As 2024 dawns, we take a look back at the 10 biggest stories that made headlines in the spirits industry last year.
The world of spirits moves so quickly that one month you’re reading about feuds between celebrities and beverage industry giants, and the next you’re learning about firearms allegations and declining alcohol sales. Masu.
It all happened in 2024. Keep reading to refresh your memory on the year’s biggest news.
After a year of retaliation litigation, spirits company Diageo and rapper Sean ‘Diddy’ Combs released a joint statement in January confirming that their legal dispute had been resolved. The legal dispute erupted in June 2023, when Combs claimed the beverage giant ignored DeLeon Tequila, which he co-owned at the time, because of his race.
Diageo has since severed ties with Combs, saying his lawsuit was a sham, and later countersued in October 2023, accusing Combs of “exploiting” allegations of racial hostility to blackmail the company.
The full statement is as follows: “Sean Combs and Diageo have agreed to resolve all disputes between the companies. Mr. Combs will withdraw all claims relating to Diageo and voluntarily dismiss his lawsuit against Diageo with prejudice. Diageo Mr. Combs has no ongoing business relationship with Ciroc Vodka or DeLeon Tequila, which are now solely owned by Diageo.
About 170 Dosley employees lost their jobs following Uber’s decision to end its alcohol delivery service in January. Despite acquiring the e-commerce platform for approximately US$1.1 billion in February 2021, the company said consumers are still enjoying the convenience of a one-stop shop that allows them to deliver multiple types of products using the same app. “I like it more and more,” he said. The company will likely shut down Drizly in favor of the Uber Eats app.
The company said alcohol sales on the Uber Eats app more than doubled from the previous year. It also highlighted that the majority of Drizly consumers also have an Uber account. Drizly is the nation’s leading on-demand alcohol marketplace, working with local retailers to offer consumers a wide collection of spirits, beer, and wine.
“We’re grateful to the Drizly team for being industry pioneers and making significant contributions to the growth of the beverage alcohol delivery category,” said Pierre-Dimitri Gore-Coty, Uber’s senior vice president of delivery.
In more recent news, Drizly has been ordered to repay US$4 million in withheld tips.
Dariusz Plaszewski, co-founder of whiskey distilleries Bimber and Danfile, will stand trial in Poland for crimes he allegedly committed more than 20 years ago, including firearm possession charges, according to a report in a British national newspaper in February. Ta.
In response to the report, both distilleries issued a statement saying that Mr. Plaszewski had relinquished all responsibility for both facilities and that decision-making had been placed in the hands of the existing, experienced team. “While we understand that news regarding his personal legal issues may raise questions and concerns, we remain fully operational and continue to maintain the same level of excellence as before.” We want to assure you that we are committed to providing you with sexual and dedicated service.”
Ewelina Kruszczyk, co-founder of Bimber, and Matt McKay, director of whiskey production at Danfail, are leading the activities of both distilleries. In a statement, they said they would “work with our dedicated staff to ensure there is no disruption to our services.”
In February, the Scotch Whiskey Association (SWA) revealed that the value of Scotch whiskey exports in 2023 increased by 14% compared to 2019. Total global exports in 2023 were worth £5.6 billion (US$7.1 billion), equivalent to approximately 1.35 billion 700 ml bottles.
However, these figures were down 9.5% in value and 19% in volume compared to 2022, which was billed as a year of “bumper harvest” as markets reopened after the coronavirus pandemic. Asia Pacific remains the largest regional market by value, and the United States remains the largest domestic market by value. Growth is expected to slow in 2024 due to rising costs of living.
SWA said the planned reintroduction and doubling of tariffs on Scotch in March 2025 could hinder growth in the sector. When Donald Trump returns to the White House in January, the government is being urged to seek an extended period of tariff-free trade to avoid further damage.
In June, IWSR Beverage Market Analysis found that even though global beverage alcohol sales in 2023 increased by 2% in value, compared to 2022 (where sales increased by 1%), global reported alcohol sales decreased 1% in volume. .
Additionally, it was reported that in 2023, alcohol sales in the U.S. market will decline for the first time in nearly 30 years, with declines in all major alcohol categories except tequila, some U.S. whiskey sectors, and ready-to-drink products. At the market. The decline in alcohol prices was attributed to a “rapid slowdown in demand” due to cost-of-living pressures and a “substantial recovery in inventories weighing on key categories.”
