Industry news
10 May | Deal - Spirits
Campari Group announced the immediate acquisition of French flavoured liqueur brand Picon from Diageo for a sum in the region of EUR119m (US$125m).
The deal sees the bittersweet orange aperitif brand join the Campari portfolio as the group looks to strengthen its position in the French market. Around 80% of Picon’s EUR21.5m (US$22.65m) sales in the 12 months to the end of June were in the brand’s domestic market.
As part of the terms of the transaction, Diageo has agreed a two-year supply agreement with Campari to continue to produce the Picon portfolio, which comprises Amer Picon Club and Amer Picon Bière variants.
The move is the latest in a series of acquisitions for Campari in the French market, having added Champagne Lallier and the Trois Rivières and La Mauny rum brands to its stable in recent years.
6 May | Hard Seltzer
Anheuser-Busch InBev boss allays fears over US hard seltzer slowdown
Anheuser-Busch InBev’s CEO Michel Doukeris responded to concerns over the state of the US hard seltzer category, blaming the segment’s slowdown on the rise of ready-to-drink cocktails and seasonal fluctuations in demand.
Speaking after the brewer reported double-digit growth in its first financial results of 2022, Doukeris dismissed fears that declining demand for hard seltzers could affect the group’s performance, pointing to its innovation in the wider ‘Beyond Beer’ category. He added that Q1 was traditionally a challenging time for this segment, predicting sales would pick up into the summer months.
“Seltzer is part of this Beyond Beer space and is one of the manifestations of how consumers interact in this ready-to-drink space for their needs,” he said. “The growth of seltzers was accelerated during the pandemic based on [it being] at the right moment the hot new kid on the block.
“What is growing very fast is the ready-to-drink cocktails, no longer the seltzer.”
5 May | Deal - Soft Drinks
Russian watchdog approves sale of PepsiCo’s Wimm-Bill-Dann Beverages
The Russian competition watchdog approved an application by a domestic cheesemaker to buy PepsiCo subsidy Wimm-Bill-Dann Beverages.
The Federal Antimonopoly Service (FAS) said it did not believe that the acquisition of the Moscow headquartered company by Russian cheese maker Multipro would restrict market competition. The cheese maker filed for consent to acquire ownership of Wimm-Bill-Dann Beverages – which produces fruit juices and other soft drinks including the J7 Juice brand – in February.
“The Federal Antimonopoly Service (FAS) has allowed the Russian cheese maker Multipro to buy Wimm-Bill-Dann Beverages, owned by PepsiCo,” said the FAS in a statement. “The acquisition of Wimm-Bill-Dann Beverages will not lead to a restriction of competition in the food market.”
9 May | CRAFT Beer
Kelham Island Brewery becomes fourth UK brewer to close in a month
Kelham Island Brewery became the latest casualty in the UK craft beer category, joining Beatnik Republic, Fallen Brewing and Exe Valley in announcing the cessation of its brewing operations.
The Sheffield brewer – best known for its award-winning flagship Pale Rider ale – confirmed its closure at the start of May. No explicit reason for the move was given, although the news comes amid a backdrop of high energy prices and increasing costs across the brewing supply chain.
“It is with deep sadness that we are having to announce that we have brewed our final batch of Pale Rider and the brewery will shortly be closing,” Kelham Island said in a statement on its website. “We would like to thank everybody who supported us over the last 32 years – especially our staff and customers.”
4 May | Rules & Regulations - Spirits
Standardise US single malt, whiskey-led coalition pleads
A coalition of nearly 100 American single malt whiskey producers urged the country’s Tax & Trade Bureau (TTB) to establish a standard identity for the segment.
In a letter sent by the Distilled Spirits Council of the United States (DISCUS) and the American Single Malt Whiskey Commission (ASMWC), the producers warned of a “critical moment” for the category, with more distillers in the country using the term despite the lack of formal rules governing its use. The coalition argues that a clear definition of US single malt whiskey will benefit both consumers and the wider American whiskey category.
