Italy’s Campari Group to enter champagne sector with Lallier acquisition

The Campari Group is set to become the first Italian company to own a Champagne brand.  Announced last week, Campari has entered into negotiations to acquire French company Ficoma, to acquire 80% of the shares of Champagne Lallier, and other group companies, with a view to total ownership. Campari’s shares ended up 2.9% after the announcement, outperforming a 1.7% gain in Milan’s blue-chip index.FTMIB.

Ficoma sold one million bottles of Champagne in 2019, including 700,000 bottles of Lallier.

If the negotiations lead to a sale, it will mark the entry of the first Italian player into the Champagne category.

Ficoma is the family holding of Francis Tribaut, the heir to four generations of winemakers and Champagne producers in France’s Marne region. The Champagne brand Lallier was founded in 1906 in Aÿ, one of the few villages classified as ‘Grand Cru’ in Champagne.

The potential transaction scope includes the brands, related stocks, and real estate assets including owned and operated vineyards, and production facilities.

Campari Group, founded in 1860, is the sixth-largest player worldwide in the premium spirits industry, trading in more than 190 countries. Campari owns 21 plants worldwide and has its own distribution network in 21 countries.

The company’s growth strategy is to combine organic growth through strong brand building and external growth via selective acquisitions of brands and businesses.

The company has a portfolio of more than 50 premium and super-premium brands, including Aperol, Campari, SKYY, Grand Marnier, Wild Turkey and Appleton Estate.

UK Brewery Samuel Smith Delivers Beer by Shire Horse During Lockdown to Boost Morale

This made my day!

Samuel Smith’s, Yorkshire’s oldest brewery, has set up a Shire horse home-delivery service for the residents of Tadcaster, north Yorkshire.

The service, which was announced this week via their social channels will provide locals with cases of beer, cider, wine, snacks and “potatoes” to customer’s doors while pubs are closed.

The horses are already long-standing employees and are usually brought in to help the brewery team deliver casks in and around Tadcaster, where Samuel Smith’s stables are located.

Simon Crook, stable manager at the brewery, said: “We’re making people’s lives a bit happier, more smilier. The children are absolutely loving it because they’ve got nothing to do now. They come out when they hear us, they’re waving but keeping their distance.”

Customers are being asked to keep two meters away from the cart during delivery, in accordance with the government’s lockdown guidelines.

Samuel Smith’s initiative has already brightened up life in Tadcaster. One customer, who received a delivery last week, said her two children “absolutely loved the horses delivering to us, especially as we see the horses on our walk to school most days but due to the lock-down we haven’t seen them for a while.

The family-run brewery, which was founded in Tadcaster in 1758, set up the traditional-style delivery service 15 years ago, and according to their website everything in the yard “is done quietly because that’s the way the horses like it”.

https://www.samuelsmithsbrewery.co.uk/

The Hand-Sanitizer Manufacturing Exchange Is Launched in Canada

Cosmetics Alliance Canada, the Canadian Consumer Specialty Products Association and Spirits Canada today launched the Hand-Sanitizer Manufacturing Exchange as part of their efforts to stop the spread of COVID-19.

Hand-sanitizers have been recognized as one of the effective tools in combatting the transfer of the COVID-19 virus and a measure that can be easily and safely utilized by everyone in stopping the spread of this disease.

“Our three organizations have come together to aid in faster, safer and effective scale-up of hand-sanitizer production across Canada”, said Cosmetics Alliance Canada CEO, Darren Praznik.

“People are coming together to do what they can in this crisis but Canadians need access to safe products. DIY hand-sanitizers, the latest trend on social media is at best ineffective against COVID-19 and at worst potentially dangerous. We pledge to do our best to ensure that Canadians have an adequate supply of safe and effective hand-sanitizer for you and your family,” says Shannon Coombs, President of CCSPA.

Developed in collaboration with Health Canada, the Exchange provides a single platform where firms interested in making hand-sanitizer or contributing to its manufacture will be able to exchange information to locate available materials, services or manufacturing capacity needed for production.

The initiative parallels Health Canada action expediting approvals of companies interested in making hand-sanitizer, a product regulated under Health Canada’s Natural Health Product Regulations, part of Canada’s Food and Drugs Act.

The Exchange reminds all interested parties that they should consult Health Canada’s March 242020 bulletin outlining how hand-sanitizer products and the companies making them may seek expedited approvals.

