MHW 2021/2022 Pressbook by gregoryvine

IN THE PRESS 2021/2022

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March 9, 2022 Circulation:222,800 Digital

Las bebidas alcohólicas premium incrementan su cuota de mercado Isabel Blanco ¿Cuáles son las preferencias del consumidor actual? ¿A través de qué canales se está comprando después de la pandemia? ¿Cuáles son las dificultades que atraviesan las bodegas o empresas del sector de las bebidas alcohólicas en la actualidad? Expertos como Gabe Barkley, director ejecutivo de MHW; Steve Melchiskey, presidente de USA Wine West; Mary Ann Pisani, directora financiera de MHW, y Chrissy Beaudette, directora de desarrollo de cliente de MHW han participado en un seminario online organizado por la compañía MHW para descifrar cómo será 2022 para el sector del vino y de las bebidas alcohólicas. MHW es una empresa que aporta soluciones técnicas, legales y logísticas y presta asesoramiento a productores extranjeros de vino o bebidas alcohólicas que quieren exportar sus productos e implantarlos en diferentes mercados internacionales. Su equipo está formado por especialistas en importación, almacenaje, etiquetado y cuestiones legales como los aranceles. El recorrido de esta empresa en EEUU es muy destacado y en la actualidad se han erigido como voz de referencia en el sector por la cantidad de datos e información que manejan sin ningún tipo de sesgo. Son un referente en cuanto al conocimiento de las tendencias de consumo de vino y bebidas alcohólicas en el ámbito internacional y, por tanto, son un socio estratégico para las compañías del sector que quieran exportar sus productos a otros mercados en un entorno seguro.

Gabe Barkley explicó que 2022 "será un año en el que aparecerán grandes oportunidades, pero también habrá que dar respuesta a numerosos retos. Las empresas tendrán que decidir en qué canales de venta van a estar presentes y deberán encontrar el proceso de logística más adecuado". En la actualidad, tiendas especializadas, supermercados o el ecommerce conviven como puntos de ventas. Por ello, las empresas deben saber en cuáles tienen que estar presentes, por ejemplo la irrupción del comercio electrónico fue una de las opciones favoritas de compra durante la pandemia y esto implicó que muchas bodegas o productores tuviesen que empezar a considerar ese canal. Hoy, estas empresas se enfrentan a consumidores cada vez "más conscientes y exigentes" que han cambiado su comportamiento y, como señala Barkley, "todavía no sabemos exactamente cómo evolucionarán". Ante esta situación, los agentes del sector tendrán que buscar la fórmula para mantenerse a la vanguardia y prestar atención a los movimientos de los mercados y a las preferencias de los consumidores para poder ofrecer la solución más adecuada.

Una de las conclusiones del análisis detallado del sector realizado en este webinar es que los consumidores prefieren consumir vinos o bebidas alcohólicas premium y que el precio influye positivamente en la percepción que tienen de una marca, por lo que bajar los precios de un producto se convierte en una estrategia poco recomendable para posicionar un producto en un nuevo mercado. De hecho Steve Melchiskey asegura que "la pandemia ha incrementado el consumo de vinos premium y en 2022 los usuarios gastarán más en ellos para disfrutar del vino". Chrissy Beaudette coincide en apuntar que el lujo será tendencia en 2022. En este contexto, la recomendación es poner en valor el producto a través de actividades como catas o eventos en los que profundizar en la historia de la marca para enamorar al consumidor. Y también consideran que la figura del sumiller estará en alza porque serán los encargados de recomendar los productos, poner en valor la historia de la marca y resaltar aspectos como la sostenibilidad para vincular al consumidor, que en general está cada vez más receptivo a saber más sobre el producto, incluidos los millenials. La inflación es una de las dificultades que preocupa en el sector y en la historia del sector del alcohol la logística vive un momento especialmente complicado por los costes que afronta, lo que sin duda obliga a replantearse muchos procesos y a buscar la innovación en cada acción empresarial. En definitiva, el sector del vino y de las bebidas alcohólicas afrontará grandes retos en 2022 como la evolución de su propio concepto, la adaptación a las plataformas de ecommerce, la puesta en valor de los productos de proximidad y orgánicos, el efecto de la comercialización de experiencias y la importancia de la creación de un relato propio de marca. ¿Estamos preparados?

March 9, 2022 Circulation: 65,000 Digital

EL BOLETÍN DEL VINO

March 10, 2022 Syndicated Circulation: 100,000 Social

Instagram | Las bebidas alcohólicas premium incrementan su cuota de mercado @vinetur_oficial | Syndicated: Twitter, Facebook, Pinterest, LinkedIn, Tumblr

NOVEMBER/DECEMBER 2021

Max Arriagada is the national sales director for Santa Rita Estates, representing Cigar Box Wines.

Rolling with

CONFIDENCE PHOTO: LORI MOFFATT

CIGAR BOX WINES IS POISED TO SHAKE UP THE POPULAR PREMIUM CATEGORY

bev biz

Purveyors of Potential IMPORTER/DISTRIBUTOR MHW CONTINUES TO HELP BRANDS PAVE A PATH TOWARD SUCCESS, NO MATTER THEIR SIZE OR SCOPE by Allyson Reedy There are a lot of fancy ways to describe what Manhasset, New York– based importer, distributor, and service provider MHW does for the scores of brands they work with. (“Scores” is an understatement; to date, they’ve brought to market more than 100,000 spirits, wines, and malt beverages from more than 100 countries around the world.) Operations, logistics, compliance, sales distribution, accounting, laser-focused marketing—the list goes on long enough to make your head spin. To put it simply and most effectively, then, MHW has the backs of both aspiring and established alcohol brands.

They have the backs of the industry newcomers behind top-quality passion projects such as Raphael Yakoby, whose Hpnotiq liqueur was imported and distributed by MHW before he sold it for a rumored eight figures back in 2003. They have the backs of big brands looking to separate from their parent companies and strike out on their own, including Proximo Spirits’ 1800 Tequila, Edrington’s Macallan Scotch Whisky, and Agave Loco’s RumChata. And they have the backs of companies with celebrity stakeholders, including George Clooney’s Casamigos, Jay-Z’s Ace of Spades, and Kendall Jenner’s 818 Tequila. In short,

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every beverage alcohol supplier they work with, large or small, benefits from the knowledge, experience, and drive MHW puts in service of helping them maximize their potential. “We meet folks from all walks of life,” says MHW founder and longtime partner John Beaudette. “It’s pretty cool that, in a given week, we’re talking to [so many] industry players and people coming from the outside with dreams and visions. It’s rewarding because, at the end of the day, if they win, we win.” Over his decades-long tenure, Beaudette has worked with a lot of winners, supporting them through MHW’s suite of back-office services

PHOTO COURTESY OF MHW

Meet the MHW executive team. Front row, left to right: Gabe Barkley, CEO, and John Beaudette, founder and partner. Back row: Chrissy Beaudette, director of client development; Rebecca Beaudette, director of human resources; John Wrenn, COO; Alexandra Morey, director of operations; Scott Saul, executive VP; Brigid McCabe, director of growth marketing; Nagesh Gupta, director of product; Jeanette Jankiewicz, director of operations; and MaryAnn Pisani, chief revenue officer.

so that they can focus on the liquid; in 2017, meanwhile, CEO Gabe Barkley partnered with private equity firm NextGen Growth Partners to acquire MHW and lead its next phase of growth. “The passion people bring to this industry, and the passion they bring to the products that they launch, is really second to none,” says Barkley. “One of the most incredible things our team does for our clients is match that passion and find ways to help them execute on it to find success.” Their experience is more sought after than ever: This year to date, MHW has increased its staff by 40% to meet the demand for its services, including helping brands to navigate the e-commerce and direct-to-consumer platforms whose growth was spurred early in the pandemic by stay-at-home orders. While many of MHW’s larger clients already had a well-established presence online, the smaller brands did not; to eliminate that disadvantage, the company worked closely in spring 2020 with platforms like Drizly, Thirstie,

ReserveBar, and Speakeasy to secure placement for labels such as Cotswolds Dry Gin, Cheurlin Champagne, and One With Life Organic Tequila. “The rabbit’s out of the hat,” Barkley says. “It’s the start of a broader conversation that can yield more opportunities for beverage producers across all types. It’s a great new place for brands to be successful in the market. We’re excited about that, because in many ways, that dovetails with our primary focus, which is helping these brands find opportunities to succeed. For our part, it’s about putting them in a position to do that effectively. How can we take the burden of all the back-office services and partner with them so they can focus on making sure they have great liquid and are reaching the consumers they’re targeting effectively? If we can take care of that middle, we can allow them to find success. And if we can allow them to find success through all of those different avenues, we’re really excited about what that means for us, but we’re also

really excited about what that means for those brands.” With more ways to get bottles and cans to consumers; explosive new categories on the market (hello, RTDs!); social media helping to push product out the door; and permits and approvals for new products being issued at a much quicker rate by the U.S. Alcohol and Tobacco Tax and Trade Bureau, the future of beverage alcohol is looking bright enough to, well, make your head spin again. “I think the next five to ten years are going to be the most dynamic this industry has ever seen,” Beaudette says. “There are lots of really neat things happening [all] at the same time”—not the least of which is MHW’s October acquisition of two major importers, distributors, and wholesalers, USA Wine Imports and USA Wine West, significantly growing its leadership in the global wine trade. And for new brands in search of a prosperous route to market or existing ones hoping to expand their reach, MHW will have their backs.

