Market Watch, November 2019

NOVEMBER 2019 MARKETWATCHMAG COM MARKET WATCH 9Deutsch Announces Joint Venture With Gray Whale Gin With super premium gin showing strong growth in the U S Deutsch Family Wine Spirits has made its first move in the category forming formed a 50 50 joint venture partner ship with Jan and Marsh Mokhtari founders of the high end Gray Whale gin label Terms werent disclosed The 43 abv Gray Whale 40 a 750 ml is currently present in the California and Connecticut markets Deutsch plans to launch it nationally in three waves with about 17 markets expected to come on stream in the next 12 months While production is currently tiny at 2000 cases Deutsch says it intends to scale the brand through its national network noting that the over 30 gin segment has been increasing by double digits lately Building a scaled spirits portfolio of craft and super premium brands is a high stra tegic imperative for us says Deutsch Family president Tom Stef fanci We believe theres significant opportunity to grow Gray Whale as we move to national distribution The Mokhtaris will be full time partners on the project Made in Sebastopol California Gray Whale sources botanicals from the California coastline and donates 1 of sales to environ mental group Oceana The brand joins Redemption whis key Bib Tucker Bourbon Mastersons rye and Luksusowa vodka in the Deutsch Family spirits portfolio Jackson Family Acquires Balo Vineyards Jackson Family Wines has announced the purchase of the Balo Vine yards winery vineyard and tast ing room on Highway 128 in the heart of Anderson Valley in Mendocino County California The purchase includes the 14 acre property with 65 acres planted to organically grown Pinot Noir a winery with a 7000 case produc tion capacity and a tasting room but not the brand or existing inventory The purchase price was not disclosed but the property had been listed at 46 million by realtor Mark Stevens Jackson Family currently owns or farms more than 300 acres in Ander son Valley including Edmeades Skycrest Sable and Maggy Hawk Most of the vineyards are planted to Pinot Noir but the company recently expanded its Chardonnay holdings Today the entire company produces an estimated 6 million cases per year across 40 brands and five continents Stew Leonards Opens Big New Jersey Store Stew Leonards the northeast ern specialty grocer with sales of more than 400 million has opened a new location in New Jersey complete with a full wine spirits and beer depart ment The 80000 square foot store situated in the Paramus Park mall in Paramus features a prominently positioned beverage alcohol department measuring nearly 6000 square feet With the opening of the store the nearby free standing Stew Leonards Wine Spirits has closed Stew Leonard Jr president and CEO of the grocery chain says that while no more new stores are currently planned the Paramus location could serve as a model in New Jersey down the road Stew Leonards Wine Spirits now has eight loca tions three in Connecticut three in New York and two in New Jersey all indepen dently owned and operated The new store offers more than 1200 wines 800 spir its and 500 beers High lights of the department include certified wine special ists premium wine brands private label Hidden Gem wines and a walk in beer cooler Food and wine pairing events are planned mwThe EditorsCampari Takes Majority Stake In Montelobos MezcalCampari Group is entering the fast rising mezcal category agreeing to take a 51 stake in the Montelobos brand as well as sister label Ancho Reyes spicy liqueur The two brands had sales of approxi mately 7 million last year with the U S accounting for two thirds of the business The purchase price was 357 million and the deal is expected to close before the end of the year Montelobos and Ancho Reyes are currently handled by William Grant Sons in the U S Montelobos jumped 54 to 10000 cases in the U S last year according to Impact Databank Campari CEO Bob Kunze Concewitz said the move is part of the companys strat egy to continue to premiumize our portfolio with a particular focus on the key U S market enhancing our exposure to the strategic premium on premise distribution channel Mezcal has been on a steep rise in the U S with 247165 cases shipped in 2018 according to Impact Databank up from 67050 cases in 2013 That rapid growth has pressured agave supply in the spirits native Mexico Montelobos currently controls 100 of its agave supply mwTHROUGH THE GLASSWith a majority stake in Montelobos mezcal and sister label Ancho Reyes liqueur Montelo bos lineup pictured Campari continues to premiumize its portfolio in the U S market