has emerged as a key concern for many manufacturers. Increasing complexity within the supply chain requires greater dependency and alignment between key stakeholders. As a result, supply chain management and strategic development experts have initiated “strategic sourcing” of agricommodities.

 

Ross Colbert, global beverage strategist for Rabobank and lead author of the report, said, “Strategic sourcing requires beverage companies to re-evaluate their procurement processes through the lens of global supply and demand, to better understand the impact of price volatility, security of supply and related risks. This approach has led global brand owners to develop dedicated supply chains, where suppliers, processors, distributors and even retailers are more aligned and operate in a more integrated system.”

 

In the report, Rabobank’s analysts forecast the outlook for three primary beverage sectors – soft drinks, coffee and tea, and alcoholic beverages.

 

Rabobank Outlook for Soft Drinks

 

.         The global soft drinks industry will continue to straddle two different worlds: the mature developed markets where growth has stagnated and developing markets where previously high growth rates have slowed, but still offer the greatest upside

.         Bottled water will continue to lead in volume with a projected growth rate of 5.4% in the coming year.

.         Ready-to-drink tea and Asian specialty drinks will be the fastest growing soft drink segments with projected growth rates in 2013 of 9% and 14%, respectively.

.         Coca-Cola and PepsiCo are set to undergo a new wave of refranchising as they look to shift bottling assets to strong franchise partners, allowing each giant to focus their efforts on brand building and marketing.

 

Supply and demand issues are leading to strategic sourcing for fruit juice companies. These sourcing strategies include juice suppliers increasing physical control (investing in growers), focusing on market power, and following adaptive strategies such as ingredient substitution or reformulation.

 

Rabobank Outlook for Coffee and Tea

 

.         Continued growth in global coffee will be driven by three key drivers: innovation in single cup brewing (e.g. K-Cups, pods, etc.); “premiumization,” with consumers choosing to drink higher quality coffee; and increased consumption in the away-from-home channel in developed markets, led by Starbucks and McDonald’s.

.         The global tea industry is forecast to face short supply in 2013. Key tea producing countries are expected to have a production drop in the range of 1 to 5% in 2013, while demand is set to grow by 3%. With consumption in India and China outpacing domestic production, reduced exports and rising prices are expected for both markets

 

Rabobank Outlook for Alcoholic Beverages

 

.         Beer is forecast to be one of the slowest growing beverages this year. In mature markets, decline is driven by saturation, health trends and increases in excise duty

.         Spirit consumption in Western Europe is also expected to wane. Regional players and local spirits are likely to be the worst hit with larger, international spirits companies, with broader product portfolios better positioned to weather the storm

.         The wine industry will face tighter availability of global wine inventories, a soft consumer environment, and the need to continue developing many emerging markets. Suppliers will have to develop sourcing strategies that secure sufficient supply at the right cost and in the right place, and that are flexible enough to be relevant when global inventories become more readily available.

 

In light of the current global economic uncertainty, slower growth from BRIC markets, and cautious consumer spending, the beverage industry will remain thirsting for growth in 2013. Rising commodity costs will impact all drink segments and likely force beverage companies to raise prices at a time when consumers are already under economic pressure. Faced with narrowing margins, those beverage companies that have a vision and commitment to engage in strategic sourcing will have a competitive advantage in 2013 and beyond.

 

 

——

Diageo Shifting to Upscale Tequila After Adios to Cuervo

 

Source: Bloomberg

By Clementine Fletcher

Jan 29, 2013

 

Echo Hopkins’ love of tequila began with a happy hour margarita at the Blue Moon Mexican Café in Bronxville, New York. Four years later, her tastes have matured, and she now eschews cheap margaritas in favor of tequilas costing $10-plus a shot meant to be sipped and savored.

 

“As you move on from college you begin to realize you can enjoy tequila slowly,” said the 25-year-old art researcher.

 

Hopkins is the kind of consumer that spirits giant Diageo Plc (DGE) is counting on as it revamps its tequila business. With U.S. consumption of the fiery Mexican tipple climbing and more drinkers shifting upmarket, the London-based distiller last month said it would terminate a distribution deal with Jose Cuervo after 16 years.

 

As Diageo prepares to release results tomorrow, analysts say abandoning the deal with Cuervo, the world’s top-selling tequila, was a smart move — even if it meant losing $470 million in annual sales.

 

“It probably makes sense that Diageo walked away,” said Trevor Stirling, an analyst at Sanford C. Bernstein. “Diageo perceives that all the growth in tequila has been in premium brands. Cuervo isn’t premium.”

 

Larry Schwartz, Diageo’s North America president, in December said any replacement for Cuervo would have to be premium. Without naming any brands, Schwartz said the company was mulling whether to develop a high-end tequila, acquire a small brand pricier than Cuervo, or find a partner.

 

Diageo, which posted $16.8 billion in sales last year of brands ranging from Smirnoff vodka to Guinness beer, had been in talks to buy the Cuervo brand, which analysts say would have fetched some $3 billion. In December, Diageo said those negotiations had failed, and that by June Diageo would no longer distribute Cuervo. Diageo stock has since declined 1.2 percent.

 

Blue Agave

 

Tequila, distilled from the roasted hearts, or pinas, of the spiky blue agave plant in Mexico, is gaining in popularity, especially in the U.S., its biggest market. American consumption rose at an average annual rate of 4.1 percent from 2006 to 2011, according to researcher International Wine & Spirit Research, almost double the growth of the total U.S. liquor market.

 

More important for Diageo, pricier varieties are expanding the fastest. The market for tequilas that sell for more than $20 a bottle has increased more than 10 percent over the last five years, IWSR reports, attracting global distilling companies.

 

In 2007, Davide Campari-Milano SpA (CPR) bought 80 percent of Cabo Wabo, a premium tequila, and it acquired San Nicolas, another upscale brand, the following year. In 2011, Pernod Ricard SA (RI) signed a joint venture with upmarket Tequila Avion.

 

Beam, Sauza

 

Tequilas priced under $20, which make up over half of the U.S. market by volume and the bulk of Cuervo’s sales, have slid 1.1 percent over the past 5 years. Cuervo’s market share in the U.S. has fallen to 34 percent from 45 percent over the same period, Liberum Research estimates. The majority of tequila drunk is in cocktails like margaritas, according to Kevin Vanegas, Master of Tequila at Wirtz Beverage Nevada, a Las Vegas liquor distributor.

 

After Diageo announced it would no longer sell Cuervo, speculation mounted that it was eyeing Beam Inc. (BEAM), which makes Sauza, the third-biggest tequila brand in the U.S. The buyout speculation has sent Beam’s shares up 5 percent since then.

 

Sauza, which retails for about the same price as Cuervo, would do little to help Diageo meet its target of 6 percent annual sales growth, according to Liberum analyst Pablo Zuanic.

 

“There’s no point for Diageo to spend money and effort trying to get the non-premium market,” Zuanic said. “Their focus should be on premium tequila.”

 

1,500 Tequilas

 

Diageo may report a first-half sales increase of 5.6 percent tomorrow, excluding acquisitions and the impact of currency fluctuations, according to the median estimate of 11 analysts surveyed by Bloomberg. That would represent a slowdown from the 7 percent gain in the same period last year. Diageo has forecast a one percentage-point widening of its operating margin in North America to 39.1 percent this year, aided by pricier new products.

 

The high end of the tequila market is dominated by Patron, part-owned by Bacardi Ltd. Patron sold 1.66 million cases in the U.S. in 2011, double that of its next competitor, Grupo Cuervo’s 1800 brand, IWSR estimates. Potential targets abound: there are over 150 tequila distilleries in Mexico producing more than 1,500 brands, according to Vanegas.

 

All tequila is made from agave, but Jose Cuervo and Sauza are “mixtos,” containing as much as 49 percent alcohol made from non-agave sugars.

 

Shot Glasses

 

Like Cognac, Bourbon, or single malt scotch, tequilas vary by how long they’re aged. So-called anejo varieties sold by most brands at a premium, must spend at least a year in wooden barrels. High-end tequila should be sipped “like a fine whiskey,” said Vanegas — not downed in shot glasses alongside a lime wedge and a lick of salt, as is often the case in U.S. bars.

 

Diageo does own half of an upmarket tequila called Don Julio, alongside the Beckmann family, Cuervo’s owners. The brand saw sales growth of 26 percent last year versus a 5 percent decline for Jose Cuervo.

 

Diageo might lean on other spirits to get by without Cuervo. Over the past two years it has bought brands such as Brazil’s Ypioca cachaca and Turkey’s Yeni Raki to complement its dominant position in whisky and vodka. It was the first big European distiller to invest in a Chinese maker of its popular national spirit, baijiu.

Frat Culture

 

With tequila drinkers, Diageo’s challenge is to get Americans to pay up for pricier brands like Don Julio now that it no longer distributes Cuervo. That may take some doing, according to enthusiasts such as Hopkins.

 

“There’s still a stigma attached to the frat boy culture of taking shots of tequila,” she said. “I’ve been out with people and ordered amazing aged tequila meant for sipping, and had them down it in one go.”

 

 

——

EARNINGS PREVIEW: Diageo 1H Pre-Ex Operating Profit Seen Up 8%

 

Source: WSJ

Jan 29th

 

Diageo (DGE.LN): 1H 2013

Due: Jan. 31 at 0700 GMT

Company Survey of 4 Analysts

Average Operating Profit Before Exceptional Items: GBP2.02B, up 8% (GBP1.87B 1H 2012)

Average Net Sales: GBP6.02B, up 4.5% (GBP5.76B 1H 2012)

 

Note: Diageo is expected to post a rise in first-half operating profit before exceptional items on higher sales, driven by the company’s operations in Latin America, Asia Pacific and Africa. Analysts expect good numbers amid robust industry conditions. They also see the group delivering a consistent performance and mark it out as a “top pick” in the beverage sector. U.S. revenue growth is expected to be strong, though it could be slower from the first quarter due to the timing of price increases. Analysts will be focused on regional performance as well as progress on the acquisition of a majority stake in India’s United Spirits.

 

 

——

Pennsylvania: Corbett plan said to include wine, liquor and beer

 

Source: AP

By MARC LEVY

January 29, 2013

 

Gov. Tom Corbett is expected to call for auctioning off wine and liquor store licenses and opening beer sales to a broad array of retailers including supermarkets and convenience stores, according to information from people briefed by the governor’s office Tuesday.

 

The plan would dramatically liberalize the sale of alcoholic beverages in Pennsylvania and throw out Prohibition-era limitations that have thus far withstood the efforts of three straight Republican governors.

 

Corbett’s office said the Republican governor will announce his plan Wednesday afternoon in a Pittsburgh state office building. His spokesman, Kevin Harley, declined to comment on the details ahead of the governor’s announcement, but he said it would be a “bold” plan.

 

“He believes Pennsylvanians should have choice and convenience in purchasing beer, wine and liquor, the same convenience that is afforded to residents of 48 other states,” Harley said.

 

According to information from people briefed by the governor’s office, the plan involves shutting down the more than 600 state-owned wine and liquor stores as a prelude to auctioning 1,200 wine and liquor store licenses. The information was provided by people on condition of anonymity because they did not want to be named providing details before the governor announces them.

 

Owners of supermarkets, drugstores, restaurants and big-box stores would be able to buy separate licenses to sell beer and wine. Convenience store owners would be eligible to sell beer while the state’s approximately 1,200 licensed beer distributorships would be able to bid for licenses to sell wine and liquor.

 

Harley said a bill reflecting Corbett’s plan will be introduced in the near future.

 

Wendell W. Young IV, the president of the union that represents about 3,000 unionized state store clerks, said Tuesday that privatization of wine and liquor sales would diminish consumer choice and state tax revenue while raising liquor consumption rates and the crime and health problems that follow.

 

“Why would we want to be like the 48 other states when we’re already so much better than them?” Young questioned.

 

Corbett had said during his 2010 campaign that he supported the privatization of the state-owned wine and liquor stores. However, he never had his own plan introduced in the Legislature, as governors often do on key policy initiatives, and he did not actively campaign for legislation that was championed by House Majority Leader Mike Turzai, R-Allegheny.

 

Regardless, Corbett’s forthcoming legislation will face headwinds, even in a Republican-controlled state Legislature.

 

Democrats are largely hostile to efforts that will put unionized liquor store clerks out of work, and leaders of the Republican-controlled Senate are cool to the idea. Meanwhile, Sen. Charles McIlhinney, the Bucks County Republican who chairs the committee that handles liquor control legislation, on Tuesday said he would introduce a bill to allow beer distributors to buy licenses to sell wines and liquor while keeping the state’s wine and liquor stores open.

 

In December 2011, Turzai’s plan to shut down the state-owned wine and liquor stores and auction off retail liquor-store licenses to supermarkets and other private operators collapsed in a House committee.

 

The committee instead approved legislation that resembled McIlhinney’s bill, but it never received a vote on the House floor.

 

 

——

Do TV liquor ads drive kids to drink?

 

Source: Denver Post

By Steven Reinberg, HealthDay Reporter

01/29/2013

 

Seeing beer and liquor ads on TV may promote drinking as early as seventh grade and lead to alcohol-related problems just a few years later, a new study suggests.

 

The more ad exposure the teens reported – and the more they enjoyed the commercials – the more they drank by 10th grade, the researchers found.

 

“This study provides evidence that exposure to alcohol advertising in seventh grade and liking those alcohol advertisements on television is associated with higher levels of drinking in the eighth and ninth grades,” said lead researcher Jerry Grenard, an associate professor in the School of Community and Global Health at Claremont Graduate University in California.

 

This early drinking is in turn associated with the development of alcohol-related problems, such as fighting or academic decline, by 10th grade, he said.

 

“Examples of problems include failing to do homework, attending school drunk, passing out and getting into fights,” Grenard said.

 

While the research doesn’t prove that liquor advertising caused the drinking, Grenard said drinking by young teens was less prevalent before the heyday of TV liquor advertisements.

 

Policy makers should work with the alcohol industry to limit adolescents’ exposure to alcohol advertising, Grenard added.

 

“Parents and schools should teach children about the design of persuasive messages in the media to help them avoid undue influence by the media on their behaviors,” he said.

 

For the report, published online Jan. 28 in the journal Pediatrics, Grenard’s team recruited nearly 4,000 seventh graders and questioned them about use of beer, wine or liquor and exposure to liquor advertising. They kept tabs on many of the students through 10th grade.

 

Overall, the more ads seventh graders watched and the more they liked them, the more they drank from seventh to 10th grade, they found.

 

Seventh graders who watched these ads, especially girls, were more likely to start drinking.

 

And boys who liked the advertisements were more likely to develop alcohol-related problems, Grenard’s group found.

 

Grenard believes the ads influence seventh graders to drink as they move on in school. Of the seventh graders recruited for the study, 57 percent had never tried alcohol or only a little, he noted.

 

“Therefore, we were able to assess exposure to advertising before many students began to drink alcohol regularly,” Grenard said.

 

Other experts agreed that schools, parents and doctors should help children understand that what they see on TV or on the Internet isn’t always true.

 

“This study contributes to existing research on advertising and alcohol use among youth by showing an association with exposure to alcohol ads on TV and later alcohol use as well as problem behavior due to drinking,” said Jennifer Manganello, an associate professor at the University at Albany School of Public Health.

 

Based on these findings and earlier research, “media literacy programs” are needed to educate youth about advertising claims, she said.

 

“Also, parents should be familiar with where their children may be exposed to alcohol ads, including places like social media sites and mobile phones,” Manganello said. They should also discuss alcohol advertising with them, she added.

 

But Dr. Metee Comkornruecha, who practices adolescent medicine at Miami Children’s Hospital in Florida, doesn’t believe liquor ads play an overwhelming role in getting kids to drink.

 

“I think it’s a minor role,” he said. Total media exposure, however, does have a significant role, and this includes what children see in movies, TV programs and online, he added.

 

Comkornruecha doesn’t think liquor ads should be banned from TV as tobacco ads are. “A lot of responsibility is to teach kids about media literacy,” he said.

 

“While we can’t shelter all our kids from everything, the important thing is teaching them how to react and how to interpret the messages they are seeing,” Comkornruecha said.

 

Another paper in the same journal issue found that too few doctors counsel adolescents about the dangers of drinking.

 

That 2010 study of 10th graders – led by Ralph Hingson from the Eunice Kennedy Shriver National Institute of Child Health and Human Development – found that 36 percent drink, 28 percent binge-drink and 23 percent were drunk in the past month.

 

Although 82 percent had seen a doctor and 54 percent were asked about drinking, only 17 percent were counseled to reduce or stop drinking, the researchers found.

 

The researchers concluded that “efforts are warranted to increase the proportion of physicians who follow professional guidelines to screen and counsel adolescents about unhealthy alcohol use and other behaviors that pose health risks.”

 

 

——

United Kingdom: Is this Britain’s most irresponsible parent? Mother-of-four, 35, has been giving her daughter alcohol since the age of THREE ‘so she would grow to be a good drinking partner’

 

Source: Daily Mail

By Steve Nolan

29 January 2013

 

A party-loving mother has admitted giving her daughter alcohol from the age of three so that she would be able to ‘drink properly’ as a teenager.

 

Doctors have condemned 35-year-old Shannon Burrows after her startling confession that she gave daughter Jamie Lee, now 20, her first taste of alcohol as a small child.

 

The youngster was drinking cans of Fosters every weekend and had a bottle of vodka to share with a friend to mark her 15th birthday.

 

By the time she hit the legal drinking age of 18, she was able to hit the town and match her mother drink for drink until 4am.

 

Mother Shannon said: ‘We love getting drunk together, if she loses control, I look after her and vice versa.

 

‘We are like best mates. We have a great time’

 

But GP Dr Sarah Jarvis warned children should not drink alcohol and warned that drinking from an early age may have damaged Jamie Lee’s health.

 

She warned that drinking alcohol may have damaged her daughter’s brain development, long-term memory and liver.

 

According to the doctor, she may have developed a psychological addiction to alcohol.

 

Shannon, from Doncaster, south Yorkshire, pays for her heavy drinking partly with money earned by her landscape gardener husband John, 50, and her £180 per month child benefit.

 

Husband John looks after their other children – two sons aged 12 and a daughter of nine – while she goes out drinking with unemployed Jamie Lee once a week.

 

Shannon told Closer magazine she wanted her daughter to drink ‘properly’ so that she would have a ‘party buddy’ when her daughter reached legal drinking age.

 

She said that she knew Jamie Lee would go out and get wasted on her 18th birthday if she had no experience of drinking alcohol before hand.

 

She revealed that, after getting drunk together, the pair nurse their hangovers together and share a fry-up.

 

Shannon said that although she knows that some people will disapprove of her attitude towards alcohol, she says that her parenting skills have never been criticised by friends and that she knows what is best for her children.

 

Shannon started drinking herself at 14 and would often get so drunk that she collapsed in the street.

 

On some occasions she had to be taken home by police.

 

The mother said that she does not worry about her daughter’s health because teenagers are ‘resilient’.

 

Jamie Lee has been unemployed since leaving her job at a clothes shop six months ago.

 

She says that she is grateful that her mother built up her resistance to alcohol.

 

But Dr Jarvis, a clinical consultant with the website patient.co.uk, said that drinking at a young age did not build up a person’s tolerance to alcohol.

 

She told Closer magazine that early drinking just allows the body to take in more alcohol.

 

According to Dr Jarvis, Jamie Lee will now have to drink more in order to feel the same effects.

 

She recommended that women drink no more than three units of alcohol in one sitting.

 

http://www.dailymail.co.uk/news/article-2270213/Is-Britains-irresponsible-parent–Mother-35-gave-daughter-alcohol-age-THREE-grow-good-drinking-partner.html

 

 

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United Kingdom: Middle-class drinkers ‘will bear brunt of alcohol policy’

 

Older, middle-class drinkers will bear the brunt of David Cameron’s minimum alcohol price plan, according to researchers who predict one of its main effect will be to end today’s multi-buy deals.

 

Middle class drinkers will be among the most affected by a 45p minimum unit price for alcohol, because they tend to drink a lot, say academics.

 

Source: Daily Telegraph

By Stephen Adams, Medical Correspondent

29 Jan 2013

 

If implemented, the Prime Minister’s proposal for a 45p minimum price per unit will have the “biggest impact” on those who drink at home, according to academics.

 

It will end supermarket offers – such as three bottles of wine for £10, or multi-buy deals on crates of beer – that are very popular with middle-class drinkers, they say.

 

However, according to the researchers, who have modelled the likely effects on consumption and health, a 45p minimum unit price will save 10,000 lives over a decade.

 

A Home Office consultation on the proposals ends next Wednesday (Feb 6).

 

Professor Anne Ludbrook, a health economist at Aberdeen University, said it was a “misconception” that middle class drinkers would not be affected by minimum pricing, based on the false assumption that “they don’t buy cheap alcohol”.

 

Studies showed more than half of the alcoholic drinks well-off people bought cost less than 50p per unit, she said.

 

Rather than buying strong, cheap drinks most often associated with problem drinking, she said the middle classes took advantage of discounts on regular or premium brands.

 

“Buying these offers, that are usually multi-buys, you have to have quite a lot of disposable income,” she said.

 

Dr John Holmes, a public health expert at Sheffield University, said: “Perhaps the biggest impact will be on older groups who are more likely to drink at hazardous levels.”

 

Such people “tend to drink at home” rather than in pubs or bars, which will be largely unaffected by minimum pricing because drinking on licensed premises is already expensive.

 

He continued: “As a result it’s their alcohol that’s going to be most affected.”

 

Exactly what multi-buys and discounts were affected would depend to a degree on how the market reacted, he forecast.

 

But he said: “It may limit some of them. Asda has a ‘three for £10’ deal on wine. They would not be able to do that anymore, unless the wine was incredibly weak.”

 

Such deals are very popular in other supermarkets and off-licences.

 

He went on: “You wouldn’t be able to have the big slabs of beer being sold for 35p a unit, but you might be able to have slightly smaller slabs being sold at slightly higher prices.”

 

The academics were speaking in London to outline results of their project to model the likely effects of minumum pricing on consumption and health.

 

They looked at more than 100 studies, including evidence from Canada, which is the only country to have brought in minimum pricing.

 

Dr Holmes concluded: “When you change the price of alcohol, consumption falls”.

 

Sheffield University’s Alcohol Research Group calculated that a 45p minimum price will save the NHS £600 million over 10 years, due in part to 300,000 fewer hospital admissions, and £100 million in savings from lower crime.

 

He said a 45p minimum price “isn’t really a policy that will penalise moderate drinkers” because it would only end up costing them an extra £7.80 a year.

 

By comparison, it would cost those who continued to drink “harmful” amounts, £130 more a year.

 

But contrary to popular wisdom, better off people tend to consume the most alcohol. The fifth richest in society buy twice as much per head as the fifth poorest, said Prof Ludbrook.

 

However, the poorest tend to suffer disproportionately from the harms of alcohol overconsumption, such as liver disease. In part, this is because disadvantaged Britain contains large numbers of extremely heavy drinkers.

 

Average alcohol consumption among the poorest appears low because there are large numbers of abstainers in this part of society too.

 

The academics highlighted their research as the Wine and Spirit Trade Association launched a campaign called ‘Why should responsible drinkers pay more?’

 

Only a fifth of adults supported minimum unit pricing, according to a ComRes poll commissioned by the trade group.

 

Miles Beale, its chief executive, said: “We do not believe that increasing the price of alcohol will effectively tackle problem drinking.”

 

But Dr Nick Sheron, of the Alcohol Health Alliance UK, said: “The international evidence from Canada shows that it works.”

 

*Men are twice as likely to die from alcohol-related causes as women are, according to the Office for National Statistics (ONS).

 

In 2011 there were 17.2 alcohol-related deaths per 100,000 men, compared to a figure of 8.3 for women. Alcohol caused 4,503 men to die in England that year and 2,272 women. Compared to 2010, those figures represented increases of 1.4 and 1.8 per cent respectively

 

Death rates from alcohol were highest in north west England and lowest in East Anglia and London.

 

 

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AB InBev acquires Chinese brewery to break into middle and low-end beer market

 

Source: Morning Whistle

Jan 30th

 

Anheuser-Busch InBev (AB InBev) is reported to be acquiring Chinese Nanchang Asia Brewery Co., Ltd, a leading brewery in Jiangxi province, to break into China’s middle and low-end beer market according to National Business Daily.

 

At present, the middle and low-end beer markets are mostly divided between Tsingtao, Sedrin and Nanchang Asia. “This acquisition can help AB InBev to seize the leading position in the middle and low-end beer market with local sales channels owned by Nanchang Asia,” the secretary of Nanchang Wine and Spirits Industry Association told National Business Daily.

 

Data from the Nanchang Wine and Spirits Industry Association reveals that sales of beer in Nanchang can reach billions of yuan, of which middle and low-end products contribute over 80 percent.

 

Belgium Interbrew Group, predecessor of AB InBev, first entered the Chinese market by acquiring Nanjing JinLing Brewery in 1997.

 

Then AB InBev rapidly expanded in the Chinese market by a series of mergers and acquisitions, becoming a successful example for international companies expanding in China.

 

It acquired Harbin Brewery in 2004 with 5.5 billion yuan, then bought Fujian Sedrin Brewery with 5.88 billion yuan in 2006, setting a record amount of acquisition in the Chinese beer industry.

 

In December last year, AB InBev announced an investment of 1.6 billion yuan, building a production base in Hunan with an annual productivity of 1 million tons to fight for market share in Central China.

 

With the premise of a guaranteed high-end market, AB InBev digs deeper in mass market to localize its business, which is believed to be the main reason for the success of AB InBev in China.

 

Data from National Business Daily shows that 70 percent of the Chinese beer market is made up by the middle and low-end, and that room for development in high-end market is limited. “So it’s a smart business direction for AB InBev to acquire local brewery companies and to explore the middle and low-end market,” Nanchang’s secretary said.

 

 

——

Scientists figure out what makes beer good for you

 

Source: Seattle PI

By JAKE ELLISON

January 29, 2013

 

Our understanding of how hops becomes the molecules that give beer its flavor and the shape those molecules take has been wrong for 40 years, say scientists from the University of Washington.

 

Using a century-old technique, they’ve nailed down the precise structure of those molecules for the first time, overturning the long-standing assumptions. And, while beer brewers the world over are unlikely to change their recipes, the scientists hope to use the discovery to create new medicines.

 

“Now that we have the right results, what happens to the bitter hops in the beer-brewing process makes a lot more sense,” Werner Kaminsky, a UW research associate professor of chemistry, said in a press release.

 

And, because beer and its bittering acids – in moderation (the school emphasizes) – have beneficial effects on diabetes, some forms of cancer, inflammation and perhaps even weight loss, knowing exactly what they become in beer means they can be used to make new pharmaceuticals.

 

 

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Diageo’s Johnnie Walker shake-up is too radical

 

Source: Market Intelligence Center

By: Julian Close

Tuesday, January 29, 2013

 

Johnnie Walker is the world’s best selling line of Scotch and Diageo’s number one brand by value, with annual sales in excess of $1.5 billion dollars. It has also been one of the company’s major growth engines, a trend Diageo has been able to perpetuate with successful tweaks to the line, such as the 2011 introduction of Johnnie Walker Double-Black. But the change currently underway goes beyond mere tweak. Red and Black, the line’s lower-end offerings, and Blue, its high end, have been left alone, but everything in the middle is changing. Diageo’s strategy is to focus on blended Scotch (where they see the potential for the most growth) and to encourage buyers to move up the product chain, but each change carries risks.

 

Elimination of Green Label: Introduced in 2004, Johnnie Walker Green Label has never been one of its best performers, and with sales falling, the decision to scrap the expression seems straightforward, even obvious, if one goes entirely by the numbers. Numbers, in this case, don’t tell the entire story. Green label is one of the line’s most highly rated products, and the line’s only blended malt (malt whisky from multiple distilleries) as opposed to blended Scotch (malt and grain whisky from multiple distilleries). The packaging proudly names and promotes four of the malts that make up the blend, including Talisker and Cragganmore, both of which are part of Diageo’s highly successful Classic Malts series. The decision to scrap the Green Label could alienate malt whisky fans, to some of whom, a fine malt whisky is always superior to a blended whisky. These malt lovers may constitute a relatively small segment of the Scotch market, but it is an influential segment, and they are the very consumers Diageo targets with Classic Malts series.

 

The Introduction of Platinum Label 18 year old: The new Johnnie Walker Platinum 18-year-old will sell for about $110 dollars. This is a price point that the line has not included before, and one which may cannibalize sales of the super-premium Johnnie Walker Blue. This cannibalization could come from high-end Scotch drinkers who are merely curious, well-intentioned gift-givers who assume (understandably) that nothing is higher-end than “platinum,” or from members of either group who find the product a better value than Blue label.

 

The Replacing of Gold Label 18 year old with Gold Label Reserve: Gold Label 18 year old has also received critical accolades, but it is being replaced with a new product, Gold Label Reserve, which carries no age statement. The new expression will contain whisky from many of the same distilleries, but it will be younger. Younger whisky is generally, though not always, inferior to older whisky. Critical response seems to bear out that this is the case with Gold Label Reserve. Some of the risk here is obvious, particularly to anyone old enough to remember New Coke. In addition, fans of Gold Label 18 year old may feel that they have been tricked into purchasing an inferior product released under a very similar name. This could turn into a PR debacle for Diageo, of a sort they know all too well. In 2004, the company created a problem for itself by releasing Cardhu Pure Malt (a mix of malt whiskies from multiple distilleries) in packaging nearly identical to the popular Cardhu Single Malt. This was widely viewed as an intentional deception and led to a confrontation with the Scotch Whisky Association, or SWA. Though the SWA decided in Diageo’s favor, the company was stung enough by the criticism that it withdrew Cardhu Pure Malt after only a few months. That Diageo would invite a recurrence of this debacle seems not only risky, but also somewhat bizarre.

 

Johnnie Walker whisky represents a significant portion of Diageo’s business, comprising 19 million of 157 million total units sold in 2012. According to Diageo, the transition tested well in Asia, but that does not mean it won’t cause problems elsewhere. Until the transition is complete (some time in 2013) and sales for the new products have stabilized, Diageo will remain a risky long-term play.

 

 

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200 jobs to be created by new beverage distribution venture (Excerpt)

 

Source: Jamaica Gleaner

January 29, 2013

 

Two hundred Jamaicans should benefit from additional jobs that will be created through a joint venture between Red Stripe, a Diageo Company, and Pepsi-Cola (owned by Cabcorp) following the signing of a deal to form a 50-50 sales and distribution company.

 

The new company, Celebration Brands Limited, will be equally owned by the two entities and will sell and distribute all Red Stripe-Diageo and Pepsi brands in Jamaica. The effort makes this venture the single largest beverage distribution company in Jamaica with a portfolio of world-renowned brands.

 

According to Cedric Blair, managing director of Red Stripe, the joint-venture company comes as part of an accelerated growth strategy and is expected to create economies of scale resulting in efficiencies and safeguarding the sustained growth of both businesses.

 

“The formation of this new local company is a clear sign of our commitment to the Jamaica economy and to improving our distribution infrastructure by offering enhanced frequency and quality of service to our customers,” Blair said.

 

 

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Wineries quick to defuse NRA links

 

Source: TheShout

By James Atkinson

30/01/2013

 

Several Australian wineries received a rude shock last week when they discovered their wines were being sold by the NRA Wine Club, a fundraising vehicle for America’s controversial gun lobby group, the National Rifle Association.

 

As many as 20 Australian wineries, including household names like Yalumba, Tahbilk, St Hallett, d’Arenberg and Jim Barry Wines, were among those with products listed for sale on the NRA Wine Club website, which has since hidden its wine range from the view of non-members.

 

Also removed from the website was the club’s promise to gun-loving wine drinkers: “Now you can support the Second Amendment with every wine you buy.”

 

There’s no suggestion that any of the wineries knowingly had their wines listed on the site.

 

St Hallett Wines marketing manager Matthew Roberts told TheShout the winery was looking into the incident.

 

“It is certainly not a purposeful support of a political cause. As far as we are aware at this stage the Club is being managed by a third party wine club management company that purchases wine from one of our wholesalers,” he said.

 

“Therefore, due to the three-tier (in this instance four-tier) system in the US, we have had no visibility into these sales. While we would like to ensure St Hallett wines are represented in channels that align to our values we need to investigate and understand the American legal system as it relates to this matter,” said Roberts.

 

Yalumba managing director Robert Hill-Smith said he did not want Yalumba associated with the gun lobby and would act to withdraw its stock, according to News Limited reports.

 

 

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NEW PORTFOLIO OF MONGOLIAN VODKAS TO BE LAUNCHED IN THE USA IN 2013

 

The APU Company, the leading beverage company in Mongolia, will introduce a range of vodka expressions and appoints three industry veterans to lead the effort.

 

Source: Savona Communications

January 29, 2013

 

Mongolia’s First National Brand, will launch a  portfolio of premium Mongolian vodkas including the ultra premium Chinggis Khan Original Mongolian Vodka, into the United States In  2013 as part of a wider Global launch.  Other brands will include Soyombo (super premium) and Arkhi (premium) vodkas.  A standard vodka and a beer brand are planned for future release.  Three seasoned industry executives with brand building successes will lead the global effort: Jett Yang, James Espey and Arthur Shapiro.

 

For further information contact Arthur Shapiro, arthur@amshapiro.com, 917-855-7726.

 

 

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Southern Wine & Spirits of America Strengthens Operations in Pacific Northwest Markets

 

Gregg Risley Named Vice President, Operations – Pacific Northwest

Shawn Youmans Appointed Vice President, Operations – Oregon

 

Source: Business Wire

Southern Wine & Spirits of America, Inc.

Jan 29th

 

John Klein, Executive Vice President, General Manager of Southern Wine & Spirits of America’s seven Pacific Northwest markets (SWS-PNW)- divisions of Southern Wine & Spirits of America, Inc., (Southern), the country’s leading wine and spirits distributor – announced today the appointment of Gregg Risley as Vice President, Operations – SWS-PNW. Regarding the Company’s operations in Oregon, Klein also announced that Shawn Youmans has accepted the role of Vice President, Operations – Southern Wine & Spirits of Oregon. The appointments of both Risley and Youmans were effective January 20, 2013. Risley will report to Klein, and Youmans will report to Risley.

 

Commenting on these two important SWS-PNW appointments, Klein said, “As we continue to strengthen our operational reach and capabilities throughout the Pacific Northwest, Gregg will directly oversee all of our operations – including customer service, purchasing and facilities management. He will work closely with Southern’s Business Solutions Group and Supply Chain Management organizations, ensuring that the Pacific Northwest capitalizes on these important resources for efficiency and effectiveness across our company.” Risley previously served as Southern’s Vice President, Operations in Metro New York.

 

Klein continued, “We also look forward to Shawn raising the level of service excellence for all our customer and supplier partners in Oregon. Shawn oversaw the operations for the joint venture between Southern Wine & Spirits and the Odom Corporation in the Northwest – and will apply his vast knowledge to Oregon as we drive increasingly strong levels of service across the state.”

 

In related appointments concerning New York State, Southern’s Senior Vice-President, Supply Chain Officer Bobby Burg announced that Kevin Randall, currently serving as Vice President, Operations for the Upstate division of Southern Wine & Spirits of New York (SWS-NY), will assume Risley’s former position for the Metro New York market. Burg also noted that Amos Heaton has been named Vice President, Operations in SWS-NY Upstate to assume Randall’s former role. Both Randall and Heaton’s appointments are effective January 20, 2013 as well.

 

 

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Australia: Coles pleased with liquor’s progress

 

Source: The Shout

By James Atkinson

30/01/2013

 

The underlying performance of Coles’ liquor operations improved in the first half of the 2013 financial year, parent company Wesfarmers revealed this morning.

 

Releasing Wesfarmers’ second quarter retail sales results for the period ending December 31, finance director Terry Bowen said liquor continued to negatively impact on Coles’ overall sales figures, this time holding the rest of the division back by about 1.2 per cent.

 

But Bowen said the company was pleased with liquor’s sales performance in the context of the repositioning of the division that is currently in progress.

 

Coles managing director Ian McLeod said: “The underlying performance of liquor improved in the first half as a result of encouraging wine category performance and more effective promotions in the run up to Christmas.”

 

Coles’ headline food and liquor sales for the second quarter were $7.7 billion, up five per cent on the previous corresponding period. Headline sales in the first half of the 2013 financial year increased by 5 per cent to $14.3 billion.

 

Comparable food and liquor store sales increased by 3.9 per cent in the second quarter and 3.8 per cent in the first half.

 

Coles opened 20 new liquor stores and one hotel and closed five liquor stores during the quarter, taking the total number of liquor stores and hotels to 895.

 

 

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Buffalo Wild Wings, Inc. (BWLD): Hyper-growth waning, we’re not playing chicken; initiate at Neutral

 

Source: Goldman Sachs

Jan 29th

 

INVESTMENT LIST MEMBERSHIP: Neutral

COVERAGE VIEW: NEUTRAL

 

Investment view

We initiate coverage of BWLD shares with a Neutral rating and 10% upside to our $82, 12-month price target. We see risk in the medium term as (1) we believe BWLD is towards the latter stages of its “Hyper-growth” phase,

(2) wing cost inflation is pressuring its price value perception, yet it continues to take more pricing, and (3) consensus estimates for 110bp of food cost relief by the end of 2013 seem aggressive as a base case in light of uncertainty around wing costs (partially driven by a potential MCD wing launch.) This said, we see the potential for near-term EPS upside from higher margins, which keeps us from getting more negative at this time.

 

Core drivers of growth

We forecast 16-18% revenue growth in out-years for BWLD driven by roughly 10% annual unit growth and 3-5% SSS growth, with the balance largely from new unit productivity. Our base case forecast is for this to translate to similar 16-18% annual operating profit growth, as low- to mid-single digit SSS are likely not enough to drive fixed cost leverage.

 

Risks to the investment case

The primary upside risks are better SSS growth than anticipated or a reversion to more modest wing cost inflation. Downside risks are more elasticity than anticipated or continued increases in the cost of wings.

 

Valuation

We introduce a P/E and DCF-based 12-month price target of $82. This is 21x our 2H13/1H14 EPS estimate, a 1.2x PEG, which is in line with the broader Restaurant group average.

 

Industry context

We are Neutral rated on the Restaurant sector. While there are some solid growth stories, industry trends remain choppy. We are particularly concerned around Casual Dining, where traffic has been in decline.

 

 

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Custom Designed iPad Webpages for B-21 Fine Wines & Spirits Enables Remote Retail & Enhances Product Interaction

 

Source: B-21

Jan 29th

 

Web development firm, Bayshore Solutions announces the launch of custom iPad-focused webpages for B-21 Fine Wines & Spirits company (B-21).  The iPad webpages were created to feature promotions, and allow prospects and customers to sign-up for email and purchase wine at events and other venues outside of a retail location.

 

B-21 Fine Wines & Spirits is in its family’s fourth generation dedicated to quality wines, competitive prices and exceptional customer service.  B-21 offers wines, spirits and specialty beers online at www.b-21.com and at their retail locations in Florida and now, with this iPad functionality, at any event location they staff.

 

Bayshore Solutions has partnered with B-21 for more than a year focusing on strategic paid search and social media. The fine wines & spirits company came to Bayshore Solutions with an idea of enhancing their in-store experience with technology using iPads.  Bayshore Solutions created two iPad-specific marketing solutions for B-21 to use in store and at events and tastings.

 

The in-store iPad interface features a slideshow that announces B-21’s promotions.  The website is easy to update, has calls-to-actions for email communications and also serves as a way for B-21 to collect customer’s names, birthdates and phone number for personalized and exclusive SMS messaged promotions. B-21 deployed these iPads at stationary locations around the store for customers to view and interact with while shopping.

 

A retail-remote iPad interface presents an eCommerce portal for B-21 to use at events and tastings.  Customers can purchase directly from the iPad for an easy, quick checkout and to take advantage of promotions exclusive to specific events.  The iPad website is linked to B-21’s database of inventory and ensures immediate verification of stock for remote wine sales and promotions.

 

“Bayshore Solutions is pleased to partner with B-21 Fine Wines & Spirits to integrate this innovative technology with strategic marketing that enhances the in store customer experience and expands the flexibility of sales.” said Kevin Hourigan, President and CEO of Bayshore Solutions.  “This solution is measurably driving growth and helping differentiate B-21 as a Leader in their industry.”

 

To find out more about B-21 Fine Wines & Spirits, please visit: http://www.b-21.com.

 

 

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NRF forecasts tepid sales on slow economic growth

 

Source: RT

By Katherine Field Boccaccio

January 28, 2013

 

Retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 3.4%, down slightly from 4.2% in 2012 and 5.8% in 2011, according to the National Retail Federation’s 2013 economic forecast.

 

The lukewarm forecast, released Monday, comes on the heels of a holiday season that went head-to-head with Washington’s political wrangling over fiscal concerns, shifting consumers’ spending plans downward. In the end, holiday sales in 2012 grew 3.0%.

 

In its Monday press briefing, NRF attributed the lukewarm forecast to political wrangling in Washington over fiscal concerns, and NRF president and CEO Matthew Shay said that while it’s too early to precisely predict how recent tax hikes will impact spending, “We can safely predict that consumers will be shopping for price more often [in 2013] and there will be more ‘trading down’ occurring.”

 

Shop.org, NRF’s digital division, expects online sales in 2013 to grow between 9.0% and 12.0%. Online sales in 2012 during the months of November and December last year grew 11.1%.

 

“What we witnessed during the holiday season is an indication of what we are likely to see in 2013,” said Shay. “Pushing fiscal policy decisions down the road will lead to even greater uncertainty, and will continue to impact consumers’ desire and ability to spend on discretionary items. The administration and congress need to pursue and enact policies that lead to growth and economic expansion, or it could be another challenging year for retailers and consumers alike.”

 

A number of factors contributed to NRF’s 2013 economic forecast, including:

 

Employment: The labor market continues its modest recovery but 2013 is not expected to result in meaningful acceleration in growth. As of December 2012, the unemployment rate has held steady for the last two months at 7.9%. Retailers on average employed 150,000 more workers in 2012, and the industry remains one of the biggest employers in the world.

 

Income growth: Consumers are constrained by modest growth in income, and recent legislation passed in January increased payroll taxes for millions of workers, further limiting Americans’ spending decisions.

 

Housing: NRF expects the housing sector to continue to improve and the fundamentals for growth to see continued gains in 2013.

 

Inflation: Price pressures continue to be contained. NRF expects the Consumer Price Index to increase 1.9% in 2013, below the 2.1% increase in 2012.

 

Consumer confidence: Current consumer attitudes are likely weighed down because of the handling of the fiscal cliff and the increase in payroll taxes. NRF said it expects confidence to improve as the pace of the recovery accelerates in the second half of 2013.

 

“While it’s too early to know the full effect of higher payroll taxes, there’s no question that many consumers will feel some kind of impact from the change in their paychecks,” said NRF chief economist Jack Kleinhenz. “But consumers have been a key driver of the economy and I expect their spending to grow modestly in 2013.”

 

 

——

New Hampshire: NH House panel rejects beer tax increase

 

Source: Union Leader

By BILL SMITH

Jan 29th

 

A proposed 33 percent increase in the state beer tax was left at death’s door Tuesday, as the House Ways and Means Committee voted to recommend killing the bill.

 

By a vote of 14-2, the influential tax-writing panel declared the proposed increase to be “inexpedient to legislate.”

 

Chairman Barbara Almy, D-Lebanon, said members were concerned about the financial impact of a beer tax that is “considerably higher” than most nearby states.

 

Supporters of the tax now face a tough task. Passing a beer tax requires rounding up enough votes to overturn the Ways and Means Committee recommendation, and a promised veto by Gov. Maggie Hassan means a two-thirds majority would ultimately be required in each branch for the beer tax hike to make it into law.

 

The proposed increase of 10 cents per gallon, from 30 to 40 cents, would be paid at the wholesale level. Industry representatives argued at a hearing earlier this month that the increase would trickle down to the consumer level, damaging the state’s strong beer sales record.

 

The tax bill was filed by Rep. Charles Weed, D-Keene, who wanted to use proceeds of the tax increase to fund substance abuse prevention efforts.

 

During hearings on the bill, opponents argued it would weaken the state’s competitive standing in the region on beer sales.

 

“It would have put us as the highest beer tax in New England,” said Ways and Means Vice Chair Patricia Lovejoy, D-Stratham.

 

The beer tax in neighboring Massachusetts, set at $3.30 per barrel, is about 11 cents per gallon and has been unchanged for 33 years. In Vermont, the 26.5 cents per gallon tax has not been changed since 1981. Only Maine among nearby states has a higher beer tax, at 35 cents per gallon; an effort to raise the Maine tax was was rejected by voters in 2008.

 

A short-lived extension of the 6.25 percent Massachusetts sales tax to alcoholic beverages was rolled back in a 2010 referendum.

 

Competitive pricing for beer in New Hampshire is credited with spurring strong sales in the state compared to stagnant performance nationwide.

 

Weed and other supporters said that alcoholic beverage sales are a logical source of funds for substance abuse programs, which have suffered in recent years as lawmakers divert liquor store profits from a substance abuse fund to other state purposes.

 

The two first-year lawmakers who voted to support the beer tax increase in committee, Democrats Harry Young and Richard Ames, represent different Jaffrey districts and each spent long careers working in human services. Young spent decades as a hospital administrator, while Ames was general counsel to several human service agencies in Massachusetts.

 

New Hampshire retailers sell more beer per capita than any other state in the country.

 

According to the Beer Institute, about 43 gallons per person of legal drinking age is sold in the state compared to a national figure of about 28 gallons.

 

 

——

New Hampshire: Second firm protests warehouse decision by NH Liquor Commission

 

Source: New Hampshire Union Leader

By DAVE SOLOMON

Jan 29th

 

The second-place bidder for a $200 million warehouse contract with the New Hampshire Liquor Commission has filed a formal protest with the commission over the bidding process, while third-place bidder Law Warehouses of Nashua appears headed for court.

 

XTL-NH on Monday filed a formal protest with the Liquor Commission over the award of the contract to Exel of Westerville, Ohio, a subsidiary of the German company Deutsche Post DHL. The deadline for protests was Monday.

 

XTL-NH maintains that Exel should have been disqualified from the bidding process during the initial stages of the Request for Proposals (RFP) evaluation period.

 

“Exel intentionally did not submit a proposal as per the RFP’s rules, and therefore, failed to comply with the requirements of the RFP,” said James Bianco, a Concord attorney representing XTL-NH, in a statement released late Monday afternoon. “Their proposal differed greatly from those bidders, like XTL-NH, who followed the RFP’s rules and met the requirements included in the RFP. This created an unequal comparison among bidders, and destroyed the purpose of competitive bidding.”

 

The company’s protest also questions the cost-efficiency of the Exel contract.

 

“During the bidding process, XTL-NH submitted the lowest price out of the five bidders,” said Louis Cerone, president of XTL-NH. “It is our understanding that traditionally, New Hampshire has always awarded contracts to the lowest qualified bidder. Our price for the contract that was awarded was at least $5.3 million less than Exel’s. Over the life of the contract, these savings add up to a total of over $42 million. Why did the State of New Hampshire walk away from over $42 million in savings? It doesn’t make sense.”

 

The state Attorney General’s office has defended the Liquor Commission in court as Law Warehouses pursued a Right-to-Know petition for more information on how the contract was awarded, but the Attorney General’s office has not commented on the contract itself. Manchester attorney Stephen Judge, serving as liquor commission counsel in regard to the warehouse and transportation contract, said the commission needs time to review the XTL-NH protest.

 

“The Liquor Commission will review the statements that are made by anyone who files a protest,” he said. “XTL is the only bidder that filed a protest, and under the RFP, there are five business days to respond. It would be premature for me to comment on the substance of what they have filed at this time.”

 

Bianco, whose Concord law firm specializes in government relations, said the contract with Exel is not in the best interest of New Hampshire. “The NHLC improperly entered into an open-ended contract with Exel that allows the company ample opportunities to significantly raise prices in the future,” he said. “This puts the state at risk of adding costs to and losing revenues for the majority of this contract.”

 

Law Warehouses has been active in challenging the contract for several months, but XTL-NH, the second-place bidder, had been largely silent until Monday.

 

“We are very concerned about the process the NHSLC followed to award this contract,” Cerone said. “We know that our company had the lowest price and most responsive bid for this contract. We are concerned that the NHSLC acted inappropriately by changing the RFP process to favor Exel.”

 

XTL-NH’s parent corporation, XTL Inc., currently provides warehouse services for the Pennsylvania State Liquor Control Board and maintains corporate headquarters in Philadelphia.

 

A spokesperson for Exel said earlier this month that the company is moving forward with plans to start business in New Hampshire and has identified a site along Route 3A in Bow for construction of a 240,000-square-foot warehouse. Payment for the warehousing operations does not come from the state, but from the distributors and distillers, who in effect pay the warehouse operators rent to store their product until it is sold.

 

The Liquor Commission posted its scoring sheet for the five warehouse bidders on its website recently, as part of a 44-page history of how the bid was awarded. On that scoring, XTL-NH had a lowest-cost bid, but scored lower than Exel in “overall solution” and “IT” categories.

 

The Exel proposal scored 93 points, compared to 91 for XTL-NH and 82 for Law Warehouses, which has done the warehouse and trucking work for the commission since the 1970s.

 

Attorneys for Law Warehouses on Monday sent a letter to the Attorney General’s office raising many of the same issues contained in the XTL-NH complaint, but said the protest process was vaguely defined with no specific remedy.

 

“It is quite clear that under these circumstances, the New Hampshire Superior Court is the proper forum to determine whether the NHLC acted unlawfully in awarding a contract to Exel,” wrote attorney Christopher Carter on behalf of Law Warehouses. “Law Warehouses is prepared to immediately pursue all available remedies, including litigation, to vindicate its rights and enjoin the NHLC from proceeding with the Exel contract.”

 

 

——

Indiana: Indiana lawmakers push for Sunday alcohol sales

 

Source: AP

By PAMELA ENGEL

January 29, 2013

 

The last state in the nation to bar retail alcohol sales on Sundays is making a push to lift the restriction, but strong opposition from liquor stores could leave Indiana’s effort as flat as an open bottle of champagne.

 

Two bills introduced early in this legislative session aim to broaden a state law that currently restricts Sunday alcohol sales to restaurants, bars, breweries and wineries.

 

Indiana’s ban on retail alcohol sales dates back to Prohibition. The sponsor of one bill said allowing Sunday carryout alcohol sales would bring in more tax revenue for the state, but liquor store owners contend their overhead costs would increase in order to staff their stores an extra day.

 

Liquor store owners also argue that allowing Sunday sales would essentially spread out six days’ worth of sales over seven days and worry that more people would buy alcohol while shopping at grocery stores instead of making a trip to a liquor store.

 

“This state not allowing Sunday sales has kept us in business,” said Jon Sinder, co-owner of Crown Liquors, a chain of Indianapolis-area stores. “In other states, you can’t buy spirits at big-box retailers.”

 

But Republican Sen. Phil Boots of Crawfordsville, who authored the Senate bill, said it’s time for Indiana to adopt a free-enterprise mind-set. He also said the bill could be a money maker, bringing in $10 million annually if it passes.

 

“The state of Indiana has said it’s OK to consume alcohol on Sunday but they’ve picked who the winners are and who the losers are,” he said. “I think that it’s time we become more competitive. Competition is not a bad thing. The liquor stores don’t want to compete.”

 

Liquor store owners say competition isn’t their only concern. They contend their stores are more heavily regulated than big-box retailers and argue that the package liquor industry helps keep alcohol out of the hands of minors.

 

“All of our clerks are licensed and trained,” Sinder said. “If we go, then the state becomes less safe.”

 

Rep. Sean Eberhart, R-Shelbyville, who authored the House bill, argues that Indiana’s current law might be less responsible because it allows for Sunday carryout sales at restaurants.

 

“How silly is that that we allow somebody to drink and drive home but we don’t allow somebody responsible to buy that alcohol on Sunday to take it home and enjoy it?” he said.

 

Indiana has loosened its alcohol laws to promote tourism and economic development, Boots said. In 2010, lawmakers approved a bill that allows microbreweries to sell beer for carryout on Sundays.

 

But the effort to lift the Sunday sales ban has failed in recent years. Grocery stores hope 2013 is different, as Sundays are typically the second-biggest shopping day of the week.

 

John Elliott, a spokesman for grocery chain Kroger, said the ban is “a customer service problem.”

 

“Every single Sunday, we’ve got customers who are disappointed that they cannot purchase this product. This is particularly a challenge in communities that have a heavy concentration of factory or shift workers,” he said. “There are households that can only shop on Sunday.”

 

Ray Cox, president of liquor store chain Elite Beverages, said Sunday retail alcohol sales are probably “not a big deal either way” to most consumers.

 

Jerry Owens, 44, of Indianapolis, said it’s an inconvenience to not be able to buy alcohol on Sundays, but that people are familiar with the law and have to work around it.

 

“I don’t see anything wrong with (the bills),” he said. “I’d buy beer on Sunday.”

 

Eberhart is hopeful that the legislation will get enough support to make it out of committee. No date has been set for either bill.

 

“I think public opinion has changed over the years and we’re a society now that we want convenience and speed,” he said.

 

Eberhart noted that liquor stores wouldn’t be required to open on Sundays, but said he thinks the decision should be left to the stores, not the state.

 

“I don’t think it’s the government’s position to tell you when you can and can’t sell your product,” he said.

Liquor Industry News 1-28-13

January 28, 2013
www.franklinliquors.com

Franklin Liquors

Question time for Diageo chief after failed tequila talks

 

Source: The Scotsman

27 January 2013

 

DIAGEO chief executive Paul Walsh will this week face a fresh grilling over his decision to abort talks to buy tequila brand Cuervo.

 

Walsh will hope that strong trading in the US and emerging markets will help draw a line under the decision, but he will still face questions about his plans for the category.

 

The City expects a surge in sales volumes in Asia, Latin America and the US in the first half of the group’s financial year to have offset a continuing tough European market for the world’s biggest spirits business. Analysts are predicting a modest rise in sales to about £6 billion, giving a 9 per cer cent jump in underlying earnings to over £2bn.

 

Santander’s broking division said it expected Diageo, whose flagship Scotch is Johnnie Walker, to show a “solid” trading performance and “begin shaking off the disappointment of the loss of Cuervo”.

 

Walsh walked away last month from talks to buy or take a stake in Cuervo, the world’s biggest selling tequila, after failing to agree a price with the owners, the Beckmann family.

 

The British group’s deal to distribute the product outside Mexico will also stop in June, leaving it without a tequila in its stable of drinks, which includes Guinness, J&B whisky and Smirnoff vodka.

 

Elaine Coverley, drinks analyst at Brewin Dolphin, said Walsh would be quizzed on strategic alternatives to Cuervo, including trying to snap up Sauza tequila from the Jim Beam American drinks group.

 

“The other alternative is Diageo launching its own ­tequila,” Coverley said. “They have already done it with ­Ciroc vodka. But the underlying trading picture should be decent. A key point of interest will be whether the fast-growing Latin-American market is continuing to grow well given its importance to the Scotch market.”

 

Coverley said it was possible that the US market – which ­accounts for 26 per cent of Diageo’s global sales – would see some pressures “but generally spirits are more resilient than beer and consumer staples there”.

 

“They are looked on as an occasional treat. Diageo and Pernod also pushed through US price increases before Christmas because of input cost pressures. It would be a concern if this had an adverse knock-on effect on volumes.” Analysts said they would also be looking for an update from Diageo on how the regulatory scrutiny of the group’s recent £1.3bn purchase of a majority stake in Vijay Mallya’s United Spirits group in India is going.

 

Walsh has said United’s 41 per cent Indian market share would “transform our footprint in India”. The Diageo boss, who announced the deal in November, has played down the likelihood of any ­enforced disposal to get the deal past regulators, including Mallya’s ownership of the Whyte & Mackay Scotch business in Scotland.

 

 

——

Setback for Diageo as India deal stalls

 

Diageo will signal this week that its £1.3bn deal for a majority stake in Indian drinks giant United Spirits could be delayed until the second quarter of the year as it continues to negotiate with regulators.

 

Source: Daily Telegraph

By Nathalie Thomas

26 Jan 2013

 

The maker of Johnnie Walker and Smirnoff had hoped to complete the deal by the end of March, after stalking United Spirits, led by flamboyant Indian entrepreneur Vijay Mallya, for four years.

 

Diageo secured an agreement to buy a stake of up to 53.4pc in United Sprits in November after a series of on-off negotiations with Mr Mallya, owner of the Force India Formula One team and Kingfisher Airlines.

 

Ongoing talks with the Securities and Exchange Board of India – known as Sebi – are at the root of the delays after the regulator questioned whether one clause in the agreement – a put clause – was compliant with Indian law.

 

The put clause, a common feature of such deals, would give United Spirits the right to sell further shares to Diageo at a future date.

 

Sebi’s concerns are understood to revolve around whether this amounts to a forward-looking contract, which wouldn’t comply with Indian law. Diageo is in talks with Sebi over its interpretation of the clause, which could lead to a slip in the timetable to complete the complex, two-stage deal.

 

It is understood the first half of 2013 is now considered a more realistic timetable by the FTSE company, which is behind brands such as Guinness and J&B, despite hopes it could be secured by the end of the first quarter.

 

India’s equivalent of the Competition Commission is also looking at the United Spirits acquisition from an anti-trust perspective.

 

Analysts expect chief executive Paul Walsh, who is tipped to retire in 2014, to report a solid 5.2pc increase in organic net sales growth for the first half of its financial year, as its brands continue to make progress in key regions such as the US and emerging markets.

 

 

——

Diageo reaches JV venture agreement

 

Source: Dow Jones

Jan 28th

 

Diageo reaches agreement to form a 50:50 joint venture in respect of United National Breweries’ traditional sorghum beer business in South Africa

 

On 9 November 2012, Diageo and Dr Mallya announced they had entered into a memorandum of understanding under which they would form a 50:50 joint venture, which would own United National Breweries’ traditional sorghum beer business in South Africa.

 

Further to this announcement, Diageo today announces that it has entered into an agreement to acquire a 50% interest in the company which owns United National Breweries’ traditional sorghum beer business in South Africa. The remaining 50% will be held by a company affiliated to Dr Mallya. Diageo will acquire its 50% interest for $36 million (approximately GBP23 million), subject to customary adjustments. The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in the first half of this year.

 

 

——

Happy hour in Asia as global booze makers eye deals

 

Source: Reuters

By Nandita Bose

Monday, 28 January 2013

 

The biggest global alcohol companies are sizing up buyout and tie-up opportunities in China, India, South Korea and Vietnam, keen to profit from a $258 billion Asian market that is growing twice as fast as the rest of the world.

 

Banking and industry sources name Hong Kong-listed Kingway Brewery Holdings, China’s Beijing Yanjing Brewery Co Ltd, India’s Tilaknagar Industries, and KKR & Co-backed South Korean Oriental Brewery among the potential takeover or joint venture targets for global brewers.

 

Like many other sectors, the global drinks industry is stepping up its Asian presence to offset sluggish growth at home.

 

“Everybody wants a slice of Asia,” said Deepa D’Souza, a consultant with global market research firm Mintel in Mumbai.

 

“The global companies who are present there want to expand further and further in markets like China,” she added. “The problem is there are not enough suitable assets available and so there is a race to pick up whatever is around and there will be more of the takeover battles we are seeing now.”

 

After a two-month battle last year, Dutch brewer Heineken NV finally got control of Asia Pacific Breweries Ltd in a $6.4 billion deal. That translated into a multiple of 35 times earnings, amongst the richest paid for Asian beer acquisitions and a sign that global companies are willing to bid up for Asian growth.

 

World No. 1 Diageo Plc’s plan to buy a majority stake in India’s United Spirits may spur more deals in that country’s competitive spirits segment in the next couple of years, analysts said. The race for partners in India has already begun.

 

French rival Pernod Ricard SA, which sells brands such as Seagrams whiskey, signed a bottling agreement with Tilaknagar, a senior Tilaknagar official told Reuters.

 

“We have signed a bottling partnership with Pernod last year and are open to strategic partnerships,” said the official, who declined to be named because he was not authorized to discuss internal negotiations. “Discussions are on with Pernod.”

 

Pernod confirmed that it had a bottling deal with Tilaknagar, but declined to comment on whether it was seeking a strategic partnership.

 

India’s second-largest spirits company, Radico Khaitan Ltd, has been talking to international players about a joint venture after its partnership with Diageo ended last year, Managing Director Abhishek Khaitan said.

 

TIE-UP, NOT BUY UP

 

Deals in China’s spirits segment will be largely limited to distribution tie-ups, although bankers say some acquisitions are possible as the industry consolidates.

 

The top five brewers in China control about 60 percent of the domestic beer market, compared with South Korea where the top two hold about 90 percent.

 

“What matters in China is to have a successful joint venture partner and use that platform to sell not only their foreign brands but also help lift the quality of domestic brands and spruce up distribution,” said one Hong Kong-based mergers and acquisitions banker who advises brewers. He declined to be named because he was not authorized to speak publicly about the matter.

 

China’s beer market grew by 29 percent in volume terms between 2007 and 2011, and Mintel predicts cumulative growth of 47.5 percent over the next five years.

 

Buying a piece of that growth won’t come cheap. Chinese alcohol companies boast valuations that are three times richer than those in Western countries, with deals closing at multiples of up to 50 times earnings, said Andrew Holland, an analyst with Societe Generale in London.

 

“It is bit of a puzzle because the profitability of the Chinese beer industry is not high. But a lot of Western brewers see the size of the market, see the growth in it and ignore usual financial discipline in order to build their presence there,” Holland said.

 

China’s Guangzhou Zhujiang Brewery trades at 92.3 times its 12-month forward earnings while China Resources Enterprise Ltd trades at 25.8 times, compared with a global sector average of 18.1.

 

Kingway Brewery’s planned sale of some China business has been delayed after some buyers baulked at the high price. Kingway is still in talks with CR Snow for a deal, sources familiar with the matter told Reuters, after discussions with Beijing Yanjing broke off last year. CR Snow is a joint venture between China Resources and SABMiller PLC, the world’s second biggest brewer.

 

Vincent Tse, a spokesman for China Resources, said the company does not comment on speculation. Beijing Yanjing does not currently have any deals with foreign brewers, said a company official who declined to be named because she was not authorized to speak to the media. Officials from Kingway were not immediately available for comment and CR Snow did not immediately respond to a request for comment.

 

The potential sale of South Korea’s Oriental Brewery, owned by KKR and Affinity Equity Partners, is among the large deals expected this year, bankers said.

 

Anheuser-Busch InBev SA sold Oriental Brewery three years ago to cut debt and it has the first right of refusal to buy back the company. Oriental Brewery could attract interest from Japanese and global brewers if there is a full-fledged auction, with some estimates putting the price tag upwards of $3 billion based on its $330 million EBITDA, according to sources with knowledge of OB’s financials.

 

KKR declined to comment.

 

In Vietnam, the government’s planned sale of a 20 percent stake in Sabeco is expected this year, according to bankers.

 

In India, partnerships are the preferred approach because most of the drinks companies are privately owned by individuals who do not want to cede control.

 

“The idea always is to bring in a strategic partner because foreign firms eventually look for control,” said Ajit Sirsat, deputy general manager, corporate finance at Tilaknagar. “Even the Diageo-United Spirits deal would not have happened if the owner did not face financial stress.”

 

Allied Blenders and Distributors is planning an initial public offering in the next two years, having turned down approaches from foreign companies because their intent is to gain control, chief executive Deepak Roy said.

 

The company is in talks with private equity players to raise 2.5 billion rupees ($46.5 million) to meet its immediate funding requirements, he said.

 

 

——

Beam Deserves Place in Share Cabinet

 

Source: WSJ

By RENÉE SCHULTES

Jan 25th

 

Jim Beam’s BEAM +0.96% in high spirits. And not just on bid talk.

 

Shares in Beam, which owns the famous Kentucky bourbon, are up just over 40% since its creation via the breakup of Fortune Brands in October 2011. Bulls are looking to push that higher, betting Diageo DGE.LN -0.16% could sharpen its taste for a deal after it failed to agree to a takeover of tequila maker Jose Cuervo in December.

 

But even if a bid for Beam doesn’t materialize, there are other reasons to own the shares.

 

Beam is the second-largest spirits distiller in the U.S. by revenue, with an 11% share based on Nielsen data. And Beam is knee-deep in bourbon, which is the fastest-expanding major spirit in the U.S., with volumes gaining on rum. That underpins its 7% revenue growth in the first 11 months of 2012, more than double the spirits market’s growth.

 

Bourbon should stay in the sweet spot as flavored variants bring in new drinkers and more consumers trade up to premium brands like Beam’s Maker’s Mark. And after years of underinvestment, Beam is spending more on advertising on a per-case basis than the industry’s average, helping to boost market share while still increasing earnings by a forecast 10% based on FactSet consensus estimates.

 

But Beam isn’t just about bourbon. Its shares are a play on the improving health of the U.S. spirits market. Pricing is returning to precrisis levels, with Beam, Diageo and others raising them by 2% to 3% on average in 2012. And the company, which is due to report fourth-quarter earnings this coming week, also raised its annual dividend 10% on Friday.

 

Then there is the hope for a takeover bid. If Diageo, which has 28% of the market, were to buy Beam, it would cement its control of U.S. spirits for decades.

 

One question: Is Beam too expensive to be taken over? Beam’s valuation at 14.5 times forecast 2013 enterprise value to earnings before interest, taxes, depreciation and amortization doesn’t look unreasonable next to its closest peer, Jack Daniel’s distiller Brown-Forman, BFB +0.96% at 13.9 times.

 

Taking a standard 30% premium boosts Beam’s multiple to 18.3 times, close to the price Pernod Ricard RI.FR +0.36% paid for Vin & Sprit in 2008. The complexity is how to balance the premium with the price and capital-gains tax on brands that competition authorities would likely force a buyer to sell. For Diageo, that could mean shedding brands that account for just over half of Beam’s earnings before interest, taxes, depreciation and amortization, estimates Morgan Stanley MS +0.44% .

 

So clearly there are hurdles to a bid. Even without one, though, Beam could be a tipple worth sampling.

 

 

——

Alcoholism vaccine will give drinkers an immediate hangover if they drink even a small amount of booze

 

The vaccine would be effective for between six months and a year

It sends a message to the liver not to express genes that metabolize alcohol

Trials on mice begin next month with human tests planned for November

 

Source: Daily Mail

By Daniel Miller

26 January 2013

 

A new vaccine will give anyone who drinks even a small amount of alcohol an immediate and very heavy hangover.

 

Scientists from the University of Chile have spent a year designing the drug in a bid to tackle the growing problem of alcoholism in the country.

 

The vaccine, which would be effective for between six months and a year, works by sending a biochemical message to the liver telling it not to express genes that metabolise alcohol.

 

Normally, the liver turns alcohol into the hangover-causing compound called acetaldehyde which is then broken down by a metabolising enzyme.

 

If someone who’s been vaccinated tries to drink alcohol, they will immediately experience severe nausea, accelerated heartbeat, and general discomfort.

 

Once the vaccine has been administered it cannot be reversed.

 

A preclinical trial using mice to determine the correct dosing is due to begin next month with researchers hoping to begin tests on human subjects in November.

 

Dr. Juan Asenjo, director of the university’s Institute for Cell Dynamics and Biotechnology said while the vaccine is not a cure-all, it could provide an important first step.

 

He told the Santiago Times newspaper: ‘People who end up alcoholic have a social problem; a personality problem because they’re shy, whatever, and then they are depressed, so it’s not so simple.

 

‘But if we can solve the chemical, the basic part of the problem, I think it could help quite a bit.

 

‘In Chile, according to the most recent 2011 study from the World Health Organization, one in 15 men have an alcohol use disorder.

 

Dr Asenjo belives the vaccine has the potential to help millions of people worldwide.

 

He added: ‘If it works, it’s going to have a worldwide impact, but with many vaccines one has to test them carefully. I think the chances that this one will work are quite high.’

 

Inspiration for the vaccine came from the far East, said Asenjo, where between 15 and 20 pwer cent of Japanese, Chinese or Koreans have a mutation which inhibits the breakdown of alcohol in their bodies.

 

The idea of using drugs to combat alcoholism is not new.

 

Disulfiram, which was developed almost a century ago works in a similar way blocking the enzyme from breaking down alcohol, thus intensifying the body’s negative response.

 

However users often find the effects so unpleasant they simply stop taking the pills.

 

 

——

Synthetic alcohol: booze without the hangover

 

Source: Wired Magazine

By Sam Scott

27 January 13

 

What is non-alcoholic and non-toxic but gives you the buzz of a beer? Synthetic alcohol, according to David Nutt of the Brain Sciences Division at Imperial College London.

 

Nutt, formerly the government’s senior drugs adviser, has identified a substance that is alcohol-free but acts as a substitute. It has a chemical structure similar to benzodiazepine, a class of psychoactive drugs that treat anxiety and insomnia. The as-yet-unnamed drug can produce alcohol’s desirable effects such as sociability and relaxation, but without negative effects such as nausea.

 

“We can get rid of most of the toxicity. We’ll have a compound maybe 100 times safer than alcohol,” claims Nutt. This means less damage to the heart and liver, but it also lets you wake up fresh. “Because it targets a specific receptor in the brain, we can reverse the effects if people want to drive home,” adds Nutt. The antagonist could come in the form of a pill, or a dissolvable film that is placed under the tongue.

 

Nutt is testing the compounds on human subjects. The substance may be on sale within two years and, he says, would cost the same as a cocktail.

 

 

——

Lack of international agreement on drinking guidelines, study finds

 

British researchers express surprise at wide variation in advice relating to safe amounts of alcohol consumption

 

Source: The Guardian

Sunday 27 January 2013

 

There is no international agreement about whether women should drink as much as men, say researchers. Photograph: Peter Huggins/Alamy

 

Little agreement exists between countries on what is considered safe or sensible alcohol consumption, a comparison of drinking guidelines by British researchers has found.

 

Psychologists from the University of Sussex looked at government advice on drinking in 57 countries, including all 27 EU member states.

 

Dr Richard de Visser and Nina Furtwangler found a “remarkable lack of agreement” about what constitutes harmful or excessive alcohol consumption on a daily and weekly basis, as well as when driving.

 

The study, which is published this month in Drug and Alcohol Review found there was also no consensus on whether it was safe for women to drink as much as men.

 

De Visser said: “We were surprised at the wide variation in guidelines. There is no international agreement about whether women should drink as much as men or only half as much.

 

“In some countries, the weekly maximum is simply seven times the daily maximum, whereas in others there is an explicit statement that drinkers should have at least one alcohol-free day a week.”

 

Calls have now been made for internationally agreed standard definitions of alcohol units and consumption guidelines to help people drink responsibly.

 

The research found that some countries referred to standard drinks, but failed to define them in grams of ethanol. In addition, eight of the 27 EU member states did not have readily accessible guidelines.

 

Among the countries that allowed drivers to have alcohol in their blood, there was a ten-fold variation between the least generous, Panama, and the most generous, United Arab Emirates.

 

De Visser acknowledged that guidelines have limited success in encouraging moderation. But he added: “Despite these caveats, it is important for people who do want to adhere to recommendations to drink responsibly, that there should be internationally agreed standard definitions of alcohol units and consumption guidelines.

 

“Agreed guidelines would be useful for international efforts to reduce alcohol-related harm by increasing people’s capacity to monitor and regulate their alcohol consumption.”

 

 

——

Soaring number of career women ‘killed by alcohol’ and figure is rising faster than men

 

Source: Daily Mail

By Tamara Cohen

25 January 2013

 

The number of alcohol-related deaths among career women has soared over the past decade and is now rising faster than among men, figures reveal.

 

For women in high-flying roles such as chief executives, doctors and lawyers, the number of deaths caused by drinking has risen by 23 per cent.

 

And at lower management level, those losing their lives to liver disease and other conditions caused by alcohol rose from 247 to 290 – a 17 per cent hike.

 

Among men, the number of deaths in both categories were higher but rose less sharply – the toll for 2011 was 15 per cent higher than in 2001.

 

The rising deaths are just the ‘tip of the iceberg’ when it comes to measuring the total damage to the nation’s health caused by alcohol.

 

Harmful drinking among middle-class and middle-aged women is also fuelling rising rates of liver disease, cancer and high blood pressure, which can cause strokes and heart attacks.

 

Tory MP Tracey Crouch, chairman of the All-party Group on Alcohol Misuse, said: ‘A harmful drinker is drinking more than 35 units a week. That’s the equivalent of half a bottle of wine a night.

 

‘A lot of people drink far more units than they realise, especially women. I think there are a whole combination of reasons – it’s become more socially acceptable, the availability and low cost of wine and the pressures on professional women when you are working and also have a house to run.

 

‘We need to look at education and raising awareness about this at the workplace.’

 

One unit of alcohol is around half a glass of wine. Women are recommended to drink no more than 14 units a week, while for men the figure is 21.

 

Among women. deaths caused by alcohol poisoning, liver disease, hepatitis or alcohol-related heart and pancreas failure reached 1,402 in 2011, the most recent figures available, compared to 1,177 a decade earlier – a 20 per cent rise.

 

For women in ‘higher professional’ occupations, deaths rose from 42 to 52.

 

In ‘intermediate occupations’, such as secretarial or other skilled office work, it rose from 142 to 209 – 47 per cent – according to data for England and Wales from a Freedom of Information request to the Office for National Statistics.

 

For women in low-skilled and technical jobs deaths from alcohol has remained the same since 2001. For ‘semi routine’ jobs such as shop assistants and hair dressers, it has risen 47 per cent, from 202 to 306.

 

Research shows the price of alcohol has a major effect on drinking in every social class

 

In men deaths from alcohol rose from 2,850 to 3,488 over a decade, a 22 per cent increase, of which the highest toll was among those in manual jobs.

 

Research last year showed that middle-aged professional women are drinking more alcohol than teenagers for the first time. Over-55s drink more than any other age group and are now the biggest burden on the NHS.

 

Professor Ian Gilmore, chair of the UK Alcohol Health Alliance, said rates of almost all serious diseases in the young and middle-aged have fallen as we live longer, but liver disease is rising ‘dramatically’.

 

He said: ‘These figures are just the tip of the iceberg, as they are the cases where alcohol is specifically mentioned on the death certificate.

 

‘When you look at diseases where alcohol is a major factor, such as oesophageal and throat cancer, or strokes, the true toll is much larger. When I became a liver consultant 30 years ago, to see a woman dying with alcohol-related liver disease was really rare.

 

‘Today it’s not common, but every liver specialist will have seen women in their late 20s or early 30s dying of alcoholic liver disease.’

 

Professor Gilmore backs the Government’s planned introduction of a minimum alcohol price per unit.

 

He argues research shows the price of alcohol has a major effect on drinking in every social class.

 

Emily Robinson, director of campaigns at Alcohol Concern, said: ‘An increasing number of middle-class, professional women are drinking over safe limits and figures show they drink twice the amount of women in manual jobs.

 

‘If we’re to tackle this, it’s crucial that workplaces take this issue seriously which is why we’ve raised the issue with a group of MPs.’

 

Read more: http://www.dailymail.co.uk/news/article-2268526/Soaring-number-career-women-killed-alcohol-figure-rising-faster-men.html#ixzz2JCdxTHS3

 

——

United Kingdom: Drinks industry launches public campaign against minimum pricing

 

Source: Harpers

Written by Elinor Zuke

Friday, 25 January 2013

 

The drinks industry is to launch the first consumer-facing campaign to mobilise mass opposition to the government’s minimum unit pricing plans.

 

The Wine & Spirit Trade Association has galvanised the support of major supermarkets and drinks brands to launch a consumer campaign under the “Why Should Responsible Drinkers Pay More” banner. A dedicated website is due to go live next Tuesday. Retail backers include Sainsbury’s, Asda and Morrisons with drinks suppliers on board including SAB Miller and Diageo.

 

The site will include information about how minimum unit pricing will affect beer wines and spirits products and tell consumers how to send a letter calling for their MP’s support on the issue. It will be backed by a radio and PR campaign.

 

“A 45p minimum unit pricing will increase the price of regular shopping basket items like beers wine and spirits and not just target binge drinkers,” said WSTA chief executive Miles Beale.

 

Under 45p minimum unit pricing, a bottle of wine at 13% abv would cost at least £4.39, and £4.88 if the minimum unit price was 50p.

 

A bottle of 70cl vodka at 37.5% abv would cost at least £11.81 under 45p and £13.13 under 50p minimum unit pricing, while a 70cl bottle of whisky at 40% abv would rise to £12.60 or £14.

 

“We’ve done a decent job so far on talking to the political classes about this, but we need ordinary people to understand what the government is proposing and for their voices to be heard.

 

“Consumers are voters too, and our research shows the more people find out about minimum  pricing, the less they like it. Minimum pricing is unfair, probably illegal, and won’t tackle the problem of binge drinking. ” said Beale.

 

The Home Office’s Alcohol Strategy consultation closes on February 6 with potential legislation expected to be revealed in the Queen’s Speech in May.

 

 

——

Washington: Shoplifting incidents rise with liquor privatization

 

Source: The Daily News

By Tony Lystra

Jan 26th

 

In November, two boys, ages 15 and 16, snatched three liquor bottles off the shelves of the Kelso Safeway and burst out the doors. Earlier this month, also at the Kelso Safeway, a woman placed bottles of booze in her shopping cart and purse, then simply wheeled the cart out the door without paying.

 

Spirits theft has become a common crime at stores locally and statewide since voters decided in 2011 to shut down the state’s liquor stores and allow grocery stores to sell hard alcohol. Shoplifters are taking advantage of the grocery stores’ relatively lax security and making off with bottles of whiskey, vodka, tequila and other spirits.

 

Last year, there were 41 booze thefts in Longview from June through December alone, according to statistics provided by the Longview police department. There probably were more that were not reported, said Longview police Sgt. John Reeves.

 

Some of the incidents have been violent. In August, a woman struck an employee at the Ocean Beach Highway Walmart while trying to steal a bottle of liquor. And in October, a pair of men assaulted an employee while stealing booze from the Ocean Beach Highway Safeway, according to Longview police.

 

Locally, the Safeway at 1227 15th Avenue in Longview was by far the hardest-hit by booze thieves last year, with 21 reports of theft. Late last year, during a late-night stop at the 15th Avenue Safeway, a reporter witnessed employees chase several people who grabbed bottles of hard alcohol and rushed out the back of the store.

 

Other Longview stores fared much better in fending off alcohol thefts. The Seventh Avenue and Ocean Beach Highway Walmarts each reported six alcohol thefts last year. The Ocean Beach Highway Safeway had five, and Fred Meyer had only one, according to Longview Police.

 

The local thefts are a symptom of a statewide problem that has prompted the Washington Association of Sheriffs and Police Chiefs to petition the state Liquor Control Board to require retailers to report spirits thefts.

 

In its petition, the association said about 1,500 liquor sales outlets have opened up since liquor sales were privatized June 1. That’s nearly five times the number of stores – 329 – that sold spirits before Initiative 1183 took effect and abolished the state sales system.

 

“Many, if not most, of these business were not planned and constructed to properly secure high-theft items such as spirits. As a result, we believe significant amounts of spirts are being diverted from legitimate sales and unlawfully making their way into the community,” the association’s petition said.

 

Besides reducing tax revenues, rising liquor theft has increased underage alcohol use and encouraged “an increasing black market focused on theft and resale of spirits,” the association asserts.

 

Tracking thefts would help determine the real scope of the problem and take steps to curb it, if necessary. A public comment period on rules to require reporting spirits theft ends Sunday.

 

This is the first year Longview police have tracked liquor thefts, Sgt. Reeves said. Before privatization, police dealt primarily with thefts of beer and wine from gas stations and convenience stores, Reeves said. He said he can’t recall “ever going to a state liquor store” for a report of an alcohol theft.

 

Kelso police don’t track the number of booze thefts, said Kelso Police Capt. Darr Kirk. Anecdotally, he said, they’re on the rise in that city as well.

 

Cowlitz County Sheriff Mark Nelson, who opposed the effort to privatize hard alcohol, predicted before the 2011 election that thefts would increase if voters approved the sale of booze in grocery stores. “I hate to say what I was afraid would happen is happening,” he said Friday.

 

Nelson said he’d hoped that grocery stores would at least be kept in more-secure, segregated areas, where minors wouldn’t be allowed to get near it and thieves would have a harder time snatching it off the shelves. In many cases, he said, that didn’t happen.

 

Now, Nelson said he worries that what will follow is an increase in drunk driving arrests and underage drinking. Those statistics are not yet available, he said, so it remains to be seen if those predictions will bear out.

 

Nelson said the spike in liquor thefts is disconcerting because people who steal booze aren’t likely to be responsible drinkers. They’re more likely to drink too much, drive drunk or “give it or sell it to kids in the parking lot,” he said.

 

Local grocery stores are employing vastly different security regimes – some more rigorous than others – to protect their hard alcohol. At the 15th Avenue Safeway, where thefts are most common, vodka and whiskey bottles line shelves near the beer and wine, not far from the deli. Each bottle is capped with a plastic anti-theft device, similar to the tags retailers put on clothing that get removed at the cash register.

 

Fred Meyer keeps its hard alcohol between the peanut butter and cheese aisles and uses similar anti-theft devices. Both Walmart and Winco Foods have employed more strict security measures, placing booze in the front of the store by the cash registers.

 

Winco had no reported alcohol thefts last year, perhaps because its booze section is roped off and situated right next to the customer service counter. Customers must pay before a bottle leaves the spirits sales area. confirmed

 

None of those companies responded to requests for comment last week.

 

Safeway spokeswoman Sara Osborne, however, said Longview’s 15th Avenue store has “a higher than average number of petty theft incidents for all items” – not just liquor.

 

Since June, Safeway has helped bust six organized theft rings that were stealing a “significant” amount of booze from its Southwest Washington stores, she said. None of them, she said, were targeting Longview stores and the problems at the 15th Avenue Safeway don’t appear to be the result of an organized ring.

 

Osborne said the company’s stores “continue to refine … our tactics” to prevent alcohol thefts. She declined to disclose those tactics, saying, “This is a highly sensitive security issue.”

 

 

——

Pennsylvania: Retiring liquor board CEO Conti rehired as temporary worker with governor’s blessing

 

Source: Trib Live

By Kari Andren

Saturday, January 26, 2013

 

Despite Gov. Tom Corbett’s assertion that the Pennsylvania Liquor Control Board does not need a chief executive officer, his office approved the LCB’s request to bring back retiring CEO Joe Conti – at a rate of more than $80 an hour.

 

Corbett’s Office of Administration signed off on the request to rehire Conti last week as a temporary emergency employee under a provision of the state retirement code that allows him to collect his pension on top of his hourly rate.

 

“By way of policy, we approve all requests for agencies to have an employee come back in that capacity,” said Dan Egan, spokesman for the Office of Administration.

 

Corbett said in June that he “never saw the reason for the initial appointment of the CEO, and I still don’t see the reason for the appointment of the CEO.”

 

Press secretary Kevin Harley said that as long as an agency follows appropriate policies, procedures and protocols, approval by the Office of Administration becomes a “ministerial-type function.”

 

In that case, there’s little the office can do to reject a staffing request by an independent agency, Harley said.

 

Under the emergency “return to service” arrangement, Conti is limited to working 95 days this year at $80.16 per hour. His hourly wage is based on his $156,700-a-year salary at the time of retirement, Egan said.

 

Conti notified board members in a Dec. 31 letter of his plans to retire effective Feb. 15. After discussions with the board, Conti moved up his retirement to Feb. 2, said LCB spokeswoman Stacy Kriedeman.

 

The LCB “will require Mr. Conti’s assistance with preparing for the upcoming legislative budget hearings,” according to the form submitted to the governor’s office,

 

“Since Joe has important strategic information, as well as expertise critical to the daily operation of the LCB, he will also be able to provide guidance on the continued effective operation of this agency,” Kriedeman said.

 

She said Conti has been the LCB’s acting director of administration, so he will be able to help with the transition to a new director and new chief executive, though the title may change.

 

Labor attorney Mike Healey of Pittsburgh-based Healey & Hornack questions whether the LCB can consider bringing Conti back an “emergency.”

 

“When you plan for something, that’s not an emergency,” Healey said. “It’s one of these things that frankly doesn’t pass the smell test.”

 

Healey said state agencies often have career employees who are capable of stepping in when someone retires.

 

“This all seems very unusual. I’ve never heard of this before,” said Terry Madonna, a pollster and political science professor at Franklin and Marshall College in Lancaster. “Why not just stay on until the (new) guy or gal comes on?”

 

The State Employees’ Retirement System can review an agency’s rehiring under the emergency provision.

 

If the retirement agency “has reason to believe that the return to service might not meet the standard set forth in (state law), SERS will investigate and, if necessary, adjust the member’s retirement benefit,” according to a 2011 memo from executive director Leonard Knepp obtained by the Tribune-Review.

 

The retirement agency considers a number of factors when reviewing cases, including whether the rehiring was planned before the employee’s retirement and whether the retiring and rehiring appeared to be a preconceived retirement plan, the memo states.

 

“The mysterious resignation and quick rehire under the guise of emergency is all at the public’s expense, so double-dipping and disregarding established case law just adds insult to injury,” said Jay Ostrich, spokesman for the conservative Harrisburg-based Commonwealth Foundation.

 

 

——

North Dakota: ND bill would allow beer pubs to distribute beer

 

Source: The Associated Press

By: Dave Kolpack

Jan 27th

 

North Dakota craft beer makers who have been foaming at the mouth for legislation that would allow microbreweries to peddle a certain amount of ale to restaurants and bars without paying a distributor may finally be tasting success.

 

A proposal shot down in various forms the last few years is now being supported by beer distributors, who are in favor of small brewers rolling out the barrels and helped write the bill.

 

“Once they’re successful, I think, most brewers find that they need distributors because they just don’t have the capacity to get it all to market,” said Janet Seaworth, executive secretary and legal counsel for the North Dakota Beer Distributors Association.

 

The bill would create a brewer taproom license that would let companies produce up to 25,000 barrels of malt beverages a year. That’s about 50,000 kegs, or 775,000 gallons, of beer.

 

“That’s huge,” Seaworth said, noting that few microbreweries in neighboring, craft beer-happy Minnesota have reached the 25,000-barrel mark. About 88 percent of all U.S. brewers come in under 7,500 barrels a year, she said.

 

Michael Frohlich, co-owner of Laughing Sun Brewing Co. in downtown Bismarck, said allowing brew pubs to deliver beer on their own is a “logical thing to do,” and he believes the toast from distributors will make the bill a winner.

 

“It’s happening in other states already, and all those states are booming in craft beer,” Frohlich said. “Look at the middle of the country: North Dakota, South Dakota, Nebraska, Kansas, Oklahoma and Texas. They’re all against self-distribution and a lot of those places don’t have a lot of breweries.”

 

Frohlich said if the bill passes, he would expect to sell about 10 kegs a month. But he said every bit helps when he doesn’t have to pay someone else to carry the barrels across town.

 

“For us, it’s only $25 or $30 a keg that we would make more, but we’re only going to make $55 on the keg to start with. So that extra $30 is a pretty big number considering the volume we’re working at,” he said.

 

The brewer taproom license would allow craft beer makers to sell to licensed retailers within 150 miles of the brewery, provided the business uses its own equipment, trucks and employees to deliver the beer, and does not exceed certain limits to retailers.

 

Nick Holwegner, an owner of Souris River Brewing in Minot, which has been open a month, said his restaurant and pub has already seen “a lot of business and a lot of love,” and would like to spread it out throughout the city and perhaps a couple of small neighboring towns.

 

“We have a tight-knit downtown group of people, and Minot in general, and we feel it’s kind of unfair to give it to the distributor to take it across the street,” Holwegner said.

 

He said the restaurant tries to use as many local products as possible, including bread from a Minot bakery.

 

“They bring their buns over and they don’t have to go through a distributor to do that,” he said. “We should be able to walk our beer over and supply them, you know, within reason.”

 

One group that won’t be using the self-distribution clause is Fargo Beer Co., which currently is brewing its beer in Wisconsin but plans to open a brewery in the city from which it takes its name.

 

The company hopes to sell in several states and will need a distributor, company spokesman Aaron Hill said.

 

“We’re excited to not have to distribute our product anymore. We can’t wait to hand that over to a distributor and say we’ve had enough of that,” Hill said. “We’re in 40-plus accounts in Fargo, which is taxing enough. We’re not going to drive to Bismarck to deliver beer.”

 

However, the company should benefit from the proposed increases in production limits, Hill said. Fargo Beer Co. is hoping to reach 10,000 barrels within three years, he said.

 

Seaworth said while there are still “public policy, constitutional and regulatory issues” to iron out, the bill preserves the state’s right to regulate alcohol.

 

“So it would be our hope that people don’t think this is some sort of Christmas tree bill and try to amend it to maybe reflect their preferred business plan, when the intent is to allow some really good options for small brewers to get in the door and grow their products,” she said.

 

Minot Republican Sen. Oley Larsen, chief architect of the bill, said his motivation for backing the plan has little to do with his taste buds.

 

“I don’t drink much beer. It is more of a capitalism idea for me,” Larsen said. “I want this business to be as least restricted as possible.”

 

 

——

NABCA Legislative Update: January 12, 2013-January 25, 2013

 

Source: NABCA

Jan 25th

 

http://www.nabca.org/News/Files/130125%20Legislation%20and%20Regulation%20State%20Update.pdf

 

http://www.nabca.org/News/Files/130125%20Legislation%20and%20Regulation%20Category%20Update.pdf

 

http://www.nabca.org/News/Files/130125%20Regulatory%20Update.pdf

 

——

Wells Fargo’s Weekly Economic & Financial Commentary

 

Source: Wells Fargo

Jan 25th

 

U.S.

.         The temporary suspension of the debt limit allows politicians to focus on the pending sequester and continuing resolution discussions.

.         However, the continued uncertainty surrounding fiscal and economic policy will likely impact industrial production, employment, and consumer confidence.

.         Housing continues to be a bright spot as distressed transactions now account for less than 25% of existing home sales and tight inventories are driving prices higher.

.         A surprisingly large decline in initial jobless claims this week also provided some optimism.

 

International

.         Through expansive fiscal and monetary easing, Japan is hoping to increase inflation and encourage economic growth.

.         Critics question why the Bank of Japan is waiting until 2014 to begin asset purchases while others worry that the stimulative action could cause the relative value of the Japanese Yen to fall.

.         Still other economists are concerned about the risk of hyper-inflation from so much money printing by central banks globally.

