News - 04/07/07

U.S. Consumer Direct Wine Shipments Reach Record $1 Billion in 2006

Source: \www.fuerteventuradigital

March 27th

Windsor, CA (PRWeb) March 27, 2007 -- U.S. consumer direct wine shipments reached a record $1 billion in 2006, according to the latest research results published today by wine marketing advisors, VinterActive LLC.

Based on their annual VinQuestT survey of the nation's 3500+ bonded wineries, VinterActive reports that wine club, internet and phone/mail orders increased 58% at U.S. wineries while tasting room and event sales fell 18%, bringing total U.S. consumer direct sales to $2.4 billion in 2006, approximately 10% of total annual wine sales.

With support from major winery associations across the country, more than 230 wineries from 35 U.S. states completed this year's detailed questionnaire from December 2006 through February 2007. Key findings of this year's research reveal:

> Total consumer direct sales by U.S. wineries in 2006: $2.4 Billion

> Value of wine shipped directly to U.S. consumers in 2006: $1 Billion

> 2006 wine club sales at U.S. wineries: $598 Million - Up 66%

> 2006 online sales at U.S. wineries: $197 Million - Up 45%

> 2006 tasting room sales at U.S. wineries: $1.3 Billion - Down 18%

> 2006 event-driven sales at U.S. wineries: $100 Million - Down 30%

> Top barriers to consumer direct wine sales in 2006: compliance with direct shipping regulations & reduced visitor traffic

Explanation for rapidly growing direct wine shipments includes strong consumer demand, a 2005 U.S. Supreme Court decision opening many states to direct wine sales and growing acceptance of wine clubs and winery ecommerce. Falling tasting room and event sales were attributed to higher fuel prices and competition from new wineries - reducing average visitor counts in many wine regions. Airline restrictions on wine as a carry-on item were cited as reducing onsite sales in some regions.

VinQuestT 2007 research also identifies the most effective sales/marketing practices used by consumer direct wineries in all regions and provides a detailed comparison of tasting room, wine club and online direct sales metrics at U.S. wineries of every size.

Complete VinQuestT 2007 Research Results Now Available Highlights from this year's research, including key charts and graphs, are available online free of charge in the VinterActive Wine Marketing Library. (requires registration)

An 8-page summary of VinQuestT 2007 research results, including 19 detailed charts and graphs, is being distributed free of charge to all wineries and winery associations that participated in this year's research project. This summary report is available to purchase from VinterActive for $149.

The complete 70-page VinQuestT 2007 research report including detailed response to all survey questions, best-practices analysis, time-series views and proprietary regional winery performance data is available from VinterActive LLC at a cost of $1495.

About VinQuestT 2007 The VinQuestT 2007 research project was conducted by wine marketing advisors VinterActive LLC with support from a national coalition of wine industry associations in an effort to better understand the size and dynamics of the U.S. consumer direct wine sales channel. Now in its third year, VinQuest has become the largest and most widely used source of consumer direct sales data in the U.S. wine industry.

Participating winery associations include: WineAmerica, Napa Valley Vintners, New York Wine & Grape Foundation, Illinois Wine, Russian River Wine Road, Heart of Sonoma Valley Association, Walla Walla Valley Wine Alliance, Oregon Wine Board, North Carolina Wine & Grape Council, Michigan Grape & Wine Industry Council, Seneca Lake Wine Trail, and the Paso Robles Wine Alliance. Initial guidance and encouragement was provided by the U.S. Federal Trade Commission.

About VinterActive LLC VinterActive LLC is a leader in the research and practice of consumer direct wine marketing and winery ecommerce. Founded in 2001, VinterActive's global team of direct marketing experts, wine sales advisors, and system engineers have identified and developed proprietary techniques for increasing tasting room, wine club and online sales that have proven effective for both large and small wineries seeking to maximize their share of the rapidly growing consumer direct sales channel.

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Three wineries seek to ship straight to Kentucky buyers

By Alex Davis

The Courier-Journal

March 27th

Kentuckians soon may be able to have wine delivered to their doorsteps, now that the owners of three vineyards -- two in California and one in Southern Indiana -- have applied for new small-farm licenses to sell bottles over the Internet or by telephone.

But two of the wineries' ties to the large Kendall-Jackson operation on the West Coast are drawing criticism from distributors who oppose allowing wineries to ship directly to Kentucky consumers.

"They've found a way to skirt our laws" regarding small-farm wineries, said Daniel Meyer, an attorney for the Wine and Spirits Wholesalers of Kentucky.

The state law creating the out-of-state licenses, which took effect Jan. 1, restricts the permits to small farm wineries that produce no more than 50,000 gallons a year.

According to their license applications, the California wineries, called Atalon and La Jota, each produce less than 20,000 gallons a year. But both are owned by Jess Jackson, the billionaire founder of Kendall-Jackson.

Huber Orchard & Winery of Starlight, Ind., also has applied for the new license.