According to IWSR, the global alcohol industry recovery is expected to begin in 2025, with alcohol sales expected to grow at a compound annual growth rate of 1% from 2023 to 2028, led by India, China and the United States. It is predicted.
In July, a strike was called against the Ontario Liquor Board (LCBO) after negotiations between the Canadian government and the Ontario Public Employees Union (OPSEU) broke down.
In the first strike action in the LCBO’s 97-year history, approximately 10,000 OPSEU employees destroyed tools starting July 5 until an agreement was reached two weeks later. The union’s demands included expanding public retail store locations and in-house capacity for warehousing and logistics, and transitioning temporary positions to permanent positions. OPSEU said the ratified agreement, which has since ended its strike, contains “significant improvements” from the LCBO’s previous proposal presented on July 4.
The new contract also included a guarantee that there would be no store closures and a cap on the number of agents (similar to independent liquor stores). The agreement includes improved wages, retirement benefits and benefits, as well as the creation of 1,000 new part-time full-time jobs in retail and 60 new full-time jobs in logistics. Ta.
In August, a screenshot of a leaked email shared on X showed Jack Daniel’s owner Brown-Forman abandoning the company’s diversity, equity, and inclusion (DEI) program. Ta.
In the leaked email, Brown-Forman said he believes that to better reach consumers around the world, “we need to include diverse perspectives and experiences in our decisions and the way we work.” said. As a result, the decision was taken to “adjust our operations to continue to drive business results, while appreciating the current environment in which we find ourselves.”
Eric Bloom, vice president of programs and corporate advocacy at the Human Rights Campaign Foundation, called the move “short-sighted.” “To hastily abandon efforts to ensure a fair, safe, and inclusive working environment for LGBTQ+ people based on the manufactured outrage of MAGA bullies is bad business and… It will leave behind a million LGBTQ+ customers.”
The deal, which is expected to take 12 months to complete, will see Highland Park owner Mr Edrington sell his blended Scotch brands The Famous Grouse and Naked Malt to William Grant & Sons in September. An agreement was reached.
Edrington CEO Scott McCloskey said the decision to offload blended whiskey was in line with the company’s strategy to focus on its core strengths and growth opportunities in the ultra-premium spirits category. said. “We believe now is the right time for Edrington to exit the blended Scotch category and focus on its core portfolio of ultra-premium spirits brands.
“The Famous Grouse is a much-loved brand that has consistently performed well in its category during its time as part of Edrington, and Naked Malt has continued to build on that reputation.
“We are confident that these brands are well positioned for continued success as part of the William Grant & Sons portfolio.”
On October 11, China’s Ministry of Commerce (MOFCOM) announced that European manufacturers will be forced to sell their products in response to escalating trade tensions between Beijing and Brussels over the EU’s approval of additional tariffs of up to 35% on Chinese-made electric vehicles. Imposed temporary anti-dumping duties on imports of brandy and cognac. .
The Treasury had previously said it would not apply anti-dumping measures to EU spirits, but the retaliatory U-turn means European producers exporting to China will have to pay deposits under interim anti-dumping duties. This move is aimed at increasing the competitiveness of domestic categories. This would likely lead to higher prices for consumers. One industry group warned the European Commission that this would have an “extremely negative impact” on EU-based producers. They called on China to urgently step up its efforts to find a negotiated solution with its Chinese counterparts.
Swedish distillery Makmilla was acquired by former director Lennart Herro and investment firm No.1 Capital after filing for bankruptcy on August 19th.
In a statement posted on its website at the time of the filing, Chairman Petter Ski said that “unfortunately it is not possible to continue the company’s operations” and that the management and board of directors “are not aware of the company’s profitability and cash flow.” “I’ve had a hard time coming to terms with it,” he said. ” At the time, Herro was the main shareholder of Makmilla Svensk Whiskey and the company’s largest lender.
The new contract was announced on October 11, and a statement from the distillery said its main goal now is to “retain as many skilled employees as possible at Macmilla.” “With this new venture, we want to revive and strengthen Mackmilla’s proud heritage. We look forward to an exciting future for both our staff, barrel owners and brand.”
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