DECEMBER TRADE NEWS
In 2020 US craft spirits volume grew by 8%, compared to the 5% volume growth of the overall spirits category. The International Wine and Spirits Record expects craft spirits growth to continue. The IWSR forecasts craft spirits to have an increase of compound annual growth rate (CAGR) of 21% from 2020-2025, while US non-craft spirits have a forecasted 4% CAGR for the same period.
Anheuser-Busch purchased Hoop Tea, a Maryland based company known for its tea-infused malt beverages and seltzers. Hoop Tea founder and CEO Danny Robinson, who has joined AB, will continue to lead the company. The brand will join AB’s Beyond Beer portfolio. Terms of the deal were not announced.
Following the nationwide shortage on aluminum cans in 2020 and 2021, Ball Corporation, the nation’s largest maker of cans, is raising their minimum orders starting January 1, 2022. Previous order minimums were 204,000 cans – enough to fit on a semi-truck. The new minimum has been increased to 1,020,000 cans, 5X the previous minimum.
With European countries being especially hard hit, 2021 is expected to be the worst year for wine producing countries worldwide since 2017. The OIV (International Organisation of Vine and Wine) released their preliminary numbers for the year which is an estimated 250 million hectoliters (Mhl) of global wine production, a 4% drop from 2020. The 20-year average has been 269 Mhl. The “big three” wine producing countries – Italy, Spain and France all saw declines with France dropping from second place to third. Production in the US grew 6% to 24.1 Mhl.
Treasury Wine Estates is buying the Frank Family Vineyards in Napa Valley, for $315 million. The purchase includes the historic winery, brand, and vineyard holdings. Rich and Leslie Frank, who founded the winery in 1992 will maintain ownership of the Winston Hill Vineyard in Rutherford and the Lewis Vineyard in Napa. Both vineyards will continue to source grapes for the Frank Family reserve tier following the sale.
La Marca prosecco brand has achieved an Equalitas Sustainability Certification based on environmental, social, and economic factors. The accreditation considers all phases of production and is designed to foster continued improvement. The wide-ranging accreditation was established in 2015 by Federdoc and Unione Italiana Vini.
Despite world wine production on the decline for the second consecutive year, America’s wine industry continues to thrive with an increase in production of 6% over 2020. The number of bonded wineries continues to grow as well as the US now has more than 16,000, with 1,298 new wineries opening in 2021 alone! if you visited two per day, it would take you almost two years to visit all the wineries in Ohio and Kentucky!