The adult beverage industry is complex. Our usual stance on this sector takes an insider look at the benefits of mergers and acquisitions, improving your brand, and complying with regulations. But, that doesn't mean that it can't also be fun and games. There are a lot of ways to consume information about topics you enjoy or are in business with, and the adult beverage industry is no different.
Spirits and liquors are benefiting from an improved market. Shares are higher than the beer with sales rising exponentially since 2017. Much of its success is due to a healthy economy and favorable exchange rates. But, many Americans are turning their fascination domestically purchasing more spirits made in the U.S. Council Senior Vice President for International Affairs Christine LoCascio said: "American spirits, particularly whiskeys, are the toast of the global cocktail scene."
For decades additives like caramel and sugar have been used in the distilling of spirits. The most popular being sugar and caramel. The two sugary additions lend themselves to darker, more vibrant colors. They are used often and can receive quite a bit of controversy. While they are in most distilled beverages, they are exempt from being declared on labels. Using additives can help and hinder the production and sale of spirits because it can change the classification. It's wise to dig deeper to see why they were used and what the industry is going to do moving forward.
Whiskey and bourbon are some of America's leading spirits. They are rich in history and helped shape the country into what we know it to be today. The origins started in Ireland and Scotland, but as people began to settle in the U.S., they brought the production with them. With new crops at their disposal, they were able to modify and recalibrate a unique spin that is all-American. The drink made a lot of appearances. It helped George Washington assemble his first batch of troops, it was on the hip of almost every pioneer who set out to explore the new territory, and it was the spirit of choice during the Civil War.
The brewing and enjoyment of alcohol have been a part of our culture for so long it's hard to imagine a life without it. Today breweries, distilleries, and wineries all produce uniquely different forms of beer, liquors, and wines. The flavor profiles are decided based on the choices of ingredients and the yeasts. It has in many ways become an art form.
For decades, the Brindiamo Group has been helping companies in the adult beverage industry build bigger businesses. We focus on delivering a unique partnership that finds solutions to individual needs. At times it can feel all business, but fortunately, there are moments when we can step back and talk about the areas within the sector that we find interesting and offer a unique perspective.
Within the adult beverage industry, there are three significant supplier associations: Beer Institute, Distilled Spirits Council of the United States, and Wine Institute. Together these commissions have voluntarily established a set of guidelines for marketing alcoholic beverages. Their goal is to restrict the number of times those who are under age are exposed to advertising. While each has established individual guidelines for their sector of the market, there are some common themes.
Today's consumers are interacting with brands in ways that have never happened before. So much of what we do on a daily basis is online. That being said, consumers digest information and advertising on their smart devices and computers. It's the age of convenience and companies are taking advantage by participating in direct to consumer sales models. The food and beverage industry is participating too in a couple of different ways.
Wine has been around for centuries and is synonymous with sophistication. The earliest evidence of fermented wine dates back to 7000 B.C. It has appeared in history throughout critical literary works from authors such as Homer and was harvested by ancient Romans who considered it a staple of their diet.
The success of wine can be attributed to diversity. There are red and whites and various types of each that suit different palettes. The growing and harvesting of grapes is similar for each, but the distinct differences in profiles begin to take shape during the crushing and fermentation process.
Alcoholic beverage packaging plays a critical role in the success of the product. Logistically, the packaging needs to protect the product and the quality for consumption. However, before you can get you beer, wine or spirit into your buyer's home, you need to develop a strong brand image that will attract consumers. How you bottle and sell your alcohol will have an impact on success. Throw into this mix the regulations by the government and the FDA, and you can begin to see the complexity. We've broken down everything you need to know and what to consider when you are packaging your alcoholic beverages.
Anyone who wants to make, sell, import or supply alcohol needs to be aware of the 3-tiered system. After the prohibition, the U.S. government decided to mandate the process with a set of laws that helps control consumption, prevent monopolies, and estimates taxes. Regardless of where you fall, you'll need to understand the system to ensure you are getting the most for your adult beverage company.
Beverage startups are successfully gaining venture capital. The funding is competing with its sister startups in the food sector. In the past year alone, $300 million has been sunk into alcoholic beverage companies. The money is being used by a variety of businesses offering consumers a unique and interactive way to engage with adult beverages. From curated online selections of wines to at-home brewing kits, there's a little something for everyone to get involved.
Whiskey has an adventurous story that dates back centuries. Originating in Scotland and Ireland, the distillation process was started by a group of monks producing what is commonly referred to today as Scotch. As early European settlers began making their way to the Americas, the production method came along for the ride. The new environment, temperatures, and ingredients paved the way for the whiskey and bourbon we know and love today.
The alcoholic beverage industry is unique. While the product offering is limited to wines, beers, and spirits, there are plenty of opportunities for you to carve out a name for yourself. What's the secret? The right mindset, research, and knowing how and what makes your product or process special. At Brindiamo Group, we've been in the industry for decades and watched as companies and brands succeeded in turning massive profits. Getting your foot through the door can be challenging, but with these steps, you'll find financial success.
