Campari Buys Courvoisier from Beam Suntory for $1.2 Billion

Italy’s Campari (CPRI.MI) on Thursday agreed to buy historic French cognac house Courvoisier from Beam Suntory for $1.2 billion, marking a big push into brandy with Campari’s biggest acquisition on record.

The purchase of a top four cognac brandy is the crowning achievement for Chief Executive Bob Kunze-Concewitz, who is due to leave next year after steering Campari through a long list of deals, including the purchase of Grand Marnier for 490 million euros in 2016.

“Christmas came early for Campari this year,” Kunze-Concewitz told analysts.

The deal will strengthen Campari’s presence in the United States, which accounts for 55% of Courvoisier’s sales, and offers transformational potential in the Asia Pacific region – also a large cognac market, led by China.

The deal is expected to boost Campari’s net sales by around 9%, Kunze-Concewitz told analysts, adding that it was also a rare opportunity to expand the company’s premium spirits portfolio and its production and bottling capacity in France.
“Clearly this is a brand which fits into our playbook, and we expect to relaunch and grow it substantially as we’ve done with some of the other brands,” Kunze-Concewitz said. “With our marketing model we can get this brand to perform at a really different pace.”

Sales at Courvoisier, founded in 1828, declined 33% in the 10 months to Oct. 31 versus a year earlier, Campari said. It said the reasons were slowing U.S. sales after post-COVID peaks and the process of de-stocking by wholesalers that had filled their warehouses excessively.

The deal, expected to close in 2024, envisages an additional earn-out of up to $120 million, to be payable in 2029, Campari said in a statement, adding that it would fund the acquisition via a mix of debt, cash and equity or equity-like instruments.
It has secured from a group of banks a fully committed 1.2-billion-euro bridge loan with a duration of up to 24 months and will monitor markets for possible issuance.

Source: Reuters

The 10 most-consumed alcoholic drinks have been identified

Insider Monkey’s list of the 10 most-consumed alcoholic drinks have been identified in a new list that outlines which tipples we favour most.

The analysts at the investment advisors Insider Monkey drew from their deeper dive report of the ‘20 Most Consumed Alcohols in the World’. Here is a list of the top 10, for your review.

1. Beer
Global market size in 2022: US$793.74 billion

Beer is the most consumed alcohol in the world. In fact, after water and tea, beer is the most popular drink in the world. According to reports, in the 2022 brewing year, global beer production ended up increasing slightly year-on-year by 1.3% to 1.89 billion hectolitres. However, the market is yet to return to its pre-pandemic levels when production peaked at 1.91 billion hectolitres in 2019. The category has also evolved with consumer tastes as brewers look to satisfy the thirst of their audience. Plus, the overall demand for premium and low-calorie beers, the rising popularity of craft beer, and the continued expansion of distribution networks in emerging countries are all expected to continue driving growth in the global beer sector over the next few years.

2. Wine
Global market size in 2022: US$441.6 billion

The rising demand for premium and luxury wines has been reported alongside the growing popularity of wine tourism which have become key factors driving growth. According to the analysts, global wine consumption in 2022 was estimated to be at 232 million hectolitres, marking a decrease of 1% compared to the previous year. Year-on-year, wine consumption around the world has decreased at a regular rate and yet this can be mainly attributed to the decline in China’s consumption, which has lost an average 2 million hectolitres per year since 2018.

3. Liqueurs
Global market size in 2022: US$128.9 billion

Liqueurs, which are essentially distilled spirits that are sweetened with sugar or syrup, and often also contain fruit, herbs, and oils, can be sweet or bitter depending on the flavours used.

4. Baijiu
Global market size in 2022: US$95.21 billion

Baiju plays a prominent role in China’s drinking culture and has done so ever since the Ming Dynasty. It is most distilled from sorghum, although other grains – including rice, wheat, corn, and millet – are also available in blends throughout the country. Last year, consumers in China consumed US$91 billion worth of baijiu, yet it remains less well-known outside the nation.

5. Whisky
Global market size in 2022: US$64 billion

As millennials are increasingly beginning to experiment with different drinks and assisting in the rise of ‘cocktail culture’, the use of whisky as a premium ingredient has increased in bars. 2022 was hinted to be a great year for Scotch whisky and exports of Scotland’s native spirit hit US$7.5 billion last year, the highest figures ever. Whisky exports by volume also rose, with the number of 700ml bottles shipped overseas up by 21%, to 1.67 billion.

