Welcome to Issue #4 of The Quench Report, the Beverage Alcohol newsletter that cracks open the latest buzz so you don’t have to.

What’s on tap for today:

• 🥫 Bar chart race - A brief history of Spirits RTDs

• 📰 “Gallup” - A name that now causes more fear than “Voldemort”

• 🆕 [yellow tail] packaging refresh starts to flow into retail

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WHAT’S ON TAP THIS WEEK

• Aug 27: Nielsen data updated through Aug 16th, Circana data through Aug 17th

• Aug 28: Brown-Forman Q1 results + Pernod Ricard full-year FY’25 report

• Aug 29: PCE Update through July

• Sept 2: Barclays Global Consumer Staples Conference

• Sept 10: U.S. Census update on Beer, Wine & Spirits Inventory

🥫 SPIRITS RTDS - A BRIEF HISTORY

Spirits RTDs began taking off in 2018, right after the peak of the malt seltzer boom - and given the continued fast rise today, we thought people would find it interesting to review a brief history of the category 👇

• When the category began to see rapid growth, the large incumbent spirits suppliers were there… Diageo, Proximo, and Bacardi all had or were planning extensive offerings…
  

• Yet, the most prominent brands today are owned by what was then known as a Wine Company, a Beer Company, and smaller emerging players. This is yet another example of how categories shift fast. First movers don't always win.
  

📰 GALLUP RESEARCH - A DIFFERENT POUR ON THE DATA

On August 13, Gallup dropped its annual alcohol consumption survey, featuring the buzzkill headline:

“U.S. Drinking Rate at New Low as Alcohol Concerns Surge.”

Key finding? For the first time, most Americans think even moderate drinking is bad for your health 😬 👇️ 

After a week of industry convos, here’s what we’re hearing:

1. Denial, Meet Disbelief – Lots of chatter about how the questions were worded. (Classic first stage of grief.)

2. Frustration Uncorked – No real, unified response from the industry. (Hello, stage two.)

But what stat do we really take issue with?

We disagree. Flat cannabis usage ≠ flat cannabis influence. Delta-9 and other THC beverages are sneaking into the mix and quietly eating into alcohol’s share. And guess what? Consumers see them as healthier.

Don’t take our word for it—Health Canada just released a study on perceived substance risk. Alcohol risk? Up. Cannabis drink risk? Down. 👇

So what now? Consumer behavior is shifting…

The real question: What is the alcohol industry going to do about it?

🆕 [YELLOW TAIL] LABEL MAKEOVER: FIRST LOOK

In March, Aussie juggernaut [yellow tail] announced a label refresh. It’s now starting to hit shelves 👇

Our Snap Take:

🟡 The new logo? Cleaner. Crisper. Louder.
🔍 Varietal text = easier to read (and harder to ignore)
🏅 Medals & signatures add a quiet flex of credibility
↕️ Vertical hierarchy? Typically, a marketer’s nightmare is moving a brand lower on the label, but given that this brand usually is below eye level, it makes sense here since people will look down on it and varietal is more important to communicate

TELL US HOW WE DID WITH TODAY’S EDITION

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