Thursday, August 25, 2011

Beam Global Spirits & Wine, Inc. Appoints Debora Boyda as General Manager of the Mixables Category Business Team

(by Shanken News Daily) Beam Global Spirits & Wine, Inc. has appointed Debora Boyda as general manager of the Mixables Category Business Team, which includes the company’s vodka, rum, Tequila and premix cocktail business. She succeeds and will report to Pryce Greenow, who has been promoted to vice president, group general manager at Beam. Before joining Beam, Boyda served as co-founder and president of Interplay Ideas, a Chicago-based strategic innovation consultancy. Previously, she served as vice president of marketing at Miller Brewing Co., and prior to that, spent nearly 20 years in key positions at ad agencies such as Ogilvy & Mather and Leo Burnett Worldwide, Inc. Beam’s Mixables division is led by Sauza Tequila and Cruzan rum, while the recently acquired Skinnygirl cocktail line continues to enjoy rapid growth.

Diageo Rides Premium Progress To 3% U.S. Sales Growth For FY

(by Shanken News Daily) Despite continuing economic headwinds, Diageo rode improved operating margin driven by cost cuts and a marketing push behind its key brands to solid sales growth in the U.S. market in its fiscal full year, ended June 30. U.S. net spirits sales for the global drinks giant came in up 4% on an organic basis, led by a strong performance at the premium end by brands like Cîroc, Crown Royal Black, Buchanan’s and the silver and super-premium variants of Jose Cuervo.

Diageo’s U.S. spirits volume held steady over period, as Smirnoff, Johnnie Walker, Captain Morgan, Ketel One and Tanqueray were all either flat or down across the group’s North American region, resulting in a loss of share in vodka and rum. But those results were offset by torrid growth for Cîroc, which more than doubled in size, and Buchanan’s, which grew 37% by volume. Guinness’s 3% volume gain drove a 1% rise in Diageo’s North American beer volume overall, while its wine (-4%) and RTD (-3%) businesses struggled. (Diageo has moved to restructure its U.S. wine business of late, most recently selling Edna Valley Vineyard to E&J Gallo in June.) Total organic net sales growth for Diageo NA came in up 3% to £3.3 billion ($4.7b).

“While overall consumer confidence remains subdued we have seen some recovery and, importantly for our business, this recovery has been stronger in the premium, and especially the super-premium, segments,” said Ivan Menezes, president, Diageo North America. Menezes credited a 7% rise in marketing spend, mostly behind key brands like Cîroc, Ketel One, Smirnoff and the Cuervo silver variants with buttressing sales.

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With DonQ On The Rise, Serrallés USA Eyes Wider Portfolio

(by Shanken News Daily) Up to now, Puerto Rican rum maker Destilería Serrallés has derived the lion’s share of its business from its contract production of Diageo’s Captain Morgan. But with the Captain’s production being moved entirely to the U.S. Virgin Islands by next year, Serrallés is set to lose around 70% of its volume. Accordingly, the company is now shifting gears and investing to drive sales of its own rum brand, DonQ, in the U.S. market through its Serrallés USA unit. With that effort proceeding, Serrallés is also now eyeing partnerships and new brand introductions to broaden its U.S. portfolio.
A well-known brand in its domestic market of Puerto Rico, the DonQ rum range has made impressive progress since entering the U.S. market just three years ago. The brand rose 61% by volume in each of the past two years to reach 190,000 cases in 2010, according to Impact Databank. The DonQ line-up includes Cristal, Gold and Anejo offerings ($12.99-$15.99 a 750-ml.), an ultra-premium Gran Anejo ($59.99) and a range of flavored rums ($13.99) featuring Limón, Coco, Mojito and the newly introduced Pasión (passion fruit).
For 2011, Serrallés expects DonQ to hit more than 210,000 cases, and has set a longer-term goal of reaching 1 million cases, according to John Eason, vice president, national sales manager for Serrallés USA. “The time is really ripe for a firm number-two player in the silver popular rum category,” he says, noting the relative lack of meaningful competition in the segment compared with other spirits categories. “In rum, and silver rum in particular, it’s always been Bacardi. We definitely think there’s an opportunity to make a challenge and take some share in the category.”

Click HERE for the complete story. Please visit us at The Rum Shop for all your rum-related needs, including purchasing rum on-line, rum recipes, rum tasting notes, rum event information and rum consulting services. "Got Rum?" Magazine is back in circulation, get your free copy HERE.