6. Vodka
Global market size in 2022: US$25.98 billion

Vodka continues to be the most consumed spirit in the US and has been since 1970. Around 78.1 million cases of the spirit were sold in America in 2021 and by 2022, 28.1 million 9L cases were sold globally.

7. Cider
Global market size in 2022: US$17.9 billion

Cider has risen in popularity significantly over the last decade and can also flex with the seasons. In the UK, Insider Monkey outlines how cider continues to be a popular alcoholic drinks category with an off-trade value sales growth in the UK of 5.2% over the past year. Some 47.8% of all British households now regularly buy cider – up from 45.5% last year.

8. Rum
Global market size in 2022: US$17.4 billion

While rum sales are still dominated by major producers, many consumer preferences are said to be moving away from value options and towards an appreciation for craft and aged rums instead. Made from fermented sugar cane juice, rum also provides a key function in cocktail culture.

9. Gin
Global market size in 2022: US$15.3 billion

There are, reportedly, three main reasons for gin’s continued popularity – taste, versatility, and the variety now available. The UK is the largest exporter of gin in the world and, according to His Majesty’s Revenue and Customs (HMRC) data, gin exports from Britain hit US$879 million last year, up from US$651 million in 2021.

10. Tequila
Global market size in 2022: US$14.7 billion

Tequila’s popularity has been on the rise for years, and in 2021 it surpassed whisky in retail sales. The analysts found that the growth in popularity of Tequila can primarily be attributed to several factors, including the expansion of the premium spirits sector as well as the introduction of new flavours, and a greater social media presence.

Cognac Sales Up 31% In 2021

Cognac’s biggest market, the US, saw the liquid’s sales climb by 11.1% in 2021 Cognac sales saw a 31% rise in value last year, with volumes of the spirit increasing by 16.2% to 223.2 million bottles, the BNIC has revealed.

Christophe Veral, president of the BNIC, noted that demand for Cognac “has never been greater in our markets than this year.” He said despite weather uncertainties, last year’s harvest allowed a “continuation” of growth.

Despite the health and geopolitical uncertainties, this growth reflected recovery for Cognac, as well as new consumption habits, the BNIC said in a statement.

Cognac exports to the US, the largest market for the category, climbed by 11.1% with 115 million bottles shipped in last year.

Cognac’s second biggest market, China, saw a 55.8% boost in sales with 34m bottles shipped.

Meanwhile, sales in Europe jumped by 8.1% to reach 37.1m bottles in 2021. Within this region, France, which is the fifth largest market for Cognac, saw a 23.4% rise in sales as 6.1m bottles were sold.

In a statement released on Monday 17 January, the BNIC commented that with the development of mixology, Cognac is attracting new consumers who are searching for quality products.

The report also cited South Africa and Nigeria as new markets.

The BNIC also said that the outlook for the category was ‘positive’ for the coming months in all regions.

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FIVE LAWS IMPACTING THE DRINKS WORLD IN 2021

Five Laws Impacting the Drinks World in 2021

http://www.spiritedbiz.com/five-laws-impacting-the-drinks-world-in-2021/

#wine #winenews #cocktails #wineeducation #hospitality #beer #Spirits #wineproduction #industrynews #cannabisdrinks #winelovers #wineeconomics #winebusiness #businessofwine #wineexporting  #winewinewine

Help Us Give Back This Holiday Season with Les Dames d’Escoffier Ontario 2020 “Festive Gift Basket” Fundraiser-Auction

Les Dames d’Escoffier Ontario 2020 “Festive Gift Basket” Fundraiser-Auction  @ 32 Auctions

We have 23 “Holiday Gift Baskets” to be auctioned off !!

Auction dates:
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Items have been donated by members, partners, and Women in Wine Talks participants.

Donors

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Donna Lee-Rosen

Jenny Ratcliffe Wright

Heather Zordel

Shari Mogk Edwards

Doris Miculan Bradley

Anonymous

Les Dames d’Escoffier Ontario is a not-for-profit corporation and an affiliate chapter of Les Dames d’Escoffier International.

We are part of a philanthropic organization of women leaders in the multifaceted fields of gastronomy, fine beverage and hospitality. Our by-invitation membership is composed of over 2,400 members in 43 chapters including: United States, Canada, the United Kingdom, France and Mexico.  We create a supportive culture in our communities by sharing knowledge, supporting members, and providing leadership, educational opportunities and philanthropic events for the community-at-large.

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Thank you for your support – It’s time for Holiday shopping!

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