 

Point of View

.         Interest Rate Watch

.         Improving employment and housing data suggests the economy is improving and that rising demand for credit will lead to a modest rise in interest rates.

.         However, any rise in interest rates will be limited by the Fed’s continuing easy monetary policy.

.         Credit Market Insights

.         Further evidence of the strengthening housing market is the fall in mortgage delinquencies, the decline in distressed sales, and the rise in median home prices.

 

Topic of the Week

.         Small Business Confidence Rebounds

.         In January, business owners reported being less concerned about current conditions and more optimistic about the rest of 2013.

.         Despite the renewed optimism, the Small Business Index remains below longer-term averages as managers remain cautious because of uncertainty regarding the tax code and fiscal policy.

.         For the time being, owners will likely focus on protecting operating margins by controlling costs.

 

 

——

Super Bowl Alcohol Ban Heading To SF? Mayor Ed Lee Wants To Prevent Riots By Restricting Booze

 

Source: Inquisitr

January 25, 2013

 

There could be a Super Bowl alcohol ban coming to San Francisco.

 

Mayor Ed Lee has suggested that restaurants and bars ban hard liquor drink during the big game on February 3. Lee believes that an alcohol ban would prevent riots in the city after the Super Bowl.

 

But Lee isn’t passing any new laws that would require restaurants to look up their liquor cabinets on February 3. Instead, the Mayor and Police Chief Greg Suhr will go on a tour around the neighborhoods that were effected by riots after the San Francisco Giants won the World Series in 2012. Lee said that they will talk to restaurant owners and “suggest that they serve something (other) than heavy alcohol during times of celebration, because that inebriation sometimes doesn’t help with people who want to maybe go beyond the bounds of acceptability in their celebration.”

 

The SF Gate reports that Lee will also be staying in SF instead of heading to New Orleans for the Super Bowl in order to oversee the activities after the game.

 

What do you think about Lee’s idea? Will banning alcohol during the Super Bowl prevent riots?

 

Football fans and hard liquor drinkers may scoff at the idea but several restaurant owners have come out in support of the ban.

 

Adam DeMezza, co-owner of the Giordano Brother’s sandwich and sports bar in the Mission District, said:

 

“It’s a good idea, but it’s going to be a tough sell. I can see where he’s coming from. I’m right on 16th and Valencia. We saw it go down between 16th and 18th streets after the World Series.”

 

USA Today reports that after the World Series in 2012, hundreds of fans took to the street to light fires, break bottles and flip cars. Rioters even destroyed a $700,000 Muni bus during the riots.

 

Lee said that he doesn’t want the same thing to happen after the Super Bowl.

 

Lee said: “I want the city to be both celebratory and safe for everyone.”

 

 

——

SPI Group appoints ex-Bacardi exec for new US chief role (Excerpt)

 

Source: Just-Drinks

By Olly Wehring

25 January 2013

 

SPI Group has coaxed the former head of Bacardi’s North American operations out of retirement to lead its US unit.

 

John Esposito, who retired in 2011, will start as president of SPI’s US division from Monday, the Stolichnaya owner said late yesterday (24 January). When contacted by just-drinks, a spokesperson for SPI confirmed that the US president position has been newly created following the firm’s decision last year to drop William Grant & Sons as its US distributor and set up its own import company.

 

 

——

Direct sales of wine rose 10 percent last year

 

Source: THE PRESS DEMOCRAT

By CATHY BUSSEWITZ

January 24, 2013

 

Selling wine directly to consumers is one of the most profitable lines of business for many wineries, but it’s not easy.

 

While technology is giving North Coast wineries new tools to communicate directly with their customers, a tricky morass of laws dating back to Prohibition hampers their ability to sell and ship wine to consumers outside California.

 

But that is slowly changing, wine marketing executive Brian Baker told more than 250 people Thursday at the Direct to Consumer Wine Symposium in South San Francisco.

 

“In 1997, there were only 17 states in which we could sell wine,” said Baker, vice president of sales and marketing at Chateau Montelena winery. “Today there are 39. And I look forward to the day when I can stand up here and say . . . ‘We are able to sell wine in all 50 states.’ One day.”

 

Wineries sold $1.46 billion worth of wine directly to consumers last year, up 10 percent from 2011, said Jason Eckenroth, CEO of ShipCompliant, which tracks wine sales. Direct shipments totaled 3.17 million cases last year, he said.

 

While just a fraction of the industry’s overall sales, it is a critical business for many small and mid-sized wineries.

 

Direct sales enable wineries to bypass retailers and distributors and retain a larger share of the bottle price. It is one reason North Coast wineries like Sonoma-Cutrer work hard to draw customers to their tasting rooms, and hosting events like jazz concerts and croquet games. There, wineries attempt to convert visitors into steady customers, encouraging them to join the wine club and buy regular shipments directly from the winery.

 

Technology is making it easier to communicate directly. Smartphones are increasingly used in advertising campaigns, especially the use of near-field communications, which enable companies to send messages to possible customers who are driving or walking by. Safeway has been successfully using that technology to draw customers into its stores and direct them to the wine aisle, said Jeff Matisoff, senior vice president of PHD West.

 

“The advances in mobile access fuel the speed at which our social connectivity takes place,” Matisoff said. “Businesses, all businesses, will be changed forever by the continuing dynamic migration to social media in all forms.”

 

Ken Nerlove, owner and grape grower at Elkhorn Peak Cellars, described how he developed a digital “Pinot Noir Chronicles” newsletter with embedded videos and “pinot cams” that showed various stages of the winemaking process. Each email included links where the reader could easily click through to purchase wine.

 

“I should have done it a long time ago, because every email has been profitable for us,” Nerlove said.

 

As wineries increase the volume of their direct-to-consumer shipments, states are taking a closer look at their laws to make sure they’re capturing some of that revenue. They are closely watching “third-party” retailers like Amazon.com and the shipping fulfillment houses some wineries use to ship wine to club members, said Steve Gross, director of state relations for the Wine Institute.

 

This year, Pennsylvania is likely to pass a law to allow direct shipping, Gross said. Attendees were asked to lobby Massachusetts to encourage direct shipping, and the Wine Institute will be introducing a bill in Utah this year that aims to legalize shipping of wine to that state, Gross said.

 

“I don’t think it has a big chance to pass the first time through, but you have to take baby steps,” Gross said.

 

 

——

The Knackered Mother’s Wine Club: Bored of supermarket plonk but put off by wine snobs’ jargon? Raise a glass to this guide (Excerpt)

 

Source: Daily Mail

By Helen Mcginn

25 January 2013

 

The Knackered Mother’s natural habitat is the kitchen. Here she slaves away, putting food on the table for children to flick on to the floor.

 

She exists on a diet of sandwich crusts and leftover fish fingers, gulping the odd half-cup of lukewarm tea if she’s lucky. At night, she can be found lying on the sofa, glass of wine within reach, trying to summon up the energy to speak.

 

If this sounds like you, you’re probably a proud member of The Knackered Mother’s Wine Club (membership isn’t exclusive: if you like wine, you’re in!) – without even knowing it.

 

I’m a knackered mother-of-three and have also worked in the wine industry for years. So I know how important the stuff is – whether it’s to share with friends over a relaxing dinner, to celebrate the happiest moments of our lives or to simply savour a glass alone at the end of a long day.

 

Friends intimidated by the choice of available wines are always asking me for recommendations, and I take great pleasure in helping them step outside their wine comfort zone.

 

Now I’m hoping to help you do the same with my ultimate women’s guide to wine.

 

No matter how exhausted you are, how much the children are playing up or how many people are coming to your dinner party next Saturday night, life’s still too short to drink – or serve – bad wine.

 

EIGHT THINGS I KNOW ABOUT WINE

 

1.?New Zealand Pinot Noir is usually divine.

 

2.?Cheap South African red usually isn’t.

 

3.?Champagne with a bit of age is much more  interesting than young stuff.

 

4.?Chilean Cabernet Sauvignon from the Colchagua region tastes a bit like chocolate.

 

5.?English wines, especially sparkling ones, are definitely improving – and will have their moment.

 

6.?Chinese-made wine will be on our shelves before long.

 

7.?Top-end Burgundy is to die for – really.

 

8.?Leftfield is good, such as Austrian Grüner Veltliner, southern Italian reds and undiscovered Languedoc reds.

 

WHAT’S IN IT?

 

Who’d have thought so much joy could come from the grape – such a small but perfectly formed fruit? Grapes are largely made up of water but it’s all the other stuff in them that makes them great for wine. There are natural sugars, flavours that vary depending on the variety, and natural acidity.

 

Another ingredient delivered in that little package is tannin – a polyphenolic compound, to give it it’s proper definition – found on grapes’ skins, stalks and seeds.

 

The essential ingredient in wine is alcohol. Alcohol isn’t in a grape when it’s picked but when nature’s party trick happens – otherwise known as fermentation – and yeasts convert the natural sugars to alcohol. That’s some party trick.

 

Oak, or rather the flavour of oak, might be found in wine, too. If a wine is aged in oak barrels, the flavours and tannins from the wood will shape the wine over time. Oak is often wine’s walking stick, allowing it to age gracefully and keep standing much longer than it otherwise would.

 

HOW MUCH DO YOU NEED TO SPEND?

 

If you spend £5 on a bottle of wine, more than half the price is made up of duty and tax – meaning you’ve spent just 50p on the wine itself after shipping and retail mark-ups.

 

Generally – and unsurprisingly – as the cost of the bottle rises, so does the quality of the wine. Spend £7 and you’re getting more than double the value in actual wine compared with the £5 bottle. Spend £10 and it doubles again. Spend £20, and half the cost accounts for the actual wine. Beyond £20 and you are buying something probably in limited supply and priced by desire.

 

Only you know how much you are willing to spend. I usually shop for wine costing £5 to £15.

 

Read more: http://www.dailymail.co.uk/news/article-2268563/The-Knackered-Mothers-Wine-Club-Bored-supermarket-plonk-wine-snobs-jargon-Raise-glass-guide.html#ixzz2JCedVeqU

 

——

Australian winemaker pulls labels from NRA wine club list

 

Source: FoxNews

January 25, 2013

 

One of Australia’s leading winemakers is distancing itself from the National Rifle Association, after the company learned it was one of 20 Australian producers that sold wine through the association’s for-profit wine club.

 

According to Australian’s Herald Sun newspaper, Yalumba is pulling its four wines sold through the NRA site. According to pro-gun lobby’s executive vice president, Wayne La Pierre, a donation from every bottle of wine purchased through the club goes to the NRA to support its battle to preserve the Second Amendment.

 

Yalumba’s owner Robert Hill Smith told the Herald Sun he didn’t want his wines associated with the controversial pro-gun rights group.

 

“Philosophically, I’m not disposed towards the NRA, which runs counter to my family’s, and I would think all my employees’, positions on gun laws,” he said.

 

Other Australian producers on NRA’s wine club listings include St Hallett, Jim Barry Wines, d’Arenberg, Tahbilk, and Primo Estate, reported the Herald Sun. The newspaper spoke to Jim Barry Wines boss Peter Barry who said that he unaware that their wines were also among the NRA club’s wine listings.

 

“It’s five steps removed from when I sell the wine,” Jim Barry Wines boss Peter Barry told the Herald Sun. “No matter religion, colour or creed, I’m just happy people are drinking and enjoying Australian wine.”

 

 

——

Exane BNP Paribas equity research: VRANKEN POMMERY (-): Q4 12 sales:  a better price/mix but no miracle

 

Source: Exane BNP

Francois Mosnier

Jan 25th

 

TP: EUR18 . Downside: 18%

Beverages . France . Price (24 Jan. 13): EUR21.9

 

Champagne sales down 4.6% in Q4, 7% below consensus

Champagne sales were down 4.6% in the last-and biggest-quarter of the year. This was a slight improvement vs. Q3 (down 6.4%) and ahead of our -12.5% estimate. Total group sales were down 4.5% as Rosé wines were down 3%, exactly in line with our expectation. Note that we were the most pessimistic in the market and that group sales, although above our forecasts, were 7% below consensus.

 

We estimate volumes have been down more than 5% in Q4

The group has not provided the split between volume and price/mix but mentioned a ‘positive development of the price/mix’ in 2012. This implies an improvement in the price/mix of at least 0.6% in Q4, whereas we anticipated a 7.1% drop as we were worried about intense promotional activity in France and the UK. Comments on the price/mix imply a drop of at least 5.2% in volume in Q4, vs. our estimate of a 6.9% drop. We believe that consensus was looking for a less abrupt volume decline.

 

We have revised our FY 2012 EBIT estimate up by 2%

After having dropped its EBIT guidance, the group now expects to “maintain its profitability in 2012”. We previously expected the EBIT margin to have deteriorated by 20bp in 2012. We now forecast the EBIT margin in line with last year (11%) on the back of the better than expected price/mix. The impact on our EPS is not significant (+1%). The FY12 results will be released on 29 March.

 

 

——

Gap’s Crown Vineyard sold for over $13m

 

Source: DBR

25 January 2013

 

Gap’s Crown Vineyard, a Sonoma Coast estate owned by the California Public Employees Retirement System (CalPERS) in a joint venture with Premier Pacific Vineyards, has been sold for over $13m to Bill Price, a financial investor who holds ownership interests in wineries such as Kistler, Three Sticks, Gary Farrell, Kosta Browne and Durell Vineyard.

 

Located next to Sangiocomo Vineyard on Roberts Road near Cotati, the 138 acre vineyard has variety of soil types at an elevation of 300-800ft above sea level. It mainly produces Pinot Noirs from 106 acres and Chardonnay from 32 acres of the site.

 

Kosta Browne winemaker Michael Browne was quoted by Wine Spectator as saying that the vineyard doesn’t get affected by cold air at such heights and produces fruits with intense flavor.

 

The vineyard supplies its grapes to more than 20 wineries, including Kosta Browne, Patz & Hall and MacPhail.

 

Price told the website that he plans to continue supplying grapes to producers.

 

According to the plan, around 37 acres will be leased to Kosta Browne, while Three Sticks and Price Chanin will also receive grapes from the vineyard.

 

 

——

No World Heritage site for Burgundy

 

Source: Drinks International

By Christian Davis

25 January, 2013

 

Climats du Vignoble de Bourgogne, a lobby organisation for the Burgundy region of France has failed to get the world famous wine-producing vineyards of the region listed by UNESCO as one of its World Heritage sites.

 

The stakeholders in CVB include the Bureau Interprofessionnel des Vins de Bourgogne, the generic body for Burgundy vine growers and wine producers along with the region’s district authorities, Conseil Régional de Bourgogne, Conseil Général de Côte d’Or, along with the cities of Dijon and Beaune.

 

The Climats du Vignoble de Bourgogne, which means the vineyard terroirs of Burgundy,  says: “Much to the disappointment of the inhabitants of Burgundy, the application for the inclusion of the climats – the mosaic of unique plots that make up the Burgundy winegrowing region – on the UNESCO list of World Heritage Sites has been delayed. Only the Chauvet caves and the volcanoes of the Auvergne will be representing France at the 38th session of the World Heritage Committee in July 2014.

 

“With 50,000 signatories backing the campaign, Burgundy is now looking forward to January 2014 when the climats will be considered again for inclusion in 2015,” it states.

 

 

——

A Weaver of Words on Wine-Especially Riesling

 

Source: WSJ

By JAY MCINERNEY

Jan 25th

 

IF THERE WERE a wine-world hierarchy of hipness, as unlikely as that concept may seem, Terry Theise would sit near the pinnacle. You’ve probably never heard of him, but wine writers, sommeliers and chefs tend to speak about Mr. Theise the way middle-age rock fans talk about Radiohead, and his career as a wine importer began the same year as that of the ultimate indie band, in 1985 (though it has to be said he looks more like Peter Yarrow than Thom Yorke). Mr. Theise’s mystique is only enhanced by the fact that he’s known as the champion of German Riesling, a category that remains chronically unpopular with the average American wine drinker despite the exhortations of wine pros.

 

Before your eyes glaze over and you turn the page, let me mention that Mr. Theise (rhymes with fleece) is also a writer whose sales catalogs achieved renown as low-budget wine porn long before he decided to publish a book. “If truffles had orgasms, they might emit this fragrance,” he says of the bouquet of an aged red Burgundy in his book, “Reading Between the Wines.” And here’s his take on the 2010 vintage in Germany: “2010, which by the way I can’t help loving, was a wild weekend with a lover who took you so far past your limits you can’t even remember what those limits ever were. When you fought, plates were thrown. Someone had a knife in hand. The hot wax is still where it dripped on your body, and the hot shower makes the nail-scratches and tooth bites sting. It was amazing and wrenching, and part of you is relieved it’s over and you survived it.” And you thought viticulture was boring.

 

This month comes “Leading Between the Vines,” a short, atmospheric film he wrote and directed that he calls “a love letter to the Riesling culture in Germany.” Mr. Theise, who describes himself as “59, but with the body of a 58-year-old,” decamped to Europe with his girlfriend after dropping out of the University of Hartford in the early ’70s and found himself in Munich when the money ran out. He worked at Munich’s first McDonald’s MCD +0.44% and later for the U.S. Army and along the way discovered Hugh Johnson’s “The World Atlas of Wine,” which rocked him the way Chapman’s translation of Homer rocked Keats. In Munich he was well positioned to visit most of Europe’s major wine regions, including Burgundy and Bordeaux, but it was ultimately the nearby vineyards of the Rhine and Mosel which made the most indelible impression.

 

On his return to his native D.C., he took a job with a wine wholesaler and soon convinced his employer to send him back to Germany to scout out new imports; eventually, he brought his increasingly influential portfolio to New York importer Michael Skurnik, with whom he remains partners. (Company motto: We spit so you can swallow.) While German Riesling remains his first and abiding passion, he helped to introduce Americans to Austria’s great whites-including Grüner Veltliner and Riesling-which became the darlings of sommeliers in the late ’90s. Mr. Theise was also instrumental in introducing his compatriots to the joys of grower Champagne-or farmer fizz, as he like to call the wines, made by those who grew the grapes-a category which continues to grow in popularity even as he struggles to spread the gospel of Riesling in a world of Chardonnay drinkers.

 

Wine writers, sommeliers and chefs tend to speak about Mr. Theise the way middle-age rock fans talk about Radiohead.

 

“The eclecticism of cuisine in the U.S. requires a wine like German Riesling,” he told me over a glass of 2001 Müller Forster Kirchenstück Auslese this past week. “The sweetness echoes the sweetness found so often on the plate and the acidity keeps the palate refreshed, while the low alcohol helps keep your senses sharp. If we start with a tabula rasa and the gods could design a wine for the way we eat now, it would be German Riesling.” The S word, of course, is a stumbling block, as Mr. Theise well knows, many would-be sophisticates being phobic about residual sugar. The Germans themselves are lately obsessed with dry Riesling, despite the fact that this very high-acid grape often benefits from a touch of balancing sweetness, which also makes the wine insanely compatible with most Asian cuisines. “I love those wines that come to the table and say, ‘How can I help?’ ” he says. “As opposed to those that demand attention.”

 

German wine labels are notoriously confusing, but three words have started to appear which can help the consumer. Trocken means dry, while halbtrocken, or half-dry, denotes a wine with up to 18 grams of residual sugar per liter. Feinherb is a term for a slightly sweeter wine which may contain up to around 28 grams of sugar, which Mr. Theise thinks is the sweet spot for most purposes, a kind of platonic ideal for a Riesling of medium ripeness. Dessert wines can tip the scales at more than 100 grams; Coca-Cola clocks in at 110.

 

If you remain unmoved by the case for German Riesling, that’s fine with Mr. Theise. When I ask him if Americans will ever learn to love it, he says, “I remain unconvinced that a mass-market breakthrough for Riesling is possible, but we can grow the niche. If there was a breakthrough, there would be a disequilibrium between supply and demand. Excellent Riesling costs a lot to produce-you have these steep hillsides worked by hand. The people who drink Riesling are the people who go to indie movies instead of Hollywood blockbusters. It’s always going to be a small portion of the population.”

 

He’s sensitive to the charge of elitism-“You wouldn’t believe the amount of time I spend watching professional wrestling”-but defends the notion of a hierarchy of taste. At the top of the hierarchy, he places those wines that speak of their place of origin, that could only come from one place.

 

While most wine educators fall all over themselves claiming to demystify wine, Mr. Theise, in his book, takes the opposite stance. “I think we need not to demystify wine but to remystify it,” he writes. He believes that at its best, wine appreciation is “the cultivation of the mystic,” yielding the kind of aesthetic experience that brings us in touch with the spiritual realm. He approvingly quotes art critic John Berger: “The aesthetic moment offers hope that we are less alone, we are more deeply inserted into existence than the course of a single life would leave us to believe.”

 

Fans of Mr. Theise’s sales catalogs-of which there are more than you’d imagine-who savored his humor, his over-the-top metaphors and his wacky wordplay, may have been surprised by the mystic strain in his book. Mr. Theise explains that he has always been “part Ram Dass, part Hunter Thompson. I have a spiritual side and an antic side. The sacred without the profane is precious; the profane without the sacred is just dirty.”

 

For those whose interest is more practical than spiritual, the man who brought you Grüner Veltliner and grower Champagne has what amounts to another hot tip: Mr. Theise is a proponent of Blaufränkisch, the red grape from Austria that has seen a real qualitative leap in recent years, which he compares to Brunello di Montalcino and to Loire Cabernet Franc “without the bell-pepper note.” It satisfies a Riesling lover, he says, “because it’s so soil-sensitive and animated on the palate. And,” he adds, “it tells a story with a beginning, middle and end.” In other words, it’s a Terry Theise kind of wine.

 

 

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Naples Winter Wine Festival Raises More Than $8.5 Million for Children’s Charities

 

World’s Most Successful Charity Wine Auction’s Grand Total Reaches $116 Million

 

Source: Marketwire

Jan 26, 2013

 

An afternoon of bidding during the live auction at the 13th annual Naples Winter Wine Festival raised more than $8.5 million to benefit Collier County’s underprivileged and at-risk children. The grand total raised since the first festival in 2001 has reached $116 million. The money raised is distributed through the festival’s founding organization, Naples Children & Education Foundation. Wine Spectator has ranked the festival the most successful charity wine auction in the nation since 2004.

 

The three-day festival, themed ‘When Stars Align,’ reached the peak of excitement with the live auction at The Ritz-Carlton Golf Resort, Naples, in the Grand Lawn Pavilion, where winning bidders were among 500 guests. Lot totals ranged from $20,000 to $750,000.

 

The top money-raiser among 65 auction lots captured a bid of $750,000 for the fastest, most powerful Ferrari ever made — the 2013 F12berlinetta. The lot gives the winner bragging rights as one of the first in the U.S. to own this car, as well as entry to a Ferrari driving-experience program. The 2014 Maserati Quattroporte V8, the fastest, four-door Maserati and one of the first to be delivered in the U.S., brought a winning bid of $340,000 and includes VIP access to the Pebble Beach Concours d’Elegance and other Maserati events.

 

A lot that captured multiple bids in a modified Dutch auction for a private Naples concert by the band Chicago, including an exquisite dinner and fine wines, raised $385,000.

 

Two experience lots raised $280,000 each: one for a trip to the 2013 Cannes Film Festival to walk the red carpet and spend a week at La Grange, a 17th century farmhouse on a private estate in Provence, and a second was a South Africa experience for two couples for 13 nights, with a $100,000 Graff jewelry credit.

 

On-the-spot donations raised $237,000 for the Lunch Boxes of Love fund-a-need lot that will provide meals for thousands of hungry children and their families.

 

The top wine lot fetched $180,000 for a rare 65-bottle complete vertical of Château Mouton Rothschild Artist Label series housed in a custom-made display table.

 

“The stars aligned today in a constellation of generosity,” said NCEF trustee Bob Edwards, festival chair with his wife, Terry. “We are enormously grateful to everyone under the auction tent for sharing their treasure so our most vulnerable children can reach their potential.”

 

“Every bid helps change children’s lives,” said Terry Edwards. “NCEF trustees and our supporters are passionate about making a difference, whether it is providing eye exams for 8,000 underprivileged children and glasses for hundreds who need them, or distributing nearly 2 million meals for children whose families are at poverty level. When others can’t, NCEF can, because of so many generous people.”

 

Among other top wine-centric lots were:

 

a trip to Paris and Bordeaux with private dinners and tastings with world-renowned vintners led by Darioush vineyards proprietors was auctioned for $220,000;

ownership of 2.5 acres of O. Fournier vineyard property in Argentina and a six-night Argentine escape for two garnered a high bid of $180,000;

a 5-Liter bottle of each of Vérité’s three, 100-point wines from 2007, along with VIP access to the Kentucky Derby, the Preakness and the Belmont Stakes, which brought $130,000; and

the keys to vintner Cliff Lede’s estate and Porsche for a one-month Napa Valley immersion inclusive of a horizontal of 2009 Poetry Cab scored a lofty bid of $130,000.

 

Experience lots that charmed bidders included:

 

a 22-day, around-the-world trip for one couple on a luxury jet traveling to exotic locales such as Panama, Easter Island, Fiji and Bali gained a commanding bid of $240,000;

a glamorous, four-night Parisian trip for eight ladies, with private visits to several legendary fashion houses, commanded a bid of $220,000;

a nine-night, exclusive escape for four couples to three of Aman Resorts’ premier North American properties came in at $200,000; and

a four-night trip to Scotland for eight gentlemen, with accommodations at Kinross House — a 17th century Scottish Neoclassical mansion — complete with hunting and fishing on property, golf and more, went for $150,000.

 

Festival events spanned three days, including a tour of children’s charities; intimate vintner dinners at the homes of NCEF trustees and supporters where celebrity chefs, including the festival’s Chef de Cuisine Michael Anthony prepared the cuisine, with wines personally poured by the festival’s Honored Vintner Barbara Banke of Vérité Winery and other nationally and internationally acclaimed vintners; a wine-down party post-auction; and a celebratory Sunday brunch.

 

NCEF’s mission is to create and expand charitable programs serving underprivileged and at-risk children in Collier County. The foundation currently supports more than 22 grantees and provides grants for long-term strategic initiatives focused on children’s early learning, medical/oral health, out-of-school programs, behavioral health and childhood hunger. As a direct result of NCEF investments, more than 150,000 children have had their lives improved. NCEF has 56 trustees that govern the foundation and host the festival.

 

The 2014 festival will be held Jan. 24 – 26. For more information, visit www.napleswinefestival.com.

 

 

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CASA NOBLE TEQUILA ENTERS CHINESE MARKETPLACE THROUGH NEW PARTNERSHIP WITH BRINKMAN BEVERAGES  

 

Source: The Baddish Group

Jan 27th

 

Casa Noble, the award winning organic tequila has announced a joint venture with Brinkman Beverages, China’s premiere importer and distributor of premium and luxury spirits, to bring the celebrated tequila to market in 2013.

 

“We are thrilled to have the opportunity to share Casa Noble Tequila with China, it is an important market for us, and we are happy to be working with such an established and respected company such as Brinkman Beverages” says Jose “Pepe” Hermosillo, Chairman & CEO of Casa Noble Tequila.

 

Of note is the fact that Casa Noble is one of the first 100% Agave tequila to gain approval from the Chinese Authorities for consumption in that country.  “This first to market strategy will be instrumental in growing the brand in this important market,” Hermosillo added.   Casa Noble tequila is elegantly hand crafted and embodies the soul of Mexico.  “This tequila is best of class,” adds iconic musician Carlos Santana, who is on the board of directors of Casa Noble and is one of the partners in the company.

 

 

——

Tennessee: Critics – Give stores time to adjust to wine bill

 

Source: The Tennessean

ERIK SCHELZIG, Associated Press

Jan. 27, 2013

 

Skeptics of a proposal to allow wine to be sold in Tennessee supermarkets and convenience stores say any change in current law should be deferred for several years to give liquor store owners time to adjust to the new competition.

 

Republican Rep. Ryan Haynes of Knoxville says liquor store owners should be given three to five years to get out of their existing leases or to change their business models if they no longer have the exclusive right to sell wine.

 

“They need give them the opportunity to do that after they’ve played by the rules for all these years,” he said.

 

Haynes, chairman of the House’s State Government Committee, said any proposal also should allow liquor stores to sell items such as beer, ice and mixers – which would require new equipment and store layouts.

 

“They’d have to add on and invest a whole bunch of new capital,” he said.

 

There are 586 licensed liquor stores in the state, according to Tennessee Alcoholic Beverage Commission data. More than 3,000 bars and restaurants in the state are permitted to sell liquor by the drink.

 

Rep. Jon Lundberg, R-Bristol and a main sponsor of the proposal, said the implementation of his bill would already be delayed enough by a requirement to hold a local referendum. For most communities, that vote couldn’t occur until November 2014, he said.

 

“So there is already a built-in timeframe not to get defensive, but to do what every other business does: Work on service, work on prices, work on customer service.”

 

Under current law, supermarkets and convenience stores can’t sell alcohol stronger than beer, and liquor stores can’t sell anything other than wine and spirits. Supporters of the current system include liquor store owners and liquor and beer wholesalers.

 

Liquor retailers have shown little interest in proposals to allow them to sell other items – or to do away with restrictions that allow them to own no more than a single store in the state.

 

Lundberg chuckled at arguments from opponents that allowing cities and counties to decide their own rules would create an unfair advantage for supermarkets in areas where wine sales have been approved.

 

“What I’m laughing at is the liquor industry talking about fairness, I think that’s humorous in itself,” he said. “The entire way that industry works is based on unfair practices and holding on to a monopoly in any way, shape or form they can.”

 

Lundberg’s proposal has the support of House Speaker Beth Harwell, R-Nashville, and Senate Speaker Ron Ramsey, R-Blountville. Both have expressed optimism that the bill will have a better chance than in past years because of changes to committee makeups in both chambers.

 

Lundberg predicts that even his colleagues who are wary about changing wine-sale laws will be careful about stating their position until it comes time to vote on the bill.

 

“There are very few people who are drawing that line in the sand to say ‘no,'” he said. “Because to me you’re saying that, first and foremost, to your local community that would be voting on it.”

 

 

——

New Hampshire: New Hampshire alcohol revenue comes with high costs

 

Source: Fosters.com

By Tym Rourke

Sunday, January 27, 2013

 

New Hampshire sells more alcohol per capita than any other state in the country and is proud of it. The New Hampshire Liquor Commission touts its “brand” – New Hampshire sells cheap alcohol – and aggressively markets this brand through sophisticated advertising. As a result, the sale of alcohol contributes more revenue per capita to the State’s General Fund than any other state. In fact, revenue from the sale of alcohol is New Hampshire’s fourth largest revenue source. However, this success comes with high costs, especially for the business sector.

 

A recently released report by economist Brian Gottlob of PolEcon Research found that the cost associated with excessive alcohol consumption (binge drinking, heavy drinking, underage drinking, and drinking by pregnant women) in New Hampshire is $1.15 billion per year and that about two thirds of that cost, over $756 million, is borne by New Hampshire businesses as a result of lost worker productivity.

 

In addition to the impact on business, excessive alcohol consumption results in increased health care, public safety and criminal justice, and other costs totaling over $390 million. This includes medical expenditures, especially hospital charges, for diagnoses caused by alcohol; costs associated with treatment for excess alcohol consumption; the costs of policing and prosecuting alcohol-related crimes; incarceration costs for those convicted of alcohol-related crimes; and the costs associated with alcohol-related motor vehicle crashes.

 

Of the total $1.15 billion in costs each year, $824 million is borne by the private sector and $251 million is borne by state and local governments.

 

The business sector should be particularly concerned about the findings in the Gottlob report. Individuals who work less, produce less and earn less because of excessive alcohol consumption represent a waste of human resources. Due to a slowing of population growth and fewer people moving to New Hampshire, human resources are becoming scarcer in New Hampshire. If New Hampshire wants to maximize the performance of its economy, it cannot afford to waste human resources. The gravity of the impact of excessive alcohol consumption on New Hampshire’s economy was underscored in Gottlob’s conclusion: “[A]lcohol treatment and prevention is likely to have a greater long-term economic impact than nearly all other strategies to improve the performance of the New Hampshire economy.”

 

During her recent inaugural address, Gov. Maggie Hassan said, “There are some things that government must do, not only to help our most vulnerable citizens, but also to provide the platform for economic growth.” Ensuring access to alcohol treatment and prevention services is one of the things government must do if it wants to improve the performance of New Hampshire’s economy.

 

Under existing law, a small percentage of profits from the sale of alcohol in New Hampshire is required to be used for alcohol prevention and treatment services. Each year state budget writers suspend this law and use some of the dedicated profits for other purposes. The law recognizes that a state that not only sells alcohol but also aggressively markets it has a responsibility to deal with the problems that result.

 

For the health of New Hampshire’s workforce and the New Hampshire business community, we urge the Governor and Legislature to make the right decision – act to ensure the formula for funding prevention and treatment services is not suspended.

 

Tym Rourke is the New Hampshire Charitable Foundation director of programs and chair of the Governor’s Commission on Alcohol and Other Drug Abuse Prevention, Intervention and Treatment

 

 

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Maryland: SOUTHERN WINE & SPIRITS TO OPEN NEW LOCATION (Excerpt)

 

Source: Real Estate Rama

January 24, 2013

 

One of the region’s premier distributors of wine and spirits has leased a new Salisbury facility. The company will lease approximately 2,500 square feet at 1607 Northwood Drive in Salisbury, MD. Miami based Southern Wine & Spirits will utilize the facility for regional sales and administration as well as a customer training location.

 

Since its founding in 1968, Southern Wine and Spirits of America, Inc. has been a nationally recognized wine and spirits distributor. Today, the company operates in 35 states, including its original Florida market, where its corporate headquarters is located in Miami.

 

According to Rob Kenney, Regional Manager for Southern, “We are really excited to have secured a facility that meets our requirements perfectly. Our customers and associates will greatly benefit from this new location.” The transaction was facilitated by John McClellan, CCIM with Sperry Van Ness – Miller Commercial Real Estate.

 

 

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Colorado: Sawaged must give up ownership of Daveco Liquors in Thornton

 

Source: Denver Post

By Monte Whaley

01/14/2013

 

The owner of Thornton’s Daveco Liquors – reportedly the world’s largest liquor store – must give up the operation and ownership of the store as part of a stipulation and agreement with the Colorado Department of Revenue, Liquor and Tobacco Enforcement Division.

 

The agreement, which was signed earlier this month with the state and Daveco Liquors Corporation, says that owner Hani Sawaged will turn over ownership and the operation of the store to an independent blind trust, which will sell the business within two years.

 

Also, Sawaged must never make an application for, or create a financial interest, in any Colorado liquor store.

 

The stipulation may signal the end of legal troubles for Hani “Henry” Sawaged, who in 2008 proudly proclaimed that Daveco Liquors was the world’s largest liquor store. Guinness World Records made it official, giving him the designation that same year.

 

“I kept saying this is the world’s largest liquor store and people kept saying ‘you can’t prove that,'” Sawaged told the Denver Post in 2008. “Now people know I’m a man of my word.”

 

The Department of Revenue in November 2009 alleged that Hani and his brothers tried to enrich themselves by underreporting and underpaying over $1 million in taxes.

 

The department said that Daveco allowed brothers Ghassan Sawaged, Bassam Sawaged and Shafeek Sawaged to act as owners even though they were not listed as owners.

 

The state also alleged that Issam Sawaged loaned money to Daveco, which created a prohibited financial interest because Issam Sawaged is the owner of Davidson Liquors Inc., which holds a retail liquor store license in Douglas County.

 

In separate stipulations with the state, Ghassan Sawaged and Bassam Sawged will not be allowed to apply for or create a financial interest in any Colorado liquor license for the 24 months after their Aug. 13, 2012 guilty pleas to class 3 felony theft and failure to file a return or pay tax, a misdemeanor.

 

In November, Hani “Henry” Sawaged was ordered to pay $1.3 million in restitution for violating the Colorado Organized Crime Control Act.

 

Other counts of theft, computer crime and tax evasion were dismissed.

 

Investigators claimed that from January through August 2008, Hani Sawaged and his brothers logged fictitious merchandise returns and took $5.4 million in cash from Daveco.

 

The results was the underreporting and underpayment of sales taxes to Thornton and the state in excess of $1 million.

 

 

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Texas: Some in North Texas city push to roll back dry law

 

Source: CBS 10

Jan 27, 2013

 

Restaurateurs and business owners in the Dallas suburb of Plano want to reverse a city ban on liquor sales.

 

The Dallas Morning News reports (http://dallasne.ws/UuNuXk ) that supporters of a petition for a ballot measure have organized under a group named Plano Citizens for Economic Equality. Now, residents can buy beer or wine in the city but have to drive to nearby areas for liquor. Business owners required by state law to buy the liquor they serve from inside the county say they’re also at a disadvantage.

 

Plano city officials are currently validating the more than 25,000 signatures on the group’s petition.

 

Efforts to roll back dry laws have succeeded in several North Texas cities in the recent past.

 

 

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Canada: Finance minister says no to selling alcohol in corner stores

 

Source: CBC

Thu, 24 Jan, 2013

 

The provincial government says it has no plans to either privatize the Nova Scotia Liquor Corporation or to allow the sale of alcohol in corner stores, rejecting an idea put forward by Progressive-Conservative Leader Jamie Baillie.

 

The future of the Crown corporation has been questioned after its opposition to so-called U-Vint stores, where people are making and bottling their own wine and beer.

 

Earlier this month Baillie said it was time to consider selling beer and wine in corner stores, but Finance Minister Maureen MacDonald said she’s happy with arrangement.

 

“Our government has no plan whatsoever to privatize the liquor corporation. Secondly, I’m not aware that access to alcohol is a problem in Nova Scotia. We have many, many retail operations off the Nova Scotia Liquor Corporation attached to various grocery chains and that seems to be working quite well,” she said.

 

The Halifax MLA said there are also agency stores in parts of the province where there are longer distances between NSLC outlets.

 

There are 106 liquor stores across the province, with total sales of more than half a billion dollars per year.

 

 

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Australia: Wine to be sold in SA supermarkets

 

Source: ABC

January 28, 2013

 

A proposal to allow wine sales in South Australian supermarkets contradicts Government policies to target alcohol-fuelled violence, the Opposition says.

 

The State Government intends to introduce draft legislation to Parliament to create a new type of liquor licence and has released a discussion paper on the issue.

 

The licence would allow supermarkets of more than 400 square metres to sell bottled wine but no other type of alcohol.

 

Opposition Leader Isobel Redmond says she is suspending judgment until she sees the details but is concerned it could aggravate the types of social problems already caused by alcohol.

 

“The Government has identified alcohol-fuelled violence is a problem they say they’re trying to address and that indeed preloading is one of the problems they say is causing this alcohol-fuelled violence, that is people having alcohol before going out to licensed premises,” she said.

 

Ms Redmond says excessive drinking is a problem among teenagers and young adults and the culture needs to change.

 

“There is implicit in the attitude that you have to have the availability of alcohol generally a lesson that all our young people seem to be learning and that is you cannot socialise without alcohol,” she said.

 

Attorney-General John Rau says the proposal is intended to save shoppers time and would not lead to more street crime.

 

“We don’t want to turn supermarkets into in effect bottle shops … this is a very limited and deliberately limited licence category,” he said.

 

“The idea with this is that a person who might be buying some chops or some vegetables for their evening meal can also pick up a bottle of wine in the same place.

 

“There is absolutely no evidence to suggest that that sort of person is displaying irresponsible consumption of alcohol.

 

“The alcohol-fuelled violence we see in the city in particular, which I abhor, tends to occur in late-night venues where there are large amounts of people where spirits and fairly powerful alcoholic beverages are sold.”

 

Staff selling the wine would have to be 18-years-old and trained in the responsible service of alcohol.

 

Mr Rau says the proposal is also intended to give local wineries an alternative means of selling their produce.

 

“Small producers here in South Australia are feeling a bit of a squeeze at the present time by having limited access to retail markets,” he said.

 

“We would hope some of the smaller independent wineries would be able to take advantage of this as an alternative way of getting their product sold into the local market.”

 

Mixed response

 

The discussion paper follows debate on the issue and has divided retailers.

 

Joseph Romeo says his North Adelaide supermarket would apply for a licence.

 

“It would just compliment our store. It becomes a one-stop shop and it’s no different to what happens in the ACT, Victoria, New Zealand, Europe and America,” he said.

 

But John Swanson from a nearby bottle shop says it could put specialty retailers like his under threat.

 

“This is a con, to start saying ‘we only want to sell wine, we only want to help small wineries,’ that’s rubbish,” he said.

 

“As soon as they get wine in the next step will be spirits, the next step will be beer.”

 

The Australian Hotels Association says the proposal was developed with little or no industry consultation and wants it withdrawn.

 

Spokesman Ian Horne says the association will raise several concerns with the government during a period allowed for submissions.

 

“Many government agencies, South Australian government agencies, are very, very concerned about the expanding of availability of alcohol,” he said.

 

“On the one hand this Government is trying to shut down liquor outlets with curtailing promotions of alcohol, trying to reduce hours, trying to make it more difficult for current operators with their promotions, and on the other hand they’re giving a free kick to the big end of town.”

 

Feedback on the discussion paper is open until March.

Liquor Industry News 1-25-13

January 25, 2013
www.franklinliquors.com

Franklin Liquors

 

1-25-13 Today is a Biodynamic FLOWER Day.

Great to taste or drink Wine!!

Maker of Jim Beam to close former White Rock facility in Lewiston, lay off 160 workers

 

Source: BDN Maine

Jan 25th

 

Beam Inc., maker of Jim Beam bourbon, announced on Thursday that it will shut down production at its Lewiston facility and shift production of Pinnacle Vodka and Calico Jack Rum to a facility in Kentucky.

 

The 160 employees who work at Beam’s plant in Lewiston will lose their jobs, Paula Erickson, a spokeswoman for Beam, told the Bangor Daily News on Thursday.

 

Employees in Lewiston were told of the decision on Thursday afternoon, Erickson said. All production of Pinnacle and Calico Jack will be shifted to a Beam facility in Frankfort, Ky., but the changes won’t be immediate. The consolidation will take place over the next 15 months and be complete by April 2014, she said.

 

“We wanted to give the workforce as much advance notice as possible,” she said.

 

She continued: “On the flip side, in transferring the operations we will be creating 45 new jobs in Frankfort. There are some positions that anybody in Lewiston . if they wanted to relocate, they could go for these jobs. I realize Kentucky is far away from Maine.”

 

Consolidating production in Frankfort will be more efficient and save the company money, she said.

 

“All of our production is out of Kentucky. This specific facility in Frankfort, Ky., recently underwent an expansion and it has extra capacity in it,” she said. “To have efficiencies in that core area it just makes sense.”

 

Beam acquired the Pinnacle and Calico Jack brands from White Rock Distilleries in April of last year, Erickson said. At the time, Erickson told the BDN there were 180 employees at the Lewiston facility.

 

With nearly 3 million cases produced a year, Pinnacle by far is the biggest brand coming out of Lewiston, she said. She didn’t immediately know how many cases of Calico Jack was produced in Lewiston.

 

In a statement, Ian Gourlay, Beam’s senior vice president of global operations and supply chain, said the decision to shift production from Maine to Kentucky was “a logical step,” and that it is in no way a reflection of the “dedication and hard work” of Beam’s employees in Lewiston.

 

Erickson said Beam will be looking to sell the Lewiston facility.

 

The news is the second blow to Lewiston this week. On Tuesday, Geiger announced it was shutting down its manufacturing business in Lewiston and laying off 75.

 

CORRECTION:  An earlier version of this article stated Beam employs 100 people in Lewiston. The company actually employs 160.

 

 

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Washington: Distributors and Teamsters oppose the Costco Liquor Loophole

 

HB 1161 would make small retailers less competitive and reduce consumer choice

 

Source: Gallatin Public Affairs

January 24, 2013

 

The House Government and Oversight Committee will hear HB 1161 – The Costco Liquor Loophole Bill – today.

 

“We find it amazing that Costco and other proponents of I-1183 are attempting to change the wording of their own initiative only months after the law was implemented,” said John Guadnola, executive director of the Association of Washington Spirits & Wine Distributors.

 

Backers of Initiative 1183 promised voters that privatizing our state’s liquor system would not impact state funding levels from liquor. They said the taxes and fees in the initiative would keep the state whole. To do this 1183 imposes a 17% fee on retailers, and a 10% fee on distributors, and it forces distributors to pay a lump sum of $150 million (less distributor fees already received) for the right to do business in Washington.

 

“Costco deceived the voters of Washington State when they pushed through Initiative 1183 last year, now they are deceiving Washington Bar and Restaurant owners and our Legislators in HB 1161, a plan designed to benefit their own business interests at the expense of the citizens and small business owners of Washington,” said Rick Hicks President of Joint Council of Teamsters No. 28.

 

What Costco now aims to do with HB 1161 is to exempt itself from paying the 17% retail fee when selling to bars and restaurants. In addition, Costco is currently in a lawsuit to exempt itself from the 10% distributor fee on spirits sourced directly from manufacturers.

 

“Costco is trying to have their cake and eat it too,” continued Guadnola. “They want to act like a distributor, but not pay into the system.”

 

HB 1161 would also strengthen the market position of big box retailers at the expense of smaller retailers. Stores like Costco would have an additional advantage over former state-owned and contract store owners in areas throughout the state where big box stores exist.  As our state sees smaller stores close, consumers will have to rely on big box stores like Costco who carry only a fraction of the products of former state-run stores.  

 

 

——

Report: Craft Beer Set to Triple by 2017

 

Still, craft beer’s future isn’t picture-perfect

 

Source: InvestorPlace

By Nate Wooley

Jan 24, 2013

 

Shamrock BeerA research report shows that the growth of the popularity of craft beer is going to continue.

 

Research firm Mintel took a look at the popularity of the specialty brews. Growth was strong from 2007 through 2012 – the height of the recession – so what does the future hold for craft beer?

 

More growth, apparently.

 

Sales of craft beers doubled during the time studied and are expected to triple by 2017, the report found. Already increasing consumer demand for craft beer – combined with a younger generation that has been raised on non-mass-market beers – means growth should boom in the future.

 

One concern, however, is that the number of craft breweries in the market is exploding. Mintel warned that its findings indicated that 1,200 breweries are in the planning stages (the U.S. already has about 2,100), and even established brands could find the market tempted more by new beers than by their already in-place beverages.

 

Also a challenge, of the prime buying market – those in the millennial and Gen X demos – fewer than 20% thought that craft beers presented a greater value. To cope with that, brewers must do a better job of educating beer drinkers beyond the younger millennial group that is their core market.

 

 

——

Craft Beer Sales Continue To Rise

 

Source: Marketing Daily

by Tanya Irwin

Jan 24th

 

Despite the economic downturn, craft beers are defying recessionary trends with an impressive upward swing, according to Mintel.

 

The latest research by Mintel on the craft beer market in the U.S. shows that sales of craft beer nearly doubled between 2007 and 2012, increasing from $5.7 billion in 2007 to $12 billion in 2012.

 

The trend toward craft beer options is set to enjoy robust growth through 2017, with Mintel forecasting the segment to grow to $18 billion by 2017 – a result that will see the segment tripling in the decade between 2007 and 2017.

 

“Unlike its domestic and imported beer counterparts, craft beer has been able to defy overall beer market trends and continue expansion during the economic downturn and subsequent slow recovery,” said Jennifer Zegler, beverage analyst at Mintel, in a release. “While the craft and craft-style beer category remains a small segment of the $78 billion U.S. beer industry, the category has been able to stabilize the overall beer industry, which has experienced volume declines in the domestic and imported beer categories since 2008.”

 

Nearly a quarter (24%) of consumers who drink beer indicate that in 2012 they drank more craft beer sold at stores compared to 2011. More than one in five (22%) report consuming more craft beer in bars or restaurants.

 

Mintel research shows that craft beer’s sweet spot is with 25- to 34-year-old consumers (older Millennials). While overall, some 36% of U.S. consumers drink craft beer, half (50%) of older Millennials do so. And craft beer also wins on taste. Some 43% of both Millennials and Generation X say that craft beer tastes better than domestic beer, compared to 32% of Baby Boomers.

 

Although successful, craft beer is not free from challenges. Only 17% of Millennials and 18% of Generation X say that craft beer is a better value. A majority (56%) of consumers of all ages feel that domestic beer is a better value compared to craft beer. Furthermore, Mintel research found that nearly half (45%) of consumers would try more craft beers if they knew more about them.

 

Despite the variety of beer releases created by craft breweries, craft beers are not yet everyday beer choices for most drinkers due to a lack of understanding about their taste profiles, Zegler says.

 

“To continue growing, craft beer must be its own best advocate and expand appeal beyond Millennials who are most likely to consume craft beer,” she said. “An additional barrier is lack of knowledge. Craft brewers need to focus on education through tastings and classes that inform consumers about the differentiation in flavor between craft beer and other alcoholic drinks.”

 

Mintel research also found that 50% of overall craft beer drinkers express interest in locally made beer, and 25% are interested in purchasing craft beer where it was brewed. Another 39% say they are influenced to purchase a craft beer if it has a personality to which they can relate.

 

 

——

Inspiring Story

 

Fedway’s Perfect Storm (Excerpt)

 

Source: Beverage Media Group

Kristen Wolfe Bieler

January 23, 2013   

 

After suffering catastrophic damage from Hurricane Sandy, the New Jersey wine & spirits wholesaler rebounds with an equal demonstration of force.

 

On Monday night, October 29th, Hurricane Sandy hit the U.S.’s northeast coast breaking records and inflicting unimaginable destruction. Coinciding with high tide and the full moon, the storm brought to shore tidal surges of 16 feet in some places. Although the historic water invasion receded after only several hours with the tide, Sandy would cost the state of New Jersey alone a mind-numbing $29.4 billion.

 

At Fedway Associates, Inc., one of the Garden State’s largest wine and spirit wholesalers, storm preparations had been taken. After all, with its warehouse and main office in the town of South Kearny nestled between the Passaic River to the west and the Hackensack River to the east, the company was no stranger to storms or flooding, having weathered Irene a year earlier. Trucks had been driven to higher ground, the IT system moved to the office’s second floor and in the warehouse-which rarely saw water enter-a number of pallets had been lifted several feet off the floor.

 

Yet Sandy proved to be a different animal entirely. “We’ve had storms before, but nothing like this,” says Neil Barnett, Fedway’s President. “We’ve been based here for the last 40 years and never had any reason to worry that our warehouse operation would be in a serious danger zone.”

 

Security guard David Kengere was on-duty inside the warehouse Monday night. He noticed water seeping in around 8pm, and he began to frantically unplug electrical equipment and move it to the second floor, but he only managed to reach one machine: “I was knee-deep in water, and it was coming in so quickly that I realized I would not make it back to the second floor if I tried for more.” Kengere, who had also been on duty the night Irene struck in August 2011, sat in complete darkness-except for his cell phone flashlight-and watched in helpless astonishment as the destruction began to unfold.

 

Sandy’s tidal surge hit hard, blowing off many of Fedway’s warehouse doors as 10 feet of water forced its way in. The cardboard in stacked pallets was quickly soaked through, and the massive towers began to collapse, each creating tsunami-like waves that caused more destruction. Kengere recalls the first pallet to go down was Castello Banfi, followed by a tower of Cavit Pinot Grigio. By 6am the next morning, the water had receded by several feet, but much of it still stuck inside the building behind closed doors. It was surreal: “When I opened the doors to release the water, I saw fish swimming out,” recalls Kengere.

 

Shock & Devastation

 

Fedway Chairman & CEO, Richard Leventhal, was the first on the scene Tuesday morning, somehow managing to drive to the warehouse from his home in Tenafly. Today, over two months later, he is still unable to fully describe the devastation-“It is impossible to put into words,” he explains. When Leventhal entered the office, he saw the water and debris line at 6 feet along the walls-the entire first floor of the company’s headquarters had been destroyed. With the help of a maintenance worker, Leventhal got into the warehouse and saw the full scale of the wreckage. His first call, from a gas station down the road at 9:30am, was to Barnett, who was unable to leave his neighborhood due to dozens of downed trees and power lines.

 

“Essentially, Richard told me we were screwed,” Barnett recalls. “He told me that we had basically lost our entire inventory and infrastructure and he did not know what we were going to do.” Yet Leventhal, who does recall allowing himself “about an hour of self-pity,” soon called Barnett back. “On that second call, only an hour later, he told me we were going to get through this and we would be back in action before anyone would think it was possible,” Barnett describes. “Right then, he essentially eliminated the mourning period.”

 

Click the link to read the rest of the story……………..

 

http://www.beveragemedia.com/index.php/2013/01/fedways-perfect-storm/#.UQJMtWchGck

 

 

——

Oregon: Liquor privatization issue still percolating in Oregon

 

Source: The Oregonian

Jeff Mapes

January 24, 2013

 

After the bumpy start for Washington’s liquor privatization law last year — which included price hikes that led some consumers fleeing to stores across the border — you might think the issue is off the table in Oregon.

 

It doesn’t appear to be the case.   Both sides are preparing for a potential battle here.

 

Oregon beer and wine distributors, which generally like Oregon’s current state-run system, recently spent $16,000 on a poll exploring public attitudes toward privatization.

 

And the Northwest Grocery Association, which pushed privatization in Washington, is working on its own survey on public attitudes toward ending the state’s monopoly on retail liquor sales.

 

Joe Gilliam, who heads the grocery association, said his group will ask the Legislature to consider privatization legislation, although he conceded it is more likely his group would be forced to go to the ballot with an initiative to have any real chance of success.

 

Paul Romain, the longtime lobbyist for the beer and wine distributors, didn’t release the poll conducted by Davis, Hibbitts & Midgehall of Portland.  But he asserted that voters here are pretty soured on the notion of liquor privatization.

 

“They so screwed it up in Washington state that if you threatened to set off a nuclear device in this state you couldn’t pass it,” quipped Romain.

 

Indeed there was a lot of initial bad publicity about privatization, which was approved by voters in November of 2011 and took effect in April of 2012.  The biggest surprise was that the prices of many products went up, and sales actually increased at some Oregon stores as Washingtonians came across the border.

 

In part that was due to the simple fact that Washington has levied higher taxes on liquor than Oregon, and the initiative was written to maintain the flow of revenue to the state.

 

But Gilliam also the state also botched the transition, leading to supply shortages that, in particular, forced some bar and restaurant owners to buy in Oregon.  He also claimed that distributors have been “gouging” consumers.

 

Gilliam argued that the problems are being worked out, and liquor sales in Washington are now on a steady upward trend.  He said he believes that price is not the only issue voters consider.  Many believe the government shouldn’t be in the liquor business, and many consumers want the convenience of being able to buy liquor at a broader number of outlets.

 

The grocers might have made more headway on that argument if Republicans had maintained at least partial control of the House.  But Democrats have generally shown less interest in privatization.

 

Romain argued that consumers won’t save money on privatization, but that distributors aren’t necessarily opposed to it.  They’re just worried that an initiative written by the grocers will disadvantage distributors.

 

UPDATE: Romain says it is unfair of Gilliam to blame distributors.  He sends along a price comparison done by his group that lays the price differences among Washington, Oregon and California (which has much lower liquor prices) to the tax bite.

 

Whatever the case, you can feel the different interest groups continuing to maneuver in the background.  We’ll  see if it breaks back into public attention in advance of the 2014 election.

 

 

——

Reed Smith Hooks 3 Other Firms In Vodka Trademark Fight

 

Source: Law360

By Jonathan Randles

January 24, 2013

 

A New York state appeals court on Thursday granted Reed Smith LLP’s bid to have three other law firms face liability in a $100 million legal malpractice complaint over the licensing of the trademark Belvedere vodka.

 

An appeals court in Manhattan overturned a lower court and reinstated Reed Smith’s third-party claims for contribution against the other firms, Berry & Perkins, Fross Zelnick Lehrman & Zissu PC and Barack Ferrazzano Kirschbaum & Nagelberg LLP. In the underlying complaint,  Millennium Import LLC, a beverage company, contends Reed Smith bungled its efforts to renew a Belvedere trademark from a California winery for use on its vodka.

 

Reed Smith has a “viable” legal malpractice claim that the three other law firms, which also counseled Millennium on the licensing deal, contributed to the company’s damages, the ruling said. After being sued by the winery for breaching the agreement, Millennium settled for $83 million.

 

The appeals court said Thursday that the lower court was wrong when it determined the three firms were precluded from Reed Smith’s third-party claims under Hercules Chem. Co. v. North Star Reigns. The holdings in the Hercules case cannot be applied to Reed Smith’s third-party claims because they don’t duplicate the firm’s comparative negligence defenses asserted in the underlying dispute, the ruling said.

 

“Where several law firms allegedly participated in giving the advice that led to the plaintiff’s damages, the sole law firm named as a defendant must be entitled to bring the other law firms in as parties to the action to ensure that it has the ability to fully protect its rights,” the appeals court said.

 

In the 2007 complaint, Millennium said it imports and distributes Polish Belvedere brand vodka. In the United States, it had a long-term licensing agreement with the California winery Hambrecht Wine Group LP for the Belvedere trademark. Millennium is owned by the French luxury goods conglomerate LVMH Moet Hennessy Louis Vuitton SA.

 

The winery later tried to pressure Millennium into buying the trademark, the importer said, by indicating that it would license the trademark to a gin distiller. In an attempt to resolve the dispute, Reed Smith instead allegedly spurred the winery to find grounds to cancel the trademark licensing agreement, forcing Millennium to spend tens of millions of dollars to settle the ensuing litigation and buy the trademark, Millennium said.

 

Reed Smith and James H. Berry Jr. of Berry & Perkins declined to comment on the case. Representatives of Fross Zelnick Lehrman & Zissu and Barack Ferrazzano Kirschbaum & Nagelberg could not immediately be reached for comment.

 

Justices Karla Moskowitz, Richard T. Andrias, Peter Tom, David B. Saxe and Rolando T. Acosta sat on the state appeals court panel.

 

Reed Smith is represented by Robert M. Abrahams of Schulte Roth & Zabel LLP.

 

James H. Berry J. and Berry & Perkins are represented by Andrew R. Jones of Furman Kornfeld & Brennan LLP. Fross Zelnick Lehrman & Zissu PC is represented by Robert Churchill of Eaton & Van Winkle LLP. Barack Ferrazzano Kirschbaum & Nagelberg LLP is represented by Daniel F. Markham of Coughlin Duffy LLP.

 

The case is Millennium Import LLC v. Reed Smith LLP et al., case number 603350/2007, in the Appellate Division of the Supreme Court of the State of New York, First Judicial Department.

 

 

——

Three men used industrial alcohol and methanol found in antifreeze to make deadly ‘Arctic Ice’ fake vodka

 

Source: Daily Mail

By Mark Duell

24 January 2013

 

A trio of men who used industrial alcohol to make deadly ‘Arctic Ice’ fake vodka which had the same liquid used in antifreeze and cleaning fluids were sentenced today – but two of them avoided jail.

 

The illegal alcohol manufacturing and bottling plant in the city centre of Birmingham, West Midlands, was uncovered by HM Revenue and Customs officers, who raided an industrial unit in July 2011.

 

Forensic analysis of the fake vodka showed it contained dangerous levels of methanol – which if drunk can cause abdominal pain, dizziness, blindness, kidney problems, comas or even death.

 

Investigators seized over 2,500 litres of counterfeit vodka labelled ‘Arctic Ice’ and 13 1,000-litre plastic industrial bulk containers – three of which contained industrial alcohol of 96 per cent.

 

Michael Woodlock, 53, was today jailed for one year. Gavin Berrow, 43, was sentenced to four months in prison, suspended for 12 months, and ordered to carry out 200 hours of unpaid work.

 

Alex Dean Rollason, 21, was jailed for four months, suspended for 12 months, and ordered to carry out 200 hours of unpaid work. The three men were sentenced at Birmingham Crown Court.

 

Adrian Farley, HMRC’s assistant director of criminal investigations, said 8,400 empty 70cl glass bottles were also seized. He added: ‘This was a substantial bottling, production and distribution plant.

 

‘It was capable of making and distributing large quantities of counterfeit vodka throughout the country, with the potential of costing the UK taxpayer nearly £500,000 in lost revenue.’

 

‘The crime gang took no precautions to make the environment safe creating a high risk of an explosion and loss of life in their city centre unit.

 

‘They were fully aware that the counterfeit vodka, which contained dangerous levels of methanol, was unfit to drink.

 

‘They duped the public into buying what they believed were legitimate goods when in fact the counterfeit vodka could have killed them.’

 

All three men are from the West Midlands and pleaded guilty to charges of Fraudulent Evasion of Excise Duty Contrary to the Customs and Excise Management Act 1979.

 

Joint investigations with local authorities across the West Midlands led to the discovery that Arctic Ice was already in circulation at a number of independent stores.

 

Seizures were made in Birmingham, Hereford, Shropshire, Staffordshire and Worcester by Trading Standards units – some of which are pursuing separate prosecutions.

 

The raid took place six days after five Lithuanian men were killed in an explosion at an illicit vodka distillery in Boston, Lincolnshire, believed to have been caused by the lighting of a cigarette.

 

 

——

Arnault says Belgian move can shield LVMH

 

Source: FT

By Scheherazade Daneshkhu in Paris

Jan 24th

 

Bernard Arnault, Europe’s richest man, is determined to become a Belgian national as part of a succession plan aimed at preventing a break-up of LVMH, the luxury goods group he has built single-handedly into the world’s largest by sales.

 

The head of LVMH has been accused by the media in his homeland of wanting Belgian nationality to escape President François Hollande’s higher French taxes but he has repeatedly insisted that he “is and will remain fiscally domiciled in France”.

 

The French billionaire, who controls LVMH through a cascade of companies including Groupe Arnault, his private family holding company, has set up a private foundation in Belgium, called Protectinvest, which will prevent his five children from selling LVMH shares if the 63-year-old were to die within the next 10 years.

 

Mr Arnault, who has used family splits to his advantage in his own takeovers, appears keen to prevent the sprawling empire he has constructed over 30 years, and whose 60 brands include Christian Dior, Dom Pérignon champagne and Louis Vuitton bags, from being put at risk of disunity.

 

A spokesman for LVMH said: “Bernard Arnault’s main wish is to protect LVMH as the world’s leading luxury goods group because it sells French products throughout the world, which is important for France. The aim of this foundation is to protect the integrity of the LVMH group until 2023.”

 

Belgium was chosen because “France does not have in its legal framework the concept of a private foundation, which is why it cannot be established in France”, the spokesman said.

 

Protectinvest was set up in December 2008 – well before France’s Socialist government came to power in May 2012.

 

The foundation would lock up the Arnault children’s ability to sell shares until 2023, by which time Mr Arnault’s youngest child will be 25, an age deemed old enough to assume responsibility for LVMH, along with his older siblings.

 

The children are also barred from sitting on the board of Protectinvest through a stipulation in the foundation’s statutes that “assuming the death of Mr Bernard Arnault, the administrators can only be people over the age of 50”. Delphine, the oldest child and only daughter, will be 48 in 2023.

 

Instead, Protectinvest – which will only become operational if Mr Arnault were to die – will be run by a committee of three people.

 

It emerged on Thursday that the committee would be headed by Thierry Breton, a trusted friend of Mr Arnault and chief executive of Atos Origin, the information technology services company.

 

Mr Breton is a former French finance minister and used to head France Telecom. He also sits on the board of Carrefour – listed as an independent director – the retailer in which Groupe Arnault holds a 16 per cent stake jointly with Colony Capital of the US.

 

Mr Arnault’s two oldest children, Delphine and Antoine – both LVMH directors – are from a first marriage, while he has three sons from his second marriage to Hélène Mercier, the Canadian pianist, the youngest of whom is 14.

 

According to its statutes, Protectinvest “has as its disinterested aim, assuming the death of Mr Bernard Arnault and until October 23 2023, of protecting directly the financial and family interests of the Pilinvest company”. Pilinvest is another Brussels-based company owned 99.99 per cent by Mr Arnault.

 

Family-controlled Hermès, which has called LVMH’s moves to build a 22 per cent stake in the silk scarves and Birkin bags group an “attack”, itself set up a holding company a year ago giving family members first right of refusal on share sales to protect itself against LVMH stakebuilding. It is in a legal dispute with LVMH over the latter’s controversial and sudden acquisition of 17 per cent of its shares in 2010.

 

News of Mr Arnault’s application for Belgian citizenship caused a furore in France when it emerged last September. Mr Arnault has said he wants Belgian nationality because Groupe Arnault “has numerous investments in Belgium”, which he “intends to develop”.

 

People close to Mr Arnault say his main motivation is to anticipate a potential legal challenge to Protectinvest emanating from France, which would be averted were he to become a Belgian national.

 

Mr Arnault’s application has been turned down by the Belgian immigration department and the prosecutor’s office on the basis that he has not lived in Belgium for the customary three years.

 

However, he is awaiting a final decision on his case by a parliamentary committee.

 

Although Mr Arnault has been keen to stress his business links to Belgium, some believe his motives may be mixed.

 

Lawyers in Brussels say that if he were to change his mind and renounce his French passport at a future date, Belgian nationality would enable him to seek residency in Monaco. Currently French nationals cannot benefit from the tax breaks in the princely state. Second, he would protect himself if the French government decided to tax all its nationals’ assets regardless of their residency, as is the case for US citizens.

 

 

——

Brewing Controversy Over Proposal to Make Water Cheaper Than Beer

 

In Czech Republic, Idea Taps Strong Feelings; Birthplace of Pilsner

 

Source: WSJ

By SEAN CARNEY

Jan 24th

 

In most restaurants and taverns across the Czech Republic, a mug of beer is, literally, cheaper than water. The country’s health minister wants to change that as he tries to put Czechs on a lower-hops diet.

 

It won’t be easy. Here in the birthplace of pilsner, beer is known as “liquid bread.” Czechs drink an average of 37 gallons of the stuff per person per year, the highest per capita consumption in the world and more than double U.S. levels.

 

Pub patrons go through the sudsy amber liquid so fast that the nation’s largest brewer, SABMiller SAB.LN -0.15% unit Plzensky Prazdroj, maker of famed Pilsner Urquell, delivers beer with the kind of tank trucks used to haul gasoline, and pumps it into bars’ storage vats.

 

“Beer is like mother’s milk for adults,” said Marek Gollner, a 36-year-old computer programmer and regular customer at the U Zelenku pub in the Prague suburb of Zbraslav. “For a Czech, it’s like wine for a Frenchman or vodka for a Russian.”

 

Faced with such attitudes, Health Minister Leos Heger’s campaign to make Bohemia a bit less bohemian is starting with baby steps.

 

He wants to require restaurants and bars to offer at least one nonalcoholic beverage at a price lower than that of the same amount of beer, primarily to offer teens, who can legally drink at 18, an alternative. The easiest thing to do, Dr. Heger said, would be to offer patrons pitchers of tap water.

 

Even that has some tavern keepers foaming.

 

“It ticks me off,” said Eleni Atanasopulosova, 34, the manager at U Zelenku. “There are more pressing issues. People are struggling to find work. The government should do something more important.”

 

Dr. Heger, a 64-year-old radiologist who likes to toss back a few himself, attributes such resistance to a general Czech dislike of government regulation, a legacy of the country’s decades under repressive communist rule.

 

“It’s important to speak against social engineering,” Dr. Heger said. “We don’t want to suppress smoking and drinking among adults. It’s their right.” He added: “I’m not against alcohol consumption. It just has to be reasonable.”

 

The minister’s relatively modest proposals, which also include raising the penalties for serving alcohol to minors and measures to limit indoor smoking, haven’t even been approved by the cabinet yet, let alone been considered by Parliament. He hopes his latest push will spark a national conversation on the place beer holds in Czech society.

 

“Beer is really widespread, with very deep roots.It’s a well-anchored, important part of everyday life,” said Jiri Vinopal, director of the Czech Academy of Sciences’ Public Opinion Research Center. “It’s always been that way. Since the Middle Ages people here have made beer their primary drink.”

 

For that reason, Mr. Vinopal said, any change in regulations affecting beer “is a very sensitive subject.”

 

For at least a thousand years, beer has been a staple in the Czech lands, and the country’s native hops are renowned for being aromatic and bitter. St. Wenceslas, a martyred 10th-century Czech nobleman, is a patron saint of brewing and malting, in addition to being the patron saint of the nation.

 

When the city of Plzen, about 60 miles southwest of Prague, got its charter in 1295, its people were given the right to brew beer, helping ensure the settlement’s prosperity. (In the 19th century, the city gave its name to the bottom-fermented lager made there and now known as pilsner.)

 

The country’s oldest brewery still in operation, Prague’s U Fleku, was founded in 1499. Beer was so important to the Czech political economy at that time that knights and nobles fought for and won the right to brew beer under a landmark royal decree in 1517.

 

Nearly half a millennium later, beer remains at the center of Czech social life. It is common for people to head to a pub after work to relax and socialize with friends. Barkeeps often don’t ask customers what they would like to drink. Instead, they just plop down a glass of lager and start a tab.

 

At a typical local pub, a pint-500 milliliters, actually, in this metric-measuring country-costs about $1. A similar portion of water, juice or soda generally costs twice as much. Offering free tap water as at U.S. eateries is extremely rare.

 

At U Zelenku, a neighborhood institution for more than a century, for instance, a pint of the cheapest beer goes for 99 cents. The same size of soda water is $1.30. At the fancier Kolkovna restaurant in touristy Old Town, a pint is $2.50, while mineral water is $2.29, for a bottle less than half the size.

 

The Czech Hotel and Restaurant Association has criticized Dr. Heger’s proposals, calling them unacceptable and saying it will fight them in court, if it comes to that. Vaclav Starek, the association’s president, said the government risks over-regulating a struggling industry at the most inopportune time, with the country in the midst of a recession. “The wave of new regulations is suffocating,” Mr. Starek said.

 

Public-health officials and economists say the Czech Republic’s relatively low beer prices encourage consumption and contribute to underage drinking, since it makes beer more affordable for youngsters.

 

Czechs have the highest rate of alcohol consumption among children aged 13 to 15 in Europe, a rate that is also higher than that in the U.S. and Canada, according to the World Health Organization.

 

Dr. Heger said that regulations should be aimed at kids. “We’d like to prevent kids from smoking and drinking. It’s the major task,” he said. But that will require changing adults’ attitudes as well, since now many ignore laws prohibiting alcohol sales to those under 18 and look the other way when teenagers are drinking.

 

The minister said that raising excise taxes on beer and spirits would help but said it isn’t within his power to propose. And he said he has realistic expectations about the measures he is pushing for Parliament to adopt. “I can imagine the law we offer may not be successful this year,” he said. “But, then, maybe next time.”

 

 

——

Irish county passes motion to let certain rural drivers drive while legally drunk

 

Source: The Star

January 23, 2013

 

Where else but in Ireland, where the pub life is woven into the country’s cultural fabric, would this happen?

 

Kerry County Council passed a motion Monday night for a permit system that would allow isolated rural people to drink over the legal limit and drive home.

 

County Mayor Terry O’Brien, however, stands opposed, charging that the ones who voted for the motion own pubs and have a vested interest in seeing relaxed standards.

 

The legal limit for fully licensed drivers is 0.05 (50 milligrams of alcohol per 100ml of blood).

 

The motion, tabled by Councillor Danny Healy-Rae, passed by a vote of 5-3.

 

Usually, there are 27 councillors in the chamber but it was a long day and the debate dragged into the night. In the end, there were only 12 or 13 councillors remaining and a handful abstained, the mayor said.

 

“The councillor who actually moved this owns a pub,” O’Brien told the Star. “And people who voted with him also own pubs.”

 

Before becoming law, the motion has to be approved by the Department of Justice – O’Brien doesn’t think the government will pass it.

 

O’Brien told the Star he fought hard against the motion because he’s worried about more carnage on the roads of Ireland and in County Kerry, which has a population of about 145,000 in the southwest part of the country.

 

In tabling the motion, Healy-Rae said that people living in rural areas cannot take public transit and have limited access to taxis.

 

He said he wants those with permits to be able to have two or three drinks (no more than that) and be exempt from the drinking laws.

 

Healy-Rae told the Star that he brought the motion because his constituents wanted it because they feel “trapped in their homes.”

 

He referred to some of these “lonely” people who developed depression and committed suicide.

 

Healy-Rae owns Jackie Healy-Rae’s pub on Main St., in Kilgarvin.

 

The controversial motion suggested that the police would have the discretion to issue these permits to allow certain people to drink up to three pints and drive home along a rural road at no more than 30 km/h.

 

“How would you begin to justify who had one pint and who had two?” the mayor told the Star.

 

O’Brien thinks the motion could have deadly consequences.

 

“I cannot imagine any person having the authority or experience to be able to judge a person after two or three pints,” O’Brien told the Star. “I think it’s absolute madness.”

 

National statistics show that Ireland’s road deaths have been falling annually as well as the number of people who are charged with driving while intoxicated.

 

The County Kerry mayor said he is sympathetic to isolated people in the rural areas.

 

“There’s an elderly population out there who are living alone. Unfortunately, I couldn’t support giving people this licence,” he said. “What happens when the first person is killed with this?”

 

 

——

ABL Economic Impact Study Expanded to Include State Legislative Districts

 

New study quantifies economic importance of beverage alcohol retailers and hospitality industry

 

Source: ABL
Jan 24th

 

With state legislative sessions gaveling in throughout the country, American Beverage Licensees (ABL) is pleased to announce that it has expanded its 2012 Economic Impact Study of America’s Beer, Wine and Spirits Retailers to include the economic contributions of beverage licensees in state house and state senate districts across the country.

 

With so much alcohol policy being debated and discussed at the state level thanks to the 21st amendment, ABL has been working on a way for beverage licensees to quantify the significant contribution they to their communities make when it comes to jobs, taxes and economic impact.  By utilizing this economic study data, America’s beer, wine and spirits retailers now have the ability to tell their overwhelmingly positive story to their State Senators and Representatives as they advocate under state capitol domes from Hartford to Austin to Cheyenne.

 

“We know that our members face challenges at every level and when not running their businesses, are engaged in legislative fights every day,” said John Bodnovich, ABL’s Executive Director.  “ABL feels strongly about dedicating resources that will help its members preserve commonsense state alcohol laws and oppose policy proposals that would have an adverse effect on small independent business.”

 

Through the ABL website, www.ablusa.org, ABL members can create reports and download data that detail the number of jobs and amount of taxes that they provide to their communities, as well as more in-depth economic impact information at the state legislative district level.

 

“ABL remains keenly focused on alcohol issues on the federal level, but we recognize that strong retailers make strong advocates to Congress.  Fighting to keep them in business is at the core of ABL’s mission and ultimately beneficial for anyone who desires a diverse and vibrant alcohol marketplace full of entrepreneurs and locally-owned family businesses,” said Bodnovich.

 

Access to state Senate and House district data is free to ABL members and requires additional log-in information which can be obtained by contacting the ABL office.  The 2012 Economic Impact Study of America’s Beer, Wine and Spirits Retailers, which was prepared by John Dunham & Associates, can be sorted nationally, by state and by congressional district, and is also available at www.ablusa.org.

 

 

——

The Other Guys reports 25% increase in wine and spirits sales in fiscal 2012

 

Source: DBR

24 January 2013

 

US-based wine and spirits company The Other Guys (TOG) has shipped over 300,000 cases of wine and spirits in fiscal 2012, compared with 239,000 cases in 2011, registering a 25% rise.

 

TOG sold approximately 8,000 cases of premium spirits in fiscal 2012. The company’s 35 Maple Street spirits division launched two brands – Uncle Val’s Botanical Gin and Kirk & Sweeney Dominican Rum – during the year.

 

TOG’s Leese-Fitch wine brands including Chardonnay, Cabernet Sauvignon, Pinot Noir, Sauvignon Blanc, Zinfandel and Merlot had shown sales of more than 150,000 cases.

 

TOG president Sebastiani said, “We strive to offer a portfolio of high quality wine and spirits that are uniquely positioned in the marketplace, and we pride ourselves on the ability to appeal to a wide array of consumers.”

 

Sebastiani said the company is planning to introduce small-batch bourbon later this year as part of its efforts to extend its reach into the burgeoning craft spirits market.

 

 

——

Consumers’ Willingness to Trade Up in Wine Is Weaker than in Beer or Spirits, Study Shows

 

Source: Consumer Edge Insight

Jan 24th

 

A recent survey  of alcohol consumer behaviors in the United States among people who consume any type of alcoholic beverage at least once a week showed that the wine category suffers from weaker willingness to trade-up to premium brands than the beer category or various segments of the spirits category.

 

Only 30% of wine drinkers say they like to treat themselves to higher-quality brands, compared to 38% of beer drinkers who like to treat themselves.  Willingness to trade-up is much higher among spirits drinkers, with 80% of vodka drinkers saying they like to treat themselves and 87% of whiskey drinkers saying this.  Wine and beer drinkers are not as convinced that higher-priced brands are higher-quality: only 28% of wine drinkers think that higher-priced brands of wine are usually better and 26% of beer drinkers believe this about beer. This belief that higher prices signify higher quality is much stronger among spirits drinkers, as 82% of vodka drinkers believe this about vodka and 87% of whiskey drinkers believe this about whiskey.

 

Even more affluent wine drinkers aren’t a great deal more disposed to trade up.  Only 33% of wine drinkers with household income of $100K+ say they like to treat themselves to higher-quality brands, compared to 43% of beer drinkers with $100K+ income, 94% of vodka drinkers with $100K+ income, and 93% of whiskey drinkers with $100K+ income.

 

What wine drinkers do like is trying new brands-41% say they love trying new brands of wine and 31% of them are open to trying new brands that are less expensive.

 

“Wine drinkers are more skeptical that higher prices are a harbinger of higher-quality and are not as pre-disposed to trading up as spirits drinkers or beer drinkers,” said David Decker, President, Consumer Edge Insight.  

 

“This will make it more difficult for the wine industry to take price increases and to follow the spirits companies’ strategy of migrating consumers to more premium-priced brands.  Premium wine brands need to do a better job making the case to wine drinkers why they cost more.”

 

ABOUT ALCOHOLIC BEVERAGE DEMANDTRACKER

Alcoholic Beverage DemandTracker provides an in-depth analysis of the key economic and attitudinal factors impacting alcoholic beverage demand. Data for the most recent wave of Alcoholic Beverage DemandTracker was collected in November via an online survey of over 2,000 US consumers, age 21 and over, designed and weighted to be representative of the US adult alcohol-drinking population.  Some of the topics addressed include drivers of change in alcohol category consumption, the impact of economic factors and secular trends on overall alcohol consumption and by category, channel behaviors, ways to increase category consumption, and numerous brand metrics.  The research covers the beer, spirits, wine, cider, and flavored-malt beverage categories including the largest brands in each category.

To learn more, call David Decker at (203) 504-7558 or send an email to ddecker@consumeredgeinsight.com

 

ABOUT CONSUMER EDGE INSIGHT

Consumer Edge Insight LLC is a market research and consulting firm that helps investors and companies that want to have deeper insight into how consumer behavior is changing around the world and how to profit from those changes. We help companies monitor key trends and develop strategies to enhance shareholder value. We help investors understand key trends and identify which companies are most likely to succeed.  For further information, contact David Decker, ddecker@consumeredgeinsight.com, or visit www.consumeredgeinsight.com

 

 

——

National Rifle Association starts wine club

 

Source: Decanter

by Richard Woodard

Thursday 24 January 2013

 

Wine enthusiasts can now indulge their passion and back the right to bear arms at the same time by joining the National Rifle Association of America’s Wine Club.

 

‘Now you can support the 2nd Amendment with every wine you buy’ runs the strapline on the homepage of the club, nrawineclub.com, which also offers new members a ‘nine-piece custom NRA engraved wine box’ when they join.

 

The club is administered by wine club specialist Vinesse, and non-members of the National Rifle Association are welcome to buy wine (although they can get a rebate off NRA membership if they spend a certain amount).

 

A proportion of the profits goes into NRA coffers at a time when the organisation is gearing up to battle President Obama’s plans for enhanced gun control following the mass shooting at Sandy Hook.

 

Hundreds of wines are available through the site, from a Campo de Borja Garnacha at US$6.99 right up to Joseph Phelps Napa Valley Insignia 2008 at $159.99.

 

Champagne lovers can pick up Louis Roederer Cristal 2005 at $199.95 a bottle, or Dom Perignon 2003 for $139.99, and weapons enthusiasts might like to pop the cork in traditional style using a Laguiole Champagne sabre ($149.95).

 

In a welcome letter on the NRA Wine Club website, controversial NRA executive vice president Wayne La Pierre highlights the benefits of membership: supporting 2nd Amendment rights and ‘the convenience of home delivery on the finest wines that vineyards all over the world have to offer’.

 

He adds: ‘Your purchase will directly benefit the NRA’s continuing support of America’s Right to Keep and Bear Arms and the other basic freedoms of the American Culture.

 

‘The NRA Wine Club has been founded on these principals (sic) and is bringing you the finest wines that are available.’

 

 

——

US consumers ‘confused’ by multiple Sonoma AVAs

 

Source: Decanter

by Courtney Humiston in Sonoma

Thursday 24 January 2013

 

Sonoma Valley has announced the launch of a new campaign to differentiate the region from the larger Sonoma Coast and even larger Sonoma County AVA.

 

There is confusion in the marketplace regarding the differences between the many appellations that include the name ‘Sonoma’, the Sonoma Valley Vintners and Growers Alliance reckons.

 

‘We know that Sonoma Valley has very distinct appellations, but there is confusion with the title. Is it a coast? Is it a valley? Is it a town? A county? Or all?’ executive director Maureen Cottingham said.

 

The 400,000ha Sonoma County appellation includes 15 sub-regions, 60 miles of coastline and more than 25,000ha of vineyards.

 

A recent survey of 1,000 US consumers shows that, when purchasing wine, few differentiate between Sonoma County and Sonoma Valley and that using both on a label may even be a disadvantage.

 

‘The presence of an AVA with “Sonoma” already in the name (e.g. Sonoma Mountain) may complicate understanding of conjunctive labeling,’ the survey by research company Wine Opinions says.

 

‘While a substantial number of consumers (42%) can comprehend that a “Sonoma-named” AVA can reside within Sonoma County, over one-quarter are confused by combinations like ‘Sonoma Mountain, Sonoma County” and 22% believe that this indicates a blend of Sonoma Mountain and Sonoma County fruit.’

 

Additionally problematic is the name Sonoma Valley, which includes three sub-AVAS (Bennett Valley, Carneros and Sonoma Mountain) and one proposed sub-AVA (Moon Mountain), two of which are high altitude, mountainous regions.

 

The SVVGA’s ‘Roots Run Deep’ campaign is separate but complementary to the ‘We are Sonoma’ campaign launched by the Sonoma County Vintners and Sonoma County Tourism earlier this month, Cottingham said.

 

 

——

The Joyful Restraint of 2011 Burgundy

 

Source: WSJ

By WILL LYONS

Jan 24th

 

In many ways, today’s fine-wine lovers have never had it so good. Such has been the improvement in modern winemaking techniques, the adoption of measures to eliminate cork taint and the opening up of vast swaths of unexplored viticultural land, that we have been blessed with better-quality and more interesting wines than ever before. Yes, prices have risen and, in some cases, moved our favorites beyond reach, but more often than not, these have been replaced by new wines coming onto the market.

 

It was a point I suggested to an old friend, who worked briefly in the wine trade after studying viticulture at the University of California, Davis. No longer involved in wine, he says he is consistently surprised at the quality on offer compared with a decade ago: “It’s actually very hard to buy a bad bottle these days,” he says.

 

The trick is finding an interesting one, which brings us to perhaps the most interesting wine region of them all: Burgundy. Its 2011 vintage has just been previewed in a plethora of tastings held in London and is on sale now. I can’t think of any other fine-wine region in the world that continues to mesmerize and fascinate quite like Burgundy.

 

Its two principal grape varieties, Pinot Noir for red and Chardonnay for white-and the smattering of plantings of Gamay and Aligote-find an expression when planted in its network of villages in the Côte d’Or, inspiring not just the palate but the intellect, too.

 

In Burgundy, it is still possible to overpay for mediocre wine. Such is the complexity of the region that navigating its myriad villages and vineyards is akin to solving a cryptic crossword. Consumers often complain that its wines are inconsistent and too complex. Burgundians believe a wine’s character is derived principally from the plot of land the vine is planted on, which is graded by a classification system based on the vineyard, village and subdistrict. But a highly classified wine can be expensive and not very good. To compound the problem, Burgundy’s unpredictable weather means every year tastes slightly different. A good short cut is to pick your producer wisely.

 

It may be too much of a leap to say there are no bad vintages anymore, but certainly in Europe’s classic regions, modern winemaking has made a huge difference. British importer Caspar Bowes explains that many of today’s vintages are better described in terms of style rather than quality, arguing that those vintages that have been rated “great” in the past, such as 2009 and ’10, are merely those that have had the ripest fruit and the most power.

 

The 2011 vintage is a case in point. It may not have the power of the 2010 but what it lacks in density and weight, it certainly makes up for in charm.

 

Flowering was early in the spring of 2011, which meant that although the harvest date was early-in some vineyards the earliest since the end of the 19th century-the grapes enjoyed a long hang time on the vine. This allowed them to mature more slowly, helping ripen the tannins and fruit evenly.

 

The result is red wines that are strongly aromatic, possessing an attractive perfumed fruit and a delicate floral character. This is matched by a lacy elegance, smooth tannins and a bright acidity that gives them power and zing. In short, at this young stage, judging from the dozens of cask samples I sniffed and slurped my way through in London, the wines are a joy to taste.

 

The good news is that both the 2011 reds and whites have restrained alcohol, which gives the wines a unique freshness. Quality is even in both the Côte de Nuits and Côte de Beaune. For reds, the standout villages were Nuits-St.-Georges and Volnay. For whites, Pernand-Vergelesses continues to produce scintillating Chardonnay.

 

The bad news is that, as in 2010, the crop was very small; and it comes before 2012, which, due to uneven weather, was even tinier. Coupled with demand from European and U.S. collectors and increased interest from Asia, this will mean real pressure on prices.

 

As Louis-Michel Liger-Belair, proprietor of Domaine du Comte Liger-Belair, says: “Fill your cellars, as there will not be much wine in 2012.” To which I would add: don’t forget to stock up on 2010, a vintage where quality, particularly among the lesser village wines, is even throughout. Stock up before prices rise even further.

 

 

——

Chateau de Sours hits US through Old Bridge Cellars tie-up (Excerpt)

 

Source: Just-Drinks

By Olly Wehring

24 January 2013

 

Chateau de Sours has lined up a nation-wide roll-out in the US through a partnership with California’s Old Bridge Cellars.

 

The two companies confirmed earlier this week that Old Bridge Cellars will handle the US sales and marketing for the Bordeaux wine producer. California-based Old Bridge assumed the position at the beginning of this month.

 

The move marks Chateau de Sours’ entry into the country, a spokesperson for Old Bridge told just-drinks late yesterday (23 January). “I don’t know if the winery has had limited presence in the US in years past, but I can say that the wines have never been nationally distributed in the US before now,” the spokesperson said.

 

 

——

Fine Bordeaux tender opens

 

Source: Harpers

Written by Elinor Zuke   

24 January 2013

 

Cases of fine Bordeaux wine worth £140,000 have been put on the market by asset disposal group Winterhill Largo to repay the creditors of Wine Traders International.

 

Winterhill Largo is selling a total of 97 cases, including 2003 and 2004 vintage Chateau Lafite and Chateau Latour from 1996 and 2004 by tender. It said it would supply condition reports on request and has asked for forms to be submitted to kevinc@winterhilllargo.com by 2pm on February 1.

 

Wine Traders International was placed in administration in 2010. “Wine trading is an unregulated industry and sadly for investors, the collapse of organisations such as Wine Traders International is becoming something of a regular occurrence,” said Winterhill Largo associate director Kevin Counihan.

 

“The proceeds of this sale, which includes some cases that are highly prized and currently worth around £6,000 each, will be used to repay the investors and other creditors of Wine Traders International

 

“There are some very exclusive wines up for grabs and we’re already experiencing a great deal of interest from wine aficionado, especially in iconic wines such as the Chateau Lafite 2004, which at the moment is changing hands for close to £700 a bottle,” he added.

 

 

——

Luis Felipe Edwards buys 700ha in Colchagua

 

Source: Decanter

by Richard Woodard

Thursday 24 January 2013

 

Chilean winery Luis Felipe Edwards has acquired 700 hectares of vineyard bordering the Nilahue estuary in the coastal Colchagua Valley.

 

The cool-climate vineyard, planted mainly to Sauvignon Blanc, Chardonnay, Cabernet Sauvignon and Cabernet Franc, lies 56km from the Pacific Ocean at Pumanque, 45km from Santa Cruz.

 

Soils are largely granite- and clay loam-based, with Malbec, Syrah, Riesling and Pinot Grigio planted in lower altitude areas.

 

Eugenio Cox, head viticulturist at Luis Felipe Edwards, described Pumanque as ‘unique’, thanks to its combination of complex, poor soils, a strong coastal influence and low summer temperatures, allowing slow grape maturation.

 

This led, he added, to a ‘remarkable’ concentration of fruit, colour, aroma and flavour, as well as excellent natural acidity for a number of grape varieties.

 

Luis Felipe Edwards consulted international experts in a detailed study of the area, taking into account the vineyards’ orientation to the sun, wind direction and strength, and hours of sunshine.

 

‘Our vineyard investment here is remarkable for both its size and its unique location within Chile,’ the company said.

 

‘It demonstrates our commitment to discovering more quality regions so that we can develop an even wider range of styles in our various brands.’

 

Luis Felipe Edwards plans to double the current size of its vineyard holdings, continuing a growth plan that has already seen the planting of 150ha of vineyards at an altitude of 900m elsewhere in the Colchagua Valley, plus 160ha in Leyda Valley and 400ha in the Retiro area of Maule Valley.

 

 

——

Forecast: Business conditions in 2012 were tough, but operators game for 2013

 

Source: NRA

January 24, 2013

 

Operators of full-service restaurants throughout the United States say business conditions were challenging in 2012, but 2013 should herald increased sales, the National Restaurant Association reported.

 

NRA research indicates that full-service sales in 2013 are expected to total $208.1 billion, a 2.9-percent increase over sales of $202.2 billion in 2012.

 

Nevertheless, the NRA’s 2013 Restaurant Industry Forecast, reports less than 1 percent of full-service operators said business conditions for the overall industry in 2012 were “excellent”, while one out of five said they were good and three out of four claimed they were “fair” or “poor”.

 

Regarding their own businesses, those operators were only somewhat more bullish. About 7 percent of respondents of the NRA’s Restaurant Trends Survey said business conditions for their own restaurants last year were “excellent”, while more than a third described their operations as “good”.