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September 30, 2021 Circulation: 10,300,000 Digital

As The Trade Wars Cool Off, How Will The Spirits Industry Change? Kate Dingwall

In June, the beverage alcohol industry collectively breathed a huge sigh of relief as retaliatory tariffs, a result of a longstanding EU-US trade dispute completely unrelated to the alcohol industry involving illegal subsidies grained to Airbus, de-escalated. The trade war has majorly disrupted the spirits industry, hitting distillery and winery workers, importers, exporters, distributors, retail and restaurant workers, farmers, packaging companies and logistic providers. Established brands were staring down the barrel of ever-incoming tariffs, and new brands were hesitant to compete in an unstable market. “During the tariff debacle, no EU product could feel safe,” says John Beaudette, the founder and partner of leading American alcohol importer and distributor MHW Ltd. “The Office of the United States Trade Representative (USTR) could periodically adjust both the tariff rates on the products already impacted and add new categories and products from other countries.” What does this relief look like for the alcohol industry? Read on as Beaudette, a board member of the Distilled Spirits Council of the United States (DISCUS) and the National Association of Beverage Importers, dives into what the American booze landscape looks like with newly-tepid tariffs. (Of note, American Whiskeys remain the only spirit subject to 25% tariffs connected with an ongoing dispute on steel and aluminum.) How do tariffs affect the industry? John Beaudette: “Brands impacted by 25% tariff hikes either raised prices, reduced costs (by making cuts in advertising, marketing, and manpower), or some combination thereof. Many brands assumed they might be next, triggering significant shipments of products from non-tariff EU producers into the US as insurance against a potential tariff. This had significant repercussions concerning logistics systems—container shortages, public warehouse space challenges, and pier drayage delays drove up costs for everyone. “ “On top of all the uncertainty and challenges tariff-impacted brands faced, the pandemic struck and put many brands in a position where they could not execute a sales strategy catered to the changing dynamics of consumer consumption trends. For instance, for the last decade, US imports of single malt Scotch had been growing at around 6% annually. Suddenly, Scotch imports dropped 4% in 2020 when overall spirit volumes increased almost 5% across all categories. Through no fault of their own—they were ensnarled in the tariff war. The reality is their loss was someone else’s gain. New brands could play ball.”

“Another casualty of the arbitrary tariffs was the elimination of the US as a target for new brands seeking to export. With an extra 25% in costs, both US importers and foreign producers opted to wait for a better time to launch something new. So we’re about to see a huge onslaught of new brands? JB: “There is no question we have entered another new brand acceleration period, similar to what happened after the advent of the internet. We have seen an increase of 36% in new brand entrants through June 2021 vs. the prior year. To handle the surge, we have already increased our staff by 40% and another 20% by year-end.” “On the supply side, a good indicator of new brand initiatives and activity can be seen in the number of alcoholic beverage formulas submitted and processed by the TTB. For 2020, formula submissions of primarily spirits and malt products surpassed 24,000 up 70% from five years ago. Another metric from ‘bw166’ indicates that the TTB has approved over 21,000 spirit labels over the last twelve months ending July 2021, up 20% for the year, but up 33% for the last three months.” Will new brands be able to enter the market on such short notice? JB: “To meet the ever-changing and often fleeting demands of beverage alcohol consumers, some significant supplyside momentum builders have converged to help new brands and players jump on the opportunity. While the Trump administration threw the industry a curveball with tariffs, on the flip side, they provided a significant federal excise tax relief program (referred to as the ‘Craft Beverage Modernization Tax Reform Act’) for both domestic and foreign qualifying producers. It represents a large permanent economic opportunity for new, emerging, and established brands.” “For spirit producers, it offers huge incentives to invest in their brands or launch a new one. To put it into perspective, a qualifying producer of 40% ABV bottle could save over $1 million in excise taxes for up to 50,000 9 liter cases. This represents a 70% reduction in taxes, allowing investment in people, marketing, and other brand-building activities. Foreign producers from all over the world have never seen an incentive program like this and they are excited to be collaborating with their US importer to invest in sales efforts in that market.” Are these brands brand new, or international brands entering the US? JB: ““One of the major drivers of new spirit brands entering the US market is the potential for a lucrative exit/sale opportunity. Global drinks companies like Diageo, Constellation Brands STZ +0.8%, and Pernod Ricard pay hefty premiums to entrepreneurs who can build a brand—it’s one of the reasons why so many celebrities have entered this industry in the last few years. With their social media power, they can create demand and therefore build a brand almost overnight.” “Brand loyalty is low right now—new entrants with a good product and package and credible story can grab customers very quickly.” How has e-commerce played a role in this surge of new brands? JB: “We’ve heard industry players say the pandemic moved the calendar up five-plus years in terms of alcohol e-commerce and getting consumers comfortable with online buying and home delivery. Case in point: third-party marketing and fulfillment platforms such as Drizly, ReserveBar, MiniBar, Thirsty, and many others saw their businesses triple and quadruple overnight.” “One byproduct of the pandemic will be a movement to grant spirits similar limited direct-to-consumer sales opportunities, consistent with the way wines are handled. Craft spirit distillers and importers want the ability to ship bottles to customers within and outside their state, especially when their brand is not available in that market. Wines use a controlled system that tracks the shipments of products direct to consumers, ensures state taxes are collected, and mandates receipt signatures by only those aged 21 or above. Spirit players want that same opportunity. Kentucky has already initiated a program where licensed distilleries throughout the US and importers representing foreign brands can ship spirits direct to consumers on a limited basis. It will be interesting to see which other states initiate similar models.”

Are we going to see more RTDs? JB: “The hard seltzer phenomenon has been shocking to me. In my 30+ years in this industry, I have never witnessed anything quite like it. Flavored Malt beverages, a category within beer, climbed by 251 million cases in only two years. Most of that growth was the explosion of hard seltzers. This matches the 251 million cases of total spirits consumed in the US in 2020!” “In 2020, the US added 45 million cases of alcohol consumption [according to Beverage Information Group]. Wine added 3.5 million cases, spirits added 15 million cases, and beer/malt-based added 25 million cases. Considering beer is over 10 times the size of spirits in Volume, Spirits are certainly garnering shares from wine and beer.” “A large portion of new formula and label approvals handled by the TTB relate to spirit-based ‘Ready To Drink’ (RTD) cocktails and hard seltzers. While the majority of hard seltzers, such as White Claw and Truly, are made with neutral malt ferments, many new entrants want to move consumers to actual spirit-based cocktail-type offerings. While some are rum-, tequila-, and whiskey-based, the majority of new RTDs are vodka-based, reflecting the fact that one-third of all spirits consumed in America today are vodkas. 20% of the new products we see at MHW are now spirit-based RTDs.” “I see a ‘jump ball’ coming whereby today’s hard seltzer consumers (downing 200 million+ cases per year) can be reeled in by marketers of traditional spirit drinks, cocktails, spirit-based RTDs, wines, and traditional beer brands. You can bet the folks at White Claw, Truly, and the others will do their best to make sure they control the jump ball tip-off.”

February 1, 2022 Circulation: 95,500 Print

December 6, 2021 Circulation: 617,800 Digital

Insider Tips for Choosing the Right Distributor Andrew Kaplan “It’s not just about the numbers and hitting the goals,” says James Stewart, the co-proprietor of Yountville, Californiabased Stewart Cellars, about his distribution partners. “It’s about making friends. These people that I’ve worked with over the years, they’re my friends. I’m genuinely interested in their well-being and the well-being of their families.” A relationship like the one Stewart has with his distributors doesn’t always happen. But as those with experience point out, there are certain steps a small to midsize wine or spirits supplier can take at the outset that can increase the chances that it does—while ensuring strong sales and representation in the local market. From determining the right size of distributor to understanding where your brand will fit within a portfolio and becoming aligned on expectations early, SevenFifty Daily spoke with suppliers and distributors to get insider tips on choosing distributor partners wisely. Study the Distributor’s Book Looking at the distributor’s overall portfolio is a crucial step in determining if your brand fits. “Look at some of their priority brands; can you see your brand getting its fair share of attention?” asks John Beaudette, the president and founder of national import, distribution, and service provider MHW, Ltd. “That’s a critical element.” “I see which other Oregon brands are in their portfolio and where they are priced,” says Rebecca Oliver, the national sales manager for Lemelson Vineyards in Carlton, Oregon. “The sales rep may have 40 Oregon Pinot Noirs to sell to one account, so you’re just trying to capture mindshare. You need to stand out.” Also important: does the distributor carry any in-demand brands? “I like to see what key brands that they have in their book would make them relevant to a buyer,” says Oliver. “That buyer, that sommelier, is going to want to talk to that salesperson. So, they’ve already got a foot in the door.” Suppliers should also consider whether they would differentiate a distributor’s portfolio or fit in with it seamlessly; either can be valuable. “Some distributors are better known for beer, wine, or specific types of spirits,” says Laura Kanzler, a regional sales manager with Hotaling & Co. in San Francisco. “You might be their only shiny whiskey, or their only shiny rum, or maybe you want to be with a distributor who is known for their rum book so you’ll just be one of the cool kids in that book.” The distributor will be evaluating the same thing about you as well. Nick Demjen, the general manager for emerging spirit brands at Horizon Beverage in Massachusetts, says he strategically evaluates the impact a new brand will have on his portfolio. “Will this new potential brand take away from existing sales?” he says. “If it’s only going to complement your existing portfolio, then it’s something that you would consider to bring on.” At the same time, there’s a balance. “Obviously the lifeline of a distributor is bringing on new brands and new products but at the same time you also still want to grow your existing supplier brands and not take any focus away from them,” adds Demjen.

