Suntory Global Spirits’ Post

www.thespiritsbusiness.com has just announced the exciting launch by Diageo of their new Ready-to-Drink (RTD) offerings in the UK market! This forward-thinking decision by Diageo not only underscores their commitment to staying ahead of the curve but also reflects their deep understanding of the evolving needs and desires of today's consumers. As lifestyles become increasingly fast-paced and on-the-go, there's a growing demand for convenient, portable beverage options that don't compromise on quality or flavor. By introducing Ready-to-Drink offerings in the UK market, Diageo is not just adapting to these changing consumer preferences but also capitalizing on the opportunity to meet them head-on. This strategic move not only aligns with current trends but also sets a precedent for innovation within the spirits industry, demonstrating Diageo's unwavering dedication to delivering exceptional experiences to consumers, wherever they may be. As a passionate advocate for innovation in the wine and spirits industry, I'm excited to see Diageo leading the way with this exciting launch. Cheers to new beginnings and raising a glass to the future of RTDs! #diageo #rtd #spiritsindustry #spirits #innovation #ukmarket

After Diageo had already acquired a minority stake in Ritual Zero Proof through Distill Ventures in 2020, it now went all in. Some numbers that Diageo shared in its press release: "In the United States, the non-alc category has grown retail sales value +31% CAGR over the past five years, with non-alc spirits as the fastest growing segment within adult beverages over that time.(IWSR 2023) 94% percent of non-alc buyers also purchase beer, wine, or spirits containing alcohol, and annually U.S. households (21+) purchasing non-alc beverages spend $292 more than households exclusively purchasing alcohol-containing beer, wine or spirits,(NIQ Beverage Alcohol Vertical) demonstrating the incrementality of the category to beverage alcohol."

This is great news and congratulations Ritual Zero Proof! Here’s how the press release could look if Diageo were an honest and responsible company: HUGE NEWS: Diageo Acquires Ritual Zero Proof, Confronting the Addictive and Harmful Effects of Alcohol Since its launch in Chicago in 2019, Ritual Zero Proof has rapidly become the #1 non-alcoholic spirits brand in the U.S. Today, Diageo is taking a monumental step by acquiring Ritual Zero Proof, fully acknowledging the addictive and toxic nature of alcohol and its impact on individuals and society. We recognize that alcohol consumption can lead to serious health issues, including addiction, liver disease, and mental health disorders. It contributes to accidents, impaired judgment, and can have devastating effects on families and communities. As one of the world’s leading producers of alcoholic beverages, we accept responsibility for the role our products have played in these challenges. By integrating Ritual Zero Proof into our portfolio, we aim to offer safer alternatives that allow consumers to enjoy the social and flavorful aspects of cocktails without the harmful effects of alcohol. Created with a vision to provide a healthier way to enjoy drinks, Ritual’s founders—David Crooch, Marcus Sakey, and GG Sakey—collaborated with experts to replicate the taste and experience of traditional spirits minus the alcohol. The result is an award-winning range of zero-proof alternatives that empower consumers to make better choices for their well-being. This acquisition reflects Diageo’s commitment to addressing the negative impacts of alcohol and adapting to the evolving needs of consumers who are increasingly seeking mindful drinking options. The non-alcoholic spirits category is the fastest-growing segment in adult beverages, signaling a significant shift towards health-conscious consumption. We admit that our industry has contributed to the prevalence of alcohol-related harm, and we are dedicated to being part of the solution. By expanding our non-alcoholic offerings, we hope to reduce the negative effects associated with alcohol consumption and promote a sober lifestyle. As the world’s first accelerator for founder-led drinks brands, we’ve supported Ritual from its inception through its growth and scaling. We’re excited to welcome them into the Diageo family and are committed to promoting products that prioritize health and safety over profit.

HUGE NEWS!  Ritual Zero Proof has been acquired by Diageo! ✨🍸 Since its launch in Chicago in 2019, Ritual has risen rapidly to become the #1 US non-alc spirits brand. Created with a vision to offer a simpler, more accessible way to enjoy cocktails without alcohol, Ritual’s founders — David Crooch, Marcus Sakey, and GG Sakey — consulted with bartenders, chefs, and beverage professionals to capture the essence of traditional spirits, marking a moment with a Ritual cocktail. The result? An award-winning portfolio of zero-proof alternatives. This acquisition demonstrates Diageo’s commitment to the rapidly evolving consumer landscape and dedication to the non-alc category. Non-alc spirits is the fastest-growing category in adult beverages, with 1 in every $4 in US non-alc spent on a Ritual product, according to the latest data from Nielsen. Ritual will now be a part of Diageo’s portfolio, which includes three of the five largest non-alc spirits brands globally by value. As the world’s first accelerator for founder-led drinks brands, we’ve had the privilege of supporting Ritual from its inception through its growth and scaling. We’re excited to see what the future holds for them as they’re welcomed into Diageo - and wish them every success on their next chapter 🏆🌟 #DistillVentures #RitualZeroProof #NonAlcoholicSpirits #CocktailInnovation #FounderLedBrands