 

The research also found that fine-dining restaurateurs were more likely than casual-dining or family-dining operators to offer positive assessments of business conditions at their own restaurants.

 

Maintaining profitability was difficult, they said, largely because of elevated food and energy costs. Among family-dining operators, 82 percent indicated it was more challenging to control costs in 2012 than it was a year earlier. Among casual- and fine-dining operators, three out of four agreed with that assessment.

 

According to the survey, operators said they expect managing costs in 2013 would continue to be a struggle and that profitability would either decline slightly or remain at 2012 levels.

 

While they expect to face many of the same challenges as they did last year, operators said they are more optimistic about sales in 2013. More than nine out of 10 surveyed said they expect their sales to either improve or stay the same compared with a year ago. Fifty-seven percent of fine-dining and 48 percent of casual-dining operators said they anticipate stronger sales, while 43 percent of family-dining operators think sales will improve.

 

 

——

Blow to Punch as chief goes to Greggs

 

Source: FT

By Adam Jones and Christopher Thompson

Jan 24th

 

The chief executive of Punch Taverns has been poached to run the Greggs bakery chain, dealing a blow to the embattled pub owner amid crucial talks to restructure its heavy debt burden.

 

Roger Whiteside will take the helm of Greggs on February 4, it was announced on Thursday.

 

A former head of the food arm of Marks and Spencer, Mr Whiteside was appointed in August 2011 to turn round Punch at the time of its demeger. He had previously been a director of the group’s leased and tenanted pub arm since late 2008.

 

Since then Punch’s 4,600 mostly drink-led tenanted pubs have struggled with declining like-for-like income, and £2.4bn of securitised net debt which the company wants to restructure.

 

Stephen Billingham, Punch’s chairman, said he was confident equity holders would not be wiped out in the process.

 

“Without a doubt there will be a pub business at the end of this [restructuring]…our view is that there is still value in the equity,” he said.

 

“This business is not rudderless … Roger has done a very good job but once someone sees another opportunit,y a quick change is the best thing for everybody.”

 

Last October Punch said it was squaring up for talks with bondholders about a debt restructuring. The company said it was already in discussions with shareholders about two securitised debt vehicles that require regular cash injections from the parent company to keep them from breaching banking covenants. Mr Whiteside said funding for the debt vehicles was “heading for the buffers”.

 

Instead of appointing a replacement chief executive immediately, Punch has made Mr Billingham executive chairman. It also promoted Neil Griffiths, previously property and turnround director, to the new role of chief operating officer.

 

The group said this arrangement would “ensure continuity in the leadership of Punch, particularly during the ongoing capital structure discussions”.

 

Trading remained in line with board expectations, it added. In the lastest trading statement, for the 16 weeks to December 8, Punch reported that net income in its 3,000-strong estate of “core” pubs had fallen by 5 per cent on a like-for-like basis. The company is looking to sell about 1,600 pubs.

 

Mr Billingham said Mr Whiteside’s departure “won’t affect the negotiations at all”, saying he and Steve Dando, finance director, had been taking the lead in the talks.

 

The group wanted to get the restructuring talks out of the way before recruiting a new chief executive, he said, adding that this was likely to take months rather than weeks.

 

At Greggs, where he has been a non-executive director for almost five years, Mr Whiteside will succeed Ken McMeikan, who is leaving the group to join Brakes, a food supplier.

 

Shares in Punch closed down 3.3 per cent at 10.9p. Greggs shares rose just over 1 per cent to 480p.

 

 

——

Colorado: Bill To Set Limit For Driving While Stoned Has A Good Chance

 

Source: CBS 4

January 22, 2013

 

A plan is in the works to set a limit for people driving while under the influence of marijuana, and this time lawmakers say they’ll get it done.

 

There’s a lot of pressure on lawmakers after legalizing pot. As the number of users grows, there is growing concern the number of people driving under the influence will as well. In 2011, the most recent data available, 13 percent of deadly crashes in Colorado involved pot.

 

This is the third year lawmakers have tried to pass the bill, and they watered it down this time to make sure it gets through.

 

When it comes to alcohol, the law is clear. At .08 a person is too drunk to drive. But when it comes to marijuana, proving a person is too high to drive may be tougher.

 

“So we’re saying you’re presumed to be under influence of marijuana at five nanograms,” said Rep. Mark Waller, R-Colorado Springs.

 

Under a bill by Waller the DUI limit will be five nanograms of THC, the psychoactive ingredient in pot. But even if a driver reaches that limit, he or she could get off.

 

“You can put on evidence that says you’re not under the influence when over the five nanograms,” Waller said.

 

Waller, a former prosecutor, admits the burden of proof will be higher for police and prosecutors. They can’t just point to the test as proof of impairment, but will need evidence like dangerous driving or slurred speech.

 

The bill is meant to address the concerns of medical marijuana users – people who are chronically above five nanograms, but function as sober.

 

“I think that’s what’s going to help it pass this year,” Waller said.

 

Democrats and Republicans, defense attorneys and prosecutors are on board. While marijuana advocates insist five nanograms is an arbitrary limit, Waller says it could be lower.

 

“It is time to act. We need to do something to protect the citizens of Colorado, and that’s exactly what this driving under influence of marijuana does,” Waller said.

 

Critics say it will also lead to a lot of drivers who simply smell like pot being hauled in and given blood tests unnecessarily. Unlike alcohol, there’s no breath test for THC. Waller says police will still need probable cause, and like DUI laws involving alcohol, this one too will evolve over time.

 

 

——

Texas: Irving relaxes limits on restaurants’ alcohol sales

 

Source: Dallas Morning News

BY AVI SELK

24 January 2013

 

After three decades as one of the driest cities in North Texas, Irving relaxed its alcohol laws Thursday.

 

The City Council voted to raise the amount of alcohol restaurants citywide can sell from 40 percent of annual sales to 50 percent. And it significantly raised the alcohol limit to 70 percent for restaurants in the Urban Center of Las Colinas – opening the possibility for other areas to follow.

 

Council members called the new law a compromise to appease south Irving residents who since last year have opposed changing the 31-year-old alcohol limit. They have expressed concern that a higher alcohol sales limit would flood the city with bars, prostitutes, drunken drivers and murders.

 

On the city’s north side, business owners had said the city’s ordinance was crippling Irving’s economy.

 

After the council failed to make a decision following hours of public debate between residents and business owners at a meeting two weeks ago, the developer for Water Street – a planned retail development that officials hope will revitalize Las Colinas – warned the council that the project could collapse if the city didn’t relax the ordinance by Thursday.

 

Only two council members, Gerald Farris and Joe Putnam, opposed the new measure. Putnam warned his colleagues before the vote that establishing different alcohol restrictions in different areas could be illegal.

 

“It doesn’t help [Water Street developer] Gables at all if this council adopts an ordinance that ends up in the courthouse,” he said.

 

But City Attorney Charles Anderson assured council members that the new ordinance could withstand a lawsuit. And many council members seemed convinced that different alcohol limits were the only workable solution for a divided city.

 

“We’re never going to be able to please everybody” council member Dennis Webb said before the vote.

 

Since officials began considering a change to the alcohol ordinance late last year, competing proposals have multiplied through City Hall – everything from leaving the old cap untouched to drastically raising the alcohol sales limit across the city.

 

When council members sat down Thursday afternoon, several were unclear about which plan they would vote on six hours later.

 

“If we’re confused about what plan we have before us, think about our poor citizens,” Putnam said.

 

Indeed, many residents said they were confused as they rose one by one to speak before the vote. Of those who understood the proposal, some worried about the implications of establishing different limits for various parts of the city.

 

“I am in favor of 30-70 [letting alcohol be 70 percent of sales],” said south Irving resident Janet Wall. “But I am not in favor of splitting the town.”

 

More debates are nearly certain. Mayor Beth Van Duyne said a subcommittee will spend the next two months studying whether areas of the city besides the Las Colinas Urban Center should get an alcohol sales limit above 50 percent.

 

“It’s a good first step,” said Chris Wallace, president of the Greater Irving-Las Colinas Chamber of Commerce, which wants a 70 percent limit across the city.

 

 

——

United Kingdom: Beer Sales Fall For Eighth Year In Row Amid Calls For Scrapping Of Beer Duty Escalator

 

Source: Huff Post

25/01/2013

 

Beer sales have fallen for the eighth year in a row, with 381 million fewer pints being drunk in 2012, according to a new study.

 

The British Beer and Pub Association (BBPA) said the figures showed how the government’s “damaging” tax policy was hitting the pub trade.

The association has joined campaign groups in calling for a review of the beer duty escalator, introduced in 2008, which sees tax on beer increase by 2% above inflation each year.

 

More than 100,000 people have signed a petition in protest at the extra tax, urging the chancellor to announce in the March Budget that it will be scrapped.

 

Pub beer sales slumped by 4.8% in the final quarter of 2012 compared with a year earlier, with total beer sales down by 4.7% over the year.

 

Around 138m fewer pints of beer were drunk in the final quarter of 2012. Sales of beer in supermarkets and shops fell by 7.5% in the final three months of 2012 compared to the previous year, while sales in pubs, bars and restaurants were down by 4.8%.

 

Beer sales have fallen every year since 2005.

 

Brigid Simmonds, chief executive of the BBPA, said: “These figures show that the government needs to stop its full-on tax assault on our vital beer and pub industry.

 

“We’ve had tax hikes of 42% since March 2008, which is hugely damaging and completely unacceptable for such an important manufacturing sector.

 

“Instead, we could be protecting and creating jobs at a time when the country most needs it.”

 

Beer sales support around a million jobs and generate almost £8 billion in tax revenues, said the association.

 

Analysts have predicted that another rise in beer tax in the next Budget could lead to thousands of job losses in the industry.

 

A Treasury spokesman said: “Getting the deficit under control has meant tough choices. The government recognises the value of the beer and pub industry, and the important contribution it makes to local communities and the wider economy.

 

“Although we have not made any changes to the alcohol duty plans we inherited from the previous government, pubs are benefiting from action we’ve taken to support businesses, including a cut in employers’ national insurance contributions, the business rates holiday and reductions in corporation tax.”

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30 of the Best Beer Can Designs

January 24, 2013

http://www.pastemagazine.com/articles/2013/01/30-of-the-best-beer-can-designs.html

Liquor Industry News 1-24-13

January 24, 2013
www.franklinliquors.com

Franklin Liquors

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Australia: Local bottle shops linked to mental health

 

Source: WA Today

January 24, 2013

 

The number of neighbourhood liquor outlets has been linked to harmful drinking behaviour.

 

While being within walking distance of your local corner bottle shop may be convenient, a Perth university has found a link between the number of neighbourhood liquor outlets and harmful drinking behaviour, in first-of-its-kind research.

 

People with more liquor shops close by were found to have higher levels of harmful drinking and worse mental health than those who live further away.

 

In a study of nearly 7000 adults, the University of Western Australia used geographical mapping to connect people to the location of all licensed alcohol outlets in Perth – with the data producing some concerning results.

 

Harmful behaviour and higher levels of alcohol consumption was more common if people could buy alcohol close to their home, said Associate Professor Lisa Wood, deputy director of UWA’s Centre for the Built Environment and Health.

 

“We found that the average number of standard drinks per day and the rate of harmful alcohol consumption increased for each additional alcohol outlet in a neighbourhood.”

 

Research also showed the likelihood of being treated in hospital for anxiety, stress or depression increased as the number of alcohol outlets within walking distance (1600m) of the home increased.

 

“Our findings underscore the importance of limiting both the number of liquor store licences and the geographic density of outlets as a way to improve mental health and reduce other alcohol-related harm,” Associate Professor Wood said.

 

The study reinforced the WA Health Department’s five-year plan for a healthier WA.

 

“One of the suggestions in the five-year plan is limiting the density of alcohol outlets,” she said.

 

“While the association between alcohol outlet density and injury, crime and violence are well documented, this is one of the first studies internationally to specifically look at how this might impact on mental health disorders.”

 

 

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Navy: Random Alcohol Tests for Sailors in US

 

Source: AP

By BROCK VERGAKIS

January 24, 2013

 

The Navy said Wednesday it will conduct random blood-alcohol tests on its sailors in the United States starting next month, a sign of how concerned the service’s leaders have become about the effects alcohol abuse is having on the force.

 

The tests are part of Navy Secretary Ray Mabus’ 21st Century Sailor and Marine Initiative, an expansive program intended to improve the well-being of sailors and Marines after more than a decade at war.

 

The Marines announced it would carry out its own random alcohol tests last month. While alcohol has long played a part in the Navy’s culture, Navy officials stressed they aren’t trying to stop sailors from drinking altogether, but are concerned about their health and safety.

 

The Navy said it will use the blood-alcohol tests to determine whether someone is fit for duty or may need counseling. Any sailor whose blood-alcohol level is .04 or higher when reporting for duty won’t be allowed to work. In all 50 states and the District of Columbia, a driver with a 0.08 percent blood-alcohol is considered drunk.

 

A positive test result for a sailor reporting to work – a reading of 0.02 percent or higher – won’t be used to punish sailors. But the Navy said it could be used to refer him or her to a drug and alcohol program adviser.

 

Adm. Mark Ferguson, vice chief of naval operations, said the random tests could help spot sailors who need support before “an incident occurs due to the irresponsible use of alcohol.” He also wrote in a message outlining the new details of the policy to the fleet that the tests will serve as a safety measure and raise awareness among commanding officers of a crew’s “culture of alcohol use.”

 

Alcohol is of particular concern because of the role it frequently plays in other destructive behaviors such as suicide and sexual assault. Alcohol also has played a factor in the dismissals of a number of commanding officers in recent years.

 

“Deterring irresponsible use of alcohol is essential to the readiness of our fleet and ensuring the health and safety of our service members and units,” Adm. Bill Gortney, commander of U.S. Fleet Forces, said in a statement.

 

In a pilot program with 13 commands this past summer, nearly 7,500 sailors were subjected to random alcohol tests. Of those, 87 tested positive for alcohol.

 

“The test verified that the majority of our service members, who choose to drink alcohol, do so responsibly. It also verified that our commanding officers need a flexible program that serves to increase the Navy’s awareness about the impacts of alcohol,” Gortney said in a statement.

 

By May 24, the Navy expects to have hand-held alcohol detection devices available for nearly 2,000 commands.

 

The 21st Century Sailor and Marine Initiative was unveiled by Mabus in a rare ‘all-hands’ call aboard a ship in Norfolk last March that was broadcast to sailors around the world. Among other things, it also focuses on preventing suicides, sexual assaults and increasing physical fitness. The Navy has also begun conducting random urine tests for synthetic drug use under the initiative.

 

Unlike the alcohol tests, those who test positive for synthetic drug use are subject to punishment.

 

 

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Ohio high court takes up lawsuit affecting liquor bonds

 

Source: Reuters

Jan 23 2013

 

The Ohio Supreme Court on Wednesday resuscitated a lawsuit challenging the constitutionality of a state law behind the scheduled sale of about $1.5 billion of revenue bonds this week.

 

The high court agreed to take up the question of whether a liberal advocacy group has standing to sue over the 2011 law that spun Ohio’s job and economic development programs off to a private entity called JobsOhio, according to Brian Rothenberg, executive director of ProgressOhio, which filed the lawsuit.

 

Under the law, Ohio’s liquor enterprise and its revenue were transferred to JobsOhio, which in turn was authorized to sell long-term bonds backed by future liquor revenue.

 

Rothenberg said the bonds should not be sold until the constitutional question of Ohio Governor John Kasich’s plan funneling public money to a private entity to oversee job creation and economic development efforts is resolved.

 

“It’s reckless and irresponsible for the Kasich Administration and Wall Street to even entertain selling the bonds while the constitutional question is out there,” he said.

 

JobsOhio Beverage System was slated to sell on Wednesday about $1.1 billion of taxable senior lien liquor profits revenue bonds through J.P. Morgan Securities and another $423 million of tax-exempt bonds through Citi.

 

The status of the bond sale was not clear, although JobsOhio issued a supplement on Wednesday to the deal’s preliminary official statement that noted the court’s decision to take up the standing issue without adding new details. An attorney representing JobsOhio could not be immediately reached for comment.

 

Laura Jones, a JobsOhio spokeswoman, said in a statement that the bond sale involved a number of steps and that JobsOhio was continuing to work on those steps.

 

“While we don’t comment on pending litigation I can tell you that we are confident in our legislated mission to help businesses grow and create jobs for Ohioans,” the statement said.

 

Proceeds from the bond sale were earmarked to pay off outstanding state debt backed by liquor revenue, provide $500 million for Ohio’s general fund and raise about $225 million for JobsOhio’s operations, according to Moody’s Investors Service, which rated the bonds A2 with a developing outlook due to the litigation.

 

Connie Wehrkamp, a spokeswoman for Kasich, said the governor’s office remained confident the supreme court will uphold lower court rulings that found ProgressOhio and others that filed the lawsuit have no standing to sue.

 

“Additionally, it continues to be beyond our understanding why anyone would fight against job creation when it’s so important to Ohio and our continued economic recovery,” she added in a statement.

 

 

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Barclays Capital Reaffirms Overweight Rating on Pernod Ricard SA (RI)

 

Source: JAGS

by James Brewer

Jan 23rd, 2013

 

Barclays Capital reaffirmed their overweight rating on shares of Pernod Ricard SA (EPA: RI) in a research note released on Wednesday morning. They currently have a $140.00 (?105) price target on the stock.

 

Other equities research analysts have also recently issued reports about the stock. Analysts at Nomura reiterated a neutral rating on shares of Pernod Ricard SA in a research note to investors on Tuesday. They now have a $121.33 price target on the stock. Separately, analysts at CA Cheuvreux reiterated an underperform rating on shares of Pernod Ricard SA in a research note to investors on Monday. They now have a $121.33 price target on the stock. Finally, analysts at Sanford C. Bernstein reiterated a market perform rating on shares of Pernod Ricard SA in a research note to investors on Thursday, January 10th. They now have a $135.06 price target on the stock.

 

Shares of Pernod Ricard SA traded up 0.24% during mid-day trading on Wednesday, hitting ?91.19. Pernod Ricard SA has a one year low of ?72.74 and a one year high of ?92.30. The stock’s 50-day moving average is currently ?87.65. The company has a market cap of ?24.030 billion and a P/E ratio of 21.06.

 

 

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New Belgium brewery’s Kim Jordan talks about beer, business, Quakers

 

Source: DenverPost.com

Jan 24th

 

The beermaking began a few years earlier, in their Fort Collins basement, but the empire formally started in 1991, when Jeff Lebesch and Kim Jordan, then married, started selling the stuff.

 

They called the company New Belgium. It is now the seventh-largest brewery in the U.S., according to the Brewers Association, and poised to get bigger: New Belgium is building a brewery in Asheville, N.C., a project that will get its Fat Tires, Snow Days and Biere de Gardes distributed along the East Coast.

 

Jordan, 54, the daughter of liberal activists who grew up in California and Washington, D.C., started her career in social work before turning to suds. She and Lebesch divorced, and she is New Belgium’s chief executive.

 

Her unique route toward corporate management – helping poor people and messing around with fermentation in a basement, instead of an MBA and decades of plotting and angling – informs the whole New Belgium culture. Year after year, the sprawling brewery is voted the best work environment in the United States. It donates a lot of money to charities while pursuing an aggressive green approach to beermaking. Just this month, the company announced that it now is 100 percent employee-owned.

 

Normally, we ask People and Places candidates to select a favorite spot other than their workplaces, but New Belgium isn’t exactly a routine kind of office. The “lobby” is a tap-filled tasting room. Employees can take a slide to get from the second to first floors. Foosball? Of course (and Jordan is very good). It’s the proverbial second home for Jordan, whose Spartan, small office suggests a CEO who spends more time among colleagues than cooped up in some lavish approximation of the Batcave.

 

http://www.denverpost.com/lifestyles/ci_22436029/new-belgium-brewerys-kim-jordan-talks-about-beer

 

 

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Driving drunk on a Segway is legal, Minnesota court rules

 

Source: TwinCities.com

By Emily Gurnon

01/22/2013

 

Hopping on your Segway after you’ve had a few drinks is not driving drunk under Minnesota law — because a Segway is not a motor vehicle, the Minnesota Court of Appeals has ruled.

 

A Hennepin County man was stopped by police Feb. 4 and charged with driving while impaired after the officer saw his Segway drifting twice across the center line in the road, according to the court ruling made public Tuesday, Jan. 22.

 

His blood alcohol level was 0.19, more than twice the legal limit of 0.08, the ruling said.

 

Mark A. Greenman, 48, of Hamel said Tuesday that he was pleased with the judges’ decision tossing the charges against him.

 

“I think the court got it right,” he said. “I think that if people want to take the Segway to the bar, they can do that now. And I think they always should have been able to.”

 

Greenman, an employment attorney practicing in Minneapolis, said he was playing in a pool tournament at Inn Kahoots bar in Hamel, less than a mile from his home.

 

He was on his way home, on his Segway, when the Medina police officer stopped him.

 

A Hennepin County district judge threw out the charges.

 

It was not the first time Greenman had been pulled over while on his Segway. The district court also dismissed DWI charges in a 2010 case against him.

 

He was intoxicated again while driving the device March 16, according to court records. Prosecutors charged him after that incident with first-degree driving while impaired. That case is scheduled for a hearing Feb. 20. Greenman waived his speedy trial rights pending the Court of Appeals decision. His attorney in that case did not immediately return a call seeking comment.

 

In making its Tuesday ruling, the Court of Appeals relied on a previous decision that involved James Anthony Brown, an intoxicated disabled man driving his motorized scooter on a Grand Rapids sidewalk in July 2009.

 

The Court of Appeals ruled in that case that the scooter was not a motor vehicle for the purposes of the law. The law defines “motor vehicle” in part as “every vehicle which is self-propelled,” excluding “an electric personal assistive mobility device.”

 

“Had the Legislature intended to prohibit drivers from operating Segways while under the influence of alcohol, the Legislature could have included a specific provision proscribing that conduct, as it has done in so many other instances,” wrote Judge Margaret Chutich for herself and Judge Natalie Hudson.

 

The third judge on the three-judge panel, Judge Roger Klaphake, dissented. He wrote that “vehicle” as defined in traffic regulations includes “every device in, upon or by which any person or property is or may be transported or drawn upon a highway …” and is self-propelled. The Segway meets that definition, he wrote.

 

 

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Treasury in takeover bid speculation

 

Source: Decanter

by Richard Woodard

Wednesday 23 January 2013

 

Speculation is growing that Penfold’s and Wolf Blass owner Treasury Wine Estates could be a takeover target, with a rumoured price tag as high as A$4bn-plus.

 

According to reports in the Australian press, analysts are increasingly convinced that Treasury Wine Estates will be the subject of a takeover bid, as the Australian wine industry returns to balance after years of over-supply issues.

 

Despite declines in recent months, the company’s share price has climbed by well over one-third since it was spun off by former parent company Foster’s in May 2011.

 

Analysts believe China is the most likely source of a serious bid for Treasury, as reports come in of Chinese interest in wineries including Chateau Tanunda and Yering Station owner Rathbone Wine Group.

 

Sales of Australian wine in China have been booming in recent months, posting strong double-digit increases in the year to the end of September.

 

Treasury, the world’s second biggest wine business and formerly part of Foster’s, was the subject of much takeover talk before it was demerged from the rest of the Foster’s beer business in May 2011.

 

Shanghai-based Bright Food was widely reported to have considered a takeover bid in the summer of 2010, and private equity firm Cerberus Capital Management tabled an unsuccessful bid of A$2.5bn later in the year.

 

There has been no comment from either Treasury or Bright Food.

 

 

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Bacchus Capital Invests in Wine Import and Distribution Company

 

Maritime Adds Nine North Brands to Its Portfolio

 

Source: WineBusiness.com

by Cyril Penn

Jan 23rd

 

Private equity firm Bacchus Capital Management has announced making an investment in Maritime Wine Trading Collective, the San Francisco-based wine import, production, and distribution firm. Concurrent with the investment, Maritime is adding Nine North Brands, a producer of Napa and North Coast red wines, to its portfolio.

 

The announcement marks Bacchus’ seventh deal in the wine industry – its first with an importer and marketer. Terms were not disclosed. Bacchus typically makes investments in a range of $2 million to $7 million.

 

“We were pleased to put our capital to work immediately, with Maritime’s addition of the Nine North brands,” Sam Bronfman, co-founder and managing partner of Bacchus Capital said in making the announcement. Bronfman also said that adding a company with sales and marketing capabilities to its portfolio may provide value for Bacchus’ winery partners.

 

Maritime Wine Trading Collective’s portfolio includes Graham Beck of South Africa and Jules Taylor of New Zealand, in addition to wines from Portugal, Spain, Turkey, Sicily, and Canada. The company was founded by Chris Nickolopoulos and Elijah Pfister in 2009 and expects to market 130,000 to 140,000 cases of wine this year with the addition of Nine North.

 

In an interview, Nickolopoulos described Maritime, as “on the big side of small, but much smaller than the big players.”

 

Nine North, founded in Napa Valley by James Harder and Jim Regusci, was included on Wine Business Monthly’s Hot Small Brands list for 2006. Volume has since grown to reach 55,000 cases of wine per year, though the company has little marketing or sales staff.

 

Founded five years ago, Bacchus’ portfolio companies are Sbragia Family Vineyards, Andretti Winery, Pietra Santa, Qupé, and Wine by Joe. Bacchus previously provided financing for Cameron Hughes Wine and emphasizes a “flexible approach” to capital, from debt to equity financing.

 

“We’re always on the lookout for good businesses in the wine space run by people who are good at what they do,” Bacchus co-founder and managing partner Peter Kaufman said.

 

Nickolopoulos said the capital provided by Bacchus will allow the company to continue to grow, primarily by adding people. “One of the great things about the industry that we all enjoy that it’s a small, sometimes incestuous industry that’s relationship based,” he said. “Brands get built by people.”

 

Bronfman, a former chief executive for Seagram Chateau and Estate Wines, said that while Seagram marketed well-known, international brands, Maritime has built brands and developed its own brands. “They come at it from a wonderful perspective that I respect tremendously: the entrepreneurial side. They’ve done a good job of establishing a very successful distribution platform. I think they’re going to grow beyond the large side of small.”

 

 

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Price hiked for ‘Two-Buck Chuck’

 

Source: THE PRESS DEMOCRAT

By CATHY BUSSEWITZ

January 22, 2013

 

It’s the end of an era for “Two-Buck Chuck,” the wine that earned a nickname and notoriety for its surprisingly low price.

 

For the past decade, shoppers at Trader Joe’s stores in California have paid just $1.99 for a bottle of Charles Shaw shiraz or cabernet sauvignon. But the new price, $2.49, takes a little longer to roll off the tongue.

 

So what will the shoppers, who came up with the moniker “Two-Buck Chuck,” call it now?

 

“Inflation Chuck,” said Matt Tucker, 28, a cook from Santa Rosa.

 

“Upchuck,” said Lisa Garrett, 50, of Stewarts Point, saying her suggestion reflects the price increase, not the wine’s drinkability.

 

The Charles Shaw brand was able to maintain such low prices for so long in part because its parent company, Bronco Wine Co., owns 45,000 acres of vineyard land, said Harvey Posert, spokesman for Bronco. That helps the company ride out wild fluctuations in grape prices like those the industry has seen in recent years.

 

“If there’s one grape too many, the price dips,” Posert said. “If there’s one grape too few, the price zips up. In the sense of being the largest grape grower, Bronco can ride many of these ups and downs.

 

“But there were bad crops in 2010 and 2011, and that certainly impacted the industry,” he said.

 

Even so, the retail price is set by Trader Joe’s, Posert said. A display case in the store’s wine aisle labels Charles Shaw as Trader Joe’s best-selling wine. The brand sold about 5 million cases last year, Posert said.

 

“In general, our retail prices change only when our costs change,” Alison Mochizuki, director of public relations for Trader Joe’s, said in an email. “We’ve held a $1.99 retail price for 11 years. Quite a bit has happened during those years and the move to $2.49 allows us to offer the same quality that has made the wine famous the world over.”

 

Most shoppers outside a Trader Joe’s store in Santa Rosa said the wine is still a good value at $2.49.

 

“My friends all like it,” said Virginia Schrock, 86, of Santa Rosa. “Nobody sticks up their nose if you serve ‘Two-Buck Chuck.’ ”

 

On the other hand, many shoppers in Wine Country have steered clear of a brand that’s still too cheap for their tastes.

 

“You can’t really take it to a party where people know wine,” said Barbara Levinson, 63, of Santa Rosa. “I have a lot of friends in the wine business, so they’re kind of particular. Snobby.”

 

Most customers have taken the price increase in stride, a clerk said, except for one unhappy buyer who pointed out that Whole Foods still offers its “Three Wishes Wines” brand for $1.99 a bottle.

 

One shopper thought the higher-priced wine could simply be called “Chuck,” while others said it’s still close enough to $2 to keep its nickname.

 

Or the wine brand could cash in on the recent San Francisco 49ers victory, with “49 Just in Time” or “Two Champions,” Garrett said.

 

Even though the wine long has cost more in other states — it’s known as “Three-Buck Chuck” in some East Coast markets where it sells for $2.99 a bottle — for some California customers, paying more than $2 for Charles Shaw wine will never feel right.

 

“It’s blasphemy,” Tucker said, with a trace of irony. “People should maybe protest or boycott.”

 

 

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Bordeaux to bounce back in 2013

 

Source: the drinks business

by Rupert Millar

23rd January, 2013

 

As prices stabilise and Robert Parker prepares to re-evaluate 2010, Jon Barr, director of EF Wines, has declared “Bordeaux appears to be back”.

 

Bordeaux 2011Speaking to the drinks business, Barr said that Lafite sales were strong again in Hong Kong, although he added that, “this may just be for the Chinese new year.”

 

Nonetheless, he continued: “It’s stabilised and people are getting interested again. Prices haven’t gone down, Liv-ex is showing some rises, I think it will be a good year”.

 

His comments come after a year when Bordeaux was subject to severe price drops as the market took a dip and as buyers branched out into other areas, notably Burgundy, Champagne and the Super Tuscans.

 

Nonetheless, while the first growth’s 2005s and other big vintages took a hit, other Bordeaux châteaux especially on the Right Bank and some more neglected vintages such as 1996 did see some good trade.

 

Barr added that with Parker having re-tasted the 2010s, interest may rise in that vintage when the scores are released, something that happened to the 2009s early last year.

 

Looking ahead to this year’s en primeurs, Barr said that they would, as always, be dominated by the issue of price.

 

The reports so far, which db has covered extensively, point to a small but good vintage.

 

This may prove as much of a stumbling block as it did for 2011, which failed to excite the interest of Parker, who said it would “bomb”, and the majority of the US press and was badly bungled by the Bordelais upon release.

 

The danger, as Barr noted, is that the small volumes will encourage producers to keep prices up, but, he warned, “it can’t work if it’s like 2011. I see a slow campaign again.”

 

 

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Maison Sichel reports 21% uplift in value

 

Source: Harpers

by Carol Emmas

23 January 2013

 

Bordeaux-based producer and négociant Maison Sichel has reported a 21% value growth for 2012, making it the company’s second best year since it was established in 1883.

 

There has been a balance of growth across all markets with no one region outperforming the other. Europe is still the strongest market, and the US and Canada performed well alongside Asia and China.

 

Wines which performed particularly well in 2012 were Château Trillol, from the company’s property in the Languedoc-Roussillon, Sichel’s Bordeaux Supérieur estate, Château Argadens, and its flagship brand, Sirius, whose sales increased by a sizeable 11.2%, with its best markets being Japan and Canada.

 

Export director Charles Sichel said: “Given the state of the global economy, our results for 2012 were very positive. We have been working to maintain our strengths in all markets around the world, not just responding to growth opportunities in countries like China, which still remains a complex market to do business in, despite demand.”

 

Maison Sichel exports more that 75% of its wines, with the UK accounting for approximately 30%.

 

 

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New way to identify ‘smoked’ grapes and wines

 

Source: EurekAlert

Jan 23rd

 

With climate change sparking concern about an increased risk of wildfires, scientists are reporting development of a way to detect grapes exposed to smoke from those fires, which otherwise could be vented into bad-tasting wine. Their report on the method for detecting smoke taint in both grapes and wine appears in ACS’ Journal of Agricultural and Food Chemistry.

 

Yoji Hayasaka and colleagues point out that Australia and other areas of the world are experiencing an increase in bush and wildfires, which may continue and intensify with global climate change. Smoke from those fires can travel long distances and poses a special threat for wine grapes. Grapes exposed to smoke yield wines with unpalatable aromas and tastes, sometimes described as resembling “smoked meat,” “disinfectant” or a “dirty ashtray.”

 

In an effort to manage or avoid production of smoke-tainted wines, they developed a test for the substances formed in grapes after exposure to smoke. They describe its development and laboratory tests demonstrating that the method can determine whether grapes have been smoke-tainted before they were crushed and pressed into wine. The test also can identify smoked wines.

 

The authors acknowledge funding from Australia’s grape growers and winemakers through their investment body, the Grape and Wine Research Development Corporation, with matching funds from the Australian government.

 

The American Chemical Society is a nonprofit organization chartered by the U.S. Congress. With more than 163,000 members, ACS is the world’s largest scientific society and a global leader in providing access to chemistry-related research through its multiple databases, peer-reviewed journals and scientific conferences. Its main offices are in Washington, D.C., and Columbus, Ohio.

 

 

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C-store total poised to surpass 150,000 units

 

Source: RT

January 23, 2013

 

The latest data from Nielsen shows the number of U.S. convenience stores continues to expand and last year set a new record with 149,220 units.

 

That figures is up 1,094 units from the prior year so the increase amounts to only a 0.7% gain, according to the 2013 National Association of Convenience Stores/Nielsen Convenience Industry Store Count. Even so, the growth is noteworthy at a time when overall expansion of selling space in the broader retailer industry has remained stagnant even though the recession officially ended in 2009.

 

“Our continued growth shows that our core offer of convenience resonates with customers, whether a fill up, quick snack or drink or for fill-in groceries or take-out meals for time-starved consumers,” said Dave Carpenter, chairman of the NACS trade group and president and CEO of Denver-based J.D. Carpenter Companies Inc.

 

The convenience retailing industry continues to be dominated by single-store operators, which now account for nearly 63% of all convenience stores, but the fastest growing segment of the industry is among operators with more than 500 stores. The store count among companies with more than 500 units grew by 8.9% to 21,738 stores, compared to the less than 1% growth that saw units operated by independents increase to 93,819 stores.

 

Convenience stores now account for 34.8% of all retail outlets in the United States, according to Nielsen, and the total count of slightly more than 149,000 units is double what it was in 1982.

 

 

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Chili’s bets on pizza to drive sales, margins

 

Source: NRN

Ron Ruggless

Jan. 23, 2013

 

A systemwide rollout of the new pizza platform at Chili’s Grill & Bar, along with other menu enhancements, are expected to bolster the casual-dining chain’s bottom line, executives at parent company Brinker International Inc. said this week.

 

Chili’s is rolling out the pizza, which uses new capabilities gained during the chain’s kitchen retrofit program, to all company-owned locations this quarter, said Wyman Roberts, chief executive and president of Dallas-based Brinker.

 

“We’ll bring it in to our franchise system once their new kitchens have been installed, more toward the end of the quarter,” Roberts said. “Then we will go on the air with these new products during the fourth quarter.”

 

In addition to 1,549 Chili’s restaurants, Brinker also owns the 44-unit Maggiano’s Little Italy concept. The discussion of the new pizza program, a major menu addition to Chili’s, best known for Southwestern fare and Big Mouth Burgers, comes as Brinker reported a second-quarter profit increase and an uptick in same-store sales.

 

Securities analysts looked favorably on the pizza’s food costs. Stephen Anderson, senior restaurant analyst with Miller Tabak + Co LLC, said in a note that Brinker’s food cost outlook had moderated, heading toward the lower end of the management’s guidance of 2 percent to 3 percent in the fiscal year.

 

“We expect the rollout of pizza throughout the Chili’s system to be slightly beneficial to food cost margins (relative to Chili’s more traditional protein-based entrées),” Anderson wrote, “and we think strong customer acceptance of this new permanent menu item may push [Brinker’s] food cost guidance below the 2 percent guidance.”

 

Anderson estimates each 25 basis-point reduction in food costs, or each 0.25-percent reduction – “which is what we think the pizza introduction could provide,” the note said – translates into an incremental earnings per share gain of between one and two cents, when all other factors are equal.

 

Anderson added that he expected Brinker to maintain “tight scrutiny over food costs through both menu engineering and skilled contracting.”

 

Brinker’s newly-minted chief executive Roberts added that the pizza is positioned as a single-diner meal, and that Chili’s hasn’t seen it being shared extensively. “We have kind of designed it around an individual portion,” he said. “It’s a good portion, so maybe you can take some home, and we’re not seeing a lot of sharing, and obviously the cost of sale on that item is very favorable.”

 

Besides pizza, Chili’s in December introduced some other new menu items, Roberts said.

 

“We freshened our ‘Lighter Choices’ category with new mango-chile chicken and mango-chile tilapia, and standard appetizer and dessert categories with the introduction of freshly baked chocolate chip cookies and soft pretzel appetizers, items that work well with our new kitchen equipment,” Roberts said.

 

The new menu items are partially the product of Chili’s new ovens and other equipment that were part of the retrofit kitchens. Guy Constant, Brinker’s chief financial officer, said Chili’s is on track to complete the retrofits at all domestic franchise-owned restaurants by the end of March.

 

“We have completed 255 Chili’s reimages to date and by the end of fiscal 2013 we anticipate being complete on 370 company-owned restaurant reimages,” he explained. “We now have fully completed the reimage in 11 markets with an additional four markets in progress.”

 

Brinker is also planning to again start adding restaurants to its domestic count after a four-year hiatus from growth, Roberts said. Openings will be “in the neighborhood of 12 Chili’s in the next year and two to three Maggiano’s,” he noted.

 

“We haven’t really built restaurants in the U.S. in quite a while, so there are some opportunities that have made themselves available over the last few years that we’ll take advantage of,” he said.

 

On Tuesday, Brinker reported net income of $37.2 million, or 50 cents per share, for the second quarter ended Dec. 26. In the same quarter a year earlier, Brinker earned $35.7 million, or 44 cents per share. Revenue rose 1.1 percent to $689.8 million.

 

 

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Fuller,Smith &Turner 42-Weeks Like-for-Like Sales +2.6%, Traded Well

 

Source: Dow Jones

Jna 24th

 

Brewer, Hotels and pub operator Fuller, Smith & Turner PLC (FSTA.LN), said Thursday that the company traded well, in the nine weeks to Jan. 19, with like-for-like sales in Managed Pubs and Hotels up 4.5%, bringing the like-for-like sales growth for the 42 weeks to 2.6% from 2.1% after 33 weeks.

 

MAIN FACTS:

 

-Like-for-like profits in the Tenanted Inns division grew 1% for the 42 weeks, having been level after 33 weeks.

 

-Total beer volumes in the Fuller’s Beer Company remained level, as they were after 33 weeks.

 

-The Company’s balance sheet and cash generation remain strong. Net debt still reduced to GBP136.1 million on Dec. 29, 2012, from GBP137.3 million at the half year.

 

-Net debt to EBITDA–proforma for the impact of acquisitions– also declined to 2.6 times, from 2.7 times at the half year.

 

-Shares closed Wednesday at 761.0 pence, valuing the company at GBP244.9 million.

 

 

——

Texas: Not everyone embracing Sunday liquor store bill

 

Source: Seguin Gazette

Thursday, January 24, 2013

 

A bill has been introduced in the Texas Legislature to allow liquor stores to stay open on Sunday, but store managers and owners are not supporting it.

 

State Rep. Senfronia Thompson, D-Houston, filed House Bill 421 on Jan. 9. If passed by both houses of the Legislature and signed into law by the governor, the bill will allow liquor stores in Texas to be open from noon to 10 p.m. on Sunday.

 

Since before the adoption of Prohibition, Texas liquor stores have been required to close on Sunday.

 

“I think it sucks,” said Mark Moore, manager of Zella’s Liquors, 1052 E. Kingsbury in Seguin. “I’m not going to do it,” Moore said about staying open on Sundays if the bill becomes law.

 

Thompson’s bill also proposes to increase the hours liquor stores are allowed to be open on the other days of the week. Currently, they can be open from 10 a.m. to 9 p.m. Monday-Saturday. HB 421 adds two hours to the schedule, authorizing the stores to be open from 9 a.m. to 10 p.m. Monday-Saturday.

 

Moore had the same comment about the longer hours: “I’m not going to do it.”

 

Like other liquor store owners and managers across the state, Moore said opening on Sunday will increase costs more than it increases sales.

 

“In other states, it’s been done,” he said. “They had a 6 percent increase in sales, but it cost another 17 percent in labor and time.”

 

Since 2002, 14 states have repealed bans on Sunday liquor sales including neighbors New Mexico, Arkansas, Louisiana and Mexico. Sunday liquor sales currently are allowed in 36 states.

 

Moore isn’t the only store operator who has no plans to open on Sundays if the law is changed.

 

“I ain’t gonna do it,” said Velma Biltjinitis, owner of Pooter’s Liquor Store, 4110 N. Highway 46. “I am not going to open on Sundays – absolutely not.”

 

She said changing the law is being pushed by distributors and politicians and not by liquor store owners, managers and employees.

 

“I wish we had to close on Sunday and Monday,” Biltjinitis said. “It (opening on Sunday) is not going to help my business.”

 

Regarding the extended hours, she said she definitely wouldn’t start opening earlier. “We don’t open until 12 o’clock during the week anyway,” Biltjinitis said.

 

She seemed less certain about whether or not to take advantage of the bill’s extending closing time from 9 p.m. to 10 p.m.

 

“You can get what you want before 9 o’clock,” Biltjinitis said. However, she conceded that it might be helpful to some of her customers if the store stayed open until 10 p.m.

 

In Texas, more than 35,000 restaurants are allowed to sell alcohol for on-premises consumption on Sunday. Beer and wine sales for off-premises consumption are allowed at supermarkets and convenience stores after noon on Sunday. Only the state’s 2,460 liquor stores are prohibited from opening their doors on Sunday.

 

Similar legislation failed to go anywhere during the 2011 session of the Legislature. State Sen. Rodney Ellis, D-Houston, and State Rep. Jose Aliseda, R-Beeville, filed companion bills that would have allowed liquor stores to open on Sunday, but both bills were pending in committees when the 2011 session ended.

 

 

——

Maine: Liquor director says contract can make money

 

Source: WCSH6

Jan 23, 2013

 

The director of Maine’s Bureau of Alcoholic Beverages and Lottery says he’s confident the state can make a lot more money than it does now from liquor sales.

 

The state is currently in the final year of a ten-year contract with a private company that manages Maine’s wholesale liquor business. That contract included a one-time payment of 124-million dollars, and a small annual share of the profits. In 2011, according to the Bureau, that annual share abouted to a little over $8 million. But Bureau director Gerry Reid says he believes a new contract can bring the state as much as $30 million dollars a year, and result in lower liquor prices for consumers.

 

Reid says he wants a new contract for the wholesale business to avoid the up-front payment and instead have annual payments to the state. Under his plan, the bureau would have more involvement with the wholesale operations, although there would still be a wholesaler to process orders and payments, and a distributor to actually warehouse and deliver the liquor to retailers.

 

The state would continue to set retail prices, as it does now, but Reid wants to lower prices to compete with New Hampshire.

 

Democratic leaders in the Legislature aren’t ready to support the plan yet. They say the details so far have been too sketchy, and they question how much direct involvement the bureau should have in the wholesale business.

 

However, the larger debate in the Legislature will be over the eventual use of the income from that contract. Gov. Paul LePage wants to use the liquor money to pay off the state’s debt to hospitals. Democrats have been critical of that plan.

 

Gerry Reid says he hopes the Legislature will consider the issues separately, and approve the plans for a new contract so he can then advertise for proposals and begin negotiations.Reid says the goal; is to have a new contract signed by the end of this year.

Liquor Industry News 1-23-13

January 23, 2013
www.franklinliquors.com

Franklin Liquors

 

FTC study taking aim at online marketing of booze

 

Source: Reuters

By Sue Zeidler

Tue, Jan 22 2013

 

The Federal Trade Commission (FTC) plans this summer to recommend ways that the alcoholic beverage industry can better protect underage viewers from seeing its advertisements online.

 

Distillers, brewers and wineries pour millions of dollars into brand promotion on Twitter, Facebook and other social media, and industry critics contend they are not doing enough to prevent young consumers from receiving these messages.

 

“We’re doing a deep dive on how they’re using the Internet and social media,” said Janet Evans, a lawyer with the FTC, which is conducting a year-long study due to be released by early summer. “We’re focusing on underage exposure.”

 

She would not elaborate on any potential recommendations that might come out of the study, which began in April 2012.

 

The FTC is reviewing data from 14 big producers, Evans said, including Beam Inc, the maker of Jim Beam, Diageo Plc , home to Johnnie Walker, and Constellation Brands Inc , which makes Robert Mondavi and Ravenswood wines.

 

The FTC report “is something we take seriously and place at high priority,” said Karena Breslin, director for digital marketing at Constellation.

 

The FTC has made two requests for information since the study began, she said.

 

The regulatory agency has not said it intends to impose restrictions on liquor company social media advertising but it can make recommendations to the industry.

 

The FTC is empowered to file suit to ensure consumers are protected from deceptive marketing practices, Evans said, but she stressed that studies of this nature are meant to promote better self-regulation, not provide a basis for a case.

 

Industry executives say alcohol makers and distributors voluntarily adhere to the same industry-set standard for marketing to underage viewers on social media sites that the industry set for its ads on TV and other media. That requires that at least 71.6 percent of an audience consists of adults 21 and older.

 

“No one in their right mind would want to advertise to people who can’t legally buy their product,” said Frank Coleman, senior vice president for Distilled Spirits Council of the United States (DISCUS), the trade group that sets the industry’s advertising codes.

 

Coleman also cited recent data showing the audiences for Facebook and Twitter are skewed heavily towards viewers who are above the legal drinking age.

 

“According to Nielsen’s latest data, the demographic audience for Facebook is 83.5 percent 21 years and older, and for Twitter it is 85 percent,” Coleman said.

 

In June 2011, DISCUS revised its code upwards to 71.6 percent from 70 percent, after the FTC recommended it review the standard to better reflect U.S. Census population data.

 

Industry critics, including David Jernigen, director of the Center on Alcohol Marketing and Youth at Johns Hopkins University, and Sarah Mart, research director of the advocacy group Alcohol Justice, contend the industry didn’t go far enough and should raise the standard further.

 

Jernigen said it needs to be at least 85 percent to effectively protect youth, so there would be no more than 15 percent exposure to the underage drinking population.

 

“The industry says its self-regulating but it’s ineffective and social media opens up a whole new set of problems because their ads are everywhere,” said Mart.

 

Coleman said the group now requires members to install age-checking tools via instant messaging as a gateway to Twitter feeds and other branded Web platforms that ask the user for a birth date before admitting them.

 

In the first nine months of 2012, beer, wine and spirits manufacturers spent an estimated $35 million for paid Web display advertising, but industry executives estimate many millions more were spent on website creation, video production for platforms like Google’s YouTube and social media marketing efforts.

 

“We’ve significantly adjusted more money to digital for online video, websites, Facebook and Twitter content,” said Kevin George, global chief marketing officer for Jim Beam, which spends 30 percent of its media spend for online outlets, up from 10 percent in 2008, he said.

 

Many companies are expanding their digital staff. Wine maker Constellation hired Breslin three years ago to initiate digital marketing and now has a team of five reporting to her.

 

Many alcoholic beverage companies flocked to Facebook because it requires users to post their birth dates when signing up.

 

Last year Twitter partnered with Buddy Media to offer a screening tool that sends a direct message to fans who click on an alcoholic brand. The message sends the fan a link to a site that asks for date of birth.

 

Salesforce.com bought Buddy Media last June, which is now folding the platform into its marketing cloud portfolio.

 

Health advocates and industry critics are crying foul. “Facebook and other interactive platforms are poorly monitored and not well age-protected,” said Jernigen of Johns Hopkins University. “Anyone can say they’re 21 and click yes.”

 

 

——

A History Lesson from the UK

 

Source: Public Action Management

by Pamela S. Erickson

Jan 22nd

 

Headlines read: “Health warning after boozy New Year celebrations sparks rise in ambulance calls.” “Shameful scenes of booze-fuelled New Year’s chaos in cities across Britain.” And, these are just two of the many headlines documenting the UK’s continuing alcohol crisis. Photos showed young women in scanty clothing, and young people passed out on the streets.

 

But, Britain should know better. It has happened before – several times. And, each time, the pattern involved loosening regulations to promote business, followed by out-of-control drinking, followed by government attempts over many years to re-gain control.

 

The Gin Craze: In the 1700s, laws were changed to help the gin industry and increase gin consumption. The tax was decreased, which made it an attractive product versus beer. Consumption quickly rose and huge problems ensued. For almost a decade, Brits tried to get the problem under control, mostly via major tax hikes. The high taxes were initially ignored, but eventually a balanced tax and campaign against spirits took hold. But it took over 100 years.

 

World Wars: When the First World War commenced, drinking was again very heavy and England realized it could lose more people to alcohol than to the war. At that point, the government instituted tight controls over drinking hours and places, and encouraged people to drink a weak beer product. These strategies worked well – so well that they were retained and loosened somewhat. During the Second World War, tight control was again instituted and mostly retained after the war.

 

The slippery slope of deregulation: But in the 1960s, when memories began to fade, things changed. As the British Medical Association Board of Science noted, “Since the Second World War, there has been considerable deregulation and liberalization of alcohol control policies in the UK. This has been accompanied by an increase in consumption levels and alcohol-related problems . . .” Alcohol was allowed to be sold in grocery stores in the 1960s; bar and pub closing hours were extended, as were Sunday sales. After 2003, 24-hour sales were allowed. Drinking laws for youth were very weak and there was little enforcement. Large increases in alcohol disease and hospitalization occurred.

 

“Those who cannot remember the past are condemned to repeat it.”

George Santayana, Reason in Common Sense

 

The UK has been engaged in numerous attempts to quell the problems. Some of these attempts may eventually work, but a mere review of their history could have told them that when you loosen regulations, problems ensue. It’s a good lesson for the United States, where in many places alcohol regulation is under threat. We have a good regulatory system that meets World Health Organization criteria to a great extent. Do we really want to throw that all away in order to make a few more bucks?

 

 

——

December 2012 Control State Results

 

Source: NABCA

Jan 22nd

 

END-OF-YEAR Results

 

Nine-liter case control state spirits sales during 2012 increased 3.6% over sales during the same period last year, led by Irish Whiskey, Cordials, Vodka, Domestic Whiskey, and Brandy/Cognac reporting annual growth rates of 19.6%, 6.1%, 5.1%, 3.9%, and 3.8%, respectively. Sales of Cocktails and Gin were soft during the year. Iowa, Idaho, Montana, New Hampshire, Ohio, Oregon, Pennsylvania, Utah, Virginia, and Wyoming reported annual increases exceeding the control state trend.

 

Control state spirits shelf dollars grew 6.4% during 2012. The growth rates reported for Irish Whiskey (23.3%), Domestic Whiskey (8.5%), Cordials (7.9%), Brandy/Cognac (7.5%), Vodka (7.4%), and Scotch (7.3%) are notable. Shelf dollars reported by Iowa, Idaho, Montana, North Carolina, New Hampshire, Ohio, Oregon, Utah, and Wyoming grew above the control state trend.

 

Control state volume growth during 2012, 3.6%, follows growth rates reported for 2011 and 2010 of 3.2% and 2.3%. 2012’s shelf dollar growth, 6.4%, compares to 4.5% and 2.6% reported for 2011 and 2010. These reported growth rates yield annual price/mix calculations during 2010 through 2012 of 0.3%, 1.3%, and 2.8%, respectively, and suggest that the growth of premium-priced spirits has accelerated because of the economic recovery in the Control States market since 2011.

 

END-OF-DECEMBER Results

 

During December, nine-liter spirits case sales in the control states were down 2.7% compared to same month last year sales. Rolling-twelve month volumes grew 3.6%, lagging November’s 4.2%. No control jurisdiction reported a monthly growth rate exceeding its twelve month trend.

 

Control state spirits shelf dollars were flat during December while trending at 6.4% during the past twelve months. No control jurisdiction reported a growth rate exceeding its twelve month trend.

Price/Mix for December is 2.7% compared to November’s 4.2%.

 

Control State spirits sales were soft during December. For explanations, consider the following:

 

Michigan, with 16% of the Control States’ spirits and dollars volume, reported four weeks of sales this December against five weeks last year, artificially deflating sales and skewing Control States results. Michigan had seven fewer selling days-21% fewer-during this year’s December compared to last year’s. Utah, with 2% of Control State spirits volume, reported four weeks of sales against five weeks the previous year: there were 6 fewer selling days-21% fewer-during this year’s December. After normalizing nine-liter spirits case sales for Michigan and Utah, December’s nine-liter case growth is 1.5%, and rolling-twelve month volumes show an increase of 4.0%. Likewise, after normalizing shelf dollars, December’s control state shelf dollar growth rate is 4.4%, and its twelve-month trend is 6.9%. December’s normalized Price/Mix is 2.9%.  

 

The December, 2012, calendar has five Sundays compared to four last year. Retail outlets in six control jurisdictions-Alabama, Montana, Mississippi, North Carolina, Utah, West Virginia-are closed on Sundays. Christmas, 2011, was celebrated on Sunday; Christmas, 2012, was celebrated on Tuesday. Many retail outlets in the Control States are closed on Christmas. December, 2012, had twelve fewer selling days because of Christmas’ position in the Calendar relative to 2011. The December, 2011, calendar had five Thursdays and five Fridays, which were replaced by four Thursdays, four Fridays, and a Sunday and Monday in the December, 2012, calendar. On average, 38% of weekly business is done on Thursdays and Fridays versus 14% on Sundays and Mondays.

 

During December, Irish Whiskey, with 0.8% share of the control states spirits market, was the fastest growing category with 9.8% growth reported and a twelve month growth trend of 19.6%. Vodka, with 35% share, grew during the same periods at -2.8% and 5.1%. No category’s growth rate exceeded its twelve-month trend.

 

December’s nine-liter wine case sales growth rate was 0.4%. Pennsylvania, New Hampshire, Utah, Mississippi, Montgomery County Maryland, and Wyoming reported 3.1%, 0.8%, -13.2%, -5.8%, -1.9%, and 3.9%, respectively. December’s rolling-twelve month wine volume growth, 4.2%, is down slightly from November’s 4.5%.

 

 

——

Beverages: Nielsen Spirits: Strong Results

 

Source: Morgan Stanley

Jan 22nd

 

Key takeaways for spirits scanner data (ex- WA State) for the 4-weeks ended 1/5: (1) Spirits category sales growth was +6.0%, well above +3.5% in the prior 12-weeks, as volume accelerated. Two-yr stacked sales growth of +6.3% was above +4.7% in the prior 12-weeks. (2) Price/mix of +3.2% was above the prior 12-weeks at +2.3%. (3) Bourbon continues to gain share. The strong Nielsen results is at odds with industry feedback that US alcohol holiday sales were weak, but we believe non-Nielsen channel softness (particularly on-premise) drove weak total holiday sales.

 

Key Industry Trends: Total spirits sales for the 4-week period ended 1/5 were up +6.0% y-o-y (+6.3% on a 2-yr avg. basis), driven by +2.7% volume and +3.2% price/mix. Category strength in Bourbon (+12.1%), Vodka (+6.1%), and Canadian whiskey (+8.6%) were partially offset by slowing prepared cocktails (-2.7%), which was lapping a difficult y-o-y comparison.

 

Beam: Beam sales were up +6.7% (+10.3% 2-yr avg.), gaining 7 bps of dollar share, despite lapping a tough +13.8% y-o-y comp, as competitor pricing ramps up. Two-year stacked growth of +10.3% accelerated vs. +7.1% in the prior 12-weeks. Strong +4.3% pricing (slightly below the prior 12-weeks trend of +5.4%) was driven by mix and MSD (%) bourbon pricing. Strength in Pinnacle Vodka (+17.7%) and Skinnygirl (+8.2%) was partially offset by weakness in Dekuyper (-4.5%).

 

Brown-Forman: BFB sales increased +6.7% y-o-y (2-yr avg. +9.5%) driving 5 bps of $ share gain on +4.5% volume (above +1.4% in prior 12-weeks) and muted +2.1% price/mix. Two-year avg. sales growth of +9.5%, was also above +7.0% in the prior 12-weeks. Jack Daniels ex. Tenn. Honey was up +4.5% and El Jimador was down -8.6%. Jack Daniels Tennessee Honey continues to be strong, up +51.0% y-o-y.

 

Constellation Brands: STZ sales were up +9.1% (2-yr avg. of +8.0%), gaining 7 bps of $ share. Prior 12-week sales growth was +7.5% (2-yr. avg. of +8.0%). Sales growth was driven by Svedka strength (+16.4%).

 

 

——

John Distilleries seeks foreign partner

 

Source: TNN

Anshul Dhamija

Jan 23, 2013

 

John Distilleries (JDL), founded by NRI businessman Paul John, has mandated Morgan Stanley to scout for potential suitors interested in picking up a major stake in the country’s fifth largest alcoholic beverage company by volume.

 

The promoter and private equity investor Gaja Capital, which holds about 35% stake in the Bangalore-based maker of Original Choice whiskey, has valued the company at about Rs 900 crore, said banking sources with knowledge of the matter.

 

The Rs 450-crore JDL’s Original Choice sells over 10 million cases with strong presence in the southern markets. The brand is the largest selling in Karnataka, the home turf of domestic liquor heavyweight United Spirits (USL).

 

This development comes 60 days after Vijay Mallya-led USL, which commands a 53% share in the Indian spirits market, hived off controlling stake to the world’s largest spirits maker Diageo for approximately Rs 5,500 crore. The USL sale is widely expected to set off further consolidation moves in a sector where MNC brands are gaining ground.

 

The deal, which is likely to see two existing shareholders offload majority stake, would also give an exit window to India focused private equity fund Gaja Capital, which had entered the company two years ago.

 

Sources briefed on the matter said that smaller international firms like Italian spirits maker Gruppo Campari and American spirits maker Beam Global could be attracted to a potential deal, but a definite picture would emerge only after Morgan Stanley starts an official search for a foreign partner. The transaction could give foreign buyer a strategic foothold in the country’s bigger whiskey markets.

 

A region wise break-up of the Indian Made Foreign Liquor market, which accounts for 36% of the overall alcoholic beverage space, shows that South accounts for 49% of sales, West 30%, North 12%, and East 9%. JDL’s brand portfolio also include Mont Castle Brandy, Grand Duke premium whisky, and Big Banyan Wines.

 

What makes Indian liquor companies sport high valuations as well as attractive to foreign players is the strong entry barriers that protect the local incumbent players.

 

Financial services company Anand Rathi, in its report on the Indian alcoholic beverage market, pointed out limited distribution networks and importantly the tight government control of the liquor market at the state level, are some of the barriers new entrants are weighed down by.

 

 

——

Kirin’s Next Move in Fraser & Neave Still in Question

 

Source: WSJ

By Isabella Steger

Jan 23rd

 

Japan’s Kirin Holdings Co. Ltd. says it hasn’t decided yet what to do with its 14.8% stake in Singapore’s Fraser & Neave Ltd., now that its settled on a Thai buyer. Shareholders, however, seem like they know what they want.

 

Thai tycoon Charoen Sirivadhanabhakdi beat out a competing offer from Indonesia’s Riady family with an offer that valued the property and drinks conglomerate at $11 billion on Monday. Kirin had previously said it would cooperate with Overseas Union Enterprise Ltd., a Singapore-listed unit of the Riadys, and tender its stake to OUE. On Monday, OUE said it would not raise its $10.6 billion offer, effectively pulling out of the race to buy Fraser & Neave.

 

Kirin’s choice now is either to make a lot of money selling its shares — around S$2.5 billion ($2 billion) — or retain an interest in the company, which would continue to give it access to fast-growing beverage markets in Southeast Asia. By teaming up with OUE, Kirin had hoped to buy back F&N’s food and beverage operations, mainly the Malaysian arm of F&N.

 

Shareholders certainly like the idea of the former option, with Kirin’s stock jumping more than 3% to a ten-month high Tuesday after it was announced that the Thais had won. One reason could be that Kirin has a history, according to analysts, of overpaying for assets, for example, in Brazil, when it bought brewer Schincariol in 2011 for $3.9 billion. Analysts thought the price was high, at about 16 times EV/Ebitda compared to around 11 to 12 times for brewery deals on average, based on calculations by Credit Suisse at the time.

 

“Investors welcomed this because the share sales will help to improve Kirin’s earnings,” said Nomura Securities analyst Satoshi Fujiwara.

 

There may also be no major merit to holding on to the stake in F&N, as Kirin’s tie-up with the company is limited to areas such as manufacturing F&N products at Kirin’s plant in Vietnam. It no longer has a beer marketing accord with the company after F&N sold its interest in the Tiger beer joint venture to Heineken NV, which put the rest of F&N in play.

 

Kirin said Tuesday that it has made no decision yet on the stake.

 

As of Tuesday, Mr. Charoen, through his vehicle TCC Assets, controls 44.05% of F&N, up from 42.5% on Monday. His offer for F&N is conditional upon getting more than 50% of the company’s shares by Feb. 4.

 

 

——

AB Inbev wins battle of the Bud in trademark war

 

Source: Drinks International

By Hamish Smith

22 January, 2013

 

An EU court has dismissed Budweiser Budvar’s challenge against AB Inbev’s use of the term ‘Bud’  in the latest round of the decade-long trademark saga.

 

AB Inbev’s Budweiser can now be referred to as Bud in all 27 EU states.

 

In a statement today (Tuesday 22 January) the General Court said it “dismisses the actions brought by Budejovický Budvar against the registration of the Community trade mark ‘Bud’ for beer applied for by Anheuser-Busch”.

 

The Czech brewer’s challenge hinged on the argument that ‘Bud’ could be considered an appellation of origin.

 

The Luxemberg-based court found that Budweiser Budvar’s evidence was insufficient to prevent AB-Inbev registering and using the trademark.

 

The statement continued: “That trade mark can be registered because of the insignificant use in France and Austria of the appellation of origin ‘bud’.”

 

In response to the ruling, AB Inbev said: “We are extremely pleased to have confirmed our right to a Bud trademark registration valid throughout the entire European Union. This ruling is majorly important in that it will expand our already strong global protections for Bud and Budweiser.

 

“While there are only a few countries in Europe where we do not have a registration for Bud or Budweiser, this registration will fill in those few remaining gaps. We will now have virtually world-wide protection for the Bud or Budweiser brands.”

 

Last week (January 15), the Czech brewer won a ruling at the UK’s Supreme Court that cleared the way for both Budweiser Budvar and AB InBev to use the Budweiser name.

 

The case,  in which AB-Inbev tried to have Budweiser Budvar stripped of its right to Budweiser trademark in the UK, was at appeal stage and so marks the cessation of litigation in the market.

 

Commenting on the decision Budvar CEO Jiri Bocek said: “This attempt to change the final decision of the court proves the long term interest of AB InBev in trying to gain exclusive rights for the Budweiser name at any cost.”

 

 

——

Minimum pricing legal challenges underway

 

Source: The Spirits Business

by Tom Bruce-Gardyne

22nd January, 2013

 

After a three year battle, the Scottish Government’s bid to introduce a minimum price on alcohol has reached the Court of Session in Edinburgh, in what is being seen as a test case for British Prime Minister David Cameron.

 

Minimum pricing could damage the Scotch export industry, worth £4bn a year to the economy

 

Lawyers for the Scotch Whisky Association (SWA) have argued that the measures contravene EU free trade rules, would prove ineffective in tackling alcohol misuse, and could damage an export industry worth £4bn a year to the Scottish economy.

 

This week the Judge – Lord Doherty  – will hear the counter argument from lawyers representing Holyrood and Westminster.

 

Behind the scenes, EU trade ministers are said to be broadly sympathetic with the SWA’s views, while the Scottish National Party (SNP) are furiously lobbying European health ministers for their support.

 

The Scottish Government’s desire for a 50p per unit price, which would raise the cheapest 70cl bottle of Scotch to £14, was passed by the Parliament in May last year at its second attempt. Meanwhile Cameron has voiced support for a 45p per unit minimum south of the border.

 

The case is set to conclude this Friday 25 January, after which the Lord Doherty will consider his ruling. Whatever that is, it may well be the first of a series of legal challenges that could go to the Supreme Court in London or the European Court of Justice in Luxembourg.

 

Either way, it appears unlikely that minimum pricing in Scotland will hit the streets this April as planned.

 

 

——

Chicago Energy Drink Ban? Ed Burke Wants To Curb High-Caffeine Beverages For Adults

 

Source: Huff Post

01/18/2013

 

A Chicago alderman is proposing a ban on energy drinks for kids and adults, citing the number of high-caffeine drink-related deaths in recent years.

 

Buzzkill.

 

In a Thursday City Council meeting, Chicago’s most powerful Alderman, Ed Burke (14th) proposed an ordinance that would nix “highly caffeinated” energy drinks for everyone in Chicago, according to the Tribune.

 

In Burke’s crosshairs are popular drinks like Monster Energy Drink, Full Throttle and 5-Hour Energy, reports NBC Chicago.

 

Unlike his fellow Ald. George Cardenas’ (12th) Nov. proposal to ban the sale of the controversial beverages to anyone under 21, Burke’s ordinance introduced Thursday would bring drink sales and distribution in Chicago to a screeching halt – and would be a blanket ban for everyone, not just minors.

 

The Sun-Times called Burke’s measure a “surprise crackdown” on the drinks that have been previously linked to deaths, in the cases of 5-Hour Energy and Monster.

 

The ordinance states “No person shall sell, give away, barter, exchange or otherwise furnish any energy drink,” reports the Sun-Times. Here, an energy drink is defined as “a canned or bottled beverage which contains an amount of caffeine exceeding or equal to 180 milligrams-per-container and containing Taurine or Guarana” – and scofflaws would face fines of $100 to $500 per offense.

 

WIthin the parameters of the ordinance, the ban would really be targeting drink size; a standard 8.4-ounce can of Red Bull or a 16-ounce can of Monster would still be in play, but the 24-ounce can of Monster would not.

 

According to Fox Chicago, a federal survey released in January indicates emergency room visits involving energy drinks rose from about 10,000 to more than 20,000 between 2007 and 2011.

 

 

——

Alcohol and a Good Night’s Sleep Don’t Mix

 

Source: WebMD Health News

By Denise Mann

Reviewed by Laura J. Martin, MD

Jan. 22, 2013

 

Think a nightcap may help you get a better night’s sleep?

 

Think again.  

 

A new review of 27 studies shows that alcohol does not improve sleep quality. According to the findings, alcohol does allow healthy people to fall asleep quicker and sleep more deeply for a while, but it reduces rapid eye movement (REM) sleep.

 

And the more you drink before bed, the more pronounced these effects. REM sleep happens about 90 minutes after we fall asleep. It’s the stage of sleep when people dream, and it’s thought to be restorative. Disruptions in REM sleep may cause daytime drowsiness, poor concentration, and rob you of needed ZZZs.

 

“Alcohol may seem to be helping you to sleep, as it helps induce sleep, but overall it is more disruptive to sleep, particularly in the second half of the night,” says researcher Irshaad Ebrahim. He is the medical director at The London Sleep Centre in the U.K. “Alcohol also suppresses breathing and can precipitate sleep apnea,” or pauses in breathing that happen throughout the night.

 

The more a person drinks before bed, the stronger the disruption. One to two standard drinks seem to have minimal effects on sleep, Ebrahim says.

 

“The immediate and short-term impact of alcohol is to reduce the time it takes to fall asleep, and this effect on the first half of sleep may be partly the reason some people with insomnia use alcohol as a sleep aid,” Ebrahim says. “However, this is offset by having more disrupted sleep in the second half of the night.”

 

“Alcohol should not be used as a sleep aid, and regular use of alcohol as a sleep aid may result in alcohol dependence,” he says.

 

The findings will appear in the April 2013 issue of Alcoholism: Clinical & Experimental Research.

 

Alcohol tricks people into thinking they are getting better sleep, says Scott Krakower, DO. He is an addiction specialist at North Shore-LIJ in Mineola, N.Y. “People who drink alcohol often think their sleep is improved, but it is not.”

 

REM is the more mentally restorative type of sleep, says Michael Breus, PhD, a sleep specialist in Scottsdale, Ariz. “Alcohol is not an appropriate sleep aid. If you rely on alcohol to fall asleep, recognize that you have a greater likelihood to sleepwalk, sleep talk, and have problems with your memory.”

 

If you are having trouble sleeping, talk to your doctor about how to improve your sleep quality. He or she may be able to rule out underlying sleep disorders like sleep apnea and suggest appropriate sleep aids.

 

Better sleep habits can also help. Some tips to improve sleep habits include:

 

    Get regular exercise, but no later than a few hours before bed.

    Avoid caffeine, alcohol, or nicotine in the evening.

    Reserve the bed for sleeping and sex only.

    Keep your bedroom at a cool temperature.

    Set regular wake and bed times.

 

 

——

Consumer Wine Trends: Americans Drinking More, “Better” Wines

 

Source: WineBusiness.com

by Erin Guenther

Jan 21st

 

The fundamental consumer base has and will continue to change, and wine marketers and makers can not ignore the new way people drink wine, according the research presented at the Wine Market Council Update on Jan. 18, 2013. Consumers are finding more reasons to “celebrate” with a bottle of wine or drinking more wine when a bottle is opened, and in some cases doing both-a very good sign for an industry that posted $13.3 billion in off-premise sales last year.

 

Of all wine drinkers, 57 percent are now considered “core” drinkers, meaning they drink wine on a fairly consistent weekly or monthly basis, and they account for 25 percent of the United States’ adult population. This group consumes an astounding 93 percent of the 175 million cases of wine sold off-premise last year.

 

“When Wine Market Council did its first survey in 1994, only 34 percent of all wine drinkers were cores. The reversal of fortune for us today is remarkable and it really is in my mind, the truest sign of the acculturation of wine into American society,” said John Gillespie, president of Wine Market Council.

 

A trend of drinking more for the simple reason of making it home after a long day at work has produced a corresponding rise in table wine sales, which are up 4.6 percent in dollar sales and 1.7 percent in volume, compared with last year, according to Nielsen-tracked data also presented at the conference. The average price of table wine sold reached $6.30, up 2.7 percent since 2011, nearly matching inflation rates.

 

In addition, new items saturated the market, accounting for 34 percent of wines in the $10 to $15 price range, and 30.7 percent of those sold in the $6 to $9.99 range. But the rise in “occasion” wine hasn’t just added up to stronger table wine sales. Consumers are still wary of economic conditions, but it seems that they’re tired of feeling poor.

 

“Consumers continue to drink a little bit more and they’re drinking better, and that’s across the board-beer, wine and spirits,” said Dale Stratton, vice president of Constellation Brands.

 

This is perhaps best demonstrated by recent restaurant purchasing habits chronicled in Wine Market Council’s most recent survey. On an average weeknight dinner, 48 percent of respondents will spend less than $10 for a glass of wine and 29 percent are willing to spend anywhere from $10 to $12. However, if that same consumer were to buy wine by the glass on a weekend when out with friends, 30 percent will pay more than $15, 24 percent would pay between $13 and $15, and another 29 percent would order a glass that cost $10 to $12.

 

The same holds true for bottle purchases at restaurants. A staggering 45 percent would not spend more than $30 on a bottle for a weeknight dinner, but 34 percent would spend $30 to $49 and another 35 percent would spend $50 to $74 dollars if they were out with a group on Saturday night.

The Generational Challenge

 

It’s no surprise that the largest amount and most frequent buyers are Baby Boomers (ages 49 to 67) and Millennials (ages 19 to 36), who either have enough money to purchase or now accept wine as part of their culture. Both groups are finding more occasions to drink wines, and their influence on the market continues to grow.

 

Of the 70 million Millennials, there are still 8 million who have yet to reach legal drinking age. As they do, the older Millennials will become more settled in their careers, homes, and purchasing habits, leaving the door open for an even larger number to learn to love and appreciate wine.

 

“The Millennial share of core wine drinkers continues to grow, not only because 4 million of them turned 21 this year, but also because more Millennials are in their late twenties and early to mid-thirties, a stage in life where wine consumption often rises, as we have seen with the Baby Boomers and Gen X-ers before them,” said Gillespie.

 

By sheer numbers alone, Millennials have the potential to shape and influence the evolving American perception of wine. “Millenials are significantly more likely to believe that an open bottle of wine stays fresh for two to three days,” he said. “If they could just pass that data along to their elders we would be in much better shape.”

 

Boomers are getting older, however, and as they do they are less likely to spend money on wine as issues such as retirement and fixed income become more prevalent.

 

Hispanic Headwinds

 

The Latino population is one of the largest untapped markets for wine. As a group, Hispanics only account for 16.3 percent of today’s population, but it is estimated that by 2050, they will be the majority, nearly doubling in size to reach 30.8 percent of the population, according to Nielsen data. Their core values coincide with that of many wineries-family comes first, food and drinks are for bonding, and language is a connecter-but the group is still largely ignored by wine marketing efforts.

 

While Hispanics typically are consumers of beer and spirits, those that do drink wine aren’t simply content with table wine. Perhaps unsurprisingly, they prefer wines sourced from Spain, Argentina and Chile, in that order. It seems they also have a bit of a sweet tooth-dessert wines and Moscatos were the most popular varieties of choice.

 

“This is going to change the footprint and change really what we’re doing and how we’re going to go forward,” said Stratton.

 

http://www.winebusiness.com/news/?go=getArticle&dataid=110521

 

 

——

Barossa Valley Estate winery placed in receivership

 

Source: Adelaide Now

Tony Love

January 18, 2013

 

GRAPE-grower shareholders of Barossa Valley Estate have been left up in the air after their winery cooperative was placed into receivership.

 

The timing of the move couldn’t be worse as the 2013 vintage nears and the future of grape contracts remains uncertain.

 

It’s also understood many of the supplier shareholders have yet to be fully paid for their 2012 crops.

 

Barossa Valley Estate Ltd’s assets and affairs were placed into the hands of receivers McGrath Nicol on Tuesday.

 

Company partner Sam Davies said they intended to continue operating the winery while working closely with the contract growers and BVE management over the next two weeks to determine and settle 2013 grape supply requirements.

 

Existing domestic and export distribution arrangements will be reviewed, Mr Davies said.

 

Upcoming functions booked through the cellar door and function facility would be honoured, he said.

 

A source close to BVE said the company would need to quickly sort out what the present financial scenario meant before the coming harvest.

 

“It’s the busiest time of the year,” the leading Barossa identity said.

 

Barossa Valley Estate not only makes its own labelled wines but also has a large contract processing component to its business, he said.

 

The winery became a fully owned shareholder cooperative venture in April 2011 after a consortium of Barossa Valley growers bought out the half stake in the company previously owned by Accolade Wines.

 

 

——

Margaret River bolsters Western Australia export figures

 

Source: Decanter

by James Lawrence

Tuesday 22 January 2013

 

The value of bottled wine exports from Western Australia – excluding the Margaret River appellation – fell by 41% in 2012, Wine Australia has revealed.

 

Bottled wine exports from the region fell from AUS$12.9m to AUS$7.6m, according to the December 2012 Wine Export Approval Report released this month.

 

Margaret River was the only appellation that had shown an increase in export value, rescuing the region from recording an overall decline.

 

Overall, Western Australia’s total wine export value rose from AUS$23.7m to AUS$26.2m in 2012, a lower than expected increase.

 

However, Wines of Western Australia general manager Aymee Mastaglia downplayed any notion that the region’s export value was in rapid decline.

 

‘I think the figures are a little misleading – between 2010 and 2011 WA experienced a very large growth in export sales, from AUS$33m up to AUS$43.m.

 

‘Although WA companies in general experienced a decline from the previous year, the total figure is larger than in 2010,’ Mastaglia told Decanter.com.

 

Mastaglia said that the growth was being largely generated from Margaret River wine exports to Asia, and in particular China, which is now Margaret River’s biggest market.

 

According to IWSR figures released in 2012, Australia recorded an overall 37% increase in wine sales to China in 2011, and is the second largest wine exporter to China, after France.

 

Simone Horgan-Furlong, marketing manager for Leeuwin Estate, said that the region had also greatly benefited from Chinese tourism.

 

‘As a result of the growing Chinese interest in wine tourism, our cellar door visits are rapidly increasing,’ he said.

 

Wines of Western Australia said that the top WA brands in China by volume included Cape Mentelle, Ferngrove, Howard Park, Leeuwin and West Cape Howe Wines.

 

‘The Great Southern region is also doing very well, they have a major push into the second tier cities in China at the moment,’ Mastaglia added.

 

 

——

New York: LAST STORE ON MAIN STREET COALITION RESPONDS TO GOVERNOR CUOMO’S 2013-2014 BUDGET PROPOSAL

 

Source: LAST STORE ON MAIN STREET

Jan 22nd

 

The following is a statement from Jeff Saunders, founder of the Last Store on Main Street Coalition:

 

“With his Executive Budget today, Governor Cuomo has demonstrated once again that he recognizes the best way to lift the New York wine industry and create jobs is to invest in a consumer-based marketing program, which is exactly what he does with his $2 million Taste NY program. The more New Yorkers understand the high quality wine made right here at home, the more they drink it and the more they buy it. That growing demand will generate jobs and investments as wineries expand and new ones spring up across the state. Wine retailers across the State stand ready to help play our part in that growth.

 

“In a budget that has a strong focus on creating jobs upstate, it’s especially fitting that the Governor has rejected the job-killing Wine in Grocery stores gimmick for the third straight year. He knows this bad idea would generate little in way of revenue and put mom-and-pop wine stores out of business across the State, especially upstate. We know the Big Box stores care little about putting more than 4,000 people out of work just to increase their profits, but we are fortunate we have a Governor who understands and stands with small businesses in this State.”

 

 

——

Tastevin Research Reveals Wine List Placement Is As Important As Shelf Placement

 

Source: Balzac

Jan 22nd

 

Labrador OmniMedia, a team of beverage and software experts who produce the Tastevin tablet beverage list, has used the data collected from their revolutionary wine list to provide key insights into consumer behavior at restaurants across the nation. Tastevin analyzed the wine sales data of a large sample of accounts in 12 of the largest states and markets in the US. The aggregate, anonymized results show that where a wine appears on the list plays a critical role in sales volume.

 

“Hard data adds a whole new perspective to the on-premise world,” says Labrador OmniMedia president Josh Hermsmeyer. “Most of the previous information about consumer on-premise behavior has been anecdotal. We’ve been able to use our tablet beverage lists to collect data across the country and measure how important it is to be near the top of your category on wine lists. This is hard data as collected by actual transactions at our client restaurants.”

 

The right digital “shelf space” sells

 

Tastevin ran an analysis of six months’ worth of data for 50 restaurants across the United States. Sales were compared to the position a wine held on the various lists. A very strong correlation was found between position on the list and quantity sold. For instance, a wine listed first in a group (“Un-oaked Chardonnays,” for example) will perform 265 times better than the wine listed 30th in that group. Similarly, the wine listed first will perform 3.4 times better than the wine listed 10th in that same group.

 

“If you want to increase your wine sales, move to the top of the list,” says Hermsmeyer. “The case is much the same in the publishing industry, specifically the newspaper business. If your headline is ‘above the fold’ many more people will see it and read it.”

 

For tablet wine lists, the research shows a significant drop after the first page. “We see a 35% drop in sales from the sixth to the seventh wine in a group,” says Hermsmeyer, “which aligns with the ‘above the fold’ phenomenon described above. Tastevin wine lists show six full items per screen, so this implies that a consumer often makes a choice on the type of wine they are going to purchase after viewing one of the first items they see. In short, it matters very much in which position on a list a wine lives. Crucially, this behavior is very likely to hold regardless of whether the list is digital or print.”

 

Restaurants across the country are using the Tastevin system to track consumer behavior, understand their customers, and integrate their wine list sales seamlessly into their accounting and inventory control software. The results from the data are helping both restaurants and wineries sell more wine on-premise.  

 

“Tastevin is the first truly complete restaurant beverage program I’ve seen,” says Michael Klauber, Co-Proprietor of Michael’s On East in Sarasota, Florida. “It’s designed from a restaurateur’s point of view on the back-end, with comprehensive reporting and inventory control, but even more importantly, the program caters to consumers. It’s interactive, intuitive, and easy for guests to navigate. With more than 350 wine selections on our restaurant’s list, Tastevin provides our staff the opportunity to learn even more about individual wines on our ever-changing wine list while also encouraging Michael’s On East guests to browse detailed winery information, winemakers’ stories and food pairings.”

 

About Labrador OmniMedia

Labrador OmniMedia is reinventing on-premise beverage sales with Tastevin. Founded by industry veterans John Jordan and Josh Hermsmeyer, Labrador is obsessively dedicated to creating technology that makes their beverage lists the easy choice for diners, restaurateurs, and wholesalers alike. The application is currently in use in a number of top restaurants around the country, including Coohills Restaurant, Downtown Dining, Hawthorn, Hyatt Irvine, Michael’s on East, Pacifica Group of Restaurants, and Ruth’s Chris Steak House.

 

 

——

Central European Distribution Appoints Ryan Lee As CFO

 

Source: RTT News

1/22/2013

 

Central European Distribution Corp. (CEDC: Quote) announced Tuesday that it appointed Ryan Lee as Chief Financial Officer. Lee, who had served as CFO of Russian Alcohol Group, a CEDC subsidiary, since April 2012, brings over 23 years of financial management experience in both retail and tobacco. He has worked for 13 years in Russia, five years in Switzerland, and two years in each of the UK and the Netherlands. From November 2008 to March 2012, Lee worked for Eldorado as Vice President Finance.

 

From 1999-2008, Lee worked for Japan Tobacco International, Geneva as Vice President Finance, business Service Centres & Integration, among other senior roles, including as CFO, Vice President Finance and Financial Controller for Russia. From 1989-1999, Lee held accounting, finance and commercial positions at Unilever PLC and its group subsidiaries.

 

CEDC also announced that Bartosz Kolacinski agreed to resume his position as Deputy CFO of the company. Kolacinski had been serving as Interim CFO of CEDC since September 2012.

 

 

——

Family Dollar stores to begin selling alcohol

 

Source: News 4

Jan 22nd

 

SAN ANTONIO — Olivia Lopez has lived in the same neighborhood for 16 years and she worries about people loitering and drinking. It’s a problem she thinks will get worse if a nearby Family Dollar Store starts selling beer and wine.

 

“Yeah, you can see them walking with their can in a brown paper bag. So that would be my concern that there would be more people like that,” said Lopez.

 

According to Bryn Winburn, the discount retailer company is testing beer and wine sales in a few markets, at customers request. The company has more than 7000 stores across the country in 44 states.

 

So far, no official word on the sale of liquor in San Antonio.

 

The idea of liquor at Family Dollar doesn’t bother Sandra Jimenez, as long as students at two nearby schools are protected.

 

“Like I said, as long as they don’t sell to minors, I’m okay with it,” she insisted.

 

In a news report, some North Carolina employees raised concerns about safety if their employer starts selling beer and wine. Those employees think it will heighten the threat of robberies, shoplifting and loitering.

 

In an email, Winburn stated “the safety of our team members and customers is our number one priority.”

 

Winburn added, all employees have been trained on alcohol sales and the company is compliant with all local, state and federal regulations, when it comes to the sale of alcoholic beverages.

 

 

——

Brinker: 2Q sales rise despite traffic decline

 

Company reported a 4.2-percent increase in profit for the quarter

 

Source: NRN

Ron Ruggless  

Jan. 22, 2013

 

Brinker International Inc., parent to the Chili’s Grill & Bar and Maggiano’s Little Italy casual-dining chains, reported a 4.2-percent increase in quarterly profit on Tuesday, as same-store sales rose slightly despite dips in traffic.

 

Dallas-based Brinker reported net income of $37.2 million, or 50 cents per share, for it’s second quarter ended Dec. 26, compared to $35.7 million, or 44 cents per share, in the prior year period. Revenue rose 1.1 percent to $689.8 million.

 

Sales at units open at least 18 months rose 0.9 percent at Chili’s and increased 0.6 percent at Maggiano’s during the quarter. Traffic in the quarter fell 1.9 percent at Chili’s and 2.4 percent at Maggiano’s, the company reported.

 

Wyman Roberts, chief executive and president of Brinker International, said a later-than-usual Christmas holiday and the accompanying sales boost fell after the quarter’s end. He added that weather negatively impacted results by 40 basis points.

 

Restaurant operating margins improved about 30 basis points, to 15.7 percent from 15.4 percent in the prior-year period.

 

Brinker International ended the quarter with 1,549 Chili’s units and 44 Maggiano’s restaurants.

 

 

——

Brinker International (EAT): Some company-specific positives, but Casual Dining trends murky

 

Source: Goldman Sachs

Jan 22nd

 

INVESTMENT LIST MEMBERSHIP: Neutral

COVERAGE VIEW: NEUTRAL

 

What’s changed

We raise our FY2013-2015E EPS to $2.26/$2.44/$2.69, still below consensus, but higher to reflect increased confidence in the forward margin trajectory. Our revenue forecasts are for the most part unchanged.

Implications

 

We retain our Neutral rating on EAT shares. To the positive:

(1) The company has several company-specific revenue drivers in place, and as such its trajectory is not entirely at the whim of soft industry trends. It is starting to build units again, is in the early stages of a system-wide restaurant remodel program, and has several new product launches in the pipeline (including pizza in the coming quarters).

 

(2) EAT’s margin enhancement initiatives continue to bear fruit. We project restaurant margins of 16.8% for FY2013, up from 14.0% in FY2010. Margin expansion stalled in 2QFY13; however, based on management commentary on the conference call, this appears to be driven by temporary items such as a spike in overtime and health insurance claims.

 

(3) The company continues to generate a significant amount of FCF, and is shareholder-friendly in its deployment. It has a 2.5% dividend yield and we expect 6-7%/year in ongoing repurchases. It bought back $45 million of stock in the quarter, and another $41 million post quarter close.

 

This said, we remain concerned about Casual Dining trends more broadly, and believe EAT may struggle to post robust financial results even with some solid programs in place. Consensus forecasts for positive traffic growth looking forward may ultimately prove optimistic.

 

Valuation

We maintain our $34, P/E- and DCF-based 12-month price target.

 

Key risks

Upside/downside risks relate to SSS/traffic trends in the coming quarters.

 

 

——

GuestMetrics Releases Restaurant and Bar Tender Study: Amex Cardholders spend well ahead of Mastercard/Visa and cash customers

 

Source: GuestMetrics

Jan 22nd

 

According to GuestMetrics, based on its proprietary database of POS transactions of over $8 billion dollars in transactions and over 250 million checks from restaurants and bars across the United States over the past two years, the average check among patrons who pay with American Express at casual and fine dining restaurants is significantly higher than with other payment methods.

 

“In analyzing the different tender types among the casual restaurants in our universe, the average check with MasterCard, Visa and Discover is about 36% below that of American Express, and the average check amount with cash is even lower,” said Bill Pecoriello, CEO of GuestMetrics LLC. “Similarly, in analyzing the tender types among fine dining restaurants in our universe, the difference between American Express and the other credit card types is even greater, at 39%,” continued Pecoriello.  Based on data from GuestMetrics, the average check at casual restaurants when paid with American Express is about $66, versus $44 with Discover, $43 with MasterCard, $39 with Visa, and $20 with cash.  In fine dining restaurants, the average check is $105 when paid with American Express, versus $68 with Discover, $66 with MasterCard, $60 with Visa, and $17 with cash, which are predominantly transactions for drinks from the bar while patrons are waiting to be seated.

 

“To get a sense of the size of the white space opportunity here, about 9% of dollar sales at casual restaurants are paid for with American Express. However, when you factor in the significant difference in check size, American Express only accounts for 5% of total checks in the casual restaurant space,” said Peter Reidhead, VP of Strategy and Insights at GuestMetrics.  “In the fine dining space, the difference is even starker, with American Express representing 26% of all dollar sales, but just 10% of the number of total transactions.”  

 

“While it is true the transaction fee paid by the restaurant operator is higher with American Express than with the other credit card companies, the incremental dollars that can be captured by accepting AmEx could more than justify the added transaction cost,” said Brian Barrett, President of GuestMetrics. “So in the highly competitive restaurant environment where the average consumer is clearly still under economic pressure, restaurants may be able to capture some incremental sales by also accepting American Express as a payment method, if they are not doing so already.”      

 

About GuestMetrics LLC

GuestMetrics, LLC is revolutionizing how the hospitality industry operates.  Despite the dawn of the Digital Age having begun more than three decades ago, the hospitality industry essentially functions the same way it did centuries before.  GuestMetrics has cracked the code by collecting data from tens of thousands of restaurants and turning billions of raw transactions into intelligible data that is fundamentally transforming the business operations of everyone from the independently-owned bar/restaurant on the corner, to multi-national chains, to the food & beverage companies that supply them.  Please visit www.GuestMetrics.com for more information and to arrange for a free demonstration.

 

 

——

Bartenders Are Doing More Than Taking Orders

 

Source: NY Times

By ROBERT SIMONSON

Jan 23rd

 

Around the neck of every bottle from the fledgling spirits outfit the 86 Co. – the gin, the vodka, the tequila, the rum – is a small glass ridge. To the untrained eye, it looks like a packaging flourish. It is not.

 

The ridge is there to make it easier for a bartender to grab the bottle, upend it and pour. It was the suggestion of the Los Angeles mixologist Eric Alperin, one of many bartenders sounded out by Simon Ford, Dushan Zaric and Jason Kosmos before they and two other partners started the liquor line last year.

 

The neck is not the only thing designed to please the men and women behind the bar. The mouth is slightly tapered so speed-pouring spouts don’t slip out when they begin to wear thin. The bottle has liter and ounce measurements on the side, so that once empty, it can be used for other juices and syrups. The spirits themselves were concocted to be affordable yet pass the quality test and be eminently mixable. (While developing the Caña Brava rum in Panama, Mr. Zaric got in the habit of making a daiquiri on the spot with each new sample that came off the still.)

 

“It’s about creating the tools that make our lives better,” he said. By “our” he meant bartenders’ – Mr. Zaric, Mr. Kosmos and Mr. Ford all have backgrounds in bartending.