“This new standard will establish trust in the category, clarify label declarations and equip consumers with the necessary information to make informed purchasing decisions,” the coalition said. “The formal establishment of this category would also signal to the world that not only do we believe in and support our own distilleries, but we also recognise that American single malt whiskey is as unique as other American staples, such as Bourbon, and deserves to be similarly defined and protected.”
27 April | Alcoholic Soft Drinks
“Too early” to call Hard Mtn Dew launch a success – PepsiCo CEO
The head of PepsiCo offered insight into the initial launch of its Hard Mtn Dew extension, two months after the alcoholic version of the energy drinks brand was released by The Boston Beer Co.
According to CEO Ramon Laguarta, the brand licensing agreement with Boston Beer is providing “good learnings” for the CSD giant, but did not provide sales data for the line. Under the terms of the agreement, Hard Mtn Dew is produced by Boston Beer, while PepsiCo is responsible for selling, distributing and merchandising the product.
“We’re testing and learning at a fast speed,” he said. “The Boston Beer Co is learning how to market and improve the products … and we’re also learning about how to distribute and sell low-alcohol beverages, which obviously have a lot of restrictions at the state and even municipality level.
“Mountain Dew is a big brand, and it [Hard Mtn Dew] is generating a lot of excitement,” he continued. “There’s a lot of initial trial. As always in these circumstances, we have to wait and see where the business stabilises … . It’s still very early in the process, but we’ve had a pretty good response from the consumer.”
Brand owner results
Monster Beverage Corp reports record quarterly sales, plans autumn price hike
Monster Beverage Corp kicked off 2022 with a bumper first quarter showing, reporting record sales of US$1.51bn in the three months to the end of March. The energy drinks company, which this February formally completed the US$330m acquisition of the Canarchy Craft Brewery Collective,posted strong sales across all of its reporting segments, leading to an overall sales jump of 22.1% on the period 12 months prior. The increase makes Q1 2022 Monster’s best quarterly showing to date, topping the US$1.46bn reported in Q2 last year.
European on-premise recovery and “high margin” aperitifs boost Campari Group sales in Q1 2022
Campari Group reaped the rewards of a strong on-premise recovery in Europe in the first three months of this year, with sales rising by almost 30%. The Aperol brand owner announced a 29.4% year-on-year increase in its top line from the three months to the end of March. The strong performance comes after the group reported a near-25% leap in full-year sales back in February.
Anheuser-Busch InBev keeps momentum with double-digit quarterly sales growth
Price hikes and consumers trading up helped Anheuser-Busch InBev to a respectable rate of growth in its first quarter for 2022, with the group’s top-line nearly matching last quarter’s 12.1% rise, despite a COVID-19 resurgence in many regions. The group posted sales of US$13.23bn in the first three months of the year, an 11.1% increase on the corresponding period a year ago. All reporting regions for the Budweiser-brand owner showed revenue growth, with the exception of its ‘global export & holding companies’, which fell by 10%.
Sales peak for Pernod Ricard in fiscal third quarter, as growth rate expected to soften
The first three months of calendar-2022 delivered another set of healthy numbers for Pernod Ricard, although the current quarter is expected to ease off. Building on the 17% sales increase in the first half of fiscal-2022, the group reported a 20% year-on-year lift in sales from the three months to the end of March. Subsequently, for the first nine months of the financial year, Pernod’s top line was up 18%.
Strong start to 2022 for The Coca-Cola Co
The Coca-Cola Co carried its mid-to-high-teens sales growth from last year into the first quarter of 2022. Following on from February’s announcement of a 16% increase in sales during 2021, the group reported an 18% top-line lift from the three months to the end of March. All reporting regions boasted positive showings in the quarter, although Coca-Cola admitted the prior-year period saw pandemic-related restrictions impact on sales.
