Weekly Beverage Alcohol Recap | April 03, 2026

## SHOW NOTES**Top Stories**- **Pernod Ricard & Brown-Forman confirm merger talks** — potential $31B combined entity; Citi puts deal odds at 50/50; Jefferies projects $450M in synergies; governance and balance sheet challenges remain- **E. & J. Gallo closes $775M Four Roses acquisition** — highest price ever for a Kentucky bourbon distillery; returns brand to US family ownership after 83 years- **Diageo North America CEO Sally Grimes departs suddenly** — replaced by 30-year veteran John O'Keefe; comes as Diageo US spirits sales fall 11.6%- **Southern Glazer's acquires ~22M ABI beer cases in under a year** — Clare Rose, Eagle Rock, and ABI's NY distributorship; building parallel beer empire- **Reyes Beverage Group acquires RNDC operations across 11 markets** — names Brian Albenze as market president**Market Data**- US bev-alc volume fell 5% in 2025 (IWSR); off-premise dollar sales down 2.7% in latest 4-week period (NIQ)- Spirits ex-prepared cocktails: -6.1% dollars, -4.8% volume- Wine: -5.1% dollars, -5.9% volume- Beer: -1.3% dollars, -3.0% volume (improving sequentially)- Prepared cocktails: +5.4% dollars — sole growth category- Spirits-based RTDs: +35% value, +36% volume- RTD share of total bev-alc: 6% (2019) ? 13% (2025)- Only 54% of Americans report drinking alcohol (Gallup — new low)**American Whiskey**- Production down 28% YoY through August 2025; lowest since 2018- 16.1M aging barrels in Kentucky — all-time record- Exports down 19% ($250M decline); EU exports -35%, Canada -70%- Jim Beam, Diageo, Brown-Forman all curtailing production; MGP contract business cut by more than half- Green River lays off head distiller; LF Heritage ordered into foreclosure; Goodwood seeks merger**Flavored Bev-Alc Power Rankings**- Top 10 vendors control 81.2% of dollar sales- BuzzBallz: $794M (+50.1%); Cutwater: $585M (+100.5%); BeatBox: $413M (+31.4%); Surfside: $191M (+115%)- High-ABV (8%+) sub-segment: 36.9% of total, up 19.3% to $5.5B**Wine**- California 2025 crush: 2.62M tons (above expectations); 18 months of supply projected- 38M US beer/spirits drinkers cite taste aversion as barrier to wine- DtC wines above $50 = 71% of total shipment value (up from 52% in 2020)- Imported wine volumes down ~8% Oct-Jan vs. domestic wines down 3%**M&A & Deals**- Tilray completes BrewDog acquisition at £41M (~$54.5M)- Firestone Walker acquires Trumer Pils US rights from Gambrinus- Hood River Distillers acquires Crater Lake Spirits- Constellation acquires remaining HOPWTR stake- KDP completes JDE Peet's acquisition; planning separation into Coffee Co. and Beverage Co.- Sysco acquires Jetro Restaurant Depot for $29.1B- Breakthru Beverage enters hemp THC beverage distribution in Minnesota**Key Consumer & Macro Signals**- Jefferies Consumer Pulse: 89 (lowest since Nov 2023)- 31% of drinkers cite financial pressure as moderation driver- GLP-1 drugs: 23% of users drink less dining out; 39% drink less overall- Gen Z unemployment: 9.2%; cocktail prices exceeding $20 dampening on-premise occasions**Legal & Regulatory**- Oz Trading permanently enjoined from counterfeit Modelo/Corona labels- Tito's Vodka ordered to pay $749K Maine back taxes- ABI pays $2.3M Fairfield brewery emissions penalty- TTB recommends delaying Q1 2026 CBMA claims due to data error- Colorado bev-alc fee bill defeated in committee- Treasury Wine Estates: shares down 63%; near-$1B US asset write-down flagged