 

The spirits industry has long marched to the voice of the consumer, but today, as the new cocktail culture turns mixologists into tastemakers, it is starting to heed the bartending elite. Mammoth liquor conglomerates like Bacardi and Pernod Ricard have even collaborated with barkeeps in creating new spirits.

 

“Bartenders are reaching a level of influence that they had pre-Prohibition in how they’re introducing consumers to new and exciting cocktails,” said Giles R. Woodyer, the brand managing director for Bacardi USA. “They’re looking for spirits that add a dimension to the cocktails they create.”

 

One of the top concerns of bartenders is that spirits mix well in cocktails; not all do. “Most people these days make a good spirit, but they make it for sipping,” Mr. Ford said. “They never consider how it’s being used. That was the key thing for us.”

 

The big liquor companies were not always so receptive. Long before he helped start the 86 Co., Mr. Zaric said, companies sometimes invited him to offer feedback on spirits. “They were looking for our expertise and how bartenders will perceive it,” he recalled. “But at the end of the day, our recommendations were not taken seriously. They paid us lip service. The marketing agency already had a direction, and they hired you to verify it.”

 

The last few years have brought a change. Mr. Ford, who used to work for Pernod Ricard, took particular inspiration from the company’s creation of Beefeater 24. Introduced in 2009, the gin is a rare line extension for the classic Beefeater brand. (Its botanicals include Chinese green tea and Japanese Sencha tea.) It was the brainchild of Beefeater’s master distiller, Desmond Payne, with some help from a small group of industry professionals, including Audrey Saunders, the mixologist and founder of Pegu Club in SoHo.

 

“As a very big fan of Beefeater for many years, it was quite an honor for me to be invited to the table,” Ms. Saunders said. “Desmond wasn’t so much seeking help on the structure of the actual distillate as he was looking for feedback with regards to the mixing potential of it.” In one instance, it was suggested that Mr. Payne slightly reduce the tea botanicals, so that the gin would shine better in cocktails. “We also had input on bottle design,” she said.

 

When Bombay Sapphire decided to make the new variety that became Bombay Sapphire East, flavored partly with Asian botanicals, it turned to a few stars in the food and drink worlds, including the well-known San Francisco-based mixologist Duggan McDonnell, who also helped develop the pisco brand Campo de Encanto. “My feedback on East,” he said, “was always one of making sure every step we took brought us closer to something my colleagues behind the stick would embrace.”

 

“Gin is primarily consumed via cocktails – not shots or on the rocks – and so every gin has to do well in the tin,” he added, referring to the cocktail shaker.

 

The interaction of large liquor concerns and idealistic mixologists is not without its bumps. The renowned London barman Nick Strangeway was asked by Pernod Ricard to create a series of bartender-friendly Absolut vodkas. He experimented for months with myriad infusions, often using expensive and hard-to-get ingredients, tasting and blending them until he came up with a number of potions that met his standards. But when Absolut tried to produce his creations on a large scale, the results sometimes fell short of the mark.

 

“I was fairly naïve about how the big company works,” Mr. Strangeway said, “and they were naïve about how exacting I would be.” In his contract, he had veto rights. “Making 5 liters is easy, and making 500 isn’t fairly hard,” he said. “But making 3,000 is different.”

 

The first in the Absolut Craft series, called Herbaceous Lemon, will be sold on allocation and made available only to bartenders. Mr. Strangeway thinks of the experiment as taking the familiar Absolut brand “and giving it back to the bartender.” (Pernod also worked with two London bartenders on its Olmeca Altos tequila brand, which was released in 2010.)

 

“All the big brands have to pay attention to the bartenders now,” Mr. Strangeway said. “It’s a massive industry. Bartenders make the sale for you.”

 

 

——

Snow brings less cheer to Marston’s

 

Source: FT

By Christopher Thompson

Jan 22nd

 

New year snowfall weighed on Marston’s sales growth as bad weather deterred pubgoers in mid-January.

 

The pub company and brewer, whose 2,150 pubs are mostly tenanted, said like-for-like sales at its 500 managed pubs grew 1.2 per cent in the 16 weeks to January 19, a slower rate than the 5 per cent achieved in 2011.

 

Excluding the final week of the period, food sales at managed pubs, whose total takings account for about half of Marston’s pre-tax profits, grew 3.5 per cent compared with a 1 per cent increase in like-for-like drinks growth.

 

Ralph Findlay, Marston’s chief executive, said the impact of the cold weather was unsurprising.

 

“It’s important to draw a distinction up until it snowed, when trading was encouraging. It’s no surprise people don’t like going out when it’s difficult to walk or drive,” he said. “Our primary growth drivers [in 2013] will come from the 25 new pub-restaurants and more franchisees.”

 

Marston’s – whose share price has risen 40 per cent over the past 12 months – said that while operating margins were “slightly ahead” of last year during the period, they would be challenged by higher food and utility costs.

 

“I think we’ll be able to broadly hold our margins with relatively small price increases,” said Mr Findlay.

 

Profits at the company’s tenanted and franchise pubs grew by 2 per cent year on year, reflecting a particularly robust performance from its 550-strong franchised estate. Mr Findlay said he hopes to have 600 franchised pubs – in which Marston’s determines the beer, food and decor, while the licensee earns a percentage of sales – by the end of the year.

 

Meanwhile, brisk business in off-licences and supermarkets helped buoy the company’s own-brewed beer volumes, which include Hobgoblin and Marston’s Pedigree, which grew by 5 per cent year on year.

 

Patrick Coffey, an analyst at Liberum, said Marston’s would see like-for-like sales growth pick up in the second half of the financial year, but not enough to change year-end profit forecasts.

 

“Marston’s shares have had a very good run and I do not see any catalyst to drive the share price over the next six months,” he said. “The last week of trading was weak because of snow but, fundamentally, I like their management and their new-build strategy, which focuses on growth in food sales.”

 

Marston’s shares fell 1.1 per cent to 132.7p.

 

 

——

Washington: Wash. looks to build strict controls for marijuana

 

Source: KTVB

by Associated Press

Jan 22nd

 

Washington voters passed I-502 in the November 2012 general election. The law legalizing marijuana possession in the state, even though federal law still proscribes its sale and use.

 

Washington state officials are looking to build a strictly regulated marijuana system that could forestall federal concerns about how the drug will be handled once it’s available for public purchase.

 

Rick Garza of the Washington Liquor Control Board said Monday he expects the federal government will try and take action if Washington’s system has loose controls. He says it’s important for Washington to have a strong regulatory structure that would limit how much marijuana is grown to ensure that it’s only meeting demand for in-state users.

 

Garza’s comments came a day before Gov. Jay Inslee was set to meet with the federal Department of Justice to discuss the marijuana law. Washington voters approved the marijuana law in November, but DOJ officials have not indicated whether it will allow Washington and Colorado to create legal marijuana markets, since the drug is illegal under federal law.

Liquor Industry News 1-22-13

January 22, 2013
www.franklinliquors.com

Franklin Liquors

 

Oligarch Swoops For Vodka Giant

 

A Russian billionaire-backed fund is in exclusive talks to buy Poland’s top spirits firm for nearly £600m, Sky News understands.

 

Source: SKY News

By Mark Kleinman, City Editor

21 January 2013

 

A fund backed by one of the Russian businessmen who netted billions of dollars from the sale of a joint venture with BP is in talks to buy the biggest spirits producer in Central and Eastern Europe.

 

I have learnt that Pamplona Capital Management is close to a 700m euro (£587m) takeover of Stock Spirits Group, which owns some of the most popular vodka and other spirits brands in the world.

 

Pamplona is backed by Alfa Group, a company headed by Mikhail Fridman and one of the members of the AAR alliance which last year agreed to end its conflict-plagued joint venture with BP in Russia by selling out to Rosneft, the Kremlin-controlled energy giant. The deal netted Mr Fridman and his partners at least $7bn each, cementing their status among the world’s wealthiest individuals.

 

People close to the talks said Pamplona had secured a period of exclusivity to finalise a deal with Oaktree, and that an agreement could be reached within weeks.

 

Goldman Sachs, the Wall Street bank, is among the lenders understood to be financing the deal for Pamplona, with a number of other banks lining up for a role.

 

Stock, which is based in Britain, has been owned by Oaktree Capital Management, another investment firm, since 2007.

 

The company traces its roots back to the Austro-Hungarian empire of the late nineteenth century, and now claims to be the biggest spirits producer by volume in the Czech Republic and Poland. It is also a major player in markets such as Croatia, Italy, Slovakia and Slovenia.

 

Among its major brands are Stock 84 brandy, Fernet Stock bitter as well as vodkas such as Wodka Zoladkowa and Orzel. Some of the products are distributed in the UK through big supermarkets although Britain accounts for a tiny proportion of the company’s sales.

 

Stock is chaired by Jack Keenan, a former executive at Diageo, and run by Chris Heath, the former chief financial officer of Gondola Holdings, the parent company of restaurant chains including Pizza Express, ASK and Zizzi.

 

People close to the situation said it was likely that Stock’s management team would continue to run the business under Pamplona’s ownership if the takeover is completed.

 

The talks with Pamplona represent at least the second attempt by Oaktree to sell Stock. In 2011, it examined a stock market listing of the company, following which Diageo expressed an interest in buying it.

 

Those talks came to nothing, although it is conceivable that Diageo or another of the major spirits producers will return in future with an offer to buy Stock as they attempt to broaden their exposure to major spirits markets in the region.

 

Pamplona invests funds across Europe and has tried to buy a string of assets in the UK, including an aborted attempt to acquire the snacks arm of United Biscuits late last year.

 

It owns Oakwood Global Finance, which comprises two portfolios of residential mortgages, and KCA Deutag, a provider of drilling and engineering services to the oil and gas industry.

 

Oaktree and Pamplona both declined to comment on Monday.

 

 

——

Thai Tycoon Wins Battle for Fraser & Neave

 

Source: WSJ

By P.R. VENKAT and CHUN HAN WONG

Jan 21st

 

Thai tycoon Charoen Sirivadhanabhakdi is poised to win control of Singaporean conglomerate Fraser & Neave Ltd. F99.SG -1.95% after rival bidders led by Indonesia’s Riady family backed down on Monday, ending a monthslong stalemate in one of Southeast Asia’s largest-ever takeover battles.

 

Mr. Charoen, a Thai billionaire who controls 40.6% of Fraser & Neave, is now the sole bidder for control of the 130-year-old company, which has interests in property, publishing and food and beverages. He would pay 8.2 billion Singapore dollars (US$6.68 billion) for the remainder of the company, based on his latest offer and stake.

 

Mr. Charoen’s offer of S$9.55 a share-made through his unlisted vehicle TCC Assets-values Fraser & Neave at US$11.2 billion. It is conditional upon acquiring more than 50% of the company by Feb 4. He made his current offer Friday, raising an earlier bid of S$8.88 a share.

 

Fraser & Neave’s independent directors will “evaluate TCC’s revised offer and make their recommendations to shareholders in due course,” a company spokeswoman said Monday.

 

In a filing to the Singapore Exchange Monday, the Riady-controlled Overseas Union Enterprise Ltd. LJ3.SG +4.38% said it and its partners had decided not to raise their US$10.6 billion offer because a successful takeover would have come with an “unattractive” price tag. The Overseas Union-led consortium’s offer of S$9.08 a share lapsed Monday.

 

The battle for Fraser & Neave began in July last year, a big year for mergers and acquisitions in Southeast Asia, where deal-making reached its highest level since the global financial crisis. The takeover bids also illustrated two important trends-the impact and allure of Southeast Asia’s booming economies and the move beyond their home markets of some of the region’s largest, most powerful companies-and the billionaire families behind them.

 

Mr. Charoen’s companies make Chang beer and have interests in property and soft drinks. The Riady family controls the Lippo Group, one of Indonesia’s most powerful conglomerates, with interests in real estate, publishing and banking.

 

Fraser & Neave develops residential and commercial properties in Singapore and other Asian markets, and produces dairy products and sports drinks such as 100Plus.

 

The company has been in play since Mr. Charoen first began buying into it in July. This prompted Dutch brewer Heineken to buy out its 81-year-old beer-brewing joint venture with Fraser & Neave for US$4.6 billion in September and put the rest of the conglomerate’s remaining assets in play.

 

Mr. Charoen made his first bid for the whole of Fraser & Neave in September, offering US$7.2 billion to buy the shares he didn’t own.

 

The Overseas Union consortium followed with a US$10.6 billion offer in November. Overseas Union was backed by Japanese brewer Kirin Holdings Co. 2503.TO +3.15% -Fraser & Neave’s second-largest shareholder with a 14.8% stake.

 

Kirin planned to acquire Fraser & Neave’s food-and-beverage business if the takeover succeeded.

 

It wasn’t clear on Monday how Kirin would respond to Overseas Union’s failed bid. A Singapore-based public relations executive representing Kirin declined to comment.

 

The prospect of a bidding war had propelled Fraser & Neave’s share price to record highs above existing bids, but both bidders spent months extending offers the company described as fair but not “compelling.” Mr. Charoen had extended his original S$8.88-a-share offer seven times since September, while Overseas Union extended its initial S$9.08-a-share bid twice since November.

 

Fraser & Neave’s board noted that both offers were at the lower end of a valuation of between S$8.58 and S$11.56 a share made by its independent financial adviser, J.P. Morgan Chase JPM +0.04% & Co.

 

Last week, Singapore’s Securities Industry Council stepped in. Citing shareholders’ need for certainty, the SIC set a deadline of last Sunday for the bidders to table their final offers or submit to an auction. Mr. Charoen responded Friday with the revised offer, and bought about 93.03 million shares-or 6.46% of the company-on Friday and Saturday at S$9.55 apiece.

 

Mr. Charoen’s new offer marked a 7.5% increase from his earlier bid, but is nearly 2% lower than Fraser & Neave’s last closing price Monday of S$9.74 a share.

 

This forced Overseas Union to submit a better bid by Monday or withdraw from the battle.

 

In its statement Monday, Overseas Union cited the Singapore government’s latest aggressive property market curbs, introduced this month, as a factor in its decision not to raise its bid. Those measures were aimed at reining in soaring housing costs by discouraging investment demand. Analysts described them as the city-state’s toughest in over three years.

 

 

——

SABMiller Flags Weak Chinese Demand

 

Source: WSJ

By SIMON ZEKARIA

Jan 22nd

 

SABMiller SAB.LN +0.62% PLC on Tuesday said it was hit by a drop in Chinese demand in the third quarter, as the brewing giant recorded a slowdown in global volume growth.

 

The London-listed company, whose lager brands include Peroni Nastro Azzuro and Castle, said beer volumes for the third quarter rose 2% before acquisitions and disposals, representing a slowdown from the 3% growth rate recorded a year earlier and 4% posted in the first half. Soft drinks volumes increased 3%.

 

But volumes in Asia-Pacific, excluding Australia, fell 1%, weighed down by subdued demand in China, where volumes fell 3%, “due mainly to an exceptionally cold and wet winter across the country.” This compares with 7% volume growth in Asia-Pacific a year earlier.

 

Still, the Australian business, which had been under scrutiny following the company’s $10 billion acquisition of Foster’s in 2011, started to improve, with sales for the quarter down 4% on a comparative basis, compared with a 8% decline in the previous six months. Flagship brand Victoria Bitter grew 2%-its first quarter of growth for more than 10 years-and SABMiller said the integration program in Australia is ahead of schedule.

 

The world’s No. 2 brewer, behind Anheuser-Busch InBev NV, ABI.BT +0.18% pushed through price increases in some regions, which boosted revenue per hectoliter 5%. Revenue rose 8% in the quarter, before acquisitions and disposals and at constant currencies.

 

Latin America, the brewing group’s biggest region, saw beer volume growth recover to 6%, up from 4% in the first-half, but down from 8% in the same period last year. Volumes in Africa grew 4%, with South African volumes up 3%.

 

European volumes rose only 1%, with some beer markets hit by “depressed consumer confidence”, the company said.

 

In North America, MillerCoors LLC-the joint venture between SABMiller and Molson Coors Brewing Co. TAP +1.43% -said domestic sales to retailers were down 1.1%. Domestic sales to wholesalers fell 1.4%. Still, analysts say U.S. beer demand is showing signs of improvement, supported by rising employment.

 

 

——

Global I/O:  US Spirits Wholesaler Survey

 

Source: UBS
Jan 21st

 

Input: 13th UBS proprietary wholesaler survey

Given that the US is the biggest profit pool for international spirits companies (36% of EBIT), but has low visibility due to the Three Tier System, we publish our 13th US spirits wholesaler survey to provide an independent industry health check.

 

Output: optimism remains, though meaningfully less so than prior quarter

53% of wholesalers surveyed are more optimistic on their business now than three months ago (this marks the lowest level since June 2011), with 24% less optimistic than three months ago (significantly up from 9% in Sept 2012). While there is still a clear expectation for volume growth y/y in the next quarter, conviction levels have moderated. In the on-trade especially, less than half (42%) now see better trends than in the prior quarter. Promotional activity appears to be stable rather than lower y/y, but encouragingly the proportion expecting actual price increases y/y in the next quarter is 58% which is in line with our September 2012 survey.

 

Less certainty for short-term trading

There are signs suggesting that the end of Dec saw weaker trading for US spirits, particularly in the on-trade as fiscal cliff concerns weighed on consumer confidence, and a tough weather comp. There is risk that fiscal cliff concerns continue to weigh until the “sequestration” deadline of 1 March. We nudge down 2012E vol growth from 3.5% to 3.0% to reflect a weaker Dec, and hold price/mix growth at 2.0%. We leave unchanged 2013E at +2% vol and +4.5% value growth.

 

Diageo rating cut from Buy to Neutral; BFB and STZ Buy

We downgrade our Diageo rating in today’s report “Less wind in Diageo’s sails”.

 

Less wind in Diageo’s sails

How much better can it get? We move to Neutral

 

Since mid 2011 Diageo has been re-energised with increased focus on organic top line and operational leverage, as well as using its balance sheet for EM acquisitions. EM exposure is now c40% of EBIT. Diageo’s major market, the US (38% of EBIT) has seen strong spirits vol growth, with a return to headline pricing.

 

We see limited scope for organic upgrades in 2013-14E

We lower FY organic sales and EBIT growth by 30-40bps, forecasting +6.1% and 9.4% respectively. This captures slightly reduced US spirits growth to reflect a short-term weakening in current trading (see lower optimism score in UBS proprietary US Spirits Wholesaler Survey published today). For H1 13FY UBSe organic sales +5.5% and EBIT growth +9.2%. Mid-term, given increased EM weighting, we remain confident that Diageo can deliver close to +7.5% organic sales and over +10% EBIT growth from 2015E onwards (above consensus),

 

M&A options more limited for now

After an intense 2 years of activity, we see less M&A likely in 2013CY, particularly post Cuervo. We are bullish about the USL deal, but it is a slow burn turnaround. We see a low probability of Diageo acquiring Beam, or Moët Hennessy becoming available, short-term. We assume dividend growth picks up modestly to 10% pa.

 

Valuation: Neutral from Buy, new price target 2000p (from 2050p)

We cut 14E px EPS by -3% for (1) the loss of Cuervo distribution, (2) FX. Our new DCF-derived PT implies 13CY P/E of 18x (currently trading on 16.8x), therefore we see some potential for further re-rating, but no longer sufficient upside to justify a Buy.

 

Brown-Forman Cleaning Up Numbers

Lowering Numbers to Reflect Change in Capital Structure

After raising $750m of debt at a blended 2.3% to pay their special dividend, Brown-Forman’s is more levered and has increased repayment responsibilities.  We are adjusting our numbers to capture the interest expense obligation beginning January 1st (1 month of BFB’s FY3Q13 and full 4Q13). The new debt adds $17.5m to annual interest expense. Our FY13 EPSe is now $2.70 (from $2.72) and FY14 $3.10 from $3.16. We are lowering our PT to $71 from $73, while applying the same 23x P/E multiple.  We reiterate our Buy rating.

 

Operational Estimates in the Right Place – No Changes

In our 13th Quarterly US Spirits Wholesaler Survey published today, we highlight decreasing optimism amongst distributors.  We are becoming less optimistic on the category, but expect brown spirits to hold up well in the face of the category growth rates slowing — flavored whiskies, in particular, continue to outperform.

 

Investment Thesis – Just the Beginning

We believe that Brown-Forman is in the early innings of a prolonged trend toward brown spirits.  With balanced growth in the US and abroad, we see Brown-Forman continue to leverage the Jack Daniel’s trademark in a very profitable way.  The Company is experiencing volume growth, positive pricing, and alleviating input costs, as it enters this secular trend.  We expect Brown-Forman to enter a period of multi-year earnings surprises.   

 

Valuation: Reiterate Buy; Price Target $71

Our $71 target is based on 23-times our new FY14e EPS of $3.10.

 

 

——

Majors tighten grip on global spirits sector – research

 

Source: Just-Drinks

By Ben Cooper

21 January 2013

 

The world’s largest spirits groups are continuing to increase their share of the global spirits market, a new report from Euromonitor International has found.

 

According to Euromonitor International’s Passport report, Growth for International Spirits Companies in Difficult Times, the top ten spirits producers increased their share of the global spirits market in 2011 to 26%, driven both by organic growth and acquisition.

 

However, the report states that, while international spirits companies have greater potential to expand, they were seeing “mixed results” in growth terms. Companies performing strongest were those with the broadest geographic and category spread, it says. Moreover, strength in emerging markets was not necessarily key.

 

“Geographic breadth is more important than whether the market is a mature or emerging one,” the report says. “The key element is the remaining potential for growth in a particular market. There are still significant opportunities to grow organically in mature and emerging markets.”

 

While the top ten have been pulling away from the pack, the report notes that the gap between the two largest players – Diageo and Pernod Ricard – and the others has also increased. It also notes that a new period of consolidation is beginning in the spirits sector.

 

In particular, Beam Inc is “vulnerable to takeover”, with Pernod Ricard having most to gain from a move for the company, due to its relative weakness in North America and the fact that it would have fewer competition issues than Diageo in making such a move.

 

“Beam is likely to be the next big company that loses its independence,” the report notes. “The company is publicly listed and, more importantly, is weakly positioned both in terms of geographic spread, as 86% of its volumes are sold in mature markets, and brand portfolio.”

 

 

——

Beam to sell several cheaper brands for $65M

 

Source: Chicago Tribune

By Samantha Bomkamp

January 21, 2013

 

Beam Inc., which makes Jim Beam and Maker’s Mark bourbon, said Monday it has agreed to sell several of its lesser-known brands to Luxco Inc. for a combined $65 million.

 

The brands include Calvert, Bellows, Wolfschmidt vodka, Dark Eyes vodka, Canada House Canadian, and Tempo Triple Sec. The Calvert brand includes Lord Calvert Canadian, Calvert Extra and gin, while Bellows’ line incorporates blended whiskey, Bourbon, gin, rum, Scotch and vodka.

 

They are all distributed in the U.S. and posted revenue last year of about $30 million on sales of 1.8 million cases.

 

Deerfield-based Beam said the sale of these cheaper brands will allow it to streamline its offerings and focus on the brands it has acquired over the last two years, including Pinnacle Vodka, Calico Jack rum and Skinnygirl Cocktails.

 

The deal is expected to close by the end of the month, but Beam will continue to make and bottle the brands through at least next year.

 

Luxco is based in St. Louis.

 

 

——

GuestMetrics Releases Data on 2012 On-Premise Wine Trends: Consumers trade down from bottles to glasses

 

Source: GuestMetrics

Jan 21st

 

On-premise wine consumers traded down from bottles to glasses in 2012, with Sauvignon Blanc and Pinot Noir gaining share at the expense of Chardonnay and Cabernet Sauvignon.

 

According to GuestMetrics, based on its proprietary database of POS transactions of over $8 billion dollars in transactions and over 250 million checks from restaurants and bars across the United States over the past two years, there was a dramatic change in consumption of wine in on-premise during 2012, with a large shift in consumption from bottles to glasses.  

 

“Comparing 2012 against 2011, we see that the number of wine bottles ordered in restaurants and bars declined 13%, while the number of wine glasses increased by 4%.” said Bill Pecoriello, CEO of GuestMetrics LLC. “Given the large difference between the price, with the average bottle costing over $43 and the average glass costing $9.60, we believe this shift was driven by a consumer base that is still feeling pressure from a sluggish economic recovery, not to mention the unusually high level of uncertainty towards the end of the year with specter of the fiscal cliff.”  In total for 2012, wine by the bottle represented 13% of wine items ordered (vs. wine by the glass which represented 87% of wine orders), but given the significant difference in pricing, wine by the bottle accounted for 41% of total wine sales (vs. 59% for wine by the glass).

 

“Based on this large difference in performance between wine by the glass versus wine by the bottle, wine by the glass gained 220 basis of share of the wine category in 2012,” said Peter Reidhead, VP of Strategy and Insights at GuestMetrics.  “Furthermore, looking at the drivers of sales in more detail, we see that the price of the average bottle of wine sold increased by 9% versus the more modest price increase of 3% for wine by the glass, which may have been part of the exodus from wine by the bottle during 2012.”  

 

“In terms of varietals, there were also some noteworthy shifts in the wine category in 2012,” said Brian Barrett, President of GuestMetrics. “The varietals that gained the most share of the wine category were Sauvignon Blanc, Pinot Noir, and Malbec, while at the other end of the spectrum, the varietals that lost the greatest share of the category relative to 2011 were Chardonnay, Cabernet Sauvignon, Merlot, and Pinot Grigio. Despite the loss in share for those varietals they still held the top spots for 2012.  The top 5 varietals for 2012  were Cabernet Sauvignon, Chardonnay, Pinot Grigio, Merlot and Sauvignon Blanc.  In our minds, this underscores the importance of restaurateurs as well as suppliers having an up-to-date understanding of the constantly shifting tastes of the consumer, in order to make sure their menus and brand portfolios best meet those changing demands.”      

 

About GuestMetrics LLC

GuestMetrics, LLC is revolutionizing how the hospitality industry operates.  Despite the dawn of the Digital Age having begun more than three decades ago, the hospitality industry essentially functions the same way it did centuries before.  GuestMetrics has cracked the code by collecting data from tens of thousands of restaurants and turning billions of raw transactions into intelligible data that is fundamentally transforming the business operations of everyone from the independently-owned bar/restaurant on the corner, to multi-national chains, to the food & beverage companies that supply them.  Please visit www.GuestMetrics.com for more information and to arrange for a free demonstration.

 

 

——

Ardagh thinks it has the bottle for IPO

 

Source: FT

By Jamie Smyth in Dublin

Jan 21st

 

Irish glass bottle maker Ardagh was a habitually underperforming minnow on the Irish Stock Exchange with just I£40m annual revenues when Paul Coulson became chairman in 1998.

 

Fifteen years later, the former accountant nicknamed “The Cooler” is on the brink of transforming it into the world’s second-biggest glass bottle company with ambitious plans for an initial public offering in the US.

 

Last week Mr Coulson, who owns 36 per cent of the company, announced Ardagh’s third year of billion-dollar acquisitions in the past four years, agreeing a $1.7bn deal with Compagnie de Saint-Gobain to buy its Verallia North America unit.

 

If the acquisition clears regulatory approval, Ardagh’s sales would expand to ?5.3bn, up from annualised sales of ?4.1bn to the end of September 2012. Ardagh had annualised earnings worth ?682m to end-September 2012, according to the company.

 

“It is a transformational deal because it will make Ardagh the largest glassmaker in the US as long as it gets antitrust approval from the US authorities,” says Chip Dillon, a partner at Vertical Research Partners, an independent equity research firm in the US.

 

“Ardagh has done an incredible job of growing during a tough time for the glass sector,” says Mr Dillon.

 

Ardagh was originally a glass bottle maker with operations limited to Ireland and the UK. Mr Coulson has broadened the company’s geographical reach by making a string of acquisitions in the UK, northern Europe and the US. He has also diversified the company’s product line by purchasing Impress Group for ?1.7bn in 2010, which specialises in metal container products. Its $880m takeover of Anchor Glass in July 2012 boosted its workforce to 18,000 across 100 facilities. Sales are now evenly split between its glass and metal divisions.

 

The company operates mainly in the relatively stable food and drink sectors, supplying bottles, drink cans, food tins and a range of other container products. It counts Coca-Cola, Jim Beam, Heineken, John West, AB InBev and Procter & Gamble among its clients.

 

Buying Verallia North America would give it a presence in the US wine market for the first time and enable it to leapfrog its rival, Owens-Illinois, as the largest producer of glass bottles in the US.

 

Ardagh’s rapid growth owes a lot to Mr Coulson’s success at raising money even when debt markets are tough. The company had financed 10 acquisitions by raising ?3.5bn debt even before last week’s proposed takeover of Verallia North America. Investor demand remains strong and last week Ardagh raised a further $1.52bn from international bond markets to fund its latest deal.

 

Credit rating agency Moody’s maintained its B2 rating on Ardagh’s debt following the Verallia North America acquisition. It said the deal had “compelling strategic rationale”, though it valued Verallia at 6.3 times earnings, which was “somewhat above recent transactions in the sector”. It also cautioned about potential integration risks as the company pursues $70m annual savings from synergies by 2016.

 

“Coulson is not afraid of leverage and has used the company’s balance sheet well to scale up quickly,” says one Dublin-based financier, who did not want to be named. “He is clearly now in the big league,” he said.

 

Some in Dublin draw comparisons with that other Irish packaging mogul Michael Smurfit, who grew the Jefferson Smurfit Group into Ireland’s first genuine multinational. But Mr Coulson has adopted a significantly lower public profile than the cardboard box tycoon.

 

People who know him say he is hugely tenacious and has great foresight. Mr Coulson is credited with pulling off what many consider to be the “deal of the Celtic Tiger” when he organised the controversial sale of Ardagh’s former glass bottle site in Dublin for ?412m close to the peak of the property market. The site is now worth a fraction of the price paid by a consortium of property developers.

 

At investor road shows last week Ardagh management said they plan to float the company in the US, possibly as early as the fourth quarter if market conditions stabilise. If Mr Coulson manages to pull it off he will be one of the few Irish success stories to emerge from the country’s traumatic economic crash.

 

 

——

Craft beer keeps growing, led by Boston Beer, Sierra Nevada

 

Source: LA Times

By Tiffany Hsu

January 21, 2013

 

The craft beer revolution kept charging ahead in 2012, when 12% more barrels were shipped than the year before, the sixth straight year of growth.

 

Of 27 major craft brewers – all of which saw some gain – 16 had double digit increases, according to industry research group Beer Marketer’s Insights’ Craft Brew News publication.

 

In all, the craft beer industry enjoyed a 1.5 million barrel boost to 13.7 million barrels total.

 

Samuel Adams Boston Lager maker Boston Beer led the segment, with craft beer shipments rising as much as 3% to nearly 2.2 million barrels. But the company’s share of the industry has slid to 15.7% from 21% in 2008, according to the report.

 

Sierra Nevada, a brewer based in Chico, is the second largest in the sector. It’s 12.6% shipping gain to 966,000 barrels was its best advancement in more than a decade.

 

Petaluma brewer Lagunitas Brewing had a blockbuster year, with shipments booming 46% to 235,000 barrels. The company – which makes labels such as Hop Stoopid Ale and Little Sumpin’ Sumpin’ Ale, has more than quintupled its shipments in five years.

 

Unlike the general beer industry, where Anheuser-Busch and MillerCoors control some 80% of business, craft beer operators exist in more of a diaspora. More than three-quarters of the craft beer segment is split among 2,000 smaller rivals.

 

 

——

Serbian brandy distillery closes operation

 

Source: DBR

22 January 2013

 

Navip, the oldest Serbian plum brandy producer, has closed production at its distillery after 84 years.

 

Built in 1929, the distillery produced Serbian Slivovitz plum brandy such as Navip Slivovitz, Navip Slivovitz 8yo, Navip Slivovitz 5yo, Bardaklija, Beogradska Slivovitz and others, reported b92.net.

 

The distillery manager Miroljub Spasojevic was quoted by the website as saying that the distillery had to stop production of brandy even though it had contracts to export around 80,000 to 100,000 bottles.

 

In the last forty years, the distillery exported brandy to the rest of Europe, the US and Canada. The Zemun-based Navip’s distillery exported 1.6 million bottles in the decade before economic sanctions were imposed against Serbia.

 

However, as the bankruptcy procedure was launched last year, it meant end to the production at the distillery.

 

Spasojevic stated that despite sufffering the latest setbacks, the distillery has plans, buyers and technology to overcome problems in order to start production again.

 

 

——

Deep discounts drive Champagne sales

 

Source: the drinks business

by Patrick Schmitt

21st January, 2013

 

Deep discounting over the Christmas period in the UK and France has led to Champagne volume growth in the major multiples but also one bankrupt supplier.

 

Asda sold almost 250,000 bottles of £10 Champagne in the last week of December

 

Retailers in Champagne’s two largest markets employed aggressive price cutting tactics to entice shoppers during December, while suppliers of inexpensive supermarket labels struggled to make money as they attempted to absorb the increasing cost of grapes.

The latest figures to be released in the UK show that supermarket chain Asda achieved a 25% increase in Champagne sales over December from an aggressive deal on its exclusive label Pierre Darcys.

 

Having slashed its price from £23.98 to just below £10 a bottle, the supermarket reported sales of almost 250,000 bottles in a single week in the run up to New Year’s Eve.

 

Overall Champagne sales at Asda were up 17% in 2012 compared to the previous year, increasing the retailer’s share of the Champagne market by 1.7%.

 

Certainly the supermarket’s Christmas Champagne deal was the most aggressive year-end offer in the UK market, with the next cheapest bottle available at Tesco, where De Vallois had its price cut from £28.99 to £14.49.

 

Nevertheless, Morrisons had previously offered the deepest discount, having cut the price of its Hubert Marie Champagne from £28.99 to £10 for one week only until Sunday 2 December 2012.

 

For suppliers however, rising grape costs in Champagne are making it increasingly difficult to provide Champagne at such low prices.

 

Indeed, as previously reported by the drinks business, one supplier of several exclusive Champagne labels, Pressoirs de France, has gone into administration, unable to make a profit on bottles sold for as little as ?8 a bottle.

 

Although UK retailers were certainly aggressive in their Christmas Champagne deals, the discounts were deepest across the Channel in the French supermarkets.

 

Leclerc sold Champagne in a half price loyalty card deal which allowed shoppers to effectively buy a bottle for ?5.45

 

Retailer Leclerc was even selling Champagne in a half price loyalty card deal which allowed shoppers to effectively buy a bottle for ?5.45 (?10.90 would buy them a bottle of Champagne and a ?5.45 voucher to spend on food in-store the following day).

 

The Champagne for this offer, the Laurence D label, was supplied by Nicolas Dubois of the now bankrupt Pressoirs de France.

 

However, Asda’s Pierre Darcys label was supplied by cooperative Union Vinicole des Coteaux de Bethon (UVCB), which is also producer of the Paul Laurent brand.

 

Despite the depth of the Champagne discount at Asda, sparkling wines outsold Champagne at the retailer, with Cava and Prosecco spearheading volume growth.

 

Together, Champagne and sparkling wine enjoyed 28% year on year sales increase at the supermarket in 2012.

 

 

——

Putting some fizz into the wine market

 

Source: Industry Updates

Jan 21st

 

When talking about Bordeaux, many Chinese people know it is the most famous luxury wine production and trading base in France. However, when talking about the Champagne region in France, many are unaware that it is the only production region for champagne in the world and its name has been legally protected to prevent other producers of fizzy wine from trading on it.

 

In China, the red wine market is booming and owning expensive wine is becoming a symbol of good fortune and social status. However, champagne – a unique sparkling wine associated with luxury and power over the centuries – has yet to receive widespread recognition and acceptance by the Chinese.

 

“Compared with red wine, the acceptance of champagne is still limited,” said Wang Wei , director of the Comit Interprofessionnel du Vin de Champagne (CIVC) in China. CIVC is the trade organization of champagne in France that oversees the global champagne market. One of CIVC’s missions in China is to promote champagne and tell the story behind it to the Chinese.

 

Currently, the annual output of champagne is about 300 million bottles, of which 150 million bottles are sold globally. Only 1.3 million bottles of champagne were sold in China in 2011, an increase from the 300,000 sold in 2006. Wang said about half the demand for the drink came from Shanghai.

 

Officially introduced to the Chinese market in 2006, the demand for champagne is increasing gradually. However, market awareness is far below red wine. Most Chinese know Lafite is one of the most expensive red wines in the world but not many people can name the best champagne in the world.

 

Figures from consulting firm Euromonitor show that a total of 1.3 billion liters of red wine were consumed in China in 2011. In comparison, champagne consumption was only 900,000 liters in 2011.

 

In recent years, champagne has been increasingly seen at weddings and celebration parties in China. However, in many cases, newlywed couples only pour champagne down an ornate arrangement of glasses for a photo but do not drink it.

 

“The taste is light and a little bit strange. I think many guests, especially elderly people do not like that cold wine with bubbles,” said Liu Hui, a white-collar worker in Shanghai whose wedding ceremony was in September 2012.

 

“In Western countries, champagne is consumed before meals. However, in China, on the rare occasions champagne is needed, most is drunk in bars and clubs,” said Wang.

 

Many Chinese people believe champagne was developed for ladies and is not suitable for business banquets, he added.

 

Wang said the different qualities of different types of champagne mean traders can take different approaches to explore the market.

 

“Compared with the massive trading model employed by red wine traders, champagne producers and traders want to maintain the premium nature of the wine,” said Wang. “The price of red wine can fall extremely low. However, the price of champagne will have a bottom line.”

 

In an ordinary store in China, the cheapest champagne is around 500 yuan ($80.26) per bottle. The price will be much higher in bars and clubs.

 

Wine market experts said the special taste of champagne is a factor that makes it less popular in China than red wine.

 

“Chinese people do not like the acidic taste of champagne. They also do not like wine with bubbles in it,” said Vance Yang, champagne master with Le Sun Chine in Shanghai.

 

Federico Tabja, Chile’s trade commissioner, who saw red wine exports from Chile increase 19.6 percent to 1.38 million cases (9 liters per case) in the first eight months of 2012, said Chinese people do not like drinking cold beverages. And the strong, fruity taste of champagne is relatively strange for Chinese customers.

 

Meanwhile, the relatively mature red wine market encourages Chinese people to choose something they are more familiar with.

 

“Red wine entered the Chinese market early and people are more familiar with it. Drinking red wine is trendy nowadays,” Tabja said.

 

A market insider said one way to make the taste more acceptable is to add syrup to champagne to lower the acidity, which is providing big business opportunities to syrup providers including France-based premium syrup maker Monin.

 

Despite the champagne business currently being small compared with other imported alcoholic drink businesses, insiders believe the market will get mature.

 

“We have seen significant growth in the champagne market in the past six years and we have high expectations for the market. We want demand in the Chinese market to be as high as it is in Japan,” said Wang. Japan is the largest champagne market in Asia.

 

 

——

Sydney launches first ‘natural’ wine fair

 

Source: Decanter

by Christina Pickard in Perth

Monday 21 January 2013

 

Sydney’s inaugural ‘natural’ wine fair is already attracting controversy, with one wine writer saying quality winemakers are annoyed by the ‘natural’ label.

 

Rootstock Sydney will offer over 100 wines from more than 30 producers who ‘share common philosophies on viticulture, winemaking and sustainability’, the festival’s website says.

 

The majority of exhibitors are Australian, with a handful from Italy, France, Greece, Slovenia, the US, New Zealand and Spain.

 

Australian wineries include Jauma, Shobbrook, Lucy Margaux and Paxton; Radikon and Giuseppe Rinaldiare coming from Italy, and Milton Vineyards, Pyramid Valley and Rippon from New Zealand. All are available in the UK.

 

Set up by Giorgio De Maria, owner of Sydney wine bar 121 BC, wine writer Mike Bennie, and James Hird, owner of the Wine Library bar, the festival is subtitled the Sustainable and Artisan Wine and Food Festival.

 

‘We don’t feel the need to use the term “natural”‘, Bennie told Decanter.com. ‘We don’t want to be dogmatic. Artisan and sustainable are as indefinable as the term natural, and are certainly bandied about as often, but unfortunately we have no other way of telling the consumer these wines are slightly different, as in handmade with more pastoral origins as opposed to more mechanized industrial farming.’

 

Bennie believes there has been a significant increase in interest in Australia for wines of a more ‘lo-fi’ nature, ‘as consumers move towards more understanding of provenance. A lot of the wines that fall under the “natural” umbrella are celebrated here and seen to be successful.’

 

Bennie also referred to the success of overseas natural wine festivals as a model for Sydney’s. However, while fairs like London’s Real Wine Fair and RAW drew thousands of visitors, they also proved divisive.

 

According to Australian wine journalist Max Allen, this discord exists in Australia too: with the dominance of large-scale producers, smaller independent winemakers already consider themselves ‘natural’ or ‘artisan’.

 

‘In many cases they’re not working that far off “natural” anyway. There is a lot of industrial wine made here, but at the smaller level, most Aussie winemakers are already pretty much doing the right thing. So with “natural” wines coming up as a rebellion, some winemakers feel that perception is unwarranted.

 

‘There are a lot of cranky Aussie winemakers out there who have let “natural” winemakers get under their skin and it’s really annoying them.’

 

Bennie, however, reckons that most consumers are not aware of the conflict, and that even in the trade it is far less pronounced than it is elsewhere in the wine world.

 

‘It’s an in-trade conversation. Certainly there are people who are rightly challenging “natural” wine and what it means. But most Aussies just care if the wine’s good.

 

‘In Australia to draw lines in the sand, as in “us versus them” isn’t our thing. We want an inclusive fair, and the wines are a great talking point in helping communication between producers and the consumer.’

 

Rootstock Sydney takes place on 17 February 2013.

 

 

——

Wine pairing pioneer Shirley Sarvis dies

 

Source: SFGate

Miriam Morgan

January 21, 2013

 

Shirley Sarvis, a San Francisco food writer, cookbook author and pioneer in the art of wine and food matching, died in her sleep at her Russian Hill home Wednesday. She was 77 and had been in poor health for several years.

 

When Ms. Sarvis authored “American Wines and Wine Cooking” with St. Helena wine writer Bob Thompson in 1973, little had been written about how to pair food with wine. Her timing was impeccable – the California wine scene was emerging and few people ventured beyond the standard “white wine with fish, red wine with meat” approach.

 

“She had a really rare palate – out there in the stratosphere – in terms of her ability to taste,” said Annie Somerville, longtime chef of Greens Restaurant in San Francisco. Ms. Sarvis and Chalone Vineyard founder Richard Graff helped pick the wines for the restaurant at a time when “no one knew much about wine with vegetables,” Somerville said.

 

Ms. Sarvis began her food career at Sunset magazine in 1957, moving to the Bay Area after graduating from Kansas State University with a degree in home economics.

 

From Sunset she went on to a long freelance career, writing for magazines including Woman’s Day, Better Homes and Gardens, and Gourmet, and writing several cookbooks, including “Woman’s Day Home Cooking Around the World,” “Best of Scandinavian Cooking” (with Barbara Scott O’Neil) and “Trader Vic’s Helluva Man’s Cookbook” (with Vic Bergeron).

 

“She was very good at interviewing and pulling recipes out of people,” said former Sunset food editor Jerry DiVecchio. “She fell in love with flavors and would pursue them to the nth degree.”

 

Ms. Sarvis took that ability on the road, staging food and wine pairing meals and seminars at Bay Area hotels, restaurants and wineries. “She would serve food with three or four wines and discuss the qualities that made them enhance each other, then let the audience come to their own conclusions,” DiVecchio said.

 

In her later years, she remained an avid supporter of the Bay Area food scene, frequenting restaurants and farmers’ markets as often as possible.

 

Ms. Sarvis was born Feb. 21, 1935, in Norton, Kan., and is survived by three nieces – Joye Lynne Mock, Jeannie Ownes-Arnold and Janet Laird, all of Kansas. Her only sibling, Phyllis Sarvis Smith, died several years ago.

 

A public memorial service is planned for 2 p.m. Feb. 16 at St. Luke’s Episcopal Church, 1755 Clay St. in San Francisco. Donations in her memory can be made to St. Luke’s, Philharmonia Baroque Orchestra ( www.philharmonia.org) or Food Runners ( www.foodrunners.org).

 

 

——

German retailers call on EU to protect ‘Rotspon’

 

Source: Decanter

by Patrick Matthews

Monday 21 January 2013

 

North German bottlers of one of Europe’s oldest – and oddest – wine names are calling on the appellation authorities to beef up its legal protection.

 

There is a mini-boom in so called ‘Rotspon’, a Medieval term describing a French red wine imported in bulk and bottled and aged within the city limits of Hamburg, Lüneberg or Lübeck.

 

The fact that the wine is aged in the damp and cool climate of northern Germany is supposed to give it special qualities and longevity. Napoleon is said to have been impressed with the quality of the wines he found in the region when he marched through in 1806.

 

Now bottlers are at war over who should have the right to put Rotspon on their labels.

 

The Lübecker Rotspon appellation is legally protected, but outside Lübeck the term Rotspon is used on the whim of wine merchants. It is possible to find Austrian Pinot Noir – neither aged in North Germany nor produced in France – on sale as Rotspon.

 

The confusion can even extend to Lübecker Rotspon itself. The appellation is being misused to describe wine that has not been aged within the city limits.

 

Emmanuel Mack of leading Lübecker Rotspon bottler HF von Melle, whose sales of around 200,000 bottles are growing by up to 5% year on year, says some bottlers are ‘jumping on a bandwagon’.

 

Hamburg-based Johannes Kemnitz started bottling Rotspon in 2005 ‘because we liked the history and tradition of Rotspon and thought that this is really a privilege for a city in a region without viticulture’ is calling for EU intervention to protect the wine’s good name.

 

Kemnitz charges the biggest Lübecker Rotspon bottler, Carl Tesdorpf, with bottling French barrel-aged wine on arrival in Germany rather than cellaring it themselves.

 

As part of the Hawesko group, one of Germany’s bigger players in the wine market, says Kemnitz, ‘they seem to have good lawyers who were able to make a case because of vagueness over the legal definition of Rotspon.’

 

Rotspon (which means ‘red wooden stave’), in Mack’s view, should showcase the skill of barrel ageing and bottling wine, and is gratified to find his own sales of around 200,000 bottles growing by up to 5% year on year.

 

For both Mack and Kemnitz the art of Rotspon is to select a French red wine, age it in barrel, and release it at the optimum moment for immediate drinking.

 

Rotspons retail at ?7 to ?20, and are are taken seriously: wines such as HF von Melle’s Lalande-de-Pomerol 2009 beat all French-bottled rivals in a Bordeaux-organised competition. They are popular in Scandinavia and sold all over Germany, but rarely exported to the UK or the US.

 

No one from Tesdorpf was available to comment at the time of going to press.

 

 

——

GLAZER’S, INC. APPOINTS NATIONAL ACCOUNTS DIRECTOR FOR MIDWEST AND SOUTHEAST MARKETS

 

Source: Glazer’s

January 21, 2013

 

Glazer’s today announces that Mitch Rick has been hired as National Accounts Director, managing strategic accounts from Indianapolis to Florida. The On Premise National Accounts Department at Glazer’s continues to expand its coverage by adding this position to the team. Mitch will office in Indianapolis, IN and have responsibilities for regional and national accounts headquartered in OH, IN, KY, TN. In addition, he will cover accounts headquartered in the Southeast U.S. as Glazer’s continues to enhance its presence in this area.

 

In addition to his core responsibilities encompassing all aspects of regional and national account sales, Mitch will also act as a marketing, training and event resource for Glazer’s Midwest states. As such, Mitch will report to Randy Porter, Senior Vice President On Premise National Accounts but will also have cross-functional reporting to Keith Petrauskas, Regional President of Indiana and Ohio.

 

Mitch has been a long time Glazer employee with over 14 years at Union Beverage and Glazer’s in Chicago, and he previously spent 6 years in Glazer’s National Accounts Department.

 

Randy Porter commented, “We are excited to expand the National Account footprint of Glazer’s to effectively cover all of the states in which we operate. Glazer’s has one of the top on premise national account teams in the country and this move helps strengthen our presence by enabling us to call on over 250 chains within and outside of our states.”

 

 

——

Amber Taverns cheers festive tipples

 

Source: FT

By Christopher Thompson

Jan 21st

 

Brisk drinking in the run-up to Christmas lifted sales at Amber Taverns. The privately owned company, which prides itself on running drink-led pubs, said like-for-like sales for December rose 4.4 per cent over the same period in 2011. Total December sales rose by 23 per cent to £3.6m, net of costs, helped by 11 new pub openings during the calendar year.

 

“Once again we have shown the viability and popularity of well-run wet-led pubs,” said Clive Preston, 76, Amber’s chairman and founder. “We will add even more of the same to our existing estate over the year ahead as we continue to progress our strategy of building a quality pub portfolio.”

 

Last October, Amber agreed a £24m loan facility with Lloyds Bank. The company said it planned to spend £6m this year opening 10-12 pubs.

 

Amber, based in Preston, has bought and turned round 82 pubs in northern England and the Midlands since 2005, most of which were boarded up. While listed pub companies such as Greene King and Spirit Pub Co increasingly concentrate on food, Amber’s pubs often offer nothing more to eat than crisps and pork scratchings.

 

In doing so Amber has exploited a market niche that bigger pub companies no longer cater to – the old-fashioned boozer.

 

“Some people say wet-led pubs are a niche market – but it’s a big one,” said Mr Preston. “There’s still a lot of people who want to go into a pub and drink and not necessarily be around people who are eating . the majority are men but we get a lot of women coming in with their husbands.”

 

Instead of using a traditional “tied” tenanted model – where tenants buy their beer and pay rent to a pub company – Amber manages the drinks’ offering in its pubs and then pays the landlord a percentage of the pub’s takings. All Amber’s pubs are freehold.

“It encourages the entrepreneurial spirit – the more they take, the more they earn,” said Mr Preston. “The only costs they have to pay are themselves and the staff who they employ.”

 

Amber outperformed the wider pub industry, which registered a 2.1 per cent increase in like-for-like sales for the six weeks to January 6, according to the Coffer Peach Business Tracker, representing a slightly better festive period than the year before.

 

Much of the industry growth came from new openings and pub chains taking market share from independents.

 

 

——

Georgia: Atlanta’s legislative wish list includes higher alcohol taxes (Excerpt)

 

Source: The Atlanta Journal-Constitution

By Jeremiah McWilliams

Jan 21st

 

The city of Atlanta’s legislative wish-list for the 2013 General Assembly includes changes in state law that would allow the city to increase taxes on alcohol, sell condemned and blighted property to private parties, designate sales tax revenue disbursements by tenths of a cent rather than a full penny, and charge the public school system for the cost of running school board elections.

 

A document obtained by The Atlanta Journal-Constitution shows a wide range of requests, some of which – like the ability to raises taxes on beer, wine and liquor – have been requested before, only to fall short under the Gold Dome.

 

“A lot of this comes down to local control,” said Megan Middleton, Atlanta’s intergovernmental affairs manager. “We’re asking for the authority to make changes. You still would have the local input.”

 

One proposal – such as slicing penny sales taxes into smaller increments of one-tenth of a percent, which could go to different purposes – is similar to those pushed this year by Cobb County.

 

A sales tax levied in Atlanta at a tenth of a percentage point could generate about $11 million or $12 million in revenue per year.

 

After the 2010 legislative session, Atlanta Mayor Kasim Reed met with arts backers, including the Woodruff Arts Center and the Annie E. Casey Foundation, to discuss the merits of a partial penny tax. He now cites Denver’s fractional tax for the arts as a model for Atlanta.

 

“It is getting some momentum,” Middleton said of the fractional sales tax proposal.

 

Yolanda Adrean, who represents northwest Atlanta on the City Council, said the proposal would provide municipalities with much-needed flexibility.

 

“If a penny of tax could be split between more than one priority, it could allow the city to move on some very crucial needs,” Adrean said. “I’m not suggesting that we add a penny of sales tax. In a time where there’s a great deal of sensitivity to how much you’re taxed and where that money goes, this gets everyone focused. There are lots of pressing needs that are not getting funded.”

 

The city plans to ask for a number of other changes to state law, which could give the city flexibility and cash on a number of fronts.

 

The city wants citizen review boards – including the Atlanta Citizen Review Board, which has oversight over the city’s police department – to be exempted from the requirement to release documents under an open records request until all the entities involved have finished their respective investigations.

 

Some of Atlanta’s requests are sure to attract opposition. Proposals to increase alcohol taxes were criticized last year by restaurants and their representatives at the Gold Dome. And this week, open-government advocates criticized the city’s request to create more exemptions to the state’s open records law.

 

“The general rule of the open records law is transparency, and the law discourages any additions like this proposal which would provide further impediments to public access,” said Hollie Manheimer, executive director of the Georgia first Amendment Foundation

 

Atlanta again seeks several tax increases on alcohol. One proposal, a 5 percent excise tax by-the-drink on beer and wine, would raise an estimated $4.5 million every year. The proposal is similar to others that have failed to make headway under the Gold Dome in years past.

 

“What we run into is a lack of action,” said City Councilman Howard Shook of Buckhead. Previous requests for heftier alcohol taxes have generally “arrived dead and stayed that way.”

 

 

——

Texas: Liquor store blues

 

It’s time for the Texas Legislature to allow liquor stores to operate on Sundays.

 

Source: Houston Chronicle

January 18, 2013

 

If you have ever been in the middle of making the perfect Bloody Mary for Sunday brunch only to find that you’re out of vodka, then Texas state Rep. Senfronia Thompson has filed a bill for you – a proposal to let liquor stores operate on Sundays from noon to 10 p.m. The bill, H.B. 421, also expands the legal operating hours on other days so that liquor stores can be open from 9 a.m. to 10 p.m.

 

Beyond making life easier for procrastinating party planners rushing to Spec’s at 8:59 p.m. or teary-eyed Texans fans the past several Sunday afternoons, there is a point at which reasonable regulation of alcohol becomes an unnecessary government intrusion into private business. It makes sense to limit bulk alcohol sales during those late-night hours when drunk drivers pose a serious threat. Banning alcohol sales on Sundays, however, is an outdated remnant of pre-Prohibition blue laws and has little purpose in contemporary pluralistic society.

 

And Texas wouldn’t be the first state to walk back blue laws, with 14 states repealing Sunday liquor bans since 2002. People are coming to the realization that we have liquor laws on the books that just don’t make sense, and it is about time we took them out.

 

As another incentive to change the law, Thompson says that increasing hours should bring in more tax revenue on liquor sales, estimating a $8 to $13 million growth for the state. During tight budgets, anything helps.

 

Not everyone is a fan of the bill, with some surprising opponents. Of all folks, liquor store owners and operators have expressed concern about the additional overhead and cost of staying open for the added time. But this isn’t communist Russia and nobody will force the local vodka depot to adhere to mandatory operating hours or face the gulag. Without compelling arguments otherwise, the key justification behind a store’s hours should be the market. If liquor stores want to stay closed on Sundays then they have that right – Chick-fil-A has operated like that for years.

 

And if there is consumer demand for Sunday liquor stores, we are sure that some enterprising upstart will provide. The Texas Legislature just has to get out of the way and let our liquor flow freely.

 

Liquor Industry News 1-19-13

January 19, 2013
www.franklinliquors.com

Franklin Liquors

 

Pennsylvania: Corbett is thinking big on liquor privatization

Source: Philly.com

Angela Couloumbis

Thursday, January 17, 2013

 It will be big, and it will be bold.

And when it comes to the fight over privatizing Pennsylvania’s state-run liquor stores, Gov. Corbett is sending word that he intends to take no prisoners. The governor is preparing to roll out his much-anticipated plan to sell off the wholesale and retail operations of the Pennsylvania Liquor Control Board, according to several groups with a stake in the liquor market who have met with the administration over the last two weeks to discuss the proposal. All shared details with The Inquirer on the condition that their names not be used so as not to alienate Corbett and his team as they work to complete their privatization plan.

 

Though he has yet to put anything in writing, the governor and his team are sending strong signals that they want the system squarely in private hands, and that they are leaning toward opening up the wine and beer market to grocery stores, convenience stores, restaurants and taverns, and big-box stores.One businessman who met with the governor’s aides described the administration’s tentative plans as “an all-out attack” on the state system that has been in place since Prohibition.Corbett spokesman Kevin Harley said Thursday he would not discuss details of what the administration wants but said a proposal would be revealed soon, likely before the governor’s Feb. 5 presentation of his annual budget.Harley noted that Corbett had long wanted to get the state out of the business of selling alcohol: “The governor is a proponent of bold privatization. That has been his consistent position from day one – and it hasn’t changed.”

 Corbett has said since his 2010 campaign that he sees an inherent conflict in the LCB’s dual mission of both regulating and selling booze. Private industry, he believes, can do the job better, and offer better service and lower prices to consumers.

 But in the last two years he has remained largely quiet as fellow Republicans in the legislature championed privatization ideas. This plan would mark the first time he stakes out a specific stance on the issue. And he is putting his second-in-command, Lt. Gov. Jim Cawley, in charge of the push.

 Auctioning

 Those who have met with Cawley and other administration officials say Corbett envisions auctioning off both the wholesale and retail operations of the LCB, much as House Majority Leader Mike Turzai (R., Allegheny) had proposed last year in a bill that died for lack of support.

 And, like Turzai’s proposal, the governor is looking to incorporate beer into the equation. Those who attended meetings said administration officials wanted to auction off State Stores and offer some of the licenses to beer distributors, who now can sell beer only by the case or the keg. Groceries, too, would be allowed to apply to sell wine and beer, as would convenience stores and big-box stores such as Walmart and Costco.

The numbers

Though the administration did not provide hard and fast numbers, at least two groups were told Corbett is considering allowing for 2,000 retail outlets. As it stands, Pennsylvania has just over 600 wine-and-spirits stores and some 1,200 retail beer distributors. Under the administration’s tentative plan, beer distributors would be the only ones allowed to sell the booze trio: beer, wine, hard liquor. Grocery, convenience, and big-box stores could sell only wine and beer.

A big part of the equation – and one that does not seem to be set in stone yet – is what quantities of beer and wine could be sold.

 One person who met with the governor’s staff, and who also requested anonymity, said he was told the administration was considering allowing beer distributors to sell six-packs of beer, along with cases; grocery stores to sell up to two six-packs; and big-box stores to sell beer by the case.

Matt Brouillette, who heads the Commonwealth Foundation, a free-market think tank in Harrisburg, was among those who met with the administration in recent weeks.

 Brouillette, a staunch supporter of privatization, said Thursday he was hopeful that what Corbett ultimately outlines will be what the public has consistently said it wants: an unapologetically privatized system.

 But he acknowledged it will be a tough sell that will require a tremendous negotiating campaign.

“This is an issue that has defeated many governors in the past,” Brouillette said. “To get it over the goal line will be an incredible policy feat. Despite the public’s belief that this is an easy layup, it will take quite a bit of moving of heaven and earth in the legislature.”

 Mixed metaphors aside, Corbett’s plan is sure to face a fight in the General Assembly, which has been loath to change the system. The typical arc of privatization proposals has been this: A bill is introduced. If sponsors are lucky, they get a hearing. In the meantime, counterproposals are offered. And the issue gets mired in inaction, or other issues are addressed while LCB privatization is pushed to the sidelines until the legislative session ends.

Still, Corbett’s proposal will mark the first time since Republican Tom Ridge that the state’s chief executive has thrown his weight behind privatization. And Corbett will have the public on his side: Poll after poll shows consumers overwhelmingly favor a private system that offers the convenience of buying wine and beer under one roof.

 Opponents – ranging from the LCB clerks’ union and its Democratic allies to socially conservative Republicans who want liquor tightly regulated – counter that privatizing would have dire social and financial consequences.

 Reached for comment Thursday, Wendell W. Young IV, president of the United Food and Commercial Workers Local 1776, which represents 3,000 State Store employees, said he and his members were not among those summoned to the Capitol to hear Corbett’s plans.

 “Some people have worked for the system for two or three decades – and they don’t even talk to us about it?” Young said. “I’d say that is a pretty cold and callous position to take.”

 ——

America’s Beer Distributors Generate 130,000 Direct Jobs, $54 Billion in U.S. Economic Benefits

 Source: NBWA

Jan 17th

 New Study Measures Jobs, Economic Impact and Community Service

 The National Beer Wholesalers Association (NBWA) today released a new economic impact report – America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities – that provides the first-ever comprehensive report on beer distribution companies’ total impact on national and state economies.

 The report, produced by Dr. Bill Latham and Dr. Ken Lewis of the Center for Applied Business & Economic Research at the University of Delaware, provides an in-depth view of beer distributors’ economic contributions by taking into account how beer distributor activities are intertwined with many parts of the economy, especially the personal services sector.  The report also accounts for the amount of resources contributed by beer distributors in supporting community events and local economic development, contributing to charitable causes and promoting responsible alcohol use and adds the impacts of these activities to the usual impacts of distributor operations.

“The beer distribution sector is a hidden gem that has been tremendously undervalued in previous economic reports,” said Dr. Latham.  “Fueling more than 345,000 direct and indirect jobs, beer distributors add $54 billion to the nation’s gross domestic product and offer far reaching benefits to brewers, retailers, consumers and government agencies at all levels.”

 Key findings of the new economic impact study include:

     The beer distribution industry directly employs more than 130,000 people in the United States.

    When the impacts of distributor capital investment and community involvement are considered, the total number of impact jobs exceeds 345,000.

    Beer distributors add $54 billion to the nation’s gross domestic product.

    Beer distributor activities contribute nearly $10.3 billion to the federal, state and local tax bases. This does not include the nearly $11 billion in federal, state and local alcohol excise and consumption taxes.

    The beer distribution industry contributes more than $22 billion in transportation efficiencies for the beer industry each year.

    Beer distributor contributions to local community activities generate $175 million in impacts annually.

“With more than 3,300 independent beer distribution companies directly employing more than 130,000 hardworking men and women in communities across the country, America’s beer distribution industry provides significant economic value,” said NBWA President & CEO Craig Purser.

 “Distributors deliver economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue.  They provide services that improve efficiency for trading partners, especially small brewers and retailers, and they ensure fair prices and a broad selection of products for consumers to enjoy.  This new economic impact report offers a thorough look at many of these previously unreported economic benefits.”

 To view the full report, including state by state data, please visit www.nbwa.org.  Click here to view data on the economic impact of beer distributors on the United States as a whole.

 The National Beer Wholesalers Association (NBWA) represents the interests of America’s 3,300 licensed, independent beer distributor operations in every state, congressional district and media market across the country. Beer distributors are committed to ensuring alcohol is provided safely and responsibly to consumers of legal drinking age through the three-tier, state-based system of alcohol regulation and distribution.  To learn more about America’s beer distributors, visit www.AmericasBeerDistributors.com. For additional updates from NBWA, follow @MrBeerGuy on Twitter and visit www.facebook.com/Mr.BeerGuy.

 ——

Beer Distributors Say Yes To Middlemen

 Source: WSJ

By Joseph B. White

Jan 17th

How can you tell when a particular industry feels threatened? One telltale is when its trade group issues a report promoting how many jobs the industry in question supports.

 The National Beer Wholesalers Association today put out a 125-page report detailing the economic benefits of the current system that governs beer distribution in the United States – a so-callled “three-tier” system developed as part of the legal framework to repeal  Prohibition. (The aim then was to prevent beer brewers and liquor distillers from acquiring too much power over the sale of their wares to consumers.)

 The NBWA report says beer distributors directly employ 130,000 people and generate some $54 billion to the gross domestic product.

 The NBWA study comes less than a month after the Competitive Enterprise Institute, a conservative Washington, D.C. policy shop, launched a broadside against the three-tier system, saying the existence of legally-protected middlemen drives up consumer costs and threatens the vibrancy of the craft beer industry by making it harder for microbrewers to sell their beer directly to bars or retail stores.

 The CEI white paper was in turn a response to a December broadside from the liberal-leaning New America Foundation that called for protection of the three-tier distribution system as a barrier to big brewers’ efforts to establish hegemony over the U.S. beer market. An article in a recent edition of Washington Monthly argued that allowing big beer and liquor producers to control distribution and drive down consumer prices for alcoholic beverages could lead to an increase in excessive drinking.

 Some big beer producers – such as SAB Miller and Anheuser Busch-InBev NV – and some big alcohol retailers such as big-box discounter Costco, have been skirmishing with beer distributors for several years trying to weaken the hold distributors have over the business. InBev executives have suggested in interviews that they’d like to have more control over distribution the better to assure that more Budweiser and other InBev brews are on the shelves at lower costs.

 The jockeying among the interests in the beer supply chain reflects many larger disputes over whether government regulation of commerce protects consumer interests, or the interests of incumbents who profit from the regulatory status quo.

 Fortunately, whether because of the three-tier system or despite it, it’s relatively easy to find a bar in any decent-sized city with a wide choice of flavorful brews that can push aside, if temporarily, worries about how tangled the U.S. economy is in laws designed for another era.

 ——

The CDC Says Women Are Chugging Their Way To Doom; But What Does The Data Say?

 Source: Forbes

Jan 17th

 A new year, a new promise of things getting worse:

“Binge drinking among women and girls is a health problem that is serious but under-recognized, the Centers for Disease Control and Prevention says in a report today,” reported USA Today.

“You might be tempted to think binge drinking is mainly an issue for men, but that’s not the case. So the CDC is putting the spotlight on women’s binge drinking, which it says is both dangerous and overlooked,” reported NPR.

“Previous reports have focused on higher rates of binge drinking among males, but the U.S. Centers for Disease Control and Prevention, in its report, aims to raise awareness of binge drinking among women as a serious problem that’s held steady for more than a decade,” said CNN.

 “Chug! Chug! Chug! Why More Women Are Binge Drinking,” ran the headline in Time.

“Ok, parents of daughters. Time to get worried again,” began a story in the Christian Science Monitor headlined “CDC: Binge drinking among teen girls increasing.”

 Let’s agree that binge drinking is really – really – something girls and women shouldn’t do for short, but especially for long-term, health reasons. It is not a behavior that one can trivialize. But did the media report something that was true?

 First, is binge drinking among girls and women an overlooked issue? Consider the results of a not-terribly deep Google/Factiva survey of news stories specifically focusing on female binge drinking from the past ten years:

 2002: Drinking still on rise at women’s colleges – New York Times

2003: Teenagers on a Binge – New York Times

2004: Wisconsin is ranked worst for binge-drinking women  – Associated Press

2005: Women more affected by binge drinking – New Scientist

2006: More Girls Binge Drinking – Kansas City Star

2007: Rise in alcohol abuse by college women – WebMD

2008: Women Who Binge Drink At Greater Risk Of Unsafe Sex And Sexually Transmitted Disease – Science Daily

2009: Growing Problem: Women Driving Drunk – CBS Early Show

2010: The rise of binge drinking women – Salon

2011: Binge-Drinking Among Women Is Up: Study – Huffington Post

2012: Study: Female college students more likely to binge drink than males – Consumer Affairs

 One could add many more – and you can find the issue discussed in such gender terms before 2002 too. It is certainly true that binge drinking stories in the media in the early 1990s, especially about kids binge drinking did not mention any gender differences, but this may well have been because the surveys didn’t break down such data by sex.

 Second, are more girls and women binge drinking than ever before? If you go to the data that the CDC compiles (and bases its new analysis on), binge drinking among high school-aged girls has been declining; more to the point, if you were to come up with something new to say about this problem it is that the latest data from 2011 shows that high school-aged girls are binge drinking less often than at any point in the last 20 years.

 Had five or more drinks of alcohol in a row within a couple of hours on at least 1 day (during the 30 days before the survey)

 Among Female Students High School Youth Risk Behavior Survey

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

25.9   26.0   28.6   28.6   28.1   26.4   27.5   23.5   24.1   23.4   19.8

 This tracks with the other major survey, Monitoring the Future, which looks at alcohol use and, specifically, binge drinking among eight, 10 and 12th-graders, in terms of having had five plus drinks in a row at least once in the past two weeks. The survey shows a notable decline among 12th graders since the 1970s – where the prevalence of binge drinking had exceeded 40 percent. As the survey added eight and 10th graders in the 1990s, it also shows gradual declines among these groups. It does not disaggregate the grades by sex.

One of the problems assessing longitudinal trends in binge drinking among women is that the CDC didn’t settle on a stable measure as it did with high school students. For 2010, its Behavioral Risk Factor Surveillance System survey showed that the annual prevalence for “women of childbearing age” (those aged 18-44 reporting four or more drinks on one occasion during the previous 30 days) was 15.4 percent.

 In 2012, the CDC aggregated data from 2006 to 2010 to come up with an overall prevalence of 15.0 percent. Unlike the high school survey, the CDC doesn’t provide any easy way to disaggregate this data from year-to-year, in part because the CDC says their data from 2011 isn’t comparable with previous years due to changes in methodology. However, the report for 2011 – the one generating lots of media coverage – found an overall binge drinking prevalence rate of 12.5 percent for women over the age of 18, which suggests a decline. (the prevalence of binge drinking among pregnant women is 1.4 percent, in case you’re wondering).

You’ll also note the problem in the BRFSS defining binge drinking as four or more drinks for women, while the YRBS defines it as five or more drinks.

In sum, the problem of girls and women binge drinking has not been overlooked – at least not by the media over the past decade – while at the same time the problem appears to have declined to the lowest levels in 20 years, at least among high school girls, which is contrary to the message promulgated by the CDC. So, by simply repeating the CDC’s claims, the media coverage is accurate and, well, wrong.

But what’s the harm, you might say, in being wrong if it draws attention to a social problem, which ideally should have a prevalence of zero percent?

Well, for a start, social science research – notably the famous hotel towel study – shows that people are much more likely to behave in socially responsible ways if they know the majority of other people are behaving in socially responsible ways. From the perspective of social norming, it might be far more productive to promote the decreasing popularity of binge drinking as a way of encouraging girls and women not to binge drink.

 If things are getting worse – if more and more people are perceived to be doing the wrong thing – the solution is often more and more regulation. The CDC is closely intertwined with – indeed, it funds – the US Community Preventative Services Task Force, which in turn relies on the CDC for expert guidance on health issues. The Task Force has recommended various policies for restricting alcohol, including limiting sales, limiting privatization of state liquor stores, and increasing taxes. And the CDC’s report, in turn, cites the recommendations of the Task Force as a way to reduce binge drinking.

 Obviously, it’s harder to get politicians to agree to such proposals if the data shows a problem might be improving. Less obviously, it is far from clear whether such restrictions would, in fact, lead to a further decrease in binge drinking.

 This is why the CDC claims needed to be checked out against their data. And this leads one to end on a different question: What use is – what value has – news that utterly fails to do that?

http://www.forbes.com/sites/trevorbutterworth/2013/01/17/the-cdc-says-women-are-chugging-their-way-to-doom-but-what-does-the-data-say/2/

 ——

Lawmakers demand data on energy drinks

 Source: FT

By Alan Rappeport in Washington

Jan 17th

 

US lawmakers stepped up their investigation into energy drinks on Thursday, demanding that companies making products such as Monster, AMP, Red Bull and Rockstar hand over internal documents that prove they are safe.

 The highly caffeinated drinks have been the subject of government scrutiny in recent months since the US Food and Drug Administration disclosed reports of several deaths associated with Monster and 5-hour Energy.

The controversy has also called into question why energy drinks, which are usually sold next to regular beverages such as Coca-Cola and Pepsi, are classified as nutritional supplements and face looser regulation.

 Senators Richard Blumenthal and Richard Durbin and Representative Ed Markey asked 14 energy drink companies to explain why they classify themselves as supplements and to provide information about the caffeine content of their drinks and any safety studies they have undertaken.

 “One of the major concerns surrounding energy drinks is the potential health risks to children who consume these products,” they wrote. “Furthermore, questions have been raised about the combination of high levels of caffeine with other stimulant ingredients.”

 Those fears were buttressed by a recent study by the US Substance Abuse and Mental Health Services Administration that found emergency room visits linked to energy drinks jumped from 10,000 in 2007 to 20,000 in 2011.

The FDA is studying the relationship between caffeine and other stimulants such as guarana and taurine that are in energy drinks. The health regulator said in November that it had not found studies showing those mixes of ingredients to be dangerous.

 ——

Tesco axes jobs as it prepares a US exit

Source: FT

By Andrea Felsted, Senior Retail Correspondent

Jan 17th

Tesco is cutting about 50 jobs at its Fresh & Easy business as it prepares to exit the US.

 The retailer, which said last month it was reviewing the future of Fresh & Easy, is cutting about 45 jobs at its head office in Los Angeles, in areas including property.

Tesco said: “We have cut a small number of positions in the head office as we continue the strategic review of the business. All our stores remain open and it is business as usual for customers and store employees.”

 The latest cuts follow the loss of about another 50 jobs last July, when the unit put significant new store openings on hold, in an effort to drive the chain to profitability.

 Last month, Philip Clarke, chief executive of Tesco, admitted that this had not been possible and that the business had “failed”.

 The latest job cuts, first reported by Fresh & Easy Buzz, a blog covering the US grocery industry, are in areas associated with expanding the business, according to people familiar with the situation.

The cuts come as Tesco is expected to say that it is quitting the US when it announces its annual results in April.

Tesco said last month that it was reviewing the future of the US business and would part company with Tesco veteran Tim Mason, chief executive of Fresh & Easy, and the group’s deputy chief executive. It also appointed investment bank Greenhill to lead the review.

 Mr Clarke said at the time the US review was announced that he expected it to lead to a withdrawal from the country in which Tesco has invested about £1bn since 2007.

——

American hangover for AB InBev

 

Regulatory concerns could damage Modelo deal

 Source: FT / Lex

Jan 17th

 AB InBev is not having a great January. Any joy the brewer might have felt after raising $4bn of debt at rates as low as 0.8 per cent this week will have been tempered by regulatory woes on both sides of the Atlantic. In the UK, it was told that it has to share the Budweiser name with rival Budvar. More seriously, in the US it is haggling with regulators over its $20bn acquisition of Modelo, whose brands include Corona.

 

The big issue is market share – the combined company would have a 55 per cent share of the US beer market by volume. AB InBev’s attempt to soothe regulatory concerns by handing control of Crown Imports (which distributes Modelo’s drinks in the US) to Constellation Brands – limiting the combined market share to 49 per cent – might not be enough. It may also have to give up its option to buy Crown, which can be exercised every 10 years. And if that is not enough, it might have to tweak its supply agreement with Crown or even allow another brewer to produce some of Modelo’s drinks.

 

Problems with US regulators need not be fatal to the deal, whose benefits rely largely on cost savings in Mexico and wider distribution of Corona. But exports are 40 per cent of Modelo’s sales, and about

two-thirds of exports go to the US, so it is a sizeable chunk of business. Bernstein estimates that being forced to lose some of Modelo’s production could strip $75m out of the deal’s cost savings of $600m. That said, AB InBev has overdelivered on savings promises in the past, so $600m might still be achievable.

 

Worries about the deal are weighing on the shares. Since it was announced last June, AB InBev has underperformed rivals SABMiller, Heineken and Carlsberg. The company hopes that the deal can be completed in the first quarter of 2013. If the uncertainty drags on, the risk is that the shares will lose more of their fizz.

 

 

——

Palatable cures seen for AB InBev’s ‘merger headache’

 

Source: Deal Pipeline

by Renee Cordes In Brussels  

January 17, 2013

 

Is the beer mug half-empty or half-full?

 

Even if Anheuser-Busch InBev SA/NV has to make concessions to win U.S. Department of Justice approval for the outstanding 50% of Corona maker Grupo Modelo SAB de CV, analysts don’t see much danger of the $20.1 billion deal collapsing.

 

In the past couple of days, the New York Post and Bloomberg reported that U.S. regulators will demand major remedies from AB InBev, the Leuven, Belgium-based brewer of Budweiser, Stella Artois and Beck’s, in exchange for approval of the purchase agreed last summer. The New York Post predicted a “merger headache” for the world’s top brewer.

 

The deal got the green light from regulators in Mexico in November, but faces its toughest test in Washington, where talks reportedly concern a long-term distribution and pricing agreement between the merged entity and Crown Imports LLC, AB InBev’s joint venture with Constellation Brands Inc. that distributes and markets Modelo’s Corona and other brands in the U.S. A decision may not come for another month.

 

AB InBev spokeswoman Karen Couck said by e-mail that the company continues to expect closing in the first quarter, as announced in June, but that the brewer is not commenting on the DOJ review.

 

AB InBev shares were up marginally at ?67.01 in Brussels Wednesday, equating to a total market value of about ?107.7 billion ($143.25 billion). Modelo shares advanced 1.15 pesos in Mexico City to P113.65, valuing its equity at 367.9 billion pesos ($29.1 billion).

 

When announcing the planned takeover of Mexico’s leading brewer, AB InBev billed it as a “natural step in the long and successful partnership” between the two companies, and projected “at least” $600 million in annual cost synergies, phased in over four years, through combined purchasing and various administrative efficiencies.

 

In a related transaction, Modelo agreed to sell its 50% stake in Crown Imports to Constellation Brands for $1.85 billion, although AB InBev retained the right to exercise an option to buy back the stake every 10 years at a multiple of 13 times Ebit, subject to regulatory approval.

 

As speculation swirls about possible remedies, analysts poured cold water on suggestions of any real risks to the tie-up from U.S. regulators.

 

“I suppose that the authorities will ask for some limited concessions, but that does not mean that the whole deal will be cancelled,” said Hans D’Haese, an analyst with Bank Degroof in Brussels with an accumulate rating on AB InBev shares.

 

He also said the $600 million in projected synergies was most likely a conservative figure.

 

A likely scenario in the DOJ review, according to analyst Wim Hoste of KBC Securities in Brussels, is that AB InBev gives up its call option on Crown Imports. “Personally I think that part of the proposed transaction could face some scrutiny from the U.S. Department of Justice, which might just say, ‘If you sell it, sell it forever,'” he said.

 

He also dismissed criticism that AB InBev could use Crown to influence Corona’s pricing policy in the U.S., saying this would not be a major issue in the Washington review in light of an often-overlooked provision in the merger agreement spelling out a pricing formula based on U.S. consumer inflation.

 

“This should allay some of the concerns or the potential concerns of the Justice Department,” said Hoste, who has a hold rating on AB InBev shares with a ?67 price target.

 

 

——

Anheuser-Busch InBev Finance Raises C$1.2 Bln From Debt Issues

 

Source: WSJ

By Ben Dummett

Jan 17th

 

Anheuser-Busch InBev Finance Inc., a financing arm of beer maker Anheuser-Busch InBev NV, raised 1.2 billion Canadian dollars ($1.22 billion), or double the minimum target, from an issue of five-year and 10-year bonds, according to a person familiar with the offering.

 

The company raised 600 million from the five-year issue, pricing the offering at 98.3 basis points over the relevant Government of Canada benchmark to yield 2.478%. The bonds carry a coupon of 2.375%. It raised the same amount from the 10-year offering, pricing with a spread of 150.8 basis points over the relevant benchmark to yield 3.461%. The bonds carry a coupon of 3.375%.

 

 

——

Heineken moves from Vienna to Amsterdam

 

Source: Vienna Times

Jan 14th

 

The east-european centre of the Dutch beverage giant Heineken is moving from Vienna to Amsterdam in the next few months.

 

The Lassallestraße location in Vienna will be closed down.

 

“The change is not too dramatic, because a big part of the team is staying in Austria”, chairman of the Austrian brewery union Markus Leibl told the “Oberösterreichischen Nachrichten” (OÖN) on Saturday.

 

Some of the staff are relocating to Schwechat.

 

Jan Derck van Karnebeek, responsible for the central und east-European location (CEE) will be relocating to Amsterdam with his management team. As member of the executive committee, he belongs to the group’s senior  management team.

 

The Lassallestraße location will be shut down. The CEE exports team, revision and part of the finance team are due to relocate to the Union brewery in Schwechat.

 

This withdrawal is to save costs. There are enough offices and infrastructure available. Moreover, the location is close to the airport.

 

Since the takeover of the Austrian brewery union by Heineken ten years ago, the central and east-European expansion has been controlled from Vienna. That was part of the takeover contract. However, this clause only lasted the five year running up to 2008. From 2005 the biggest Heineken department, which was responsible for Germany and Greece as well as central and east-Europe operated from Vienna.

 

The central and east areas alone are responsible for a quarter of the total Heineken beer production and some 3.3 billion Euro turnover according to the latest yearly report. It was made public last December that Heineken is selling Pago, the fruit juice brand from Carinthia – finally bought by the German group Eckes-Granini.

 

 

——

Ultimate Spirits Challenge – Top Reasons to Enter

 

Source: UB-C

Jan 17th

 

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Here’s how you benefit from entering your spirits:

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Your results gain unique promotion to buyers:     

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The 2013 Ultimate Spirits Challenge takes place on March 11-15 at Astor Center in New York City.  Entry information and forms can be found at www.ultimate-beverage.com or by clicking here. Entry fee is $425 per spirit.

 

 

——

Champagne 2012 will be an ‘exceptional’ vintage

 

Source: Decanter

by Caroline Henry in Champagne, and Adam Lechmere

Thursday 17 January 2013

 

Champagne producers including Dom Perignon and Philipponnat have confirmed they will make a vintage in 2012.

 

Despite what vignerons at the time called one of the worst growing seasons they had seen for decades, with April frosts, hailstorms, and one of the wettest summers on record, they are highly optimistic for the quality of the vintage.

 

‘The quality and the intensity are definitely there to make an outstanding vintage,’ Dom Perignon chef de cave Richard Geoffroy told Decanter.com.

 

Winegrowers said the warm weather in August was a saving grace. As harvest grew closer it became apparent that the small amounts of grapes on the vines were of excellent quality. In September as grapes were picked and pressed, often at close to 11% alcohol, winemakers were amazed by the concentration of flavour, natural sugar and acidity, and talk of a potential vintage began to be widespread.

 

‘The base wines show a lovely richness as well as the acidity needed to make outstanding and long-lived Champagnes,’ Jean-Phillipe Moulin, director of wine making at Champagne Barons de Rothschild and Paul Goerg. ‘We will definitely bottle a vintage for both brands.’

 

Charles Philipponnat at Champagne Philipponat agreed. ‘2012 is an exceptional vintage and especially promising for Pinot Noir,’ he said, and was echoed by at least three other producers, including Champagne Boizel and Champagne Tarlant.

 

Benoit Tarlant said the quality of all three grape varieties was ‘excellent – something which is extremely rare’.

 

He added that he would make less non-vintage this year. ‘It would be a pity not to make a decent amount of vintage wine, even if it means we have a little less of of our non-vintage cuvee.’

 

The harvest average in 2012 was just under 9,000kg/hectare – significantly lower than the maximum allowance of 11,000kg/hectare.

 

 

——

From Big Wins to Big Wines

 

Top Athletes Who Turned Their Favorite Drink Into a Business Venture

 

Source: WSJ

By WILL LYONS

Jan 17th

 

For the majority of sportsmen, operating in a field where peak physical fitness and razor-sharp reactions are a necessity, wine appreciation isn’t perhaps the most obvious of recreational pursuits. In today’s professional era, most athletes are more likely to endure an ice-bath and energy drink than enjoy a well-deserved glass of red or a chilled Chablis.

 

But there are some sports that, for the spectators and former players at least, lend themselves to wine appreciation. Take the game of cricket. As well as being a leisurely contest-Test matches take place over five days, with breaks for lunch and tea written into the laws-it is also played in some of the most beautiful wine regions in the world. In South Africa, Newlands Cricket Ground is a short drive from the Western Cape vineyards of Stellenbosch and Franschhoek. New Zealand’s McLean Park is in the heart of Hawke’s Bay, home to some scintillating red wines.

 

While there are plenty of celebrities who endorse brands, there is also a number of sportsmen who have genuinely caught the wine bug, whether it was a memorable first glass while on tour, over a meal with their future wife or long after they’d retired from the locker room. For a few, like Formula One driver Jarno Trulli, that off-duty love of wine has matured into a post-retirement business.

 

Jarno Trulli

 

Years before climbing into a race car, Jarno Trulli knew how to make wine. “My wine experience isn’t huge, but it is definitely long,” says the former Formula One driver. “I grew up with my grandfather when I was young; he was making wine in his garage and that was one of the first things I can remember.”

 

Those early experiences in the western Italian city of Pescara, watching his grandfather produce small batches of wine for the family cellar, stayed with him. “As I started racing go-karts, I lived in a different way,” he says. “But when I had the chance to restart the family business, I took it.”

 

Jarno Trulli purchased Podere Castorani, a 30-hectare estate in Italy’s central Abruzzo region, in the late 1990s. The core business is centered around the production of red wines made from the Montepulciano and Montepulciano d’Abruzzo grape varieties. There are also a number of white wines made from Pecorino, Trebbiano d’Abruzzo, Passerina and other local varieties.

 

That opportunity came in the late 1990s in the form of Podere Castorani, a 30-hectare estate in Italy’s central Abruzzo region, where the red Montepulciano grape variety thrives. Tucked away in the foothills behind Pescara on the Adriatic coast, it has been described as the heart of Italy’s winemaking culture. The 18th-century estate had been abandoned for many years before Mr. Trulli, then in his 20s, along with his father and Formula One manager Lucio Cavuto, set about restoring its vineyards.

 

“The wine world is totally different to Formula One because everything takes a long time, but the passion is exactly the same because it is the same fundamentals as when I was racing,” says the 38-year-old, who recently retired from racing. “We have to be passionate and pay attention to all the details and make sure the wine is being made and aging in the right way.”

 

He says he has very little to do with the actual winemaking-leaving that to his winemaker, Angelo Molisani-but he is heavily involved in marketing the product. “When I was racing, I used to spend the first half of the week meeting people and promoting the wines,” he says. “I have never been a huge drinker. One glass will always be enough….When we were approaching the weekend, we would never touch alcohol. But after the race, it was always nice to celebrate.”

 

Ian Botham

 

The former English cricket captain discovered his love of New World wine when he was touring Australia and New Zealand in the late 1970s. “It all started when we were playing in Australia and we didn’t like the ordinary beer they served in Adelaide,” says Ian Botham. Winemaker Geoff Merrill, who would later go on to work for Hardy’s before setting up his own label, suggested to the fast bowler and his teammate Bob Willis that they should come and “try our wines,” Mr. Botham recalls.

 

Former English cricket internationals Ian Botham and Bob Willis, in partnership with South Australian wine producer Geoff Merrill, produce three wines: a Chardonnay, Cabernet Sauvignon and Shiraz. Full-bodied and ripe, they are very much made in the New World style and sell for around £16 or ?20 a bottle.

 

From that meeting, the seed was sown. Mr. Botham, who had been educated to appreciate the delights of fine wine (mainly French) by the late cricket commentator and writer John Arlott, began a love affair with Australian wine. “The more I visited vineyards on my travels and got to know the wine growers and the regions, the more disillusioned I became with French wine,” he says. “I used to bring a lot of wine back from Australia for John Arlott to try. In the early days, he would dismiss [them] but toward the end, he saw that their styles were changing and he mellowed a bit on it.”

 

In 2001, Mr. Botham joined with Mr. Willis to launch a Cabernet Sauvignon and Shiraz made by Mr. Merrill’s winery in the McLaren Vale. A Chardonnay followed a year later. “We are very much hands-on and involved,” says the 57-year-old, now a sports commentator. “What we haven’t tried to do is go down the route where Geoff has a vat of Chardonnay that he can’t get rid of so we put our names on it and flog it. That’s not what we do.

 

“I taste the wines,” he adds. “I have some 2001 Shiraz that I will be opening, some ’05 Chardonnay, which is quite a butch Aussie Chardonnay with a bit of oak on it. We actually toned it down from previous vintages because of peer pressure from the girls.”

 

These days, Mr. Botham’s cellar is filled with the sort of award-winning bottles that have put Australia on the wine map: Penfolds, Hill of Grace by Henschke, Merrill’s Henley Shiraz and Moss Wood. “If I was given the choice between a Montrachet from France or a Western Australian Chardonnay like Leeuwin Estate Art Series, there would be no contest,” he says.

 

When Mr. Botham heads to New Zealand to commentate on England’s three-match series next month, he plans to “hit the road” to discover some new wines. “I like to just pull in and have a sandwich and a glass of wine at a local place,” he says. “One of those is Cabbage Tree vineyard in Martinborough, on the southern tip of the North Island, which is always one of my first ports of call when I am in New Zealand. The more you explore, the more you find these little gems.”

 

Ernie Els

 

It was a first date that introduced the South African golfer to the delights of fine wine. “I grew up in Johannesburg, which is not in the wine region of South Africa, but Liezl was from Stellenbosch, so I took her to a friend of mine’s winery near there,” recalls the 43-year-old pro, who has twice won both the U.S. and British Opens. “That was my first experience.”

 

Since that visit, Ernie Els has married his sweetheart and his interest in wine has flourished. “My palate is one that I love the red wines of Bordeaux,” he says. “But living in America now, I have got to like classic Napa wines such as Harlan family and Bryant family. But obviously good, quality, aged Bordeaux is still my favorite.”

 

Ernie Els set up his eponymous Stellenbosch winery in 1999 with acclaimed winemaker Louis Strydom. The first wine they produced was a Bordeaux-style blend described as bold and full-bodied that commanded a high price. Since then, the winery has gone on to produce a series of less-expensive wines, including a Syrah, Cabernet Sauvignon, Merlot, Sauvignon Blanc and Chenin Blanc, that sell for £8 to £15 a bottle (?9 to ?18).

 

In 1999, he teamed up with Rust en Vrede’s Jean Engelbrecht and respected winemaker Louis Strydom to create their own wine: a Bordeaux blend. The first vintage was 2000, created from a blend of Cabernet Sauvignon, Merlot, Petit Verdot, Malbec and Cabernet Franc. A range of robust reds followed, as well as a Sauvignon Blanc and a Chenin Blanc.

 

“For marketing purposes it helps that I am golfer,” Mr. Els says. “But as you know, whatever the brand is, if it’s not quality, people are not going to buy it. So we needed to have a proper wine in the bottle.” He remains in constant touch with Mr. Strydom, who runs the wine operation, and tastes the wine as much as possible.

 

“We are really in the business,” he says. “I have a winery and a 75-hectare estate near Stellenbosch. We produce the wines on the farm. We don’t just put my name on the label. I taste the wines all the time. When we are down there we try and change things around a bit with the varieties and the blends.”

 

Mr. Els currently splits his time between homes in Florida and the U.K., with visits to South Africa, but he says that when his golf career is over, he will live on the estate and develop the wines full-time.

 

Joe Montana

 

The former San Francisco 49ers and Kansas City Chiefs quarterback caught the wine bug after meeting Ed Sbragia, one of California’s most talented winemakers.