This is interesting! Score one for the red-headed step-children. Diageo acquired Astral Tequila (and some more brands) when it bought Davos Brands, essentially so it could get hold of Aviation Gin. But unlike what Pernod subsequently did* when it acquired Castle Brands in order to get its hands on Jefferson’s whiskey, Diageo seems to be integrating at least one of their accidentally acquired brands into its portfolio, by using Astral in a bottled margarita. *Farmed out most of Castle’s other brands - Knappogue Castle whiskey, Clontarf whiskey, etc., plus Plymouth gin** and Power’s whiskey - to a “foster parent”, Lafayette Imports. **Also an accidentally-acquired brand that came along with the ABSOLUT purchase! https://lnkd.in/eEg276fR

Diageo: The Hidden Gem in Your Drink Cabinet What if I told you there’s a company behind some of the most iconic drinks in the world, quietly raking in profits while you enjoy your favorite cocktail? Meet Diageo. They own a 34% stake in Moët Hennessy and are the global king of premium drinks. Think Johnnie Walker, Smirnoff, Guinness, and Crown Royal. Impressive, right? Now, here’s the kicker: Diageo’s magic lies in its unbeatable moat. Their brands have cult-like loyalty, making them nearly immune to competition. Ever tried launching a new whiskey brand? Good luck. The long maturation process creates sky-high entry barriers. Plus, in today’s world, people prefer sipping better, not more. This premiumization trend plays right into Diageo’s hands, giving them strong pricing power. However, recent challenges have created an intriguing opportunity. The LatAm and Caribbean regions are suffering from excess inventory, and Diageo has misjudged demand, leading to a double-digit decline in topline revenue in these regions. The LatAm and Caribbean markets make up 10% of the company's total revenue. Additionally, the new CEO is fairly new and untested, and the CFO was let go due to poor financial forecasting, planning, and communication. Because of these reasons, the stock is trading at a compelling 17x PE NTM and has a free cash flow yield of ~5%. But remember, this is a resilient business with secular demand from emerging markets, which make up 40% of the total topline. Diageo holds a mere 6% of the total beverage alcohol market—a market worth a staggering $962 billion globally. And guess what? Spirits, their forte, are growing twice as fast as beer and wine. With a 6.3% organic growth rate over the past six years and projections of 5-7% CAGR till 2027, they’re on a roll. Diageo’s capital-light model means they churn out high returns on invested capital, scaling effortlessly. In a nutshell, Diageo is not just surviving; they’re thriving. They’ve cracked the code on how to blend tradition with innovation, making them a force to be reckoned with in the beverage world. So, next time you sip that drink, remember the hidden gem making it all possible: Diageo.

Pernod Ricard, headquartered in France, has a large presence in the U.S., with brands like Absolut Vodka and Kahlúa coffee liqueur. The newly formed company could help Pernod Ricard better compete in the American whiskey market where it goes up against giants like Diageo and Jim Beam owner Suntory. Pernod Ricard’s American whiskey brands previously existed within its wide portfolio of spirits, but they will now have their own dedicated unit under the larger company umbrella. In the press release, the company pointed to its recent investments in American-owned whiskey brands like Jefferson's, Rabbit Hole, Smooth Ambler, Skrewball and TX in building up its presence in the segment. The company also owns and operates European whiskey brands like Jameson Irish Whiskey and Chivas Regal. richard black Richard Black, the CEO of North American Distillers. Courtesy of Pernod Ricard USA Black most recently served as the global marketing director for French cognac maker Martell. He pointed to the dynamism of whiskey as a driving factor in building a new company to help Pernod Ricard’s brands reach their potential. “My mission is to harness this potential and drive a singular focus on these brands and our operations, driving us towards our goals and creating a top-tier marketing and sustainable operations team on the back of our peoples' deep-rooted expertise,” Black said. As consumer tastes evolve and the alcohol industry faces competition from other beverage categories, major players in the space are turning to portfolio diversification and honing in on niche markets. The spirits category is projected to be worth $107 billion in 2029, increasing at a compound annual growth rate of 5.27%, according to Mordor Intelligence. Molson Coors, a longtime stalwart of the beer space, has turned to ultra-premium spirits like bourbon to capture a larger market of consumers seeking more expensive spirits. Pernod Ricard also is extending into the lucrative and quickly growing ready-to-drink cocktail market. Earlier this year, it debuted its first collaboration with soda giant Coca-Cola, Absolut Vodka with Sprite.