Jan Westcott, CEO of Spirits Canada noted that “As governments all across Canada are mobilizing to ensure the supply of critical medical equipment and health products, we and our Cosmetics and Consumer Specialty Products partners are pleased to be able to do our part in helping with the disinfectant component of the fight.”

Joining the three Exchange developers are the Canadian Manufacturers and Exporters (CME) who will host the Exchange on their website.

Websites:

Cosmetics Alliance Canada – https://www.cosmeticsalliance.ca/

Canadian Consumer Specialty Products Association- http://www.ccspa.org/

Spirits Canada – https://www.spiritscanada.ca/

Canadian Manufacturers and Exporters – https://cme-mec.ca/

 

Ontario Adopts Temporary Measures to Support Bars, Restaurants and Alcohol Retailers During COVID-19 

The Alcohol and Gaming Commission of Ontario (AGCO) has announced a number of temporary measures to support local businesses in Ontario that have been significantly impacted by the spread of COVID-19.

Effective immediately, licensed restaurants and bars in Ontario will be allowed to sell alcohol with food takeout and delivery orders between the hours of 9:00 am and 11:00 pm. All active liquor licensees may immediately begin offering this service if they choose and there is no application process or fee required. Liquor may be sold for takeout or delivery through a third party, such as a food delivery service or ordering platform, provided they are acting on behalf of the licensee.

Additionally, the AGCO is temporarily allowing authorized grocery stores and liquor manufacturer retail stores to begin selling alcohol as of 7:00 am in order to support early shopping programs for vulnerable people and to provide greater flexibility to retail stores. The temporary extension of hours also provides greater flexibility for all alcohol retail stores to choose their hours of sale to meet public health objectives. Consumers are encouraged to confirm operating hours with retailers.

The AGCO is also extending by three months the term of all active liquor, gaming and cannabis licences, authorizations and registrations during this extraordinary situation. In all cases, licensees do not need to do anything. Existing licences will simply remain in effect for the extended period, at no additional cost.

“Everyone at the AGCO is concerned for the individuals, families, businesses and communities affected by this virus. We are working closely with the Government of Ontario to find ways of supporting Ontarians and the sectors we regulate during these challenging times” states Jean Major, Registrar and CEO, AGCO.

Global Wine Experts Describe Impact of Turbulence Ahead

Wine Intelligence’s global expert network on the impact of Coronavirus: ‘Christmas trading’ in Italian supermarkets amid a gloomy outlook, calm in Brazil and South Africa, fewer Chinese tourists in Australia, silver linings in South Korea, growing concern in the UK and US

How are consumers behaving in your market?

AUSTRALIA: The most noticeable element is that we have seen declining cellar door sales as the normal influx of Chinese tourists during Spring Festival failed to appear. So far the on-premise sales in Australia seem to be holding up.

BRAZIL: Compared to Europe, Brazilians seem to be less scared. Carnival was 2 weeks ago and there hasn’t been much of an impact. Regular people don’t seem to be changing habits, apart from a few people wearing masks on the streets. Some companies are taking measures to isolate employees – McKinsey, for instance, have shut down their offices in São Paulo, because their neighboring office had one suspected case.

ITALY: The first and most striking event was the assault on supermarkets by people filling their trolleys with pasta, sauces, mineral water, and other goods for fear of being out of stock. The director of an important Italian wine & spirits group, who had recently spoken to the manager of a retail chain, confirmed to me how in recent weeks the points of sale of large retailers have made a turnover close to that of Christmas. For the tourism industry, the crisis period started two weeks ago, with an average of 80% of cancellations (especially of foreign tourists), which has led many hotels to close temporarily. More generally, the on-trade channel is now beginning to suffer, both due to the reduction of customers and as a result of government measures to discourage too close socialization opportunities (in quarantined areas the on-trade premises must close the shutters at 6 pm).

SOUTH AFRICA: Probably too early to tell, but so far it doesn’t seem as if there is a major change. I am hearing that wine tourism is suffering a bit, which will obviously impact on cellar door wine sales. We are a bit behind the curve and possibly the fact that it’s summer has also helped.

SOUTH KOREA: We know the damage to consumer confidence is big. But it is not easy to say how much right now. People are avoiding seeing each other face to face, so socializing is not really happening. Similarly, face to face business meetings are not happening – salespeople are not so welcome at their clients’ bars, restaurants or shops. There are not many people on the streets – not many cars either.