Tom Fuller, a spokesman for both Atalon and La Jota, said the marketing and management teams at the two California wineries are separate from the rest of the Jackson empire, even though the applications were filled out by the same person and both wineries are listed as subsidiaries of a larger company called Jackson Family Farms LLC.

"They're very individual," Fuller said of the two Napa Valley properties. "They just happen to be owned by the same gentleman."

Kentucky's law doesn't directly address the issue of a large company owning smaller vineyards, and Stephen Humphress, (an attorney for the state Alcoholic Beverage Control office, said he has not yet been asked to review the business structures of the two California wineries.

He added that the applications from the California wineries will likely take a couple of weeks to process. The application from Huber Orchard & Winery is complete, and a final decision on whether to approve the license should be made "very soon," he said.

Huber was the first to challenge Kentucky's shipping regulations in a May 2005 lawsuit, but it dropped out after finding a distributor in Kentucky.

Owner Ted Huber said he's seeking a license now because it will allow him to sell the winery's products at trade shows and events such as the Kentucky Derby Festival.

Each winery license costs $100 a year.

Huber said he didn't have a problem with licenses being awarded to small wineries that are part of larger companies, like those owned by Jackson.

But Meyer, whose group voluntarily joined the Huber lawsuit as a defendant, along with the Kentucky office of Alcoholic Beverage Control, said it won't give up the fight.

The state dropped out of the suit earlier this year, but the distributor group continues to oppose the law in the 6th U.S. Circuit Court of Appeals.

Meyer said he doesn't expect a decision in the case until early next year.

"These people can get their licenses," he said, "but I hope they enjoy it while they can because it's not going to be a long-lived way of doing business."

Bill Lee, a wine enthusiast who lives in Middletown, said he views the wine-shipping applications as a positive sign for collectors, although he doesn't expect them to have a big impact on his buying habits.

All three wineries that have applied for licenses already sell their labels at retail stores in Kentucky through distributors.

Lee, who has about 400 bottles in his collection, said most of the rare vintages he likes to buy are available only through out-of-state dealers and not wineries themselves.

"It's still frustrating," he said of the state law's restrictions on winery size. "There's a certain consumer who wants to buy wines that aren't sold here at the local stores. It's not like we're trying to put anyone out of business."

Jackson, who lives in Healdsburg, Calif., also is active in Kentucky's horse-racing industry and is the owner of Stonestreet Farm in Lexington.

But Fuller said those connections to the state had nothing to do with Atalon and La Jota pursuing wine-shipping licenses here.

"When markets open, it's the smart thing to do," he said "As the laws are being changed, more and more states are opening up direct shipping avenues for wineries to offer their products."

Marilyn Kushner, of Broad Run Vineyards in southeastern Jefferson County, said she didn't think shipments from any of the three wineries would pose a major competitive threat to the business she runs with her husband.

Broad Run has the same ability to ship to customers under the new law, but the bulk of its business still comes from retail sales in liquor stores and public tours.

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Sun Capital buys Restaurants Unlimited

Source: NRN

SEATTLE (Mar. 27)

Restaurants Unlimited Inc., operator of the Kincaid's and Palomino casual-dining chains, has been acquired by an affiliate of the private-equity firm Sun Capital Partners Inc., parent of the El Torito, Chevys, Bruegger's and Fazoli's chains, among others. Terms of the deal were not disclosed.

The acquisition swells Sun Capital's foodservice investments to six companies encompassing 16 concepts. Its other investments include the Marsh Supermarkets and Mervyns department-store chains. The Boca Raton, Fla.-based company said its portfolio generates sales in excess of $33 billion annually.

In addition to 14 Kincaid's restaurants and nine Palomino's restaurant-bars, all of which are at the high end of casual dining, Restaurants Unlimited operates such concepts as Palisade, Cutters Bayhouse, Scott's, Ryan's Grill and Fondi Pizzeria. The company, based here, owns and operates 29 restaurants in total. It was owned by founder Rich Komen and members of management.

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Pernod Ricard reaches legal settlement

Source: Lower Hudson Online

March 27

Pernod Ricard USA LLC, a Purchase company that sells alcoholic drinks, has reached a settlement with a Stamford, Conn., supplier it was seeking to oust, court records show. But terms of the settlement with United States Beverage LLC will not be made public. Pernod Ricard sued the supplier in U.S. District Court in White Plains, arguing that the supplier's five-year contract to buy and sell Pernod's Seagram's Cooler low-alcohol drinks expired at the end of this month. Pernod Ricard wanted to replace United States Beverage with the High Falls Brewing Co. LLC of Rochester.

United States Beverage countered that it paid Pernod more than $30 million in fees and spent additional tens of millions of dollars to market the drinks based on Pernod's promises of a long-term relationship. A spokesperson for United States Beverage declined to comment. Jack Shea, a Pernod Ricard spokesperson, said a condition of the settlement was that the terms would not be disclosed.

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Asda (Wal*Mart) 'considers bidding for Sainsbury'

By Richard Fletcher, Deputy City Editor

Source: Daily Telegraph

Last Updated: 9:27am BST 27/03/2007

Asda, the supermarket chain, is said to be examining whether a bid for rival supermarket chain J Sainsbury would break competition rules.

