Beverage Dynamics

Beverage Dynamics March-April 2012

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 Blue Skies Ahead? I 'm a pessimist by nature, or a "miserableist," as one writer recently termed his psychological condition as an inveterate New York Giants football fan. [What he meant was that no matter how well they might be doing in a game, no matter how far ahead, he stayed miserable because he expected them to lose in the end. And, even when they win, as we all know unexpectedly happened this year, he experiences less a feeling of joy than one of relief that they didn't, once again, blow the game.] So, as a miserableist, I'm pretty hesitant to join those optimists brimming with positive energy. Now, however, I find myself wandering over to the bright side, a smile on my face, and an inkling that our economy, which from late 2007 through mid-2009 was a total wreck, has finally emerged, weakened but gaining strength by the week. Indeed, as most economic indicators have shown in early 2012, the American economy appears to be headed in a sustained positive direction, and wine and spirits sales are likely to pick up along with the economy, particularly among higher-end products. [Of course, as all economists point out, any exogenous events – such as dangerous political crises or wars, huge natural disasters, etc. - could easily change all that.] Still, overall wine and spirits sales volume increased nicely in 2011, according to the latest statistics, just released in the Handbook Advance 2012, published by the Beverage Information Group. U.S. distilled spirits sales volume rose to approximately 197.1 million 9-liter cases, representing a 2.6% gain versus 2010 (which saw an increase of 1.9% sales volume over 2009). And overall spirits retail revenue growth (the combined dollar total of off- and on-premise sales) also increased, by 3.0% to $67.66 billion, a $2 billion jump over 2010. It turns out that a large part of that increase is the result of more sales activity at the premium and above-premium price segments. The same holds true in the wine segment. Total U.S. wine consumption increased by 2.5% in 2011, to 310.7 million 9-liter cases (compared to an overall 1.7% wine volume increase in 2010), the eighteenth consecutive year of wine sales volume increases, according to Beverage Information Group research. Similar to spirits, the move toward high-end purchases continued in the wine segment. Indeed, overall 2011 wine revenue figures show an increase of 2.9% to $27.69 billion, nearly $800 million more than in 2010. So, things are looking up, and the beverage alcohol industry is poised to take advantage. And to help you keep up with the latest trends and activities, we've just launched a Beverage Dynamics Facebook page to make it even easier for followers of Beverage Dynamics to stay apprised of what's happening in the industry. All you have to do is go to www.facebook.com/beveragedynamics and "like" us. Then, those of you who have a Facebook profile can see our ongoing updates in your own newsfeed. Pretty spiffy. Sr. 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 tbongiovanni@m2media360.com Senior Regional Sales Manager Mark Marcon mmarcon@m2media360.com Senior Regional Sales Manager Debbie Rittenberg drittenberg@m2media360.com Senior Regional Sales Manager Jeanette Sims jsims@m2media360.com Art Director Adam Lane Senior Research Analyst Adam Rogers 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 VP Audience Development Joanne Juda-Prainito Production Director Mary Jo Tomei Beverage Dynamics is published by The Beverage Information Group a division of M2MEDIA360 Richard Brandes, Editor-in-Chief 4 • Beverage Dynamics • www.beveragedynamics.com • March/April 2012 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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