Impact Databank Projects 2.5% Growth For U.S. Spirits Market

The U.S. spirits market is on pace to advance by 2.5% to 221 million nine-liter cases this year, according to Impact Databank projections, following a five-year period in which the market averaged 2.4% annual growth. The U.S. spirits category has enjoyed an unprecedented upswing, achieving growth for 20 consecutive years from 1995 to 2015.

Both white spirits and whisk(e)y are on pace for solid gains this year, Impact Databank projects. Whisk(e)y is expected to advance by nearly 3% to just under 60 million cases, due largely to the ongoing expansion of the flavored segment. Meanwhile, white spirits are projected to increase by 2.4% to more than 122 million cases.

Exclusive: Hess Family Offloads South Africa’s Glen Carlou

Hess Family Wine Estates has agreed to sell its Glen Carlou wine brand from South Africa to the Pactolus Consortium, led by investor and tech entrepreneur Wayne Pitout. Hess Family CEO Timothy Persson said the divestiture is part of Hess’s effort to streamline its portfolio and focus on key growth brands in the U.S. market.

Known for premium and super-premium wines from South Africa’s Western Cape, especially Chardonnay from the Paarl region, Glen Carlou was acquired in full by Hess in 2003. No major changes are planned for the winery, which currently sells around 5,000 cases in the U.S. Hess will continue to handle the brand stateside in the near-term.

Beam Suntory Acquires Controlling Stake In U.K. Craft Player Sipsmith

Beam Suntory has taken a controlling interest in U.K. craft spirits producer Sipsmith for an undisclosed sum. The deal comes just days after reports surfaced that the London-based Sipsmith was in talks with potential bidders.

Under terms of the deal, Beam Suntory will gain global distribution of the Sipsmith portfolio, which along with its flagship gins also includes vodka offerings. The privately-owned Sipsmith, which does the majority of its business in the U.K., will continue to be led by Sam Galsworthy and Fairfax Hall, who co-founded the company in 2009.

Wine Spectator: Premier Cru Owner Sentenced To Six And A Half Years Behind Bars For Wine Ponzi Scheme

John Fox, the wine store proprietor who admitted to conducting a Ponzi scheme for two decades, was sentenced in federal court Wednesday to six and a half years in prison. Fox, 66, owner of the bankrupt Premier Cru, stood in a San Francisco court room, shackled at the ankles and wearing dark red prison garb inscribed Alameda County jail on the back, as Federal Judge James Donato pronounced the sentence.

“I wish I could go back in time, and undo all the damage I caused, but I know I can’t,” Fox told the court. “I want to serve my time in prison, and when I get out, I hope to pay back everyone.” As part of his plea agreement with the Justice Department, Fox has agreed to make restitution of $45 million to at least 9,000 customers who never received the wines they paid for. Wine Spectator has the full story. 

Pabst Brewing Continues To Expand Portfolio, Partnering With Michigan’s New Holland

Known for its flagship Pabst Blue Ribbon, Pabst Brewing continues to diversify its lineup with craft beers, imports and hard sodas. Yesterday, Pabst announced a new partnership through which it will nationally distribute the portfolio of Michigan’s New Holland Brewing. New Holland’s volume grew 15% to just under 500,000 (2.25-gallon) cases last year, according to Impact Databank.

Effective in the first quarter of 2017, the long-term agreement will see Pabst expand New Holland’s core Dragon’s Milk Bourbon Barrel Stout. New Holland’s other brews include Ichabod Pumpkin Ale, The Poet Oatmeal Stout, Mad Hatter IPA and Hoptronix Double IPA.

For Pabst, which recently named beer industry veteran Simon Thorpe as CEO, the New Holland deal continues a diversification drive that has seen it foray into the craft and import segments, as well as ciders and hard sodas. Earlier this month, Pabst agreed to become the U.S. importer for Mexican brewer Cerveza Minerva, and in August it became the national distributor for Montana’s Dog Tag Brewing. Pabst also added a distribution deal with Vermont Hard Cider this past March, including an option to acquire the cider producer from Ireland’s C&C Group. Additionally, Pabst distributes Small Town Brewery’s range of Not Your Father’s hard sodas. In the year-to-date through November 27, Pabst Brewing Co.’s total volumes were down 0.9% in IRI channels.

News Briefs:

•Whisky Advocate has named Glenrothes Vintage Reserve as its Speyside Single Malt of the Year. Glenrothes Vintage Reserve is 40% abv and retails at $55 a bottle. Whisky Advocate is announcing its annual award winners from across 11 different whisky segments one day at a time on its blog through December 19. The awards will culminate with the naming of a Lifetime Achievement honoree on December 20 and the Distiller of the Year announcement on December 21.

•Timo Sutinen has been appointed president of New Jersey-based Niche Import Co., a subsidiary of Dutch group Marussia Beverages. Sutinen was previously vice president, marketing at Imperial Brands (now Marie Brizard Wine and Spirits Americas). Niche Import’s brands include Bärenjäger liqueur and Barr an Uisce Irish whiskies among others.

Craft Brewing and Distilling News:

•Craft Brew Alliance has taken a 24.5% stake in Miami’s Wynwood Brewing. Wynwood will have access to CBA’s production capabilities and sales and marketing support, allowing the brewer to better meet demand in its domestic Florida market. Wynwood Brewing, which operates a 15-barrel brew house and tap room, is known for its core La Rubia Blonde Ale, Wynwood IPA, Magic City Pale Ale and Pops Porter labels. CBA also has partnerships with North Carolina’s Appalachian Mountain Brewery and Massachusetts-based Cisco Brewers. CBA’s portfolio also includes Redhook, Widmer Brothers, Kona, Omission Beer and Square Mile Cider.

•Chandler, Arizona-based SanTan Brewing is launching its MoonJuice Galactic IPA and MoonJuice Galactic Grapefruit IPA in 24-ounce cans for the first time. Intended to grow the brewer’s presence at convenience stores and sports venues, the new larger-format cans ($3-$4 each) will be sold year-round across Arizona, available at BevMo, Total Wine and Sprouts, among other retail outlets. In addition to its popular MoonJuice duo, SanTan’s year-round lineup includes the Devil’s Ale, HopShock IPA, Mr. Pineapple, HefeWeizen, Epicenter Amber and SunSpot Gold labels, among others.

Recently in the News:

• Empire-Breakthru Battle Heats Up As Retailers Reveal Details Of Alleged Smuggling Scheme
• Cigar Aficionado To Name Cigar Of The Year This Morning
• Diageo Looks To Update Single Malt Marketing For A New Generation