The Wal-Mart owned retailer is reported to be on the verge of contacting the competition authorities to explore the feasibility of a bid for Sainsbury's which is being circled by a private equity consortium, led by CVC. John Longworth, group company secretary of Asda, said the retailer "never commented on market speculation".

Analysts have raised the possibility of an Asda bid for Sainsbury's recently, yet many retail watchers remain sceptical about the possibility. The speculation comes as talks between the trustees of the Sainsbury's pension fund and the private equity bidders circling the retailer continued yesterday.

If an agreement with the trustees can be reached an offer for the retailer could be tabled by the end of the week.

In a statement to the London Stock Exchange after the market had closed on Friday, the pension fund trustees set out a number of scenarios after a change in the financial strength or covenant of Sainsbury's.

Richard Ratner, retail analyst at Seymour Pierce, believes the pension fund trustees could be seeking around £1.25bn.

"It is not clear whether it will be a 'deal-breaker', but the pension could turn out to be the 'fly in the ointment," said Mr Ratner.

Meanwhile, property tycoon Robert Tchenguiz has further increased his stake in Sainsbury's. In a statement to the stock exchange Mr Tchenguiz revealed he had increased his stake from 4.04pc to 4.15pc buying shares on Friday at between 545p and 549½p a share.

Filings also revealed that charitable trusts linked to the Sainsbury family had sold just over 1m shares.

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'Tis the season for awards........................

Buffalo Trace Distillery Strikes Gold In San Francisco

Source: Buffalo Trace Distillery

March 27th

Franklin County, Kentucky- The San Francisco World Spirits Competition announced the 2007 winners. The whiskies of Buffalo Trace Distillery earned numerous medals including, "Top North American Whiskey," presented to Sazerac Straight Rye Whiskey. The competition also bestowed six "Double Gold" medals upon other renowned Buffalo Trace products. "Double Gold" is the competition's highest honor. The winners in this year's competition include:

· Top North American Whiskey, Double Gold Medal, Sazerac Straight Rye Whiskey

· Double Gold Medal, Eagle Rare Single Barrel Bourbon

· Double Gold Medal, Thomas H. Handy Sazerac Straight Rye Whiskey

· Double Gold Medal, Pappy Van Winkle Family Reserve 20 Year-Old Kentucky Straight Bourbon Whiskey

· Double Gold Medal, Pappy Van Winkle Family Reserve 23 Year-Old Kentucky Straight Bourbon

· Double Gold Medal, George T. Stagg Kentucky Straight Bourbon Whiskey

· Gold Medal, Buffalo Trace Kentucky Straight Bourbon Whiskey

· Gold Medal, Blanton's Single Barrel Bourbon

"We come to work everyday with the intent of making the best whiskey possible," said Harlen Wheatley, Master Distiller of Buffalo Trace Distillery. "When we win awards of this caliber it really validates our efforts. We are thrilled to be recognized and will continue to work hard to offer our customers some of the finest whiskey made."

Buffalo Trace has garnered more awards since 1990 than any other North American distillery-over 160 awards for more than 15 different brands. In 2006 the distillery was recognized by three of the spirit's industry elite, being named "Distiller of the Year" by Wine Enthusiast Magazine and Whisky Magazine and "Distillery of the Year" by Malt Advocate Magazine. Only Buffalo Trace has won all three awards in the same year.

For a complete list of SFWSC winners go to \www.sfspiritscomp.com.

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Pernod Ricard USA Wins 34 Medals at 2007 San Francisco WORLD Spirits Competition

Source: PR USA

March 27th

13 Double Gold and Gold Medals Awarded to Pernod Ricard USA Brands

Purchase, NY, (March 26, 2007) - Pernod Ricard USA, a leading producer, importer and marketer of prized spirits and wine brands in the United States, is honored to announce that its brand portfolio won an impressive 34 medals in the prestigious 2007 San Francisco World Spirits Competition.

Pernod Ricard Double Gold Medal winners include: Jameson® 18 Year Old, Redbreast® 12 Year Old and Midleton® Very Rare Irish Whiskies; The Glenlivet® 21 Year Old Archive and Aberlour® single malt whiskies; and Wild Turkey® Kentucky Spirit and Wild Turkey® Master Distiller Selection American Whiskies. In addition to receiving Double Gold, Redbreast, The Glenlivet 21 Year Old Archive and Wild Turkey Master Distiller Selection were selected to be poured in the competition's prestigious "Sweepstakes" tasting to determine "best of category and show," and Redbreast was named "Top Irish Whiskey."

Held on March 17th and 18th at the Mandarin Oriental Hotel in San Francisco, the San Francisco World Spirits Competition is the first comprehensive, international spirits judging held in the United States on an annual basis. 2007 marked the largest and most successful event in the competitions history with 701 spirits entries from 52 countries and 6 continents. Judging is based on blind taste tests and medals are awarded based on taste alone.