Thursday, August 18, 2011

Castle Brands Inc. Announces a 21% Increase in Net Sales

(by Shanken News Daily) New York-based Castle Brands Inc. has announced a 21% increase in net sales to $7.4 million for its fiscal 2012 first quarter, ended June 30. Bolstered by Gosling’s Rum, Pallini Limoncello and Boru vodka’s U.S. growth, group volume rose 19% to more than 70,000 cases. Net losses for the quarter, however, grew 21.7% to just under $2.1 million, as operating losses fell slightly, from $1.7 million to $1.3 million. Castle Brands president and CEO Richard Lampden said the company would continue to streamline operations and reduce overhead and distribution costs, with the “full benefits of these cost savings efforts to be recognized in the current fiscal year.”

Thursday, August 11, 2011

Diageo Launching Campaign for Its Captain Morgan Brand

(by Shanken News Daily) Diageo is launching a new multi-media promotional campaign for its Captain Morgan brand starting this month and ending in October. “The Captain’s Island” campaign will run mostly through the brand’s Facebook page, giving fans a chance to win a trip to a Caribbean island and $15,000. Actress Mena Suvari will help promote the campaign, which will also include television and Internet ads across 13 different markets—the U.S., Canada, U.K., Ireland, Germany, Austria, Czech Republic, Denmark, Russia, Argentina, Mexico, Peru and Costa Rica. This campaign follows on the heels of the “To Life, Love and Loot” ad effort announced by the brand in May, featuring commercials filmed by movie director Tom Hooper.

Thursday, August 04, 2011

Southern Wine & Spirits Appoints Kirt Clemens As Senior Vice-President For Its North American Spirits & Wine Brokerage Division (NASW)

(by Shanken News Daily) Southern Wine & Spirits has appointed Kirt Clemens svp, eastern region, for its North American Spirits & Wine Brokerage division (NASW), effective August 1. Clemens was previously vice president-general sales manager for Southern’s Mid-Atlantic division, based in Raleigh, a position he held for five years. In his new role he’ll report to NASW evp-general manager Robert Swartz. NASW is the Southern Wine & Spirits division handling Diageo and Moët Hennessy brands across the 18 control states.

After Record Second Quarter, Beam Says It Will Step Up Brand Investment

(by Shanken News Daily) Beam Global Spirits & Wine enjoyed record sales of $703 million, up 11%, in the three months through June, and says it intends to continue aggressively upping its spend behind key brands in the second half of 2011. For the first half of the year, Beam’s net sales increased by 14% to $1.38 billion, while operating income before charges rose 12% to $299 million.
“Our investments in innovation and brand building are paying off, and we’re further stepping up our brand investment as a result,” said Bruce Carbonari, chairman and CEO of Beam parent Fortune Brands. “Jim Beam accelerated its momentum in the quarter, Maker’s Mark continued its double-digit growth, and Skinnygirl (acquired in March) has become the fastest-growing spirits brand in America.” Carbonari said profits are expected to lag behind sales growth in the third quarter as Beam’s promotional spend continues to rise by double-digits, before “normalizing to a relatively constant run rate as a percentage of sales” in the fourth quarter.

Click HERE for the complete story. Please visit us at The Rum Shop for all your rum-related needs, including purchasing rum on-line, rum recipes, rum tasting notes, rum event information and rum consulting services. "Got Rum?" Magazine is back in circulation, get your free copy HERE.

Pernod Ricard Suffers Another Setback in its Duel with Bacardi Ltd. Over the U.S. Trademark to Havana Club Rum

(by Shanken News Daily) Pernod Ricard has suffered another setback in its duel with Bacardi Ltd. over the U.S. trademark to Havana Club rum. The U.S. Court of Appeals for the Third Circuit today upheld a 2010 decision by a U.S. District Court in Delaware that found no significant risk of consumer confusion as to whether Bacardi’s Puerto Rico-produced Havana Club brand—sold in the U.S. in small quantities—is made in Cuba. “No reasonable interpretation of the label as a whole could lead to the conclusion that it is false or misleading,” said U.S. Circuit Judge Kent Jordan. Pernod says it will now “consider its options” in the ongoing trademark battle. Pernod general counsel Ian FitzSimons said, “It’s important to note that this decision does not grant any right in the ‘Havana Club’ trademark to Bacardi. We’re determined to continue to fight for fair competition in the United States market where ownership of the ‘Havana Club’ trademark dates back to 1976.”

Wednesday, August 03, 2011

Pernod Ricard names Jérôme Cottin-Bizonne managing director of Havana Club International

(by Shanken News Daily) Pernod Ricard has named Jérôme Cottin-Bizonne managing director of Havana Club International, effective December 1. Currently serving as Pernod’s audit and business development director, Cottin-Bizonne will replace Marc Beuve-Mery and report directly to Thierry Billot, Pernod’s managing director, brands. Beuve-Mery, a longtime Pernod executive, will take up a new role within the company, to be announced later.