Beverage Dynamics

Beverage Dynamics May-June 2011

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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EDITOR’S NOTE Back To The Future his month marks the twenty-first year that I’ve been writing about and observing the beverage alcohol industry, and I thought it might be fun to look back at those first few issues of Beverage Dynamics from the middle of 1990. In those months, the rising specter of an impending FET (federal excise tax) increase cast a giant shadow over everyone in the industry. T Business boomed at the end of 1990 because people wanted to build up inventory before the tax hike, which, indeed, came in 1991. For those of you who remember, the result was very close to what industry members had predicted: sales fell as did tax revenues. In fact, it reportedly took several years for tax revenues to equal what they’d been before the FET increase. Interestingly, some stories we published in 1990 sound very similar to ones we could be writing today. For example, a story about South American wine, called “Wine from the Other America,” had this quote from Robert Parker: “The Chilean wines are capturing market share….You simply can’t find too many wines from around the world that have that level of quality in that price range.” And then we had a feature on the tremendous growth of light beer, which at that time had increased consumption to 28% of the U.S. beer market. The leading brand was Miller Lite, which was selling twice as many cases as Bud Light and Coors Light combined. Today, of course, light beer is still growing, but it now comprises more than 52% of U.S. beer consumption, with Bud Light dominating the segment. Industry consolidation has remained a theme through the decades. Just look at this list of the world’s top 10 leading spirits companies we published in 1990: IDV/Grand Metropolitan; Seagram; United Distillers/Guinness; Hiram Walker/Allied Vintners; Suntory; Bacardi; Pernod Ricard; Brown- Forman; Pedro Domecq; and Jim Beam. Several are gone and the others are changed, while consolidation remains a major industry dynamic. In those days wine coolers were all the rage, and dry beer was the newest craze from brewers. In fact, one of my first articles in September of 1990 discussed that emerging segment. “Dry beer has gotten off to a big start,” the story began, “but the question is whether the product represents a mere fad or the beginning of viable new category in beer.” As we all know, it soon became clear that “fad” was the answer. In that same issue, my feature story on Bourbon and American Whiskey discussed the category’s “potential resurgence.” It also noted Jim Beam’s decision to expand distribution, in limited quantities, of the recently launched 126-plus barrel proof (then- called) Booker Noe’s Bourbon, for $30 a bottle. In those 1990s issues we explored strategies for merchandising whiskies, the mass marketing of Fighting Varietals (and the launch of Sutter Home’s first Chardonnay), the developing popularity of tequila, and a feature article on branded line extensions. It seems to me that in just over two decades some means of conducting business in the beverage alcohol industry (ie, computerization, the internet, etc.) have changed dramatically. Still, many of the basic themes are recogniza- ble. It’s like looking at a picture of yourself from 21 years ago and then looking in the mirror; you’re the same person, but where did those lines come from? Richard Brandes, Editor-in-Chief 8 • Beverage Dynamics • www.beveragedynamics.com • May/June 2011 Executive Vice President and Group Publisher Charles Forman Tel: 845-426-6072 Fax: 845-426-6423 email: cforman@m2media360.com Editor-in-Chief Richard Brandes Tel: 212-353-3832 Fax: 212-353-8214 email: rbrandes@m2media360.com Managing Editor Jeremy Nedelka Contributing Editors Dan Berger Harriet Lembeck F. Paul Pacult Robert Plotkin Michael Sherer Cheryl Ursin Associate Publisher Anthony Bongiovanni Senior Regional Sales Manager Mark Marcon Senior Regional Sales Manager Debbie Rittenberg Senior Regional Sales Manager Jeanette Sims Art Director Adam Lane Vice President, Circulation and Collateral Services Joanne Juda-Prainito Research Director Eric Schmidt List Rental Manager Cheryl Naughton RETAILER EDITORIAL ADVISORY BOARD Charles Bailes III ABC Fine Wine & Spirits, Orlando, FL Ralph Bondon Berbiglia’s, Kansas City, MO David Breitstein Duke of Bourbon, Canoga Park, CA Jim Shpall Applejack Liquors, Wheat Ridge, CO Hal Gershman Happy Harry’s Bottle Shop, Grand Forks, ND Ron Junge Brown Derby Stores, Springfield, MO Dan Manning Haskell’s, Minneapolis, MN Burt Notarius Premier Liquors, Kemmore, NY Charles Sonnenberg Frugal MacDoogal’s, Nashville, TN Greg Wonsmos Centennial, Dallas, TX M2MEDIA360 President/CEO Marion Minor Vice President, Finance & Operations Gerald Winkel Beverage Dynamics is published by The Beverage Information Group a division of M2MEDIA360 Editorial and executive offices at 17 High St., 2nd Fl., Norwalk, CT 06851 Telephone: (203) 855-8499 Fax: (203) 855-9446 E-mail: rbrandes@m2media360.com

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