Know the People—Not Just the Company For a smaller winery or craft distillery trying to grow its business, the talents and experience of each individual member of the distributor’s sales team can be crucial. As a result, Murray, of Boundary Breaks, recommends taking some time to research the individual members of the distributor’s sales team. A lot of this information can be found on their websites. “If their bio says a salesperson has been with this distributor for eight years, that tells me they’re probably a professional salesperson that knows wine and is respected by the accounts in their territory,” he says. “If there’s a lot of turnover, they may be new to the industry and not have the relationships with the accounts that would be well-established and trusted.” “There is this joke that the whole wine industry is like a game of telephone,” says Seth Fagelman, the president and co-CEO of Serendipity Wines. “Part of our job is to make sure that the brand’s story gets told correctly and makes its way all the way to the end customer. So having really knowledgeable people is critical to making sure that story gets told properly.” By knowing the individual team members, brands can attempt to connect with them one on one. “Are there some key sales reps that you can sort of latch on to that are going to be the ones that spark that fire for your brand?” adds Beaudette, of MHW.

February 2, 2022 Circulation: 166,700 Digital

RÉUSSIR AUX ETATS-UNIS Sharon Nagel "Il faut tenter de nouvelles choses et prendre des risques mesurés..." Sous ses airs de prospérité, le marché américain cache de grandes tendances sociétales susceptibles de bouleverser l'avenir du vin. Professionnels et analystes se réunissent pour tenter d'inverser la tendance. D’après le dernier rapport de la Fédération des grossistes américains (WSWA), les ventes de vins ont régressé de 5,4% sur les douze mois se terminant en septembre 2021, voire de 8,9% sur une période de trois mois. Des chiffres à comparer à la hausse de 5,9% des spiritueux sur l’année glissante. En cause, une conjugaison de facteurs que recense le rapport annuel de la Silicon Valley Bank publié la semaine dernière. Pointée du doigt, la transition générationnelle des « Boomers » vers les « Millennials » entraîne des mutations profondes, car le vieillissement et départ en retraite des uns ne coïncide pas avec l’adoption du vin des autres. Mais d’autres facteurs sont aussi à l’œuvre : la « promiscuité » des consommateurs, peu fidèles aux vins ; les marges Selon Gabe Barkley, pour identifier les marchés où on souhaite s’implanter aux exorbitantes pratiquées par les restaurants ; la lenteur avec laquelle la filière adopte USA, il faut bien se rendre compte que les les outils numériques ; la discordance entre ses pratiques marketing et les attentes des Millennials s’installent souvent dans les Etats jeunes consommateurs ; et la montée en puissance d’un mouvement néo- où la vie est moins chère comme le Colorado, l’Arizona ou le Tennessee. - crédit prohibitionniste que les professionnels peinent à contrer. Résultat : les années fastes photo: MHW qu’a connu le secteur tirent à leur fin, amenant plusieurs professionnels de haut niveau, dont Rob McMillan auteur du rapport de la SVB, à lancer un appel à l’action. Leur objectif ? Inscrire le vin dans le cadre d’un grand programme de recherche et de promotion chapeauté par le ministère de l’Agriculture (USDA). Importateurs, producteurs, distributeurs et détaillants ont déjà mis la main à la poche pour financer la première des deux années requises pour mettre le programme en marche, sachant qu’au moins 50% des caves nationales devront l’approuver pour qu’il soit recevable par l’USDA. Le modèle traditionnel n’est plus adapté D’ici là, il n’est pas question de rester les bras ballants, et plusieurs pistes de développement s’offrent déjà aux opérateurs, y compris les exportateurs français. « La pandémie a encouragé (et récompensé !) l’innovation au sein de la filière vin, incitant les producteurs à adopter une attitude de rupture », insiste Gabe Barkley, PDG de la société d’importation et de distribution MHW. « Les opportunités qui s’ouvrent aux vins importés sont bien plus importantes désormais, grâce à des stratégies impliquant le commerce électronique et les ventes directes ». Après avoir fait un bond de 240% pendant la pandémie, l’e-commerce et les plateformes numériques ne représentent pas un circuit de plus, mais plutôt une voie d’accès privilégié au marché. « Par le passé, de nombreuses caves de petite ou moyenne taille auraient expédié une palette de vins vers les Etats-Unis puis auraient compté sur leurs importateurs traditionnels pour vendre les produits à travers la chaîne de distribution. Ce modèle devient extrêmement difficile à pérenniser dans le contexte commercial actuel, sans la participation active du producteur. Celui-ci augmente ses chances de réussite en étant partie prenante et en participant activement à ses ventes dans les circuits électroniques ». Pour les vins français, au positionnement plutôt premium, le commerce électronique offre un canal de distribution bien adapté : « Le prix moyen d’une bouteille de vin vendu en ligne s’élève à 27$ contre 12$ dans les réseaux suivis par Nielsen ». Marketing digital et bouteilles en carton recyclables Condition requise pour s’attaquer à ce circuit? Savoir parler aux jeunes consommateurs, car 53% des achats de vins ligne sont effectués par les moins de 40 ans, d’après une analysé réalisée par MHW. « Une stratégie digitale – englobant les réseaux sociaux – est indispensable pour toucher les Millennials et la Génération Z », insiste Gabe Barkley, dont la société s’est consolidée en fin d’année avec le rachat d’USA Wine West et USA Wine Imports. « Si elles ne l’avaient pas déjà fait, les entreprises les plus performantes ont profité de la pandémie pour investir dans le marketing digital ». L’innovation s’exprime aussi dans le choix du packaging. « L’un de nos clients, Schenk, est en train d’investir dans une bouteille en vin en carton recyclable. Il a même créé une cave à bilan carbone négatif. C’est ce type d’initiative qui vous fait remarquer et reconnaître de manière positive sur un marché concurrentiel ». En guise de conseil à ceux qui souhaitent aborder ce marché, l’importateur affirme : « Il faut tenter de nouvelles choses et prendre des risques mesurés… »

English Translation

February 2, 2022 Circulation: 166,700 Digital

SUCCEED IN THE UNITED STATES Sharon Nagel "We must try new things and take measured risks..." Under its air of prosperity, the American market hides major societal trends that could upset the future of wine. Professionals and analysts come together to try to reverse the trend. According to the latest report by the Federation of American Wholesalers (WSWA), wine sales fell by 5.4% over the twelve months ending September 2021, or even by 8.9% over a three-month period. Figures to compare to the 5.9% increase in spirits over the rolling year. At issue is a combination of factors identified in Silicon Valley Bank's annual report published last week. Pointed out, the generational transition from the "Boomers" to the "Millennials" leads to profound changes, because the aging and retirement of some does not coincide with the adoption of the wine of others. But other factors are also at work: the "promiscuity" of consumers, who are not faithful to wines; the exorbitant margins According to Gabe Barkley, to identify the practiced by restaurants; the slowness with which the sector adopts digital tools; markets where you want to the discordance between its marketing practices and the expectations of young establish yourself in the United States, you must that Millennials often settle in states where consumers; and the rise of a neo-prohibitionist movement that professionals are realize life is cheaper such as Colorado, Arizona or struggling to counter. As a result, the good years in the sector are coming to an Tennessee. - photo credit: MHW end, leading several high-level professionals, including Rob McMillan, author of the SVB report, to launch a call to action. Their goal? Include wine as part of a major research and promotion program led by the Ministry of Agriculture (USDA). Importers, producers, distributors, and retailers have already put their hands in their pockets to finance the first of the two years required to start the program, knowing that at least 50% of national cellars will have to approve it in order for it to be admissible by the USDA. The traditional model is no longer suitable Until then, there is no question of remaining with dangling arms, and several avenues of development are already available to operators, including French exporters. "The pandemic encouraged (and rewarded!) innovation within the wine sector, encouraging producers to adopt a disruptive attitude, "says Gabe Barkley, CEO of the import and distribution company MHW. "The opportunities open to imported wines are now much greater, thanks to strategies involving e-commerce and direct sales". After jumping 240% during the pandemic, e-commerce and digital platforms are not another circuit, but rather a privileged access route to the market. "In the past, many small and medium-sized cellars would have shipped a range of wines to the United States and then relied on their traditional importers to sell the products through the distribution chain. This model becomes extremely difficult to sustain in the current commercial context, without the active participation of the producer. The latter increases its chances of success by being involved and actively participating in its sales in electronic circuits." For French wines, with a rather premium positioning, e-commerce offers a well-adapted distribution channel: "The average price of a bottle of wine sold online is $27 compared to $12 in the networks followed by Nielsen". Digital marketing and recyclable cardboard bottles What are the requirements to tackle this circuit? Knowing how to talk to young consumers, because 53% of online wine purchases are made by people under 40, according to an analysis by MHW. "A digital strategy - including social networks - is essential to reach Millennials and Generation Z," insists Gabe Barkley, whose company consolidated at the end of the year with the acquisition of USA Wine West and USA Wine Imports. "If they had not already done so, the best performing companies took advantage of the pandemic to invest in digital marketing." Innovation is also expressed in the choice of packaging. "One of our customers, Schenk, is investing in a recyclable cardboard wine bottle. He even created a cellar with a negative carbon footprint. It is this type of initiative that makes you notice and recognize in a positive way in a competitive market." As advice to those who wish to approach this market, the importer says: "We must try new things and take measured risks..."