As cocktail culture takes the United States by storm, bourbon, a highly specialized version of whiskey, has become something of a millennial sweetheart. According to the Distilled Spirits Council, sales of American whiskey grew a staggering 8.1% in 2017.
The demand for alcoholic beverages is growing at a fast rate. Research has emerged and is forecasting predictions of sales reaching over $1 billion by 2022. The breadth of the industry includes beer, wine, and spirits. Countries all over the globe are expected to see an influx in demand for these alcoholic beverages.
There are many reasons why importing alcohol for your business works. A broader product offering invites a more comprehensive customer range and improving your chances of financial success. But, there are a few legalities surrounding imports. The Alcohol and Tobacco Tax and Trade Bureau mandates most of the requirements for importing and selling these goods. They will require various documents from permits to certifications before you can place your first order.
Building and developing a new product takes time, dedication and money. Having access to the right financial resources can help improve chances for success. With funding, you can invest in yourself to make improvements to the products, operations, and team. Most companies find this financing solution through venture capital firms.
The stock market is an investment opportunity that allows individuals to build wealth through the buying and selling of stocks. There is a lot that goes into building out your portfolio, and one of the best ways to achieve success is through diversification. Buying shares across different businesses and sectors are one of the best ways to go about this. The beverage industry provides a lot of opportunities to build out a successful portfolio.
The alcohol and beverage sector is growing at a rapid pace, and many venture capitalists are taking advantage. Over the years, the beverage market has started to experience some long overdue change. The industry is finally going digital, and many companies are offering unique experiences online. Consumers can now find at-home delivery services, tailored selections from sommeliers, and hire a bartender right from their sofa.
The adult beverage industry continues to display profitability. There are many investors seek out this sector to support both established and startups businesses as part of a strategic strategy for investment. Consumer preferences are the core drivers behind which companies receive funding, but there is a shift changing in how the venture capital is acquired. We're diving into the what this development will look like and who will be affected.
Passion drives success. The determination for creating a new product and making room in a crowded market requires a certain spark. The adult beverage industry presents a lot of opportunity for growth. It's a booming business. But regardless of how much passion you have for the company and product you want to create, you will eventually need investors.
The alcoholic beverage industry is extremely profitable, and many people are eager to get into the game. The industry is quite extensive and has room for almost everyone, but the problem many individuals face is how to start. Without a plan in place, the slightest miscalculation can have disastrous effects on the momentum of your business. The good news is, with a simple framework in place, you can create a path to developing a successful distillery.
For your business to be successful, it needs financing. There are a few different methods that will help you achieve your goals, but which one is right for you? From traditional methods like angel investors to newer crowdfunding, there is a lot to navigate. We've decided to highlight some of the different ways to obtain the capital you need.
Getting a business off the ground requires capital. Cash flow is needed for developing your product, hiring the right staff, and implementing your distribution process. There are a few options to get a head start financially, but one of the most lucrative is through the use of investors. Investors provide organizations with a portion of the funding they need to complete their business. They usually offer flexible repayment and can help you make sound decisions on how to move the company forward and ultimately find success. If you are serious about working with an investor, you'll want to address a few areas of your business and compile an effective strategy to position yourself favorably.
Whether you are a wine, beer, or spirits business, there are a few key trends that are posing as challenges in today's market. These shifts are not just affecting us State-side but are present on a global scale. There is a lot of influence from our European neighbors and their attitude toward drinking that will impact how U.S. consumers purchase their beverage products. Additionally, legislation is developing every day that stillers and distributors must comply with in order to reach their customer. We've broken down some of the biggest challenges that the alcoholic beverage industry is facing in 2018.
Amber Beverage Group, a Baltic unit of SPI, has appointed new members to its board. One of which is Jeff Hopmayer. Hopmayer has been on the board of SPI since June 2018, but on the 1st of April, 2018 he joined as a non-executive director. Hopmayer is the former CEO of Blavod and is currently a managing partner for Brindiamo Group, a beverage consultancy firm.
A corporate merger or acquisition can have an exponential effect on growth. They are designed to bring about positive change to a business's finances through the prospect of a deal. These deals aren't straightforward with clear-cut lines. They are working parts that morph and change shape from beginning to end. For a merger or acquisition to be successful, companies should hire a trusted advisor to mediate the transaction and streamline communication. Because of the complex nature of these financial transactions, let's take a look at how they work, how you'll benefit, and where they can go wrong without professional help.
Today's beverage drinker is changing. For years, the news has been dominated by the difference the emerging Millennial generation is making on the economy and consumerism. It's not just salaries, marriage, and the housing market they influence but the adult beverage industry as well. As we start to wrap-up the first quarter of 2018, we wanted to highlight some of the emerging trends you'll see throughout the rest of the year.