"We're thrilled to have our premium products recognized with such high honors at this competition," said Patrick Piana, Senior Vice President, Spirits Marketing, Pernod Ricard USA. "These awards affirm that Pernod Ricard has developed one of the most highly regarded premium spirits portfolios in the industry, appealing not only to consumers, but also to the distributors, brokers and retailers who sell our brands.".

Following is the complete list of Pernod Ricard USA brands receiving Double Gold or Gold medals in the 2007 San Francisco World Spirits Competition:

Jameson® 18 Year Old and Midleton® Very Rare both won Double Gold, while Jameson® 12 Year Old received a Gold medal in the Irish Whiskey category.

Redbreast® 12 Year Old Irish Whiskey was named "Top Irish Whiskey" and won a Double Gold medal.

The Glenlivet® 21 Year Old Archive and Aberlour® 18 Year Old both won Double Gold in the single malt category while Aberlour® 12 Year Old took home Gold.

Wild Turkey® Master Distiller Selection and Wild Turkey® Kentucky Spirit both received Double Gold medals while Wild Turkey® 101 and Wild Turkey® Russell's Reserve won Gold medals in the American Whiskey category.

Ballantine® 12 Year Old won Gold in the Blended Scotch category.

Tevado® Reposado won a Gold Medal in its first year of entry in the tequila category.

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Beam Global Spirits & Wine Sets Record with 31 Medals from the 2007 San Francisco World Spirits Competition

Monday March 26, 3:00 am ET

Source: Beam Global

17 Gold and Double Gold Medals Awarded to Beam Global Portfolio

DEERFIELD, Ill.--(BUSINESS WIRE)--Beam Global Spirits & Wine, Inc. (Fortune Brands, Inc. (NYSE:FO - News)), a global leader in premium spirits and wine, announces its best performance ever from the 2007 San Francisco World Spirits Competition, with 31 medal wins. Beam Global's portfolio of brands won an impressive 17 Gold and Double Gold medals, achieving its highest volume of Gold and Double Gold medals in company history.

"With 17 Gold and Double Gold medal wins, this news will inspire a lot of conversation among our various constituents around the world, from business partners and customers to employees," said Tom Flocco, president and CEO of Beam Global Spirits & Wine. "More than half of the medals awarded to Beam Global were Gold and Double Gold which is a testament to the quality of the entire portfolio. Our ranking in the categories of bourbon, Scotch whisky, cognac, Canadian whisky and tequila are superb."

"Our employees are the people we have to thank for these results. A great deal of craftsmanship and artistry go into producing our brands. But the ingredient that perhaps distinguishes us the most from everyone else is the passion that our people bring to their roles," continued Flocco.

The following Beam Global Spirits and Wine brands received Double Gold or Gold medals in the 2007 San Francisco World Spirits Competition:

From the Small Batch Bourbon Collection, Baker's® bourbon won a Gold medal and Booker's® bourbon was awarded a Double Gold medal.

Canadian Club® Classic 12, Canadian Club® Reserve and Canadian Club® Sherry Cask whiskies all received Gold medals.

Double Gold medals were awarded to Courvoisier® Initiale Extra and Courvoisier® Napoleon cognac.

The Dalmore® 21 Year Scotch whisky and The Dalmore® 28 year old Stillman's Dram won Double Gold medals while The Dalmore® 12 Year was awarded with a Gold medal.

Gold medals were awarded to El Tesoro® Anejo and El Tesoro® Reposado tequilas. El Tesoro® Paradiso Anejo won a Double Gold.

Jim Beam® Black bourbon received a Gold medal.

Laphroaig® scotch whisky had another winning year receiving Gold medals for Laphroaig® 10 Year, Laphroaig® 10 Year Cask Strength and Laphroaig® 30 Year.

The 2007 San Francisco World Spirits Competition was held on March 17th and 18th at the Mandarin Oriental Hotel in San Francisco. Held annually in San Francisco, the competition is international, inspiring more than 700 spirits entries from around the world. Judging is based on blind taste tests and medals are awarded based on taste alone.

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Rums Of The World Unite In Tampa

Second Annual International Cane Spirits Festival Highlights Spirit's Quality

March 27th

Source: HLA Group

TAMPA, Fla. (March 25, 2007) - The world's only International Cane Spirits Festival and Tasting Competition (ICSF) celebrated its second annual event on March 22 and 23, where more than 80 of the world's finest brands competed for recognition and honors in one of the fastest growing categories of the industry. With 40 percent growth in entries over the inaugural year, the diverse competition held at the historic Cuban Club in Ybor City, Florida, featured some of the most renowned international judges and an incredible array of tastes and flavors from around the globe.

The 14 prominent judges, including rum connoisseurs and editors at top publications, were in attendance to sample the rums, rhums and cachaças over a two day period; before presenting Gold, Silver, Bronze and Best in Category Awards to the elite spirits on the evening of March 24 at "Sensory Overload", with presenting sponsor Creative Loafing. While many of the spirits sampled are sold in the US, there were several which are currently not offered to US consumers, which allowed the judges to oversee the best of the world's cane spirits.

