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Welcome in, today is Monday, September twenty-first, and we begin with Scotland's Economy Secretary formally pressing the UK Government to reverse protected status for English whisky, per the Diss Express.
Following our earlier report on English whisky securing Geographical Indication status, the dispute now has a formal demand attached, and it turns on definitions that read through to labelling and export positioning. The Diss Express reports Scotland's Economy Secretary, Stephen Flynn, has written to Environment Secretary Dame Angela Eagle, calling the decision wholly unacceptable and urging the UK Government to reverse it. Per that account, Flynn wants the specification amended and the four nations allowed to weigh changes before any collective decision. He says dropping the requirement to use copper pot stills for malt whisky raises fundamental questions about the integrity of the whisky produced, and that the approval came outwith the agreed process between the two governments. A UK Government spokesperson told the paper Scotch's protected status, reputation and production requirements are unchanged. Industry reaction splits on where the risk sits, with some in the trade pointing to the looser single malt standard rather than the English name.
Also today, South Australia's Premier, Peter Malinauskas, has announced a one hundred and nine million dollar support package for the state's grape and wine industry. Winetitles reports he made the announcement at the South Australian Wine Industry Association's annual dinner, and that the package covers government-backed loans, regional aggregation and storage sites for CCA-treated vineyard posts, measures for surplus wine inventory, an extension of the Global Wine Growth Program, and the appointment of a Wine Industry Coordinator. Per the same reporting, SAWIA president Kirsty Balnaves welcomed it and said growers and winemakers have faced an incredibly challenging period. That reporting also puts the state at more than eighty percent of Australia's premium wine, which is what makes the package's terms consequential well past South Australia. Industry reaction leans skeptical, with some in the trade reading capacity removal as a repeat of the nineteen-eighties boom-bust cycle rather than a fix for structural oversupply, and others arguing for demand-side measures instead.
Staying with portfolio moves, Diageo is building a mid-strength range in the UK. Drinks International reports the company has launched a trio of mid-strength versions of its biggest brands at twenty percent ABV: Smirnoff, Captain Morgan and Gordon's, which that account frames as an attempt to capitalise on the moderation trend. Brewbound and BevNET report Diageo as the first major spirits company to scale non-alcoholic spirits alternatives, and describe this as an extension of core brands rather than a new line. Reaction is thin. Some in the trade read the twenty percent tier as filling the gap between full-strength spirits and ready-to-drink cans, while a minority read treats mid-strength as a hedge against committing fully to zero-proof. It also reads straight through to how the moderation set gets merchandised.
Separately, the back office behind American beverage alcohol distribution is consolidating. Brewbound reports Vermont Information Processing has acquired Encompass Technologies, in a deal that merges two of the largest beverage industry technology companies. That account does not carry deal terms. Both platforms sit underneath wholesaler route accounting and sales data, so distributors and suppliers running on either system now have one owner to ask about pricing, integrations and continued data access.
Now, a few more headlines moving the trade today. Deutsche Bank has upgraded Anheuser-Busch InBev and Campari to buy from hold, per Investing.com, with that read staying cautious on spirits, selective on beer and constructive on soft drinks.
Just Drinks reports France has temporarily lifted the alcohol cap for Champagne to fifteen percent, after intense summer heatwaves raised grape sugar levels.
Brewbound reports Summit Brewing, once Minnesota's largest craft brewery and one of the twenty-five largest in the country, is now facing bank foreclosure proceedings.
Just Drinks also reports HiteJinro will close its soju plant in Iksan, with operations at the site due to end in mid-October.
And finally, Pernod Ricard has extended The Glenlivet with a twelve year old Provence Edition, a limited release finished in three French wine cask types, per Shanken News Daily.