Heineken starts 2022 with 25% sales leap as on-premise returns
A partial European on-premise recovery and strengthening premiumisation across all regions helped Heineken to an increase in sales of nearly a quarter in the opening three months of this year. Twelve months after reporting on a gloomy Q1 2021, with beer volumes flat globally and slumping 10% in Europe, the group delivered a 24.9% rise in three-month sales compared to the same period last year. The top-line increase puts Heineken in a strong position to build on 2021’s full-year results when 12-month sales were up just over 12% on 2020.
Cuervo shines in first quarter but RTD dip bodes ill for premixes
This year picked up where 2021 left off for Cuervo, with the group reporting a jump in first-quarter sales of over 25%. Almost three months after posting a 22.4% top-line lift from the three months to the end of December, the Jose Cuervo brand owner set the scene for 2022 with a healthy Q1. Year-on-year sales were up 26.5%, thanks to what the company described as the success of its “premiumisation strategy”.
Brand Owner Results
Monster Beverage Corp reports record quarterly sales, plans autumn price hike
Monster Beverage Corp kicked off 2022 with a bumper first quarter showing, reporting record sales of US$1.51bn in the three months to the end of March. The energy drinks company, which this February formally completed the US$330m acquisition of the Canarchy Craft Brewery Collective, posted strong sales across all of its reporting segments, leading to an overall sales jump of 22.1% on the period 12 months prior. The increase makes Q1 2022 Monster’s best quarterly showing to date, topping the US$1.46bn reported in Q2 last year.
European on-premise recovery and “high margin” aperitifs boost Campari Group sales in Q1 2022
Campari Group reaped the rewards of a strong on-premise recovery in Europe in the first three months of this year, with sales rising by almost 30%. The Aperol brand owner announced a 29.4% year-on-year increase in its top line from the three months to the end of March. The strong performance comes after the group reported a near-25% leap in full-year sales back in February.
Anheuser-Busch InBev keeps momentum with double-digit quarterly sales growth
Price hikes and consumers trading up helped Anheuser-Busch InBev to a respectable rate of growth in its first quarter for 2022, with the group’s top-line nearly matching last quarter’s 12.1% rise, despite a COVID-19 resurgence in many regions. The group posted sales of US$13.23bn in the first three months of the year, an 11.1% increase on the corresponding period a year ago. All reporting regions for the Budweiser-brand owner showed revenue growth, with the exception of its ‘global export & holding companies’, which fell by 10%.
Sales peak for Pernod Ricard in fiscal third quarter, as growth rate expected to soften
The first three months of calendar-2022 delivered another set of healthy numbers for Pernod Ricard, although the current quarter is expected to ease off. Building on the 17% sales increase in the first half of fiscal-2022, the group reported a 20% year-on-year lift in sales from the three months to the end of March. Subsequently, for the first nine months of the financial year, Pernod’s top line was up 18%.
Strong start to 2022 for The Coca-Cola Co
The Coca-Cola Co carried its mid-to-high-teens sales growth from last year into the first quarter of 2022. Following on from February’s announcement of a 16% increase in sales during 2021, the group reported an 18% top-line lift from the three months to the end of March. All reporting regions boasted positive showings in the quarter, although Coca-Cola admitted the prior-year period saw pandemic-related restrictions impact on sales.
Heineken starts 2022 with 25% sales leap as on-premise returns
A partial European on-premise recovery and strengthening premiumisation across all regions helped Heineken to an increase in sales of nearly a quarter in the opening three months of this year. Twelve months after reporting on a gloomy Q1 2021, with beer volumes flat globally and slumping 10% in Europe, the group delivered a 24.9% rise in three-month sales compared to the same period last year. The top-line increase puts Heineken in a strong position to build on 2021’s full-year results when 12-month sales were up just over 12% on 2020.
Cuervo shines in first quarter but RTD dip bodes ill for premixes
This year picked up where 2021 left off for Cuervo, with the group reporting a jump in first-quarter sales of over 25%. Almost three months after posting a 22.4% top-line lift from the three months to the end of December, the Jose Cuervo brand owner set the scene for 2022 with a healthy Q1. Year-on-year sales were up 26.5%, thanks to what the company described as the success of its “premiumisation strategy”.