This year's event featured ten categories, including two Rhum Agricole categories (Unaged and Aged); three categories of Aged Rums (up to 8 years old, 9-15 years and over 15 years), two Cachaça categories (Unaged and Aged), plus White Rum, Dark Rum and a Liqueur/Flavor/Cream section. The competition among cachacas was a first, as never before have both unaged and aged categories been sampled at an awards festival.

Jack Robertiello, group editor, electronic media at Adams Beverage Group and co-host for the festival stated, "Consumers are thirsting for more knowledge about rums, and so events like the ICSF - where writers, journalists, consultants, retailers and restaurateurs experienced in sampling the world's best rums get a chance to rate them all together - is a giant step toward making the world of rum lovers better informed."

According to Robert Plotkin, fellow co-host, founder of BarMedia and renowned spirits author, "The International Cane Spirits Festival is the most prestigious event of its type. The entries this year represent absolutely the finest rums and cachaças in the world. The judging panel is first rate and it should be another outstanding and highly successful event. Cane spirits are on fire here and abroad and this festival will only serve to further fan the flames."

The judging competition and winner announcements were both held at the landmark Cuban Club in Ybor City, one of the most historic venues in Tampa. Originally founded in 1899 by Cuban immigrants, most of whom were involved in the booming cigar business of the time, the Cuban Club is now dedicated to preserving the Cuban heritage of the area. A leading venue for events, it provided an ideal location due to the history of both rum and Cuba.

Dori Bryant, President of Polished Palate and event coordinator said, "We were fortunate to have so many expert panelists from all over the world and a truly amazing selection of cane spirits to compare. Choosing the Best Of Category and Gold awards proved to be very difficult decisions. The Cuban Club was an amazing location for this year's festival and we look forward to continuing what has now become a premier event."

Rums of all kinds - premium, aged, white, flavored and dark sugar cane spirits were all evaluated and critiqued on aroma, initial taste, body and finish. This year's "Best Of Category" winners highlight the strength and quality inherent in cane spirits including:

Prichard's Crystal - Best White Rum

One Barrel - Best Dark Rum

Rhum Clément Première Canne - Best Rhum Agricole (Unaged)

Rhum J.M V.S.O.P.  - Best Rhum Agricole (Aged) TIE

Rhum J.M. 1997 - Best Rhum Agricole (Aged) TIE

Tortuga 5 Year Old - Best Aged Rum (up to 8 years)

Diplomatico Reserva Exclusiva - Best Aged Rum (9-15 years) TIE

Tortuga 12 Year Old - Best Aged Rum (9-15 years) TIE

Ron Zacapa Centenario 23 Year Old - Best Aged Rum (over 15 years) TIE

Santa Teresa 1796 - Best Aged Rum (over 15 years) TIE

Agua Luca - Best Cachaça (Unaged)

Ypióca 160  - Best Cachaça (Aged)

Araku Rum & Coffee Liqueur - Best Liqueur/Flavor/Cream

The Polished Palate is designed with consumers in mind, coordinating and creating awareness of tasting events, product news and information featuring dozens of spirits, information from experts in the field, master distillers and authors in the industry. The company has hosted premium cocktail competitions in many cities and is renowned in the alcohol industry as a leading provider of beverage promotions. For more information and a full list of results, visit \www.polishedpalate.com.

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Winemakers think inside the wine box as image shifts with better varieties

Posted 3h 14m ago

By Lauren Shepherd, The Associated Press / USA Today

NEW YORK - Composer-turned-writer Steph Waller considers herself something of a wine connoisseur.

But she isn't seduced by the sweet smell of cork or the curve of a narrow glass neck. Instead, the California native swoons over a glass poured straight from the box.

Waller is one of a growing group of wine drinkers turning to the box rather than the bottle. With better wine varieties now in boxes, wineries are attempting to give the category a new identity far from drunken fraternity parties that gave box vino its cheap, low-quality image.

The effort seems to be slowly paying off. Box wine is now the fastest-growing wine category. According to data from ACNielsen, volume of 3-liter box wine grew 44% in the past year, compared with a 3% gain in overall table-wine volume.

"It's gaining tremendous acceptance," said Ben Dollard, president of Pacific Wine Partners, a unit of Constellation Brands.

Vintners have been experimenting in the past few years. Wine now even comes in plastic bottles and cans. Although wine has been packaged in a box for some time, the new boxes aren't like the 5-liter jugs of sweet, headache-inducing wines of the past.

Although those are still available, there are now premium varieties with more complexity and hints of berry, apple or oak.

Of course, the premium entries are more expensive. For example, a chardonnay can run $20 for a box that contains the equivalent of four bottles, whereas the lower-quality 5-liter boxes sell for $6 to $10 for more than six bottles of wine. The premium boxes are still a steal, however, since one quality bottle can run $10 to $30 or more.

Box-wine makers can charge less for quality because the packaging materials are much cheaper. Morningstar analyst Matt Reilly said, for example, that bottling a $4 or $5 bottle of wine can cost $1, whereas a box can cost a tenth of that.