October 4, 2021 Circulation: 456,600 Digital

The Alcohol Industry Is Entering a New Golden Age—Here’s Why John Beaudette John Beaudette explains how increased market access, favorable tax rates, growing consumer demand, and an explosion of new products forecast a bright future for all tiers

We are inundated with reports of wine sales softening and heading for decline, and even hard seltzer sales waning as consumers look to non-alcoholic beverages and recreational cannabis products now legal in most states. I’ve worked in this industry for over 30 years, the last 25 at MHW Ltd., where we assist new brands entering the U.S. market, and I see a more optimistic future unfolding for the beverage alcohol industry—one fueled by an explosion of new products, consumer demand, increased market access, favorable tax rates, and improved federal and state regulatory efficiencies. For professionals across the ecosystem of beverage alcohol, I believe we are entering a golden era of opportunity and profitability. Consumer Demand Is Growing, and Lines are Blurring While we will continue to deal with shifts between off- and on-premise due to the COVID-19 pandemic, total consumption by volume is on the rise. In 2020, according to data from the Beverage Information Group, U.S. alcohol consumption increased by 45 million cases, with wine adding 3.5 million cases, spirits adding 15 million cases, and beer/malt-based beverages adding 25 million cases (hard seltzers in this category added 130 million cases in 2020 alone). Consider also that we continue to add almost three million potential consumers each year (those turning 21) who are well-versed in digitally learning about products and the companies and personalities behind them. It’s no secret that brand loyalty is not easy to maintain today, and new entrants with a good product, good package and credible story can grab customers quickly. Social media and digital marketing are critical tools used effectively by many new brands. Consumers are now very comfortable jumping across categories, often in the same day. Given the blurring of lines across spirits, wine, and beer categories, I see a category “tug of war” coming. Today’s hard seltzer consumers (200 million+ cases) can be reeled in by marketers of traditional spirits, cocktails, spirit-based ready-to-drinks (RTDs), and wines, as well as traditional beer brands. There’s little doubt that the folks at large brands like White Claw and Truly will do their best to make sure they control that tug of war. It will be an interesting marketing battle.

An Explosion of New Products—Domestic and Imported As a leader in assisting new brands entering the U.S. market over the last 25 years, MHW Ltd. has become an excellent barometer of trends in new entrants and product types. At our company, we have seen an increase of 36 percent in new brand entrants through June 2021 versus the prior year. A major factor behind this increase is the federal excise tax relief program (referred to as the Craft Beverage Modernization and Tax Reform Act) for both domestic and foreign qualifying producers passed permanently in 2020. This represents a huge permanent economic opportunity for new, emerging, and established brands. Designed to help create jobs and provide investment incentives for American distilleries, wineries, and breweries, the program also benefits importers of foreign producers. “At our company, we have seen an increase of 36 percent in new brand entrants through June 2021 versus the prior year.” Consider what this means for spirits brands: A qualifying producer making a product at 80 proof can save over $1 million in excise taxes for their collective brands at approximately 50,000 nine-liter cases. This represents a 70 percent reduction in taxes, allowing producers to invest in people, marketing, and other brand building activities. Foreign producers from all over the world have never seen an incentive program like this before and are excited to be collaborating with their U.S. importers to invest in this marketplace. Imported spirit brands represent a significant portion of the U.S. market (approximately 42 percent) and tend to be in the rapidly growing premium segment. Now, more than ever, foreign producers from around the globe see the U.S. as the most important place to be. Fortunately, the Alcohol and Tobacco Tax and Trade Bureau (TTB) has done a commendable job in the timely processing of both operating permits for businesses entering the industry and label approvals required before brands can enter the market. In recent years, many producers experienced long lead times, but they have been dramatically reduced, which is particularly impressive considering the record-setting demand for new business and brand submissions. For example, U.S. craft distilleries increased by nearly 11 percent last year, closing in on 2,300 according to the American Craft Spirits Association. The number of licensed importers and wholesalers is also growing rapidly. On the supply side, a good indicator of new brand initiatives and activity can be seen in the number of alcoholic beverage formulas submitted and processed by the TTB. For 2020, formula submissions covering primarily spirits and malt products surpassed 24,000, up 70 percent from five years ago. Another metric, from industry research group bw166, indicates that the TTB has approved over 21,000 spirit labels over the last 12 months ending July 2021, up 20 percent for the year and up 33 percent within those last three months. As it relates to imported spirit brands, roughly half of the brands we see entering the market are created primarily for the U.S., even if they are sold elsewhere. One of the major drivers of new spirit brands entering the country is the potential for a lucrative sales opportunity. Global drinks companies like Diageo, Constellation Brands, and Pernod Ricard pay hefty premiums to entrepreneurs who can build a brand—it’s one of the reasons why so many celebrities have entered this industry in the last few years. With their social media power, they can create demand and therefore build a brand almost overnight. Our company has provided import and distribution services to many brands that have sold for remarkable multiples in the past, such as Casamigos and Tequila Avión, leading to an influx of new brands and industry players that want to replicate that success. Non-celebrity brands also create tremendous valuations. Just a couple of months ago, a brand we serviced, RumChata, was sold to E. & J. Gallo for an undisclosed sum which we can safely assume was a handsome price. Greater Market Access and Regulatory Assistance Spirits have never enjoyed the direct-to-consumer (DTC) sales option that consumers in many states have today with wine, particularly across state lines. Spirit brands that did not have any presence on an ecommerce platform were at a huge disadvantage when the pandemic hit. I was involved in a full-court press to get many of our client brands connected to one or more of the ecommerce platforms. Many of the state governors and their state liquor control agencies were extremely helpful in finding ways for in-state producers to enhance their distribution options.

One byproduct of the pandemic will be a movement to grant spirits limited DTC sales opportunities, consistent with the way wines are handled. Craft distillers and importers want the ability to ship bottles to customers within and outside their state. Wines use a controlled system that tracks the shipments of products directly to consumers, ensures state taxes are collected, and mandates receipt signatures by only those aged 21 or above. Spirit players want that same opportunity, and it may be coming: Kentucky has already initiated a program where licensed distilleries throughout the U.S. and importers representing foreign brands can ship spirits directly to consumers on a limited basis. It will be interesting to see which other states initiate similar models. Recognizing that the Biden administration is currently seeking input on whether there are existing competition and trade barriers at play in our industry, I see DTC programs for spirits and beer as complementary to the existing three-tier system that has proved so successful. We have a great market with record-breaking consumption demand supported by a record-breaking supply infrastructure that is fighting to keep pace.

VINTNER NOVEMBER / DECEMBER

2021

T H E B U S I N E S S R E S O U R C E F O R T H E W I N E I N D U S T R Y.

O U T LO O K 2022: Experts Offer Sage Advice For Th e N e w Year

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BEYOND THE PINOT:

CHRISTINE CLAIR DIRECTS THE FUTURE OF WILLAMETTE VALLEY VINEYARDS 231 W. Hickman St., Winchester, KY 40391 231 W. Hickman St., WincHeSter, kY 40391

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VINTNER MAGAZINE

NOVEMBER / DECEMBER 2021

TIPS FOR MANAGING THE SUPPLY CHAIN CONUNDRUM

r. Richard Obiso, owner of Whitebarrel Winery in Christiansburg,Virginia, said his business had very few issues concerning supply chain management before the onset of the COVID-19 pandemic in early 2020. “Items like shipping and packaging materials, yeast, and wine production chemicals were all abundant and available,” Obiso said. “During COVID, we had little need for items because, in Virginia, we were crippled by tight restrictions and we decided to reduce our 2020 production and hold our 2019 vintage in tanks and barrels until the pandemic subsided. “As everyone knows, the pandemic continues to rage on, and now supply chain issues are in crisis mode.” It’s not a stretch to say supply-chain management has become synonymous with being problematic in many industries these days. Whether you attribute it to the pandemic or believe the problem businesses face today to be rooted farther back, shortages are leading to bottlenecks and disruptions are causing problems in other parts of the supply chain. It’s becoming a snowball effect that’s leading to more shortages, new delays, and higher prices. To cut costs, more manufacturing is taking place overseas and people have relied more on online shopping during the pandemic. Christine Beaudette Tinelli is the Director of Client Development

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VINTNER MAGAZINE

at MHW, a company that handles the back end for businesses that make beverage alcohol. She said supply chain management challenges won’t be going away anytime soon and said business owners should expect to endure problems throughout all of 2022. “Delays are the biggest root of everything,” Tinelli said. “All these shortages really come from the fact that all the products are here, but not in the right place.” The answer can be simplified to planning ahead and forecasting farther out, she said. “Just expect delays in every aspect of the supply chain,” Tinelli said. “It’s going to take longer for transit. Labor shortages are going to affect how you can get juice. “It’s going to take longer to make wine available. We’re not expecting this to go away in the short term, so you’re going to need to preorder.” This has been the case for Lowell Jooste, who said transit time was delaying his wine’s arrival at his urban winery, LJ Crafted Wines. “Our only issue has been that full barrel deliveries from Napa to San Diego are now every second week instead of every week,” Jooste said. Ensuring your product continues making it to the shelves is important, Tinelli said, even though all companies are facing the same supply

NOVEMBER / DECEMBER 2021

W W W. V I N T N E R M A G . C O M

chain challenges. “If you’re getting brand-loyal customers, they will find your brand and reorder it,” she said. “It’s going to be tough if you get the consumer hooked, and they go to look for it in the store and it’s not there.” eCommerce can be a winery’s best friend, she said. “You want the consumer to be able to get your wine,” Tinelli explained. “You can use third-party commerce clubs and direct-to-consumer wine options.” Obiso said Whitebarrel is actively making moves to address the global supply chain crises. He said they’re planning ahead and double-checking their plans, they’re sourcing from multiple vendors from different areas of the country and world, and are planning far in advance to allow time for materials to arrive. Tinelli said that’s the right idea. Diversity in sourcing is one of many tips she has for wine businesses that are looking to stay ahead of the supply chain monster. Glass shortages are a big obstacle to tackle — especially with specialty sizes such as 187 mL and 375 mL bottles. “Make sure you’re thinking through your glass needs for the year,” Tinelli said. “Maybe commit to more glass. Get locked in. It may be pricier, but it’s something to think about.” Switching to screw caps and other synthetic closures can also be a solution, she said, given cork shortages. “There are still a lot of wines that use cork,” Tinelli said. “In this particular supply chain, even less available than before. It can be hard to pivot away and change current SKUs, I get that. But with new ones coming out — new vintages — you can make tweaks unless you’re afraid it would compromise your brand. “For day-to-day drinking at home, people like not using the wine opener and twisting off the cap, and you can still put great wine in those bottles. It’s something to think about.” Tinelli said some of her customers are expanding their portfolio and offering more premium products to protect their price range and offset higher costs. It’s one tactic, she said, but it must be done

W W W. V I N T N E R M A G . C O M

with care. “You need to look for other expenses and see where you can adjust,” Tinelli said. “You really don’t want to have to raise it too much. You want to stay competitive in your landscape.” In addition to materials, you have to be prepared in case of problems with your equipment. Obiso said pursuing a spare parts program has been a worthwhile endeavor for Whitebarrel. “During our 2021 harvest, our crusher-destemmer died,” Obiso said. “We had placed an emergency order at five different vendors, but only one vendor was able to fill the order. It was half the size that was needed but was all that was available. “Fortunately, we keep spare parts for most of our equipment and we were able to repair the broken equipment in time to continue harvest. I highly recommend that if you do not have a spare parts program in your company, you should definitely take the time to invest in this. “It may cost you upfront, but it will save you time and money in the long run. I also recommend doing it soon because some items take months to arrive.”

