Wine Sales and Distribution Surging as Consumer Demand is Booming

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Oct 25, 2022, 08:45 ET

PALM BEACH, Fla., Oct. 25, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Wine sales have surged across the U.S. owing to innovation in flavor, color, and packaging of the product. Furthermore, the continued importation of high-quality wines into the U.S. is likely to sustain a solid customer base and propel market growth in the near future. The emergence of COVID-19 triggered a worldwide catastrophe, on a scale never seen before. Aside from endangering human health and life, the pandemic had a significant detrimental influence on companies all around the world. However, not all industries have been equally affected. While the great majority of on-premises stores were required to close during the start of the pandemic, the off-trade wine business in the U.S. has enjoyed good sales. The COVID-19 pandemic has led many people to use e-commerce for day-to-day operations as well as for ordering alcohol, thus driving the off-trade distribution channel segment. A report from Grand View Research projected that the U.S. wine market size, which was valued at USD 63.69 billion in 2021 is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. Wine consumption has become a sign of social status, especially among the millennials and young generation, which is driving the market. The report said: "Mergers, acquisitions, and consolidation have been occurring among wineries worldwide. Companies are increasingly focusing on producing new products to gain market share in the world… Key market players focus on strategies such as innovation and new product launches to enhance their portfolio offerings in the market." Active companies in the markets this week include Splash Beverage Group, Inc. (NYSE: SBEV), Brown-Forman Corporation (NYSE: BF.A) (NYSE: BF.B), Constellation Brands, Inc. (NYSE: STZ), Ambev S.A. (NYSE: ABEV), Diageo plc (NYSE: DEO).

The Grandview article continued: "The table wine segment led the market and accounted for a revenue share of over 80.0% in 2021. It is one of the oldest and most common types of alcohol consumed in the U.S. The availability of true table wine with a premium appeal to customers, easy availability, and affordable prices have resulted in increased sales in the U.S. Furthermore, it is expected to continue growing due to the increased consumption of liquor and the rising demand for it as a celebration wine. The sparkling wine segment is anticipated to expand at the fastest CAGR of 7.7% from 2022 to 2030. The market is likely to be driven by a rise in the consumption of champagne and prosecco. In addition, manufacturers have offered a diverse selection of low-cost items in the sector category, which has played a significant role in driving the segment. Furthermore, sparkling wine is expected to grow fast due to the benefits it provides to the heart and skin. It also helps to improve gut health and digestion as it contains polyphenols from red grapes, which promotes the growth of good gut bacteria."

Splash Beverage Group, Inc. (NYSE American: SBEV) BREAKING NEWS: Splash Beverage Group's Copa Di Vino Now Available at University of Alabama Athletics Department Events - Splash Beverage Group, Inc. ("Splash" or the "Company"), a portfolio company of leading beverage brands, today announced that Copa Di Vino will be the exclusive wine available at the University of Alabama's Athletics Department events, which includes NCAA football games in Bryant Denny Stadium . Through this agreement, Copa Di Vino will also be included in various broadcast and digital advertising conducted by the athletic department.

Copa Di Vino is the leading producer of premium wine by the glass in the Unites States. Famously launched with multiple appearances on the hit television series, Shark Tank, the brand is now widely recognized for premium wines without the need for bottles, corkscrews, or glass.

Robert Nistico, Splash Beverage Group's Chairman and CEO commented, "This is a very exciting and unique opportunity for Copa Di Vino to not only see increased sales as we continue our execution in large venues, but to benefit from an association with one of the more widely recognized "brands" in the U.S. The University of Alabama Crimson Tide has the largest fan base in the SEC. Alabama football has appeared in 9 national championship games since 2009, and U of A Athletics hosts over 1.4 million spectators each academic year, including over 800,000 at Bryan Denny Stadium. Copa di Vino, through this agreement, will be allowed to use the Athletics Departments logos and we'd note that Alabama is the #1 selling brand in college athletics. U of A fans will see Copa signage throughout the venues. We're thrilled with the exposure that Copa will receive." CONTINUED… Read the Splash Beverage full press release by going to: https://splashbeveragegroup.com/news-media/

Additional recent developments in the markets this week include:

Brown-Forman Corporation (NYSE:BF.A) (NYSE: BF.B) recently announced it has reached an agreement to purchase the Diplomático Rum brand and related assets from Destillers United Group S.L. (Spain). Upon completion of the transaction, Brown-Forman will add the Diplomático Rum family of brands to its portfolio and acquire a production facility located in Panama.

The Diplomático Rum family of brands is the No. 1 super- and ultra-premium rum and the No. 2 super-premium+ rum worldwide (IWSR, 2021). Super-premium+ rum has grown at an annual rate of 17% over the past five years, with rum accounting for approximately 8% of global spirits.

Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, recently published its inaugural ESG Impact Report – an evolution of the company's Corporate Social Responsibility reports – highlighting established commitments and targets to positively impact the planet and its people, and progress made toward achieving them.

To enable Constellation to better meet stakeholder expectations regarding information provided on these important topics, and to better reflect the company's ongoing efforts to address pressing environmental and societal needs that are important to its communities, consumers, and employees, this ESG Impact Report has been prepared with reference to the Sustainability Accounting Standards Board alcoholic beverages standard. The report also considers the recommendations of the Task Force on Climate-related Financial Disclosures in developing and disclosing Constellation's approach to managing climate risk and opportunity and references the United Nations Sustainability Development Goals.

Ambev S.A. (NYSE: ABEV) recently announced that the Company's annual report on Form 20-F for the year ended December 31, 2021 was filed with the U.S. Securities and Exchange Commission - SEC (www.sec.gov) on March 18, 2022 and is available on the Company's website (ri.ambev.com.br) and also on the Company's page on SEC's database (www.sec.gov/edgar/). ADR holders may receive a hard copy of the Company's complete audited financial statements contained in the Form 20-F free of charge, upon request.

Net income rose to 3.06 billion reais ($583.56 million), way ahead of a Refinitiv poll forecast of 2.11 billion. Analysts at XP Investimentos praised the results as strong, highlighting a "healthy" price increase - which they said should be cherished at a moment of high inflation.

Diageo plc (NYSE: DEO) continued their multi-year NFL partnership, which includes the "Kick off with Crown Royal" campaign by dedicating $25,000 from the Crown Royal Generosity Fund to the Southern Smoke Foundation, an organization created to take care of food and beverages workers who need it most. The donation is a part of the award-winning whisky's $1 million commitment to hospitality workers, active duty military members, and veterans throughout the NFL season.

As the first-ever whisky sponsor of the NFL, Crown Royal continued their pledge to honor those who help fans celebrate gameday by partnering with NFL Legends, Bo Jackson and DeMarcus Ware, in a cook off at the Southern Smoke Festival. The Legends collaborated with local Houston restaurateurs to create two unique Crown Royal infused BBQ sauces and went head-to-head in a BBQ sauce competition. Consumers 21+ voted for their favorite sauce, raising further funds for the Foundation. After Team Bo Jackson took an early lead, Team DeMarcus Ware came back to seal the victory for the best Crown Royal infused sauce.

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