And, of course, you can't beat the convenience. You can take a box of wine just about anywhere or leave it at home and not worry that it will go bad. Box wines typically stay fresh as long as four weeks after opening because the vacuum-sealed bag inside prevents the wine from being exposed to air.

"A box just kind of sits in the fridge, and I don't have to think about it," said Waller, who is also writing a book about box wine

Despite the advantages, Wall Street analysts and wine industry experts say it could take some time before Wine Spectator-reading enthusiasts can fully embrace the box.

"People need to feel comfortable that their friends won't make fun of them," said Barbara Insel, managing director and wine researcher at MKF Research.

For now, the new wines are attracting drinkers content with a glass a night at a value price and less sophisticated than the tasting-room aficionados.

Although the wines can now be found in major retailers such as Safeway, Wal-Mart, Kroger and Albertsons, many stores stock it in the same section as the lower-quality box wines of yesterday.

To attract people who'll spend upwards of $15 on wine, premium box wines would ideally be shelved with their bottle counterparts.

"You see that a lot of times with new categories when you try to rebrand something," Reilly said.

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ProCork trial begins in France

27 March 2007

Source: Sophie Kevany

The first premium wine trial of a natural cork closure in Europe has begun.

The trial of ProCork, a closure which claims to prevent cork_taint in wine, started yesterday (26 March) in Bordeaux at Chateau La Dauphine.

The chateau has agreed to bottle 150 bottles each of its two wines under ProCork and store it for the next ten years.

"We will come back once a year to taste it," said Gregor Christie, inventor and CEO of ProCork.

Christie says his cork, which uses a system of fine layered membranes on each end of the cork, lets in the right amount of oxygen, but blocks the TCA molecule, the cause of cork taint.

ProCork was founded in Australia in 2002 and now sells 100m corks annually.

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California: Albertsons workers in Southern California vote for strike

Source: East Bay Business Times - 2:58 PM PDT

Tuesday, March 27, 2007

by David Goll

Three years after a contract settlement in the nation's longest supermarket strike concluded nearly five months of acrimonious labor strife, union employees at one Southern California grocery chain have voted to authorize another walkout.

Employees of the Albertsons chain -- who number 22,000 in Southern California -- voted to give their union leaders the authority to call for a strike if the latest contract talks sour. Though union leaders did not release specific figures, they said a vast majority of the 11,000 workers who cast ballots favored a walkout, if necessary.

Albertsons is one of three major supermarket chains involved in the negotiations, a group that includes Vons, a division of Pleasanton-based Safeway Inc., and Ralphs, owned The Kroger Co. of Cincinnati. After Albertson's Inc. was sold last year, its branded stores in Southern California were purchased by SuperValu Inc. of Edina, Minn.

The vote is likely to dredge up unpleasant memories. The same three chains were involved in the 140-day strike and lockout that idled more than 70,000 union workers from October 2003 to February 2004. The bitter strike was first called against Safeway's Vons stores, and then Ralphs and Albertsons locked out their union workers.

The strife was triggered mostly by health care issues, which have continued to roil the industry. Safeway president and CEO Steve Burd became a controversial figure during the strike and lockout, with union leaders claiming he was anxious to lower his company's expenses by slashing health care benefits.

Both then and now, Burd has been a vocal proponent of health care reform, contending the spiraling costs of employer-based coverage is bad for both companies and employees.

Because of a three-week extension of the current contract, the earliest any strike could occur in Southern California is April 9. Workers are represented by the United Food & Commercial Workers union. Those who work for Vons and Ralphs have not yet voted on whether to authorize a strike. The current three-year contracts for union employees of Safeway Inc. in the

Sacramento Valley and Bay Area will expire in July and September, respectively. The same is true for union workers of other major grocery chains, including area Albertsons stores that were purchased last month by Save Mart Supermarkets of Modesto.

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Colorado: Colorado Governor Signs Franchise Bill

Filed on March 27, 2007

Source: Beer Business Daily

harry@beernet.com email

\www.beernet.com

In a state with a big three brewer in it (and several craft brewers), who would have thought a franchise law would pass? Colorado Governor Bill Ritter signed a malt beverage franchise bill into law on Monday. The new law provides for distributor protection from termination, except in cases where the distributor has violated a provision of its equity agreement with the supplier and fails to remedy that breach within 60 days of written notice.

Other conditions by which a supplier may terminate a distributor are pretty standard: the distributor falls behind on payments to the supplier, the distributor loses its license, failure to sell after being convicted of a felony or any law that adversely affects the sale of malt beverages, selling to an unapproved buyer, selling outside of assigned territory, etc. The law carves out suppliers of less than 300,000 gallons (or about 10,000 barrels or 135,000 case equivs) a year.

SUCCESSOR LANGUAGE. Okay, here's the important part of the bill you've been waiting for: If a brand is transferred from supplier to a successor supplier (InBev, anyone?), the supplier can transfer the brands so long as the successor wholesaler negotiates with the current wholesaler the fair market value in good faith. Of course, there's a lot of latitude in that language, and that's where the rubber meets the road. If both parties fail to reach an agreement within 30 days, they go into arbitration.