VINTNER MAGAZINE

NOVEMBER / DECEMBER 2021

Freight Blues Driving up Wine Costs

July 31, 2021 Circulation: 4,900,000 Digital

W. Blake Gray

There's plenty of wine in the world, but transport woes mean getting hold of it is the big challenge. Expect to pay higher prices for wine this fall – and prepare for the possibility that your favorite wines may not make it to your local store. I have already noticed this with sake: the selection isn't as wide as last year. It won't be long before you notice it on wine as well. The reasons have nothing to do with wine itself, and everything to do with logistics. Your favorite Burgundy could be stuck anywhere along the route to your door, says wine logistics expert MaryAnn Pisani. Pisani is the chief revenue officer for MHW, a Long Island-based company that does basically everything in the wine industry except make and sell wine. You might say: "What else is there?" MHW is a licensed importer and distributor, it handles regulatory paperwork, and it arranges warehouse space, trucks, and everything else in the wine logistical chain. Pisani says that right now every link in that chain is more stressed than she has ever seen. "These are things I've never seen in 25 years," Pisani said. "I've never seen product that's not moving out of the warehouse. That holdup has never occurred before." Pisani says the logjam started before the pandemic because of the Trump tariffs on European wine. She said a lot of big importers, surprised by the first round of tariffs, decided to bring in containers of wine before more tariffs could be imposed. At the same time, a tax break on alcohol called CBMA was set to expire at the end of 2020, and importers wanted to rush to get their products in before that happened. (CBMA has since been made permanent, but who could predict what the US government might have done in late 2020?) "It created a backlog in the warehouse system in the US," Pisani told Wine-Searcher. "The warehouses were pretty full. Then you have Amazon, going into areas like New Jersey and they're eating up all the warehouse space. Warehouses that used to be able to rent extra space, you can't do that anymore."

Here is a fact I found shocking: Pisani said Amazon pays its warehouse workers better than workers in alcohol warehouses, which naturally makes me worry about the well-being of the latter. It also means that, as in many industries, the pandemic led to warehouse worker shortages. The first link to be broken in many cases is shipping. Americans have been shopping online like crazy since the pandemic started, so much so that most container ships just want to work the lucrative China-US route. Wine is not the only product that suddenly found it difficult to get a ride from Europe or South America to the US. "You have a massive backup of containers," Pisani said. "You have people out there trying to buy every container they can, not caring what the prices are. The steamship lines are actually charging extra just to secure a booking. We've had boxes that have sat for months in warehouses in France and not moved. They've been picked up at the winery, brought to the port and never moved from there." Out of space Then there are dockworker shortages: "The port of Oakland's been running 20-25 days behind," Pisani said. "We have a box that's been sitting in the port of Oakland since April 27." So let's say you get your crate of wine to the port. You need a drayman, a specialized trucker who delivers containers to and from the port. Generally, you hire a drayman to take your container to a warehouse location where it can be unloaded and sorted for shipping across the country. Except, of course, there's a drayman shortage. And when you do find a drayman, "the warehouse doesn't have room for it", Pisani said. "You have people storing product in a yard somewhere. People have product stored in multiple warehouses, which is terrible for logistics." OK, so your wine gets to a warehouse space, it gets unloaded, and now it's ready to truck to your city. Guess what? That's right, trucker shortage. "The warehouses stopped picking and staging orders because the truckers weren't shipping," Pisani said. "If you have an event or something, you have to FedEx the product because you can't get it out the door." Now let's say you overcome that obstacle and get the wine to the understaffed retail store. "In the stores, they had to worry about curb services, and worrying about how many people are in the store all the time. That all costs money," Pisani said. Wine shops may have been loath to pass on those costs during a pandemic, but eventually they will. MHW has hired extra logistics people to look for warehouse space and make calls to ports to check on containers. These services are getting costly. "If you look at a standard container from France: standard, non-refrigerated, you'd get 1200 cases in it, you'd be looking at $4000," Pisani said. "That's edging up to closer to $5000. Then there's all these additional charges. You pay double for the drayman. You pay more for the warehouse space. That's a lot of money that adds up if you're talking about a $12.99 bottle of wine." Pisani says she believes the situation will ease by spring 2022. But unfortunately, the peak season for selling wine is from late October through early December. "My clients are starting to bring in product earlier than they would," Pisani said. "Containers they would have brought in in October, they're bringing in in July. That's only going to make the warehouse situation worse. A standard product like Tito's [vodka], they have great sales all through the year. But if you talk about newer products, when people are out buying gifts or going to restaurants more because it's the holidays, that's when they try new things. If those little guys can't get their products on the shelf – not just in the country but on the shelf – they're going to miss the whole year's sales." So the upshot is, expect to pay more for wine this fall, and if there are wines – or whiskeys – that you really have to have, buy them when you see them, because the next vintage might not arrive on time. There's one more depressing shipping note, especially for fans of natural wines with no added SO2. "One of the products that suffers the most in situations like that is beer. Beer is working on a very small margin. And they cannot afford to be sitting in a port," Pisani said. "It'll go bad. The same thing with a lot of wine."

December 21, 2021 Circulation: 80,400 Digital

Managing the Supply Chain Conundrum Miles Smith Dr. Richard Obiso, owner of Whitebarrel Winery in Christiansburg, Virginia, said his business had very few issues concerning supply chain management before the onset of the COVID-19 pandemic in early 2020. “Items like shipping and packaging materials, yeast, and wine production chemicals were all abundant and available,” Obiso said.”During COVID, we had little need for items because, in Virginia, we were crippled by tight restrictions and we decided to reduce our 2020 production and hold our 2019 vintage in tanks and barrels until the pandemic subsided. “As everyone knows, the pandemic continues to rage on, and now supply chain issues are in crisis mode.” It’s not a stretch to say supply-chain management has become synonymous with being problematic in many industries these days. Whether you attribute it to the pandemic or believe the problem businesses face today to be rooted farther back, shortages are leading to bottlenecks and disruptions are causing problems in other parts of the supply chain. It’s becoming a snowball effect that’s leading to more shortages, new delays, and higher prices. To cut costs, more manufacturing is taking place overseas and people have relied more on online shopping during the pandemic. Christine Beaudette Tinelli is the Director of Client Development at MHW, a company that handles the back end for businesses that make beverage alcohol. She said supply chain management challenges won’t be going away anytime soon and said business owners should expect to endure problems throughout all of 2022. “Delays are the biggest root of everything,” Tinelli said. “All these shortages really come from the fact that all the products are here, but not in the right place.” The answer can be simplified to planning ahead and forecasting farther out, she said. “Just expect delays in every aspect of the supply chain,” Tinelli said. “It’s going to take longer for transit. Labor shortages are going to affect how you can get juice. “It’s going to take longer to make wine available. We’re not expecting this to go away in the short term, so you’re going to need to preorder.” This has been the case for Lowell Jooste, who said transit time was delaying his wine’s arrival at his urban winery, LJ Crafted Wines. “Our only issue has been that full barrel deliveries from Napa to San Diego are now every second week instead of every week,” Jooste said. Ensuring your product continues making it to the shelves is important, Tinelli said, even though all companies are facing the same supply chain challenges.

“If you’re getting brand-loyal customers, they will find your brand and reorder it,” she said. “It’s going to be tough if you get the consumer hooked, and they go to look for it in the store and it’s not there.” eCommerce can be a winery’s best friend, she said. “You want the consumer to be able to get your wine,” Tinelli explained. “You can use third-party commerce clubs and directto-consumer wine options.” Obiso said Whitebarrel is actively making moves to address the global supply chain crises. He said they’re planning ahead and double-checking their plans, they’re sourcing from multiple vendors from different areas of the country and world, and are planning far in advance to allow time for materials to arrive. Tinelli said that’s the right idea. Diversity in sourcing is one of many tips she has for wine businesses that are looking to stay ahead of the supply chain monster. Glass shortages are a big obstacle to tackle — especially with specialty sizes such as 187 mL and 375 mL bottles. “Make sure you’re thinking through your glass needs for the year,” Tinelli said. “Maybe commit to more glass. Get locked in. It may be pricier, but it’s something to think about.” Switching to screw caps and other synthetic closures can also be a solution, she said, given cork shortages. “There are still a lot of wines that use cork,” Tinelli said. “In this particular supply chain, even less available than before. It can be hard to pivot away and change current SKUs, I get that. But with new ones coming out — new vintages — you can make tweaks unless you’re afraid it would compromise your brand. “For day-to-day drinking at home, people like not using the wine opener and twisting off the cap, and you can still put great wine in those bottles. It’s something to think about.” Tinelli said some of her customers are expanding their portfolio and offering more premium products to protect their price range and offset higher costs. It’s one tactic, she said, but it must be done with care. “You need to look for other expenses and see where you can adjust,” Tinelli said. “You really don’t want to have to raise it too much. You want to stay competitive in your landscape.” In addition to materials, you have to be prepared in case of problems with your equipment. Obiso said pursuing a spare parts program has been a worthwhile endeavor for Whitebarrel. “During our 2021 harvest, our crusher-destemmer died,” Obiso said. “We had placed an emergency order at five different vendors, but only one vendor was able to fill the order. It was half the size that was needed but was all that was available. “Fortunately, we keep spare parts for most of our equipment and we were able to repair the broken equipment in time to continue harvest. I highly recommend that if you do not have a spare parts program in your company, you should definitely take the time to invest in this. “It may cost you upfront, but it will save you time and money in the long run. I also recommend doing it soon because some items take months to arrive.”