SPAIN: So far, everything seems the same. Masks were bought long ago but people haven´t gone in for the “toilet paper craze” as in other places.

USA: Restaurants and bars are already feeling the impact as people are going out less. On the whole, the on-premise will take a much bigger hit. People are already eating out and going out to bars less. On the other hand, I could see this helping online ordering services like Drizly and Minibar and in food, Grubhub and Delivery.com, as people stay in more and order in more. I saw a post on Facebook recently that someone had shared about Postmates advertising a “no-touch” service or something to that degree to further allay any concerns.

We’re yet to see event cancellations, but that could be just a matter of time. The big issue in a market like Las Vegas is that in addition to both domestic and international tourists, we rely heavily on delegates who attend the many large-scale conferences here – Linda Crisman, Regional Manager Western USA, Jackson Family Wines

UK: On the surface, it feels like there isn’t much dramatic change. London’s Tube is still packed at rush hour, and hardly anyone seems to be wearing masks. We’re hearing from on-premise that bookings are down on normal for the time of year, and events businesses are getting particularly nervous as clients are deferring decisions until the last minute. The news seems to move so fast; it feels a lot easier to defer rather than decide.

What are your predictions for the wine category for the remainder of 2020?

AUSTRALIA: The effects will last long after the virus has peaked – consumers will be spending more cautiously both domestically and in key export markets. The tourism business is still dealing with the after-effects of the fires, so it will be a while before we see a return to normal. From the export point of view we are hoping that some of the excess supply in China will be sold through towards the Mid-Autumn Festival period. Vintage forecasts from ABARES (national commodity forecaster) is predicting a below-average vintage size which will help offset the fall in demand.

ITALY: It will be the most difficult period since the methanol scandal in 1985. Our inbound tourism industry has done so well in the past few years that it has reversed the long term trend of consumption decline in the domestic market – we will have to wait a while for international tourist numbers to recover. I am sure that once the emergency is resolved, perhaps with the summer season, the domestic Italian consumer will resume their love story with the aperitifs and the various socialization occasions. Until then, I foresee some difficulties for wine businesses, especially small ones, which have focused on an important part of their sales on the cellar door and have grown reliant on international tourists.

SPAIN: We´ve still to see the worst effects but the summer will approach fast and here it will help reduce conditions that favor contagion. The big question will be whether the tourists show up in their normal numbers.

SOUTH AFRICA: I think the major global grocery retail businesses will be extremely cautious in their ordering pattern against the current scenario. In the local market, we may see some sales lost from people not attending large gatherings/restaurants etc as much, and we expect the conference industry to take a hit. Wine tourism will take a while to recover because leisure trips to South Africa are often planned a long way in advance, and we may not see the full extent of the effect for a year or more.

SOUTH KOREA: Companies in the sector are planning on 20-30% declines in their sales vs their original plan for the year. People are not going to the shops – they prefer on-line shopping. In Korea, we cannot sell wine online yet, but we understand that the government will allow online sales of wine temporarily, maybe as soon as April – it will only be click-and-collect, not full delivery, at least not yet. But it is a good start. I expect that, sooner or later, maybe within the next couple of years, the online wine market will be opened up.

UK: So far the government is resisting imposing restrictions on the public, but this will change soon. We understand the medical experts are expecting the peak of infections in the UK in about 6-8 weeks’ time, at which point restrictions may start to be lifted. Supermarkets will do just fine, but it’s the on-premise, hotels and events companies which will have a hole in their revenues – somewhere around 15% of their annual sales – which won’t be made up in this calendar year.

We haven’t seen anything change yet from a retail sales perspective as yet, but we have already seen a drop off in Travel Retail (ferries, airports). Supply has been rather lumpy as shipping lines have had to adapt their schedules to China and Singapore port closures. Looking ahead I’d say that the [UK] On Trade is in for a tough time, clearly festival volumes are up in the air and in retail, I’d expect local small stores to do well – Simon Lawson, General Manager, Casella Family Brands (Europe) Ltd, UK.

USA: The big unanswered question for Americans is how bit the outbreak will get. We are losing faith in the government response – it seems very slow and complacent, and who knows how many confirmed cases we will have when the virus testing gets to a sensible number [estimated at <3,000 tests completed as of 9 March]. When events like Indian Wells [major tennis tournament in California] are canceled, it feels like we are just seeing the tip of the iceberg.

Source:  Wine Intelligence