 

Joe Montana, who led the 49ers to four Super Bowl victories, teamed up with Mr. Sbragia in 2000 at the Napa Valley wine auction.

 

Since 2000, Joe Montana has been creating a Cabernet Sauvignon and Cabernet Franc blend with distinguished Californian winemaker Ed Sbragia. Initially made at Beringer Vineyards, the wine, called “Montagia,” is now produced at Mr. Sbragia’s own winery in Dry Creek Valley. Limited edition, with all proceeds going to charity, the wine is only available at the cellar door.

 

Mr. Sbragia, who made his name producing world-class Cabernet Sauvignons and Chardonnays at Beringer Vineyards, worked with Mr. Montana, now 56, to create a Cabernet Sauvignon and Merlot-based blend produced from fruit from Beringer’s vineyards in the Howell Mountain region.

 

Their first vintage, a 1997 called “Montagia,” was auctioned for more than $200,000, with proceeds benefiting a number of Napa Valley health charities.

 

Each successive vintage has also been sold for charity. In 2007, production moved to Mr. Sbragia’s Sbragia Family vineyards.

 

David Ginola

 

The former French playmaker may be from Provence, but it wasn’t until he was playing soccer for Paris Saint-German in the 1990s that David Ginola was truly introduced to his country’s great wines.

 

David Ginola produces a rosé wine made by the Coste Brulade wine estate, a cooperative in the small village of Puget-Ville in Provence’s largest appellation, the Côtes de Provence. This appellation, which spreads to around 20,000 hectares, produces mainly pale pink, dry rosés.

 

So when he retired a decade later, having crossed the Channel and established himself as a popular Premiership player in England, it seemed only natural for Mr. Ginola to turn to the wine-producing villages of his native Provence.

 

Though he tried his hand at a number of ventures, including acting and advertising L’Oréal OR.FR +1.25% shampoo, the 45-year-old ex-Tottenham Hotspur and Newcastle United player decided the life of a vigneron appealed. In 2007, he invested in Coste Brulade, a cooperative wine estate in the village of Puget-Ville in the Var, promising to make typically Provençal wine that was as “pale” and “sexy as possible.” A blend of Cinsault, Grenache and Syrah, the Coste Brulade 2007 Rosé won a silver medal in 2008 in the International Wine Challenge in London.

 

Gérard Basset, the master sommelier who co-founded the U.K.’s Hotel du Vin chain, regularly shared a glass with Mr. Ginola when he stayed at his hotel while playing for Aston Villa. “He was a great listener and was naturally very interested in wine,” Mr. Basset recalls. “Of course he loved red Bordeaux, but I thought he was very broad-minded and would often try new wines or something a little different.”

 

 

——

St Emilion owner ‘seeking damages’ over Classification

 

Source: Decanter

by Chris Mercer

Thursday 17 January 2013

 

The owner of Saint Emilion’s Chateau Croque-Michotte, Pierre Carle, will seek compensation if he and two other chateaux win their court battle against the new Saint Emilion classification.

 

Carle has joined forces with Château La Tour du Pin Figeac and Château Corbin-Michotte to file a legal complaint at a tribunal in Bordeaux.

 

After missing out on Grand Cru Classé status, they allege procedural errors by the INAO-led selection team for the 2012 classification.

 

Carle told Decanter.com he will ‘ask for damages’ if he wins the case, highlighting the difference in wine prices for those with a classification and those without.

 

Croque-Michotte has been out of the classification since 1996.

 

Carle accused INAO officials of ‘not respecting their own rules’ in the 2012 selection process.

 

While full details of the legal case are not fully known, the dispute centres on the application of eligibility criteria for classification, and specifically the tasting results, the tests for quality of terroir and the extent to which the chateaux are ‘well-known’.

 

‘This area has some of the best terroir in the world, and we are right in the middle. But they said the terroir was not good,’ said Carle. ‘We are on the border with Pomerol, 350 metres from Cheval Blanc and Petrus.’

 

Both Carle and Sylvie Giraud, of Château La Tour du Pin Figeac, said that legal action is a last resort.

 

‘I wrote them several letters with full details,’ Carle said, ‘and the answer was: we can do nothing. They are just bureaucrats who go home at the end of the day and don’t care.’

 

He added, ‘For me, it’s very simple. We have all the proof of the fault, everything is written down on paper’.

 

The case could take months to sort out. Last time there was a dispute of this nature, in 2006, it took three years to resolve, Carle pointed out.

 

Franck Binard, director of the Conseil des Vins de Saint Emilion, said the legal action ‘is a pity for everyone in Saint Emilion.’

 

 

——

Wine trade to see record M&A in 2013 – study (Excerpt)

 

Source: Just-Drinks

By James Wilmore

17 January 2013

 

M&A activity among US wineries will come at a “record pace” this year, while bulk imports will continue to dominate the lower end of the market, according to a new report.

 

Silicon Valley Bank’s (SVB) Annual State of the Wine Industry Report, published this week, said that it expects to see “more transitions, sales and mergers taking place than at any time in memory” in the US in 2013. It also predicts a “c;ontinuation of new mergers among wholesalers”.

 

Wineries’ profits will also be hit by higher grape costs this year, the report suggests. Companies will raise their bottle prices, but the bank believes the move will “prove difficult”.

 

 

——

Wines of Chile’s 10th annual awards

 

Source: Drinks International

By Christian Davis

17 January, 2013

 

Wines of Chile has announced the Trophy winners for its annual awards.

 

Eighten trophies were awarded to wines that the panel of Asian and Chilean judges considered to the best in their category after a three-day blind tasting of more than  00 wines that took place in Santiago.

 

The top award went to Viña Errazuriz. The winery won the Best in the Show trophy for its icon wine Don Maximiamo Founder’s Reserve 2010: a blend of Cabernet Sauvignon, Petit Verdot, Syrah, Carmenere and Cabernet Franc.

 

Owner Eduardo Chadwick commented: “It’s really a great honour – we are trying to show finesse and quality from Chile and our winemaker and the team are key in doing that. I am really pleased that their efforts have been recognised in this way.”

 

The same wine also won one of the most coveted new trophies to be added this year – Best Super Premium Red Wine.

 

The Best Super Premium White Wine was awarded to the Casa Marín Cipreses Vineyard Sauvignon Blanc 2011.

 

Two wines were awarded the Best Value Trophies: Oveja Negra Cabernet Franc- Carmenere 2011 for Best Value Red, and Santa Carolina Reserva Moscato 2012 for Best Value White.

 

A further 15 trophies were awarded to the best wines in each category. Colchagua Valley-based winery Cono Sur struck gold three times as it took away the Best Pinot Noir medal for its 20 Barrels 2010 and the winery also won two trophies for the Best Syrah as both its 20 Barrels Syrah 2010 and Single Vineyard Syrah 2011 produced a tie in the blind tasting.

 

This year saw a record number of entries at 615 wines and also the highest number of medals in the awards’ 10-year history: 10% receiving gold medals, 28% receiving silver and 41% receiving bronze, resulting in 79% of entrants receiving a medal.

 

Wines of Chile says the Asia region is one of Chile’s most important and growing consumer wine markets and so for this landmark tenth year of the awards, a specialist panel of wine experts from Japan, China, Korea and Chile was selected to blind taste the wines that entered the competition.

 

The Judges were: Fongyee Walker (China), Tersina Shieh (Hong Kong, – Yumi Tanabe – Japan – Walker Kei – Hong Kong – Marcelo Pino – China), Young-Jin Yoo (South Korea), Masaharu Oka (Japan), Hector Vergara and Patricio Tapia (both Chile).

 

The trophy winners in Annual Wines of Chile Awards 2013 are:

 

http://www.drinksint.com/news/fullstory.php/aid/3552/Wines_of_Chile_92s_10th_annual_awards.html

 

 

——

Seizure of Evidence at Wine Seller’s Home Ruled Legal

 

Source: Bloomberg

By Patricia Hurtado

Jan 17, 2013

 

FBI agents’ seizure of evidence at the home of a California man accused of selling more than $1.3 million in counterfeit vintage wines was legal and can be used at trial, a judge ruled.

 

U.S. District Judge Richard Berman in New York said today that the Federal Bureau of Investigation agents didn’t violate Rudy Kurniawan’s constitutional rights against unlawful search and seizure last year when they gathered the evidence at his home in Arcadia, California.

 

Prosecutors said Kurniawan, an Indonesian national, had a “laboratory for creating counterfeit wine” in his home, including thousands of printed wine labels for many of the world’s most expensive wines, such as Domaine de la Romanee- Conti and Chateau Petrus. Kurniawan was arrested March 8 and accused of consigning at least 84 counterfeit bottles of Burgundy to a New York auction house.

 

Kurniawan’s lawyer had sought to bar the use of evidence seized by the FBI during the search. The evidence included a wooden crate labeled “Joseph Drouhin,” a producer of wines from Burgundy, France, which FBI Special Agent Oliver Farache said in a sworn statement was in “plain view” and “just inside the threshold of the subject residence’s front door.”

‘Detailed Account’

 

“The detailed account of Kurniawan’s counterfeiting activities in the complaint, which already connected his home to evidence of wine counterfeiting, when combined with just a brief description of the materials piled up against Kurniawan’s front door, establish probable cause to uphold the warrant,” Berman said today.

 

Michael Proctor, a lawyer for Kurniawan, had sought to suppress the evidence, alleging that the FBI agents lacked probable cause to enter the home. Agents said that after they arrested Kurniawan, they saw wine bottles visible from the front doorway.

 

“The suggestion is nonsense,” Proctor said in court papers. “That he had bottles of wine — even French wine — visible from his doorway cannot establish probable cause. He is a wine dealer and aficionado, and there is nothing unusual or noteworthy about the presence of cases of wine in his home.”

 

Berman directed Kurniawan to return to court on Feb. 14 for a pretrial conference.

 

Billionaire wine collector William Koch sued Kurniawan in 2009 in Los Angeles state court, claiming he had sold him phony vintages.

 

The case is U.S. v. Kurniawan, 12-mj-606, U.S. District Court, Southern District of New York (Manhattan).

 

 

——

PIEDMONT DISTILLERS HIRES DIRECTOR OF SALES FOR EASTERN U.S.

 

Source: Evangeline PR

Jan 17th

 

Piedmont Distillers, Inc., announced that John Lundstrom has been hired as Director of Sales – Eastern U.S.

 

Lundstrom joins the company with almost 30 years of industry experience.  He spent most of his industry years at Jim Beam Brands Company, where he held every sales position from sales representative to U.S. Sales Vice President.  Lundstrom also spent three years as a chain account executive at United Liquors, an Arizona wholesaler, and three years early in his career at Copper Mountain in the resort’s food and beverage department.

 

“John’s prior experience in the Control States and work with open state distributors to build brands will be instrumental to his success at Piedmont” said Joe Flock, vice president of Sales and Marketing at Piedmont Distillers.

 

 

——

Fast-casual chains ramp up alcohol offerings

 

Restaurants such as Smashburger, Noodles & Co. and Pitfire Artisan Pizza aim to differentiate and meet consumer demand with new drinks

 

Source: NRN

Lisa Jennings   

Jan. 17, 2013

 

Offering upgraded beverages can help fast-casual chains boost dinner sales and enhance the overall guest experience.

 

Beer and wine – or even wine-based margaritas – have long been a part of fast-casual chain restaurant menus, but a growing number of concepts are ramping up their alcohol offerings to stand out from the crowd.

 

Last year, Smashburger launched a new craft beer pairings program that matches local brews with burgers on its menu. The Denver-based chain plans to bring the program to six markets this year.

 

Chipotle Mexican Grill is also testing the offer of local craft beers in Chicago in partnership with the 5 Rabbit brewery.

 

The Dallas-based Snappy Salads chain is seeking approval to add beer and wine for the first time at a unit in Richardson, Texas.

 

Freebirds beerThe 90-unit Freebirds World Burritos offers a selection of beers, including some on draft and craft brews like Shiner Bock, Saint Arnold and Shock Top alongside national Mexican and domestic brands like Corona, Dos Equis and Budweiser. Some franchised locations also serve tequila-based margaritas, which are unusual in the fast-casual Mexican realm.

 

Noodles & Co. has been testing an expanded beer and wine program that includes an upgrade to the experience, with new glassware and a focus on “wines from around the world and beers from down the street.”

 

And six-unit Los Angeles-based Pitfire Artisan Pizza chain recently opened a location with a full liquor license. Though the chain has long offered beer and wine, the Costa Mesa, Calif.-based restaurant will feature a speakeasy concept with a full bar, called Pie Society, in the back of the freestanding unit.

 

One reason fast-casual concepts may be focusing more on differentiated alcohol opportunities is the fact that some quick-service competitors are also experimenting with adult beverages.

 

Sonic, Burger King, Johnny Rockets and Burgerville have been testing beer and wine additions, and Starbucks is increasingly adding alcohol to certain markets to build sales later in the day.

 

Introducing alcohol into the menu mix is not without challenges. There are training costs, varying state laws and permit processes.

 

However, for fast-casual concepts, offering more upgraded beverages helps boost dinner sales and enhances the overall guest experience. The addition of local craft beers that vary by restaurant also enhances the “anti-chain” vibe sought by a growing number of concepts.

 

Tom Ryan, founder of the Denver-based Smashburger chain, said the trend follows the growing interest among consumers in craft beer, in particular. “We do it because the local craft beer trend is hugely popular,” explained Ryan. “For us, it’s taking America’s favorite adult beverage on a local basis and pairing it with America’s favorite food done in a modern way.”

 

The craft beer pairings program is available at Smashburgers in the Denver (New Belgium Brewing Co.), Brooklyn, N.Y. (Sixpoint Brewery), and Houston (Saint Arnold Brewing Co.) markets. This month, the chain plans to roll it out in Minneapolis, Phoenix and Miami. In February, markets in Ohio and Dallas will begin promoting local beers with specific burgers.

 

In each market, the chain works with the beer makers to develop the best beer-to-burger pairings. The matches are listed on menu boards and “tasting notes” are available at each table.

 

So far, Ryan said the 200-unit chain has seen traffic grow with both repeat and new business in the markets featuring the beer pairings. One Denver location has even tested a beer float with the chain’s Haagen-Dazs ice cream.

 

At Noodles & Co., local microbrews are part of the expanded beer and wine offerings that are part of an ongoing rebranding effort, which has also included the addition of appetizers and tests of new desserts, said Dan Fogarty, the chain’s vice president of marketing.

 

Smashburger beerWine offerings there include a selection from musician Dave Matthews, who makes a cabernet, as well as a Clos du Bois chardonnay, both offered from $5 per glass and $17 per bottle. A more value-positioned Black Box wine, what Fogarty described as an upscale wine in a box, is available for about $1 less.

 

Fogarty said alcohol has been a small part of the menu mix, but identified it as “a great opportunity.”

 

For adults, being able to relax and have a glass of wine with their pasta while their kids are happy with their macaroni and cheese adds value to the experience and will help build dinner business, he said.

 

At Pitfire Pizza’s new Costa Mesa, Calif., location, the speakeasy in the back of the restaurant was an attempt to make good use of a larger space that already had a liquor license.

 

The bar will be able to service drink needs for a new “community kitchen” area, available for private parties or events, said Paul Hibler, the chain’s co-founder.

 

Though the bar is available in the facility, Hibler wants to keep the main dining room’s menu limited to beer and wine – and the possible addition of a rotating selection of pre-made cocktails made with seasonal ingredients. “But guests won’t be able to order a gin and tonic or something like that,” he said. “We’re not a bar. That’s in the back.”

 

Hibler said if the speakeasy is successful as an adjoining concept then he may add it to new units going forward where permits can be obtained, he said. But he doesn’t foresee getting too far into the bar business.

 

“I’ve seen too many companies dilute their brand by adding too many layers,” he said. “I want to make sure we stay focused on the baby, which is Pitfire.”

 

 

——

Customers still seek value when dining out

 

Source: NRA

by Elissa Elan

January 17, 2013

 

When dining out, budget-conscious consumers continue to expect the best value for their money, the National Restaurant Association’s 2013 Restaurant Industry Forecast has found.

 

Among operators polled, nine out of 10 said their customers were more value-conscious today than they were two years ago.

 

Furthermore, 79 percent of consumers questioned for the report’s 2012 National Household Survey said they would consider dining out more often if menu prices were lower during off-peak times. In addition, a slightly higher proportion of frequent quick-service users and takeout dinner customers also said they might go out more often if prices were lower during off-peak periods.

 

“Offering reduced prices during off-peak meal times is potentially a good way to offer additional value to existing and new customers,” said Hudson Riehle, senior vice president of the NRA’s Research & Knowledge Center. “The ability for restaurant operators to shift some current as well as new customers to slower times of the day and week is a well-established practice in other consumer driven industries. In the years ahead, and aided by new technologies, more restaurateurs will consider and offer enhanced value propositions at nontraditional times.”

 

Still, the operators surveyed had mixed opinions regarding whether off-peak dining at lower prices would become a trend. Approximately 60 percent of full-service operators said they thought it would, while just 39 percent of fast-casual and 33 percent of quick-service operators thought the trend would gain in popularity.

 

 

——

The 100 Best Beer Bars in America

 

You are reading The 100 Best Beer Bars in America by Kendall Jones, as originally posted on The Washington Beer Blog.

 

Source: Seattle PI

Jan 17th

 

The current issue of Draft Magazine showed up in the mailbox the other day. The cover story: The 100 Best Beer Bars in America. I am always excited to get this particular issue. I love to travel so I especially enjoy reading about the top-rated bars in other parts of the country. I’m quite familiar with the ones that made the list here in the Northwest, but I enjoy reading about the best beer bars in far-off places like Austin, Texas and Athens, Georgia. I must admit that I also enjoy the controversy that these kinds of “best of” lists always seem to stir up.

 

This year, as far as the Pacific Northwest is concerned, the following bars made the list: Apex, Bailey’s, Belmont Station, Beveridge Place Pub (blog sponsor), Horse Brass Pub, Naked City Taphouse, The Pine Box, Seraveza, and Stumbling Monk.

 

I can live with that list. Sure, there are some glaring omissions, but having compiled these kinds of lists myself, I am keenly aware of the challenges. There simply is not enough room for every deserving candidate to be on the list. Thank God!

 

So why isn’t Brouwer’s Café on the list? Well, because there are so many others that also deserve to be on the list. Is that a bad thing? Should the Green Dragon be on the list in place of Bailey’s or Apex? Instead of crying about the fact that Bellingham’s Green Frog Acoustic Tavern or Ballard’s Noble Fir did not make the list, I am choosing to celebrate the fact that there were so many other worthy candidates.

 

According to Draft Magazine, nine out of 100 of the country’s best beer bars are in either Portland or Seattle. I am not sure what that means. Should that number be higher? I don’t know. I haven’t been to all of the other 91, though I have been fortunate enough to imbibe at a number of them. I cannot honestly say that another Seattle bar should be on the list at the expense of San Diego’s Small Bar or San Francisco’s Toronado.

 

I am  curious which bars you think deserve to be on the list, or at least deserve consideration. What place(s) would you absolutely and positively put on this list? I am also curious to know which of the bars on the list (that you have actually visited) you would omit?  You can view the list here.  http://draftmag.com/features/america-100-best-beer-bars-2013/

 

 

——

Carrefour sales raise hopes of turnround

 

Source: FT

By Scheherazade Daneshkhu in Paris

Jan 17th

 

Carrefour reported improved sales in its French domestic market on Thursday and endorsed 2012 operating profit expectations, reinforcing hopes that new chief executive Georges Plassat’s turnround strategy is beginning to work.

 

Total sales rose 2.1 per cent at constant exchange rates to ?22.9bn and by 1.3 per cent on a like-for-like basis in the three months to the end of December compared with the same period a year earlier. A drop in sales in austerity-hit southern Europe partially offset faster sales growth in emerging markets.

 

In France, which accounts for 40 per cent of sales, revenues rose 1.3 per cent like-for-like and 0.6 per cent in reported terms.

 

For the full year, total sales rose 1 per cent to ?86.6bn.

 

Pierre-Jean Sivignon, finance director, said: “It is too soon to say we have turned the corner but there are encouraging signs that the pricing and commercial strategy is bearing fruit.”

 

Analysts at Credit Suisse described the numbers as “reassuring,” adding: “France is showing some sequential improvement which, in our view, is the key feature of the statement.”

 

Improving the performance of French hypermarkets – which account for 60 per cent of domestic sales – is seen by investors as key to reviving the fortunes of the company, the world’s second-biggest retailer by sales.

 

Mr Plassat, a veteran retailer who took the top job at Carrefour last May, has reinforced price promotions in a fiercely competitive domestic market and devolved more responsibility to individual store managers.

 

Carrefour endorsed analysts’ expectations of ?2.07bn 2012 operating profit, helping to ease fears that the sales improvement might have come at the expense of profit margins.

 

Like-for-like sales in hypermarkets were broadly stable in the fourth quarter. Excluding petrol they fell 2 per cent, which was an improvement on previous quarters. Food sales grew for the first time in more than two years.

 

Casino, Carrefour’s smaller domestic rival, this week reported a 9.9 per cent drop in French hypermarket sales in the fourth quarter, citing pricing pressure.

 

Analysts at Citigroup said: “The like-for-like performance of Carrefour’s hypermarkets and supermarkets was much better than that of Casino in the fourth quarter and we think relief about this is part fo the reason for the share price jump this morning.”

 

Carrefour shares rose 5.54 per cent to ?20.39 in Paris.

 

Mr Sivignon said part of the money raised from the pulling out of Greece, Singapore, Colombia, Malaysia and Indonesia last year would be used to reduce debt and the rest reinvested in maintenance and expansion.

 

Mr Plassat has promoted a strategy of reducing the number of countries in which Carrefour operates in order to boost investment in its key markets of Europe and emerging countries.

 

Analysts at Citgroup said: “There have been false dawns at Carrefour before, as the price-cutting efforts of previous management teams gained them sales traction. The sense that ‘this time it’s different’ is strong however.” They said the asset sales “provide some visibility that this time Carrefour should be able to maintain price competitiveness”.

 

 

——

Ahold strengthens hold on domestic market

 

Source: FT

By Matt Steinglass in Amsterdam

Jan 17th

 

Dutch food retailer Ahold reported a 7.1 per cent rise in sales in the fourth quarter over a year earlier, as it opened new stores in the US and strengthened its dominant market share in the Netherlands.

 

Ahold, which owns the Albert Heijn supermarket chain in the Netherlands and the Giant chain in the US, boosted revenues despite the Netherlands’ poor economy, which shrank 1 per cent in 2012 while consumer spending dropped to its lowest level since 2002.

 

Total sales reached ?7.8bn. At constant exchange rates the increase in sales was 5.1 per cent.

 

For the full year sales rose 3.5 per cent at constant exchange rates to ?32.8bn.

 

Sales growth of 4.3 per cent in the US was due in part to Hurricane Sandy, as the company’s stores remained open and won sales from damaged rivals.

 

Ahold did not release information on earnings in the trading update for the fourth quarter. The company will make its final quarterly and annual result public on February 28.

 

The results were in line with analysts’ expectations. Shares in Ahold rose 0.67 per cent at ?10.57 in Amsterdam, against a 0.67 per cent gain in the AEX index.

 

The company ascribed its sales growth in the Netherlands to the acquisition of 15 stores from its rivals C1000 and Jumbo and to rapid growth in online sales. The company’s market share in the Dutch food retail sector is more than 40 per cent.

 

Ahold said it had seen better than expected results from its new click-and-collect service, which allows customers to order groceries via their mobile phones and pick them up at participating stores.

 

 

——

Sweetbay Supermarkets to close 33 stores

 

Source: ABC Action News

01/16/2013

 

Late Wednesday evening, Sweetbay Supermarkets announced plans to close 33 underperforming stores in Florida.

 

The company plans to close the stores by mid-February.

 

In an emailed statement, spokesperson Nicole LeBeau said the move will help Sweetbay to “deliver profitable growth and accelerate shareholder value.”

 

Action News also spoke with Alexis Muellner, an editor from the Tampa Bay Business Journal, who said the closures could damage the brand Sweetbay had built up in the areas where stores are closing.

 

Muellner also says the market that Sweetbay competes in is ultra competitive, it’s main rivals include Wal-Mart and Publix, both brands which pride themselves on discount prices.

 

Muellner went on to say that grocery retail has very slim margins, and why some brands could be more vulnerable than others.

 

After these actions are complete, Sweetbay will have 72 stores in Florida.

 

 

——

Alabama: Bill would do away with ABC stores (Additional Coverage)

 

Source: AL.com

Kim Chandler

January 16, 2013

 

Alabama’s familiar ABC stores could be replaced with independent liquor stores under a proposal to privatize the retail functions of the Alcoholic Beverage Control Board.

 

Sen. Arthur Orr, R-Decatur will propose the idea in the upcoming legislative session, the latest development in the debate over the state’s role in the booze business.

 

“The fundamental question, I think for us as legislators and as a state, is should the state of Alabama be in the retail liquor business in the twenty-first century. Is this truly a function of state government?” Orr said.

 

There are currently 169 retail ABC stores across the state. Orr said eliminating the expense of those retail stores – including rent and employees – would save about $46 million annually.

 

“By not having the state employees, the leases, the utilities, the insurance , the equipment and the cash registers – all that goes away,” Orr said.

 

Alabama is only one of 12 states  in the retail liquor business, according to the National Alcohol Beverage Control Association, an organization representing the  states plus local jurisdictions that directly control the distribution and sale of alcohol.

 

However, those 12 states handle retail functions differently. Some have only state stores. Others have licensed “agents” that sell liquor for the state within a business. Alabama is unique in that it has a mixture of state stores and private package stores.

 

Under Orr’s proposal, the state would phase out retail operations  by October 1, 2013. Licenses for private stores to replace the state stores would be based on sealed competitive bids.

 

Orr said his proposal would limit the number of retail stores that could be set up in a particular area.

 

“We do not want a liquor store on every corner,” Orr said.

 

The proposal would create the five-member Retail Sales of Liquor Market Zone Commission to determine the number and location of retail licenses within market zone.

 

Orr said it “would determine what is a reasonable amount for a Dothan or a Jefferson County.”

 

However, others in the Alabama Legislature aren’t sold on the idea of completely privatizing the liquor business.

 

“I’ve got serious concerns about it and the motivations behind it,” House Minority Leader Craig Ford, D-Gadsden, said.

 

Ford said he believes the state’s retail stores are efficiently run and bring in revenue for the state and he’s concerned about  what the numbers would look like under privatization.

“The fundamental question, I think for us as legislators and as a state, is should the state of Alabama be in the retail liquor business…”

 

Ford said he is also concerned about the hundreds of employees that would be displaced.

 

Orr said his proposal would give the displaced employees some preference on the retail licenses and new state jobs.

 

A spokeswoman for Gov. Robert Bentley said the administration did not have a position on the proposal because they had not seen the legislation. Likewise, ABC Administrator Mac Gipson said he also did not have a position until he saw a bill.

 

NABCA President James M. Sgueo urged legislators in any state considering privatization to look what the stores generate in revenue and not just how much they cost.

 

“It’s not like the retail is losing money,”Squeo said.

 

Some states have abandoned the old state store approach and others are considering it.

 

Iowa in 1986 got out of retail operations and West Virginia followed in 1990, Squeo said.

 

Washington recently got out of the wholesale and retail operations. However, instead of bringing prices down, as some had hoped, average liquor prices jumped 10 percent since a year ago, according to the Associated Press.

 

Orr said that is a concern he wants to head off.

 

“I don’t think there would be a sentiment to see an increase in liquor prices,” Orr said.

 

Orr said that could mean dialing back the mark-up and taxes to make sure that consumers don’t see sticker shock at the cash register. That could reduce the savings to the state, Orr said, but he believes the savings would still be significant.

 

“Whether it’s $46 million or $30 million, the budgets are so desperate for funds, we need to consider every source of revenue that we can,” Orr said.

 

Asked about the outlook for the bill, Orr acknowledged it would be difficult

 

“There’s a lot of interest in continuing on the status quo by those involved in the current system…. But it’s a debate that needs to be had,” Orr said.

 

 

——

New Hampshire: Nashua warehouse company wants review of Liquor Commission ruling

 

Source: New Hampshire Union Leader

By DAVE SOLOMON

Jan 18th

 

Attorneys for Law Warehouses of Nashua asked a Superior Court judge to reconsider his ruling against the company’s right-to-know petition aimed at finding out why Law lost its bid for a $200 million contract with the New Hampshire Liquor Commission (NHLC) to an Ohio-based company.

 

A contract between Law and the NHLC for warehousing services had been regularly renewed since the 1990s, but last year the commission decided to seek bids for a long-term deal. In November it awarded a 20-year contract to Exel Inc., a subsidiary of the German company Deutsche Post DHL.

 

A spokesman for Exel said Thursday that the company is moving forward with plans to start business in New Hampshire and has identified a site along 3A in Bow for construction of a 240,000-square-foot warehouse.

 

“We are working with a local New Hampshire firm for the design-build portion of the site, and when we get to the point where we are close enough to the start-up to begin hiring people we will do that,” said Exel spokesperson Lynn Anderson. “We expect to hire 50 people who will be locally sourced in the Bow area.”

 

Brian Law, president of Law Warehouses, said 100 jobs are at stake in facilities it currently owns in Nashua. He said the company had planned to acquire a former Poland Springs plant near Interstate 95 in Seabrook, which he described as ideal for the purpose, had it been awarded the contract.

 

Law has demanded to see the full contract between the state and Exel, with no material blacked out or redacted, as well as the scoring sheet used in the commission’s decision-making process, emails and other communication considered part of the contract.

 

The court ruled on Jan. 8 that the Liquor Commission was allowed to black out certain information, even after the contract was approved by the state and became a public document.

 

In a motion for reconsideration filed Tuesday, Law’s attorneys say they it should at least get to review a list of what has been withheld, and be given a chance to challenge those redactions with a judge.

 

Attorney Chris Carter, representing Law, said the material the company has seen has only raised more questions.

 

“We believe that the documents that have been un-redacted and produced as a result of our right-to-know petition confirm our concern that New Hampshire law governing this bidding process was not followed and that the commission demonstrated improper favoritism for Exel,” Carter said.

 

Question of collusion

 

In his motion for reconsideration, Carter attached a letter from Exel to the Liquor Commission, in which Exel’s “real estate solution” is blacked out. The letter was later released with the paragraph intact, and it reads as follows: “It appears Law Warehouses is attempting to tie up the best existing warehouse location in New Hampshire through a deal with the current sub-tenant and landlords.

 

“Though not willing to accept our calls now, we believe the sub-tenant and landlord will work with Exel if we are selected as the successful proponent. If this is not the case, Exel has found a build to suit option in Concord. The net cost difference between the two buildings is minimal. Thus, either way we have a real estate solution for the NHSLC.”

 

Carter’s point is that the information was clearly not proprietary and was initially withheld at Exel’s request, suggesting collusion.

 

Attorney Nick Holmes of Manchester, representing Exel, said that is simply not the case. “The initial round of redactions was done by someone at Exel who did not fully understand the statute,” he said. Since then, Holmes and attorneys for the state representing the Liquor Commission have reviewed all the blacked-out material to make sure the redactions can be defended in court.

 

He said that process is complete and the documents have been posted on the Liquor Commission website, except for two fully redacted documents that relate to the real estate transaction in Bow and portions of 13 others that he said contain confidential, commercial or financial information that is exempt.

 

Assistant Attorney General Lisa English, who is representing the Liquor Commission, said her office is willing to provide a Vaughn index and expects to have one ready by next week. The deadline for formal protests to the bid award has been extended to Jan. 28.

 

Another unsuccessful bidder, XTL Logistics and Transportation, has also filed right-to-know requests in the case through its attorney, James Bianco of Concord. The Canadian company with U.S. headquarters in Pennsylvania placed second in the NHLC’s scoring sheet. Law Warehouses placed third.

 

Anderson said her company won the contract on the merits of its proposal, and is eager to get to work.

 

“Our calling card is our expertise and experience,” she said. “We think our ability to use that experience to form a very efficient and very productive process is what earned us this business.”

Sommelier’s Choice For Wines From The Sommelier Journal

January 15, 2013

http://www.sommelierjournal.com/articles/article.aspx?year=2013&month=01&articlenum=57

Liquor Industry News 1-14-13

January 14, 2013
www.franklinliquors.com

Franklin Liquors

 Yellow Tail Maker in Talks With Bank After Loss

 

Source: WSJ

By CAROLINE HENSHAW

Jan 14th

 

One of Australia’s biggest wine exporters has been forced into emergency talks with its lender after recording its first loss in more than 20 years.

 

Casella Wines, which makes one in every five bottles of Australian wine sold overseas, said it was looking to shave costs and is confident of reaching a deal with lender National Australia Bank Ltd. NAB.AU +0.66% ahead of an extended Jan. 30 deadline. A failure to secure a new loan could force Australia’s largest family-owned winery to sell off vineyards or other assets, John Casella, the company’s chief executive, told The Wall Street Journal.

 

Best known for its Yellow Tail brand, Casella relies on the U.S. for three quarters of its sales-but the Australian dollar’s rise against the U.S. dollar has made its wine less competitive against both U.S. wines, such as those of California’s Napa Valley, and those of rival export regions such as South America.

 

The bulk of costs for Australia’s winemakers are priced in Australian dollars. These include the cost of the grapes, which Casella sources from 33 of the country’s wine-growing regions, including the Barossa Valley and Coonawarra in South Australia and Victoria’s Mornington Peninsula.

 

The strong currency is the latest headwind to hit Australia’s wine industry. Years of expansion created a supply glut even as demand waned in its largest markets of the U.S. and Europe. Consecutive wet summers that yielded poor vintages, combined with tighter lending standards from the country’s banks, have put many winemakers under severe pressure and forced even the industry’s best-known names, such as the Rathbone Wine Group, to sell off assets.

 

“There’s no volume issue, it’s all about the exchange rate,” said Mr. Casella, whose parents founded the company more than 50 years ago after emigrating from Sicily. “The currency is having serious implications for a lot of Australian manufacturers.”

 

Casella Wines lost 30 million Australian dollars (US$31.6 million) in the fiscal year ended June 30, compared with a profit of A$43.5 million a year earlier. Its debt grew 40%, to A$138.7 million from A$98.9 million.

 

A spokeswoman for NAB declined to comment on talks with the winemaker.

 

Mr. Casella said following rivals by raising prices could be counterproductive, as it might jeopardize Casella Wines’s push into Asian markets, which currently account for 3% of sales. China has been a source of growth for Australian winemakers, with exports rising 15% to 35 million liters last year, according to government data published Monday.

 

Instead, Mr. Casella is looking to introduce a range of premium wines from a new vineyard in the Barossa Valley and through a beer partnership with Coca-Cola Amatil Ltd. CCL.AU +0.29%

 

“When you’ve got a huge volume facility like we have, price plays aren’t just about losing some volume, it’s about the efficiencies of the production line,” he said. “I would hate to remodel the whole business based on a higher exchange rate when it could be different in 18 months.”

 

 

——

Merger headache brewing for Busch

 

Source: New York Post

By JOSH KOSMAN

January 13, 2013

 

The Department of Justice is about to check the King of Beers.

 

Regulators will soon ask Anheuser-Busch InBev – the world’s biggest brewer – to make major concessions to complete its $19 billion buyout of Grupo Modelo, a well-placed source said.

 

Critics of the deal believe allowing Busch, with its Budweiser and other brands owning approximately 47 percent of the US beer market, to buy Modelo, whose Corona and 11 other brands control 6 percent, will give it too much pricing power.

 

Busch, sensing regulatory troubles, said in July it would give importer Constellation Brands the right to import all of Modelo’s beers and set distribution and pricing. But the offer appears to be one the DOJ can refuse.

 

There is a meeting of the regulatory cops at Justice this week and, the source said, Busch may be forced to have a third party make all beers imported into the US.

 

“It’s going to come down to how much Busch is willing to give up,” the source said. “They are going to have to create another competitor.”

 

Anheuser-Busch InBev already has 14 brands with sales of at least $1 billion each – and Modelo has three.

 

A banker said he believed Busch was ready to give in if the DOJ were to order Modelo’s US imports to be produced by a third party.

 

Perhaps that’s because ABInBev is not necessarily after Modelo’s US market share – but its 59 percent control of the Mexico beer market. Modelo, according to ABInBev, is also the leading import beer in 38 countries. Conversely, the US beer market is stagnant, with shipments eking out a small gain last year after three straight annual declines.

 

In its presentation to investors, Busch also says the deal will create at least $600 million in annual cost synergies, phased in over four years.

 

The DOJ, with jurisdiction only in the US, cannot place conditions outside the domestic market.

 

A Busch spokeswoman said the company is not commenting on the review and continues to expect the merger to close at the end of the first quarter. The DOJ declined to comment.

 

 

——

GuestMetrics reports Q4 and Holiday On Premise Alcohol Beverage Performance

 

Source: GuestMetrics

Jan 13th

 

On-premise alcohol sales close out 2012 with a weak 4Q12 and holiday season, though craft beers and ultra premium wines continue to show strong growth from the prior year.

 

According to GuestMetrics, based on its proprietary database of POS transactions of over $8 billion dollars in transactions and over 250 million checks from restaurants and bars across the United States over the past two years, 2012 closed out the year with a relatively weak 4th quarter and holiday season.  “Comparing the year-over-year trends of the first nine months of the year against those of the final quarter, we see the number of alcoholic beverages sold deteriorated during the final quarter of the year, including the holiday season, which is obviously important for restaurants and their suppliers given December is the second largest month of the year for the on-premise sector.” said Bill Pecoriello, CEO of GuestMetrics LLC.  Based on data from GuestMetrics, total alcoholic beverages units sold in on-premise was flat for the first 9 months in 2012 compared to the same period for 2011, but then decelerated in 4Q12 by approximately 1.5 points. This brought full year 2012 on-premise alcohol units down about 30 basis points versus the prior year.   Looking specifically at December, alcoholic beverages were weaker than the overall 4Q12 trend by about 1 percent, primarily due to there being one less Friday in December 2012 than in December 2011.

 

“Looking at the deceleration in trends of 4Q12 versus the first nine months of the year, we believe this is indicative of a consumer base that likely cut back on discretionary spending in the face of unusually high levels of macro-related uncertainty towards the end of the year,” said Peter Reidhead, VP of Strategy and Insights at GuestMetrics.  According to data from GuestMetrics, the deceleration was seen across all three alcohol categories, with the number of beers sold slowing about 1.5 points (from -0.5% for the first 9 months to -2% for the 4th quarter), spirits volume also slowing about 1.5 points (from flat for the first 9 months to -1.5% for the 4th quarter), and wine volume slowing the most at nearly 3 points (from +2.2% for the first 9 months to -0.6% for the 4th quarter).

 

“Looking specifically at the beer, spirits, and wine categories, we see that the sub-segments within each faired differently,” said Brian Barrett, President of GuestMetrics. “In beer, premium regular suffered the largest slow-down in the final quarter compared to the first 9 months of the year, slowing nearly 5 points, premium light slowed about 2 points, and craft and imports both slowed about 1.5 points, though craft still grew solidly against 2011.  In spirits, the biggest deceleration was seen among premium brands at about 3 points, while super premium, high end premium, and cocktails all slowed about 1.5 points.  And lastly, looking at wine, the slow-downs are inversely related to the price tiers, with economy slowing nearly 4 points, super premium and popular premium both slowing about 2 points, and ultra premium holding up the best with a slight deceleration of about one point, but similar to craft beers, still growing at a healthy clip against 2011.”

 

About GuestMetrics LLC

GuestMetrics, LLC is revolutionizing how the hospitality industry operates.  Despite the dawn of the Digital Age having begun more than three decades ago, the hospitality industry essentially functions the same way it did centuries before.  GuestMetrics has cracked the code by collecting data from tens of thousands of restaurants and turning billions of raw transactions into intelligible data that is fundamentally transforming the business operations of everyone from the independently-owned bar/restaurant on the corner, to multi-national chains, to the food & beverage companies that supply them.  Please visit www.GuestMetrics.com for more information and to arrange for a free demonstration.

 

 

——

Lobbyists help smooth the way for Diageo’s jumbo-sized tax breaks (Excerpt)

 

The deal will mean Diageo saves many millions more dollars in rebates

 

Source: The Independent

Jim Armitage

Friday 11 January 2013

 

Global Outlook All that fiscal cliff business had investors reaching for the drinks cabinet over the new year. But when the bill was passed, one British corporate giant had more reason to celebrate than most. For, believe it or not, thanks to the weird world of United States lobbying, the Smirnoff-to-Guinness giant Diageo emerged as one of the biggest beneficiaries.

 

While we naïve observers in the rest of the globe thought the legislation was all about saving the US from economic collapse, in fact, for a small but powerful Washington lobbying elite, it was more about driving through a few jumbo-sized special-interest-group tax breaks.

 

The rest of the world, and US taxpayers, focused on the deep public spending cuts and tax rises for the wealthy presaged by the bill, but President Barack Obama shoehorned in a host of completely unrelated “pork barrel” tax breaks for big business.

 

One of them was a two-year extension to the tax break mainly benefiting Diageo’s Captain Morgan rum distillery in the US Virgin Islands.

 

The deal will mean Diageo saves many millions more dollars in rebates, which rivals argue makes it hard for the company ever to lose money on the liquor.

 

It’s impossible to state exactly how much Diageo will save as the break is based on how much rum the company manages to shift from its shiny new distillery in the US territory. Some reports have put the annual benefit at around $50m (£31m).

 

You could argue that’s not much for a multi-billion dollar operation like Diageo, but it’s a whole lot more than the company paid the Washington lobbyists Trent Lott and John Breaux to push for the change. Data obtainable through the OpenSecrets.org website suggest Diageo paid the pair’s firm only $120,000 last year.

 

Perhaps the duo, a former Republican and Democrat senator, should up their rates. They may need to, since another client, the Lance Armstrong Foundation, may not be paying its $100,000-$250,000 annual lobbying dues for much longer.

 

As a Brit, whose pension is, I presume, partly invested in the world’s biggest drinks company, it’s hard not to have mixed feelings. On the one hand, you have to admire Diageo for its political nous in hiring two of the most effective lobbyists in Washington to do its bidding so well. The way the White House jingoistically abused BP after the Deepwater Horizon disaster highlighted how British firms don’t always play the game with such elan.

 

But this kind of lobbying in foreign climes is reputationally risky. As the US media focused on the Armageddon Averted fiscal cliff story, the tale of Diageo’s nice little earner didn’t cause much of a stink. But think about it: “hard-pressed American taxpayers bail out Limey booze peddlers,” could have played pretty big in other circumstances.

 

Incidentally, Diageo, which did not comment on my queries about this story, managed to get tax incentives worth some $2.7bn when it moved its Captain Morgan distillery from impoverished Puerto Rico to the US Virgin Islands.

 

 

——

Drinks industry attacked over Facebook use

 

Source: OLN

By Martin Green

11 January, 2013

 

Alcohol suppliers have been slammed for using Facebook to encourage drinking in a two-pronged attack from the chairman of the Alcohol Health Alliance and a former president of the Royal College of Physicians.

 

Professor Sir Ian Gilmore and Dr Adrian Bonner, now an addiction specialist at the University of Kent, accused the industry of failing in its Responsibility Deal.

 

The deal is designed to “foster a culture of responsible drinking, which will help people to drink within guidelines” but the duo said drinks companies’ Facebook activities undermine the project.

 

They believe Facebook users are encouraged to “celebrate alcohol-fuelled culture” on alcohol companies’ Facebook pages.

 

They reserved their most stinging criticism for Diageo. The British company signed a multi-million dollar deal with Diageo and saw awareness of its main five brands – Smirnoff, Captain Morgan, Baileys, Jose Cuervo and Crown Royal – increase by around 20%, while 950 staff were sent to “Facebook boot camps” to learn how best to exploit the social network.

 

Gilmore and Bonner, writing in medical journal Addiction in a joint statement, said “sophisticated digital marketing engagement” on the Smirnoff NightLife Exchange project, which was fronted by Madonna in late 2012, was a particular cause for concern.

 

They said: “An effective alcohol policy is needed to counterbalance the alcohol-fuelled culture promoted by user-generated activity in Smirnoff Nightlife Exchange.

 

“The concept of [the Responsibility Deal] will be significantly undermined unless corporate social responsibility is consistent in all activities across individual organisations and the whole sector.”

 

They poured further scorn on the Deal, adding that “it remains to be seen whether or not these voluntary ‘pledges’ will be translated into reductions of alcohol related harm”.

 

Henry Ashworth, chief executive of the Portman Group, said: “There are strict rules which apply to alcohol marketing on social networks which are operated by the Advertising Standards Authority and the Portman Group which ensure that alcohol is only marketed to adults and not in a way that could encourage excessive or inappropriate consumption.”

 

A Diageo spokesperson added: “Diageo only ever markets its products to over 18s. Its partnership with Facebook complies with all the codes governing the marketing of alcohol and the brands also use it as a platform to promote responsible drinking to their followers.”

 

 

——

Beer: Nielsen C-Store Data Analysis: Beer C-Store Dollar Sales Growth Continues to Decelerate (+1.7% YoY), Driven by Volume Declines (-1.5% YoY)

 

Source: CITI

Jan 11th

 

Beer C-Store Dollar Sales Increase Modestly – In the four-week period ended Dec. 22, 2012, c-store beer dollar sales increased 1.7% YoY (vs. +3.6% last period and +5.0% over the last 52 weeks), the third consecutive month of decelerating growth. The growth was driven by a 3.3 pt contribution from pricing (vs. +3.5 pts last period and +3.5 pts over the last 52 weeks), as volume sales declined 1.5% YoY (vs. +0.1% last period and +1.5% over the last 52 weeks). We highlight that the volume sales decline seen in the period is likely attributable, in part, to Christmas timing (as the year-ago period included sales through December 24), though likely not to the same extent as was seen in the xAOC data released last week.

 

MillerCoors’ Miller Lite Weighs on Results – TAP’s MillerCoors JV also saw its dollar sales growth decelerate for the third consecutive period, to +0.7% YoY (vs. +1.8% last period and +2.8% over the last 52 weeks). While the Coors Light brand continued to post solid dollar sales growth (+4.1% YoY), the company’s results were negatively affected by Miller Lite (-2.1%), Keystone Light (-6.5%) and Miller High Life (-5.0%). MillerCoors’ volume sales were down 1.6% YoY in the period and price/mix contributed 2.4 pts to sales.

 

Crown Imports Continues to Outperform – STZ’s Crown Imports JV continued its relative outperformance, posting dollar sales growth of 6.4% YoY (vs. +15.6% last period and +13.5% over the last 52 weeks). Crown’s solid results were primarily driven by the 27.2% dollar sales growth posted by the Modelo Especial brand, as sales for both the Corona Extra (-1.5%) and Corona Light (-4.8%) brands declined in the period. Total-company volumes grew 4.9% YoY in the period, and price/mix just contributed 1.5 pts. As we recently noted (Constellation Brands (STZ) – Innovation and Investment Spending Drive Solid Results, published Jan. 9, 2013), we’ll continue to monitor the outsized growth being seen for Modelo Especial and the effect on Crown’s margins, given the lower price point of the brand.

 

Boston Beer’s Seasonal Offerings Drive Further Growth – SAM posted dollar sales growth of 10.7% YoY in the four-week period (vs. +21.0% last period and +14.2% over the last 52 weeks). SAM’s seasonal offerings (+25.5% YoY) continued to drive the company’s growth, offsetting declines for the Samuel Adams Boston Lager (-7.9%) and Sam Adams Light (-22.9%) brands. The company’s dollar sales growth in the period was driven by an 8.1% YoY increase in volumes and a 2.6 pt contribution from price/mix.

 

 

——

STZ: Minding Our Ks and Qs: Our Read of STZ’s 3Q13 10-Q

 

Source: CITI

Jan 11th

 

Tidbits Worth Noting – In their 3Q13 10-Q, filed Jan. 9, 2013, STZ offered additional details regarding its new accounts receivable securitization facility; the grape supply, f/x and interest rate risk; the company’s derivative exposure and foreign currency contracts; its cash flow hedges and its indemnification liabilities; and the gross margin for the Crown Imports JV, which was 29.2% in 3Q13 (essentially unchanged YoY).

 

FCF Declines Owing to Lower CFO Generation – STZ generated positive free cash flow of $337 million through 3Q13, below the $587 million in free cash flow generated in the year-ago period. The decline can be attributed primarily to lower operating cash flow (resulting from lower net income and higher working capital requirements).

 

Investing Cash Flow Usage Increased – STZ used $200 million on investing activities through 3Q13, while the company used $119 million on investing activities in the year-ago period (a difference we attribute primarily to STZ’s purchase of the Mark West wine brand for $160 million in 2Q13).

 

Financing Cash Flow Usage Decreased – STZ used $72 million on financing activities through 3Q13, below the $475 million used in the year-ago period. The YoY difference is largely attributable to the company having issued $2.0 billion of long-term debt in 1H13.

 

Conclusion – We are encouraged by STZ’s expected acquisition of Crown Imports (detailed in our recent note AB-InBev (ABI.BR) – DoJ Likely to Have Limited Impact – Good Time to Buy , published Jan. 11, 2013) and by the company’s innovation and packaging upgrade initiatives and improving wine share trends. That said, we believe these positives are largely priced into the stock. We maintain our $38 target price on STZ, and as this reflects only ~6% upside from current levels, we reiterate our Neutral (2H) rating on the stock.

 

 

——

Belgium resists Arnault citizenship bid

 

Source: FT

By Scheherazade Daneshkhu in Paris and James Fontanella-Khan in Brussels

Jan 11th

 

The French actor Gérard Depardieu may have secured a Russian passport but Bernard Arnault, France’s richest man, is finding it harder to get a Belgian one.

 

The Brussels prosecutor has advised against granting citizenship to the head of LVMH, the world’s biggest luxury goods group, saying he has not resided in the country long enough. Applicants need usually to have lived in the northern European country for at least three years.

 

The prosecutor’s office added: “There is also a preliminary examination of his businesses in Belgium.” It is standard practice in Belgium to scrutinise the companies of a citizenship applicant.

 

It is the second agency to have rebuffed the naturalisation requests made by the owner of brands that include Christian Dior, Dom Pérignon and Louis Vuitton.

 

As a symbol of French savoir faire, Mr Arnault caused a furore in France last September when he was forced to admit that he had applied for a Belgian passport, but insisted he would remain fiscally domiciled in his homeland.

 

Unlike the outspoken Mr Depardieu, who has been openly critical of the high tax policies of François Hollande, the socialist president, Mr Arnault has been verbally circumspect.

 

A spokesman for the billionaire said on Friday: “This is one stage in a process of application for dual nationality and does not prejudice the final decision.”

 

Late last year, the immigration office concluded that Mr Arnault did not fulfil the three-year residency condition to obtain Belgian nationality.

 

A final decision on his case will be made by a parliamentary committee, which will take into account recommendations made by the immigration office, the prosecutor and the state security department.

 

L’Echo, a Belgian daily, reported last month that Mr Arnault’s holdings in Belgium included several companies based in small apartments in the luxurious Avenue Louise, with combined assets of ?7bn.

 

In response to allegations of operating mailbox companies, LVMH and Groupe Arnault, the billionaire’s private investment vehicle, issued a statement saying they “comply fully with fiscal regulations in Belgium as well as international law”.

 

Belgium has become a popular destination for French citizens fleeing the 10-month-old government’s high-tax regime. The number of French people seeking Belgian citizenship doubled last year compared with 2011, according to Belgium’s naturalisation committee.

 

When Jean-Marc Ayrault, France’s prime minister, labelled as “pathetic” Mr Depardieu’s decision to leave France, the actor jetted to Moscow last week where he dined with Vladimir Putin, Russia’s president, and was granted a Russian passport.

 

Mr Hollande’s 75 per cent marginal rate on incomes above ?1m was struck down by the country’s constitutional council on the eve of its introduction on January 1. The government has yet to formulate an alternative, but has reiterated its commitment to higher taxes on the wealthy.

 

Mr Hollande is attempting to negotiate a tricky path between promoting France as an attractive country in which to invest and raising taxes on the wealthy, as a matter of “social justice” to help push through unpopular labour reforms aimed at easing high unemployment and stimulating the economy.

 

 

——

GS survey suggests a robust consumer, but tax increases loom

 

Source: Goldman Sachs

Jan 11th

 

Consumer sentiment hit new highs in 4Q12 despite the fiscal cliff

Consumer sentiment reached new post-recession highs in our most recent survey of 2,000 US consumers, which was fielded in December. In fact, the number of consumers reporting optimism about the state of the economy was higher than in the 2005/2006 pre-crisis base period. This comes in spite of the recent fiscal cliff debate, which seems not to have dented consumer optimism (as the debt ceiling crisis implied in our survey in 2H 2011).

 

Cars/electronics are being prioritized over restaurant visits

At the category level, consumers reported an increased propensity to spend in the future on autos and electronics. On the flipside, consumers reported a decreased likelihood to visit restaurants in the coming months. While optimism is generally high, in this environment of only moderate consumer discretionary cash flow increases, and thus forced choices, it appears consumers need to pull back in some areas to support spending.

 

Impending tax increases could derail the positive trends

72% of the consumers that we polled expect their taxes to increase in 2013. This figure is split between 44% who believe they will therefore reduce their household spending as a result versus 28% who do not. From a demographic perspective, the cohorts with the highest self-reported likelihood of a pullback in spending as a result of higher taxes are those with $50-120K of household income and those aged 45-64 years old.

 

Underlying strain for 55+ age cohort and under $50K income HHs

While the data was generally positive, there were two areas of underlying strain that presented themselves in the data:

 

(1) Consumers aged 55+: Consumers aged 18-34 years old showed the greatest improvement in optimism and propensity to spend going forward. On the flipside, those aged 55+ reported an increase in credit card debt over the past six months to support spending patterns, and indicated a moderately reduced likelihood to spend going forward.

 

(2) Households with under $50K of income: Households with $50-90K of income and those at $90K+ both indicated an increase in optimism in 4Q12. Those under $50K, however, reported modestly reduced optimism about the state of the economy and a reduced likelihood to spend in 2013.

 

 

——

Wells Fargo’s Weekly Economic & Financial Commentary

 

Source: Wells Fargo

Jan 11th

 

U.S.

.         Economic growth for 2013 is projected to start at just 1.0% in the first quarter.

.         The economy should gain momentum through the remaining three quarters as households and businesses adjust to the new fiscal framework and residential construction activity expands.

.         The sluggish start to the year will likely encourage the Fed to keep its monetary easing policies in place.

.         Federal spending curtailments and budget cuts are expected to limit state and local spending recoveries.

.         While the economy will continue to improve in 2013, the biggest challenge will be living in a slow growth economy that demands prudent spending decisions by both the public and private sectors.

 

International

.         The main ECB rate remains unchanged at 0.75%, despite recent weak economic data from Germany and France.

.         Weakness in German and French industrial production likely means that real GDP growth for the Eurozone was negative in 4Q12 for the fifth consecutive quarter.

.         However, data indicates that the service sector remains somewhat stronger than the industrial sector, suggesting that economic activity may be stabilizing.

.         A gradual recovery in Europe is expected over the course of 2013 as financial conditions have eased and export growth is projected.

 

Point of View

.         Interest Rate Watch

.         Fed purchases will continue increasing liquidity in the marketplace for the foreseeable future.

.         While the debt ceiling debate could create a shortage of floating Treasury debt, Treasury yields will likely rise only modestly this year.

.         Credit Market Insights

.         Non-revolving debt increased at an annual rate of 9.5% in November, with a majority stemming from the federal government and student loans.

.         Growing student loan debts are causing some students to question the benefits of higher education.

 

Topic of the Week

.         Health Spending: Secular Growth, Cyclical Trend

.         Health expenditures as a share of GDP remained high at 17.9%.

.         The growth in health expenditures has slowed recently due to the recession, widespread substitution of generic prescription drugs, and waning hospital price growth and service usage.

.         The government has increased its share of national health expenditures, resulting from the aging of baby boomers; the government’s share will likely rise in coming years as Medicare coverage expands.

 

 

——

Cross-country patchwork of happy hour laws bars cut-price cocktails in some states

 

Source: Washington Post

By Associated Press

January 9

 

During “happy hour” at the Summer Winter bar in Burlington, Mass., the bargain is on the bivalves, not the brews.

 

That’s because Massachusetts legislators passed a law in 1984 banning bars from offering cut-price drinks. So James Flaherty, the bar’s director of food and beverage, decided to use shellfish specials to draw customers.

 

“We’ve had to get creative by offering something other than a typical happy hour,” he said. “Having a raw bar at the heart of the restaurant, we launched Oyster Happy Hour to appeal to the after work crowd with fresh, local selections and it’s become a popular draw.”

 

And Massachusetts isn’t alone. The concept of happy hour – when bars offer lower prices or two-for-one specials – may seem like an American tradition, but is in fact illegal or restricted in quite a few places.

 

Laws vary by state, and even districts within states, so it’s hard to get a handle on the national picture, but Ben Jenkins, vice president of government communications for the Distilled Spirits Council of the United States (DISCUS), has noted some recent activity aimed at updating happy hour laws.

 

A few states, including Oklahoma, Massachusetts and Virginia, recently have considered changes to existing restrictions. The bills failed, but are likely to re-emerge.

 

Meanwhile, happy hour became legal in Kansas last year after a 26-year ban. In 2011, Pennsylvania extended happy hour potentials from two to four hours and New Hampshire changed its law to allow establishments to advertise drinks specials.

 

DISCUS does not take a position on happy hour bills, but Jenkins sees the activity in the context of a larger modernization trend. “States across the country are updating their liquor laws to provide better consumer convenience and increased revenue without raising taxes,” he says.

 

The patchwork nature of the laws is a holdover from Prohibition, when states were left to set regulations once the federal ban had been repealed. Some of the laws written then are still on the books, which can strike an anachronistic note today. For instance, it’s still illegal to sell alcohol in South Carolina on Election Day. And it may surprise you to know that Moore County in Tennessee is “dry” and also home to the Jack Daniel Distillery.

 

The reasoning behind happy hour bans or restrictions generally stems from concerns that lowering prices will encourage high consumption and its ensuing problems.

 

“Some communities have issues of morality regarding promoting the drinking of alcohol or concerns regarding the kinds of behavior that can come from drinking too much,” notes Kyle-Beth Hilfer, an advertising and marketing attorney with the New York-based law firm Collen IP.

 

Having so many different rules means bar owners and restaurateurs need to keep up with changes in the laws and read existing statutes carefully, says Hilfer.

 

Some states allow happy hours, but ban advertising them. Oregon, on the other hand, is OK with bars advertising general happy hours but not specific price discounts. Utah outlawed happy hours in 2011.

 

Advertising also can be tricky. A state may OK advertising happy hour specials, but going beyond the simple price and inviting customers to “lose weight at our low-carb beer happy hour,” could be subject to regulation by state alcohol beverage officials, Hilfer explains. She recommends that proprietors of venues that serve alcohol and have happy hours have a lawyer vet advertising copy.

 

Social media has added a new twist to the mix. In Virginia, it’s illegal for bars and restaurants to advertise happy hours in electronic media, radio, TV and the Internet, a law that goes back to 1984, long before Twitter had left the nest. This year, Virginia legislators considered changing the rules, though the bill ultimately was withdrawn, partly due to concerns about underage drinking.

 

This wasn’t Virginia’s first time to update old laws. In 2006, a tapas restaurant was cited for serving sangria because its recipe, a mix of red wine, brandy and fruit, violated a 1934 law prohibiting the mixing of wine or beer and spirits.

 

In 2008, lawmakers passed a bill sanctioning sangria.

 

 

——

WASDE report reveals continued tightness in global grain inventories

 

Source: Goldman Sachs

By Adam Samuelson and Evan Stampler, Ph.D

Published 11 Jan 2013

 

USDA released its January WASDE and Grain Stocks reports this afternoon, which was broadly positive for corn, revealing lower-than-expected December 1 inventories as feed demand remains more resilient than previously forecast. While US/global production expectations were modestly increased, this was more than offset by higher feed demand, resulting in USDA’s 2012/13 US corn stocks/use forecast moving to 5.3% from 5.8% and global stocks/use moving to 13.4% from 13.6%. Exceptionally tight US/global inventories reinforce our expectation for crop prices to remain elevated in 2013. We remain Attractive on the Fertilizer sector, with a continuation of elevated crop prices providing a very supportive farmer income backdrop, which we expect to underpin solid fertilizer demand in 2013. Our key takeaways are outlined below.

 

Grain stocks

 

Corn – USDA estimates December 1, 2012, corn inventories of 8.0 mn bu, which compares with consensus expectations of 8.2 bn bu and year-ago inventories of 9.6 bn bu, and the lowest December 1 inventory since 2003/2004. With quarterly use of corn for FSI (1.5 bn bu) and exports (0.2 bn bu) largely known, this implies September-November quarterly feed and residual use of 2.1 bn bu, which is 13% above year-ago levels.

 

Soybeans – USDA estimates December 1, 2012, soybean inventories of 2.0 mn bu, which was in line with consensus expectations of 2.0 bn bu but well below year-ago inventories of 2.4 bn bu, and the lowest December 1 inventory since 2003/04. With quarterly use of soybeans for crush (0.5 bn bu) and exports (0.6 bn bu) largely known, this implies September-November quarterly residual use of 105 mn bu.

 

WASDE

Corn – With this report USDA finalized its estimate of the size of the 2012/13 crop at 10.8 bn bu based on a yield of 123.4 (vs. 122.3 bu/acre prior, consensus expectations of 122.4 bu acre, and 147.2 bu/acre last year). Despite concern over the potential for a significant cut to harvested acreage, USDA made only a modest tweak, lowering harvested by 0.3 mn acres to 87.4 mn acres (vs. 87.7 mn acres prior). This is partly a function of planted acreage being revised higher to 97.2 mn acres, which put the abandonment rate at 10%, which is well below the 14% abandonment rate seen during the last major drought in 1988/1989. On the demand side of the ledger, USDA raised feed and residual use by 300 mn bu, as the quarterly trend tracked above expectations, but this was largely offset by a 200 mn bu reduction in exports to 950 mn bu, the lowest export figure since 1971/1972. Ending inventories were estimated at 602 mn bu. (vs. 646 mn bu prior, consensus expectations of 667 mn bu, and 988 mn bu last year). On the international front, production estimates were changed in Argentina (+0.5 mmt), Brazil (+1 mmt), and FSU (-0.5 mmt), but this was offset by higher feed demand, driving global stocks-to-use lower to 13.4%.

 

Soybeans – With this report USDA also finalized its estimate of the size of 2012/2013 soybean crop at 3.0 bn bu based on a yield of 39.6 bu/acre (vs. 39.3 bu/acre prior, consensus expectations of 39.6 bu/acre, and 41.9 bu/acre last year). In total, production was raised 44 mn bu to 3.0 bn bu, which was largely in-line with consensus expectations (3.0 bn bu). On the demand side of the ledger, USDA raised domestic use by 40 mn bu, based on higher crushings. Ending inventories were estimated at 135 bn bu (vs. 130 mn bu prior, consensus expectations of 135 mn bu, and 169 mn bu last year). On the international front, Latin America production was raised 0.5 mmt, but this was offset by higher global crushing, putting global stocks-to-use at 22.4%.

 

 

——

NABCA Legislative Update: December 15, 2012-January 11, 2013

 

Source: NABCA

Jan 11th

 

Summary of legislation pertaining to the alcohol industry. Reports include bills and regulations active in the month/timeframe below.

 

December 15, 2012-January 11, 2013

 

http://www.nabca.org/News/Files/130111%20Legislation%20and%20Regulation%20State%20Update.pdf

 

http://www.nabca.org/News/Files/130111%20Legislation%20and%20Regulation%20Category%20Update.pdf

 

http://www.nabca.org/News/Files/130111%20Regulatory%20Update.pdf

 

——

News From TTB

 

Source: TTB

Jan 11th

 

ACTING DIRECTORS NAMED FOR THE REGULATIONS AND RULINGS DIVISION (RRD)

Effective January 4, Angela Jeffries and Amy Greenberg will alternate as Regulations and Rulings Division (RRD) acting director, beginning with Jeffries, until the position is filled permanently. They will continue a 45-day rotation cycle until further notice.

 

 

——

Foley expanding wine empire with recent acquisitions

 

Source: THE PRESS DEMOCRAT

By CATHY BUSSEWITZ

January 12, 2013

 

When a winery goes up for sale in Sonoma County, Bill Foley is the first one brokers call.

 

Foley, who made his fortune in the title insurance industry, says he has poured more than $200 million of his own money into the wine business since buying his first winery in 1996. He now presides over a collection of 16 wineries from Alexander Valley to New Zealand, including four acquired in the past year alone, making him one of the most active buyers in Wine Country.

 

“Once I get into something, I go all in,” Foley said. “I just keep on going. I don’t stop with just one little thing. I just keep trying to grow it and make it bigger and to keep on improving.”

 

Wine has become both a lifestyle and a strategic business opportunity for the 68-year-old insurance executive, who moved the base of his wine operations to Sonoma County in 2008. He now spends five months of the year at his home on the grounds of Chalk Hill Winery in the hills east of Windsor.

 

Colleagues and competitors say the former Air Force officer is both disciplined and decisive. He continually searches for wineries with untapped value and acts swiftly when he finds them to unlock their potential, consolidating back-office functions while giving creative license to winemakers and vineyard managers.

 

Foley has openly tried to emulate the late Jess Jackson, who built Jackson Family Wines into one of the world’s largest wine companies before his death in 2011. Both men share similar traits, said Tim Matz, who worked as a senior executive under Jackson and Foley.

 

“They’re very intelligent, visionary, and willing to take a risk,” said Matz, now managing director of Accolade Wines’ North American operations. “And when a mistake is made, they just keep moving forward. They don’t look back.”

 

But the self-described “serial acquirer” comes across as remarkably relaxed, quick to laugh and joke about his dogs, his Texas roots and his music preferences, which range from Italian opera singer Andrea Bocelli to pop star Taylor Swift.

 

On days when the weather is right, Foley enjoys walking along a three-mile path at Chalk Hill with his wife of 42 years, Carol, and their three dogs.

 

A cattle rancher who proudly traces his lineage to the Texas cowboys portrayed by actors Robert Duvall and Tommy Lee Jones in the classic TV miniseries “Lonesome Dove,” Foley clearly prefers Sonoma over Napa.

 

“Napa’s interesting, but it’s too congested,” Foley said recently while driving around the vineyards at Chalk Hill in his silver convertible Mercedes. “This is still country over here.”

 

Foley is viewed as an outsider by many in the wine industry, which he attributes to his busy schedule scouting target acquisitions.

 

“I really don’t have much time,” Foley said. “I like to go out and have some dinner and talk to people, but I just haven’t done it.”

 

During his visits to Sonoma County, he works 70 to 80 hours a week by his estimate. The remaining time is split among properties in Florida, New Zealand and Montana, where he owns high-end resorts and golf courses.

 

He enjoys playing golf and hanging out with wine industry brokers and other business executives who now live in Wine Country. He does make time for his closest friends, classmates from West Point, whom he’s known since he entered the military academy in 1963.

 

“The older we’ve gotten, the closer we’ve gotten,” he said.

 

Foley graduated with an engineering degree from West Point and then served in the U.S. Air Force, where he attained the rank of captain. He planned to spend four days with 16 classmates in Santa Barbara this month.

 

During the Vietnam War, Foley lost 30 of 584 classmates, he recalled, a memory that drives his charitable giving to the Wounded Warrior Project. At Chalk Hill, he recently held a fundraiser for veterans returning from Afghanistan, which was attended by vets who had lost limbs or suffered from mental trauma.

 

“That was a real tear-jerker,” Foley said. “It’s tough.”

 

After completing his military service stateside, Foley earned an MBA from Seattle University and a law degree in 1974 from University of Washington. He spent the next decade practicing corporate and real estate law in Phoenix, where he acquired a small title insurance company in 1984.

 

Over the next two decades, Foley led the company through a series of buyouts that created the largest title insurance company in the United States. Fidelity National Financial, which generates $5 billion in revenues annually, provides insurance that protects landowners from challenges to their ownership of a property.

 

Foley stepped down as CEO in 2007 but continues to serve as chairman of the company, which has an acquisitions arm that owns hundreds of steakhouses and restaurants, an auto parts manufacturer and a minority interest in WineDirect, a wine industry fulfillment, compliance and software business, to name a few.

 

Expanding into wine

 

Foley entered the wine business in 1996 with the acquisition of Lincourt Vineyards in Santa Barbara County, which he named after his daughters Lindsay and Courtney. He later established Foley Estates Vineyard in the Santa Rita Hills, and bought Merus, a cult cabernet sauvignon producer in Napa Valley, among others.

 

He expanded into Sonoma County in 2008, buying historic Sebastiani Vineyards and Winery in Sonoma, and moved management of the wine group to Sonoma County. With that acquisition, his business turned a corner financially, because he was able to consolidate the back-office functions across his wineries and realize more efficiency.

 

As the leader of a Fortune 500 company, Foley was surprised by the lack of business knowledge that he found in the wine industry.

 

“We had metrics we ran the business by, and we were very disciplined,” Foley said. “And when I got into the wine business, I found, a lot of times, it was people that wanted to have a good time. They didn’t really quite understand their cost of goods, how to sell the wine, make a profit, how to establish their direct-to-consumer businesses.”

 

Foley is pleased with his current wine team. But he’s been known to have high turnover among his senior executives.

 

He’s demanding, he says, and needs people who can adjust to his company’s fast growth. If his staff can keep up with him, they’re rewarded. If not, he makes a change.

 

“My theory I’ve always had, in all the companies I’ve ever been involved with, is that if you allow mediocrity to survive in an organization, then increasingly everything becomes mediocre,” Foley said. “So we just don’t allow it.”

 

In the acquisition stage, Foley taps a small, elite team of mergers and acquisitions executives from Fidelity National Financial to perform due diligence before he buys.

 

“They’re a little like Delta Force,” said Mario Zepponi, co-owner and partner at Zepponi & Co., a mergers and acquisitions firm. “You have these special operations units that are so effective that they do the job of four or five people, because they’re so exceptional, so talented.”

 

Once the sale is complete, Foley is quick to transfer responsibility to trusted associates.

 

“They’re not only business associates, but friends,” Foley said.

 

Allure of wine

 

Foley did not enter the wine business until the age of 52, but has found it invigorating.

 

“It’s not really work. I’m just kind of having a good time,” Foley said. “I’m fooling around trying to make decisions, trying to get things organized, trying to work problems out and then have a successful solution at the end of that problem-solving time.”

 

Owning wineries and their land gives him the chance to sit in on blending sessions with world-class vintners and roam the Chalk Hill vineyards with his chief viticulturist, learning what happens at every stage of the grape-growing process.

 

The business of wine, including dealing with distributors and negotiating the patchwork of laws that regulate alcohol sales, is enough of an intellectual challenge to keep him entertained.

 

“I do something for a while and I have to go do something else,” Foley said. “I have to keep the activity going in my life. And wine and vineyards, and buying other wineries and consolidating them, or buying vineyards and consolidating them, that’s a lot of activity. So I’m not bored in this business. It’s exciting every day.”

 

Even with annual revenues of about $100 million, he says his wine holdings are still not profitable from a tax standpoint.

 

That, in part, caused him to double-down on his investment in the wine industry. His acquisition spree – 16 wineries in 16 years – is designed to give Foley more clout with distributors that push wine out into stores and restaurants.

 

Foley aims to produce 2 million cases annually, nearly double his current size. Last year, the network of wineries under Foley Family Wines sold 1.15 million cases worldwide. About 825,000 cases were sold in the United States and the rest in Australia, New Zealand and the United Kingdom.

 

“I thought a million (cases) was enough, but it’s not,” Foley said. “I need more influence with these distributors. … You’ve got to have a lot of brands, and you’ve got to show them how they can make money off your products when they sell them.”

 

The finer things in life

 

Wine is not just a business for Foley. He makes time to enjoy the finer things in life, like an artfully prepared meal, a glass of wine, a good golf course, and friends to share in those pleasures.

 

In Sonoma County, he’s eating and drinking the best the region has to offer, whether in restaurants or in the homes of culinarily gifted friends. At his home in Montana, he gets in a good workout every day.

 

“I go up there, lose weight, come back here, gain 20 pounds,” Foley said with a laugh. “Up 20, down 20.”

 

On the golf course, he displays an intense competitive streak, says longtime friend Ted Simpkins, who sold Lancaster Estate Winery in Healdsburg to Foley last year. He called Foley a “man’s man,” adding “what you see is what you get.”

 

“He hates to lose,” Simpkins said.

 

Looking ahead, Foley still plans to expand his footprint in Napa and Sonoma, and is on the lookout for an Oregon winery and a hotel on Highway 29 in Napa. He’s value-oriented, but “trying not to be cheap,” he said.

 

But he just passed on two wineries he was considering, he said.

 

“I passed on them because my wholesale guys and my infrastructure are ready to break,” Foley said. “We’re slowing down. We have to digest what we’ve taken on here.”

 

To draw people to his network of wineries, resorts and golf courses, he is preparing to launch a membership program, called the Foley Food and Wine Society, which will reward his most loyal customers with discounts and access to exclusive experiences.

 

When the empire building is complete, Foley has a succession plan. Three of his four children, who range in age from 26 to 35, work in the wine industry. Daughter Courtney, 29, works as the Central Coast sales rep for Foley Family Wines and wants to be a winemaker. His son, Rob, 33, works at Chalk Hill and is interested in administrative and finance roles. His youngest son, Pat, 26, is on his way to New Zealand to get a masters degree in viticulture and enology.

 

They’ve logged overnight shifts in the vineyards, early morning distribution runs and stints in the tasting room.

 

“My kids work from the ground up,” Foley said. “They’re not afraid to work, and they’re not afraid to work for kind of slave wages,” he added with a laugh.

 

“Eventually, they will be running the business, which is great,” he said. “And they will know the business inside and out. I am very proud of them.”

 

 

——

Chardonnay Flood Buoys Australian Wine Exports as Prices Decline

 

Source: Bloomberg

By David Fickling

Jan 13, 2013

 

Rising demand for cheaper chardonnay lifted export volumes of Australian wine even as the value of overseas sales declined for a sixth year running.

 

Exports of chardonnay in so-called bulk containers climbed 37 percent to 117 million liters in 2012, Louisa Aherne, a spokeswoman for government-backed industry body Wine Australia, said in an e-mail today. Total export volume rose 3 percent.

 

Australia, the fourth-largest wine exporter, is using cheaper modes of transport and attempting to build higher-value brands in new markets such as China as it struggles with a stronger currency that’s made it harder to compete with U.S. and European vintages. Dry weather in the southern spring means the 2013 vintage should be a good one, Bernard Hickin, chief wine- maker for Pernod-Ricard SA (RI)’s Jacob’s Creek brand, said in an e- mailed statement.

 

“We’ll see some great wines from this year across a number of varietals and regions,” he said. While recent hot weather, which hit 42 Celsius (108 Fahrenheit) in the wine-producing town of Mildura on Jan. 11, presented challenges, a dry winter and spring “will make wines from 2013 show tremendous concentration of flavors and silky textures,” Hickin said.

 

The company will start crushing chardonnay grapes from Mildura in Victoria state and the Riverland region in South Australia today, according to the statement.

Bulk Exports

 

Bulk wine, in which the beverage is packed in giant bladders inside shipping containers and bottled in its end- market rather than at the vineyard, overtook bottled exports last year, Wine Australia said.

 

The growth of lower-priced bulk wine meant the value of Australian wine exports fell 2 percent last year to A$1.85 billion ($1.95 billion) even as total volume rose 3 percent to 721 million liters, according to Wine Australia data.

 

Growing Chinese demand for higher-end Australian wines made it the biggest destination for bottles valued at more than A$7.50 a liter, the body said, putting it ahead of Canada and the U.S. in the segment. The average value of bottled Australian wine exports to China came ahead of those from France.

 

The Australian dollar has advanced 13 percent against its U.S. counterpart in the past three years, the strongest performer among 16 major currencies tracked by Bloomberg.

 

 

——

Sonoma County’s chardonnay a hit; pinot noir doesn’t fare as well

 

Source: THE PRESS DEMOCRAT

By CATHY BUSSEWITZ

January 10, 2013

 

Lovers of high-end pinot noir are more likely to choose a pricey wine from Willamette Valley or Napa Valley than from Sonoma County, according to a new report by Wine-Opinions.

 

But for chardonnay under $20, Sonoma County is king.

 

The research was presented at the annual meeting of the Sonoma County Vintners on Thursday by John Gillespie, founder and CEO of WineOpinions, a market research firm based in St. Helena. He had conducted a national study to determine just how Sonoma County is perceived, compared with other domestic and international wine regions, by those who drink the most wine and buy the priciest bottles most often.

 

“Sonoma County is the only region in the top three of both quality and value,” Gillespie said. “That’s an accomplishment. That is something that can be broadly leveraged in the marketplace, because it’s unique.”

 

The study was commissioned by the Sonoma County Vintners to determine just where the wine region stands in the target consumers’ minds as the group launched its ad campaign in national news media and at international trade shows. That way, the group can track the impact of its work.

 

“One of the things that smart marketers do is to lay down a baseline study so that over time, in a year, in two years . . . you can measure the progress that you’re making in the market,” Gillespie said.

 

In the past year, the Sonoma County Vintners developed and launched a new brand identity and logo, and presented it at numerous food and wine shows in the U.S., China and Canada. The ad campaign hit the pages of Wine Spectator and Food & Wine in December, and the group is planning a two-page spread in the Wall Street Journal in March.

 

“Fabulous harvest, great year, but we have even more ahead of us in 2013,” said Honore Comfort, executive director of the Sonoma County Vintners.

 

“All of you know that diversity is one of our single greatest strengths from the winemaking perspective, but from a marketing perspective that’s one of our biggest challenges,” Comfort said.

 

The group plans to use Gillespie’s study to identify the region’s strengths that can be used to its advantage, and the weaknesses where its image can be improved.

 

For example, about half of frequent, high-end wine drinkers occasionally enjoy a bottle from the Russian River or Alexander valleys, but just as many of those drinkers have never heard of Rockpile, Green Valley or Bennett Valley, the study showed.

 

“We’ve established something here. It’s that Sonoma County obviously has value. And it’s very clear to a relatively sophisticated group of consumers,” Gillespie said. “Could those numbers be better? Sure they can. Everything moves, nothing stays the same.”

 

 

——

Red wine prevents cholesterol build up from meat

 

Drinking a glass of red wine while eating red meat can counteract the build up of cholesterol following a meal, scientists have found.

 

Source: Daily Telegraph

By Richard Gray, Science Correspondent

13 Jan 2013

 

Finally there is an excuse to pick a good red wine with your Sunday roast – it can diminish the unhealthy effects of eating red meat.

 

Scientists have discovered that a glass of red wine can prevent the build up of cholesterol after a meal of dark or red meat.

 

They found that harmful compounds from the meat would build up in the blood stream of volunteers as they digested a meal, helping to form “bad” cholesterol that can damage blood vessels and increase the risk of heart disease.

 

The researchers showed, however, that antioxidants in the wine known as polyphenols stopped these compounds from being absorbed in the gut and so they did not get into the blood stream where they can cause harm.

 

Professor Ron Kohen, from the institute of drug research at the Hebrew University of Jerusalem, said this may help to explain why red wine has frequently been found to reduce the risk of heart disease.

 

He said: “Meat is rich in polyunsaturated fat and cholesterol. Our results could provide an explanation for the association between frequent meat consumption and increased risk in developing cardiovascular diseases. Including polyphenol rich products as an integral part of the meal significantly diminish these harmful effects.”

 

Over four days, the researchers fed a group of 14 healthy volunteers a series of meals of dark turkey cutlets and asked them to avoid other meats and fish.

 

A smaller group of the same individuals then repeated the four day diet, accompanying each cutlet with the equivalent of a glass of red wine.

 

The research showed that when the volunteers ate the meat alone, they had increased levels of a compound known as malondialdehyde in their blood stream after eating.

 

They also showed greater levels of cholesterol that had been modified by malondialdehyde in their blood.

 

After four days of eating the meat, the levels of modified cholesterol had increased by 97 per cent. It is thought that such modified cholesterol is responsible for hardening arteries and creating plaques that lead to heart disease.

 

When they had the cutlets with red wine, however, the levels of modified cholesterol did not change and even fell in some cases.

 

In the study, which is published in the Journal of Functional Foods, the meat cutlets for the second group were marinated in red wine, but Professor Kohen said a similar effect would be seen if they had drunk the red wine with the meal.

 

A separate study from New Zealand has also revealed that eating vegetables like potatoes with red meat can help reduce the harmful by-products produced during digestion.

 

 

——

How to become a wine expert

 

Source: Stuff

DAVE MCINTYRE

14/01/2013

People sometimes ask me how I became a “wine expert.” My answer: I drink a lot more than most folks, and I pay attention.

 

The attention is key, not the drinking. The simplest way to get more enjoyment out of wine – beyond a fruity buzz – is to read the label, then smell and taste the wine and remember what both tell you. If you walk into a wine store or dine in a restaurant, the retailer or sommelier won’t be able to help you much if all you can recall about the wine you enjoyed last week is that it was red.

 

But if you know you like your whites dry and citrusy with a touch of minerality, your retailer or somm might direct you to a gruner veltliner or albarino as an alternative to the familiar pinot grigio. Favour full-bodied, rich and oaky whites? Then try a white Burgundy instead of a California chardonnay. If you like the perfumed floral aromas of viognier, you might enjoy a torrontes from Argentina as a change of pace.

 

Do you like your reds fruity or savoury? Unless, like me, you would answer that question with “yes,” your response could lead you to either the New World or Europe: to zinfandel or to a Rhone Valley syrah.

 

If it sounds like you need a road map to find your way, Madeline Puckette thought so, too. A graphics designer turned sommelier, Puckette, 29, heads the wine programme at Poppy restaurant in Seattle and has reached the certified-sommelier level in the Court of Master Sommeliers.

 

Puckette found herself asking customers a series of questions to lead them to a wine choice that would fit the restaurant’s eclectic list and spicy cuisine. She decided to use her design skills to develop an infographic she calls “The Different Types of Wine,” which she published on her blog, Wine Folly.

 

“People tend to order familiar wines, like merlot,” Puckette said in a phone interview. “I try to refer them to wines similar to what they know, while giving them new experiences. Shiraz and syrah are different even though they are the same grape variety. So this chart looks at wines by their different flavour profiles.

 

“I spent a lot of time thinking about how wines differ: light or full-bodied, lush or smooth. What do you feel like drinking tonight?”

 

Puckette calls her diagram “a geek thing. Not for wine geeks, but for people who like flow charts”.

 

Psychologists might prefer the similar flavour-profile-driven approach of Jennifer Simonetti-Bryan in her new book, “The One Minute Wine Master: Discover 10 Wines You’ll Like in 60 Seconds or Less”. Think of it as a Meyers-Briggs character assessment for wine nerds.

 

Simonetti-Bryan, a master of wine, poses 11 simple questions about our eating and drinking preferences, including which flavour of gum we prefer. Depending on our answers, she assigns us to one of four groups, named for the seasons that reflect our flavor preferences in wine.

 

I’m an autumn guy, apparently, which means I like “wines that are not too delicate, not too fruity or jammy, yet not too strong either”. (It might also mean I can’t make up my mind, but I’m not sure.) Apparently, I like wines with “medium to medium high” concentration, tannins and alcohol (accurate, as far as it goes), whereas if I were, say, spring-loaded I’d prefer light wines with low tannins and lower alcohol levels.

 

Puckette’s flow chart and Simonetti-Bryan’s personality quiz can help us understand our wine preferences and overcome reluctance to try something new. But the key is still simple: Swirl, sniff, sip – and pay attention.

 

 

——

Quinta da Romaneira sold, Seely increases stake

 

Source: Decanter

by Jane Anson in Bordeaux

Friday 11 January 2013

 

Quinta da Romaneira, one of the Douro Valley’s largest estates, covering 400 hectares with 85 hectares planted to vines, has been sold by investment group IDI.

 

The transaction was completed on December 31; the main buyer has not been named but it has been confirmed that AXA Millésimes chief Christian Seely has increased his personal stake, and will continue to run the estate, as he has done since IDI bought the property in 2004. Antonio Agrellos is to continue as consultant winemaker.

 

‘Christian Seely will remain managing director of AXA Millésimes and Quinta do Noval (the Axa Millésimes Portuguese wine estate) as well as managing director of Quinta da Romaneira, a position he already held under the ownership of IDI,’ Wine Bankers, the Paris investment specialist which oversaw the deal, confirmed.

 

The buyer is a private, non-Portuguese investor, and Seely himself remains a part-owner, increasing his personal stake. Seely confirmed that AXA Millésimes is not the purchaser.

 

The other shareholders have now sold along with IDI. The total sale price has not been released.

 

IDI invested ?11.8m in the estate, renovating it and building a hotel which was voted in the world’s top 20 vineyard hotels by the Times newspaper in 2010. Over the past two years, in-bottle sales have tripled.

 

Single quinta ports from Romaneira were auctioned by Christie’s in 1872, the first recorded ports of this kind to be sold at auction. Today, Quinta da Romaneira produces award-winning AOC Douro and Port wines.

 

‘It has been a good deal for all the original investors, and a great deal for Romaneira,’ Seely told Decanter.com. ‘I am delighted to be associated for the long term with my new partner, and to be able to develop the huge potential of Romaneira in the years to come.’

 

 

——

PROWEIN 2013 E-TIX AVAILABLE ONLINE

 

Source: Metro Communications Design

Jan 10th

 

Early registration discounts offered, includes free local transport.

 

Entrance passes for ProWein 2013, International Trade Fair Wines and Spirits, can now be ordered online at www.prowein.com at reduced rates. The event will take place from March 24 – 26, 2013 at the fairgrounds in Düsseldorf, Germany. The online price for a 1-day ticket is Euro 30 instead of Euro 40 on show site and a 3-day ticket is available online for Euro 54 instead of Euro 65 when purchased at the show. Show directories cost Euro 16 onsite and online (plus shipping & handling when ordered online). The eTickets ordered online can be printed at home and will be converted into badges at the turnstiles on show site.

 

The ProWein 2013 entrance passes can be used as a free public transportation ticket on all buses, streetcars, underground trams (U-Bahn), urban railways (S-Bahn) and German rail service within the Rhine-Ruhr regional network (VRR) of Düsseldorf on all days of the trade show.

 

In addition to the entrance passes, www.prowein.com offers many other useful tools for visitors and exhibitors alike such as exhibitor product information and special show updates as well as industry-specific news and hotel and travel tips. Exhibitors can also use the ProWein 2013 portal to process their orders online. All these tools are available in German and English.

 

For further information on visiting or exhibiting at ProWein 2013, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312) 781-5180; Fax: (312) 781-5188; E-mail: info@mdna.com; Visit our web site http://www.mdna.com; Subscribe to our blog at http://blog.mdna.com; Follow us on twitter athttp://twitter.com/FoodBev_MDNA

 

For hotel and travel information, contact TTI Travel, Inc. at (866) 674-3476; Fax: (212) 674-3477; E-mail: info@ttitravel.net;www.traveltradeint.com

 

 

——

Kentucky: Proposed Kentucky liquor law changes sent to legislators

 

Source: The Courier-Journal

Gregory A. Hall

Jan 12, 2013

 

A task force charged with tidying up Kentucky’s alcoholic beverage laws and regulations – including some in effect virtually since Prohibition – finalized its report Friday, sending 34 recommendations to legislators.

 

House Licensing and Occupations Committee Chairman Dennis Keene, a task force member whose committee considers alcohol laws, said he hasn’t talked yet with Gov. Steve Beshear’s staff about a bill, but expects one will be filed during the current 30-day session.

 

Keene, D-Wilder, said he’d like to see something passed quickly.

 

“If it’s a priority for the governor, it’s a priority for us,” he said. “We’re going to expedite it.”

 

The report essentially mirrors suggestions from the task force’s subcommittees, most of which finished their work in November.

 

The report is silent, for example, on state laws that allow more liquor licenses in Louisville than elsewhere; close bars during elections; and prevent liquor and wine sales in groceries while allowing them in drugstores.

 

Public Protection Secretary Bob Vance, whose cabinet includes the Department of Alcoholic Beverage Control, has said previously that the liquor-in-groceries issue was outside the scope of the task force’s work.

 

U.S. District Judge John Heyburn II ruled last summer that a Kentucky law allowing liquor and wine sales at gas stations and drugstores but not groceries is unconstitutional. Enforcement of the ruling is on hold, however, while it is appealed by both the state and a Northern Kentucky liquor store.

 

Task force leaders have said such issues were avoided in hopes of crafting a bill that could successfully change less controversial parts of state law.

 

The task force does recommend repealing a law that requires county liquor stores and bars to close on the day a city or precinct holds a wet-dry vote. It did not address the law that prevents alcohol sales while the polls are open during regularly scheduled elections. Separate bills to do that have been filed in both the House and Senate.

 

The report also calls for a new law giving amnesty from criminal prosecution to those who alert authorities to some emergencies involving alcohol – for example, an adult who provided alcohol to a minor who then needs medical treatment, or a teenager who seeks medical care for another minor with whom the teen was drinking.

 

Without the promise of amnesty, some fear the threat of criminal prosecution would keep such people from seeking help.

 

 

——

New Hampshire: Plan to hike beer tax riles up brewers

 

Source: Seacoast Online

By Elizabeth Dinan

January 13, 2013

 

About 43 million gallons of beer were sold in New Hampshire during the last fiscal year, and it was taxed at a rate of 30 cents a gallon, raising a total of $12.8 million in beer taxes.

 

Boost that beer tax by a dime per gallon and the state would raise another $4.2 million, which could be used for alcohol prevention and treatment programs, suggests state Rep. Charles “Chuck” Weed, D-Keene. With fellow Democrat Richard Eaton of Greenville, Weed is co-sponsoring a bill that proposes a 10-cent-a-gallon increase to the beer tax, with a stipulation that the millions in extra revenue be used by the Department of Health and Human Services for alcohol treatment programs.

 

“Last year we passed a bill to allow nanobreweries to sell at farmers’ markets. New Hampshire is on the verge of becoming kind of a special environment for beer culture.”

 

The beer tax is imposed on licensed wholesalers, manufacturers, brew pubs and nanobreweries, then passed on to consumers.

 

“I would like to see the extra revenue go toward a badly stretched budget,” said Weed, who prefers light thirst-quenching beer over heavy craft brews and says he’s made his own beer.

 

Weed said his bill doesn’t propose a tax increase on wine or hard liquor, both of which are regulated and sold by the state of New Hampshire, because, “I have an unconscious sense that we should start with small steps.”