September 8, 2021 Circulation: 10,000 Digital

Building import and distribution pipes w/ Gabe Barkley, MHW Robert Vernick & Peter Yeung Breaking into the US market for alcohol has always been hard. Archaic rules such as the 3-tier system and differing regulations by state make it a complex web of rules and regulations to be in compliance. The increasing consolidation of the distributor channel has made it even harder for smaller players to enter. MHW's goal is to make that simpler, giving producers the ability to enter the market and take control of their own destiny. They provide outsourced importation, distribution, and back-office / compliance services so their clients can grow and execute their sales & marketing plan. Listen in as Gabe Barkley, CEO of MHW, gives us a rundown of how they do this and how it compares to traditional importation and distribution. “MHW is a service provider in the beverage space. Our objective is to enable rapid growth with brands, producers, importers to make their mark on the US market. We provide importation, distribution, and back-office services to allow people to enter and succeed in this complex marketplace.” – Gabe Barkley “Where we fit in the three-tier system is that import and distribution tier. The core of our services is really taking on the burden of the complexity of the US alcohol system for our clients. So, we help with certificates of label approval at the federal level. We register brands for sale in all 50 states as our clients wish to enter those states. We help with all the tax reporting compliance requirements of selling in the market. And then on the logistics side we’re helping to clear customs, we’re paying tax and duty, we have 3PL solutions to allow our clients to warehouse product in multiple locations throughout the US, and then we’re effectuating fulfilment of orders to wholesalers around the country and retailers in our wholesale market.” – Gabe Barkley “My passion for wine emerged in college. I had an opportunity to study in Rome during my sophomore year… There was a priest there who would come to campus. He was an Italian wine lover and he would bring things to share with students that we couldn’t otherwise afford. As I started to walk down that path, I got more and more enthralled with wine. To the point where I bought 5 or 6 wine books on Amazon, had them sent to my parent’s house, and kind of veraciously consumed them over the next summer. From there, I started in the wine retail trade after college.” – Gabe Barkley

September 8, 2021 Circulation: 10,000 Digital

November 18, 2021 Circulation: 80,400 Digital

Four tips for beating the supply chain blues Miles Smith Supply chain challenges are real these days. The beverage industry — including wineries — is not immune. Delays are prevalent for glass, corks, juice and parts for your equipment. More manufacturing is taking place overseas and people have relied more on online shopping during the pandemic. But where there’s a problem, there’s a solution. Vintner Magazine reached out to its expert panel and asked it what to prioritize to keep moving the chains. Plan ahead “Just expect delays in every aspect of the supply chain,” said Christine Beaudette Tinelli, who is the Director of Client Development at MHW, a company that handles the back end for businesses that make beverage alcohol. “It’s going to take longer for transit. Labor shortages are going to affect how you can get juice. “It’s going to take longer to make wine available. We’re not expecting this to go away in the short term, so you’re going to need to preorder.” Beware of glass shortages Glass shortages are a big obstacle to tackle — especially with specialty sizes such as 187 mL and 375 mL bottles. “Make sure you’re thinking through your glass needs for the year,” Tinelli said. “Maybe commit to more glass. Get locked in. It may be pricier, but it’s something to think about.” Keep spare parts on hand Dr. Richard Obiso, owner of Whitebarrel Winery in Christiansburg, Virginia, said having spare parts on hand for crucial equipment can be helpful — especially if your destemmer dies during harvest. “Fortunately, we keep spare parts for most of our equipment and we were able to repair the broken equipment in time to continue harvest,” Obiso said. “It may cost you upfront, but it will save you time and money in the long run. I also recommend doing it soon because some items take months to arrive.” Drop the cork “There are still a lot of wines that use cork,” Tinelli said. “In this particular supply chain, even less available than before. It can be hard to pivot away and change current SKUs, I get that. But with new ones coming out — new vintages — you can make tweaks unless you’re afraid it would compromise your brand. “For day-to-day drinking at home, people like not using the wine opener and twisting off the cap, and you can still put great wine in those bottles. It’s something to think about.”

August 26, 2021 Circulation: 48,500 Digital

The Hock Bottle and Fighting a Wine Stereotype Kathleen Willcox Between consumer (mis) conception, business logistics, and marketing techniques, wine industry pros consider the right package for classic aromatic white varieties —Kathleen Willcox For many consumers, even seasoned oenophiles, selecting a wine isn’t a straightforward choice. “I like red, ergo, this will do,” said no one in any wine store, ever. It has become a complex process used as shorthand—by the buyers themselves and their community of fellow imbibers—to signify their lifestyle, economic status, even ideology and politics. Even under normal circumstances, purchasing wine can be stressful. It’s so hard to know what’s inside. LIFESTYLE Others think producers should be thinking outside the bottle entirely. “Alternative packaging, especially cans, is trending way up,” says Gabe Barkley, CEO of wine importer, exporter and distributor, MHW Ltd. “Consumers associate hock-style bottles with sweet and traditional wines, and cans are a great way for producers of aromatic whites to appeal to younger consumers especially.” Cans make sense for aromatic whites especially “because they’re often fermented in stainless steel, and cans capture the liveliness and spirit of them well,” Barkley says. “Cans are also appealing to people who want just a glass or two of wine, and for people who are drawn to the infinite recyclability of cans and their lower carbon footprint in terms of transportation.” Miguel de Leon, general manager and wine director at New York City’s Pinch Chinese, agrees. For consumers, cans are “about context,” says de Leon. “For hanging out at a party, or the beach, they’re great. They’re easy to carry around, a single serving and fun to drink.” For producers, it’s “about intent. For a long time, canned wine was more of grocery store phenomena, but that’s changing. Why are you putting this in a can, and does it make sense for your varietal? To me, canning favors bright and thirst-quenching wines that do well with a chill, like a Riesling or Pinot Gris. I think there’s also a good chance that it will get these wines into the hands of people who might not have tried them before.” The broad appeal of cans hasn’t been lost on East Coast producers, says Robert L. Williams, Jr., founder and partner at WIC Research, devoted to analyzing the wine-in-a-can industry. “Twelve East Coast states are selling at least one canned wine, and at last count, there were 81 winemakers selling 244 SKUs of canned wine,” Williams says. “More and more serious producers are getting in the game too, and that raises the bar for everyone.”

August 6, 2021 Circulation: 45,000 Digital

Post-Brexit and the wine producers L.M. Archer Meininger’s tracks the impact of Brexit upon the wine industry in a two-part series. This week, we show how wine producers cope with the new situation. L.M. Archer has asked around. A recent British Chambers of Commerce survey of over 2,900 UK exporters shows export sales fell 41 percent during the first quarter of 2021, in large part due to Brexit. (At time of publication, this figure dropped to 28% in the second quarter survey). “The UK imports around half, 55 percent, of their wine from the EU,” adds Miles Beale, chief executive of Wine and Spirit Trade Association (WSTA). “The UK wine and spirit industry, as a whole, generates £49bn (€57bn/$69bn) in revenue, and supports 360,000 jobs.” “It is difficult to ascertain the full impact of Brexit on the industry due to our limited experience of it since 1 January, including Covid and ongoing negotiations,” continues Beale. “However, it is clear that businesses in many industries are struggling to move goods across borders, due to a range of issues – some teething problems, some more fundamental.” What about wine exports? “London has been the center of trade in top wines of Europe for centuries,” says David Parker, CEO of Benchmark Wine Group, a worldwide fine and rare wine retailer, and president of the National Association of Wine Retailers. “With it being separated financially from the producing countries of Europe – France, Italy, Spain, Portugal and others – by Brexit, we expect costs to rise for wine that continues to trade through the UK, and alternative sourcing directly from the continent to become more dominant.” “The UK imports around half, 55 percent, of their wine from the EU,” adds Miles Beale, chief executive of Wine and Spirit Trade Association (WSTA). “The UK wine and spirit industry, as a whole, generates £49bn (€57bn/$69bn) in revenue, and supports 360,000 jobs.” “It is difficult to ascertain the full impact of Brexit on the industry due to our limited experience of it since 1 January, including Covid and ongoing negotiations,” continues Beale. “However, it is clear that businesses in many industries are struggling to move goods across borders, due to a range of issues – some teething problems, some more fundamental.” Teething problems

Teething problems, indeed. “Brexit suddenly required wine suppliers to work through UK-based importers and distributors,” says Gabe Barkley, CEO of MHW Ltd., a beverage alcohol importer, distributor, and service provider for major international brands. “This prompted a high volume of brands to seek out a limited volume of UK importers in a short period of time. It has created a more competitive landscape for wine producers and has particularly been a challenge for smaller producers.” Barkley notes UK customs declaration import regulations, new licensing requirements, product safety certificates, inspections, and rules of origin checks as additional obstacles. “When you also factor in the Gabe Barkley, CEO of MHW Ltd. / Credit: MHW Ltd.