COMPROMISE ALL AROUND. Colorado Beer Distributors Association's Steve Findley told BBD that the distributors had been working with the big and small brewers on this bill for about 18 months, and each side compromised to get the deal done. Says Steve, "Obviously, everyone had to sacrifice a little to get this done, but that is why they call it a compromise. While we don't agree on everything, the brewers and distributors in Colorado have great working relationships here."

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Alabama: Sunday Liquor Sales March Postponed

Monday, Mar 26, 2007 - 07:04 PM

Source: NBC 13

MONTGOMERY, Ala. -- A statewide show of support for Sunday alcohol sales has been postponed.

People who wanted to see Sunday liquor sales in cities like Tuscaloosa had planned to march on the state capital in Montgomery Tuesday morning.

The rally is being postponed until sometime next week so lawmakers sponsoring the idea can meet with delegations back home.

There are several different forms of the bill, one of which may be introduced to lawmakers tomorrow.

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South Carolina: Senate panel OKs amendment allowing sale of higher alcohol beers

Source: Fox Carolina

March 27th

COLUMBIA, S.C. Beer drinkers in South Carolina could have more brands to choose from.

A Senate committee today approved an amendment allowing the sale of beers with higher alcohol concentrations.

The proposal would allow beer containing up to 14 percent alcohol to be sold in the state.

Currently, beer can't have more than five percent alcohol.

Orangeburg Democrat Brad Hutto says the bill would mainly affect specialty and foreign beers, which can cost up to 20 dollars for a six-pack.

The amendment is part of a bill regulating beer producers and wholesalers. It has passed the Senate Judiciary Committee and is on its way to the Senate floor.

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North Carolina: Grand jury investigates beer, wine wholesaler contributions

Source: Herald Sun

Mar 27, 2007 : 12:43 pm ET

RALEIGH, N.C. -- A federal grand jury that investigated former state House Speaker Jim Black has turned its attention to political donations made by beer and wine wholesalers who lost a special tax break that was later restored.

The tax break, worth roughly $4 million to the wholesalers, was eliminated in 2003 but partially restored a year later. The wholesalers stepped up donations to Black and former Rep. Richard Morgan at a time when the men served as co-speakers of the House and had power over the tax break issue.

Federal authorities haven't commented, but the investigation was confirmed by Dean Plunkett, executive director of the North Carolina Beer & Wine Wholesalers Association.

"We are confident that the investigation will show that all of the (political action committee) contributions were recorded properly," Plunkett said in a written statement. "We are committed to fully cooperating in any way that we can."

The tax break was a 4 percent discount on wholesalers' state excise tax payments and allowed wholesalers to get credit for damaged goods they paid taxes on but couldn't sell.

"When they did away with that, it was a huge hit to the wholesalers," said Worth Harris, chief executive officer of Harris Wholesale in Raleigh.

The change came as a surprise to wholesalers, and it's unclear which lawmaker suggested it. In 2004, a bill giving the wholesalers a 2 percent tax break was signed into law.

During the tax break's hiatus, beer and wine wholesalers and their political action committee gave about $20,000 in political contributions to each Black and Morgan, according to records.

Harris, who also is the director of a wholesalers association, said he doesn't know of any request for political contributions tied to the tax break.

The wholesalers, along with beer manufacturer Anheuser Busch, also gave money to a political group created by Morgan and his allies. The wholesalers contributed to the group a few days after the bill was passed, records show.

The tax break also applied to tobacco wholesalers and retailers that collected excise taxes, but there wasn't an outpouring of political contributions for Black and Morgan from those groups.

Black, a Democrat who had represented Mecklenburg County, resigned from his House seat in February, shortly before making plea agreements to federal and state corruption charges. The charges are related to Black accepting money from chiropractors while pushing legislation they favored.

State and federal investigators have looked into allegations surrounding Black's activities with special interest groups for more than two years.

Morgan, a Republican from Moore County, also is no longer in the Legislature. Morgan testified before the federal grand jury in December but has said he wasn't the target of an investigation.

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New Hampshire: House Approves Bill Allowing Bars To Stay Open Later

Law Enforcement Officials Concerned With Overserving Patrons

POSTED: 10:50 am EDT March 23, 2007

Source: WMUR 9

NASHUA, N.H. -- The New Hampshire House overwhelmingly approved a bill that would allow bars to stay open until 2 a.m., an hour later then they currently do.

The bill, sponsored by Rep. Robert Theberge, D-Berlin, passed the House by a vote of 267-89 on Thursday. It now goes to the Senate.

The New Hampshire State Liquor Commission does not support the measure. Eddie Edwards, chief of the bureau of enforcement and licensing, said it would strain the agency and local police departments.

"We're not in favor of the law, but I understand that the law does offer a certain level of control by the commission," Edwards said, referring to a provision added by the House Commerce Committee allowing the liquor commission to restrict bars with liquor violations from serving alcohol past 1 a.m.