 

The bill was filed last week and already faces plenty of opposition.

 

Smuttynose Brewery owner Peter Egelston called the proposed beer tax increase “a combination of bad social policy and very bad economic policy.” For starters, he said, the proposal is, “a chicken (expletive) way to raise taxes.”

 

“I would tell whoever in the Legislature is in support of this the same thing,” he said. “Because when the person who goes into the store and sees the price of beer is up by say, $1 a six pack, it’s never going to occur to them that it’s a tax increase. They’ll curse out the brewers and the procurers and the retailers, but we have nothing to do with it.”

 

Egelston added that, “beer is a price-sensitive product” and because of that, any tax increase “would certainly impact our sales.”

 

“There is no doubt in my mind it would go down,” he said.

 

Further, the brewery owner predicted, any beer tax increase set by the state would be passed onto beer drinkers two-fold. Egelston explained that’s because a six-pack sold by a producer for $10 is marked up by the distributor by 30 percent, then marked up another 30 percent by the retailer. Neither are going to reduce their profit margins to absorb a new tax, he said.

 

“The cost of that tax will double by the time it gets to the consumer,” he said. “It hits the consumer twice as hard as a sales tax. Say what you will about a sales tax, but at least you can see it and know what it is. And there are federal and state excise taxes already buried in beer costs.”

 

The federal tax on beer is currently $7 a barrel (there are 31 gallons in a barrel) and there is current legislation to increase the federal tax, as well as opposing legislation proposed to lower the federal tax for small brewers.

 

“The right federal policies will help small brewers compete and thrive and hire more workers,” said Brewers Association CEO Bob Pease in a public statement. “The wrong policies would wreak havoc on this dynamic industry.”

 

Rep. Weed said the original intent of New Hampshire’s beer tax was to use the money for removing trash from along state roads because there’s no bottle or can deposit, but the state has been “raiding it for the general budget.”

 

The New Hampshire Liquor Commission’s enforcement chief, Eddie Edwards, said all money raised by the state through the sale of wine and liquor, as well as taxes on beer, “goes right to the general fund.”

 

Weed reminds that the state’s 30-cent tax on every gallon of beer hasn’t been raised since 1983. And according to Alcohol Justice, a nonprofit organization that advocates using some alcohol profits for alcohol programs, if New Hampshire’s beer tax kept pace with the rate of inflation, the tax would now be 69 cents a gallon.

 

According to Weed’s pending bill, the extra beer revenue raised through the dime-per-gallon increase could pay the salaries of three full-time “prevention and treatment program specialists.” Total pay for those hires would range from $134,258 to $152,742, benefits would cost between $75,069 and $92,639 and there would be a travel budget, according to proposed changes to the beer tax law.

 

The balance would be used for treatment and prevention services, and about 20,000 people would receive treatment, according to the proposed legislation.

 

State Rep. Adam Schroadter, R-Newmarket, who co-owns The Stone Church restaurant in Newmarket, said if the intention of the bill is to help people who have problems with alcohol, then the state should pay the tab.

 

“Given that the state operates the wine and liquor portions of those sales, it seems like that’s where that should come from, instead of from a local growth industry,” he said. “I don’t think that’s the right place for that tax.”

 

Egelston said taxing “a specific group of consumers to support a particular social objective, no matter how worthy that objective may be,” is a “slippery slope.”

 

“People who advocate for higher taxation (on alcoholic beverages), if they’re honest, will say they’re doing it not to raise revenue but to reduce demand,” he said. “These people are on a moral crusade. It needs to be said up front that there are people in our society with terrible alcohol abuse problems. But beer is a legal product that the vast majority of people consume responsibly.”

 

Egelston added there are “lots of things that people abuse,” citing prescription drugs and automobiles as examples. Yet no one is proposing higher taxes on prescription drugs to curb abuse, or on cars for safe-driving programs, he said.

 

“They want to hurt the beer industry,” he said.

 

And don’t compare beer taxes to cigarette taxes, said Egelston. “People who advocate taxing beer often make an analogy to the cigarette tax,” he said. “I will state there’s no legitimate comparison, because there’s no safe consumption of cigarettes. On the other hand, you can’t say that about the person who has a bottle of beer when they get home from work.”

 

Schroadter said he was “taken aback” when he heard “out of the blue” about the proposed beer tax increase last week because he’s been one of a group of legislators who’ve worked on “beer and wine issues.”

 

“It looks like the funds go to a worthy cause,” he said. “I just wonder at what expense?”

 

With Rep. Mark Warden, R-Goffstown, Schroadter said he just formed a “House Beer Coalition” to provide legislators with information about small brewers and wine makers and to advocate on their behalf.

 

“Last year we passed a bill to allow nanobreweries to sell at farmers markets,” he said. “New Hampshire is on the verge of becoming kind of a special environment for beer culture.”

 

Now, Schroadter said, he’s hearing from brewers that the proposed beer tax bump would translate to a 10-cent increase for every 40 cents worth of beer sold, or a 25 percent mark-up on beer.

 

“It makes it very difficult to do business here,” Schroadter said. “We’re just starting to have people come to New Hampshire to sample beer. We have a real opportunity to become that go-to state.”

 

Weed said he expects opposition from lobbyists representing grocers, particularly in border towns, where out-of-state beer buyers represent a good portion of the customer base. But even with a 10-cent tax increase on every gallon of beer, Weed said, “since we don’t charge a deposit, it’s still cheaper.”

 

 

——

Ohio: JobsOhio Beverage System to sell $1.5bn revenue bonds

 

Source: Business Recorder

Friday, 11 January 2013

 

The JobsOhio Beverage System is planning to sell $1.5 billion of statewide senior lien liquor profits tax-exempt and taxable revenue bonds in two parts, during the week of Jan. 21, said a market source on Friday.

 

The sale consists of $423 million of tax-exempt bonds which will be sold through lead manager Bank of America Merrill Lynch and $1.1 billion of taxable bonds to be sold via lead manager Citigroup.

 

 

——

Utah: New DABC boss shows Utah’s liquor wackiness dies hard

 

Source: The Salt Lake Tribune

By PAUL ROLLY

Jan 11 2013

 

In the 1988 movie “Die Hard,” Bruce Willis runs around a high-rise office tower trying to save his wife and dozens of other hostages from a gang of East German terrorists who are also trying to hunt him down as he knocks off one terrorist at a time.

 

His only lifeline outside the building is a police radio contact with Los Angeles Police Department Sgt. Al Powell as city, state and federal officers form a perimeter around the building.

 

But the sergeant and the Willis character keep getting thwarted by an incompetent LAPD deputy chief named Dwayne Robinson. This bumbler’s ego demands he be the one in charge, so he keeps interfering with the sergeant to make the point he is in command and his gaffes almost screw up everything.

 

Utah’s newly appointed Alcoholic Beverage Control director, Salvador Petilos, reminds me of Dwayne.

 

Just in time for the tens of thousands of out-of-staters coming to Utah this month, the DABC has a new interpretation of a 44-year-old law concerning the requirement that alcohol served in restaurants must be accompanied by food orders.

 

For decades, restaurants have used the practice, unmolested by liquor law enforcers, of allowing patrons to have a glass of wine while perusing the menu. But now, restaurants are told no wine can be served until the patron has ordered a meal.

 

That means no areas in restaurants for customers to lounge with an alcoholic drink while waiting for a table.

 

That means the tens of thousands of people in town this month for the Sundance Film Festival and the Outdoor Retailer trade show will have a negative experience at Utah restaurants – unlike just about anywhere else in the country.

 

And this comes at the same time Utah economic development officials are doing everything they can to keep the Outdoor Retailer show from jumping to another city in the future.

 

But, hey, there is a new sheriff in town and he has to show off his moxie.

 

 

——

Missouri: Beer bill brews in Missouri Legislature

 

Source: Post Dispatch

January 12, 2013

 

Homebrewed beers may be allowed to be poured at festivals, competitions and charity events under a bill introduced this week in the Missouri Legislature.

 

Sen. Eric Schmitt, R-Glendale, is the sponsor of Senate Bill 114, which seeks to amend a state statute that says homebrew can only be made for “personal or family use.”

 

Under Schmitt’s bill, homebrewers still would not be allowed to sell their beer, but they could take it out of their homes and pour it at certain “organized affairs, exhibitions or competitions, such as homebrewer contests, tastings or judging.”

 

Such events would include beer festivals that have obtained temporary retail licenses as well as at licensed charity events.

 

The proposed legislation comes after homebrewed beer was unexpectedly banned from last year’s St. Louis Brewers Heritage Festival downtown.

 

The bill, which has not yet been assigned to any Senate committees, would take effect in late August.

 

Saint Louis Brewery CEO Dan Kopman, who also serves as vice president of the Missouri Small Brewers Guild, says he is pushing to get homebrew back at this year’s Heritage Fest, scheduled to take place over Father’s Day weekend.

 

“We hope we can get this thing passed in January, February or March,” Kopman said, adding that the bill has a House companion that will be filed soon.

 

“I don’t know if we’ll be able to get early permission from the state or if something can be done on the city level, but our hope is that home-brewer beer will return to the festival this June.”

 

Besides the state brewers guild and the St. Louis Brewers Guild, Kopman noted that the Missouri Beer Wholesalers Association and Anheuser-Busch InBev also support the proposed legislation.

 

“After what happened last year, I started working with all of the stakeholders in the beer business in the state toward getting the law changed,” Kopman said. “We all wanted to make sure we did it right, and I think we did.

 

“Senator Schmitt said he really wanted to introduce it, and we said great.”

 

Homebrewers, meanwhile, are keeping their fingers crossed that the bill is enacted.

 

“Allowing homebrewers to showcase their beers at public events is important because, ultimately, this is where it all starts,” St. Louis homebrewer Matt McGavic says. “From Anheuser-Busch to any of the new breweries opening around town, they all started somewhere.”

 

 

——

Pennsylvania: Marijuana Legalization Legislation Coming This Month in Pennsylvania Could Hold $1B Economic Impact

 

Source: Keystone Edge

Joe Petrucci

Thursday, January 10, 2013

 

Marijuana will be legal in Pennsylvania. It’s merely a matter of when, says State Senator Daylin Leach (D-17), who is preparing to introduce legislation later this month that would legalize marijuana.

 

“This will be legal in 20 years,” says Leach, who represents parts of Delaware and Montgomery Counties. Last Friday he issued a memorandum broadly outlining the costs of continued marijuana prohibition and a roadmap toward legalization in the more foreseeable future.

 

“I don’t believe this is a fringe issue. It’s a major economic issue and a major moral issue.”

 

While Leach is the first to admit this legislation will face an uphill battle, the economic gains from legalizing pot are potentially enormous and the timing seems as ripe as it has been considering recent successful legalization measures in Washington and Colorado.

 

A $1 Billion Pull

Leach says it’s difficult to estimate an overall statewide economic impact because taxation levels have not been established and it’s unclear how many marijuana users there are in Pennsylvania. However, Leach indicated taxation would come at a high level because of marijuana’s low production costs and was confident in saying he is anticipating an impact that approaches $1 billion. That takes into account some $325 million spent on more than 25,000 arrests in 2006 (an average year) and potential monies from taxes and related industry, as well as harder-to-track savings like when a young person has to drop out of college because of a minor marijuana conviction.

 

“This will create a huge, new industry, from the growers to the distributors to whatever retail outlet we ultimately choose,” says Leach. “It’s sort of a no-brainer in terms of economic benfit.”

 

Drug policy expert Jonathan Caulkins, a Heinz College professor at Carnegie Mellon University in Pittsburgh, urges caution when projecting such numbers, citing factors like bloated arrest costs and potential tax avoidance practices that would make the actual economic impact much more modest.

 

Caulkins also says that marijuana users, socio-economically, are middle-of-the-road when compared to other drug users, and that about 60 percent of marijuana use comes from people with a high school education or less. Alcohol ranks on the higher end of the socio-economic ladder and cocaine ranks on the lower end of the spectrum, according to Caulkins.

 

“The devil can be in the details in how these things are written,” he says. “To think about it from the perspective of how a dynamic, creative, entrepreneurial industry would try to respond to opportunities it creates is a worthwhile thing to do.”

 

Leach’s initial plan is to regulate marijuana like alcohol and plug it into the state’s network of wine and spirit stores, as well as licensed beer distributors. That would be a first, and potentially troublesome, according to Caulkins. He says it would put state employees who work at the distribution centers in the crosshairs of prosecution as long as marijuana is illegal at the federal level. The ambiguity on the issue from Washington D.C. and President Obama also makes any projections dicey.

 

Nonetheless, treating pot like booze was part of the plan in Oregon, already one of 19 states that permit medical marijuana and which saw legalization on the November ballot narrowly defeated largely because of insufficient funding and campaign organization.

 

Caulkins says legalization would radically transform how marijuana is produced and distributed. Economic activity in a legalized scenario would likely center on branding (craft growers like craft brewers) and bundling (selling marijuana alongside coffee and baked goods at a cafe), he says, while large-scale producers would likely reign.

 

The State of the State

Despite the potential economic impact, mainstream media across the state is largely dismissing the legislation as having zero chance of passage.

 

Most initial reports are citing past polls that indicate public support for medical marijuana (80 percent) and outright legalization (only 33 percent) and requisite commentary from Terry Madonna, the well-known political science guru from Franklin & Marshall. One important point about the latter figure on outright legalization — that was from a 2010 poll and an increase from 22 percent two years prior. It’s not hard to imagine that figure might now be hovering around 50 percent, especially with the recent developments in Colorado and Washington.

 

Those states, however, had its residents vote on the issue. Getting politicians to line up around legalization is another story, but Leach believes gaining the support of consistent conservatives who are staunch advocates of personal liberty and law enforcement officials who are increasingly strapped for time and resources could make a difference.

 

Leach points out that in Philadelphia, marijuana is effectively decriminalized when it comes to small amounts. Less than three months on the job, District Attorney Seth Williams announced in April, 2010 that his office would divert marijuana possession cases involving 30 grams or less from the court system to a new program that processes them quicker and spits them out with a clean record. That saved the DA’s office $2 million in its first 12 months.

 

Moving the Arguments Forward

Leach has already been on the losing end on one of two bills for medical marijuana in Pennsylvania that died in committee in the last two years. In his recent memo, Leach cites many standard points of fact for total legalization:

 

– Marijuana is less dangerous then beer, less risky than children’s cough syrup and less addictive than chocolate.

– Marijuana never killed anybody and its prohibition causes far more societal harm than its properties

– The extreme cost of prohibition.

 

“Marijuana was the most prescribed drug in America before 1937,” says Leach. “The anecdotal evidence and literature (for ending its prohibition) are overwhelming.”

 

Caulkins calls Leach’s argument a “classic presentation for marijuana legislation,” but believes Leach’s assertion that marijuana prohibition has created violent turf wars somewhat misrepresents the magnitude of the issue, and that other illegal drugs like cocaine and methamphetamines are the primary contributors to associated violent crime in Pennsylvania.

 

Caulkins makes himself available to state and federal policymakers around the subject of sound drug policy. When asked how he might advise Pennsylvania lawmakers, he says patience is a virtue. He believes waiting to see how things play out in Washington State, Colorado, California and in Washington, D.C. will best position marijuana legalization legislation for success.

 

“There’s a difference between the cutting edge and bleeding edge,” says Caulkins. “Let someone else be on the bleeding edge.”

 

 

——

Pennsylvania: LCB to promote more state wines in stores

 

Source: The Tribune-Review

January 10, 2013

 

The state Liquor Control Board plans to announce a new program today at the Pennsylvania Farm Show that could put more local wines on state store shelves.

 

LCB spokeswoman Stacy Kriedeman said a “PA Preferred” winery could select a number of wines to be placed in local wine and spirits stores.

 

“PA Preferred” products are grown or made in the commonwealth and bear a check-mark logo.

 

Local “PA Preferred” wineries include Greendance Winery at Sand Hill near Mount Pleasant, Christian Klay winery near Farmington and La Casa Narcisi Winery in Gibsonia.

 

Wines from some Pennsylvania wineries already are in state stores, but the program would further the effort to promote the “buy local” initiative, Kriedeman said.

 

“It gives consumers an opportunity to try products they might not otherwise have an opportunity to try,” she said.

 

Board member Robert S. Marcus of Indiana and Agriculture Secretary George Greig will announce the program at 5:30 p.m. Thursday at the Farm Show in Harrisburg.

 

 

——

Washington: Washington liquor stores find business hard

 

Source: Yakima Herald-Republic

By Mai Hoang

Jan 14th

 

Kristen Clark doesn’t sugarcoat her thoughts on business at Liquor and More.

 

“We’re still here,” said Clark, who managed the former state contract liquor store before taking ownership in September. “But alcohol is not a stand-alone product you can have a business on.”

 

So she is selling greeting cards, wine and gift items alongside bottles of Jack Daniels, Bombay Sapphire and other popular liquors at the store in Selah.

 

Clark and others who took over liquor stores when the state got out of the alcohol business last June have had to continually tweak their business strategies to stay competitive with national grocery store chains and even their distributors.

 

“You have to know how to buy, you have to know the business, you have to make it work the best you can,” said Ted Eaton, general manager of Wenatchee-based Good Spirits, which took over four state-run liquor stores, including one in Yakima. Good Spirits spent $153,600 to purchase the license rights for the store from the state Liquor Control Board.

 

The biggest challenge for many of these store owners is a 17 percent fee all retailers are required to pay on gross hard-liquor sales.

 

Large food stores, such as Safeway and Costco, can absorb that cost with margins from other items, said Jas Sangha, president of the Washington Liquor Store Association, a newly formed group of business owners running former state-run and contract stores. The association has about 80 members.

 

With hard liquor making up roughly 80 percent to 90 percent of sales for many small liquor stores, they have little choice but to pass on the fee directly to consumers, who are already paying other taxes and fees on their purchases, Sangha said.

 

The fee has also made it difficult to offer competitive prices to restaurants. Under the state’s new regulations, distributors do not have to pay the fee and can sell directly to restaurants at lower prices, Eaton said.

 

“It makes our price points completely out of whack,” he said.

 

That’s led many liquor store owners to sell other products not only to draw new customers but provide a revenue source that is not taxed with the 17 percent fee.

 

Good Spirits expanded its beer selection and started selling growlers — half-gallon glass beer jugs.

 

Clark, of Liquor and More in Selah, is selling items used in mixed drinks, such as orange juice, soda and half-and-half.

 

She’s also in the process of adding lottery tickets and cigarettes to her offerings. She believes that people will be drawn by the convenience of one-shop shopping at smaller stores such as hers.

 

“After a hard day, you don’t have to run around the grocery store,” she said.

 

But a smaller store doesn’t mean fewer products for Craig Paddock, owner of the Union Gap Liquor Store, a privately owned liquor store that had operated under contract with the state before last June.

 

Paddock’s strategy has been to expand his inventory by including items not sold at grocery stores. He estimates that his 2,000-square-foot store sells 1,000 different products.

 

“We’re having new customers because they heard we got a (wider) variety,” he said.

 

Such products include miniature-size bottles of liquors commonly sold on airline flights.

 

A fifth of Crown Royal, he said, costs about $40. A miniature-size bottle cost just a few dollars.

 

“It’s a great way for people to sample things without being beat to death on the prices” of the full-size bottles, Paddock said.

 

Though many of the former state-run and contract liquor stores remained open under the new owners after liquor privatization, some customers believed they were gone.

 

“I still heard throughout the holidays, ‘I didn’t know the liquor store was still in business,'” Clark said.

 

And while they are competing against each other, these owners are inclined to help each other out.

 

Clark often calls around to the other independent liquor stores if she doesn’t have a certain product, just as she did when it was a contract liquor store.

 

Good Spirits retained all the employees who worked at the state-run stores.

 

The employees are used to providing drink recipes or helping customers understand the different types of spirits, Eaton said.

 

“The customer service is good,” Eaton said. “That’s probably the key thing for any of us to make it.”

 

 

——

Australia: Liquor Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld

 

Source: PRWeb

Sat, Jan 12, 2013

 

The Liquor Wholesaling industry has had its ups and downs due to generally weak consumer conditions, shifting tastes, falling per capita alcohol consumption and increasing wholesale bypass. For this reason, industry research firm IBISWorld has updated its report on the Liquor Wholesaling industry in Australia.

 

Australians generally enjoy a drink, and with growing sophistication of the Australian palate, an expanding liquor variety has given room for Australians to try new things. Overall, beer consumption has declined in favour of wine and spirits, although the growing popularity of premium, craft and imported beer has increased. Liquor wholesalers have benefited from such trends as most industry players deal mainly in wine, spirits and imported beer, with only a select few being preferred by large retailers, often dealing with high-turnover, low-value products. The Liquor Wholesaling industry is sensitive to factors that affect alcohol consumption. According to IBISWorld Industry analyst Ryan Lin, ‘these factors include alcohol demand, tax changes to alcoholic products, real household disposable income, regulations affecting the consumption of alcohol and changing social attitudes’. In the five years through 2012-13, the industry has had its ups and downs due to generally weak consumer conditions, shifting tastes, falling per capita alcohol consumption and increasing wholesale bypass. IBISWorld estimates that industry revenue growth will be largely flat over the five years through 2012-13, with industry revenue growing at an annualised rate of just 0.3% to reach $6.05 billion. Revenue is expected to increase by 1.7% in 2012-13.

 

The industry is forecast to record moderate revenue growth over the next five years. ‘While some favourable product trends will boost liquor sales, the growing market power of the supermarkets and associated increase in wholesale bypass will continue to hurt industry operators’, says Lin. During this period, liquor wholesalers will be looking to improve on the industry’s reach and performance across the liquor market. Improvements in operating efficiency will be paramount to remaining competitive and retaining clients; as will cost cuts and warehouse efficiency improvements that aim to reduce labour costs. Increasing sophistication of the Australian palate proves a big opportunity to capitalise on future growth.

 

The two largest companies operating in the industry are Metcash and Diageo Australia. The Liquor Wholesaling industry in Australia has a moderate level of market share concentration level. The five years to 2012-13 are expected to be stable in terms of market share consolidation, with industry participant numbers relatively stable. This trend is expected to continue in coming years as enterprise number stay similar, reflecting the low level of changes in consumer alcohol consumption.

 

For more information, visit IBISWorld’s Liquor Wholesaling in Australia industry page.

Liquor Industry News 1-9-13

January 9, 2013
www.franklinliquors.com

Franklin Liquors

 

CDC: 1 in 8 U.S. women binge drink 3 times a month

 

Source: CBS News

Jan 8th

 

The dangerous activity of binge drinking — defined as consuming four or more alcoholic drinks at one time — can take a toll on anyone’s health. And, as the Centers for Disease Control and Prevention reveals in a new report, it’s an under-recognized activity that almost 14 million American women participate in about three times a month.

 

The CDC’s “Vital Signs” report, published in Morbidity and Mortality Weekly Report on Jan. 8, showed that one in eight women over the age of 18 admitted to binge drinking in 2011, putting down on average about six drinks per binge.The report also found one in five high school aged girls admitted to binge drinking last year.

 

Binge drinking costs 23,000 lives and 633,000 years of potential life lost (YPLL) each year during 2001 through 2005 for women and girls in the U.S., the authors wrote. Binging increases the risk of getting breast cancer, heart disease, sexually transmitted diseases, unintended pregnancy and other health issues, the authors noted. It may also lead to sudden infant death syndrome (SIDS), fetal alcohol spectrum disorders, and an increased risk for ADHD if pregnant women binge drink. That’s not to mention the safety risks including those associated with operating a vehicle and other drinking-related injuries, unintentional or violent.

 

The National Institute on Alcohol Abuse and Alcoholism said to stay “low-risk” drinkers, women should drink no more than three drinks a day and no more than seven drinks a week. Going over that limit puts people at risk for alcohol dependence or alcohol abuse, a problem which one in four people who drink already have.

 

The study revealed that U.S. women aged 18 to 34 were most likely to binge drink. Whites and Hispanics and women who live in a household making about $75,000 a year were also highly likely to consume excessive amounts of alcohol at one occasion.

 

High school-aged girls were also likely to binge drink. About 45 percent of high school freshmen girls admitted to binge drinking, which gradually increased to about 62 percent of high school senior girls.

 

The CDC recommended that federal agencies and national partners should recognize that binge drinking is an important women’s health issue and work with organizations and states to help promote proven recommendations to curb binge drinking, including limiting the number of stores that can sell alcohol, holding retailers liable for harms related to sales to minors, and measures to increase the prices of alcohol. Doctors and medical professionals should also ask their patients more about their drinking habits and emphasize to pregnant women the dangers of consuming alcohol.

 

“It is alarming to see that binge drinking is so common among women and girls, and that women and girls are drinking so much when they do,” Dr. Robert Brewer of the CDC’s Alcohol Program said in a statement. “The good news is that the same scientifically proven strategies for communities and clinical settings that we know can prevent binge drinking in the overall population can also work to prevent binge drinking among women and girls.”

 

While some studies tout health benefits for alcohol, including recent ones that found protection against stroke or arthritis in women, the CDC said individuals shouldn’t begin drinking or drink more frequently just because they hear of potential benefits. Drinking should be done in moderation — meaning up to one drink daily for women and two for men. People under the age of 21, those who are pregnant or may become pregnant or those who have health problems that may be made worse by drinking should lay off the booze, says the CDC.

 

However, the Distilled Spirits Council, the trade association representing producers and marketers of distilled spirits sold in the U.S., told CBSNews.com in a statement that while they agree that over-consumption of alcohol is bad for any societal group, they feel that the CDC misrepresented how the problem of binge drinking is “unrecognized.” They argued that the alcohol and beverage industry has made many moves to help combat the problem, including encouraging people to recognize the restrictions set in place for alcohol in the U.S. Dietary Guidelines. In addition, they cite the CDC’s own data that binge drinking among girls has declined 25 percent over the last decade.

 

 

——

Press Statement

 

Source: DISCUS

January 8, 2013

 

The following is a statement by Frank Coleman, Distilled Spirits Council Senior Vice President, in response to today’s CDC report on binge drinking:

 

The distilled spirits industry is opposed to over-consumption by any segment of our society.  

 

It’s inaccurate, however, for CDC to suggest in their press release that the problem of binge drinking is under-recognized. ; 

 

It is also misleading for them to ignore their own data which show that binge drinking among girls has declined by 25% over the last decade to historic lows. 

 

The spirits industry is committed to working to further reduce binge drinking through its programs such as The Century Council’s “Girl Talk.”  These are the kinds of solutions that have been making a difference.  For women of legal drinking age, we continue to encourage them to follow the advice of the Federal government’s Dietary Guidelines. 

 

The industry was recognized by the U.S. Department of Agriculture for promoting the Federal Dietary Guideline on responsible alcohol consumption and has long supported moderation programs including Drinkinmoderation.org

 

 

——

JEFFREY R. ANDERSON IS CHAIRMAN-ELECT FOR NABCA BOARD

 

Source: NABCA

Jan 8th

 

Jeffrey R. Anderson, director of the Idaho State Liquor Division (ISLD) today was elected Chairman Elect of the National Alcohol Beverage Control Association by the Board of Directors at their meeting in Florida.  He will assume the role of chairman in May 2014 following the completion of the current chairman, J. Neal Insley, who is also chairman of the Virginia Department of Alcohol Beverage Control.

 

Anderson was appointed director of the ISLD by Governor C.L. “Butch” Otter on April 30, 2010. He also serves as director of the Idaho Lottery, a position he’s held since January, 2007. He came to state service after twenty-six years in broadcasting, recently as vice president and general manager of CBS television affiliates KBOI (Boise) and KIDK (Idaho Falls).

 

He was elected in 2010 to serve as second vice president of the National Association of State and Provincial Lotteries (NASPL). He had previously served as NASPL secretary, treasurer, and region IV director. In addition, he is on the board of directors of the Multi-State Lottery Association (MUSL).

 

Anderson received a Bachelor of Science, Business Administration degree from California State University, Chico with a double major in communications. He resides in Boise, Idaho with his wife of 30 years, Theresa Anderson.

 

“Jeff brings a wealth of experience in the media sector and other disciplines that will be very beneficial to NABCA. We look forward to his leadership in the Association”, said Jim Sgueo, NABCA president and CEO.

 

For information about NABCA, visit www.nabca.org.

 

For information about ISLD visit www.liquor.idaho.gov.

 

 

——

New whisky tax ‘would raise £1bn for Scotland’

 

Senior SNP advisers have called for as much as £1 per bottle to be levied on Scotch whisky in an attempt to help the country share in the success of the global export

 

Source: Daily Telegraph

08 Jan 2013

 

A NEW “tartan tax” should be levied on every bottle of whisky to bring a £1? billion boost to the Scottish Government’s coffers, senior SNP advisers have demanded.

 

Professor John Kay and Sir George Mathewson have both served as members of First Minister Alex Salmond’s Council of Economic Advisers and believe that an extra tax on every bottle of whisky would help Scotland share in the global success of the country’s most famous export.

 

Prof Kay, who advocates a £1 per bottle charge ($1.61), said the benefits going to Scotland from recent export success, notably to emerging markets in South America and Africa, had been “disappointing”. He makes the claim in a BBC Scotland programme Scotched Earth being broadcast on Wednesday.

 

The programme claims that the whisky industry is thought to be worth £5? billion when the produce leaves distilleries. From that, about £500?million is spent on paying around 11,000 employees and supplies are estimated to cost around £1.5?billion, leaving a £3?billion profit for the producers.

 

Prof Kay does not believe a new tax would lead to a fall in demand if distillers absorbed the extra cost instead of passing it on to drinkers and tells the programme: “I think the benefits to Scotland from the whisky industry are really quite disappointing. The largest producers are not based in Scotland. Their profits go mostly to people who are not resident in Scotland. They don’t pay much tax in Scotland and we don’t think they pay much tax in the UK.”

 

Sir George is the former chairman of Mr Salmond’s economic advisers and was previously chairman of the Royal Bank of Scotland. He said a 50p per bottle tax may lead to higher prices but argued that “would not be a major percentage of the sales price”. “It would seem to me there’s room there for something,” he said. “I don’t believe it [the industry] would be substantially harmed and I believe that the success could be spread around a little more.”

 

The industry is angrily resisting the move. Peter Lederer, director of Diageo, the drinks giant, which has headquarters in London and is also listed on the New York stock exchange, said a new tax would send the wrong signals to those thinking of investing in the Scottish economy.

 

He said: “If the argument in an economy is to take a successful business and keep taxing it because it’s successful, [that] gives the wrong impression.”

 

Gavin Hewitt, chief executive of the Scotch Whisky Association, said that Scottish-made whisky is competing in tough international markets, where it is up against other whiskies and spirits.

 

He told the programme: “I cannot see why any government would apply a production tax which would make Scotch whisky less competitive overseas against other drinks which are cheaper to produce and cheaper to sell. We have already enjoyed over a billion pounds of investment into Scotland in the last four years.

 

“I will put my head on the block now and say that we’re going to enjoy £2? billion of investment in the Scotch whisky industry in the next three to four years.”

 

 

——

How Scotch whisky conquered the world

 

Source: BBC

By Douglas Fraser

Jan 8th

 

Scotch whisky is a national brand worth toasting. It is a drink that can only be distilled and matured in one country – Scotland – but which sells in to 200 markets around the world. How did Scotch go from cottage industry to global phenomenon and how does it benefit its country of origin?

 

Scotch whisky is ideally positioned to gain from the growth of the middle class in emerging markets such as Asia, South America and Africa. And for the new clientele it comes packaged in tradition and offers quality provenance.

 

Gavin Hewitt, chief executive of the Scotch Whisky Association, explains: “We are appealing to the emerging markets. We’re appealing to the affluent, the middle-class people who are aspirational, people who see Scotch whisky as the drink of choice.

 

“They can afford it, and it means they’re part of a global network.”

 

Moreover, it works as both a means of celebration and sharing, and (unlike champagne) it’s well-suited to drowning one’s sorrows when times are not so good.

 

But while benefiting from globalising markets, it breaks the rules by avoiding worldwide megabrands.

 

Instead there are thousands of blends, distillery malts, maturation ages and expressions from different types of cask.

 

Each move up the premium ladder boosts profits.

 

SCOTCHED EARTH FACTS

 

Whisky shopper

 

    Exports were worth £4.23bn in 2011

    Each second, 40 bottles were shipped overseas, earning £134

    The USA and France were the biggest export markets, with the top 10 also including South Africa, Taiwan, South Korea and Venezuela

    Brazil’s imports rose 48% in one year.

    Scotch represents almost 4% of the Scottish economy – roughly a quarter of Scotland’s exports and also quarter of the UK’s food and drink exports

    It is reckoned to employ about 10,600 people directly, and indirectly, 25,000 more.

    74% of Scotch whisky is sold in blends, bottled in Scotland.

    Almost 10% of volume is single malts, though they represent close to double that share of value.

    The value added by the whisky industry is £275,000 per worker, less than energy but more than the finance sector.

    Sources: SWA and Scotch Whisky Industry Review

 

This is in an industry struggling to distil enough to meet global demand now, let alone its projections of where the market will be within five to 12 years when much of its output will be ready for the market.

 

Yet there is a question of whether this success story is a result of Scottish success, or down to the world-class marketing strategies of the big distillers?

 

And there is also a question about who benefits from the success of Scotch?

 

The leading distiller is Diageo, which currently has more than 35% of the market. With its proposed acquisition of a controlling share in India’s United Distillers, including Whyte and Mackay, the company is on course to have roughly 40%.

 

A bit amateurish

 

How it came to have that dominance is worth recounting.

 

Alan Gray says the industry used to be run by the ‘seat of its pants’ Alan Gray says the industry used to be run by the ‘seat of its pants’

 

Distillers Company was formed during the inter-war years of the early 20th Century from numerous families which had previously controlled whisky in Scotland, many of them having pioneered exporting to the British empire.

 

Within Distillers, the different houses competed against each other for business.

 

Alan Gray, who has been a financial analyst of the whisky industry for more than 40 years and is author of the Scotch Whisky Industry Review, recalls that it was a bit amateurish.

 

He says: “A lot of the whisky industry in the 1960s and into the 70s was by the seat of their pants.

 

“They thought ‘things are looking good, we’ll just produce it, we’ll always get rid of it’ and, as a result, sometimes there were overhangs of stock in the market.

 

“That depressed whisky prices which wasn’t good for the image.

 

“The industry is now much more professional and more commercial, more aware of the need to conserve cash, capital, to use it efficiently and, crucially, marketing also has improved immensely.”

 

In the 1960s, Distillers Company was financially hard hit by diversifying into pharmaceuticals.

 

It was responsible for the thalidomide drug, intended to combat morning sickness during pregnancy, but which led to numerous physical deformations in babies.

 

By the 1980s, with growth stalled and distilleries being mothballed, a new breed of businessman had spotted the potential of the industry and of this inefficient giant within it.

 

USA and France are the biggest markets but Brazil has risen by 48% in one year USA and France are the biggest markets but Brazil has risen by 48%

 

One of them was Ernest Saunders, who had been hired by Guinness to rejuvenate the family brewer.

 

He fought a fierce and bitter takeover battle to get control of Distillers, using tactics that would later land him in jail for one of the most notorious cases of insider trading of the 1980s.

 

The tactics also included winning the support of Scottish business grandees with a promise that Guinness, along with its new distilling arm, would have its headquarters in Edinburgh.

 

After winning the battle, the promise was quickly forgotten, and the company that would later be rebranded as Diageo remains headquartered in west London.

 

Last year, it had profits of £3bn, with a third of its business in whisky.

 

It owns brands such as Johnnie Walker, which goes worldwide, J&B, with its strength in France, whisky’s second biggest market, and Buchanan’s and Old Parr for Latin America.

 

Just 20% of Scotch whisky is made by companies based in Scotland Just 20% of Scotch whisky is made by companies based in Scotland

 

It can also boast an impressive stable of other spirit brands ranging across Smirnoff Vodka and Gordon’s Gin, alongside newer acquisitions that put it in a strong position, with local grain spirits from Vietnam to Turkey.

 

The other big growth company is Pernod Ricard, which bought much of the Canadian-based Seagrams in 2000. It now has more than 20% of the Scotch whisky market, with brands including Chivas Regal, Ballantine’s and Glenlivet.

 

Although Scotch whisky must be made in Scotland, only about one fifth of the total output is made by distilling companies which are based in Scotland.

 

These include William Grant & Son, which pioneered the modern malt whisky category through its Glenfiddich brand.

 

And also the Edrington Group, based in Glasgow, with brands including Famous Grouse, Macallan and Highland Park.

 

The three sisters who used to own it set up the Robertson Trust to be the beneficiary of Edrington’s profits. That trust disperses the funds to charitable causes, mainly in Scotland.

 

New into the market are smaller distillers. Some saw an opportunity to buy mothballed production with bonded warehouses of stock, and they have seen their investment handsomely rewarded.

 

That is at least in valuation. It can take a lot of patience to see cash flow.

 

BenRiach on Speyside is targeting the high-spending consumer BenRiach on Speyside is targeting the high-spending consumer

 

Billy Walker, with two South African investors, bought BenRiach on Speyside with less than £8m. It is now worth about three times that, and his company has bought the Glendronach distillery as well.

 

He is targeting the high-spending consumer.

 

Mr Walker says: “There’s a market out there that’s very interested in the top end and, frankly, pricing is not an issue. It is availability and having something different and something special.”

 

With single malts increasingly differentiated through maturation in sherry and Madeira casks, prices can reach into hundreds of pounds.

 

Mr Walker says: “We have to have 12-year old expressions, but we have to be outside that.”

 

“That’s a very cluttered area. We try to create expressions – 16, 20, 25-year olds – that take us out of the clutter.”

 

Companies such as BenRiach are thriving in the slipstream of big players such as Diageo, with their marketing push.

 

Diageo opened the Roseisle distillery three years ago Diageo opened the Roseisle distillery three years ago

 

For all the dominance of the big players, and control of the industry from headquarters outside Scotland, there’s a recognition that – for now, at least – everyone in whisky is winning from its growth.

 

And there’s a lot more to come, not least if India, the world’s biggest whisky market, lowers its 150% tariff barriers.

 

That is why the big distillers are also continuing to invest.

 

Only three years after opening Roseisle, near Elgin in Moray, with capacity to produce 10 million litres of spirit each year, Diageo has announced a five-year plan which includes the building of at least one more on that scale, while it expands other distillery capacity.

 

According to the SWA’s Gavin Hewitt: “We have already enjoyed more than £1bn of investment into Scotland in the past four years.

 

“I will put my head on the block now and say that we’re going to enjoy £2bn of investment into the Scotch whisky industry in the next three to four years”.

 

Scotched Earth will be shown on BBC1 Scotland at 22:35 on Wednesday 9 January. It is also scheduled for broadcast several times on the BBC News Channel during Saturday 12 and Sunday 13 January.

 

 

——

United Kingdom: Pub giants face legal crackdown over ‘greedy’ tactics

 

Britain’s biggest pub companies have been accused of “greedy” and “exploitative” behaviour towards their tenant landlords – and face fines for “unfair” treatment of the publicans.

 

Source: Daily Telegraph

By Nathalie Thomas

08 Jan 2013

 

Business Secretary Vince Cable has declared war on pub companies who are “squeezing” their tenants through contracts that are “focused on short-term profit”.

 

Large companies such as Enterprise Inns and Punch Taverns, which lease their properties to tenant landlords, have been accused by campaigners of hastening the demise of Britain’s pubs by “overcharging” for drinks and rent.

 

It is estimated that 23,500 of Britain’s 50,000 pubs are run on “tied” agreements, which can force publicans to buy beer at 50pc above market rates and pay “excessive” rents on the pubs they run.

 

According to the Campaign for Real Ale, more than 3,500 tied pubs have closed since 2009.

 

Mr Cable announced plans for an independent adjudicator with the power to fine large pub companies if they are found to be exploiting their tenants. The Department for Business, Innovation and Skills (BIS) will also consult on a statutory code to stamp out poor behaviour.

 

Mr Cable said: “There is some real hardship in the pubs sector, with many pubs going to the wall as publicans struggling to survive on tiny margins.

 

“Some of this is due to pubcos exploiting and squeezing their publicans by unfair practices and a focus on short-term profits.”

 

BIS says it will ensure tied pubs will be “no worse off” than publicans who are on contracts that allow them to make their own decisions.

 

The crackdown was announced ahead of a debate in Parliament today, at which the Government was facing a potential revolt.

 

It was feared rebel MPs could side with Labour’s shadow pubs minister, Toby Perkins, who was pressing the Coalition to stand up to “greedy” pub companies.

 

The beer industry already has a voluntary code of behaviour and recently introduced its own arbitration board, the PICA-Service. But campaigners say self-regulation has been “a farce”.

 

Greg Mulholland, chair of the all-party Parliamentary Save the Pub Group, said: “The reality is that the big pubcos continue to overcharge their licensees in inflated prices and higher rents and the only way to stop this unfair business practice is for the Government to step in.”

 

The surprise move was greeted with dismay by the pub industry, which raised concerns over how the statutory scheme would be funded. Industry figures stress it is not in their interests for their tenants to fail.

 

A spokesman for Punch Taverns said: “We are disappointed that self-regulation was not given time to work but will now work with others in the sector to help ensure statutory regulation is as effective as possible.”

 

Enterprise Inns said: “We note the government’s announcement and look forward to contributing to the consultation process in due course.”

 

The British Beer & Pub Association said the industry had “made considerable progress in establishing an effective system of self-regulation.”

 

 

——

Their cup runneth over

 

Britain’s drinking culture is deeply unhealthy. So is the politics of drink

 

Source: The Economist

Jan 5th 2013

 

IN THE last hours of 2012 The High Cross, a large, charmless pub in the middle of Leicester, was filling with its usual mixed crowd. Teenaged revellers in glittery minidresses downed sticky vodka cocktails alongside middle-aged couples sipping real ale and wine. There was a lot of chatter; no music. The High Cross, owned by the chain J D Wetherspoon, is a budget pub, which dispenses with expensive entertainment licences and other frills to keep prices low. After getting tanked up for a tenner, most of the revellers would be off somewhere fancier to see in the new year.

 

Budget pubs are thriving in austerity Britain, masking a decline in pricier traditional watering-holes. J D Wetherspoon has opened cheap boozers in a former bank, post office and cinema. But none offers so pithy a comment on modern Britain as The High Cross. Its fine brick-and-stone building was constructed in the late 19th century by a temperance outfit, the Leicester Coffee and Cocoa House Company, which sought to wean working people off the demon drink by providing pleasant surroundings in which to drink tea, coffee and cocoa for a penny a pint. “Is that right?” chuckled Clare, a tattooed reveller at The High Cross. “Didn’t work then, did it?”

 

Indeed not. Britain has a big drink problem. Like most chilly north European countries, it has an ancient tradition of getting blotto. But Britons manage to combine Scandinavian bingeing with liver-pickling Mediterranean levels of consumption. After a three-decade-long surge in drinking, over 60% of British adults drink alcohol in any given week and one in six get drunk at least once. The health implications are catastrophic: alcohol-linked deaths have risen by 20% over the past decade. Noisy binge-drinkers also cause some crime and a lot of disruption-over which Britain’s popular newspapers have an almost obsessive concern. “Twenty Thirsteen: Boozy revellers go bonkers”, splashed the Sun this week. No wonder two-thirds of Britons believe the national drink habit is out of control.

 

Like the Victorian elders of Leicester, the coalition government is trying to do something about it. Shortly before the festive season it announced plans to end bulk discounts on booze and enforce a minimum alcohol price of around 45p per unit. The idea, so far tested only in computer models, is that this would lead to a big reduction in the most harmful drinking, which is most prevalent among the poorest boozers, as well as the rowdiest bingeing. A minimum price would certainly affect behaviour, if it could be implemented: a version previously promised in Scotland, one of Britain’s most sozzled regions, has been challenged by the European Commission on free-trade grounds. Yet it is an odd solution, reflecting both widespread misunderstanding of the issue and political timidity.

 

Britain’s noisy youthful drinkers, who attract most of the public ire, are in fact a diminishing part of the problem. Binge-drinking rates among those aged 17-24 fell by roughly a third between 2005 and 2010. The cause, though hotly contested, is probably due to a cocktail of factors including health education, the tides of fashion and, most obviously, a tough economy. At a time of job insecurity, suggests Fiona Measham, a criminologist at Durham University, young Britons are increasingly reluctant to “go into the office on a Monday morning looking green in the face.”

 

The real threat these days is less to law and order than to overall public health. Britain needs to reduce booze consumption across the board. To that end the government would do much better to raise taxes on all drink, which is currently cheap in real terms. That would also provide much-needed revenue: a minimum price, by contrast, would probably fill the coffers of the drinks industry. Yet this solution, which would affect everyone, is politically unpalatable. Some in David Cameron’s Conservative party are already worried that minimum pricing could affect many middle-class, Tory-voting drinkers, too; by one estimate, a third of the wine currently sold in shops costs less than the suggested minimum price.

 

Britain’s battles with the bottle have always involved a heady mixture of anxieties about health, morality and social class. Britain’s first licensing act, passed in 1552, made an early distinction between rich and poor boozers by enforcing strictures on “common alehouses” which did not apply to wine taverns. Elizabethan antis, in an early example of censorious scapegoating, were also minded to blame growing levels of public drunkenness on decadent foreign, or Catholic, influences. (They also carefully maintained that Brits could outdrink any foreigner. “The great drinkings of foreign countries compared to ours are but sippings,” wrote one 17th-century pamphleteer.)

 

But it also spreads cheer

 

Growing prosperity and urbanisation were likelier causes of both drunkenness and its critics, because they brought rowdy commoners into greater proximity with gentler inebriates. And this class-infused tension is discernible in every major campaign against drink that has followed: from the 18th-century crackdown on the “gin craze” (in which William Hogarth’s etching of “Gin Lane”, a nightmare of sozzled depravity, played a similar role to the lurid tabloid exposures of today), to the high-minded Victorian temperance movement, and the exaggerated popular concerns over “binge Britain” of today.

 

That is a pity, not only because partial understanding of the problem leads to cack-handed policies. It is also because, as well as trouble, Britain’s buttoned-up society gets a lot of precious bonding and cheer from the bottle, which is too often ignored in the public browbeating. It would certainly be impossible to think of a New Year’s Eve without it. Or so your columnist concluded as he stepped out of The High Cross, nicely glowing, and smiling on the revellers of Leicester, including a couple of Asian girls who appeared to be peeing in a doorway nearby.

 

 

——

Resolved to give up alcohol for January? It could do you more harm than good, by Dr Christian Jessen

 

Source: Daily Mail

By Dr Christian Jessen

9 January 2013

 

This year avoiding alcohol for the month of January has become something of a competition, writes Dr Christian Jessen

 

This has long been the season of detox, dieting and giving up drinking. But this year avoiding alcohol for the month of January has become something of a competition.

 

It seems it is no longer enough to steer clear of the strong stuff – you have to tell everyone you’re doing it, too.

 

It’s been dubbed doing a ‘Dryathlon’ by one charity – and its ‘Dryathletes’ are appealing for sponsorship to help them stay on the straight and narrow.

 

There can’t be an office worker in the country who hasn’t had an email ping into their inbox from people looking for ‘support’ from their friends as they take on their  ‘biggest challenge yet’ – staying off the sauce till February 1.

 

The craze is backed by two major charities who are avidly targeting Facebook and Twitter users to reach a whole new class of social drinker.

 

Cancer Research UK, which is running the Dryathlon campaign, is asking drinkers to raise money for alcohol-related cancer research by staying off booze this month.

 

Meanwhile, Alcohol Concern is running a very similar Dry January appeal to raise money and awareness in a bid to stop today’s social drinkers becoming the dependent drinkers of the future.

 

So what’s not to like about a dry January? Surely a lengthy period of abstinence after a few weeks of indulgence is good for your health?

 

Well, I’m afraid it’s all poppycock. As a doctor, you might expect me to give the concept my total backing, but I’m afraid you’d be wrong.

 

At the very least, a dry January is a complete waste of time health-wise. At worst, it’s actually bad for you. Why? Because the whole concept is totally unsound.

 

Instead of being a sign of virtuous behaviour, it’s more likely to signify a broader problem.

 

As I said, most people are giving up alcohol in January just so they can go back to boozing with a vengeance in February.

 

In all likelihood, they’ll end up drinking more, not less – despite the month’s break.

 

I worry that heavy drinkers aren’t embarking on this period of abstinence because they want to radically change their habits forever. Far from it.

 

They simply want to be able to feel they can drink like fishes from February 1.

 

It’s human nature to want a quick fix. Most of us would love to pop a vitamin pill instead of eating a plate of broccoli.

 

Having a dry January has the same appeal.

 

Giving up for a month seems a small price to pay for a year’s binge-drinking. But I believe the very idea of it sums up the extent of the problem we as a nation have with alcohol.

 

Usually people want to raise money for charity with a serious challenge, such as running a marathon or climbing a mountain. It says a lot if we think abstaining from drink for 31 days is a massive achievement.

 

I suspect most people having a dry January are worried that they are drinking too much already. And that’s quite probably true.

 

But, medically speaking, it’s far better for you to have a consistent two days a week without alcohol all year round.

 

The Royal College of Physicians agrees. In 2011, it gave evidence to the House of Commons’ science and technology committee that having two or three alcohol-free days a week is the safest way of consuming booze – far safer than drinking a little every day.

 

I know some people might argue that a month off drink gives your liver and kidneys more chance to regenerate. But this is totally spurious.

 

Don’t kid yourself that you can atone for the sins of the year in one month. If you then hit the booze at the same level as before – or increase it – your body will actually be worse off.

The real damage we do to ourselves is by consistent, long-term drinking.

 

The liver is fabulous at regenerating itself. It metabolises alcohol efficiently at a unit per hour. But to work properly it needs regular days off.

 

Livers aren’t usually fatty organs, but regular overdrinking means fat collects there and reduces how well it works. And this is where the serious health problems lie.

 

The British Liver Trust doesn’t support dry months. Instead it, too, suggests people drink sensibly throughout the year by sticking to the recommended alcohol intake and having two or three dry days every week.

 

Like me, the charity worries that not drinking in January gives us an excuse to go in for excessive drinking the rest of the year.

 

For another danger with a dry January is that if you cut something out completely, you’ll crave it even more. You’ll sit there, sipping your glass of water, salivating as your friends knock back the booze, and count the days till you can hit the bottle again.

 

And, with February 1 falling on a Friday this year, I fear that many people won’t need an excuse to make up for lost time.

 

If someone has been used to drinking consistently, they’re likely to suffer all sorts of unpleasant side-effects from a sudden, complete withdrawal – the sort of symptoms we commonly associate with alcoholics.

 

You may feel bad-tempered, be jumpy and jittery and have trouble sleeping.

 

Of course, this may prompt a reassessment of your drinking habits. But because you’ll feel better when you drink, I worry it’s more likely to make you convinced that the sooner you hit the bottle again, the better.

 

The other reason why I don’t support a dry January is because a moderate – and I mean moderate – intake of alcohol is actually beneficial. Alcohol can protect against heart disease, for instance.

 

Depriving yourself of an occasional glass of wine won’t do you any favours.

 

January can be a particularly bleak time, coming as it does after the excitement of Christmas. But you’ll ride it through much better if you allow yourself little treats and keep things consistent.

 

Of course, it’s great that campaigns such as Dry January are helping us all think about how much we drink. The truth is that most of us could benefit from examining our habits.

 

But my advice is to use January not as a chance to cut out  alcohol altogether, but to gradually cut back.

 

Start a new regime of only drinking every other day. If you can drink moderately only three or four days a week, you’ll be setting the foundations for a truly healthy 2013.

 

 

——

US brewer launches beer for dogs

 

Source: the drinks business

by Gabriel Savage

8th January, 2013

 

An Oregon brewer has created a beer aimed specifically at dogs.

 

Daniel Keeton, who works in the tasting room at Boneyard Brewery in Bend invented “Dawg Grog” after seeing how much his dog Lola enjoyed beer.

 

Described as “a healthy, nutritional, liquid treat for your best friend”, the non-alcoholic beer is made from organic, low sodium vegetable broth, spent grain from Boneyard Brewery, water and glucosamine powder containing ginger, cinnamon, flax seed and honey.

 

The brew is now being sold in local shops and is available online for US customers, priced at $36 for a six pack.

 

“Two things that have become part of the Bend lifestyle are beer and dogs,” Doug LaPlaca, CEO of Visit Bend, which stocks the beer, told KTVZ. “So to create something that would take advantage of the two we thought was a brilliant idea.”

 

This is not the first beer to be crafted with dogs in mind. Last year the drinks business reported that a UK pub had started selling a beef flavoured beer so that owners didn’t feel they had to leave their pet at home when they went out for a pint.

 

 

——

Beam to Webcast February 1st Conference Call on Fourth Quarter and Full Year Results

 

Source: Business Wire

Press Release: Beam Inc.

Jan 9th

 

Beam Inc. (BEAM), a leading global premium spirits company, will offer a live Internet webcast of its fourth quarter and full year results conference call. The webcast will be available under “Webcasts and Presentations” in the Investors section of the company’s web site, www.beamglobal.com, beginning at 10:00 a.m. ET on Friday, February 1, 2013. It is recommended that listeners log on 10 minutes prior to the start of the call.

 

The conference call will feature comments on Beam’s fourth quarter and full year results by president & chief executive officer Matt Shattock and chief financial officer Bob Probst. The company plans to report results for the fourth quarter and full year the morning of February 1st, prior to the conference call.

 

An Internet replay of the conference call will be available at www.beamglobal.com beginning the afternoon of February 1st.

 

Individuals without Internet access may listen to the call by dialing 1-877-226-0730 prior to 10:00 a.m. ET on February 1st.

 

 

——

Anheuser-Busch to unveil Budweiser Black Crown (Excerpt)

 

Source: CBS

Jan 8th

 

Anheuser-Busch InBev (BUD) said Tuesday that is introducing a new specialty beer – an amber lager with a higher alcohol content – and will promote its new brew with a Super Bowl ad.

 

The maker of Budweiser, Bud Light and other brews will launch Budweiser Black Crown with a 30-second ad on Feb. 3 during Super Bowl 47, though the beer will be available in stores nationwide starting Jan. 21. It will be sold in 12-ounce glass bottles in six- and 12-packs, and in 22-ounce single bottles.

 

The maker of Budweiser, Bud Light and other brews said Tuesday that Budweiser Black Crown is an amber lager. The first ad promoting it will run on Feb. 3 during Super Bowl 47, though the beer will be available in stores nationwide starting Jan. 21.

 

 

——

New Zealand: Pernod Ricard NZ falls deeper into red on $119m write-down, dwindling sales

 

Source: National Business Review

Paul McBeth

Wednesday January 09, 2013

 

French liquor giant Pernod Ricard’s local unit widened its annual loss after writing down the value of assets and investments by some $119 million as falling sales and higher costs flattened its margins.

 

The New Zealand holding company, Millstream Equities, reported a loss of $182.4 million in the 12 months ended June 30, according to financial statements lodged with the Companies Office.

 

That is up from a loss of $105.3 million a year earlier when it booked a $99 million loss on the sale of local assets including the Lindaeur brand.

 

The liquor company wrote down assets by $19 million and booked a $100 million impairment charge on goodwill in the latest year.

 

Gross profit almost halved to $39.4 million on an 8.7 percent fall in sales to $235.9 million as costs were bolstered by under-utilised wineries and poor weather lowered production.

 

Last year Pernod Ricard closed its Hawke’s Bay Winery in Napier and shifted those operations to the Church Road winery down the road. The move was part of a decision to exit “non-strategic” vineyards and led to a $6 million impairment charge on the company’s biological assets.

 

The global parent injected $715.4 million of new capital during the year, almost doubling the shares on issue and keeping the company’s equity positive at the balance date.

 

The company took a $24.1 million provision for legal claims in the period.

 

Pernod Ricard is one of several companies fighting the Inland Revenue Department over its use of mandatory convertible notes – a hybrid security with characteristics of debt and equity.

 

The tax department alleges the securities, which let companies juggle debt and equity to provide a tax advantage, were used simply as a means to minimise tax.

 

“The company and group will continue to dispute the proposed adjustments,” the financial statements say.

 

Pernod Ricard also flagged a dispute over the sale of Lindaeur and associated assets in 2010.

 

The company says it received a High Court judgment in its favour after the June 30 balance date, which has since been appealed by Lion Nathan subsidiary, Lion Beer Spirits & Wine (NZ).

 

Pernod Ricard did not disclose what the dispute was over citing commercial sensitivity, but did not think it “probable that an outflow of resources will be required”.

 

 

——

Wine Scams: The Ultimate Hall Of Fame

 

Source: Forbes

Jan 8th

 

Seven years after a French co-operative based in the north eastern province of Champagne-Ardenne was accused of selling fake vintage bubbly, the perpetrators – three former managers of the Esterlin Champagne co-operative have finally been sentenced, reports Decanter.com.

 

Between 2002 and 2005, the co-operative’s former president, commercial director and chef de cave had sold 426,000 bottles of non-vintage Champagne to the French discount chain Ed, owned by Europe’s largest retailer, Carrefour, claiming that they were vintage cuvées. The men, whose fraudulent activities were discovered when two former Esterlin employees tipped off the authorities, were given eight-month suspended prison sentences and ?2,000 fines. In addition, the co-operative has to pay a fine of ?20,000 and the court further levied a ?2.841 million fine payable to French customs and excise.

 

Of course, this isn’t an isolated case of unscrupulous dealings, as illustrated quite spectacularly below in our carefully curated Wine Scandal Hall of Fame. The world of wine, some fine, some well, less so,  has been riddled with scams, gambits and crooked schemes since the days of the Roman Empire when swindlers doctored wines with various substances, including lead, to make them taste sweeter. That victims could (and did) die from a swig too many was clearly not enough of a deterrent.

 

Wine Scandal Hall of Fame

 

1. 16 Million Bottle of Sour Grapes – France/ US , 2010

Whilst we mere mortals might not be equipped with the olfactory tackle to distinguish the voluptuous chocolate and dark cherry notes of Merlot from the ethereal strawberry and violet perfume of Pinot Noir without the assistance of a label, you’d think that US wine giant E&J Gallo might just have someone on staff who could do just that.

 

Well, it appears not.

 

After sniffing around for year and perhaps quaffing a glass or two of vino, French authorities charged 13 defendants including several wine co-operatives, executives from two wineries and the conglomerate Sieur d’Arques with selling Gallo wine which was labeled Pinot Noir, but was really the aromatic grape cut with far less expensive Merlot and Syrah. The quantity involved is a spectacular 3.57 million gallons worth nearly $5.5 million. That would be enough to fill 16 million bottles, or 460 oil tankers.

 

Winemakers Gallo who’ve been dealing with grape juice for nearly 80 years they really should have been tipped off by some not-too-elusive clues. The amount of Pinot Noir that was exported from the Languedoc-Roussillon region in Southern France between 2006-2008, the window of deception, far exceeded the amount of previous years. In fact, this really was a case of wily Frenchmen turning water into wine. Though Sieur d’Arques’ suppliers produce a total of 15,000 hectoliters of Pinot Noir annually, 135,000 hectoliters were sold to the gullible Americans for its Red Bicyclette brand.

 

2. Death By Tainted Wine – Italy, 1986

At least 20 people died and Italy, the motherland of the Bacchanalian beverage, was forced to temporarily freeze all wine exports when cheap tipple was adulterated with  methyl, or wood, alcohol to raise the wine’s alcohol content to the average 12 percent. The contamination only affected low grade booze that was sold to neighboring European countries to mix with their own local wines and the locally drunk, unpedigreed Vino di Tavolo that was sold at such low prices that only adulterated incarnations could be profitable.

 

3. Not-So-Sweet, Sweet White – Austria 1985

An odorless chemical found in anti-freeze, diethylene glycol, was used by some white wine producers in Austria to sweeten their booze and upgrade the quality of drier whites to more expensive, fuller bodied, fruity offerings. Why not just add sugar, you ask? Well, that would be a pretty crass con as the addition of sugar is highly detectable. In small doses diethylene glycol is somewhat harmless and the amount used in the scam was low enough not to have any detrimental effect on drinkers. You would have to chug 28 of those adulterated bottles every day for two weeks to notice any effects, and by then you’d be long dead of alcohol poisoning. Still, anything that belongs in anti-freeze should stay in anti-freeze.

 

4. Coloring Clarets – France 1973

Three wine merchants in the posh Bordeaux wine region “manufactured” some typically deep red claret which didn’t contain any of the world famous red at all. The conniving  trio mixed mediocre white wine with dark red wine to create 1.45 million liters of the perfectly colored concoction. Allegedly several old Bordeaux families who literally had the red stuff flowing through their veins they had been dealing with wine for so long, had bought the adulterated wine and re-sold it in bottles bearing prestigious Bordeaux labels.

 

5. Oops, I Accidentally Made Me Some Tipple – US, Prohibition

A wine scam of the most unique varietal occurred during the prohibition when wine production was illegal. Grape growers would sell bricks of grape concentrate together with a packet of yeast. A warning label accompanying the curious duo would advise against combining the concentrate and yeast with water and sugar in a sealed pot and letting the mixture sit for seven days lest “an illegal alcoholic beverage” would result.

 

 

——

Champagne Nicolas Feuillatte sees 2012 volumes slip (Excerpt)

 

Source: Just-Drinks

By Stuart Todd

8 January 2013

 

Champagne Nicolas Feuillatte (CNF) has posted a slight dip in full-year volumes, but still delivered its “second biggest performance” in its history.

 

The Champagne house said earlier today (8 January) that total volumes in 2012 totalled 9.5m bottles, a slide of 1% on 2011. Last year was the second largest volume performance for CNF, despite what the company called “a very unstable year”.

 

 

——

Napa’s Long Meadow makes major Rutherford acquisition

 

Source: Decanter

by Courtney Humiston in Sonoma

Tuesday 8 January 2013

 

Napa Valley’s Long Meadow Ranch has recently purchased 36.4ha (90 contiguous acres) of prime vineyard property in the Rutherford appellation.

 

The winery now joins renowned names like Inglenook (fomerly Rubicon Estate), Quintessa, Beckstoffer and Beaulieu Vineyard as one of the 10 largest land holders in Rutherford.

 

The price has not been disclosed but Rutherford vineland, among the most prized in California, typically sells for more than US$200,000 per acre, or around US$500,000 per hectare.

 

The purchase combines four parcels of land currently planted to 30ha of vines – primarily Sauvignon Blanc, but 4.4ha of Cabernet Sauvignon and a small amount of Merlot. Owner Ted Hall says the clay-based soil is ‘ideal for Sauvignon Blanc’ and adds he will change the plantings very little.

 

‘This is a defining moment for us,’ Hall said. He founded Long Meadow Ranch in 1989 with the purchase of 263ha in the Mayacamas range – only 6.4ha of which are currently planted to vine – where he also built the winery and where renowned winemaker Cathy Corison made the wine for Long Meadow throughout the 1990s.

 

‘[The acquisition] establishes us with a grape supply that will allow us to move forward,’ Hall said. He plans to expand his Sauvignon Blanc program by building a white wine production facility on the property.

 

About two hectares of currently fallow land will be used for non-vineyard agriculture and, along with LMR’s five existing – and adjacent – acres of gardens in Rutherford, will supply Long Meadow Ranch’s Farmstead Restaurant in nearby St Helena and the local farmer’s market with eggs, produce and honey.

 

The garden will also provide ‘educational opportunities’ for visitors, according to Hall, including a ‘Farm to Table boot camp’.

 

‘Ted and [son] Chris Hall have always looked at a piece of property in a more diverse way,’ said Paul Wagner, executive director of the Rutherford Dust Society, the appellation’s trade organisation.

 

Long Meadow Ranch Napa Valley Cabernet Sauvignon 2009 was awarded 15.25/20 (84/100) in Decanter’s Napa and Sonoma Cabernet Sauvignon panel tasting in the current issue of Decanter magazine.

 

http://www.decanter.com/magazine/back-issues/50072/decanter-magazine-february-2013

 

 

——

Naked Wines invests $150K in Randall Grahm

 

Source: the drinks business

by Lucy Shaw

8th January, 2013

 

Online wine merchant Naked Wines has invested US$150,000 in Californian winemaker Randall Grahm of Bonny Doon Vineyard in Santa Cruz.

 

The customer-funded company united over 150,000 “angels”, each of which invested $1,000 to help Grahm launch two wines in collaboration with Naked.

 

Rhône varieties enthusiast Grahm runs Bonny Doon Vineyard in Santa Cruz, where he makes a variety of wines, including top Rhône blend Le Cigare Volant.

 

Keen to find new ways of selling wine in the US, Grahm’s collaboration with Naked Wines allows him to cut out both marketing and sales costs.

 

Of the escalating costs for selling wine in the US, Grahm said: “I don’t know if I’m competing against myself, but the wine world is changing.

 

“There has been an enormous proliferation of brands and the consolidation of distribution. There is a finite limit to how much we can produce under Bonny Doon.

 

“Through Naked Wines I have the freedom to experiment, the flexibility to blend, and the fact that they pay for the grapes helps me big time.”

 

The result is Close but no Cigare, a 13.8% abv Mourvedre/Syrah/Grenache blend made from grapes that didn’t make it into the final Le Cigare Volant blend.

 

“Every year is with its challenges, and some lots are close to inclusion, but don’t quite make the cut,” said Grahm.

 

“We are privileged to share this unusual wine funded by the Naked Angels and have enjoyed our collaboration with this forward-thinking group,” he added.

 

Priced at £18.50, the inaugural 2011 vintage of Close but no Cigare is a blend of 76% Mourvedre, 12% Syrah and 12% Grenache.

 

Grahm has also produced a 12% abv 2011 Syrah/Viognier blend featuring 25% Viognier via the collaboration, which, along with Close but no Cigare, went on sale through the company this week.

 

 

——

Diageo promotes Gladman to Africa role

 

Source: Brand Republic

By Gemma Charles

08 January 2013

 

Philip Gladman, the top European marketer for Diageo’s white spirits brands, is to join its African operations.

 

Chris Lock replaces him as category marketing director for white spirits, Diageo Western Europe.

 

Gladman, who has overseen marketing for brands such as Smirnoff and Gordon’s Gin, is taking up the role of marketing and innovation director for Diageo Africa with immediate effect. He joins the drinks company’s executive team for the continent and its global marketing leadership team.

 

Gladman has been at Diageo for 12 years. He previously worked as its GB marketing director and, prior to that, as global brand director for Smirnoff, where he oversaw the launch of its Nightlife Exchange Project.

 

At last year’s ISBA conference, Gladman argued that brands with social-media followings of fewer than 1m were better off investing in TV ads.

 

Lock previously managed white spirits brands in the UK and has been marketing director for Smirnoff Europe. His most recent role was category marketing director for Baileys and portfolio.

 

 

——

Darden announces big executive moves

 

Olive Garden president steps down and company appoints new chief marketing officer, brand presidents

 

Source: NRN

Erin Dostal

Jan. 8, 2013

 

Darden Restaurants Inc. appointed a new chief marketing officer Tuesday, alongside new brand presidents at LongHorn Steakhouse and Olive Garden.

 

The company also said that Olive Garden’s current president, John Caron, would be leaving the company after 10 years.

 

The new executive appointments are as follows:

 

Will Setliff was promoted to senior vice president and chief marketing officer at Darden. According to LinkedIn, Setliff had most recently served as executive vice president for Darden’s Specialty Restaurant Group, which includes concepts Seasons 52, Bahama Breeze and The Capital Grille. He joined Darden in April 2012 and was previously senior vice president of marketing at Target.

 

Setliff replaces James J. “JJ” Buettgen, who said in November that he would be leaving the chief marketer post to become chief executive at Ruby Tuesday Inc.

 

“Our guests are changing and we are changing with them, and one important area of change is the work we’re doing to evolve marketing,” said Darden CEO Clarence Otis in a statement. “Will’s expansive experience in driving successful, cutting-edge consumer marketing programs provides the perfect background needed to lead our enterprise-wide efforts.”

 

Dave George was named president of Olive Garden. He was most recently president of LongHorn Steakhouse, a job that he has held since 2003. He first joined Darden in 1998, when he became LongHorn’s vice president of operations.

 

“He is a proven restaurateur,” Otis said. “His feel for guests and employees and demonstrated leadership capabilities will serve Olive Garden well as we seek to…reclaim the brand’s value leadership position.”

 

Valerie Insignares was promoted to president of LongHorn Steakhouse. Most recently, she had served as chief restaurant operations officer at Darden, a post she assumed in February 2011. She first joined Darden in January 1997, when she became director of food and smallwares in the company’s commodities purchasing department.

 

“With Dave moving to Olive Garden, Val is a tremendous fit to lead LongHorn as we continue to expand it across the country,” Otis said.

 

Setliff, George and Insignares will report directly to Drew Madsen, Darden’s president and chief operating officer.

 

The executive changes come just weeks after a lackluster second-quarter earnings report, in which the Orlando-based company vowed retool its marketing efforts for its three largest brands: Olive Garden, Red Lobster and LongHorn Steakhouse.

 

The company declined to comment on the executive changes beyond a press release.

 

Darden operates more than 2,000 company-owned restaurants.

 

 

——

Word of mouth, convenience, technology key to restaurant selection

 

Source: NRA

by Elissa Elan

January 8, 2013

 

Word-of-mouth recommendation, convenience and expanded use of technology are some of the best ways to grow a restaurant’s customer base, new research conducted by the National Restaurant Association has found.

 

“Understanding what influences a diner to choose one restaurant over another can give an operator a distinct competitive advantage,” said Hudson Riehle, senior vice president of the NRA’s Research & Knowledge Group. “Word of mouth has always been a restaurant’s best promotional tool and that remains the case even in today’s technology-driven world.”

 

According to the NRA’s 2013 Restaurant Industry Forecast, 94 percent of adult consumers surveyed said they are likely to base their restaurant choices on recommendations from a family member or friend. Furthermore, frequent restaurant customers said they are even more likely to base their dining-out decisions on word-of-mouth recommendations.

 

 

——

Majestic Wine and Domino sales rise

 

Source: FT

By Christopher Thompson and Andrea Felsted

Jan 8th

 

Resurgent interest in French wines and a spike in pizza deliveries boosted seasonal sales at Majestic Wine and Domino’s Pizza.

 

The buy-in-bulk wine retailer reported 1.1 per cent rise in like-for-like sales for the seven weeks to December 31 compared with 2011, bolstered by a 15 per cent year-on-year rise in online sales.

 

Steve Lewis, Majestic’s chief executive, said he was happy with steady growth in a difficult spending climate.

 

“We’ve had a very good Christmas for classical French regions such as the Loire, Beaujolais and the Rhône – wines which took a hit during the first recession,” he said. “It’s a solid performance, not an exciting one – any growth in this environment is good.”

 

Majestic said total sales were up 5.1 per cent, bolstered by brisk sales of Sauvignon Blanc wine from New Zealand, a staple of Britain’s middle-class dinner tables. New Zealand wines account for a fifth of Majestic’s total still wine business.

 

The company said it was on track to open 16 stores for the financial year until the end of March, the same number as last year.

 

Mr Lewis added that, despite the consumer downturn, cash-conscious oenophiles were not yet down trading to cheaper wines.

 

“People are not trading down – they are buying better wine but less of it,” he said.

 

Domino’s reported a 5 per cent rise in like-for-like UK sales for the 14 weeks until December 30 as colder weather and shorter winter days saw more people order in.

 

That offset a weaker performance in Ireland, where a fall in spending by recession-hit consumers saw like-for-like sales decline by 3.8 per cent.

 

Domino’s said it opened 57 UK stores during the calendar year, compared with an original target of 60 stores. In addition, 12 stores were opened in Germany.

 

“Yet again, Domino’s has delivered solid results in a tough trading environment,” said Lance Batchelor, Domino’s chief executive. “Our like-for-like sales growth in our core UK market has been good, and we have opened a record number of stores across the group.”

 

Jeffrey Harwood, an analyst at Oriel, said Domino’s was “well placed” to sustain its growth record in the UK, although Germany, a focus of Domino’s expansion last year, was too early to judge.

 

Elsewhere in the retail sector, Dunelm benefited from increased purchases of living room furnishings to register a 2.2 per cent increase in like-for-like sales for the 26 weeks to December 29. The homeware retailer said total sales rose by 13.4 per cent year-on-year to £340.1m.

 

Tesco also recovered over the Christmas period, with the highest sales growth of the big four supermarkets, according to the latest figures from Kantar Worldpanel, the consumer research group.

 

In the four weeks to December 23, Tesco’s sales rose 4.2 per cent, ahead of the market at 3.9 per cent and J Sainsbury at 3.7 per cent.

 

Aldi had the highest total sales growth, with a 32.4 per cent expansion, while Lidl’s sales rose by 12.3 per cent in the four-week period.

 

 

——

SAINSBURY’S RINGS UP RECORD SALES

 

Source: Press Association

By HOLLY WILLIAMS

Jan 9th

 

Supermarket giant Sainsbury’s says it rang up more than £100 million in sales on Christmas Eve in a record-breaking festive trading week.

 

The chain reported like-for-like sales up 0.9%, excluding fuel, in the 14 weeks to January 5 after its strongest ever performance in the week before Christmas, when it also notched up £16 million in one hour on Sunday December 23.

 

Sales growth slowed on the 1.9% reported the previous quarter and against last year’s 2.1% rise over the Christmas period.

 

But the performance confirms the pressure on smaller rival Morrisons, which disclosed a 2.5% slide in Christmas sales earlier this week.

 

Sainsbury’s was the only one of the “big four” players to increase its market share in the run up to Christmas, to 17.1% from 17% a year earlier, while Morrisons saw its share slip to 12%, according to data yesterday from Kantar Worldpanel.

 

Justin King , chief executive of Sainsbury’s, said the group delivered good sales growth in “challenging” conditions.

 

“We expect the challenging economic backdrop to persist, with customers looking to re-balance their household budget after the festivities and so spending cautiously in the first few months of 2013,” he said.

 

But the group said plans to continue its money-off coupon Brand Match scheme would help ensure it was “positioned to perform well over the next quarter”.

 

Clive Black , retail analyst at Shore Capital Stockbrokers, said the figures implied a fall in sales volumes when factors such as inflation are stripped out.

 

But he said today’s figures showed a “satisfactory performance in demonstrably dull market conditions”.

 

Sainsbury’s has reported resilient sales in recent months at the expense of its three main competitors, although figures tomorrow from market leader Tesco are expected to show a fightback at the chain with forecasts of a 1% sales rise.

 

Seymour Pierce retail expert Kate Calvert said it was likely Sainsbury’s would “struggle to outperform in 2013” as Tesco is expected to reclaim recent lost sales growth.

 

Sainsbury’s said non-food sales grew faster than food over its third quarter, with clothing sales up 10% year-on-year and small electricals sales rising by more than 24%.

 

Within food, the group saw own-brand product sales grow at three times the rate of branded goods as shoppers sought to cut down their food bill.

 

The firm’s might in the convenience store sector helped sales from small stores rise more than 17%, while it added that online sales rose over 15%.

 

Ms Calvert said the performance at Sainsbury’s confirmed that Morrisons is “structurally disadvantaged” by its lack of grocery delivery service and small number of convenience stores.

 

 

——

ALDI CHRISTMAS SALES UP 30% IN BOOM FOR BUDGET STORES

 

Source: Daily Mail

By SEAN POULTER

Jan 9th

 

SHOPPERS turned to discount supermarkets in record numbers at Christmas, figures showed yesterday.

 

Aldi increased sales by 30.1 per cent in the 12 weeks up to December 23, compared to the previous year, while Lidl sales grew 10.8 per cent. Iceland saw its sales rise 9.7 per cent.

 

The market share of Aldi reached a record 3.2 per cent.

 

Edward Garner , of Kantar Worldpanel which compiled the data, said: ‘Historically, the discounter sector has seen its share dip at Christmas as shoppers treat themselves and trade up.

 

‘But the all-time record share of 3.2 per cent for Aldi is a sign of the times and shows that this is no longer the case. Aldi and Lidl both benefited from carrying items such as goose, venison and fine wines in their pre-Christmas catalogues this year. It seems that offering premium products at budget prices has paid off.’

 

Upmarket Waitrose saw sales of £300million – a growth of 5.4 per cent. But the ‘big four’ did not fare as well. Tesco, Asda and Morrisions reported decreases, while Sainsbury’s managed growth of 0.1 per cent.

 

Food prices rose by 4.1 per cent last month, piling further pressure on hard-pressed families. The wettest summer in 100 years has brought big increases in the cost of vegetables and fruit while droughts in the US and Russia have driven up international grain commodity prices.

 

A survey by the British Retail Consortium reveals that half of families plan to cut back on food spending in the next six months.

 

But there is some hope on the horizon. The 4.1 per cent food price rise in December was down from 4.6 per cent in November.

 

BRC director general Helen Dickinson said: ‘Barring any new shocks in the supply chain, I would expect food inflation to stabilise at this sort of level in the short term and we may see it starting to settle to lower levels in the second half of 2013.’

 

 

——

North Carolina: Mayor on ABC Commission

 

Source: The Daily Reflector

By Wesley Brown

Saturday, January 5, 2013

 

In her last appointment as governor, Beverly Perdue this week picked Greenville Mayor Allen Thomas to fill a long-standing vacant position on the North Carolina Alcohol Beverage Control Commission.

 

The nomination was confirmed on Friday, when Perdue’s office mailed Thomas his oath papers, which are expected to be sworn by the mayor next week, most likely in Pitt County by Superior Court Judge Marvin Blount.

 

On Friday, Thomas, in his first year as mayor, hailed the designation – bestowed to three people statewide – as an honor and an “extension of the city’s and region’s high level of involvement” in North Carolina commerce.

 

“I was very honored to be given this opportunity,” Thomas said. “The commission is an enormously large enterprise that touches every community across the state and one that plays a significant role in Greenville and eastern North Carolina.”

 

Perdue nominated Thomas on Thursday in her final appointment as governor, Deputy Press Secretary Alana Allen confirmed on Friday.

 

Thomas will fill the spot vacated by A.D. “Zander” Guy Jr., who took over as board chairman in February after John Williams left the post in November 2011, said Agnes Stevens, public information officer for the state ABC Commission.

 

The mayor of the town of Surf City and a member of the Cape Fear Community College tustee board, Guy has served as a member of the commission since October 2009.

 

Thomas will join Daniel L. Briggs as the board’s two commissioners.

 

A native of Davidson County, Briggs was appointed in February 2011 and as a licensed funeral director and embalmer, lives in Lexington.

 

The commission, managed under the operation of the N.C. Department of Commerce, meets monthly in Raleigh and oversees all sale and regulation of alcoholic beverages in the state. It will convene again Jan. 16.

 

Allen said there are no term limits for state ABC commissioners, that they “serve at the pleasure of the governor.”

 

Gov.-elect Pat McCrory, who officially will be sworn in today, is not expected to modify the appointment.

New Wine In Dispenser To Try

January 9, 2013
Our Wine Dispenser

Stop In And Try!

 

Everyday we have wines in our dispenser for you to try !

Todays Featured Wine

Clos Du Bois
Rouge
Red Blend 2009

Clos Rouge
750ml 1 @ $13.99
6 @ $12.59
12 @ $11.19

Winemaker: Gary Sitton

VARIETAL composition:
Blend of Cabernet Sauvignon, Petite Sirah,
Merlot, Petit Verdot, Malbec and Charbono

Appellation: California

Acid / pH: 5.6 g/L / 3.57
Residual Sugar: 6.0 g/L
Alcohol: 14.5%
bottled: December 2011

CLOS DU BOIS CLASSICS

Clos du Bois Classic wines are consumer favorites that reflect the winery’s accessible and refined
winemaking style. Working with a family of trusted growers and more than 500 acres of estate
vineyards in the heart of Sonoma County, each vintage is crafted to achieve balance, intensity,
and true varietal character. Lush fruit flavors and a juicy, supple palate are the hallmarks of the
Clos du Bois style.
vineyards
In 2009, winemaker Gary Sitton sourced fruit for this wine from throughout California, using
Cabernet Sauvignon, Petite Sirah, Merlot, Petit Verdot, Malbec and Charbono to craft this
hearty wine. Harvest took place September and October 2009, with grapes registering at an
average of 24.5° brix.

VINTAGE
Moderate temperatures throughout the spring and summer made 2009 a very good growing
season. Weather during set was good and rain in early May helped to develop a lush, healthy
canopy that was beneficial in ripening the crop. No extended heat spikes over 100 degrees during
the key ripening period between July and September allowed the vines to continuously mature
fruit. The lack of extreme temperatures resulted in higher acidity and aromatic concentration in
the white grapes and higher color and tannin development in the reds.

WINEMAKING
The grapes were machine harvested as well as harvested by hand. Fermentation took place on
the skins and the wine was fermented in stainless-steel tanks at temperatures between 70 and
88°F for five to 11 days, and the wine pumped over the skins two to three times a day. The wine
was then drained and pressed off the skins for further aging in oak barrels and stainless-steel
tanks. After 24 months in a combination of French, American and Eastern European barrels,
30% new, the wine was racked and blended before bottling.

WINEMAKER NOTES
Following its deep ruby-red color, this charming red blend opens with aromas of jammy
blackberry, plum, chocolate, mocha and roasted coffee. A mouthful of sweet fruit and
full-bodied lushness follows, with the blackberry fruit accented by notes of toasty oak.

Food Pairings
This rich, jammy blend will pair nicely with a wide range of foods, including steak, ribs and
hamburgers off the grill.
Please enjoy our wines responsibly.

Tasting Note:
http://www.closdubois.com/cs/groups/public/documents/webasset/ecm2040733.pdf

Organic 101: Organic Wine

January 8, 2013

USDA Blog about Organic wine. Good Information and links.

Organic 101: Organic Wine

Liquor Industry News 1-8-12

January 8, 2013

cropped-428972_4039832247273_131052073_n.jpg

 

Bacardi purchases St-Germain liqueur

 

Already a popular ingredient among U.S. bartenders, Bacardi hopes to take the elderberry liqueur and expand its distribution worldwide.

 

Source: Miami Herald

By ELAINE WALKER

Jan 7th

 

Bacardi Limited is going shopping again, adding another boutique spirit to its brand portfolio.

 

The Bermuda-based spirits giant, whose U.S. headquarters is in Coral Gables, will announce Tuesday that it has purchased St-Germain. The premium elderflower liqueur is one of the fastest-growing spirits brands in the United States and a favorite cocktail ingredient at trendy bars.

 

Bacardi is buying the brand from the Cooper Spirits Co., which is based in New York and also has an office in Palm Beach. Terms of the deal were not disclosed.

 

The acquisition continues Bacardi’s trend of focusing on the acquisition of super premium brands, including Bombay gin, Grey Goose vodka and most recently a stake in Patrón tequila.

 

“We, as a company, have a track record of nurturing new and up-and-coming brands,” said Robert Furniss-Roe, president of Bacardi North America, which is based in Coral Gables. “St-Germain is a great complement to our portfolio. We don’t have anything like it. We see a very long runway in front of St-Germain.”

 

Founder Robert Cooper said he wasn’t actively looking to sell but began having conversations with Bacardi Deputy Chairman Barry Kabalkin about the possibility. Ultimately, Cooper decided that selling to a larger international company would help foster St-Germain’s future growth.

 

Since its launch in the U.S. in 2007, St-Germain grew by more than 50 percent in 2011 to reach nearly 77,000 cases worldwide, according to IWSR, an industry data source. In 2012, that growth was expected to continue with a projected 100,000 cases in sales worldwide.

 

“As an independent I could still grow the brand, but I didn’t think I would have the same potential to reach consumers far and wide on an international scale,” said Cooper, 36, who is a third-generation distiller. His family created Chambord liqueur. “For me it’s as much about securing St-Germain’s future. Bacardi is in the best position to take what we’ve started and further build on that success.”

 

Cooper will not hold any ownership stake, but he will remain available as a consultant to Bacardi and the “brand protector” of St-Germain.

 

What Cooper wants to ensure is that St-Germain maintains its French hand-crafted, artisanal roots. The liqueur is made from elderflower blossoms hand-picked during a few weeks every spring in France. Only one batch is made annually.

 

The majority of St-Germain’s business is done in bars and restaurants, where many bartenders consider it one of their go-to ingredients. You’ll find cocktails with St-Germain on the menu everywhere from the Mandarin Oriental Hotel to BLT Steak and the Living Room at the W South Beach.

 

“It’s the best liqueur to come out in 75 years,” said John Lermayer, bartender at the Regent Cocktail Club at the Gale South Beach. “It goes well with everything. I’ve never seen anything as mixable since sugar. It goes just as well with rye whiskey as it does with Champagne.”

 

But some of Miami’s trend-setting bartenders like Gabe Ortega of the Broken Shaker in Miami Beach say they have moved away from using St-Germain.

 

“It has gotten so overused that it has lost its uniqueness,” Ortega said.

 

“Now it’s on everybody’s drink list.”

 

 

——

Treasury Wine bidding war could net more than $4bn

 

Source: The Australian

Blair Speedy

January 07, 2013

 

AUSTRALIA’S largest wine company could soon be in foreign hands, with institutional investors predicting Treasury Wine Estates — owner of some of the country’s most famous wine labels — is ripe for a takeover offer with a potential bidding war netting up to $4.2 billion.

 

And while global wine players would undoubtedly be interested in TWE’s portfolio of premium labels, including Penfolds, investors from China — the world’s fastest-growing wine market — are likely to lead the charge.

 

TWE was approached by US private equity firm Cerberus Capital in September 2010, before it had even been demerged from its former parent, brewing major Foster’s.

 

China’s Bright Food was also rumoured to have made an approach in 2011, just months after the spin-off from Foster’s had been completed.

 

But with the wine sector on the edge of a major recovery as global oversupply disappears and Chinese demand continues to surge, speculation is rife that a serious bidder for TWE will soon emerge.

 

“Whether it’s the next three months or the next three years, ultimately with that stable of brands, they’ll be attractive to a global player or the Chinese,” said Perpetual fund manager Matt Williams, whose company is TWE’s fourth-largest shareholder, with a 5.1 per cent stake.

 

“The market has recognised this also — TWE is not trading cheaply at over 20 times consensus earnings, so the market is not going to let it go for a song if a financial buyer turns up.”

 

Shares in TWE have risen as much as 67 per cent in the 19 months since the demerger, climbing from a debut price of $3.36 in May 2011 to a peak of $5.60 in September last year.

 

The stock has since lost some ground after warning in October that a slow start to the financial year would cut first-half earnings by up to 20 per cent, and closed at $4.71 on Friday, giving TWE a market capitalisation of $3.05bn.

 

Macquarie analyst Greg Dring has said TWE’s share price indicates the market expects “either a significant lift in earnings and/or a takeover” and has valued the company as high as $4.2bn in the event it hives off Penfolds into a separate company as part of a takeover defence.

 

The Chinese are certainly out there, having snapped up the Gemtree and Stonehaven wineries in South Australia and Ferngrove in Western Australia in the past 18 months.

 

John Geber, owner of Chateau Tanunda in South Australia’s Barossa Valley, said he was constantly being approached by Chinese investors wanting to buy him out, but dismissed rumours he was selling up.

 

“The Chinese guys have been looking around the Barossa with a couple of merchant banks and our name seems to be coming up all the time — you never say no, but it’s not what I want to do,” he said.

 

“It’s happening constantly — the Chinese want Barossa and iconic labels. I can’t believe how often we’re being approached, and they’re serious guys; they’re not tap-dancers.”

 

A number of Chinese investors also expressed interest in Nufarm chief Doug Rathbone’s Rathbone Wine Group, parent of wine labels Xanadu, Parker, Yering and Mount Langi Ghiran, which is close to settling on a sale to Australian wine group Hesketh for a price believed to be close to $10m.

 

Merrill Lynch analysts David Errington and Silvia Spadea have said the oversupply problems that dogged the Australian wine sector for the past seven years has disappeared as grape growers pulled out unprofitable vines, leaving a maximum capacity of about 1.6 million tonnes, all of which is needed to match current demand.

 

Meanwhile, demand from China is continuing to surge, with purchases of Australian wine up 16.3 per cent by volume and 23.1 per cent by value over the 12 months to the end of September.

 

Wine prices in the US, Australia’s biggest wine market in value terms, are now rising after more than a year of decline.

 

“New markets are opening up, and the supply of wine globally is tightening,” the analysts wrote in a briefing to clients.

 

“We believe that Treasury Wine Estates is in a unique situation, with the ability to materially increase its margin at the expense of the major retailers of the world.”

 

Brad King, portfolio manager at Armytage Private, said he had high expectations TWE would be taken over this year.

 

“The Chinese are the most likely, but the Europeans could still have a look at it because it has global brands and they might consider that their distribution networks could go into China better than TWE is doing now,” he said.

 

TWE chief David Dearie has markedly increased the company’s focus on the fast-growing Asian market for export sales, particularly China, adding sales staff and enhancing its marketing effort.

 

“David is over in Asia trying to spruik the wines, so they’re grooming the distribution and sales network, but if they could do the same thing through a takeover I think they’d consider it,” Mr King said.

 

However, neither fund manager thought it likely that TWE would hive off the flagship Penfolds brand as part of a takeover defence.

 

“I’m not sure how much the other assets are worth — if you look at Fairfax, you can see it’s not a good idea to hive off your best asset and leave a shell that is a lot less attractive,” Mr King said.

 

Mr Dring estimated Penfolds accounted for as much as 50 per cent of TWE’s pre-tax earnings.

 

 

——

STZ: 3Q13 Earnings Pre-Game Primer

 

Source: CITI

Jna 7th

 

Sales Should Increase – In 3Q13, we expect that STZ’s sales will increase 8.0% YoY (70 bps above consensus), an acceleration relative to the 1.2% increase in 2Q13. Our 3Q13 forecast reflects the strong dollar and volume sales trends seen for STZ’s wine and spirits brands in Nielsen-tracked channels in the U.S., as well as the easy YoY comp (as sales were down 27.5% YoY in 3Q12, reflecting the divestiture of the Australian and U.K. wine businesses).

 

Margins Should Expand – We expect that STZ’s gross margin will expand 30 bps YoY, to 40.8% driven by improving mix. Meanwhile, we believe that STZ’s operating margin should expand 60 bps YoY, to 22.4%, owing to reduced SG&A spending as a percentage of sales. Our estimate is 90 bps below the Street’s forecast given the stepped-up investment spending in support of TV advertising being introduced for several of its brands, including Woodbridge by Robert Mondavi, Black Box and Simply Naked. On a segment basis, the North America business should post a 25.0% operating margin, (+40 bps YoY), while we expect a 15.7% operating margin for Crown Imports (-30 bps YoY) due to negative mix-shift given the outsized growth that we have seen for lower-priced Modelo Especial in Nielsen-tracked channels.