global shipping disruptions and clogged UK ports, wine producers are facing significant trade challenges getting across the English Channel,” says Barkley. “Whether the customer chooses to ship ex-cellar or FCA (free carrier), someone has to bear the onus of these costs,” says Will Oatley, managing director of Louis Latour Agencies, Maison Louis Latour’s UK subsidiary. “Frequently, shipments have to be re-routed via transport hubs to minimise overheads, subsequently deliveries are delayed, promotions missed, and sales lost. This must be resolved quickly. Otherwise, [the] New World will happily fill this void.” What cost patience? “Producers must be prepared to be patient with this market for the next two years,” counsels Barkley. Some producers can afford to endure that long. "Thanks to a free trade agreement between Chile and the UK, which was established early in the Brexit process, and to existing well-structured logistics arrangements for supply from South America, Viña Concha y Toro has been able to continue trading with and in the UK with relatively low levels of impact to date,” reports Thomas Domeyko, corporate distribution offices manager for Viña Concha y Toro, Latin America’s largest wine producer and exporter. But for many producers, like Philip Cox of Cramele Recas Wine, Romania’s largest wine producer and seller of premium wine, patience isn’t possible. “The biggest problem right now is still transport, but it’s not just the shortage of drivers within the UK,” says British-born Cox. “For exporters shipping to the UK, a much bigger problem is the current turmoil on the transport market caused by the delays in customs and unloading in the UK, which have in turn caused a large amount of European transporters to stop working UK routes.” Cox calculates a 30 percent rise in transport costs to the UK, and an increase in transit times from approximately five days to eleven days. He also notes that drivers aren’t the only ones fed up with the UK. “I know for a fact from many other producers that many have given up completely trying to sell in the UK,” says Cox. “Particularly smaller producers that depended previously on small scale groupage shipments of individual pallets or cartons – which has become completely impossible now due to the customs costs for such operations, which are all charged per invoice, and not per transport.” Ultimately, Cox estimates an increase of about €200 (£172/$242) per invoice. “We spend now an additional €100,000 (£86,090/$121,115) per year on admin costs linked to the UK, and have taken on two extra employees to deal solely with the UK admin. But we have increased our prices to account for that, so it’s for sure consumers end up paying it,” he concludes. All told, Brexit proves one expensive divorce from the EU for wine producers and consumers alike.

September 26, 2021 Circulation: 80,900 Digital

When Will the Alcohol Packaging Shortage End? Kyle Swartz Trouble finding your favorite alcohol brands in 2021? Chances are it’s because this industry, like many during Covid-19, has run into a major packaging shortage. Materials like glass and aluminum have become difficult and expensive to track down. Of course, you cannot ship or sell alcohol without bottles and cans. This shortage also extends into caps, cork and paper labels. All are necessary for alcohol packaging, and all are currently experiencing crippling shortages. It’s nothing personal to the alcohol industry. Covid-19 has wreaked havoc on distribution and production channels across the globe. Out of an abundance of safety, manufacturing facilities worldwide shut down for months when the virus first arrived. Shipping remains complicated by the lingering crisis. The wholesale industry had to reinvent itself overnight to remain functional while simultaneously protecting legions of front-line workers. Safety against Covid trumps efficiency. Importing materials from overseas? Prepare for exorbitant freight prices. Ordering anything from the production centers of China and Europe is now a slow, pricey prospect. The result is a lot less of everything available for consumers. Empty shelves and out-of-stocks have become frequent, frustrating sights for all kinds of retailers. Packaging Shortage: Additional Causes Another issue is that alcohol consumption remains elevated, even now, so far removed from March 2020. “Alcohol sales have not slowed down significantly during this later stage of the pandemic,” says Chrissy Beaudette Tinelli, director of client development for MHW, Ltd, a beverage alcohol solutions company. “I know of distilleries that are working at 200% capacity, working overtime, just to produce enough liquid to meet the constant demand.” One reason for this elevated consumption is the reopening of bars and restaurants. “People are still drinking even more at home, and now they’re also enjoying nights out, as well, for celebration,” Tinelli says. Celebration and stress have been our dual emotions during the pandemic. Both inspire imbibing. The upcoming holiday season will also likely intensify shortages. “I think we’re going to see a big crunch,” Tinelli says. “All that extra shipping to consumers will use up more warehouses and trucks, making it even harder on alcohol distribution.” With this strain on shipping comes one more issue, which predates Covid-19. Alcohol distributors in America for years have struggled with a scarcity of truck drivers. In 2019, the industry was 70,000 drivers short, according to Bobby Burg, Southern Glazer’s Wine & Spirits SVP operations and chief supply chain officer. In 2020, that number spiked to 100,000 short. Attracting quality drivers has only grown more difficult, given the dangers of travel during the pandemic.

How Can Brands Adapt? As for brands that want to launch in this time of more consumption but less packaging — what’s the gameplan? “It depends on what kind of brand and category we’re talking about,” says Carlton Fowler, co-founder of Goat Rodeo Capital, a venture capital firm that invests in early-stage beverage alcohol brands. “If you have higher margins, then you probably should look to aggressively take in the packaging supply up front.” “But if you’re constantly dealing with lower margins, then maybe reforecast,” he adds, “and don’t look to take in every packaging opportunity that pops up.” Alternative packaging is a potential stopgap. As the shortage drags on, consumers should expect that more brands arrive at retail in plastic bottles with screw caps. Even premium spirits. Still, savvy companies can locate packaging. “You can still find glass and aluminum manufacturers, but they’re not in the U.S.,” says Catalano of The Spearhead Group. “Supply-chain challenges have opened up opportunities for other factories that cannot normally compete against the big ones. They’re the diamonds in the rough, if you can find them.” In the meantime, patience. “When forecasting, you probably want to buffer in three to four more weeks for the arrival of packaging components than you think so,” says Tinelli. “You should be sourcing from wherever you can and looking to get more from the sources you already use. And be more generous with your packaging budget. Because remember: Alcohol is still a very healthy market to be in.” When Will the Packaging Shortage End? Subjects interviewed do not anticipate a quick fix. “When I talk to my co-packers, they don’t think the shortage will end until 2023, it not further out,” says Fowler, of Goat Rodeo Capital. Catalano of The Spearhead Group predicts a similar timeline. “We are starting to hear some talk about the grip loosening up in late 2022 -2023,” says Dan Kobiske, VP of supply chain for the distributor Mexcor International. “I haven’t found any real hard data to support Q1 of 2022,” he says. “People saying early 2022 are likely going with a general feeling that things have to get back to normal again. But 2023 is probably more of a reality. But that reality is so unknown, and that’s our biggest fear.” Of all the limited packaging materials, aluminum may recover first. “I think we may be a little closer on cans than others, if only because that shortage came around sooner than the others,” says Tinelli of MHW. “But that’s still not going anywhere, anytime soon. And I’d assume a price increase as well.” Overall, 2023 has become the common estimate. “We are starting to hear some talk about the grip loosening up in late 2022 -2023,” says Kobiske of Mexcor International. “Our current situation will take some time to get out of. I don’t think it will ever return to what it was prepandemic, but we will settle in with a new normal.

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September 29, 2021 Circulation: 8,000 Digital

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Let’s talk about State of Play – Brexit Today

September 26, 2021 Circulation: 5,000 Digital

The Circle: Wine & Spirits Communications | L.M. Archer, Daniel Lambert, David Richardson, William Bane, Philip Cox, Chrissy Beaudette Tinelli

September 21, 2021 Event/Digital

C-Suite Insights: Real Life Balancing Acts - Life, Family & Careers in Beverage Alcohol with MaryAnn Pisani, CRO, MHW, Ltd.

Leadership is a process of social influence, which maximizes the efforts of others, towards the achievement of a shared goal. Each of us can be a leader and make a positive difference, whatever our title or position. MaryAnn Pisani and Helen Gregory have been hearing about work-life balance for years. Between the two of them they’re raising lots of kids, building global businesses, and trying to find time for family, friends and personal health and wellness. Attendees can expect a candid conversation between two women executives and friends on what has worked - and what has been most challenging in their life and careers. Takeaways • What Work-Life balance can look like • Tips on how to stay healthy • Where to find help when you need it

MHW Expands Global Wine Importation and Distribution Footprint Through Acquisition of USA Wine West and USA Wine Imports

November 17, 2021 Circulation: 46,000 Digital

News Briefs for November 17, 2021 Manhasset, New York-based MHW, which offers compliance and logistical services to beverage alcohol companies, has acquired importers USA Wine Imports and USA Wine West. Terms were not disclosed. For the time being, MHW and the two acquisitions will continue to serve their respective client portfolios “while they explore additional ways to deliver value through their partnership.” USA Wine West founder Steve Melchiskey will continue to lead that team and will join MHW as vice president of sales and development. USA Wine Imports’ general manager Sandi Bartel will continue to oversee operations in that division.