Peter Thomson, New Hampshire Highway Safety Agency coordinator, said keeping the bars open later could increase the likelihood of people driving while intoxicated.

"You can absorb more alcohol in that hour, and you're going to be an hour more tired and not as alert," Thomson said.

State Police Capt. Mike Hambrook said if the bill passes, it would be up to the liquor commission and local establishments to control overserving.

"From a law enforcement perspective, I would be more concerned with the overserving than the hours," Hambrook said. "Even if bars were open until 10 p.m., there's the potential to overserve."

Some bar managers were pleased to hear the news.

"Sometimes the nights don't start until really late, and an extra hour would be good," said Brian Winn, manager of 603 Lounge in Nashua. Regarding over-serving, Winn said his bar, like most, has a policy not to serve people who are obviously intoxicated, no matter what time it is.

In Hudson, resident Bob Higgins, 63, who was sipping a beer at T-Bones restaurant, said he agreed with the bill, stating that the law should probably be the same as in Massachusetts, just to keep people in the state.

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Arkansas: GOVERNOR SIGNS BILL ALLOWING SPIRITS TASTINGS

Source: DISCUS

March 27th

Little Rock, AR - Governor Mike Beebe signed into law on Sunday new legislation allowing Arkansas consumers the opportunity to sample distilled spirits products at tasting events held at liquor stores.

"Arkansas consumers will now have the opportunity to responsibly sample the world's finest premium spirits products in a retail setting, just like they do wines," said Dale Szyndrowski, Vice President of the Distilled Spirits Council. "Arkansas is joining a growing list of states modernizing their liquor laws to bring adult consumers more choices and greater convenience."

With the signing of House Bill 2397, Arkansas becomes the 15th state since 2000 to modernize its marketplace by allowing or expanding spirits tastings. Arkansas will become the 40th state to allow spirits tastings in some form, at either on or off-premise establishments. The bill will go into effect 90 days after session adjourns.

"Adult consumers are fascinated by the cocktail culture, and curious about how to discern between the 4,000 distilled spirits products on the market," said Szyndrowski. "Like fine wines, adult consumers want to purchase these fine spirits for their home, but they would like to try them before making their buying decision."

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Alberta: AGLC accepts recommendations to strengthen province's liquor distribution system

Source: AGLC

March 22nd

Liquor Supply Chain Review recommendations will ensure Albertans receive high standards of liquor service

Edmonton...A report recommending better management of the liquor supply chain with increased monitoring and a more active role by the Alberta Gaming & Liquor Commission (AGLC) has been accepted in full by the AGLC Board. Work will begin immediately on the recommendations to improve services to the province's liquor industry.

The Liquor Supply Chain Review report was commissioned by the AGLC Board and prepared by an independent third party, PricewaterhouseCoopers (PwC). A key report recommendation is a formalized performance contract with Connect Logistics Services (CLS), the provincial agent for liquor warehousing and distribution in Alberta.

"I'm pleased to see the AGLC Board has taken quick action to ensure stability in the province's liquor supply chain," said Minister Fred Lindsay, Solicitor General and Minister for Public Security. "The report's recommendations will be used to ensure that we have the right system in place to continue providing Albertans with the liquor service they have come to expect."

The report acknowledges Alberta's privatized liquor distribution model has worked well, meeting the original policy objectives established in 1993 when the system was privatized. Under Alberta's privatized model, the liquor retail system has prospered while liquor prices have remained relatively

stable and consumer choice has increased from 3,300 products in 1993 to more than 13,000 in 2007.

Immediate actions recommended in the report by PwC include the following.

· The AGLC must take a more active role in managing elements of the industry, particularly the liquor supply chain to ensure that service levels and stakeholder confidence are returned to the industry.

· CLS will be retained as the sole warehouser and distributor of liquor in the province at this time, but with a formal contract and measurable performance targets. This formal 'service provider' relationship will be negotiated with CLS and will include performance indicators for on-time

delivery, shipment accuracy and customer service.

· AGLC will work with CLS to develop a new, more detailed, rate structure to better reflect the relative costs of ordering, handling and storing different types of products.

· CLS current rates will remain unchanged until the introduction of the new rate structure.

· All stakeholders including agents and suppliers are required to provide volume and timing forecasts for 2007 and 2008 to CLS to ensure proper forward planning is in place in order to reduce bottlenecks in the liquor supply chain.

The report also recommends the AGLC evaluate various options to improve the existing warehousing and distribution model. This evaluation would consider the benefits and costs of alternate warehousing and distribution solutions, and help ensure a long-term strategy is adopted so the province's privatized model of liquor distribution and warehousing is based on industry best practices and continues to meet the needs of Albertans.

The Liquor Supply Chain Review Report is available on-line at Liquor Supply Chain Review.

Copies are also available by contacting AGLC Communications at (780) 447-8740.

Strengthening the province's liquor supply chain meets one of the key actions of Premier Ed Stelmach's plan to manage growth pressures. Other priorities for government are to govern with integrity and transparency, build a stronger Alberta, improve Albertans' quality of life and provide

safe and secure communities.