 

EPS Should Increase – In 3Q13, we expect that STZ will deliver EPS of $0.54, which represents a 9.0% increase YoY and is one cent below consensus.

 

What We’re Interested in Hearing About – An update on the regulatory approval process for the Modelo acquisition; detail about Crown Imports’ recent beer price increases in the U.S.; further information regarding the consumer response to STZ’s new product launches; and an update on the sustainability of STZ’s wine category share gains.

 

Conference Call Details – Wednesday, Jan. 9, at 10:30 am ET. Dial-in: 973-935-8505.

 

 

——

Diageo’s open offer for United Spirits shares delayed: source

 

Source: Reuters

Mon, Jan 7 2013

 

UK drinks group Diageo’s mandatory tender offer to buy up to 26 percent of shares in India’s United Spirits has been postponed as the deal has yet to receive local regulatory approvals, a source with direct knowledge of the matter said on Monday.

 

Diageo agreed in November to buy a 53.4 percent stake in United Spirits Ltd for $2.1 billion under a two-stage process including the mandatory tender offer which was set to open on Monday and close on January 18.

 

A new date will now be set for the offer after the deal receives approval from the capital markets regulator Securities and Exchange Board of India and the Competition Commission of India, said the source.

 

United Spirits, which is currently controlled by Indian businessman Vijay Mallya, declined to comment on the open offer.

 

“The initial timings were clearly outlined as indicative only,” a Diageo spokeswoman said in London.

 

“We continue to work towards our initial timeline, which would see the transaction completing in Q1 2013,” .

 

Shares in United Spirits ended down 1.2 percent at 1,914.25 rupees on Monday, higher than Diageo’s offer to minority shareholders of 1,440 rupees a share. The stock is up nearly 43 percent since the announcement on the deal.

 

Some analysts have said the sharp jump in the stock price could mean the British group, owner of such brands as Johnnie Walker whisky and Smirnoff vodka, will be forced to sweeten the offer price.

 

 

——

United Kingdom: Suffolk Children aged 12 treated for alcohol abuse

 

Source: EADT

By Chris Harris

Monday, January 7, 2013

 

CHILDREN as young as 12 have needed specialist treatment for alcohol problems in Suffolk, new figures reveal.

 

The statistics, for the last three years, show 355 children were given specialist care because of concerns over their drinking.

 

But the figures, released by Suffolk PCT following a Freedom of Information request, reveal a downward trend in recent years and experts said last night that there is now better education and awareness in schools of the problems linked to alcohol.

 

There were 130 youngsters seen in 2009/10 – when at least one child aged 12 received treatment – but that fell to 114 the following year and to 111 in 2011/12.

 

Simon Aalders, co-ordinator at Suffolk Drug and Alcohol Action Team, welcomed the drop and said it was down to greater awarenes.

 

He said: “Young people are much more aware of the harm alcohol can do. There’s discussions in schools and education is where the most gains will be made.

 

“It helps them discuss and understand the impact drinking too much can have.

 

“The awareness raising has been absolutely fundamental to our ongoing success.”

 

Mr Aalders, although welcoming the drop to 111, said there were still youngsters they were not seeing.

 

He added: “There will always be a percentage of people that we don’t see. They will tend to have strong family networks.

 

“I’m not trivialising it in any way but it becomes a pattern of behaviour and they come out of it the other side without any long lasting conditions.

 

“We know it’s not just 111 [young] people in the county with alcohol problems. People present when they recognise they have a problem.

 

“They present when the young person is using alcohol and it’s having a negative impact on their lives. It does not necessarily mean alcohol addition.”

 

Suffolk’s figures, however, compare badly with North East Essex, which treated 67 children for alcohol problems over the same period.

 

Suffolk Primary Care Trust covers a population of around 600,000 people, compared with 322,000 at North East Essex PCT.

 

 

——

Scotland Food & Drink event encourages Amazon link up

 

Source: Harpers

by Carol Emmas   

Monday, 07 January 2013

 

Not-for-profit organisation Scotland Food & Drink has launched an event to encourage Scottish whisky and spirits distillers to grow its sales through online retailer Amazon.

 

The event, which takes place on January 31, is looking to give distilleries the opportunity to hear from the Amazon.co.uk team about their business and learn about what they look for from suppliers.

 

The briefing will cover an overview of Amazon.co.uk and its strategy, what it would mean to become a supplier, why companies should consider trading with Amazon.co.uk, opportunities for suppliers in Scotland and a Q&A session.

 

It will also host a Meet the Buyer session where companies are invited to apply for a one-to-one with the grocery team, to present products and discuss how they fit with Amazon.co.uk‘s trading requirements.

 

Amazon.co.uk is looking to develop its whisky and spirits offer in order to strengthen its current range. It is particularly interested in meeting distillers who are able to offer high-end products including premium spirits and malt whisky, and who have the capacity to manage volumes and a consistent supply.

 

Scotland Food & Drink is supported by the Scottish government and was created to guide food and drink companies of all sizes towards increased profitability, with the aim of growing the industry to a value of £12.5 billion by 2017.

 

 

——

Bill would let Colorado parents buy alcohol for children

 

Source: Denver Post

01/07/2013

 

Parents could be able buy alcohol for their children at Colorado bars and restaurants if they were 18 and older but not 21 yet, under a proposal by a Republican lawmaker.

 

Sen. Greg Brophy is introducing the bill for the legislative session that begins Wednesday. He says he thought of the proposal because he and his wife recently took their daughter to dinner to celebrate her 20th birthday, and she couldn’t have a drink with them.

 

Brophy says he also wants parents of returning servicemen to be able to buy their children drinks at bars or restaurants.

 

He says the bill would allow parents to buy their adult children drinks in any place that allows on-premise alcohol consumption. Wisconsin has a similar law.

 

 

——

Retired Businessman Purchases $27,000 Bottle Of Scotch

 

Source: FoxPhilly

Jan 06, 2013

 

A Portland, Oregon man is now the proud owner of a $27,000 bottle of rare scotch.

 

Retired businessman Lyle Shellenberg recently purchased the rare bottle of Glenfiddich scotch whiskey. He is now just one of only six people in the United States to purchase one of the 50 bottles released worldwide each year.

 

The hand crafted bottle came in a locked leather case.

 

Makers of the scotch say it spent half a century aging to perfection.

 

Shellenberg tells FOX News he plans to drink it at a special event sometime with his family.

 

 

——

Brooklyn Brewery to open plant, restaurant in Sweden by end of year

 

The pub will look out over Stockholm’s harbor and have room for 250 visitors indoors and outdoors.

 

Source: NEW YORK DAILY NEWS

By Stephen Rex Brown

January 6, 2013

 

How about a Brooklyn Lager with that Swedish meatball?

 

The 25-year-old Williamsburg-based brewery will open a plant and restaurant in downtown Stockholm by the end of 2013.

 

The new brew pub will look out over the Swedish capital’s harbor and have room for 250 visitors indoors and outdoors.

 

“Remember student exchange programs? How about brewer exchange programs,” the company wrote in an announcement on its website. “Swedish brewers will train in Brooklyn and learn our deepest, darkest secrets.”

 

Brooklyn Brewery honcho – who was a foreign correspondent before “retiring” to beer making – Steve Hindy wasn’t drunk when he chose Stockholm.

 

The Swedes can’t get enough of the beers familiar to most New York barflies, such as Brooklyn Lager, Brooklyn East India Pale Ale and Brooklyn Pilsner.

 

In other words, Sweden is the cure for whatever ales the borough, once the nation’s most important brewing center.

 

“Sweden is our largest export market and second biggest market overall,” the company wrote. The biggest market, of course, is New York City.

 

After training in Williamsburg, the Swedish brewers will start by crafting new Brooklyn Brewery beers that will only be available in the Stockholm brew pub.

 

 

——

Fine wine prices ‘could rise 14pc in 2013’

 

Prices of finest plonk on the benchmark wine index could trickle higher this year as investors plough their money into physical assets, according to a wine investment fund.

 

Source: Daily Telegraph

By Rachel Cooper

Jan 2013

 

Publishing its forecast for 2013, The Wine Investment Fund predicted that the main wine index – the Liv-ex 100 – will end this year 14pc above where it finished 2012.

 

The Liv-ex index is a marketplace for professional buyers and sellers of fine wine, with the Liv-ex Fine Wine 100 representing the price movement of 100 of the most sought-after fine wines.

 

Its members, including merchants, brokers, retailers and wine funds, account for the vast majority of global fine wine turnover.

 

The bulk of the index consists of Bordeaux wines, although wines from the Burgundy, the Rhone, Champagne and Italy are also included.

 

Last year, the Liv-ex Fine Wine 100 finished 9.6pc down on the year, compared to a 5.9pc rise in the FTSE 100 and a 2.1pc rise in the price of gold.

 

Compilers of the Liv-ex index said the market had been driven down by the eurozone crisis, sluggish Asian demand and a weak British economy.

 

But during the second half of the year, the market did stabilise, with a number of wines posting strong performances. For example, the release of new vintages for Taittinger, Dom Perignon and Cristal saw Champagne’s average share of exchange turnover more than double in 2012.

 

“Although this was a difficult year for the fine wine market, the Liv-ex indices have finished 2012 on a positive note,” said Liv-ex director James Miles.

 

“Since the lows of July, the value of bids on the Exchange has increased threefold, suggesting a return of confidence.”

 

Looking ahead to this year, The Wine Investment Fund said “conditions appear much brighter”, with the second half of 2012 having shown some signs of recovery.

 

The fund added that the return of confidence towards the end of last year heralded the start of a recovery in wine prices and that this will be maintained throughout the new year.

 

Although the fund believes there is an 85pc chance this year will see price rises, it added that falls of up to 5pc are possible. “Falls of greater than this are likely only to result from a major disruption to the world economy which is not foreseen by mainstream economic forecasters,” said the fund.

 

“In the longer term many investors are becoming nervous about the inflationary effects of the very loose monetary policies (low interest rates and the printing of money, known as ‘quantitative easing’) being pursued around the world,” added Andrew della Casa, director of The Wine Investment Fund.

 

“Like gold, wine is a physical asset which is immune to inflation and its value cannot be eroded by the actions of governments. It is therefore likely to attract attention when inflation fears rise. In the years to come, there is also the prospect of new sources of demand from markets such as India coming through.”

 

 

——

My Wine Goals for the Year, More and Less

 

Source: WSJ

By LETTIE TEAGUE

Jan 6th

 

ALMOST NO ONE who makes resolutions will stick to them. Such are the sad findings of a study published late last month by the Journal of Clinical Psychiatry, which reported that only 8% of the people who make resolutions are actually successful in keeping their pledge. But I’ve figured out how to beat the odds: I’ve made a New Year’s resolution to drink more wine-and less wine. That is, I’ll drink fewer of the wines that I already love, and more of the wines that I’ve somehow ignored. (In both cases, the numbers are large.)

 

The latter will likely prove easier to pull off than the former; most wine drinkers I know-including professionals and amateurs-have wines that they love and tend to favor. According to Gerald Weisel, proprietor of Weimax Wine & Spirits, in Burlingame, Calif., many of his customers want to drink the same wine over and over again. Mr. Weisel’s New Year’s wish would be for those wine drinkers to walk into his shop and ask for something ” ‘below the radar’ or, as my Italian friends say, ‘fuori strad’-off the road,” he said.

 

One of the wines I will have to give up is Chablis, a wine I drank a lot of in 2012. One reason was the 2010 vintage: The wines were simply outstanding that year. It was a classic vintage, producing wines of great purity and refinement that were also well priced. That’s another great virtue of Chablis; unlike other white Burgundies, Chablis is actually affordable. A basic Chablis costs as little as $15 a bottle, and even a grand cru Chablis from a top producer may cost $150 or so-considerably less than any other grand cru white Burgundy.

 

There are, of course, many other worthy French whites worth tasting-for example, the wines from Savoie, a mountainous region in the French Alps. Savoie whites made from the Jacquère grape have a crisp, Chablis-like character with a lovely floral aroma. While they may not be as complex as Chablis, they are very reasonably priced-even the best examples cost under $30 a bottle. The same is true of white wines from Roussillon, which may be even more interesting than the reds of this region and are also quite cheap. And then there’s Muscadet, the perennially underrated wine of the Loire. Although I drank plenty of Loire Valley whites in the past year (Vouvray, Sancerre and Montlouis), I didn’t pay much attention to Muscadet. And yet, the wine’s price/quality ratio is ridiculously skewed; a case of great Muscadet costs less than a bottle of grand cru Chablis. It’s a resolution that will be easy to keep.

 

One final white wine that I will resolve to support is German Riesling. And yes, German Riesling requires not just a promise of tasting but of full emotional commitment-just ask the sommeliers who are drinking (and selling) the stuff. In fact, if it weren’t for this country’s sommeliers, I don’t think anyone would be drinking German Riesling at all. But my pledge should be fairly easy to fulfill given the general excellence of the 2011 vintage in Germany.

 

As to red wines, I admit to lingering overly long over quite a few, including California Cabernets, Washington Merlots and Châteauneuf-du-Papes. The latter was particularly easy to do, thanks to a string of great vintages (2010, 2009, 2007) and all that ripe fruit. But this year I’ll be drinking more wines from other parts of the New World, such as Oregon and Australia (something I keep meaning to do), and the Northern Rhône, too. These sterner, more structured Syrah-based wines may be more forbidding in their youth than their southern counterparts, but the best possess an admirable depth, complexity and ageability, apparent even in wines from “lesser” appellations like Crozes-Hermitage.

 

As for Italian wines, I’ll be obliged to drink fewer from the north, since I paid more attention to regions like Piedmont and Friuli and Alto Adige than I did to, say, Campania, Abruzzi and Puglia in the south. I also overlooked too often the southern island of Sicily, where grapes with multivowel names like Nero d’Avola, Frappato and Nerello Mascalese are responsible for some of the most intriguing reds in modern Italian winemaking-and where there’s at least one winery owned by a faded British pop star.

 

I drank a lot of Spanish whites last year-I was practically awash in Albariño this past summer, and I had a brief but passionate affair with wines from the Priorat-but I thoroughly neglected Rioja, arguably Spain’s most classic region. And apparently I’m not alone: Even Richard Jennings, one of the most prolific tasters on Cellartracker.com, told me that one of his goals was to drink more Rioja in 2013-and that’s after he tasted more than 7,000 wines in 2012.

 

But there is much to be said in favor of Rioja, most notably that it is one of the rare wines aged by its producer; the wines are held at the winery until they are deemed ready to drink. Hence the proliferation of older Riojas on the market-many of them often quite cheap. (I found a lovely 2005 gran reserva for $20 last week.)

 

One wine I overlooked (and definitely under-drank) this past year was Port. If the definition of eternity is “two people and a ham,” according to Dorothy Parker (or Irma Rombauer, author of “The Joy of Cooking”-there’s some debate), then the definition of a debauched night would likely be two people and a bottle of Port. And yet a great vintage Port is one of the most civilized means of ending an evening. There just need to be at least six people at the table. Perhaps that will be part of my Port resolution: I will do more of my drinking with more of my friends.

 

My last resolution is thoroughly local (unless locavorism is “too 2012”): I’ll be drinking more wines made close(r) to home. That includes wines from Long Island, the Finger Lakes and even New Jersey, which claims more than 40 wineries now. In fact, according to a prominent wine economist, there is even a “world-class” Syrah vineyard in southern New Jersey, next to Jon Bon Jovi’s house. That vineyard is on my list to visit soon.

 

There are so many wines I look forward to drinking this year. And I think my resolutions will be easy to keep-though maybe not as easy as Amy Goldberger’s. Ms. Goldberger, the sommelier at Fifth Floor restaurant, in San Francisco, told me she has resolved to drink “more Riesling and less Riesling” in 2013.

 

May the New Year bring you every wine that you want-and more.

 

 

——

Lot18 Sours on Flash Sales, Lays Off 25 as It Shifts to Wine Subscriptions

 

Source: All Things D

January 7, 2013

 

Online wine seller Lot18 is shrinking and refocusing its business in an effort to become profitable.

 

This morning, the New York-based company handed out pink slips to about 25 employees, or about 35 percent of its staff, according to a source familiar with the matter.

 

Lot18 will now employ 46, half as many as it did a year ago.

 

It is the second layoff in the past year for the startup, which started selling wine online in November 2010.

 

The first round was tied to the discontinuation of its travel and food businesses, which it had expanded into shortly before raising $30 million in venture capital in late 2011. Investors include Accel Partners, New Enterprise Associates and FirstMark Capital.

 

This time, the layoffs are connected to a shift in strategy. Rather than exclusively operate as a flash sales company, which sells bottles of wine at a discount to a free membership base, it will also try to sell wine through a subscription model.

 

The model is already well established by others in the industry, such as Global Wine Company, which runs the New York Times Wine Club, for instance, and Direct Wines, which operates a wine club for The Wall Street Journal.

 

The recurring revenue stream is far more predictable than getting members to return to the site and pay for single orders. As it stands right now, Lot18 is a marketplace, so it does not own any inventory or warehouses. Instead, the company’s headcount is a considerable expense, as are its marketing costs to get new members – just like other sites, including Groupon. In addition, it subsidizes shipping, since wine is so heavy and fragile.

 

According to a spokesperson, the new initiative is allowing the company to scale back on the time and attention that the flash sales business requires. However, not all employees will be let go immediately and Lot18 plans to do select hiring for the new business.

 

In a statement, CEO Jay Sung said: “The team we have – and many of the excellent people who left the company today – worked incredibly hard to make Lot18 strong, but we need to resource according to our new business model and operate the existing business more efficiently with considerably less burn.”

 

The cuts impacted all parts of the company’s business, including marketing, procurement and merchandising. Andrew Koch, the company’s VP of product, left the company recently, and we are hearing that Barbara Anderson, the company’s chief counsel, is leaving voluntarily. Lot18’s founder, Philip James, remains with the company and is leading the launch of the new subscription business.

 

In the fourth quarter, the company tested two new subscription services. Customers could either sign up to receive six bottles for $99 a month, or 12 bottles for $149 a month (the first month cost $49 and $79, respectively).

 

Since its launch, the current club has exceeded its growth targets, the spokesperson said. A new product launch will occur in early 2013.

 

 

——

Three given suspended sentences for massive Champagne fraud

 

Source: Decanter

by Giles Fallowfield

Monday 7 January 2013

 

Three former managers of the Esterlin Champagne co-operative have been given eight-month suspended prison sentences and ?2,000 fines for selling fake vintage Champagne.

 

Between 2002 and 2005, Patrick Jean, the former president of Esterlin, commercial director Lysiane Géraudel and chef de Cave Franck Zehner sold 426,000 bottles of fake vintage champagne to the Ed supermarket group, a subsidiary of the Carrefour group.

 

The three were first indicted in 2005, as Decanter.com reported.

 

The Mancy-based co-operative also has to pay a fine of ?20,000, the court in Chalon decided before Christmas.

 

The court has additionally levied a fine of ?2.841m payable to French customs and excise

 

However the Ed supermarket group, which sought ?2m in damages, is understood to be unhappy with its award of ?5,000.

 

The CIVC, Champagne’s governing body, also brought a civil action against Esterlin, communications director Thibaut Le Mailloux confirmed.

 

It did this ‘as soon as the case was brought to the attention of the criminal court by the fraud squad,’ he said. ‘This is what we systematically do when such cases – albeit rare – occur. This shows our strong determination to take action against any company or individual whose criminal actions directly or indirectly damage the reputation of Champagne.’ It is unclear whether further action will be taken against the co-op.

 

During the trial Zehner said in a signed statement read out in court, ‘Since I arrived in 2000, there has never been a true vintage [Champagne] sold to Ed, never.’

 

The co-defendents claimed not to know what went on in the cellar and sought to blame Zehner for the fraud and other problems at the co-op. However the judge suggested Zehner would have had no interest in organising the fraud on his own. If that had been the case, he quipped, ‘We are here in the presence of a crime without a motive.’

 

When the current Esterlin president Eric Potié, who is also president of the Federation of Cooperatives of Champagne (FCVC), was asked by the judge if these practices had disappeared at the co-op, his response was: ‘In my position, I am unable to know exactly what is in the cellar, but it seems to be correct.’

 

 

——

Dievole and Poggio Landi bought by Argentina’s Bulgheroni

 

Source: Decanter

by David Furer

Monday 7 January 2013

 

One of Chianti Classico’s largest estates, Dievole, has been purchased by Argentinian billionaire Alejandro Pedro Bulgheroni, owner of several wineries in Argentina, Uruguay, and California.

 

Bulgheroni has also bought Poggio Landi in Montalcino for a reported ?15m. The 134ha estate, with 25ha of vineyards, formerly belonged to Stefano Cinelli Colombini, owner of Fattoria dei Barbi.

 

Bulgheroni has plans to renovate the estate, adding a new cellar, refurbishing the farmhouse, and beginning wine production once a winery is installed.

 

The wine production of both operations is being overseen by Tuscany’s Alberto Antonini, who for years has consulted to Bulgheroni’s Uruguay estate, Bodega Garzón.

 

Located 15km north of Siena, Dievole consists of 80ha of vines and substantial olive groves – and a luxury resort that was redesigned around its 15th century villa a few years ago.

 

The Tuscan businesses will be managed from Dievole with new management already in place.

 

According to statements made to the Italian press, Cinelli Colombini says production at Fattoria dei Barbi will remain unchanged.

 

 

——

Third Sideways novel to be set in Chile

 

Source: the drinks business

by Lucy Shaw

7th January, 2013

 

Rex Pickett, author of wine-themed novel Sideways, which inspired the Oscar winning movie of the same name, is to set the third part of the trilogy in Chile.

 

Pickett is currently half way through a four-month research trip to Chile, where he is gathering material for the novel, to be set in Chilean wine country, which is expected to be published in 2014.

 

Among the wineries Pickett has visited thus far are Casas del Bosque in the Casablanca Valley, Matetic and Viña Casa Marin in the San Antonio Valley, Lapostolle in the Colchagua Valley and Amayna in Leyda.

 

Pickett outlined the basic plot for the novel on his website: “Miles has been reduced to corporate outings after the success of his novel and the movie that sprang from it.

 

“He’s sucked the marrow out of the Pacific Coast and wants a big change. He could have gone to France, but everyone’s done France. Events will conspire to take him to Chile.”

 

At the end of Pickett’s second novel – Vertical – the sequel to Sideways, he hinted that protagonists Miles and Jack were headed for new horizons.

 

The Chile idea came about when Wines of Chile approached Pickett with the idea of a four-month sponsored trip

 

Pickett is full of enthusiasm for the country: “Chile is exploding with possibilities.

 

“It’s the mirror opposite of the US Pacific Coast, running from southern California all the way up to Washington, so you have this incredible range, not to mention all the microclimates and unique volcanic soils,” he told website This is Chile.

 

He believes Chilean wines are the perfect antidote to inaccessible pricy Burgundies.

 

“The most expensive bottle in the country is US$250 and everything else is way below that, yet the quality of the wine is there,” he said.

 

Pickett is still fine tuning the novel’s plot, and is toying with the idea that Miles gets invited to Chile as a guest of Wines of Chile, mirroring his own experience.

 

“Jack could come down to rescue Miles from an earthquake, fall in love with a woman and get dumped in the Atacama Desert.

 

“Maybe Miles’ love interest Maya comes back in the picture and their dream is to buy a plot of land in Patagonia to make biodynamic Pinot Noir,” Pickett told This is Chile.

 

“Chile will be a journey and wine will play a part, but I don’t know what that journey is yet because I have to experience the country first,” he added.

 

In addition to Sideways III, Pickett is also pushing director of the Sideways film Alexander Payne for a sequel based on his second novel, Vertical, set in Oregon, published in October 2010.

 

 

——

Increase Employee Productivity and Brand Image

 

Source: Advantage 24/7LLC

Jan 7th

 

Advantage 24/7LLC, a national direct to consumer marketing company, located in Buffalo NY has created a Turnkey solution that’s perfect for supporting a company’s Reward and Consumer E-commerce initiatives.

 

Barry Singer, CEO commented, “no matter how you go to market, a Branded Merchandise Store will create incentives for your employees, associates and customers to work more productively, sell more-buy more, and increase overall awareness and loyalty of your brand in the market”.

 

Advantage 24/7 provides all the resources to build a Branded Merchandise Store … including web site design and development, research and procurement of lifestyle products, warehousing and order fulfillment.

 

Company Branded Merchandise Stores encourage corporate pride, enhance business relationships and connect customers/consumers with your brand.

 

Company’s often consider building a Branded Merchandise Store, but after looking into the costs for product research, purchasing, warehousing and fulfillment, admin., etc. it is just too overwhelming.

Advantage 24/7 will do it all, a significant advantage for companies that want to control costs and eliminate wasted product purchases.     

 

You can reach Advantage 24/7 by emailing Barry.Singer@advantage24-7.com or calling 716-568-8090.

 

 

——

FDA proposes new food safety rules

 

Source: NRN

Alan J. Liddle   

Jan. 4, 2013

 

Proposed federal safety rules announced by the U.S. Food and Drug Administration today are expected to reduce the risk that restaurateurs will receive dangerously contaminated foods, industry, public health and consumer groups maintained.

 

The rules, which the Washington-based FDA promulgated as part of the Food Safety Modernization Act, or FSMA, signed into law by President Obama in 2011, appear to have no direct impact on restaurant-level foodservice operations, as they target food manufacturers and produce growers and harvesters.

 

But the measures, which will be subject to public comment for 120 days before being finalized, have the attention of restaurateurs, as they will impact the quality of the overall food supply, thereby reducing their potential liability.

 

“For the foodservice industry, there is no greater priority than food safety and our customers’ well-being. The National Restaurant Association strongly supports the Food Safety Modernization Act and believes these changes should provide for safer imported and domestically produced foods,” said Joan McGlockton, NRA vice president for industry affairs and food policy.

 

FDA officials said new rules build on strides made during the Obama administration, such as the first egg safety rule protecting consumers from Salmonella and stepped-up testing for E. coli in beef, as well as existing voluntary industry guidelines for food safety.

 

The first rule proposed Friday would require makers of food to be sold in the United States, whether produced at a foreign- or domestic-based facility, to develop a formal plan for preventing their food products from causing foodborne illness, not unlike the Hazard Analysis Critical Control Points, or HACCP, program now followed by the meat and seafood industries, said Michael Taylor, FDA deputy commissioner for foods and veterinary medicine. The rule would also require manufacturers to have plans for correcting any problems that arise.

 

FDA officials said the second rule proposed Friday calls for enforceable safety standards for the production and harvesting of produce on farms drawn from science- and risk-based standards for the safe production and harvesting of fruits and vegetables.

 

“The FDA Food Safety Modernization Act is a common-sense law that shifts the food safety focus from reactive to preventive,” U.S. Health and Human Services Secretary Kathleen Sebelius, said in a statement about the goal of FSMA and the new rules. “With the support of industry, consumer groups and the bipartisan leadership in Congress, we are establishing a science-based, flexible system to better prevent foodborne illness and protect American families.”

 

Once the final rules are entered into the Federal Registry, large food manufacturers will have a year to comply and large growers up to 26 months to fall in line, while smaller companies may be granted longer compliance deadlines.

 

Jean Halloran, director of food policy initiatives at public-advocacy group Consumers Union, said her group looks forward to analyzing the proposed rules “that really go to the heart of the problems we’ve had with food safety in recent years.”

 

“The produce rule should take aim at serious problems like the 2006 outbreak of E. coli in spinach, which caused several deaths,” Halloran said. “The ‘preventive control’ rule [for manufacturers] should help put a stop to incidents like the salmonella outbreaks at the Peanut Corporation of America in 2009, which killed nine people, and the Sunland plant last year, which left hundreds of people sick.”

 

But at least one food-safety advocate and foodborne illness litigator, Seattle attorney Bill Marler, questioned whether the rules alone will achieve the goal of safer food for restaurants.

 

“Clearly, for restaurants that are buying fresh produce, conceptually, this should make it less of a risky product,” Marler said of the proposed grower rules. “My difficulty with the rules is that ultimately they require an enforcement mechanism, [and] that is a manpower issue.”

 

Marler said he believes that the current system for most non-meat food inspections that often rely on third-party audits of fields or facilities has not worked well, as was evident by recent deadly outbreaks of peanuts and cantaloupes, among others, in which the producers had received passing audit scores before the problems erupted.

 

“In the outbreaks I’ve been involved with, 90 percent of the time there has never been an FDA inspector in the plant or, if there has been, it was five years ago. That simply is not adequate,” Marler said.

 

The passage of the Food Safety Modernization Act and the new rules “gives us the opportunity to rethink how you spend inspection dollars and how you do inspections,” added Marler, who said his public comments about the new rules will include advocacy for a stronger system of federal and state inspectors instead of increasing reliance on private-sector inspectors paid for by business and ultimately consumers, through finished goods pricing.

 

 

——

Benihana Settles With Fired Managers Over Unpaid Vacation (Excerpt)

 

Source: Law360

By Joshua Alston

January 07

 

Benihana National Corp. has agreed to pay $660,000 to settle a class action brought by former Benihana managers who said the restaurant chain forced them to forfeit their unused vacation time upon termination, according to a motion filed Tuesday in California federal court.

 

Benihana will pay $460,000 to settle the vacation claims, plus an additional $200,000 to cover the plaintiffs’ legal fees, according to the motion. Benihana maintains it was not liable for the claims, but agreed to pay the settlement to avoid a protracted court battle, it says.

 

U.S. District Court Judge William H. Alsup is scheduled to hear the motion Jan. 24.

 

 

——

Morrison lags behind rivals as sales fall

 

Source: FT

By Andrea Felsted and Rose Jacobs

Jan 7th

 

Wm Morrison confirmed its position as one of the big retail losers this Christmas, although the supermarket chain avoided a profit warning.

 

Dalton Philips, chief executive, said Morrison had failed to entice enough “floating” shoppers, blaming lacklustre promotions, an embryonic convenience arm and the lack of an online food business.

 

Mr Philips said Britain’s fourth-biggest supermarket chain had struggled to “give that floating customer a reason to say hey, at Morrison they have got great value and they do some things better than everybody else”.

 

He said the group had also failed to distinguish itself from rivals in a sea of “me too” promotions.

 

Morrison, a winner in previous Christmases, had also suffered the “major headwind” of not having a significant convenience and online business.

 

The comments came as Morrison said sales at stores open at least a year fell 2.5 per cent year-on-year in the last six weeks of 2012, excluding fuel and VAT.

 

The figures were slightly better than the 2.8 per cent fall forecast by some analysts.

 

However, analysts at Citi said the performance was flattered by an additional day of trading, which may have boosted the performance by 1-2 percentage points.

 

Mr Philips denied that the group was “disenfranchising” its core customers, with revamped stores, including exotic fruit and vegetables and the use of misters to keep produce fresh, particularly given increasing competition from the so-called hard discounters such as Aldi and Lidl.

 

“It is just not factually correct,” he said, pointing to strong growth from its “M Savers” value range.

 

Mr Philips also signalled that Morrison would unveil a move into online grocery retailing later this year, when it announces full-year results in March.

 

He said he was “100 per cent confident” he would be with the group in March to update the City, despite the deteriorating performance.

 

One top 10 shareholder said he continued to support Mr Philips.

 

“They have got a very difficult environment out there, but he’s painfully honest in what needs to be done, and they are tackling these things,” said the shareholder.

 

However, another top 10 shareholder said Morrison had done a good job in cutting costs to address the sales weakness, but this “probably does indicate that at some point shortly they are going to have to rebase their profits in some way”.

 

Mr Philips said profits for the year to February would be “broadly in line with expectations”, holding the shares broadly flat at 257p.

 

However, Clive Black, analyst at Shore Capital, cut his forecast of this year’s pre-tax profit from £916m to £863m. Philip Dorgan at Panmure Gordon cut his forecast of pre-tax profit in the year to March 2014 from £866m to £811m and in 2015 from £895m to £800m.

 

 

——

Saudi Arabia: Filipino liquor ring busted in Saudi

 

Source: Emirates 24 / 7

Monday, January 07, 2013

 

Saudi Arabia’s feared religious police arrested several Filipinos found to be manufacturing alcoholic drinks and selling them in the local market.

 

Members of the Commission for the Promotion of Virtue and Prevention of Vice seized what newspapers described as the “liquor gang” during a raid on their house in the western Red Sea port of Jeddah, Saudi Arabia’s second largest city after Riyadh.

 

Sabq daily said police confiscated six barrels full of alcoholic drinks and tools used in making the liquor, adding that all the liquor was destroyed. It did not say how many Filipinos were arrested during the raid.

 

Liquor is strictly banned in Saudi Arabia, one of the most conservative Muslim nations with a population of 28 million, including around eight million foreigners.

Liquor Industry News 1-7-13

January 7, 2013

 

cropped-428972_4039832247273_131052073_n.jpg

The Great Vine Decline

 

Source: Financial Times

Jancis Robinson

Jan 4th

 

The rise in the incidence of vine wood diseases is worrying vignerons

 

Throughout my recent travels tasting the 2011s in Burgundy and the Rhône valley, I encountered worried vignerons. This was not the well-ventilated problem of 2012’s demanding growing season and short crop, but something potentially much more serious and long term.

 

It was my very first stop in the Côte de Nuits, in the well-kept cellars of Denis Bachelet in Gevrey-Chambertin, that first alerted me. Bachelet is a mild man who makes delightfully balanced wines and is not given to exaggeration. But he is worried about the health of his vines, and, in particular, the fact that they seem to be dying off at a rate of between 10 per cent and 20 per cent a year because of esca, a disease that affects the wood of the vine.

 

Up the road in the world-famous cellars of Domaine Armand Rousseau, Eric Rousseau told me how their revered Pinot Noir vines are dying too. A significant proportion of their 50-year-old Cazetiers Premier Cru vines are now having to be replaced each year, for example. In Châteauneuf-du-Pape, Paul-Vincent Avril’s treasured Clos des Papes vineyards have also been losing about 100 vines per hectare each year to disease. And the worst of it is that there is no known cure.

 

All that is known is that, most unfortunately, esca has so far been much more likely to affect old vines – those at least 10 years old – than young ones. I say unfortunately because the quality of wine made from old vines well-acclimatised to local conditions with their deep root systems and relatively low yields, is famously better and more complex than the typical produce of young vines – which is why so many labels proclaim Old Vines, Vieilles Vignes or Viñas Viejas.

 

But esca is increasingly seen on young vines too, and is associated with a substance known as “black goo”. Both wood and leaves can develop patterns of discolouration, generally stripes or spots. Leaves, then stems, may suddenly shrivel in the middle of the growing season, the bunches of grapes fall to the ground and the vine suffers apoplexy, or sudden death. It’s impossible to predict how soon a vine will die after the first symptoms appear, but it can happen in a matter of days, particularly in midsummer in dry weather after a period of wet weather.

 

Then there are at least two more nasty conditions that are currently preoccupying The International Council on Grapevine Trunk Diseases (formed in 1999): eutypa dieback, also known as eutypiose, and a newer one on the scene known as botryosphaeria dieback, black dead arm or BDA. All of them have been much more evident recently, particularly last year. One theory put forward in a paper on the increased incidence of esca and BDA, published by the Institut Français de la Vigne et du Vin last September, is that the unusually wet spring of 2012 followed by unusually high temperatures in early summer may have stressed the vines and left them particularly vulnerable – with some vineyards suffering losses of up to 50 per cent of vines.

 

It has been known since the beginning of this century that both Sauvignon Blanc and Cabernet Sauvignon, the much admired vine variety and the noblest grape of the Médoc in Bordeaux, are particularly susceptible to all three of these maladies. What is worrying is that they seem to be spreading to varieties such as the Pinot Noir of Burgundy that were not previously thought to be especially prone.

 

Despite considerable monitoring and identification of various associated fungi, very little is known about exactly how and why the disease spreads. Until the beginning of this century vines used to be treated with arsenic but, for obvious reasons, this is now banned – which may have played a part in the rise in incidence of these vine wood diseases. And they are by no means limited to France. They are now common in Italy and seem to have swept their way through Spain from north to south – and are now so familiar that some Spanish vintners have evolved a folkloric way of dealing with them. Vine trunks are rent asunder, the two halves wedged apart with a big stone to encourage the offending fungi to dry out, and the next year’s growth taken from a new branch that sprouts below the join. Fingers are then tightly crossed.

 

The maladies are not (yet?) quite so prevalent in Germany but are becoming more so, as they are in Switzerland where hopes are being pinned on a new pruning technique developed in Italy which may stave off the spread of the relevant fungi. One theory is that it is pruning rather than the fungi themselves that provoke the diseases.

 

It is all rather horribly reminiscent of the last wave of vine pests and diseases to spread through Europe in the 19th century when powdery and downy mildews were followed by the most deadly of all, the phylloxera louse, fatal to European vines. At one point it looked as though the whole of French wine production was doomed, until it was realised that American vine species are resistant to phylloxera, since which time most European vines, and the members of European species that produce 97 per cent of all wine made today throughout the world, have been grafted on to phylloxera-resistant American roots.

 

Mickaël Anneraud, director of the Médoc subsidiary of the local Chamber of Agriculture, has a theory that the characteristics of rootstocks may hold the key. He has noticed that even in contiguous plots in his much-affected wine region, vines that are 25-40 years old have been more robust than those that are around 20 years old, planted when the rootstocks commonly used were markedly less vigorous. He thinks it may be worth researching a possible link with vine vigour (how leafy the vines tend to be).

 

The Burgundians, on the other hand, feel bereft since they have no equivalent of the vast, well-funded, wine-minded University of Bordeaux. One theory is that the nurseries have been cutting corners when sanitising the young cuttings they sell, a worrying echo of what happened to the quality of wine corks a decade or so ago.

 

 

——

GuestMetrics Releases Full Year 2012 Cocktail / Flavor Trends based on locations with over $8B in sales during past 24 months

 

Source: GuestMetrics

Jan 6th

 

Flavored cocktails drove category growth in 2012.

 

According to GuestMetrics, based on its extensive proprietary database of POS transactions from restaurants and bars, sales of cocktail drinks grew +1.9% in 2012 compared to 2011, which was disproportionately driven by sales of flavored drinks. The data is based on analyzing 24 months of data representing over $8 billion dollars in transactions and over 250 million checks across the entire US.  “In analyzing the nearly 2,000 unique cocktail types captured in our system and comparing sales for full year 2012 versus full year 2011, we see that cocktails grew nearly 2%.  However, this growth was driven largely by cocktails that have a specific flavor associated with the drink,” said Bill Pecoriello, CEO of GuestMetrics LLC. In addition to analyzing the 2,000 cocktail types, GuestMetrics has also classified the flavors of each cocktail.   “While flavored cocktails make up about 26% of cocktail sales, they accounted for 51% of the incremental growth in 2012.”  According to Pecoriello, flavored cocktails grew 3.9% in 2012 versus the more tepid pace of 1.3% experienced by regular cocktails without a specific flavor associated with them.

 

“This disparity in growth rates of flavored drinks over non-flavored drinks is also evident in the types of cocktails sold, with the largest category share gains experienced by Margaritas and Mojitos, while at the other end of the spectrum, we see that Cosmopolitans and Martinis experienced the greatest share loss in 2012,” said Peter Reidhead, VP of Strategy and Insights at GuestMetrics.  Based on data from GuestMetrics’ POS database, the specific flavors that achieved the largest share gains across all cocktail types in 2012 versus 2011, in descending order of their share growth in basis points, were Mango (+35), Tea (+30), Ginger (+15), Melon (+15), and Cucumber (+10).

 

“As the pressure to innovate continues to grow, it will be increasingly important for the various spirits companies to have a finger on the pulse of what is really driving the incremental growth in on-premise,” continued Pecoriello, “and based on our data, we believe having a detailed understanding of which specific flavors are growing the fastest is a critical factor when these companies consider line extensions for their existing brand portfolios.  Staying on top of the latest flavor trends will be critical as consumer tastes continue to change and the duration of flavor trends varies from market to market.”

 

“For restaurant and bar operators it critical to manage cocktail assortment and increase exposure to the fastest growing cocktail types and flavors while reducing dependence on cocktail types and flavors which are falling out of favor” said Brian Barrett, President of GuestMetrics. “The success of a beverage alcohol program is one of the most important differences between those operators enjoying strong sales and traffic and those experience declining sales and profits.”   The results vary widely by city and by restaurant type, requiring detailed local market information in order to drive traffic and improve profits.  In 2012, the cocktail flavor types that lost the most market share are Apple, Chocolate, Pomegranate, and Banana.

 

About GuestMetrics LLC

GuestMetrics, LLC is revolutionizing how the hospitality industry operates.  Despite the dawn of the Digital Age having begun more than three decades ago, the hospitality industry essentially functions the same way it did centuries before.  GuestMetrics has cracked the code by collecting data from tens of thousands of restaurants and  turning billions of raw transactions into intelligible data that is fundamentally transforming the business operations of everyone from the independently-owned bar/restaurant on the corner, to multi-national chains, to the food & beverage companies that supply them.  Please visit www.GuestMetrics.com for more information , to arrange for a free demo or to inquire about subscribing to our data services..

 

 

——

Sazerac Company Launches Sazerac Logistics Services (SLS)

 

Source: Sazerac Company

Jan 7th

 

Today, Sazerac Company announces the launch of its Sazerac Logistics Services Division (SLS) which will provide a full range of logistics, manufacturing, compliance, finance and administrative services to spirits suppliers in the industry that want to focus their energies on brand building, sales and marketing activities as opposed to operations and back of house activities.

 

“Sazerac’s logistics, manufacturing and administrative platform provides a perfect vehicle for industry companies wanting to save significant costs which in turn can be dedicated to increased sales and marketing activities” said Kent Broussard, who will be spearheading the addition of customers for this new division.

 

Sazerac launches the division with an existing roster of clients and expects to add several additional customers in the coming months.

 

Spirits companies interested in learning more about SLS should contact Kent Broussard at kbroussard@sazerac.com

 

 

——

PERNOD RICARD : Completion of the Disposal of Certain Aquavit and Bitter Brands and Assets for 103 Million

 

Source: 4-Traders

01/04/2013

 

Following satisfaction of regulatory closing conditions and in line with the previous press release of 13 July 2012, Pernod Ricard (Paris:RI) announces the completion of the sale to Arcus-Gruppen of the Danish aquavit brands Aalborg and Brøndums, the German brand Malteserkreuz Aquavit and the Danish bitter brand Gammel Dansk.

 

The transaction also includes the sale of the Aalborg production plant in Denmark.

 

About Arcus-Gruppen

Arcus-Gruppen AS is a leading player in the sale and marketing of wine and spirits in the Nordic region and selected international markets. The company holds the leading aquavit brand Linie, the international vodka brand Vikingfjord and the Nordic top selling cognac brand Braastad. Arcus-Gruppen is the largest importer of wine to the Swedish market and the Norwegian markets through relationships with some of the world premier producers of wine. The Arcus-Gruppen headquarters are located outside Oslo in Norway, where the company has new offices, distribution centre and production facilities. Arcus-Gruppen employs 470 people and generates an annual turnover of approximately NOK 2 billion. Arcus-Gruppen key values are market focused, goal oriented and united. The principal owner is the listed Swedish private-equity conglomerate Ratos AB.

 

 

——

Asia Pacific head quits SPI Group (Excerpt)

 

Source: Just-Drinks

By Olly Wehring

4 January 2013

 

The regional director for SPI Group’s operations in the Asia Pacific region has left the company, less than nine months after joining the Stolichnaya vodka owner.

 

just-drinks can exclusively reveal that Nigel Bath has stepped down from the role that he assumed in April last year. A replacement has not been secured yet.

 

 

——

ABI Pushes Back Against NTSB Interlock Recommendations

 

Source: ABI

Jan 4th

 

The National Transportation Safety Board (NTSB) issued recommendations in December urging states to pass laws requiring the installation of ignition interlock devices for all drunk driving offenders–even low-BAC, first-time offenders. NTSB also pushed for the rapid completion of the Driver Alcohol Detection System for Safety (DADSS) program, the federal program developing technology to detect a driver’s blood alcohol concentration (BAC) level before allowing the car to start.

 

ABI fiercely opposes those recommendations and our position was covered by Bloomberg, the Associated Press, CBS Evening News, USA Today, The Los Angeles Times, CNN, and local television affiliates throughout the country.

 

 

——

Wells Fargo’s Weekly Economic & Financial Commentary

 

Source: Wells Fargo

Jan 4th

 

U.S.

.         Nonfarm payrolls increased by 155,000 in December with the unemployment rate steady at 7.8%.

.         Reconstruction following Hurricane Sandy helped increase construction employment by 30,000, the largest monthly gain in more than a year.

.         Sluggish global economic conditions combined with uncertainty surrounding the fiscal cliff have hindered manufacturing activity.

.         The lack of a long-term solution from the fiscal cliff debate is keeping manufacturers cautions.

.         Total construction spending fell modestly in December, while residential outlays continue to be strong.

.         Despite some dissenting views among FOMC members, asset purchases are likely to continue into 2014.

 

International

.         The Japanese economy continues to struggle with weak foreign demand and business confidence, coupled with falling industrial production.

.         In response, the Japanese government is considering a stimulus package to jump-start the economy.

.         On the opposite end of the spectrum, South Korea’s economy is strengthening with increasing industrial production, improving business confidence, and a declining unemployment rate.

.         Despite continuing to grow, China’s economic growth has decline recently.

.         However, economic growth appears to be stabilizing with rising industrial production, along with firming business and consumer confidence.

 

Point of View

.         Interest Rate Watch

.         In the current economic environment, credit is fundamentally mispriced and misallocated because the choices made by borrowers and lenders are not following traditional supply and demand forces.

.         Credit Market Insights

.         Mortgage applications slumped in the last few weeks of 2012 as uncertainty surrounding taxes and tax credits/deductions pushed potential new buyers away from the market.

.         Expectations for continued low interest rates and additional fiscal uncertainty stemming from the pending debt ceiling debate may be reducing the sense of urgency to get in the market now.

 

Topic of the Week

.         The Almost Fiscal Cliff Deal

.         At the 11th hour, Congress passed a bill to avert the fiscal cliff.

.         By extending Bush-era tax rates for most Americans and certain pro-business tax credits and by deferring spending cuts for two months, Congress and the President added nearly $4 trillion to the federal deficit over 10 years when compared to what would have occurred if all the tax increases and spending cuts were allowed to go into place.

.         Even with this deal, additional discussions regarding the debt ceiling and spending cuts scheduled for February and March will create additional uncertainty for businesses and consumers.

 

 

——

RUM FOR ALL Enters Second Year of Bringing the Evolving Story of Rum to North America!

 

Source: Spirit Journal, Inc.

January 7, 2013

 

Spirit Journal, Inc.’s Rum For All, the groundbreaking Rum advocacy initiative, is entering its second full year of activities with an ambitious docket of planned trade/media and consumer events. Rum For All is the unique, innovative partnership between blue chip rum producers and independent spirits experts and journalists F. Paul Pacult and Sean Ludford.

 

The core goal of the initiative is to educate beverage industry trade professionals, media and, starting in 2013, consumers through dynamic seminar/tasting events, an educational website and active social media about the folklore, history, production and mixology applications of Rum.

 

Said Ludford, “In our first full year, Paul and I hosted major events in Vancouver, New York, San Francisco, New Orleans, Boston and Dallas geared directly to beverage retailers, bartenders and media. This year, the Rum For All roadshow will hit Chicago, Denver, New York and Washington D.C., with more cities in the planning stage, including the Pacific Northwest. The resurgence of the Rum category is evident just by the crowds that Rum For All is attracting in every city.”

 

Added Pacult, “In 2013, we will be adding one, possibly two new Rum producer members to the remarkable roster of existing A-list producers. And on Saturday, April 13th in New York, we will host our exciting Rum For All “Rum Day at Astor Center”, where consumers will get the daylong opportunity to attend a formal sitdown Rum tasting and cocktail party. Another tasty perk for attendees will be that Astor Wine & Spirits will be featuring selected Rums at special sale prices that day. How could any red-blooded American imbiber not love that concept?”

 

The Rum For All Founding Members for 2013 are:

. 10 Cane, Trinidad

. Appleton Estate, Jamaica

. Bacardi, Puerto Rico

. Banks Rum

. Brugal, Dominican Republic

. Cruzan, Virgin Islands

. Denizen

. Depaz, Martinique

. Diplomatico, Venezuela

. Don Q, Puerto Rico

. Mount Gay, Barbados

. Ron Abuelo, Panama

. Shellback, Barbados

. Zacapa Rum, Nicaragua

 

For more information and/or to subscribe to the monthly Rum For All e-newsletter, please log onto www.rumforall.com. You can also like Rum For All on FaceBook www.facebook.com/rumforall.

 

About Spirit Journal, Inc.  Founded in 1991 by F. Paul Pacult and Sue Woodley, Spirit Journal, Inc. is a leading publisher, events producer and consulting firm to the beverage industry. For more information, please email mail@spiritjournal.comor call 845-895-8910.

 

 

——

A walk down New Gin Lane

 

Source: FT

By Tim Hayward

Jan 4th

 

The resurgence in the British gin scene should have plunged Tim Hayward into dipsomaniac’s nirvana – but instead he’s confused

 

I am extremely fond of gin. I love its subtlety, its fragrance, its fascinating history and, above all, its power to render me as comprehensively wrecked as a smashed crab in fewer than four servings.

 

Imagine, then, my delight at the current resurgence in the British gin scene with every back-bar loaded with tailored, designered, bespoke and exotic gins created by keen, young, independent distillers. I should be in dipsomaniac’s nirvana, but instead, I am confused.

 

Our national relationship with gin is old and well-established. Between 1689 and 1697, the British government, troubled by the increasing consumption of imported wines and brandies, created legislation which taxed these drinks heavily while encouraging the domestic distillation of gin. Within a few years anyone with access to quantities of wheat and some simple equipment was turning out gallons of cheap “white lightning” – pure (ish) alcohol. Unlike the Scots and the French, we didn’t waste valuable drinking time storing or maturing the stuff in barrels, we just flavoured it with various aromatics. The most popular was juniper – an idea we’d freely nicked from the Dutch who called it “jenever”, hence the contraction “gin” – but many others were used. The British took to gin with astonishing alacrity and soon drunkenness was effectively epidemic; the “gin craze”. Early Georgian governments attempted control through legislation culminating in the Gin Act in 1751 – the same year William Hogarth etched and engraved his brilliantly dystopian “Gin Lane”.

 

Sophisticated distillers added the aromatics before distillation to produce a gorgeous limpid fluid. This is a “distilled” gin. A simpler method much favoured by the Georgians was simply to chuck in the ingredients and let them macerate to create a so-called compound gin. You can still make your own compound gin by dropping a few juniper berries and other herbs and spices of your choice into a bottle of vodka (essentially flavourless spirit) and letting it stand around long enough for the flavours to transfer.

 

For many years, most of the big-brand gins tasted predominantly of juniper. Bombay Sapphire was the first to rack up the exotic aromatics, which, along with a highly decorative blue bottle, made many a hardened barfly wonder whether to drink it or dab it behind their ears. Since then, gins with everything from grapefruit to citrus and, in one case, geranium predominating, have filled the shelves.

 

Gin, then, is defined by the quality of its aromatics – as our new artisanal master distillers are amply demonstrating – but it’s here that my confusion begins.

 

Gin is almost never drunk neat, or even, as the Georgians were fond of doing, with a little hot water to bring out the aromas. Purists will mix it into a lethal martini, with vermouth – a fortified wine flavoured with another complex mixture of botanicals. Even hardier topers will order their gin “pink”, with a splash of bitters – a strong alcohol base flavoured with, you’ve guessed it, a complicated and usually secret melange of aromatic roots, herbs and spices etc.

 

Perhaps this made sense back in the days of Hemingway, Benchley and Parker, when gin was of a simple, just-post-prohibition character. Today though, if the marketing material can be believed, a hipster with a still has spent half his life selecting the combination of flavours most calculated to seduce our senses. The very idea that we should then serve it with another unrelated mixture is like telling a chef you want his sauce bordelaise served blended with someone else’s custard.

 

Serving a decent gin with “tonic” – mass-produced, sugary fizz, laden with bitter quinine – is little short of blasphemy and it’s no use telling me it “contrasts with the sweetness, cuts through the oiliness or brings out the flavours”. Tonic could stun the palate of a scavenging rat. and that’s before we stick a lump of lemon in it.

 

It seems that to stop my senses becoming permanently and terminally confused, I’m going to have to make a fairly simple choice. I can either ignore the blandishments of the new craftsmen and stick to gin that tastes of nothing but juniper. Or I could learn to drink it like a Georgian costermonger: with furtive pleasure, a shifty glance and a shot of hot water.

 

 

——

Recreational marijuana users could get pot from vending machines, company says

 

Source: NBC News

By Jeff Black

Jan 4th

 

Now that Colorado and Washington have legalized marijuana, entrepreneurs are embarking on what is being called “the green rush.” NBC’s Pete Williams reports.

 

If a California company has its way, recreational marijuana users in Colorado and Washington state will one day be able to get their pot out of vending machines.

 

Such machines are already in use in some states where medical marijuana is legal, but now the maker’s founder says the company is working to adapt the machines to comply with new laws in Colorado and Washington, where adults can legally use marijuana for recreation.

 

The vending machines for medicine require a fingerprint scan to verify the identification of the patient, which is then linked to a prescription on file.

 

But as Washington and Colorado figure out how to create a legal pot market for the masses, Hollywood-based Medbox, a public company, is offering up its expertise in convenient delivery systems.

 

“One day we envision these machines to be accessed, when it’s allowed, 24 hours a day,” Vincent Mehdizadeh, the founder and chief consultant of a subsidiary of Medbox that produces, installs and consults on the vending business, told NBC News. “One day in the future that may happen, but for now these machines sit behind the counter as an inventory control and compliance tool.”

 

He said the Medbox machines and consultancy are in high demand in states such as Arizona, Massachusetts and Connecticut that have published medical marijuana regulations. Dispensaries use them to keep marijuana from being pilfered and comply with laws.

 

So where will all that ‘legal’ pot come from? Sale of pot stymied

 

Medbox is now offering to work with Washington and Colorado officials who are mobilizing to create the framework for a legal marijuana industry – and to collect taxes on pot sales.

 

“These machines behind the counter act an inventory control and taxation tracking tool so that the states can effectively track the taxes and collect on them more efficiently with real-time reporting directly from the machine to the state database,” Mehdizadeh said.

 

The company also helps operators get licensed in states that have licensing programs.

 

“We’ve probably been the most successful consulting firm in the marijuana business,” he said.

 

Mikhail Carpenter, spokesman for Washington’s Liquor Control Board, said Medbox has been in contact with the state but at this point no outside vendors have been chosen to help with marijuana sales.

 

Under state law, marijuana and marijuana-infused products, Carpenter said, would have to be sold from inside the confines of a retail outlet.

 

“So I can’t imagine with the way the law is written that you would see vending machines on the street corner,” Carpenter told NBC News.

 

In November, Washington and Colorado voters passed initiatives to legalize the recreational use of marijuana. Those laws went into effect last month.

 

In Washington state, voter-approved Initiative 502 made it legal for anyone 21 or over to possess up to an ounce of marijuana, 16 ounces of “solid marijuana-infused product” (pot brownies and such) or 72 ounces of “marijuana-infused liquid.

 

Washington’s Liquor Control Board has until Dec. 1 to develop rules for implementation of its new recreational marijuana law.

 

Colorado, under Amendment 64 to the state Constitution, legalized not only recreational use, but also home growing, which is still illegal in Washington.

 

Growing, selling and possessing marijuana remains illegal under federal law, and the federal government is reviewing options in both Washington and Colorado.

 

President Barack Obama last month weighed in on the issue, telling ABC’s Barbara Walters the federal government has more important things to do than go after recreational marijuana users.

 

“We have bigger fish to fry,” he told Walters.

 

 

——

Have We Lost the War on Drugs?

 

After more than four decades of a failed experiment, the human cost has become too high. It is time to consider the decriminalization of drug use and the drug market.

 

Source: WSJ

By GARY S. BECKER and KEVIN M. MURPHY

Jan 4th

 

The American “war on drugs” began in 1971.

 

President Richard Nixon declared a “war on drugs” in 1971. The expectation then was that drug trafficking in the United States could be greatly reduced in a short time through federal policing-and yet the war on drugs continues to this day. The cost has been large in terms of lives, money and the well-being of many Americans, especially the poor and less educated. By most accounts, the gains from the war have been modest at best.

 

The direct monetary cost to American taxpayers of the war on drugs includes spending on police, the court personnel used to try drug users and traffickers, and the guards and other resources spent on imprisoning and punishing those convicted of drug offenses. Total current spending is estimated at over $40 billion a year.

 

These costs don’t include many other harmful effects of the war on drugs that are difficult to quantify. For example, over the past 40 years the fraction of students who have dropped out of American high schools has remained large, at about 25%. Dropout rates are not high for middle-class white children, but they are very high for black and Hispanic children living in poor neighborhoods. Many factors explain the high dropout rates, especially bad schools and weak family support. But another important factor in inner-city neighborhoods is the temptation to drop out of school in order to profit from the drug trade.

 

The total number of persons incarcerated in state and federal prisons in the U.S. has grown from 330,000 in 1980 to about 1.6 million today. Much of the increase in this population is directly due to the war on drugs and the severe punishment for persons convicted of drug trafficking. About 50% of the inmates in federal prisons and 20% of those in state prisons have been convicted of either selling or using drugs. The many minor drug traffickers and drug users who spend time in jail find fewer opportunities for legal employment after they get out of prison, and they develop better skills at criminal activities.

 

Prices of illegal drugs are pushed up whenever many drug traffickers are caught and punished harshly. The higher prices they get for drugs help compensate traffickers for the risks of being apprehended. Higher prices can discourage the demand for drugs, but they also enable some traffickers to make a lot of money if they avoid being caught, if they operate on a large enough scale, and if they can reduce competition from other traffickers. This explains why large-scale drug gangs and cartels are so profitable in the U.S., Mexico, Colombia, Brazil and other countries.

 

The paradox of the war on drugs is that the harder governments push the fight, the higher drug prices become to compensate for the greater risks. That leads to larger profits for traffickers who avoid being punished. This is why larger drug gangs often benefit from a tougher war on drugs, especially if the war mainly targets small-fry dealers and not the major drug gangs. Moreover, to the extent that a more aggressive war on drugs leads dealers to respond with higher levels of violence and corruption, an increase in enforcement can exacerbate the costs imposed on society.

 

The large profits for drug dealers who avoid being caught and punished encourage them to try to bribe and intimidate police, politicians, the military and anyone else involved in the war against drugs. If police and officials resist bribes and try to enforce antidrug laws, they are threatened with violence and often begin to fear for their lives and those of their families.

 

Mexico offers a well-documented example of some of the costs involved in drug wars. Probably more than 50,000 people have died since Mexico’s antidrug campaign started in 2006. For perspective, about 150,000 deaths would result if the same fraction of Americans were killed. This number of deaths is many magnitudes greater than American losses in the Iraq and Afghanistan wars combined, and is about three times the number of American deaths in the Vietnam War. Many of those killed were innocent civilians and the army personnel, police officers and local government officials involved in the antidrug effort.

 

There is also considerable bitterness in Mexico over the war because the great majority of the drugs go to the U.S. drug cartels in Mexico and several other Latin American countries would be far weaker if they were only selling drugs to domestic consumers (Brazilian and Mexican drug gangs also export a lot to Europe).

 

The main gain from the war on drugs claimed by advocates of continuing the war is a lower incidence of drug use and drug addiction. Basic economics does imply that, under given conditions, higher prices for a good leads to reduced demand for that good. The magnitude of the response depends on the availability of substitutes for the higher priced good. For example, many drug users might find alcohol a good substitute for drugs as drugs become more expensive.

 

The conclusion that higher prices reduce demand only “under given conditions” is especially important in considering the effects of higher drug prices due to the war on drugs. Making the selling and consumption of drugs illegal not only raises drug prices but also has other important effects. For example, while some consumers are reluctant to buy illegal goods, drugs may be an exception because drug use usually starts while people are teenagers or young adults. A rebellious streak may lead them to use and sell drugs precisely because those activities are illegal.

 

Prescription for Addiction: The U.S. spends about $15 billion a year fighting illegal drugs, often on foreign soil. But America’s deadliest drug epidemic begins and ends at home

 

More important, some drugs, such as crack or heroin, are highly addictive. Many people addicted to smoking and to drinking alcohol manage to break their addictions when they get married or find good jobs, or as a result of other life-cycle events. They also often get help from groups like Alcoholics Anonymous, or by using patches and “fake” cigarettes that gradually wean them from their addiction to nicotine.

 

It is generally harder to break an addiction to illegal goods, like drugs. Drug addicts may be leery of going to clinics or to nonprofit “drugs anonymous” groups for help. They fear they will be reported for consuming illegal substances. Since the consumption of illegal drugs must be hidden to avoid arrest and conviction, many drug consumers must alter their lives in order to avoid detection.

 

Usually overlooked in discussions of the effects of the war on drugs is that the illegality of drugs stunts the development of ways to help drug addicts, such as the drug equivalent of nicotine patches. Thus, though the war on drugs may well have induced lower drug use through higher prices, it has likely also increased the rate of addiction. The illegality of drugs makes it harder for addicts to get help in breaking their addictions. It leads them to associate more with other addicts and less with people who might help them quit.

 

Most parents who support the war on drugs are mainly concerned about their children becoming addicted to drugs rather than simply becoming occasional or modest drug users. Yet the war on drugs may increase addiction rates, and it may even increase the total number of addicts.

 

One moderate alternative to the war on drugs is to follow Portugal’s lead and decriminalize all drug use while maintaining the illegality of drug trafficking. Decriminalizing drugs implies that persons cannot be criminally punished when they are found to be in possession of small quantities of drugs that could be used for their own consumption. Decriminalization would reduce the bloated U.S. prison population since drug users could no longer be sent to jail. Decriminalization would make it easier for drug addicts to openly seek help from clinics and self-help groups, and it would make companies more likely to develop products and methods that address addiction.

 

Some evidence is available on the effects of Portugal’s decriminalization of drugs, which began in 2001. A study published in 2010 in the British Journal of Criminology found that in Portugal since decriminalization, imprisonment on drug-related charges has gone down; drug use among young persons appears to have increased only modestly, if at all; visits to clinics that help with drug addictions and diseases from drug use have increased; and opiate-related deaths have fallen.

 

Decriminalization of all drugs by the U.S. would be a major positive step away from the war on drugs. In recent years, states have begun to decriminalize marijuana, one of the least addictive and less damaging drugs. Marijuana is now decriminalized in some form in about 20 states, and it is de facto decriminalized in some others as well. If decriminalization of marijuana proves successful, the next step would be to decriminalize other drugs, perhaps starting with amphetamines. Gradually, this might lead to the full decriminalization of all drugs.

 

Though the decriminalization of drug use would have many benefits, it would not, by itself, reduce many of the costs of the war on drugs, since those involve actions against traffickers. These costs would not be greatly reduced unless selling drugs was also decriminalized. Full decriminalization on both sides of the drug market would lower drug prices, reduce the role of criminals in producing and selling drugs, improve many inner-city neighborhoods, encourage more minority students in the U.S. to finish high school, substantially lessen the drug problems of Mexico and other countries involved in supplying drugs, greatly reduce the number of state and federal prisoners and the harmful effects on drug offenders of spending years in prison, and save the financial resources of government.

 

The lower drug prices that would result from full decriminalization may well encourage greater consumption of drugs, but it would also lead to lower addiction rates and perhaps even to fewer drug addicts, since heavy drug users would find it easier to quit. Excise taxes on the sale of drugs, similar to those on cigarettes and alcohol, could be used to moderate some, if not most, of any increased drug use caused by the lower prices.

 

Taxing legal production would eliminate the advantage that violent criminals have in the current marketplace. Just as gangsters were largely driven out of the alcohol market after the end of prohibition, violent drug gangs would be driven out of a decriminalized drug market. Since the major costs of the drug war are the costs of the crime associated with drug trafficking, the costs to society would be greatly reduced even if overall drug consumption increased somewhat.

 

The decriminalization of both drug use and the drug market won’t be attained easily, as there is powerful opposition to each of them. The disastrous effects of the American war on drugs are becoming more apparent, however, not only in the U.S. but beyond its borders. Former Mexican President Felipe Calderon has suggested “market solutions” as one alternative to the problem. Perhaps the combined efforts of leaders in different countries can succeed in making a big enough push toward finally ending this long, enormously destructive policy experiment.

 

 

——

Blindness, coma, death….experts give warning

 

Source: NZ Herald

By Nicholas Jones

Jan 7, 2013

 

Health experts say Kiwis travelling to Indonesia should pay close attention to the source of any alcohol they drink, andavoid jugs of pre-made liquor.

 

Dr Leo Schep, a toxicologist at the National Poisons Centre in Dunedin, said very little pure methanol was needed to have deadly results.

 

“All you need is half a millilitre per kilogram of body weight, so if you’re 80kg, you need 40ml of pure methanol to have a potentially lethal dose.”

 

Dr Schep said physical symptoms were similar to drunkenness and could appear vague at first.

 

If untreated, the poisoning could lead to rapid breathing, blindness, a coma and seizures which could lead to brain damage.

 

About one-third of serious poisoning victims suffered irreversible visual impairment, but victims’ lives could be saved if they received medical treatment quickly. The antidote was ethanol, or alcohol, which acted as a blocking agent.

 

“If they are out drinking alcohol, they are administering the antidote at the same time.

 

But the problem is the alcohol is removed quicker from the body than the methanol.”

 

Christchurch Hospital emergency department doctor Paul Gee published a paper last year on methanol poisoning after treating a 19-year-old North American backpacker who was left partially blind.

 

Dr Gee said the woman had eight to 10 cocktails in Indonesia the night before she flew to Christchurch.

 

About 30 hours after having the drinks, she began to experience symptoms.

 

“The first thing she felt was panic, distress. Then her vision was getting darker and darker, like she was in a twilight room … Within a few hours we’d organised dialysis to try to get rid of the methanol … but even then, she lost pretty much most of her vision.”

 

Dr Gee said bars in tourist areas of Indonesia put out free drinks in an effort to attract patrons.

 

Those drinks often contained home-brewed spirits, which were poorly made and dangerous.

 

 

——

State of the Wine Industry 2013

 

Source: SVB

Jan 4th

 

Join us for a lively and insightful round table discussion as Rob McMillan, founder of Silicon Valley Bank’s Wine Division, reveals findings from Silicon Valley Bank’s 2013 Wine Industry report. Rob will be joined by industry luminaries Paul Mabray, Chief Strategy Officer of VinTank, Tony Correia, Founder Correia-Xavier Inc., and Mary Jo Dale, Chief Consumer Direct Officer of KLH Consulting, in this first of its kind live video conference, including live viewer Q & A.

 

Webinar Details:

Tuesday, January 15, 2013

9:30 – 10:30 a.m. Pacific Time

 

This annual industry report is based on SVB’s in-depth survey of wine industry experts and insiders, third-party research and Rob’s unique perspective as a long-time member of the wine industry.

 

This presentation will include insight on:

.         Winery inventory positions and consumer demand

.         Impact of domestic and international economic conditions

.         Harvest yields and their impact

.         Winery financial performance

.         Bottle pricing decisions

.         Bulk import activity

.         M&A and vineyard acquisitions

.         The 5th Column (Web 2.0, CRM, DtC Sales, Social Media, 3rd-Party Marketers, Compliance)

 

The complete Silicon Valley Wine Report 2013 Wine Industry Report will be available for viewing on SVB.com after the webinar.

 

https://www.cvent.com/events/state-of-the-wine-industry-report-2013/registration-112e0466e4b44e33b7ce2e84251f9b16.aspx

 

Join Us On Twitter:

Follow Rob (@SVBWine) and Paul (@pmabray) on Twitter and join the conversation before, during, and after the webinar by using #SVBWine.

 

 

——

Local vodka maker tangled in trademark tussle

 

Source: Norwich Bulletin

By JAMES MOSHER

Jan 04, 2013

 

An upstart local vodka maker is in a trademark dispute with an industry titan over the use of brackets on its labels.

 

Carl Brown, CEO and co-founder of Oakdale-based KC Brang’s Food & Beverage LLC, has not declared total victory but said recently his company won a round when Casella Wines dropped opposition to one aspect of the case. Casella, maker of [yellow tail] wines, ceased opposing KC Brang’s trademark request for the [Kra-ze] brand in the category of ultra-premium vodka. KC Brang already has a registered trademark for its liqueurs, according to Brown.

 

KC Brang, maker of [Kra-ze], a liqueur-based vodka, and Casella discussed a settlement that would have removed brackets from around [Kra-ze] name, but no agreement was reached, Brown said. Casella, which is based in Australia, dropped opposition after those talks ceased, he said.

 

“Another David beating Goliath, now that’s crazy,” Brown said in a press release, playing on his product’s name.

 

Casella ships 8 million cases to the United States annually, making it the most popular imported wine in the U.S., according to a 2011 story in the Sydney Morning Herald. Sales in 2010-11 were AU$426.7 million while profit was AU$12.25 million (dollar amounts are in Australian dollars).

 

Casella is still seeking to be the only company in the wine and spirits category to be able to use brackets around product names, Brown said.

 

Casella didn’t respond to an email request for comment. Its U.S. distributor, W.J. Deutsch & Sons Ltd., based in White Plains, N.Y., didn’t respond to phone and email requests for comment.

 

“Goliath” has actually done considerable damage to Brown’s “David,” helping thwart growth of KC Brang, the Oakdale businessman said.

 

“The legal matter has cost our company an abundant amount of money,” Brown wrote in an email. “(It) is evident that we have next to no additional funding to fall back upon other than the profit we obtain through sales. We are local men that come from local families, meaning we do not come from money.”

 

KC Brang has $180,000 in annual revenue, according to the Dun & Bradstreet Credibility Corp. website. Brown and Kevin Clang founded the company in 2009. It has three employees and its headquarters is listed as 15 Noble Hill Road.

 

Brown and Clang are both Montville High School graduates. Brown graduated in 1986, and Clang graduated in 1990. Brown was a civil engineer at the state Department of Transportation before starting the beverage company.

 

Big Gary’s Montville Wine & Spirits in the Montville Commons plaza was among the earliest Eastern Connecticut merchants to carry [Kra-ze] products.

 

Big Gary’s owner Gary Trombley Jr. couldn’t be reached for comment Friday.

 

“Sales in the state have been fairly decent considering the lack of consumer knowledge about who and what we are,” Brown wrote.

 

 

——

Casella Wines counts cost of flood

 

Source: Weekly Times

Sandra Godwin

January 2, 2013

 

FLOODING in March cost Riverina winemaker Casella Wines more than $2.6 million and contributed to its first loss in 18 years.

 

In financial reports lodged with ASIC last month, Casella Wines advised a loss of $29.89 million after tax for 2011-12.

 

Casella Wines managing director John Casella said it was ”an accounting loss, not a total loss”, the company’s balance sheet remained solid and there would be no cutbacks.

 

Staff managed to keep the Yenda winery site dry during the March floods by building a huge earthen bund wall, but it was closed for a week.

 

”The biggest cost was contract processing,” Mr Casella said.

 

”We were processing at 22 different sites in order to keep the volume going and not hold up growers who were mid-harvest.”

 

The company also lost a significant quantity of dry goods and packaged wine stored at the former McWilliams Yenda site which was inundated.

 

As well as the cost of flood recovery, the loss was exacerbated by loan writedowns ”to related and outside parties” of $29.79 million.

 

The overall result is being blamed on the Australian dollar which has squeezed margins on the exports that make up 95 per cent of Casella sales.

 

”History will show this dollar will leave a trail of business wrecks,” Mr Casella told Griffith newspaper, The Area News.

 

”I don’t believe the currency can stay where it is. But we will have to make hard decisions if the currency doesn’t balance out.”

 

Mr Casella has already spoken of plans for a new premium range of wines next year to satisfy a growing demand for luxury wines.

 

But price rises for other products from Australia’s largest family-owned winery might also be on the cards.

 

Mr Casella told The Weekly Times it was ”business as usual” for staff and the company’s 400 grape grower suppliers, and the company again expected to crush about 170,000 tonnes of grapes in the coming vintage.

 

Casella Wine labels include the [yellow tail], Yendah, and Mallee Point ranges, as well as the boutique beer, Arvo, which was launched in June.

 

 

——

Clever wine packaging for people on the go

 

Source: Fox News

By Meghan McGovern

January 06, 2013

 

Good wine can be found in just about anything these days –not just a bottle.

 

Why be hassled with a bottle, corkscrew or stemware.  These clever and unique packaging concepts are perfect for picnics, hikes–and sharing.

 

Sofia Mini – Small enough to take anywhere, this clever little package even comes with its own straw. Sofia Blanc de Blanc has delicate bubbles and is light and crisp with flavors of melon and honeysuckle. A 4-pack of this canned sparkler by Francis Coppola Winery, retails for $20 and can be found on the Winery Store website.

 

STACKED Wines – Perhaps one of the most unique ways to package wine, this product is divided into four separately sealed individual glasses made of durable plastic, with the volume of your typical 750 ml bottle of wine. No longer do you have to worry about wasting any leftover wine from a bottle you couldn’t finish. Perfect for bringing in a cooler skiing or sharing with friends. Each sleeve of wine retails for only $15, so try all varietals- Merlot, Cabernet, Pinot Grigio, and Chardonnay. Available at www.stackedwines.com

 

Bandit – This may look similar to your child’s juice box they bring to school, but this grape is strictly for adults. Each tetra-pack is made largely from renewable resources, comes in a variety of grape varietals, and is perfect to bring along when glassware just isn’t appropriate. The smaller 500ml retail for $4.99 while the large one-liter boxes go for $8.99. Available at many local wine shops across the country.

 

Target Wine Cube – Yes, Target (as in the store) sells these clever cubes of wine. The cube is deceiving small, and can fit nicely in your fridge or shelf, but beware: it holds a whopping equivalent of four bottles. The advantage of boxed wine is preservation. Your wine will not spoil as quickly since air doesn’t not damage the wine. Wine Cubes are exclusively available at more than 980 Target and Super Target stores across the country that sell wine.

 

Volere Wine Purse – A perfect gift for Mother’s Day, bachelorette parties, or your fashionista-wino friend. The purse holds the volume of three bottles of wine and is available in Pinot Grigio, Cabernet/Pinot Noir blend, and Rose. They retail for about $14.99 and can be shipped throughout the US. www.StewsWines.com.

 

Sutter Home Minis – Great to throw into your purse when you need some “me time” on the go, each portable bottle comes in a recyclable plastic bottle with a screw cap.  It retails for $4.99/4-pack.

 

Unique Corkscrews – Got a good, old fashion bottle of wine and need something to open it with?  Hightower’s Custom Chains and Ironwork (a one man band) creates corkscrews out of old railroad spikes? Hat tip to wine expert Mark Oldman who told us that he bought some as gifts. See how they are made and how to get your own, here.

 

http://www.foxnews.com/leisure/2013/01/06/wine-gifts-for-any-occasion/

 

——

Jackson family buys into new AVA

 

Source: the drinks business

by Gabriel Savage

3rd January, 2013

 

Jackson Family Vineyards has completed the latest in a series of major acquisitions with the purchase of an 877-acre property in California’s recently created Pine Mountain-Cloverdale Peak AVA.

 

Previously owned by the Seghesio family, no vineyards are currently planted on the estate but it is thought that more than 280 acres on the hilly property offer a gradient suitable for viticulture.

 

Bordering Alexander Valley in northern Sonoma, the Pine Mountain-Clover Peak AVA in Mendocino County was created at the end of 2011 and claims to be one of California’s highest elevation grape growing regions. Red Bordeaux varieties dominate, with just 230 acres of the 4,750-acre AVA currently under vine.

 

Among the AVA’s existing vineyard owners are Silverwood Ranch, Pine Mountain Vineyards and Tin Cross Vineyards, which supply grapes for names including Frances Ford Coppola Winery and Captûre Wines.

 

The Jackson family, which owns over 14,000 acres across more than 35 wineries in California alone, including its Kendall-Jackson flagship, is understood to have completed the deal at the end of December, although no financial details have been released.

 

This latest purchase follows the family’s 2012 acquisitions of Sonoma properties Richard’s Grove, Saralee’s Vineyard and Ramal West Vineyard, as well as the historic Clarendon Vineyard in McLaren Vale, Australia. The latter demonstrated the family’s interest in adding to its international estate portfolio, which already reaches from Tuscany to Chile and St Emilion.

 

 

——

St Emilion’s class struggle

 

Source: the drinks business

4th January, 2013

 

The recent St Émilion reclassification leads Mark Savage MW to question whether terroir is still valued as an indicator of quality.

 

The revision was bound to raise the odd eyebrow, even among people who are dubious about classifications in general, while recognising an element in the human psyche that enjoys belonging to a club or being part of an establishment hierarchy, writes Mark Savage MW.

 

St EmilionThose who prefer to be non-conformist in this respect are probably a minority. Certainly when it comes to being in the Syndicat des Grands Crus Classés de St Émilion, there seems to be a strong desire among most château proprietors for the status conferred by membership. Whether the actual consumer knows or cares about this sort of thing is rather more debatable.

 

Revisions of classifications may cause some of us to stop and ask ourselves what purpose they are intended to serve and what criteria are important for inclusion. As with the appellation system in general, it needs to be considered whether it best serves the interest of the producer or the consumer.

 

Some may still harbour the notion that the important factor is the actual “terroir” of the vineyard concerned and its supposed superiority, as evidenced by a successful track record over an extended period of time. The logic and advantage of this concept is surely that its roots lie in something permanent, that there is in fact a natural rather than a man-made reason behind it.

 

It’s fairly well-established that the famous 1855 classification of the Médoc was based on money rather than on specific soils and it seems perfectly acceptable for a first growth to acquire a parcel of vines whose fruit had previously had no loftier destination than the local co-op. By contrast, in the Côte d’Or individual sites are considered to be of primordial significance and each cru produced by a domaine will have a price that corresponds to a status firmly entrenched in the belief that the very specific “terroir” really makes a difference.

 

Where does the Syndicat de St Émilion stand on this issue today? Is the view that the actual location of the vineyard as the prime criterion is now beginning to look naïve, if not rather quaint? The driving forces behind the latest revision seem to have more to do with money and politics than intrinsic terroir superiority.

 

Here is a cru whose terroir is modest rather than exceptional, finding itself elevated to the elite category of the four wines at the top of the premiership. In the lower half of that top division is a name for which the word cru seems inappropriate given that its vineyard location is somewhat elusive or even movable.

 

On the other hand, it is still possible to find a St Émilion proprietor whose wine commands a higher price than the majority of the top ten châteaux and yet resolutely declines to accept an invitation for promotion, preferring it would seem to rely on the judgement of his loyal clients rather than on the views of the Syndicat.

 

To some observers, classifications are of little interest and do not affect buying decisions in the least, but the question of their validity remains. Should wine be ranked as if it were a restaurant or football team – on the whim of a Michelin inspector or the fortunes of an oligarch – or is there merit in the idea that land itself, regardless of its ephemeral owners, is entitled to some recognition of its own?

 

If ranking is based upon human interference – the influence of external consulting oenologists and the techniques employed in the cellar – then it seems logical that vineyards should be subjected to annual inspection.

 

But do we want to treat vineyards like restaurants and base the ratings on those of inspectors? Surely not – for a restaurant can be simply relocated, while a vineyard site is permanent. If classification becomes a reflection of human interference, then the terroir game must be over.

 

That will be a matter of regret for those who value the potential for originality offered by a great wine. Let’s return to the cui bono question. The recent revision of St Émilion will no doubt do wonders for the egos of proprietors who find themselves promoted. However, along with the question of pride, there is also the question of price.

 

The promotion saw an instant upward revaluation of the wines in the marketplace. How many of the producers will pause to wonder how many of their previously loyal consumers will now admit defeat and feel priced out of the market – turning their attentions elsewhere? Clearly the speculative investor will be more interested by any reclassification than the consumer for whom drinking pleasure matters more than the asset value of the bottle.

 

The philosopher Montaigne, born near St Émilion, would have surely appreciated the irony of this situation, where a good wine becomes so expensive and so important that it succeeds brilliantly in alienating itself from a substantial section of its market. He would have mused from his viewpoint a few miles further east along the same calcareous côte that one should simply respect the classification, as long as the arbitrators leave winemakers in peace and respect their freedom of spirit.

 

And Montaigne would have added: “Si vous êtes roi, exigez que l’on s’incline devant vous.cependant n’y croyez pas!” In other words – those at the top of the tree should acknowledge the worship of their devotees without ever allowing it to go to their heads.

 

For a defence and explanation of the St Emilion reclassification from Alain Moueix, click here. http://www.thedrinksbusiness.com/2012/11/moueix-defends-st-emilion-reclassification/

 

This article originally appeared in the drinks business December 2012 edition.

 

 

——

Wickham Vineyard ‘goes into administration’

 

Source: Decanter

by Richard Woodard

Friday 4 January 2013

 

Award-winning English winery Wickham Vineyard has gone into administration, according to local press reports.

 

Wickham, which was established in Hampshire in 1984, filed for bankruptcy just before Christmas, with the loss of more than 20 jobs, although it is understood that allied businesses The Vineyard restaurant and WineShare are continuing to trade.

 

Reports in the Southern Daily Echo suggested that Wickham had gone out of business thanks to problems with sister business Wine Shak, a retail chain rescued from the Threshers collapse, but which went into voluntary liquidation in November.

 

However, there were also thought to be problems with trading over the past year, plus a lack of fresh investment.

 

From an initial vineyard of six acres, Wickham increased its plantings to 18 acres of vines on a 40-acre estate, including 10 different grape varieties including Pinot Noir, Rondo, Dornfelder, Bacchus, Reichensteiner and Kerner.

 

Three of its wines were served at a lunch attended by HM The Queen and the Duke of Edinburgh to mark the Queen’s Diamond Jubilee in Walthamstow, London, last year.

 

Three other Wickham wines – its Special Reserve Red 2006, Special Reserve Fume NV and Vintage Selection Dry NV – won medals or commendations in the Decanter World Wine Awards 2009.

 

Some of Wickham’s wines were listed by Berry Bros & Rudd, which described the producer as a ‘standard bearer’ for English wine.

 

The future of the Wickham winery facilities and vineyard is as yet unclear.

 

Neither Wickham nor insolvency practitioner Benedict Mackenzie – the business’ administrator – commented on the reports.

 

 

——-

Vinance collapsed ‘owing wine worth £5m’

 

Source: Decanter

by Jim Budd

Friday 4 January 2013

 

Collapsed wine investment company Vinance plc owed £5m-worth of wine to its 1,300 clients when it went into administration, according to administrators.

 

Vinance plc was placed in administration last November

 

However, the business has an estimated deficiency of £2.37m, thanks to a ‘large’ amount of wine owned by Vinance with an estimated value of £3m.

 

The report from Herron Fisher, the administrators of the company, shows that Vinance’s records were ‘incomplete’ and ‘inadequate’ and that the directors had no idea of the true position.

 

‘It was apparent that the company’s records were inadequate and that the position of each individual client was not recorded properly,’ the report states.

 

‘The directors could not easily work out which clients were short of wine they had ordered and paid for, or what the extent of the shortfall was. The clients themselves were unaware that there was any problem.’

 

The report can only estimate what is owed to investors:  ‘We cannot provide a full list of creditors as we do not know, at this stage, which of the 1,300 clients are creditors,’ it says.

 

Until the true position is known, no indication of the dividend due to creditors can be given.

 

Vinance used investors’ money to finance the running of the company, the report adds: ‘It transpires that sometimes the company took money from clients but did not buy the wine immediately and the money was used for general overheads.’

 

Vinance was placed in administration on 16 November, and in late November Albany Vintners Ltd/Arc Reserves Ltd paid £30,000 plus VAT for Vinance’s client database.

 

At the end of the 12-month administration period Vinance plc will be put into voluntary liquidation.

 

A creditors’ meeting will be held in London on 7 January.

 

 

——

Patron appoints DISCUS chairman as president

 

Source: The Spirits Business

by Becky Paskin

4th January, 2013

 

Patron Spirits has appointed Distilled Spirits Council of the United States (DISCUS) chairman John McDonnell to President, International to focus on its global growth.

 

McDonnell, who is also chief operating officer at Patron Spirits, is now based in the group’s Switzerland headquarters and is responsible for its day-to-day US and global operations and growth in the newly-created position.

 

“In only a few short years, Patrón has quickly expanded into more than 130 countries worldwide,” he said.

 

“As our brands and our company continues to gain momentum in international markets, it’s important that we devote all available resources into growing our global business and international market share.

 

“I’m honored to take on this new role and this new position, based strategically here in Europe, to work with our team to focus on our longterm global growth and success.”

 

McDonnell has worked with Patron Spirits since 2005.

 

 

——

Cerberus Close to Supervalu Deal

 

Source: WSJ

By SHARON TERLEP

Jan 4th

 

Cerberus Capital Management LP and Supervalu Inc. SVU +13.51% are close to a deal in which the private-equity firm would buy some parts of the grocer and take a stake in the rest of the company, a person with knowledge of the plan said.

 

Supervalu is set to disclose its quarterly financial results on Thursday and could unveil a deal with Cerberus by then, the person said.

 

Eden Prairie, Minn.-based Supervalu, parent company to chains such as Shaw’s in New England, Jewel-Osco in Chicago and Shop ‘n Save in St. Louis, put itself up for sale this past summer amid growing losses and discounts to customers that had yet to drive up sales. The grocer has struggled to improve its business while shouldering a large debt load.

 

Supervalu’s stock rose 13.5% to $2.94 in 4 p.m. composite trading Friday on the New York Stock Exchange, after The Wall Street Journal reported a deal with Cerberus was close. The company’s stock is down more than 60% over the past 12 months.

 

In the deal currently envisioned, Cerberus would have a stake in the part of Supervalu it wouldn’t buy, which would remain public, the person said. The private-equity firm, which is working on the deal with several real-estate firms, would lead an investment of around $500 million in equity, said the person. That is several hundred million dollars less than earlier discussed, but the investors also wouldn’t be taking full ownership of the whole company, previously a possibility.

 

The deal structure is designed in part to bridge a gap between how much cash Cerberus is willing to invest and the amount of cash banks have wanted buyers to commit.

 

Cerberus months ago began seeking financing from banks and planned to invest equity of about $800 million in a deal for the whole company. Banks, which consider the unprofitable chain to be a high-risk investment, at one point pressed Cerberus and its partners to put up closer to $1.3 billion, people familiar with the matter said.

 

Much of Supervalu’s appeal to Cerberus and its partners lies in its Albertsons chain. In 2006, a Cerberus-led group acquired more than 650 underperforming Albertsons stores as part of a larger deal to dismantle that grocer, Albertsons Inc. In the broader deal, Supervalu acquired more than 1,100 Albertsons grocery stores. Cerberus would like to reunite the Albertsons chain, according to people familiar with the matter.

 

Supervalu, with a market capitalization of $628 million as of Friday, carries more than $6 billion in debt and lease obligations. The company lost $70 million in the first nine months of 2012, compared with a $134 million profit in the same period of 2011.

 

 

——

Walgreen December Same-Store Sales Decline 6.1%

 

Source: WSJ

By BEN FOX RUBIN

Jan 4th

 

Walgreen Co.’s (WAG) December same-store sales fell a bigger-than-expected 6.1% as the drugstore chain continued to struggle with lighter customer traffic and new generic drugs.

 

Analysts surveyed by Thomson Reuters were expecting sales to decline 5.2% at locations open for more than a year.

 

For the month, total sales fell 4% to $6.71 billion from a year ago. Front-end sales fell 1.3%, while same-store front-end sales fell 2.3%, compared with expectations of 0.4% growth. Customer traffic in comparable stores dropped 4% though basket size rose 1.7%.

 

Pharmacy sales dropped 4.9% and same-store pharmacy sales fell 8.9%, compared with an expected 9% decline. The decline was due in part to calendar day shifts negatively impacting sales and new generic drug introductions, the company said.

 

Flu shots administered at pharmacies and clinics season-to-date were nearly 5.5 million versus approximately 5.3 million last year.

 

The company opened seven stores during December, acquired one and closed four.

 

Walgreen has reported weaker monthly same-store sales throughout 2012, as it lost customers due to a contract dispute with pharmacy-benefits manager Express Scripts Holding Co. (ESRX). The issue was eventually resolved, and the company is now expected to see improved results as some Express Scripts customers return to Walgreen.

 

Last month, Walgreen said its fiscal first-quarter earnings fell 25% due to lower same-store sales and a change in the way the drugstore chain recorded its investment in European pharmacy operator Alliance Boots, which masked margin improvement.

 

Shares closed Thursday at $37.79 and were down 0.8% premarket. As of the close, the stock was up 28% over the past six months.

 

 

——

Holidays not so happy at Family Dollar

 

Source: RT

January 3, 2013

 

Despite solid sales trends at Family Dollar during the company’s first quarter ended November 24, margins contracted and profits were less than expected.

 

The company reported earnings per share of 69 cents that were at the low end of the company’s guidance range of 69 cents to 78 cents and well below analysts’ consensus forecast of 75 cents. The culprits were sales driving initiatives that involved food and consumables that put pressure on gross margins. The company’s second quarter is also off to a shaky start due to a weaker than expected 2.5% same store sales increase in December.

 

Sales for the quarter increased 12.7% to $2.4 billion due to a combination of a 6.6% same store sales increase, the addition of 125 news stores and the renovation, relocation and expansion of 169 others. The top line improvement didn’t translate entirely to bottom line success though as net income for the quarter was $80.3 million compared with net income of $80.4 million for the first quarter of fiscal 2012. Gross margins also contracted to 34.1% of sales from 35.3% of sales the prior year. Stronger sales of lower margin consumables, higher markdowns and increased inventory shrinkage were partially offset by higher markups and lower freight expense, according to the company.

 

“Early results from our sales-driving initiatives exceeded our expectations in the first quarter, resulting in more gross margin pressure than anticipated. This mix pressure, combined with expected headwinds from insurance expense, resulted in earnings that were at the low end of our guidance,” said Family Dollar chairman and CEO Howard Levine.

 

He added that investments made to increase Family Dollar’s relevance to customers are delivering results and increasing traffic and market share. The company’s sales were strongest in the consumables category, which increased 18.5% during the quarter, driven primarily by strong growth in tobacco, food and health and beauty care. The 6.6% comp increase was driven by a mix of increase traffic and larger average transaction sizes.