January 2022

November 16, 2021 Circulation: 65,000 Digital

MHW Expands Global Wine Importation and Distribution Footprint Through Acquisition of USA Wine West and USA Wine Imports Press Release MANHASSET, N.Y. -- MHW, Ltd., the leading service provider for wine, spirits, beer and cider in the United States, has announced the successful acquisition of two nationally licensed importation companies, USA Wine West and USA Wine Imports, each of whom have decades of experience in fine wine distribution, logistics management, market strategy, compliance and administration. “Over the last 25 years, USA Wine West has provided unparalleled logistics, compliance and administrative import services to foreign and domestic wineries who launch in the U.S.,” says USA Wine West Founder Steve Melchiskey, who will continue leading the USA Wine West team and join MHW as Vice President of Sales and Development. “Becoming a part of MHW enables us to carry on that mission with greater resources and capabilities. This is especially exciting for the passionate wineries and individuals we work with, as well as our world-class team who has been critical to this success.” MHW, USA Wine West, and USA Wine Imports will continue to service their respective client portfolios while they explore additional ways to deliver value through their partnership with clients over time by expanding on service capabilities, such as global consolidated logistics and more comprehensive direct-to-retail offerings, over time. “MHW is thrilled to welcome both USA Wine West and USA Wine Imports to our team,” says MHW Chief Executive Officer Gabe Barkley. “Both companies enhance our leadership in serving the needs of the global fine wine market across all segments. We share a common DNA of building and valuing lasting client relationships. That orientation toward partnership is vital to our ongoing success. Because my career began in fine wine retail, I am personally thrilled about our expanded ability to help wine producers – from family-owned wineries to private-label programs – establish their presence in the U.S. market alongside our existing leadership positions in spirits and malt beverages.” “It has been gratifying and humbling to have presided over a period of incredible growth at USA Wine Imports and we are very excited to be passing the baton to such a capable partner in MHW,” says former USA Wine Imports Vice President Nicolas Mestre. “This partnership will allow our portfolios the additional resources they require to scale and thrive in the market.” Sandi Bartel, USA Wine’s longtime General Manager, will continue to manage day-to-day operations.

November 23, 2021 Circulation: 635,000

Welcome to your November Newsletter. The holiday season has arrived, and members of our industry are busier than ever. The teams at Diversified Communications and Vinexposium would like to wish our colleagues, partners and customers a happy and healthy holiday season. March 9-10 will be here in no time and trade members are invited to attend the co-located events for just $50. Attendee registration is available online and one badge gives two-day access to both Vinexpo America and Drinks America, including all exhibitors, education and special events.

MAKING NEWS MHW Expands Global Wine Importation and Distribution Footprint Through Acquisition of USA Wine West and USA Wine Imports

November 17, 2021 Circulation: 6,500 Digital

MHW Expands Global Wine Importation and Distribution Footprint Kyle Swartz MHW, Ltd. has announced the acquisition of two nationally licensed importation companies, USA Wine West and USA Wine Imports. “Over the last 25 years, USA Wine West has provided unparalleled logistics, compliance and administrative import services to foreign and domestic wineries who launch in the U.S.,” says USA Wine West Founder Steve Melchiskey, who will continue leading the USA Wine West team and join MHW as Vice President of Sales and Development. “Becoming a part of MHW enables us to carry on that mission with greater resources and capabilities. This is especially exciting for the passionate wineries and individuals we work with, as well as our world-class team who has been critical to this success.” MHW, USA Wine West, and USA Wine Imports will continue to service their respective client portfolios while they explore additional ways to deliver value through their partnership with clients over time by expanding on service capabilities, such as global consolidated logistics and more comprehensive direct-to-retail offerings, over time. “MHW is thrilled to welcome both USA Wine West and USA Wine Imports to our team,” says MHW Chief Executive Officer Gabe Barkley. “Both companies enhance our leadership in serving the needs of the global fine wine market across all segments. We share a common DNA of building and valuing lasting client relationships. That orientation toward partnership is vital to our ongoing success. Because my career began in fine wine retail, I am personally thrilled about our expanded ability to help wine producers – from family-owned wineries to private-label programs – establish their presence in the U.S. market alongside our existing leadership positions in spirits and malt beverages.”

DISTRIBUTION NETWORKS:

SUMMARY

• United States • Europe Media (Concentrated in Western Europe)

TOTAL VIEWS: • 11,734

TOP COUNTRIES (by click): • USA – 1 • India –2 • Germany – 3

IMPRESSION VALUES TO DATE: • 43.5+ Million

ONLINE POSTINGS: • 144

November 16, 2021 Circulation: 1,863,962

MHW Expands Global Wine Importation and Distribution Footprint Through Acquisition of USA Wine West and USA Wine Imports Press Release (English) MANHASSET, N.Y. -- MHW, Ltd., the leading service provider for wine, spirits, beer and cider in the United States, has announced the successful acquisition of two nationally licensed importation companies, USA Wine West and USA Wine Imports, each of whom have decades of experience in fine wine distribution, logistics management, market strategy, compliance and administration. “Over the last 25 years, USA Wine West has provided unparalleled logistics, compliance and administrative import services to foreign and domestic wineries who launch in the U.S.,” says USA Wine West Founder Steve Melchiskey, who will continue leading the USA Wine West team and join MHW as Vice President of Sales and Development. “Becoming a part of MHW enables us to carry on that mission with greater resources and capabilities. This is especially exciting for the passionate wineries and individuals we work with, as well as our world-class team who has been critical to this success.” MHW, USA Wine West, and USA Wine Imports will continue to service their respective client portfolios while they explore additional ways to deliver value through their partnership with clients over time by expanding on service capabilities, such as global consolidated logistics and more comprehensive direct-to-retail offerings, over time. “MHW is thrilled to welcome both USA Wine West and USA Wine Imports to our team,” says MHW Chief Executive Officer Gabe Barkley. “Both companies enhance our leadership in serving the needs of the global fine wine market across all segments. We share a common DNA of building and valuing lasting client relationships. That orientation toward partnership is vital to our ongoing success. Because my career began in fine wine retail, I am personally thrilled about our expanded ability to help wine producers – from family-owned wineries to private-label programs – establish their presence in the U.S. market alongside our existing leadership positions in spirits and malt beverages.” “It has been gratifying and humbling to have presided over a period of incredible growth at USA Wine Imports and we are very excited to be passing the baton to such a capable partner in MHW,” says former USA Wine Imports Vice President Nicolas Mestre. “This partnership will allow our portfolios the additional resources they require to scale and thrive in the market.” Sandi Bartel, USA Wine’s longtime General Manager, will continue to manage day-to-day operations. About MHW, LTD. MHW, LTD. is the leading beverage alcohol service partner in the United States, European Union and United Kingdom, specializing in strategic, scalable back-office solutions including compliance management, licensing, operations, logistics, fulfillment, accounting, business insight reporting, and technology. Since 1995, MHW has served as the national importer and distributor to international brands of all sizes, helping more than 100,000 wine, spirits and beer products successfully enter the U.S. MHW’s global wholesale capabilities give clients access to the retail trade in four key U.S. markets, the EU and UK. Companies who partner with MHW have the competitive advantage to focus time and effort on building brand sales. With strategic and attentive teams who have decades of back-office beverage alcohol experience, MHW offers unparalleled expertise and service excellence. To learn how to make your mark in the US and EU, please visit mhwltd.com. About USA Wine West USA Wine West is a premier provider of national wine import services in the U.S. A fully licensed federal importer, USA Wine West works in partnership with the sales and marketing teams of foreign and domestic wineries to distribute wine to wholesalers in all 50 states. USA Wine West works strategically with client portfolios to provide a cost-effective, integrated sales platform, along with an efficient logistical and compliance system designed to support foreign wineries to succeed in this competitive market. About USA Wine Imports USA Wine Imports is a national importer of wine and spirits providing wholesale customers distribution in all major wine markets in the U.S. USA Wine Imports works closely with wine and spirits producers, importers, brokers, and agents to develop innovative sales and marketing strategies and meet ambitious sales goals in a crowded marketplace. In addition, USA Wine Imports handles import, freight, compliance, licensing, warehousing, order fulfillment, invoicing, inventory control, and accounting services.

November 16, 2021 Circulation: 60,000 Digital

MHW amplía su presencia mundial en la importación y distribución de vinos mediante la adquisición de USA Wine West y USA Wine Imports Press Release MANHASSET, N.Y. -- MHW, Ltd., the leading service provider for wine, spirits, beer and cider in the United States, has announced the successful acquisition of two nationally licensed importation companies, USA Wine West and USA Wine Imports, each of whom have decades of experience in fine wine distribution, logistics management, market strategy, compliance and administration. “Over the last 25 years, USA Wine West has provided unparalleled logistics, compliance and administrative import services to foreign and domestic wineries who launch in the U.S.,” says USA Wine West Founder Steve Melchiskey, who will continue leading the USA Wine West team and join MHW as Vice President of Sales and Development. “Becoming a part of MHW enables us to carry on that mission with greater resources and capabilities. This is especially exciting for the passionate wineries and individuals we work with, as well as our world-class team who has been critical to this success.” MHW, USA Wine West, and USA Wine Imports will continue to service their respective client portfolios while they explore additional ways to deliver value through their partnership with clients over time by expanding on service capabilities, such as global consolidated logistics and more comprehensive direct-to-retail offerings, over time. “MHW is thrilled to welcome both USA Wine West and USA Wine Imports to our team,” says MHW Chief Executive Officer Gabe Barkley. “Both companies enhance our leadership in serving the needs of the global fine wine market across all segments. We share a common DNA of building and valuing lasting client relationships. That orientation toward partnership is vital to our ongoing success. Because my career began in fine wine retail, I am personally thrilled about our expanded ability to help wine producers – from family-owned wineries to private-label programs – establish their presence in the U.S. market alongside our existing leadership positions in spirits and malt beverages.” “It has been gratifying and humbling to have presided over a period of incredible growth at USA Wine Imports and we are very excited to be passing the baton to such a capable partner in MHW,” says former USA Wine Imports Vice President Nicolas Mestre. “This partnership will allow our portfolios the additional resources they require to scale and thrive in the market.” Sandi Bartel, USA Wine’s longtime General Manager, will continue to manage day-to-day operations.

November 16, 2021 Circulation: 72,600,000 Digital

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Pending Coverage:

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