Winebits 588: Constellation sells 30 wine brands, drunk shopping, drinking at home
This weeks’ news: Constellation Brands sells 30 wine and spirits labels to Gallo, plus drunk shoppers prefer Amazon and more younger people are staying home to drink
• Constellation sale: The third-biggest wine company in the U.S. is washing its hands of cheap wine after selling a gaggle of less than $10 wines to No. 1 E&J Gallo last week. The brands include Black Box, Clos du Bois, Ravenswood, and Rex Goliath. Originally, Constellation asked for $3 billion and only wanted to sell some brands. But the analysts I talked to said there was so little interest in the sale from potential buyers that Constellation had to sweeten the pot and cut the price to get the deal done.
• Good old Amazon: Where do drunk shoppers go when they’re ready to spend but not remember what they did? Amazon, of course. Almost 90 percent of drunk shopping took place on the Internet retail giant last year, and shoppers spent an average of $444. Yes, that’s an impressive total, but Imagine how much more it might be if Amazon could sell wine the way it sells clothing and shoes (the top two drunk buying items).
• Not in a restaurant or bar: Wine Industry Insight reports that more young consumers are staying home to drink. The reason, which will surprise no one except those in the restaurant business: “Drinking at home is cheaper.”
Funny you should mention Amazon and alcohol today, because today’s Washington Business Journal has a piece about an Amazon job opening for an alcohol policy specialist.
“Amazon.com Inc. is looking for a booze business policy and lobbying expert, and it could portend a push into more alcohol sales for the online retail giant.
The manager of alcohol public policy will be based in Greater Washington and “will create, execute, and manage key public policy issues related to alcohol procurement and sales.”
https://www.bizjournals.com/washington/news/2019/04/09/amazon-planning-a-deeper-dive-into-alcohol-sales-a.html?ana=e_n_set2&mkt_tok=eyJpIjoiWVdJME1URTJObVZtT1RFdyIsInQiOiJSb1pBQlI4dnhFTDhsWUd6QUpNQUd5YnlEQzl5RUNOTUhLZnpRZUtHRllGU25JTHJLRGJCalhCbXZsUGhabkhpMHNaeitPUjZcL2NNaHNWOTBSclV5UUhWaGNuV1dsZGZyMHVZZGVka2FjdTJpTmhZV1ZadTJRZVRDdUQ4WmJzejIifQ%3D%3D
Good luck to whoever gets the job. Maybe I should apply.
the kind of job someone like Craig Wolf could take on..but they’d have to pay him 6+ figures.