Shanken News Daily reports......... LVMH---Moët Hennessy To Take 30% Stake In French Bloom Non-Alcohol Bubbly FRENCH BLOOM Moët Hennessy has agreed to acquire a 30% stake in non-alcoholic sparkling wine brand French Bloom for an undisclosed sum, the Wall Street Journal reported. French Bloom includes white and rosé sparklers that sell from $40 to upwards of $100 a bottle. Launched in 2021 by model Constance Jablonski and Maggie Frerejean-Taittinger, French Bloom has doubled in size each year since, and this year is expected to reach half a million bottles (42,000 cases). The move marks Moët Hennessy's first play in the non-alcohol category and comes a week after Diageo's purchase of the Ritual non-alcohol spirits brand. Non Alc with another big statement. Its here to stay and if you are not in the category yet you should think about it. Beverage Solutions || Big Dog New York LLC can help. With over a dozen RTD cocktails/recipes ready to go this could be an easy decision. DM to learn more. Teng Zhao James Gracey ABV Corp

Shanken News Daily reports......... LVMH---Moët Hennessy To Take 30% Stake In French Bloom Non-Alcohol Bubbly FRENCH BLOOM Moët Hennessy has agreed to acquire a 30% stake in non-alcoholic sparkling wine brand French Bloom for an undisclosed sum, the Wall Street Journal reported. French Bloom includes white and rosé sparklers that sell from $40 to upwards of $100 a bottle. Launched in 2021 by model Constance Jablonski and Maggie Frerejean-Taittinger, French Bloom has doubled in size each year since, and this year is expected to reach half a million bottles (42,000 cases). The move marks Moët Hennessy's first play in the non-alcohol category and comes a week after Diageo's purchase of the Ritual non-alcohol spirits brand. Non Alc with another big statement. Its here to stay and if you are not in the category yet you should think about it. Beverage Solutions || Big Dog New York LLC can help. With over a dozen RTD cocktails/recipes ready to go this could be an easy decision. DM to learn more. Teng Zhao James Gracey ABV Corp

Why You Must Attend The 8th Annual USA Trade Tasting? 🤔   USA Trade Tasting 2024 is a great chance to remain ahead of market trends and discover the most recent advancements in the beverage business. USATT, which focuses on education, networking, and brand development, serves as an essential resource for beverage industry professionals. The USATT Conference will have a strong lineup of 30 speakers across two days. On the expo floor, attendees can meet and taste items from interesting brands based in the United States and around the world. There will also be 24 individual sit-down tastings, each presented by a passionate winemaker, skilled distiller, and expert importer. Reasons to Attend USATT 2024: 📌 Networking Opportunities: USATT brings together retailers, importers, distributors, and beverage companies from across the globe, providing a unique platform to connect and establish valuable partnerships. 📌 Knowledge Enhancement: With a conference featuring 30 speakers covering diverse topics, attendees can gain insights into emerging trends, regulatory issues, and successful strategies within the beverage industry. 📌 Tasting Experiences: Explore a wide range of beverages from top brands through 24 intimate sit-down tastings, offering a unique opportunity to savor the diversity of the beverage world. 📌 Consumer Engagement: For the first time, USATT 2024 will be open to consumers, enabling brands to directly engage with a broader audience, gather feedback, and enhance their visibility in the marketplace. Sid Patel, CEO of the organizing company Beverage Trade Network, mentioned, “The conference at USATT is designed to cover real topics and issues that producers face in their businesses. We will talk about the opportunities that distributors and importers can uncover for the US market.” Day 2 is a huge milestone because we invite customers for the first time, giving companies a unique opportunity to connect with a larger audience, collect direct feedback, and greatly increase their visibility in the marketplace. Excitement is building as we welcome trade professionals, traders, sommeliers, bartenders, importers, and distributors to join us for two days. USA Trade Tasting promises to be a great way to gain industry insights and expand your business. Together, let's change Chicago's core and push the beverage industry to new heights. Get more information here: https://lnkd.in/ec3P_S9 #tradeshow #chicago #usa #beverageindustry Sid Patel | Ankita O. | Malvika Patel | USA Trade Tasting | Sommeliers Choice Awards | Bartender Spirits Awards | Kaleigh Theriault | Christopher Bauer | Ryan Crane, CFA | Susan Danenberger | Mark Guillaudeu, MS | Morgan Harris | Arthur Hon | David Keck | Ari Klafter | Jon McDaniel | Daisy P. | Wesley Phillips | Caroline Schrader | Kimberly Shannon | Rachel Speckan | Fishbone Wines Margaret River | Magia de Uco Winery | Island Coquito | Olgar Distillery | Stravaig Spirits | WYNK™ Seltzer + THC