 

“While the near-term economic environment remains difficult to predict, I continue to be excited about the long-term opportunity for our business,” Levine said. “We are seeing tangible benefits from our margin-enhancing investments in global sourcing and private brands, and as we work to drive further benefit from the investments we are making to expand profitability, I remain confident that our efforts will deliver stronger results as we progress through fiscal 2013 and beyond.”

 

Although the company’s second quarter is off to a slow start given the 2.5% December comp increase, Family Dollar said it expects comps for the second quarter to increase between 4% and 5%.

 

“Despite the ongoing economic uncertainty, we expect that the investments we have made in traffic-driving categories will continue to build sales momentum through January and February, as customers focus even more on basic needs,” Levine said.

 

 

——

Economist’s Notebook: Restaurant hiring finished strong in 2012

 

Source: NRA

by Elissa Elan

January 4, 2013

 

In his latest commentary, Bruce Grindy, the National Restaurant Association’s chief economist, breaks down the latest jobs report.

 

Eating and drinking places added a net 38,000 jobs in December, their second-strongest monthly gain of 2012.

 

Restaurants continued to add jobs at a robust pace in December, according to preliminary figures from the Bureau of Labor Statistics.

 

Eating and drinking places – the primary component of the restaurant industry, which accounts for roughly three-fourths of the total restaurant and foodservice workforce – added a net 38,000 jobs in December on a seasonally-adjusted basis.

 

 

——

(DIN): Treating DineEquity as “DineBond” suggests no upside potential

 

Source: Goldman Sachs

Jan 4th

 

What’s changed

Marcato Capital Management filed a 13-D indicating a 5.5% active stake in DIN shares. It presented its views on capital allocation to the company; to which DIN management formally responded. We have reevaluated our own views on the topic, and now expect DIN to transition from debt pay-down to a 50/50 mix of dividends/buybacks as a base case. We raise our 12-month price target as a result, but this is still below the current share price. Remain Neutral.

 

Implications

We come away from our updated analysis thinking that DIN should be treated more like a bond-like investment than as a traditional equity. We expect no EBITDA growth in out-years (as a result of flat SSS, nominal new unit growth, and a lack of G&A leverage). However, the company’s EBITDA stream is stable and predictable given DIN is now 99% franchised. As such, along this line of reasoning, we believe DIN should trade like a bond, but at a discount to its debt yield given the equity is further down the capital structure. DIN’s primary franchised compares trade at a 1-2% discount to their debt yields, and as such we assume a 2% discount for DIN (at the higher end given soft fundamentals). Assuming DIN can refinance at 7%, as per current market conditions, this would suggest a 9% FCF yield, and equates to a value of $66, which is below the current $70 share price.

 

Valuation

We update our 2012-2014 EPS estimates to $4.27/$4.19/$4.92 on DIN’s likely new capital structure. Our EBITDA estimates come down to reflect less G&A leverage, but 2014E comes up to reflect the likelihood of a refinancing of its debt. We raise our P/E and DCF-based 12-month price target to $66 from $58 to reflect our new base case view that DIN will likely switch to dividends/share repurchases from debt pay-down in the coming years (a 14-15x P/E from 13x).

 

Key risks

Upside/downside risks are (1) A change in SSS trends, (2) better/worse G&A leverage, and (3) Different capital allocation plans than anticipated.

 

 

——

Singapore: Key personnel leave APB after Heineken takeover

 

Source: Channel News Asia

By Conrad Raj

04 January 2013

 

A spate of resignations among top personnel has hit Asia Pacific Breweries (APB) following its complete takeover by Heineken of the Netherlands, the world’s third-largest beer maker.

 

APB, which makes Tiger Beer, was the subject of a fierce takeover battle last year between Heineken and Thai Beverage, with the Dutch brewer eventually emerging victorious. Heineken forked out S$5.6 billion to buy the rest of APB from its joint venture partner Fraser and Neave to secure an asset which will help it exploit the fast growth in Asia’s beer market.

 

Among those who have left or have given notice is Mr Christopher Kidd, APB’s Regional Director for Indo-China, its most profitable division. He joined APB in 1994. Others include Mr Leslie Buckley, Regional Director for South-east Asia/Oceania excluding Singapore, who joined the company in 1995, and Group Finance Director Loy Juat Boey, who has been with APB since 1987. Also gone is public relations head Sarah Koh.

 

The first three were among the best-paid senior managers at APB, according to the company’s annual report, along with Chief Executive Roland Pirmez, Mr Vivek Chhabra, Regional Director (South Asia)/Director (Group Business Development), and Mr Bennett Neo, Regional Director for the Singapore cluster and Cambodia. Mr Neo will soon take over Mr Chhabra’s South Asia portfolio of Sri Lanka.

 

Mr Kidd and Mr Buckley earned between S$1.25 million and S$1.5 million in the company’s last financial year, according to the annual report, while Ms Loy was in the S$1-million to S$1.25-million range.

 

While no official reason has been given for their departure, the talk among insiders is that there has been some unhappiness with the new management style since the takeover, with changes to reporting lines and final decisions being taken at Heineken’s Netherlands headquarters.

 

“We appear to have lost our independence and creativity as reporting is now done on a functional basis to superiors in the Netherlands,” remarked an ex-insider.

 

Mr Kidd, 55, is said by people familiar with the situation to have been miffed when Mr Pirmez took over his portfolio as Regional Director for Indo-China.

 

Heineken said in reply to queries from TODAY: “We would like to stress the fact that the business is strong and that the members of APB’s leadership team, who we know well, are doing a good job.” Heineken also said that those who left “are not the top four executives” but that they are members of a leadership team comprising 15 people.

 

“Ms Sarah Koh and Mr Chris Kidd have decided to leave the company and pursue their careers outside the company. We respect their decisions and highly value their long-standing contribution to build and grow the business. Yet it is not on us to comment on personal choices,” Heineken told TODAY.

 

The company also said that Ms Loy has taken early retirement and her portfolio has been taken over by Mr Kenneth Choo, who is also Director, Regional Finance and Business Development, of Heineken Asia Pacific.

 

While a search for a new corporate relations director is on, Mr Michael Dickstein from Heineken HQ will do the job in the interim.

 

Asked if more management changes were on the way, Heineken said: “Management changes are part of the ongoing business in any operation and we usually treat such changes in a very sensitive way.”

 

Meanwhile, the integration process which Heineken initiated upon taking over is expected to be completed by the end of next month. This includes Heineken giving up its office at Novena Square to move to either Alexandra Point, where APB’s HQ is located, or to its brewery at Tuas.

 

 

——

Philippines: Risking life and limb to make Philippine ‘vodka’

 

Source: Business World Online

Jan 6th

 

With their huge copper vats and open fires, little-known backyard liquor makers have toiled for generations on Philippine coconut farms to distill their equivalent of Russian vodka.

 

Once considered a lowly peasant’s drink whose potency is said to put other liquors and spirits worldwide in the shade, lambanog is the Philippine version of the coconut arrack that is also made in Sri Lanka and Indonesia.

 

“Many have compared it to Russian vodka or English gin but what sets our lambanog apart is that you don’t get a hangover,” said 65-year-old distiller Isabelita Capistrano.

 

The family-owned Capistrano Distillery in Tayabas is one of two leading makers of lambanog, which it sells to the country’s biggest supermarket chain.

 

“It is a very hard drink. Japanese and South Korean [tourists] especially like it. Americans find it too strong, but smooth,” said the former high school teacher.

 

But if drinking it is a challenge, making it is a high-risk pursuit that can lead to the death of those charged with climbing coconut trees to collect the frothy sap that is fermented to produce the drink.

 

“People have fallen and died or had broken bones,” said Eugenio Andaya, who has been climbing the trees since he was a teenager.

 

Workers climb the trees without protective harnesses to prune the coconut flowers before they turn into fruits. The sap is allowed to drip into bamboo receptacles.

 

Like high-wire performers, the tappers navigate a network of bamboo bridges connecting the trees nine meters above the ground, with blades on their waists and bags tightly strapped to their shoulders.

 

Pruning is mostly done in the afternoon, and the climbers return at dawn to collect the liquid.

 

Farmhands then deliver the sap to the distillery in big plastic containers, where it is fermented into a local wine called tuba, which if distilled further, yields the colorless lambanog, with methanol as a byproduct.

 

Ms. Capistrano said the process of distilling the equivalent of coconut vodka was first recorded in Tayabas in the early 19th century.

 

Founded by Spain in the 1580s as part of its move to Christianize its Asian colony, Tayabas lies in the shadow of Mount Banahaw, a spiritual place where shamans live and where rainwater rushing down the slopes keeps the land fertile.

 

According to local lore, the first known Tayabas distillery was owned by a Spanish soldier named Alandy who settled in the area.

 

Alandy’s line is now produced by the rival Mallari Distillery, whose owners trace their ancestry to the soldier and who still maintain the original recipe of a drink with a 90 proof grade, which means it contains 45% alcohol.

 

Lambanog remains a cheap, popular drink across the Philippines. But official data on how much income it generates domestically remains sketchy, with the beverage sold locally through neighborhood shops that do not remit any taxes or reports.

 

In 2001 the government approached the Mallari and Capistrano houses and 14 other smaller lambanog distillers with a plan to develop the product for export. It provided packaging expertise, introduced modern bottling operations and sponsored tasting tours.

 

 

A wine class you can take from the comfort of your own personal device, from Catherine Fallis, MS

January 6, 2013

http://www.wine-blog.org/index.php/2013/01/04/a-wine-class-that-you-can-take-from-the-comfort-of-your-own-personal-device-with-catherine-fallis-ms/

Beer Specials

January 4, 2013
Our Beer Specials

Our Beer Specials

1-4 Till 1-11
30PKS
Coor Light12oz cans $20.99
Coors 12oz cans $20.99
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Amstel light 12oz bottles $23.99
Amstel light 12oz cans $23.99
Heineken 12oz Bottle $23.99
Heineken 12oz Cans $23.99
Heineken Light 12oz bottles $23.99
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Bud 12 oz cans $13.99
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Liquor Industry News

January 3, 2013

cropped-428972_4039832247273_131052073_n.jpg

Canada: Ontario pilot project will allow booze sales in supermarkets

 

Source: CNews

By Antonella Artuso

Dec 31st

 

Ontario will launch 10 pilot “LCBO Express” outlets within grocery stores, to make buying wine, beer and other liquor more convenient.

 

The mini LCBOs will be opened over the next 12 to 18 months in yet-to-be-decided locations, but the venture could quickly be expanded to many more grocery stores if successful, Finance Minister Dwight Duncan said Monday.

 

“This is a new way to distribute our product, make it more consumer accessible and at the same time make sure we don’t have alcohol on every street corner in Ontario,” Duncan said.

 

“What we find is most Ontarians like the LCBO and the way it operates. They want more convenience.”

 

 

——

‘Fiscal Cliff’ Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers

 

Source: ABC News

Jan 1st

 

The “fiscal cliff” compromise has been heralded as a saving grace for middle class taxpayers, their families and the unemployed.

 

But buried in the fine print of the 150-page deal are also some lesser-known New Year’s gifts to some of Washington’s favorite industries.

 

Under the plan, the federal government would eat nearly $100 billion in forgone tax revenue over the next two years by extending special tax credits for select businesses that had been set to expire.

 

While the provisions themselves are not new, and are often extended as part of major bills, their inclusion amidst a tumultuous year-end debate over deficits and debt  did raise a few eyebrows.

 

The nonpartisan Committee for a Responsible Federal Budget listed the so-called “tax extenders” as a “bad” part of the fiscal cliff deal because their cost is not offset, “setting a bad precedent for future extensions.”

 

The mix of tax perks covering the next year, but with budget implications for the next two years includes everything from incentives for employers to hire veterans to incentives for employers to invest in mine safety. But it also includes these:

 

    $430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States.  Producers can expense up to $15 million of costs for their projects.

 

    $331 million for railroads by allowing short-line and regional operators to claim a tax credit up to 50 percent of the cost to maintain tracks that they own or lease.

 

    $222 million for Puerto Rico and the Virgin Islands through returned excise taxes collected by the federal government on rum produced in the islands and imported to the mainland.

 

    $70 million for NASCAR by extending a “7-year cost recovery period for certain motorsports racing track facilities.”

 

    $59 million for algae growers through tax credits to encourage production of “cellulosic biofuel” at up to $1.01 per gallon.

 

    $4 million for electric motorcycle makers by expanding an existing green-energy tax credit for buyers of plug-in vehicles to include electric motorbikes.

 

*Note the price tags above reflect estimated forgone tax revenue if current credits – which have been due to expire – are extended for one year as included in the Senate bill, per Joint Committee on Taxation.

 

 

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Brown-Forman(BFb.N): Downgrade to UW Ahead of Slowing Topline Results

 

Source: Morgan Stanley

Jan 2nd

 

Despite strong fundamentals, we expect BFB’s premium multiple to de-rate as organic topline growth slows due to less innovation contribution and tougher comparisons, driving our Underweight. Our $61 price target implies 4% stock downside.

 

Topline Growth Likely to Slow to Below Consensus Results: We believe the bourbon innovation cycle has legs, but comparisons become more difficult for BFB going forward and the favorable topline impact from recent innovation in the US should decelerate. Given these factors, we forecast BFB’s organic revenue growth will slow to a 6.5% average over the next four quarters vs. 8.5% over the last six quarters. This slowdown should weigh on BFB’s rich multiple, particularly given we believe consensus revenue forecasts are 1-2% too high over the next few quarters (we are still above consensus on EPS given higher industry pricing should drive margin upside).

 

We Expect BFB’s Multiple to De-rate: Despite strong underlying fundamentals, at 14x C2013e EBITDA, BFB’s valuation is too high in our view following a run-up in the stock with ~1200 bps of 2012 outperformance vs. the S&P 500, including BFB’s one-time dividend. This is particularly true coming off an analyst meeting where the family-controlled company strongly reiterated its desire to remain independent. While some enthusiasm around the recent acceleration in BFB’s organic revenue growth is valid, the stock looks overpriced vs. its closest peer BEAM and vs. our DCF-derived value.

 

Prefer OW rated Beam: We maintain our favorable view of spirits, particularly with recent price increases. However, with OW-rated BEAM’s valuation roughly in line with BFB, and strategic potential more plausible at BEAM given a lack of family control and activist shareholder, we prefer BEAM as the best way to play spirits. Given only 4% downside to our price target, our call on BFB is more of a relative UW. We believe TAP is a more actionable UW with ~10% price target downside, given we forecast substantial EPS risk vs. consensus.

 

 

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Household & Personal Care and Beverages: 2013 Outlook

 

Source: Morgan Stanley

Jan 2nd

 

We have in-line ratings on both the household products and beverage sectors, as the groups offer relative stability with generally reasonable consensus EPS for 2013, but relative valuation levels vs the S&P 500 look stretched here.

 

In-Line Ratings on Household Products/Beverage Sectors: Unlike a year ago, we believe consensus EPS is generally reasonable for our coverage as we head into 2013, with benign commodity inflation offsetting weak topline growth given a difficult consumer environment. Within beverages, we expect EPS downside at the carbonated soft-drink companies given weakening US topline trends (and are lowering our EPS estimates today even further below consensus) but generally expect EPS upside at alcohol companies, particularly given more robust pricing in spirits. With reasonable EPS, but high relative valuation vs. the S&P 500 on a longer-term basis, we are in-line on both sectors.

 

Top Overweights: OW rated Beam is our top pick within beverages, as we do not believe strong growth and strategic potential are fully priced into valuation, particularly with recent spirits industry price increases. In household products, we believe OW rated Tupperware is most compelling, as EPS growth is not fully factored into valuation, and the return of cash to shareholders should be a catalyst for multiple expansion. Please see our 10/22 Beam upgrade note and 11/1 TUP upgrade note for more detail. We remain OW on Colgate and Estee Lauder longer-term, but do anticipate some near-term trading downside, with tough comparisons and VE devaluation risk at CL, and a weak US retail holiday season potentially pressuring EL results.

 

Top Underweight: On the negative side, we remain UW Molson Coors given we believe consensus EPS is too high as TAP will continue to struggle with volume declines in developed markets, the StarBev business is likely to disappoint, and cost savings dissipate.

 

 

——

Add a gas mask and bulletproof vest to equipment needed to regulate alcohol sales

 

Source: Sac Bee

By Jon Ortiz

Monday, Dec. 31, 2012

 

The agency that regulates California’s alcohol sales through undercover stings at bars, restaurants and retailers has spent more than $70,000 outfitting its agents with gas masks and bulletproof helmets.

 

The state’s Department of Alcoholic Beverage Control says the equipment is essential to keeping its sworn agents, who are law enforcement officers with all-encompassing authority, prepared for any circumstances they might encounter.

 

“We want to make sure that our agents have the protective equipment they need so they can go home at night,” said Tim Gorsuch, the department’s chief deputy director.

 

The nature of their work rarely puts the department’s 132 officers in the line of fire. When it does, they nearly always call in local police.

 

“If you think about it, everything they do is in somebody else’s jurisdiction,” said former Sacramento County Sheriff John McGinness. “As a matter of protocol and professional courtesy, it’s appropriate to call in local authorities. . You want the uniforms (police officers or sheriff’s deputies) to go in first.”

 

ABC’s $55 million budget relies on licensing fees from about 115,000 California businesses that sell, import or manufacture alcohol. Any fines levied from agents’ investigations go to the county government in which the offense occurs.

 

From July 1, 2010, to March 1, 2012, ABC agents made 3,834 arrests, many through undercover stings at the bars, stores and restaurants that are the focus of the department’s efforts, according to ABC statistics.

 

Alcohol crimes – selling or giving alcoholic beverages to minors or underage customers purchasing alcoholic beverages – accounted for 2,866 of those arrests.

 

The remainder ran the gamut from narcotics sales, drunken driving and illegal slot machines to illicit firearms sales, prostitution and other crimes in and around businesses that sell alcohol.

 

ABC agents rarely find themselves in gunfights because, Gorsuch said, “our officers know when to engage and when to disengage.”

 

The department doesn’t have data on agent-involved shootings, but Gorsuch recalled five incidents in the last nine years.

 

“Since we don’t track this information in a formal way, I can’t tell you exactly how many (incidents) our agents have been associated with while working with allied law enforcement agencies,” Gorsuch said in an email.

 

Purchase records obtained by The Bee through a Public Records Act request show that the department ordered 170 ballistic helmets from Los Angeles-based Botach Tactical in October 2011 for a total $46,693.46 and received them the following month.

 

On June 26 of this year, the department tapped DirectGov Source, a Chico manufacturer of safety and medical equipment, for 103 gas masks received in early August. Total cost: $25,520.43.

 

Letters from ABC to the Department of General Services defended the purchases as “vital and mission critical to the Department of Alcoholic Beverage Control.”

 

Before buying its own helmets and gas masks, ABC used to borrow the equipment from other agencies when working higher-risk assignments as part of drug task forces supplementing local law enforcement crowd-control efforts as a show of force.

 

Gorsuch said the department doesn’t keep track of how many times ABC agents have taken on those duties.

 

The equipment issued to alcohol investigators in other states varies depending on politics and the scope of their work.

 

Special agents with Florida’s Division of Alcoholic Beverages and Tobacco, for example, are sworn public safety officers. Like their California counterparts, they have statewide law enforcement jurisdiction.

 

“Our special agents are equipped with standard law enforcement equipment including firearms, bullet-resistant body armor, impact weapons and chemical spray,” said spokeswoman Sandi Copes.

 

Florida doesn’t issue headgear for those agents, but they get gas masks as part of a statewide policy enacted after 9/11.

 

On the other end of the spectrum, alcohol regulators in New York aren’t police officers. They don’t make arrests, so they don’t receive the equipment, pay and benefits that go with the designation.

 

California confers public safety status on a wide array of state employees, from insurance auditors to dairy inspectors, but equips them differently.

 

State hospital police officers can’t carry firearms on facility grounds by order of the director of state hospitals. Gov. Jerry Brown in September vetoed a bill intended to change that policy. The police union, the California Statewide Law Enforcement Association, has lobbied State Hospitals Director Cliff Allenby to loosen his gun ban.

 

Auditors and attorneys working for the state prison system’s inspector general used to be sworn peace officers who carried guns and drove law-enforcement vehicles.

 

A 2010 Senate report blasted the arrangement as a perversion of its original intent to create a small group of skilled investigators and attorneys who would be “the cops’ cops” who would ferret out deeply embedded abuses in the prison system, said Inspector General Bob Barton.

 

Not long after the report, then-Inspector General David Shaw resigned. The Legislature withdrew the peace officer status of the auditors and attorneys, and the department sold off its surplus equipment.

 

Barton, who replaced Shaw last year, said those changes made sense because the more dangerous aspects of the investigators’ job no longer exist.

 

“We’re still able to do all the work we’re required to do,” Barton said. “And if we do need help, we can always go to outside agencies.”

 

 

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Diageo Deal for United Spirits Highlights Brewers’ Challenges in India

 

Source: WSJ

By SIMON ZEKARIA

Jan 1st

 

Diageo DGE.LN 0.00% PLC’s November acquisition of a majority stake in United Spirits Ltd. 532432.BY +2.86% has brought India into focus as a lucrative market for the liquor business. But despite India’s huge population and strong economic growth, beer makers still face an uphill task in the world’s second-most-populous country.

 

The average Indian drinker consumes 1.7 liters of beer a year, compared with more than 37 liters in China and 74 in the U.S., according to Euromonitor. India’s spirits market is far more developed, largely because of the popularity of Scotch whisky, with average annual consumption of two liters in India tallying more closely with 3.4 liters in China and 5.6 in the U.S. This explains the United Spirits deal, in which London-based Diageo agreed to pay as much as $2 billion.

 

“India is almost unique. There is a [spirits] ladder for people to climb. You have country liquor, which is really cheap hooch. Then Indian-made foreign liquor, [grain] whiskey, whiskey with malt and bottled-in-Scotland imported blends,” says Bernstein analyst Trevor Stirling.

 

Several factors are cited for India’s relatively low beer consumption. Taxes based on volume, rather than alcohol content, make beer expensive, with federal and state import duties as high as 100%. Brewers also have to contend with inadequate cold storage, limited retail space and restrictions on advertising. Attitudes toward alcohol can be negative; in Mahatma Gandhi’s birthplace of Gujarat, for example, prohibition is still enforced.

 

India also is a tough market for brewers to enter. The dominance of Bangalore, India’s United Breweries, controlled by tycoon Vijay Mallya, is getting stronger; the brewer’s share of Indian beer consumption rose to 57% in 2011 from 43% five years earlier, says Euromonitor. London-based SABMiller SAB.LN 0.00% PLC’s share has dropped to 24% from 37% in the same period. Denmark-based Carlsberg A/S’s CARL-A.KO +0.61% modest presence of 7% today is slightly above local companies Mohan Meakin Ltd. and Mount Shivalik Industries Ltd. 507522.BY +0.87% Belgium’s Anheuser-Busch InBev SA, ABI.BT -0.03% the world’s biggest brewer, and Canada’s Molson Coors Brewing Co. TAP +0.19% have around 1% each.

 

“Our approach is not just to defend our territory. Rather it is to try and make our position even stronger,” says United Breweries Managing Director Kalyan Ganguly.

 

European and North American brewers still feel the market is worth pursuing, given its recent growth. Beer volume in India rose 12% to 1.9 billion liters in 2011, according to Euromonitor, and is expected to grow to about $5.6 billion in 2016.

 

Indians have a clear preference for strong beers, as shown by the relative success of brands such as Elephant, Knock Out and Bullet, owned by Carlsberg, SABMiller and United Breweries, respectively. High-alcohol lager constitutes 80% of the market, and is perceived as a masculine, good value as a substitute for liquor. The challenge for companies such as AB InBev, Carlsberg, SABMiller and the Netherlands’ Heineken NV HEIA.AE +0.48% is to change perceptions in India and to establish a more lucrative, Western-style beer market, with a broader variety.

 

To do that, brewers are changing flavors and selling pricier and more profitable brews to young, professional Indians. United Breweries introduce milder varieties of its best-selling Kingfisher lager and pushes minority shareholder Heineken’s flagship beer. SABMiller rolled out American-style lager Miller High Life, and Indus Pride, with spices such as cardamom and fennel. Beer festivals take place in cities such as Bangalore, Hyderabad and Chennai.

 

Beer “is not a huge market, but there is significant headroom for growth,” says Paolo Lanzarotti, SABMiller’s managing director in India. “The premium space is growing at a rate of knots.”

 

Soren Gronnegaard Lauridsen, Carlsberg’s managing director in India, says consumers are shifting to Western styles of drinking. “You are seeing people, including women, drinking beer from the bottle. I don’t think you would have seen that even five years ago.”

 

Craft beer, generally made by small and independent brewers, is growing too. Urban microbreweries including Rockman’s Beer Island, cricket-themed Howzatt and Doolally have appeared in Gurgaon and Pune.

 

“Consumption is moving toward milder and more premium brands of beer. If foreign beer makers can sort out [access] they would find consumers willing to experiment,” says Sunita Sachdev, an analyst at UBS.

 

But these are small steps and challenges remain. Aside from restrictions on alcohol in parts of the country, India’s bureaucracy is a block to significant growth. Alcohol sale and distribution are restricted by cross-border import, export and excise tariffs, forcing beer companies to open breweries everywhere they want to do business, which increases production costs and cuts efficiency.

 

“The nature of regulation in India is a little bit more complex than most other markets,” says SABMiller’s Mr. Lanzarotti, who calls for a “homogeneous” tax structure. But he believes change will come over the long term. “By definition, it is a slow burn,” he says.

 

Carlsberg’s Mr. Lauridsen agrees. “You realize that it will be an immense task for the central government to take away the excise autonomy that the local state governments have today,” he says.

 

“It is difficult to create a market when your hands are tied behind your back,” says Ernst & Young analyst Andrew Cosgrove. It means significant deal making in India isn’t a priority. “I don’t hear the global beer companies talking a lot about [acquisitions],” he says.

 

“There is huge potential [in India], but the uncertainty and the complexity make that potential very difficult to realize,” Mr. Cosgrove says.

 

Mr. Lauridsen says that despite Carlsberg’s ambition to be the fastest-growing beer company in India, significant consolidation is unlikely.

 

Mr. Lanzarotti agrees that acquisitions aren’t the main priority. “There are a large number of very small beer players out there. There is opportunity, but we remain focused primarily on organic growth,” he says.

 

 

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Restaurant Performance Index improved in November, but remained below 100

 

Source: NRA

Posted by Rachel Salabes

December 31, 2012

 

Buoyed by positive same-store sales and customer traffic results, the National Restaurant Association’s Restaurant Performance Index (RPI) rose in November. However, November marked the second straight month in which the RPI stood below 100.

 

“The November gain in the RPI was driven by improving same-store sales and customer traffic levels, both of which registered their strongest performance in three months,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  “However, restaurant operators remain concerned about the direction of the overall economy, due in large part to the uncertainty around the fiscal cliff.”

 

The RPI consists of two components – the Current Situation Index (measuring current trends) and the Expectations Index (measuring restaurant operators’ six-month outlook) – anRPI Nov 2012 Chart web.jpgd tracks the health of and outlook for the U.S. restaurant industry.

 

The Current Situation Index stood at 99.8 in November – up 0.6 percent from 99.3 in October.  Although restaurant operators reported net positive sales and traffic results in November, softness in the labor and capital spending indicators outweighed the performance, resulting in a Current Situation Index reading below 100 for the fourth time in the last five months.

 

Restaurant operators reported positive same-store sales for the 18th straight month, with November’s results representing the strongest performance in three months.  Restaurant operators also reported a net gain in customer traffic levels in November.  Forty-three percent of restaurant operators reported higher customer traffic levels between November 2011 and November 2012, up from 30 percent who reported positive traffic in October.

 

The Expectations Index stood at 100.0 in November – up 0.4 percent from October.  Although November was an improvement over October’s reading of 99.7, it still signals that restaurant operators are uncertain about the business environment in the months ahead.

 

Restaurant operators are somewhat more optimistic about sales growth in the coming months.  Thirty-seven percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), up from 31 percent last month. In contrast, restaurant operators remain generally pessimistic about the direction of the overall economy.

 

 

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Alcohol: Social Lubricant for 10,000 Years

 

Source: Discovery News

by DNews Editors

Mon Dec 31, 2012

 

As people ring in the New Year with dancing and a bit of bubbly, they can consider themselves part of an ancient human tradition.

 

Several new archaeological finds suggest that alcohol has been a social glue in parties, from work festivals to cultic feasts, since the dawn of civilization.

 

In the December issue of the journal Antiquity, archaeologists describe evidence of nearly 11,000-year-old beer brewing troughs at a cultic feasting site in Turkey called Göbekli Tepe. And archaeologists in Cyprus have unearthed the 3,500-year-old ruins of what may have been a primitive beer brewery and feasting hall at a site called Kissonerga-Skalia. The excavation, described in the November issue of the journal Levant, revealed several kilns that may have been used to dry malt before fermentation.

 

The findings suggest that alcohol has been a social lubricant for ages, said Lindy Crewe, an archaeologist at the University of Manchester, who co-authored the Levant paper.

 

For bread or beer?

 

While the cultivation of grain clearly transformed humanity, why it first happened has been hotly contested.

 

“This debate has been going on since the 1950’s: Is the first cultivation of grain about making beer or is it about making bread?” Crewe said.

 

Some researchers suggest that beer arose 11,500 years ago and drove the cultivation of grains. Because grains require so much hard work to produce (collecting tiny, mostly inedible parts, separating grain from chaff, and grinding into flour), beer brewing would have been reserved for feasts with important cultural purposes.

 

Those feasts — and alcohol-induced friendliness — may have enabled hunter-gatherers to bond with larger groups of people in newly emerging villages, fueling the rise of civilization. At work parties, beer may have motivated people to put a little elbow grease into bigger-scale projects such as building ancient monuments.

 

“Production and consumption of alcoholic beverages is an important factor in feasts facilitating the cohesion of social groups, and in the case of Göbekli Tepe, in organizing collective work,” wrote Antiquity paper co-author Oliver Dietrich in an email. Dietrich is an archaeologist for the German Archaeological Institute.

 

Ancient party sites

 

The site in Cyprus includes a courtyard and hall, along with jugs, mortars and grinding tools, and crucially, several kilns that Crewe and her colleagues believe were used to toast barley for a primitive beer. To test their hypothesis the team replicated the kilns to produce malted barley and used it in a cloudy and slightly weird-tasting beer, Crewe told LiveScience.

 

The Göbekli Tepe site in southwestern Turkey, meanwhile, dates to nearly 11,000 years ago. Neolithic hunter-gatherers worshipped ancient deities through dancing and feasting at the temple site, which is filled with t-shaped pillars carved with animal shapes and other ancient designs. The site also had what appears to be a primitive kitchen with large limestone troughs that held up to 42 gallons (160 liters) of liquid. The troughs held traces of oxalates, which are produced during the fermentation of grain into alcohol.

 

At both sites, the idea of a beer-soaked party must have been a real treat, Crewe said.

 

“There must have been a real sense of anticipation within the community when you knew a big beer event was coming up,” she said.

 

 

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United Kingdom: ‘Tonight I have seen grown men crying in cells with remorse (or self-pity)’: The tweeting policeman’s New Year dispatch from UK’s drunken streets of shame

 

Source: Daily Mail

By Paul Harris and Neil Sears

http://www.dailymail.co.uk/news/article-2255710/Tweeting-policeman-documents-New-Years-Eve-drunken-night-shame-UK-streets.html

2 January 2013

 

As drunken men and women took to the streets in a disgraceful display of violence and degradation, police chief James Tozer was watching.

 

And yesterday his chronicle from the New Year front line was revealed.

 

Superintendent Tozer catalogued events on Twitter during a 14-hour overnight shift in and around the historic market town of Shrewsbury.

 

In it, the West Mercia Constabulary officer describes how the overwhelming surge in crime and disorderly behaviour filled all the cells in one police station before 3.30am … how victims of violence and drunkenness had ‘dreams shattered’ by senseless acts … and how he had seen his officers ‘taunted and ranted at’ as they tried to keep the peace.

 

His Tweets begin at 5pm on New Year’s Eve and continue until 7am yesterday – giving a rare public glimpse into the role police are forced to play when scores of officers must be deployed simply to keep order in an otherwise respectable town.

 

Across the country, it was the night revellers brought shame to the nation at the end of its most glorious 12 months for decades.

 

After Diamond Jubilee patriotism and Olympic triumph did the country proud, hordes of alcohol-fuelled party-goers turned the clock back to show the world a familiar, sickening portrait of modern Britain.

 

They stretched emergency services to the limit as streets became littered with broken glass and pools of blood. Fights broke out within seconds of the bells tolling midnight, followed by stabbings, assaults on police and public acts of debauchery.

 

One pathetic symbol of the drunken chaos came in Newcastle upon Tyne, where a girl in a red mini dress and high heels sprawled on a pavement outside a kebab shop, too drunk to stand and in danger of suffering from exposure.

 

Eventually she stumbled off down the street supported by two police officers, struggling to stay upright – and eventually collapsing.

 

Nearby, an ambulance was fighting its way through crowded streets within a minute of midnight to try to reach a man with blood pouring from his mouth after a brutal attack.

 

Further snapshots of Britain ‘celebrating’ included a semi-naked man urinating outside a Cardiff nightclub, two women dragging an uprooted pot-plant trophy-like through Swansea, and small piles of drunken, motionless bodies forming in cold streets swept by wind and rain.

 

Calls to emergency services could be counted in their hundreds during a period of a few hours in most densely populated areas; as many as seven a minute in the West Midlands, where the ambulance service received 1,293 calls between 1am and 4am alone.

 

In Birmingham, Sharon Trent, 29, said: ‘There were people drunk well before midnight and there were police and paramedics everywhere.

 

‘When it got to 12, people flooded out of the clubs and straight into the streets. The police were struggling to keep control of them. The clubs and bars were crazy. It was a crush inside everywhere – you could barely breathe.’

 

Reveller John Parsons, 36, added: ‘There were people throwing up everywhere even before the fireworks to celebrate the New Year.

 

‘I couldn’t believe how many girls were struggling to walk in their heels. A lot had taken them off and were trying not to stand on the vomit.’

 

Few cities escaped the scenes of drunkenness and violence. London Ambulance Service control room staff answered 2,603 emergency calls between midnight and 5am, an average of around eight a minute and 10 per cent more than last year.

 

Thirteen treatment centres were set up with St John Ambulance in the capital to deal with ‘alcohol-related injuries’, of which 506 were treated by paramedics and a further 49 in hospital.

 

The Metropolitan Police made 96 arrests, nearly 25 per cent up on last year. More than 3,500 officers were on duty along with colleagues from British Transport Police.

 

Clean-up teams shifted 160 tons of rubbish from Westminster streets. In Northumbria, New Year’s Eve arrests rocketed to 220, up almost a quarter.

 

The Great Western Ambulance Service, which covers Gloucestershire, Wiltshire and parts of Somerset, said 999 messages had soared by 9 per cent, with 1,101 calls, the majority between midnight and 3am.

 

A spokesman for the service said: ‘The average number of calls we receive between this time period is normally around 80. On New Year’s Eve it was 467.’

 

Devon and Cornwall Police had to deal with 660 incidents in the first seven hours of the New Year.

 

Elsewhere in England the North West Ambulance Service received 2,265 emergency calls between midnight and 7am – up to one every ten seconds – including 17 assaults and two firework injuries.

 

 

——

Gals Down Alcohol Faster Than Guys

 

Source: Live Science

Stephanie Pappas

31 December 2012

 

Who’s partying the hardest this New Year’s? In some places, it may be the ladies.

 

Male university students in Spain down more booze overall than their female counterparts, but in drinks-per-hour, the ladies are out-quaffing the guys, new research finds.

 

The study researchers, who interviewed 985 students at the University of Vigo in Spain, also found that women were more sedentary than men, and surprisingly high proportions of both sexes used illegal drugs.

 

American bingers

 

Estimates vary on how many American college students binge drink, defined by drinking five or more drinks in two hours for men and four or more drinks for women. However, one in six U.S. adults reports binge drinking about four times a month, with an average of eight drinks consumed per episode, according to the Centers for Disease Control and Prevention (CDC). Binge drinking is most common among 18- to 34-year-olds.

 

In the United States, mixed-gender housing fuels binge drinking, according to research published in 2009 in the Journal of American College Health. Students in co-ed housing were 2.5 times more likely to binge drink weekly than students in single-gender housing. Other research suggests that binging may be a way to feel a sense of belonging in schools where getting smashed is the norm. In one study presented in August 2012 at the annual meeting of the American Sociological Association, students at a liberal arts college in the Northeast often reported that they didn’t want to binge, but felt it was linked with high status in the campus culture.

 

Booze and gender

 

In the new study of Spanish students, University of Vigo researchers found that 56.1 percent of women were binge drinkers, compared with 41.3 percent of men. The men still downed more drinks, on average, than women, but they did so at a slower rate.

 

Other health red flags among women included the finding that 51.2 percent were sedentary, or did not get the recommended amount of physical activity each day, compared with 41.7 percent of men. Among the students who managed to move the recommended amount of time each day, 38.6 percent of men deliberately made time to exercise, compared with only 20.9 percent of women.

 

Men were heavier drug users than women, however, with 44.9 percent of males and 30.9 percent of females reporting the use of illegal drugs. [10 Easy Paths to Self Destruction]

 

In most cases, the students’ program of study did not make a difference in their health. However, women studying for education careers were much more likely to have disordered attitudes toward food than women in health-related fields, the researchers found. About 19 percent of women in education had attitudes associated with eating disorders, compared with only 6.3 percent of women in health. Overall, 8.8 percent of men reported disordered attitudes toward food.

 

The researchers first reported their results in August in the Journal of Environmental Research and Public Health.

 

 

——

In Russia, Beer Will No Longer Be a Food

 

Source: Reuters

Alexander Abad-Santos

Dec 31, 2012

 

Don’t laugh: Lagers, ales, and pilsners were long considered “food” by the Russian government, but thanks to a new rule going into effect in 2013 (any minute now over there), it’s going to be a lot tougher to find a brewski in the motherland. The story is a lot more complicated than laughing at the thought of “eating” beer (which does happen in some parts), and it has to do with beer’s history of being treated like a soft drink rather than alcohol – until now.

 

“The limits are part of a government effort to reduce alcohol abuse in Russian, where one in five male deaths are linked to booze, according to world health experts,” reports NBC News. More specifically, “The average Russian drinks the equivalent of 32 pints of pure alcohol per year and about 500,000 deaths annually are thought to be drink-related. That includes a large number of about 30,000 annual road accident deaths and of several thousand cases of drowning,” reports The Telegraph. According to NBC, beer won’t be available at “street kiosks, gas stations and bus depots like it has been” – at least not between the hours of 11 p.m. and 8 a.m. Then again, that’s what bars are for.

 

What Russians still have is plenty of vodka, which accounts for almost 50 percent of alcohol sales, and those numbers could see a boost with the new beer rules going into effect. And, well, beer will still be a food during tonight’s New Year’s celebrations, when Russians are expected to drink 1.5 billion liters of alcohol, reports Russia’s RT.com.

 

 

——

Abstaining from alcohol in January ‘not enough’ liver experts say

 

Source: Daily Telegraph

By Rebecca Smith, Medical Editor

01 Jan 2013

 

Year-round action is needed to protect the liver from the effects of alcohol and fatty food, including having at least two alcohol free days a week, taking regular exercise and cutting down on fat and sugar in the diet, the British Liver Trust has warned.

 

The charity Alcohol Concern are however encouraging people to abstain from drinking this month in their Dry January challenge, in order to help them save money, lose weight and feel healthier.

 

Andrew Langford, chief executive of the British Liver Trust, said: “It’s not about a quick fix in January, to repair the liver and keep it healthy, people need to follow our three-step plan all-year round: 1) Take two to three days off alcohol every week; 2) get regular exercise; 3) cut down on sugar and fat.

 

“Last year the Love Your Liver Roadshow found that one in four people tested were showing the early signs of liver disease. Caught at this early stage, lifestyle changes allow the liver to repair itself.

 

“Having an alcoholic drink every night, overindulging in rich food too frequently and not making time for regular exercise are major contributing factors for liver disease.

 

“As everyone is affected differently, and symptoms are almost unrecognisable until the damage is beyond repair, the Government needs to take action to help people understand the damage they are doing.

 

“Our Love Your Liver campaign offers free screenings to the public at a series of pop-up liver health clinics, offering free FibroScan tests which help identify the early warning signs and practical advice about how to love your liver. However, we can only reach a very small group of people and we’re appealing for the Government to do more.”

 

The British Liver Trust called on the Government to make early liver screening available to everyone at risk in a bid to save one million lives a year.

 

Liver disease, now the fifth biggest killer in the UK, has increased in the past year as British culture continues to embrace the daily consumption of alcohol and unhealthy food choices, combined with a sedentary lifestyle, the trust said.

 

With no early warning signs, and tolerance levels varying genetically, liver testing is critical to identify early signs of damage so people can make lifestyle changes to save their lives.

 

The charity made its plea as it launched its second Love Your Liver awareness campaign, to be led by a nationwide roadshow of ‘pop-up’ liver health clinics, sponsored by Eisberg alcohol-free wine.

 

A spokesman for Alcohol Concern said their campaign was aimed at encouraging people to think about how much they drink overall and does not claim to improve long-term health.

 

Their campaign material states: “This is not a medical detox programme and should not be undertaken by people with alcohol dependency issues.

 

“This is both an awareness raising campaign and a fundraiser for Alcohol Concern. All money raised must be donated to Alcohol Concern only.

 

“The benefits of giving up alcohol for a short period include: improved sleep, losing weight, improved skin and hair quality, and saving money. It is unlikely there will be any significant change in liver function over a month.

 

“This type of campaign has been run in different forms in Australia and New Zealand, where one campaign reports 2/3 of participants have had more alcohol free days than before, and just over half report reducing how often they drank alcoholic drinks. More than a third reduced the frequency of consumption for a whole year.”

 

 

——

Climate change threatens French wine

 

Fluctuating weather and warmer temperatures mean soon you may have to pay more for your favorite Bordeaux – if you can find it.

 

Source: Global Post

Marie Doezema

January 1, 2013

 

From rising shorelines to devastating hurricanes, the visible effects scientists say climate change is wreaking on daily life no longer surprise many people around the world.

 

The French have their own take on just how radically life may change.

 

“In 20 years, the English will be making Grenache from Chateauneuf-du-Pape,” says Herve Lethielleux, co-owner of L’Etiquette, a wine boutique in central Paris, about a wine variety from subtropical southeastern France.

 

That’s because the changing climate is affecting the delicate balance of weather, soil and other factors that are central to the production one of their main commodities, something that’s already had a visible effect elsewhere around the globe.

 

“If you look at Tasmania, it was too cool to grow grapes 25 to 40 years ago,” says Gregory Jones, a research climatologist at Southern Oregon University, about the wine-producing region of Australia. “Today, it’s clearly much more suitable.”

 

For French winemakers already keenly feeling the effects of growing competition from other countries, higher temperatures in recent years have meant grapes with lower acidity and higher sugar content. That makes for higher alcohol and fruitier – some say cloying – wines.

 

“As you get older you don’t want those hugely alcoholic fruit bombs,” says Juan Sanchez, owner of Le Derniere Goutte, a wine shop on Paris’s storied Left Bank.

 

In France, where wine is an important part of social culture, “alcoholic fruit bombs” are also counterintuitive to the typical palate. Usually paired with food, wine is generally intended to enhance rather than overpower. “You almost don’t want to eat with those kinds of wines, they’re like a meal in themselves,” Sanchez explains.

 

Lethielleux says many of the winemakers with whom he works have been documenting gradual but persistent changes in climate over the past decades – and noting increasingly earlier harvest dates with growing alarm. “The grapes just aren’t ripening properly,” he adds.

 

Such concerns raise an increasingly common question: “Will people have to change what they’re planting to adapt?” Sanchez says.

 

That’s easier said than done, thanks to the strict French system for categorizing wines. They can be classified as AOC – appellation d’origine controlee, or controlled designation of origin – only if they conform to certain varietal constraints in each region.

 

Drastic changes to grape varieties – even in response to potentially ruinous climate change – can be a risky business for growers. “You can do it but you lose the appellation,” Lethielleux says. “If you’re not a great winemaker, having your wine declassified means you can’t sell it at the same price anymore.”

 

The changing environment is starting to shake a system that’s been central to European wine for centuries. “Europe has historically been about regional identities based on varieties of wines and particular styles,” says Jones, a specialist in the study of climate structure and suitability for viticulture.

 

“Those that have adaptive capacity in the face of climate change are going to be much more able to adapt across a range of different climate futures,” he adds.

 

However, climate change is nothing new in the earth’s history, he points out. “Today the issue is that our agricultural systems are much more fixed,” he says, “and our investments in our agricultural systems are much more fixed.”

 

Despite the rising concern, Jean-Pascal Goutouly, a researcher at the Institut des Sciences de la Vigne et du Vin, part of the National Institute for Agricultural Research in Bordeaux, says full-on crisis mode hasn’t yet arrived. “Things are okay for the moment,” he says. “We still have the possibility to adapt to the conditions.”

 

As this year showed, it’s not only warmer temperatures and earlier harvests that are affecting wine, but more volatile weather in general.

 

“This is a bad year – a lot of disease, a lot of rain, a late spring and a summer that never arrived – and it was dreadful with hail,” Lethielleux says. “The grapes are all stressed: They’re full of sugar, but they’re not ripe.”

 

Weather fluctuation of more than “two or three times more than what you’re used to” may jeopardize the entire French viniculture system, Jones says, adding that the main threat is the combination of factors.

 

“France has a long, rich history of growing grapes and making wine,” he says. “Production has varied, there are good years and bad years, and French wine growers have always dealt with that.”

 

“The issue today,” he adds, “is that it appears climates are both changing and varying more than they have historically and our potential to adapt across those climates is more challenged.”

 

More from GlobalPost: 2013 full of looming political crises

 

Even if future adaptation is possible, that may be little consolation to winemakers who lost significant portions of their crop this year. The harvest was the smallest in at least 40 years, according to the Agriculture Ministry, which estimates overall production to be down by 20 percent thanks to lousy weather across France.

 

That’s already a source of consternation around French tables and wine bars. And it’s starting to resonate around the world, as lovers of French wine begin to worry about what climate change may mean for the availability – and price – of their favorite Bordeaux or Bourgogne at their local wine shops.

 

 

——

Eppa sangria aims to create new premium category

 

Former Bacardi executives have launched a new firm, the Eppa Wine Company, selling a premium sangria they boast offers fruit juices loaded with antioxidants.

 

Source: Miami Herald

By ELAINE WALKER

Dec 31st

 

As former top marketing executives at Bacardi U.S.A., Raul Marmol and John Gomez were used to launching new products with multimillion dollar national advertising campaigns, slick television commercials and a staff of more than 50 people.

 

But when they launched Eppa Sangria in October 2011 at Whole Foods stores in Florida, it was a grass-roots effort, and a low-budget venture with no advertising.

 

Both Gomez and Marmol were regularly working at tastings at the Coral Gables Whole Foods near their house, helping pour the product for consumers and fetching more cases of their wine from the shelves. Partner Britt West was doing the same thing at Whole Foods in Miami Beach, while partner Gonzalo de la Pezuela was running tastings himself at stores from Key Biscayne to New York.

 

Record tasting

 

The entrepreneurs wanted to see first-hand how consumers would react to the sangria they had been creating for about 2 ½ years. The result was better than anyone could have anticipated: Between 50 and 60 percent of the consumers who tasted a glass walked away with at least one bottle. The record was a tasting at the Coral Gables Whole Foods, where they sold 106 bottles. Normally a good tasting is about two dozen bottles, they say.

 

The Whole Foods performance was in essence the test market for Eppa Wine Company, and the first indication they had a winning formula.

 

“If the Whole Foods customer in Florida wasn’t going to be purchasing the product, we didn’t have a business,” de la Pezuela said. “It was a way to validate the concept.”

 

That success has continued. During its first calendar year on the market, Eppa is on track to sell about 40,000 cases for 2012 – about 40 percent higher than expectations. The company expects revenues of $2.7 million for the year.

 

“We blew away our model,” Marmol said. “This has been a remarkable consumer success from the day we put it on the stores. The feedback has remained consistent – it’s all about the taste.”

 

The key to Eppa’s success has also been its focus on creating a new market niche – billed as the first premium sangria.

 

Eppa Sangria is far different from the typical $5 bottle of sangria or jug wine that consumers dress up with some brandy and sliced citrus fruit. Eppa is made from organically grown grapes and crafted with a blend of Mendocino cabernet and syrah. The sangria also contains a blend of organic fruit juices rich in antioxidants, including pomegranate, blueberry, blood orange and acai juices. Eppa is designed to be poured straight over ice, though adding fruit is certainly an option.

 

Coming next spring is a white version made with Mendocino County chardonnay mixed with mangosteen, peach, mango and blood orange juices.

 

The suggested retail price for both is $11.99, although you’ll find Eppa priced as low as $9.99 on promotional specials. While it’s about twice the price of the typical sangria, customers are still buying.

 

Easy drinking

 

At Whole Foods in Pembroke Pines, Eppa is consistently one of its top three wines in the store, which has an inventory of about 800 wines, said Alex Mendoza, the store’s wine specialist.

 

“Usually after they taste it they buy a bottle, then they come back for more,” Mendoza said. “It’s very easy drinking, not too sweet and not too tart.”

 

During a tasting this month at a Publix in Plantation, Susan Reynolds stopped to taste a cup of Eppa and was impressed with the flavor.

 

“It’s marvelous,” said Reynolds, who lives in Pembroke Pines and normally favors dry red wines like malbec or pinot noir, but bought a bottle of Eppa. “It has such of punch of fruit, you think the antioxidants are real. It’s something different. I thought it might be healthy for me, too.”

 

Eppa has ignited the entrepreneurial spirit of the four partners. They had worked together in the Bacardi U.S.A. marketing department, with Marmol as their boss. By 2008, all of them had left the company. Initially they did consulting work, but their real dream was to develop a beverage brand of their own — the question was what? While most of their experience was in spirits, Marmol had a non-compete agreement so he would have to stay out of that realm for several years.

 

“We did an awful lot of looking at the playing field to see what potential space would be available,” Marmol said.

 

Three trends

 

During their research, the partners hit on three trends that can help further their success:

 

.  Wellness/Organic: This market has gone mainstream. The organic food and beverage category is a $27 billion industry, according to the Organic Trade Association. “Super” fruits are more in demand as consumers learn about the benefits of antioxidants.

 

.  Sangria: The category is experiencing double digit growth, according to Impact Databank. But while experiencing a surge in popularity in bars and restaurants, the fruity wine has not seen the same growth in retail store sales.

 

.  Wine: The entire wine category in the U.S. has been on a continued growth trend with the amount of product consumed reaching more than a $30 billion retail value. The $10-$12 price point is a growing segment for entry-level premium wine.

 

“This is not your abuela’s sangria,” Gomez said. “We tried to tap into the mega trends taking place in order to justify a premium price point for sangria that didn’t exist.”

 

It was Gomez’s then high school-aged daughter who created the name Eppa, which is a Spanish colloquialism for “Hooray” or “How exciting,” similar to the Greek version of “Opa.”

 

“It was a perfect name for sangria because we’re all about partying and good times,” said Gomez, who in college was nicknamed the Sangria King because of the batches he would concoct in his Igloo cooler. “It was also something with Hispanic roots and easy to say.”

 

The Eppa formula was created by another former Bacardi executive Jim Goodwin, who was a partner in the venture but died of cancer in summer 2010 and didn’t see the vision come to fruition.

 

The partners funded the start-up costs for the brand themselves, with some personal bank loans. Marmol estimates that start-up working capital to carry the company through the end of 2013, at which point they hope to break even. The goal is to start generating profits by 2014, Marmol said.

 

In the first year of sales, Eppa has accomplished what’s often most difficult for a new product: getting shelf space in major retailers.

 

Eppa is now available in more than 35 states, including Whole Foods and BJ’s stores across the country, at all Publix stores in the Southeast, Fresh Market stores in South Florida and throughout select stores in Florida for Total Wine, ABC Fine Wine & Spirits, Walgreens and Winn-Dixie.

 

Impressive sales

 

Although it’s only been available in Publix since late July, Eppa is already delivering impressive sales numbers. More than half of Eppa’s Florida business is now generated at Publix. Nielsen data show that Eppa was the top selling sangria at Publix stores in Florida for the four weeks that ended Dec. 8 with a volume of $282,149 and 27,742 bottles. Compared with all still wines at Publix, Eppa ranks 12th in dollar value of sales volumes for wines sold in Florida during the same period, according to Nielsen data.

 

Publix spokeswoman Brenda Reid would not confirm those numbers, but said that for the year, Eppa ranks within the top 500 wines throughout the company and the top 300 in the Miami area. Publix sells over 5,000 wines.

 

Eppa’s founders have focused on building distribution in grocery store chains, so the number of restaurants and bars where you’ll find Eppa is limited. But that list includes some high profile locations like SoHo House in Miami Beach and Walt Disney properties in Florida and California. At Disney, Eppa consistently ranks as one of the top two cocktails on the drink menu, said Bradd Levitan, owner of Five Star Wine & Spirits, which serves as a consultant and broker to Eppa

 

The brand’s core audience is 70 percent female, from single urban professionals to soccer moms between the ages of 25 and 55. Eppa also has a core group of followers among young men in their 20s.

 

“I think we’ve broken through in the sangria category,” de la Pezuela said. “At least half of the people buying Eppa probably haven’t purchased sangria in bottles before. Eppa is becoming part of the regular rotation for people who drink red blend wines.”

Eppa’s founders believe a better comparison for their sangria would be wines in the $10-$12 price range, like the labels Cupcake and Menage a Trois.

 

The focus of their success has been about getting consumers to try the product and see the difference first-hand. While Eppa has had no traditional advertising, the founders have invested heavily in a tasting program that has included over 2,000 tastings during the last year.

 

“They want as many people to taste the product as possible,” Levitan said. “They understand that the pot of gold is down the road and you have to invest in the brand to get it to consumers. I’ve never seen a product take off like this. In my 22 years in the industry, it’s been the most successful brand launch I’ve ever been a part of.”

 

 

——

Controversy swirls over popular Ottawa wine writer’s alleged misuse of others’ work

 

Source: The Ottawa Citizen

By Tony Lofaro

January 1, 2013

 

There is a growing ferment in wine-criticism circles over the way a prominent Ottawa wine writer has been quoting from the work of other critics – and attacks against her have grown harsh enough that she’s considering legal action.

 

Natalie MacLean is an award-winning author and wine writer whose work has appeared in publications including the Chicago Tribune, BusinessWeek and the Ottawa Citizen. For years, she has also self-published reviews on her personal website and in a newsletter, which readers pay to access. These are now the subject of controversy. At issue is an alleged lack of proper attribution in wine reviews, and the alleged misuse of copyrighted material.

 

MacLean feels comments about her posted to a U.S. website in December were so nasty that they have damaged her reputation and presented unnecessarily harsh personal descriptions of her. She is considering launching a lawsuit against some of her fellow wine writers in response.

 

For years in her online reviews, MacLean would refer to or quote reviews by other critics, but those references would often cite only the critic’s initials; a directory key located elsewhere on her site offered a guide to which critics – including world-famous names like Robert Parker and Jancis Robinson and other Canadian critics like Rod Phillips and Tony Aspler – were indicated by their initials. The references did not indicate where the original review had been published, nor did they feature a link to the original publication. Where credit was given, it was allegedly always to Vintages Wine Catalogue, an LCBO promotional publication that includes full accreditation when reprinting critics’ reviews.

 

“I wasn’t quoting other reviews for every single wine, it’s just when I felt it provided a helpful context for my review,” said MacLean, 46.

 

“I’m in the field of criticism like movie reviewers and restaurant reviewers and I had seen on other sites where they would quote multiple critics just to provide a wider perspective of context. I believe that another criticism or evaluation of the wine provided a helpful comparison for my readers and that’s what I was trying to do for them.”

 

However, MacLean said she was contacted in October by Toronto wine blogger Michael Pinkus, who urged her to change the way she attributed the work of other writers in her reviews.

 

After thinking about it, MacLean said she began adding the other critics’ names and publications when she cited their work in her own. In an email exchange, she let Pinkus know that she had changed her method of citation.

 

“My impression is that he (then emailed) a larger group of people on the issue. That is when the U.S. (wine) blog picked it up and went with the story,” she said.

 

That blog was the Indianapolis-based online wine magazine Palate Press. A Dec. 15 post on that site accused MacLean of failing the Fair Use test by publishing entire copyrighted reviews by other writers – or large portions of them – for commercial purposes. The post elicited hundreds of comments both pro and con, and was followed by other posts which questioned other aspects of her professional ethics. After reading some of the comments on the website MacLean sought legal advice on whether to proceed with a lawsuit.

 

“She is a major blemish on our industry and it is particularly sad that she holds such sway with the average person,” said somebody posting earlier this month under the name Canadian Wine guy.

 

“I have been writing wine reviews well over 20 years. Not only have I never borrowed what anyone else said, I have made a point of never reading what anyone else says. This would be (for me) tantamount to cheating in a blind tasting,” said Stephen Reiss.

 

“Apparently, she has huge readership … (but) what writer relies on liquor store catalogues, or infringing on the work of others for their information. Would she have us believe she would have made these changes if she wasn’t outed,” wrote Doug Wilder in another posting to Palate Press.

 

MacLean posted an open letter to her readers on her site on Dec. 21, explaining her side of things and acknowledging that she had “learned a lot about these issues over the past week.” However, she said in an interview, she wasn’t disturbed by the debate so much as she was taken aback by the animosity directed at her by other wine bloggers and reviewers.

 

“I was surprised at how this issue was characterized as opposed to just debating the issue itself. The issue itself deserves debate: how do you quote and attribute wine reviews? It was painful because it was a pretty severe personal attack on my character that went far beyond the issue,” she said.

 

Pinkus said he still has questions about the manner in which MacLean presents her wine reviews to the public.

 

“It’s the way she did quote them that I question, it’s the ethics,” said Pinkus, a member of the Wine Writers Circle of Canada.

 

“I don’t care if on her website she reprints every (noted UK wine writer) Jancis Robinson review ever printed. But tell me it’s Jancis Robinson’s review, don’t couch it in initials because that tells me nothing,” said Pinkus.

 

He said while he applauds MacLean for making changes in how she makes attribution in her reviews she still hasn’t gone far enough. He said listing the date when a wine was tasted by another writer is important because a wine changes over time and he needs to have that information when he reads her review.

 

“Natalie’s new format doesn’t put a date in, yet the LCBO magazine where she is taking the reviews from gives the full citation of where, who, and when. What’s happened here is that the work of some 40 wine journalists has been stolen, put somewhere else and someone is making money from it and we are not,” said Pinkus.

 

He said the personal attacks on MacLean are “unfortunate” and is likely the result of pent-up frustration towards her.

 

Her lawyer, Robert Ford said the comments against MacLean were damaging and hurtful to her professional reputation.

 

“We’ve reviewed some of the (online) postings and our interpretation is that some of them do go over the line. The online world brings an anonymity and an ease in making these comments, you don’t face your accuser so people say things that they don’t consider to be defamatory,” said Ford.

 

 

——

A Critic Who Favors Finesse Over Power

 

Source: WSJ

By JAY MCINERNEY

Dec 28th

 

When I buzzed the door of Stephen Tanzer’s apartment on the Upper East Side of Manhattan two weeks ago, the hallway was empty; 40 minutes later, some eight or 10 boxes, all of them full of wine samples, were stacked beside the doorway. “I just cleared all the boxes out of the foyer this morning,” he told me somewhat wearily.

 

While the wine world buzzed about Robert Parker’s sale of a controlling interest in his influential newsletter, the Wine Advocate, Mr. Tanzer was busy preparing the next issue of the International Wine Cellar, which he has been writing and publishing since 1985. Subsequently Mr. Tanzer played Phil Mickelson to Parker’s Tiger Woods, building a devoted following among serious wine lovers even as Mr. Parker’s influence grew and shaped the habits of drinkers and winemakers world-wide. As the Parker era draws to a close, the vinous zeitgeist seems to have caught up with Mr. Tanzer, whose palate favors finesse over power. While there are many more sources of information and opinion than there were when he started the International Wine Cellar, very few are as comprehensive, or as informed.

 

Tall and slender, with a dark mustache he’s sported since his days at Wesleyan, Mr. Tanzer runs the IWC from his antiques-crammed prewar apartment, in which bookshelves compete with wine racks for wall space. He’s an avid reader of fiction, and his wife is a professor of English at Queens College. If you had to generalize about Mr. Tanzer’s taste in wine from the décor of his home you’d say he doesn’t seem like the kind of guy who favors glossy, new-oaked, New World wines. On the other hand, the six wines he chooses to taste with me before we go out to dinner are from Argentina and Washington state, and he finds some virtue in all of them, though he clearly prefers those with a drier, more herbal, Old World profile. “Black olive, garrigue and black pepper,” he says approvingly of the 2009 Reynvaan Family “In the Rocks” Syrah from Walla Walla, Wash.

 

If he is forced to pick a favorite region he will say Burgundy, but he’s enthusiastic about emerging territories such as South Africa and Argentina. And unlike some Burgundy lovers, he has space in his heart and his wine rack for pinots from New Zealand and California. As for Bordeaux, while he doesn’t exactly join in on the bashing of the region which has become such a popular sport, he admits to a preference for the smaller estates of Saint-Émilion and Pomerol on the Right Bank as opposed to the big classified growths of the Left Bank. Like many American wine lovers of his generation, he started with Californian wines. “Then I discovered top French wines, which in their complexity seemed like alchemy: an amazing thing to do with grapes. For Chardonnay, my first epiphany was Leflaive’s white Burgundies.”

 

Mr. Tanzer was working as a journalist when he caught the wine bug; he took a job as a sportswriter for the Washington Daily News after graduating from Wesleyan, following in the footsteps of his father who wrote for The Wall Street Journal before becoming managing editor of U.S. News & World Report. The son worked for several other publications before starting the New York Wine Cellar, later renamed the International Wine Cellar. His tasting notes have always been very precise and very readable-by no means the norm. He chose to adopt the hundred point rating system used by Mr. Parker’s Wine Advocate and the Wine Spectator, but over the years he’s developed a reputation for being a tougher grader than either of those publications-a fact confirmed in a recent study by the American Association of Wine Economists. He seems proud of his stinginess with big scores.

 

It’s tempting to see Mr. Tanzer as the anti-Parker, the Bizarro World Twin of the big man from Baltimore, and it’s not hard to make that case. “I’m more of a pinot man than a Cabernet guy,” he says. “I tend to be interested in cool-climate wines. A lot of California wines are too ripe.” Mr. Parker, by contrast, is famously enthusiastic about big, ripe wines from warm vintages. (They seem to physically embody their own palates: Mr. Tanzer lean and wiry, with a precise and deliberate manner, Mr. Parker barrel-chested and generously proportioned; Mr. Parker’s ideal portraitist might be Rubens, whereas Mr. Tanzer seems more like an El Greco subject.) Mr. Parker’s outsize influence on the wine world since he championed the 1982 Bordeaux vintage eventually resulted in something of a backlash, but Mr. Tanzer isn’t piling on. “Parker was the right guy at the right time-he educated a generation,” he told me over dinner at Rouge Tomate in Manhattan. “And there isn’t anybody who can appreciate what he’s done like I can,” he adds. That said, Mr. Tanzer’s palate and his long-standing preferences seem very much aligned with current less-is-more trends in the wine world.

 

If Mr. Tanzer is forced to pick a favorite region he will say Burgundy, but he’s enthusiastic about emerging territories such as South Africa and Argentina.

 

“I like white wines that are minerally and saline and energetic,” he says. Curiously though, the white wine he brought for our meal is very ripe and voluptuous, by no means dry, a 2006 Hirtzberger Riesling Smaragd Singerriedel. It had a hint of wet stone but seemed to me to be a more decadent white than he’d just described as his ideal, though I personally loved it, and it seemed to confirm his contention, later in the evening, that he’s not “an ideologue.” The wine got 97 points in his newsletter, about as high a score as you are likely to see there. On the other hand, the next bottle, a 1997 Mascarello Barolo Monprivato Cà d’Morissio, was very much a connoisseur’s wine, an earthy red that was fresh and bright on the palate if somewhat funky on the nose, a fact he felt might be the result of an unclean barrel. A shame because when he first tasted it for the IWC he found aromas of “red berries, rose petal, bergamot, white truffle, menthol, eucalyptus, tar, graphite, licorice, tobacco.” He hadn’t deliberately shunned the New World, but the third wine he brought to the restaurant, a 1995 Williams Selyem Summa Vineyard Pinot Noir, from a legendary producer he was among the first to discover, was corked.

 

Mr. Tanzer is assisted at the IWC by the highly regarded critic Josh Raynolds, who covers the Rhone and Champagne among other regions. Italian wine expert Ian d’Agata is a frequent contributor. But he still tastes 10,000 to 12,000 wines a year, many of them in the cellars where they were born, others at home in Manhattan. “The road of excess leads to the palate of wisdom,” he jokes, paraphrasing Blake, though his temperament seems to me a little more Apollonian than Dionysian. He drank moderately over the course of two meals I shared with him, leaving some very good juice in his glasses at the end, and he is by his own description positively ascetic when he’s on the road, eating sparingly, spitting dutifully. “I usually give myself Sundays off for bad behavior, so I live for Saturday night dinner or Sunday lunch.”

 

I don’t begrudge him the day off; as that other guy fades into the sunset, I’m grateful Mr. Tanzer is still tasting dozens of wines a day, and sharing his discoveries.

 

 

——

A legendary wine importer sells her business

 

Source: SF Gate

by Jon Bonné  

12/31/2012

 

Martine Saunier, who pioneered an import business that brought Americans some of the greatest wines of Burgundy and the Rhone, has sold her Novato company.

 

Martine’s Wines, which will retain its name, was purchased by Gregory Castells and Kate Laughlin, both formerly of Napa-based wine firm Soutirage. Terms of the deal were not disclosed, although Castells and Laughlin, plus unnamed investors, took ownership on Dec. 21 after a short negotiation. Saunier will remain with the company for the next two years to help with transition.

 

“It was really important for me that there was a continuity,” she says.

 

While some other West Coast importers may be better known  to consumers, Saunier’s work has been legendary in the industry. Her biggest discovery was undoubtedly Henri Jayer, who diligent work elevated his Burgundies to cult status; though his Cros Parantoux was not a grand cru vineyard, it became one of the world’s most sought-after wines. She also introduced Americans to the work of Chateau Rayas, arguably the top estate in the southern Rhone, and other influential producers, like Denis Mortet.

 

“Our goal,” Castells said in a statement, “is to preserve and further that legacy.”

 

As notable as her discovery of Jayer was her work with Lalou Bize-Leroy, who after being ousted from the Domaine de la Romanee-Conti, Burgundy’s most renowned property, established her own estate and subsequently began making wines that could command equal prices to Romanee-Conti, often in the thousands of dollars.

 

Saunier’s business was always defined around her own hunt for quality. She spent months in France each year looking for new producers and tasting the latest work from her stable, one that not only contained rare wines but also a range of producers from Champagne, Alsace and elsewhere. It was crucial, then, to find a way to hand off her business while preserving her long work.

 

“I’ve been thinking, where can I find someone? For the last two or three years I’ve been thinking about it,” she says. “I thought, it has to be a Frenchman, because most of my wineries, they don’t speak English at all. They’re used to me, and I’ve been going for a long time.”

 

Enter Mr. Castells, who mentioned over a meal at Saunier’s house one day that he was thinking of starting a company. Saunier suggested that he should own a business like hers. Soon they were discussing that possibility.

 

His credentials fit perfectly. A Provence native, he had built the wine program at Le Bec Fin in Philadelphia and served as head sommelier at the French Laundry; as a longtime customer he knew Saunier’s wines intimately. Laughlin, who left advertising to work for the Thomas Keller Restaurant Group, worked with Castells both there and at Soutirage.

 

An unexpected rise

When Saunier launched her business in 1979, her role was groundbreaking. Originally from Paris, with family ties to southern Burgundy, she had come to California in 1964, and imported her earliest wines in the late 1960s. But with encouragement from Los Angeles chef Jean Bertranou, she formed her own business at a time when women were a rarity in any part of the wine industry. Certainly they did not sell wine, and the prospect of a petite Frenchwoman marching into the boys’-club world of sommeliers and retail buyers was improbable at best.

 

Saunier was determined, and happy to invoke a bit of Gallic charm. That soon paid off, and she expanded her distribution across the country, thanks in part to aces in her roster like Jayer.

 

But it was her work with Bize-Leroy that helped telegraph just how much the world was changing. Wines from the world’s finest sites – Romanee-St.-Vivant, Musigny and so on – made by a woman and sold by one? It quickly sent a message that wine was going to be a more equitable business.

 

“I remember when women started selling wines for big companies. There was a time when we had short dresses well above the knee. They always picked up good looking girls, sexy girls, and I was embarrassed,” Saunier recalls. “Now, of course, it has all changed. The women you meet around the country are very knowledgeable, are very talented. It’s fantastic.”

 

In addition to helping with the transition, Saunier is set to release her own documentary, “A Year in Burgundy,” made with veteran TV producer David Kennard. They are collaborating on two additional films, set in Champagne and Portugal.

 

And while the sale transferred all assets, including the company’s wine, Saunier made clear that she held on to a few essential wines in her own collection.

 

“There is no Jayer, that’s for sure,” she says. “I made sure that all my Jayer stays with me.”

 

 

——

Wine Underpants Join Space Whisky on Sale: Elin McCoy

 

Source: Bloomberg

By Elin McCoy

Dec 30, 2012

 

Dark, cold outer space is the new wine and spirits frontier.

 

The extraterrestrial terroir taste in Meteorito, a cabernet made at Chile’s Tremonte winery, comes from a 4.5-billion-year- old meteorite from the asteroid belt between Jupiter and Mars.

 

Winery general manager Ian Hutcheon, owner of the nearby Centro Astronomico Tagua Tagua and anxious to join his two passions, submerged the 3-inch space rock in some of his 2010 cabernet for a year.

 

In a blind tasting with colleagues, he found the bottled wine had a livelier and fresher taste, “with a curious twist.” It’s coming soon to New York, where it will cost about $20 a bottle.

 

The Ardbeg whisky distillery on the Scottish island of Islay, on the other hand, announced that it had sent plastic vials of unaged single malt molecules where no dram had gone before: the international space station, 250 miles above earth.

 

The mission: a two-year study with space research company NanoRacks LLC to see how the famously peaty spirit ages in near zero-G. The cost to find out how complex flavor molecules called “terpenes” interact with charred oak in this atmosphere is half a million dollars.

 

Will all this result in new aromas and flavors for a space- inspired whisky? We’ll beam down the results next year.

 

Space’s vast potential for wine and spirits was only one highlight among 2012’s weird and wacky stories.

 

Robot Rack

 

An over-the-top wine rack in the style of a giant Transformer robot toy is posted on Craigslist for $7,000. Six feet tall, weighing 1,000 pounds and made from old automobile and motorcycle transmission parts in China, it’s billed by its Arizona owner as “ridiculously cool.”

 

Most of the 32 welded bottle slots store wines vertically, so it isn’t ideal for super pricy wines, but perfect for the fan-boy geek who has everything. First posted in June, it’s still available.

 

The French designers of a cute vine-pruning, data- collecting robot named Wall-Ye V.I.N., which debuted in September, are now taking orders. Red with white trim, Wall-Ye is 20 inches tall and has two arms, four wheels and six cameras.

 

It’s solar-powered, doesn’t get tired, drunk, or go on strike, and costs 25,000 euros ($33,100). Chateau Mouton Rothschild offered its prestigious vineyards for test runs, according to Agence France Presse.

 

Wine Perfume

 

The newest wine pairing is with perfume, long a no-no combo for serious tasters. After being called out by a winemaker at Napa Valley’s Rombauer Vineyards for wearing a vanilla scent, fragrance marketer Kelly Jones set herself the task of making five perfumes, introduced this year, that she says enhance wine.

 

“I didn’t want scents to smell like wine spilled on my shirt,” Jones said in a telephone interview. “For ‘Notes of Merlot’ I picked up on the varietal’s whiffs of candied violet.”

 

Others may prefer to try out new mini-aerosol flavor-spray for the mouth, Wahh Quantum Sensations, which provides a fleeting feeling of drunkenness “without the harmful effects of alcohol.” Designer Philippe Starck and Harvard University scientist David Edwards say the purpose is to “accent life with a magic wand.”

 

2012 was also a year of strange wines we definitely don’t need, like Almond Roca cream dessert wine from Washington State, which takes chocolate-infused wines to a new, treacly level.

 

Nude Prince

 

U.K. merchant Sheldon’s Wine Cellars offers the “uncomplicated, easy-drinking” 2011 Royal Blush Rose, with a label based on nude Prince Harry photos taken at an August bare- it-all-party in Las Vegas.

 

And there are the wines of Dr. Ruth Westheimer. Labels of her Sonoma-made Vin d’Amour chardonnay, cabernet, and white zinfandel feature a portrait of the famous 84-year-old sex therapist.

 

Dr. Ruth says the obvious — that wine helps couples relax and get aroused, but too much impairs performance. Which is why she wanted her wines to have a weak 6 percent alcohol. Fifty shades of chutzpah!

 

Eroticism is also key to the just-launched G-Spirits line of vodka, single malt whisky, and rum, created by former bartenders Maximilian and Julian Goldbach in Germany. Before bottling, every single drop of booze is poured over the naked breasts of beautiful women, like Hungarian playmate of the year Alexa Varga, to give the taste “a unique erotic character.”

 

X-Rated Labels

 

According to Max Goldbach, their customers, mostly men (surprise!), range from 18 to 72. Lest you are worried about how sanitary this is, the website claims that medical personnel supervise. The labels are X-rated, which is why you’ll have to go to the website to view.

 

Maybe G-Spirits call for the nuttiest wine accessory of the year, Vinderpants. Advertised as “underpants for your wine,” the cotton and spandex bottle coverings appeal, I think, only to those with a very special sense of humor. Still, there were just two left in stock on Amazon.com when I checked right after Christmas.

 

 

——

Trio of distillery launches planned for 2013

 

Source: Herald Scotland

Tim Sharp

Jan 1st

 

BY the end of 2013, three new malt whisky distilleries will have started producing spirit, if current plans are borne out.

 

At one end of the country, Thurso’s Wolfburn distillery, which claims to be the most northerly on the Scottish mainland, is just weeks from starting production.

 

In the far south, Annandale, Scotland’s first distillery after the English Border, is awaiting delivery of stills and other equipment ahead of a summer launch.

 

Meanwhile, on the Ardnamurchan peninsula, groundwork on the distillery site has paused for the festive season but its owner, specialist bottling company Adelphi, plans to begin production before the end of 2013.

 

Between them, the distilleries will produce the equivalent of 600,000 litres of pure alcohol (lpa) a year; a mere trickle compared with the 10 million lpa Diageo’s new distillery, Roseisle, can produce.

 

However, their creation highlights confidence in the rising demand for Scotch. And with all of them focusing on single malts, it demonstrates faith in the growth of the top end of the market.

 

Wolfburn is the smallest of the trio, with plans to produce 115,000 lpa a year. It takes the name of a 19th-century distillery in the town. Although it uses the same water source, the modern-day Wolfburn has been built from scratch.

 

Production is expected to start in February, less than two years after its backers first met to discuss it.

 

Overseeing distillation will be Shane Fraser, former production manager at Glenfarclas.

 

Most output will be of unpeated whisky, and the first bottles will be sold in 2016 after it legally becomes whisky. Much more, however, will be kept for longer maturation.

 

Wolfburn’s business development manager, Daniel Smith, said: “It is not going to be another Balvenie or Glenfiddich. We think it will appeal to a niche customer.”

 

Nor will Wolfburn seek to attract tourists. “What we won’t be doing is making cups of coffee and selling tartan scarfs,” Mr Smith said.

 

However, Annandale’s owner Professor David Thomson, a native of Dumfries and long-term whisky enthusiast, said he will be encouraging visitors, to generate revenue before he can start selling his spirit and to boost tourism in the area.

 

“When it comes to entering or leaving Scotland we are the first or the last distillery,” Mr Thomson said. “This is a kind of ignored area of Scotland, but it is a very historic part of the country.”

 

Mr Thomson is building the distillery to diversify his business interests away from the MMR research firm he and his wife own.

 

Mr Thomson has rebuilt the site’s sandstone and slate buildings; and despite delays during renovation, production should start this summer, two years after work started on the site.

 

The distillery will produce both peated and unpeated whiskies, harking back to the days when smoky Lowland malts were common. The distillery will produce the equivalent of 250,000 lpa a year although Annandale has double that capacity.

 

Mr Thomson hopes his professional experience – he is a food chemist by training – means he can bring more sophisticated branding to the industry, based on the sensory profiling on which he is an expert. “I feel there is quite a lot we can do with the way single malt whiskies are sold,” he said.

 

At Ardnamurchan, the 184,000 lpa annual production is likely to start in November. Foundations will be poured next month, with the buildings finished in July and equipment arriving from September. “We are keen to produce spirit before Christmas,” said sales and marketing director Alex Bruce.

 

Adelphi, an independent bottler of whisky since the 1990s, has an established distribution network in some 25 markets. The company believes interest in single malt whiskies is rising alongside growing demand for craft gins and beers produced on a small scale.

 

Mr Bruce said: “We feel very strongly the single malt segment will continue to grow. It is far too small at the moment.”

 

Adelphi plans to hold on to its Ardnamurchan whisky stock, up to 70% of which will be peated, for at least six years before bottling.

 

The first legal distillery on the peninsula, Ardnamurchan’s planning process took longer than expected after some residents objected. But efforts have been made to root it in the community, with power coming from a biomass plant using local timber, and the draff – the spent grain – will be sold to nearby farmers.

 

The firm is also keen to attract more tourists to Ardnamurchan by offering a rainy-day destination.

 

A spokeswoman for the Scotch Whisky Association said: “There is unprecedented investment in the industry to meet growing demand, with £2 billion committed by producers over the next few years. All the signs are very positive for the future.”

 

 

——

Texas: Centennial wants to sell 13 liquor stores to Pilot Point company

 

Source: Star Telegram

By Sandra Baker

Tuesday, Jan. 01, 2013

 

Five liquor stores in Tarrant County would be sold by Centennial Beverage Group to Cheers Spirits & Liquors of Pilot Point as part of a deal submitted for approval in U.S. Bankruptcy Court.

 

A judge in Dallas is scheduled to consider the sale Friday.

 

The stores, including two in Fort Worth, would be among 13 Centennial liquor stores being sold to Cheers. The Fort Worth stores are on Alta Mere Drive and Camp Bowie Boulevard. Other area locations are in Hudson Oaks, Trophy Club and Azle, according to court filings. The list also includes stores in Addison, The Colony, Highland Village, Weatherford and Granbury and three in Dallas, on Greenville Avenue, Marsh Lane and Walton Walker Road.

 

The sale is contingent on the Texas Alcoholic Beverage Commission issuing licenses to Cheers to operate the stores, the filing said. Cheers would begin making lease payments in January on the stores, but Centennial would continue to operate them until the licenses are issued, court filings say.

 

Peter Woody, owner of Cheers Spirits & Liquors, could not be reached Monday for comment.

 

Centennial filed for Chapter 11 bankruptcy reorganization Dec. 17, saying its profits were declining in the face of increased competition from “big box” liquor sellers, groceries and other retailers.

 

Centennial entered into a letter of intent Dec. 14 with Cheers Spirits to sell the stores for $50,000 each, totaling $650,000, court records say.

 

Cheers will take over 11 leases and will lease two stores from JWV Associates, which owns them in partnership with Centennial, court filings say.

 

Dallas-based Centennial expanded in 2011 by acquiring the Fort Worth-based Majestic Liquor Store chain out of bankruptcy but scaled back last year from as many as 70 stores to 23 Centennials, Majestics and Big Daddy’s. It owes millions to creditors.

 

Cheers has stores in Aubrey, The Colony and Roanoke.

 

 

——

Tennessee: Liquor stores rebuff grocery stores’ wine proposal

 

Source: WBIR 10

By Erik Schelzig, Associated Press

Jan 1, 2013   

 

An effort to reduce opposition to supermarket wine sales is so far failing to change the minds of the liquor store owners who stand to lose the most out of the proposal.

 

Under the bill taking shape before the Legislature convenes next week, local referendums would determine if wine could be sold alongside beer in grocery and convenience stores around the state. In exchange, liquor stores could branch out to sell items, like beer, mixers, ice and snacks.

 

The measure could also end the current law that allows owners to operate only one liquor store in the state.

 

But Chip Christianson, owner of J. Barleycorn’s Wine and Spirits in Nashville, said he didn’t buy his store to start a chain. He also raises underage drinking concerns about the proposal.

 

 

——

Washington: Privatizing liquor hasn’t brought price down

 

Source: Herald.net

By Bill Sheets

Dec 31st

 

More than six months after privatization of the state’s liquor industry, the goal of lower prices has yet to materialize.

 

In fact, prices overall took a jump immediately after the changeover and have stayed near that level since.

 

The average price per liter of hard liquor after taxes statewide in October was $24.06, according to figures from the state Department of Revenue.

 

This is down slightly from the first month of privatization in June, but still more than 10 percent higher than the $21.59 at state liquor stores in October 2011.

 

“It’s gone up quite a bit,” said Trudy Brodie, of Edmonds, who manages the bar at the North City Eagles Club in Shoreline.

 

She was at Mountlake Terrace Liquor & Wine on Friday buying stock for the bar.

 

“We had to raise prices,” she said.

 

Stores larger than 10,000 square feet, along with some locations previously occupied by state liquor stores, were allowed to sell hard liquor starting in June following the passage of I-1183 in November 2011.

 

The ballot measure was designed to keep state and local governments from losing money in the transition.

 

The state’s previous spirits sales tax and liter taxes stayed in place. The state’s 51.9 percent mark-up went away, but has been replaced by fees of 10 percent on distributors and 17 percent on retailers.

 

“The private sector is adding its own markup as well,” said Brian Smith, a spokesman for the state Liquor Control Board.

 

Backers of I-1183, which passed with 59 percent of the vote, steered clear of claiming it would bring down prices, though it was mentioned as a possible by-product. Instead they touted other potential benefits.

 

“Yes on 1183 will create true competition in liquor and wine distribution and sales, strengthen liquor law enforcement, benefit Washington taxpayers and consumers and generate vitally needed new revenues for state and local services,” according to the argument for the initiative in the 2011 voters’ pamphlet.

 

The fee charged to distributors is scheduled to be cut in half in 2014, to 5 percent, which could help bring prices down, Smith said.

 

In June, the average liter price was $25.35, more than a dollar higher than October, according to state figures.

 

Some prices have gone up since then, some have dropped.

 

Some of the prices at smaller stores are higher than at large chain stores because the small retailers can’t get bulk discounts from distributors, said Leonard Daniel, who owns and operates Mountlake Terrace Liquor & Wine with his wife, Lori.

 

Also, each brand is often available from only one distributor, Leonard Daniel said. The right to distribute a brand is bought by the highest bidder.

 

“There’s no competition until you get down to this level and we’re just fighting for the crumbs,” he said.

 

The Daniels say they make up for their disadvantages with customer service and product knowledge, and by carrying a wider variety of brands and sizes than many of the bigger stores.

 

Lori Daniel managed the store on 44th Avenue W. when it was part of the state’s system. Sales have slowed since the changeover, she said.

 

“We’re very fortunate to be in the community we are,” she said. “They’ve really supported us.”

 

Brodie of the Eagles Club said she buys directly from distributors as well but goes to the Mountlake Terrace store to get items that aren’t available from distributors.

 

“They’re pretty good to me and they’re local,” she said of the Daniels.

 

 

——

Canada: Health Canada to restrict caffeine content in energy drinks

 

Source: DBR

02 January 2013

 

Canada’s national public health regulatory department Health Canada is set to restrict the amount of caffeine used in energy drinks to a maximum of 180mg from January 2013.

 

Apart from caffeine, the regulator will also restrict vitamins, amino acids and minerals content in energy drinks and other beverages.

 

Health Canada spokesman Sean Upton said, “when setting the 180 mg limit, we looked for a level that would not represent a risk, based on expected consumption patterns for these drinks.”

 

According to reports, 28 out of 96 reclassified drinks will have to be reformulated as per the new regulations.

 

All the companies will also have to provide an annual data of energy drinks consumption, sales and incidents over the next five years.

 

 

——

United Kingdom: Alcohol guidelines ‘too high’ say doctors

 

Source: Daily Telegraph

By Stephen Adams, Medical Correspondent

01 Jan 2013

 

They have been set too high and fail to take into account new evidence showing that drinking only modest amounts raises the risk of cancer and other diseases.

 

The issue is investigated as part of a three-part You & Yours documentary into Government guidelines on alcohol, diet and exercise, being aired over the next three days (starting January 2) on BBC Radio 4.

 

The current guidelines recommend men should limit themselves to “three to four units a day”, which NHS information alikens to “not much more than a pint of strong lager, beer or cider”.

 

Women should not regularly drink more than “two to three units a day”, equivalent to “no more than a standard 175ml glass of wine”.

 

New research published last year suggests consumption should be much lower – perhaps just a quarter of a pint of beer daily.

 

Dr Michael Mosley, who looked into the matter for the radio documentary, found the guidelines were based on limited data on the harms of low to moderate level drinking.

 

They were formulated in 1987 by a Royal College of Physicians working party. In 2007 Richard Smith, one of the members of the group and a former editor of the British Medical Journal, was quoted as saying they could not say what a safe limit was, because of this lack of data.

 

“Those limits were really plucked out of the air,” he said.

 

“They were not based on any firm evidence at all. It was a sort of intelligent guess by a committee.”

 

Dr Mosley said the Government had “presented these guidelines as if they are about health, but they’re really not”.

 

“They’re more about behaviour, trying to stop you going out and crashing the car, or fighting,” he told The Times.

 

New evidence suggests regularly drinking only small amounts of alcohol can raise the risk of various cancers.

 

A Harvard University study, published in the Journal of the American Medical Association in 2011, found that women who drank just four small glasses of wine a week – about five units – increased their risk of developing breast cancer by 15 per cent compared to teetotallers.

 

Another study published that year estimated alcohol caused about 13,000 cancers a year – including 6,000 of the mouth and throat, 3,000 bowel cancer cases and 2,500 of breast cancer.

 

And last May, scientists published research recommending that people should cut their consumption to just 50ml of wine a day, or quarter of a pint of beer.

 

If everyone limited their intake in this way, 4,600 lives a year would be saved, they calculated, even after accounting for about 850 extra deaths from heart disease.

 

There would be 2,600 fewer deaths from cancer and almost 3,000 less from liver cirrhosis, they found.

 

Dr Nick Sheron, a liver specialist at Southampton University, said: “The problem I have with the Government advice is that is normalises the fact that it’s OK to have a drink on a daily basis, when that’s really not the case.”

 

Dame Sally Davies, the Chief Medical Officer for England, is currently reviewing the evidence on the risks of drinking, said a Department of Health spokesman.

 

She said: “The health risks from alcohol rise as you drink more and there is some evidence that small amounts of alcohol can reduce some health risks.

 

“To look at whether the system is still helpful to people, the Chief Medical Officer is set to review the alcohol consumption guidelines.”

 

 

——

United Kingdom: New year revellers warned of dangers of counterfeit alcohol

 

Trading standards teams urge drinkers to be suspicious of ‘bargain’ bottles as cheaply distilled alcohol can pose health risks

 

Source: The Guardian

Rebecca Smithers, consumer affairs correspondent

30 December 2012      

 

Revellers tempted to see in the new year with cheap alcohol are being warned of the dangers of buying toxic fake vodka, which has the potential to cause blindness and even death.

 

Council trading standards teams across the UK are urging shoppers not to buy or consume counterfeit drinks.

 

Tests on bottles seized by trading standards officers have found dangerously high levels of methanol – a key ingredient in anti-freeze – among other harmful industrial solvents. Consuming methanol can lead to blindness, and in one case earlier this year was linked to the death of a man in Worthing, West Sussex, who drank a bottle of vodka he had brought back from Poland. Tests subsequently found the drink contained 40% methanol.

 

In the Czech Republic in September, 26 people died as a result of drinking counterfeit vodka and rum laced with methanol. In July 2011, five men died in an explosion at an industrial unit in Boston, Lincolnshire, where illegal alcohol was being distilled.

 

The seasonal crackdown is organised by the Local Government Association (LGA), which is advising shoppers to watch out for telltale signs that bottles are not legitimate. These include unfamiliar brand names, drinks containing sediment, wonky labels, poor quality print, spelling mistakes, and bottles on display filled to different levels.

 

Cllr Paul Bettison, the LGA’s regulation spokesman, said: “We’ve now seen instances where people have been killed by drinking fake vodka. Everyone wants a bargain at this time of year, but by consuming fake alcohol people may be taking their life into their hands. These drinks are often made by organised gangs and may contain all sorts of toxic and dangerous substances.”

 

Bettison said that if an offer seems too good to be true, then it probably is. “Anyone suspicious about a supplier or who thinks they may have bought a bottle of alcohol which may not be legitimate should contact their local council or Consumer Direct as a matter of urgency,” he said.

 

The LGA gave examples of regional crackdowns across the UK. In Staffordshire, 21 traders have been prosecuted in the last year after the council seized about 1,800 bottles of fake alcohol. Many of the products seized were bottles of counterfeit vodka that contained high levels of methanol, which can cause vomiting, dizziness, blurred vision and in extreme cases blindness. One resident who drank fake alcohol was told by his GP that he risked losing his sight at any point in six months after drinking counterfeit alcohol.

 

West Sussex trading standards has highlighted the potentially fatal consequences of buying cheap spirits while abroad. Its warning follows the death of a man living in Worthing from methanol poisoning, which has been linked to a Polish bottle of vodka. A laboratory analysis showed it contained 40% methanol.

 

And Essex county council is warning that bottles of counterfeit spirits, marked up as Smirnoff vodka, are in circulation in the county. Trading standards officers are urging businesses not to buy from the ‘man in a van’ who may call at their premises offering suspiciously cheap alcohol, but to stick to trusted and traceable wholesalers.

 

Earlier this year Wigan council seized several bottles of counterfeit Glen’s vodka that contained the industrial chemical isopropyl, whose side effects could include dizziness, vomiting, anaesthesia and could even put someone in a coma.