BEVERAGE
`MEDIA
`
`75th Anniversary Historical Essay
`
`“Dedicated to News, Profitable Management and Maintenance of
`Bars, Grills, Taverns and Liquor Licensed Restaurants.”
`
`— Bar & Grill Journal, 1st Issue, Fall 1936
`
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`BEVERAGE MEDIA
`
`75YEARS
`
`Prohibition, Then Repeal:
`From Three Tiers, One Publication Emerges
`
` The Roaring Twenties. Flappers shimmied and millions
`
`danced the Charleston. Meanwhile, thousands of illicit
`speakeasies poured a veritable flood of swell cocktails,
`cold beer and fizzy Champagne to thirsty imbibers as
`the Prohibition-era ban on beverage alcohol was widely ignored by
`otherwise law-abiding citizens. Indeed, soon after inception, the 18th
`Amendment to the U.S. Constitution was judged an epic national
`failure in social engineering. In reaction, a new political movement
`gathered force: Repeal. And with the 21st Amendment’s passage on
`December 5, 1933, Prohibition ended.
`
`
`With wine, spirits and beer now legal,
`two brothers, Philip and Max Slone, both
`practicing lawyers, became adept special-
`ists in handling licenses and other regula-
`tory matters for a new generation of aspir-
`ing tavern and restaurant owners in New
`York. Sensing a great need in the metro-
`
`politan New York marketplace for accurate
`news and insights relevant to licensees, the
`Slone brothers proudly launched in 1936
`the first trade publication of its kind—Bar
`& Grill Journal—which evolved over the
`next 75 years into a unique network of 34
`state-based beverage alcohol publications
`
`Brothers Max and Philip Slone,
`founders of Bar & Grill Journal.
`
`combined with a range of 21st-century
`communications services.
`In noting the origin of the company,
`William Slone, chairman of Beverage Me-
`dia Group Inc., explains, “After Repeal,
`the responsibility for all beverage alcohol
`production split into two critical areas. At
`the national level, federal authorities es-
`tablished a sweeping set of laws to regulate
`the production of wine, spirits and beer as
`well as adjudicate, if necessary, interstate
`commerce issues. But, at the same time,
`owing to the strong states’ rights language
`of the 21st Amendment, responsibility for
`the distribution and sale of wine, spirits
`and beer was securely placed in the hands
`of state and local authorities. These de-
`velopments created the particular struc-
`ture of our beverage alcohol industry we
`all work in today.”
`Jason Glasser, chief executive offi-
`cer, adds: “Over our 75 years, the unique
`strength of Beverage Media comes from
`the fact that we have always mirrored the
`structure of the U.S. wine, spirits and beer
`trade. Taken together, our print, online
`media and host of other communications
`services are national in reach, but extreme-
`ly local in addressing specific markets.”
`The Slone brothers’ intimate associa-
`tion with all three tiers of the industry
`set the stage for a publication that grew
`with the beverage alcohol industry, con-
`necting suppliers, distributors and licens-
`ees with timely trade news and informa-
`tion. In the following decade-by-decade
`review, we look back at some of the most
`notable highlights during 75 years of
`Beverage Media publishing history.
`
`Beverage Media’s original 52nd street office, which occupied all five floors,
`including one floor devoted to a cocktail lounge for visitors and staff.
`
`Research and interviews by David Lincoln Ross.
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`BEVERAGE MEDIA
`
`75YEARS
`
`POST-PROHIBITION
`In the first four years of Bar & Grill
`Journal, the editors addressed a host
`of reader concerns. Would Prohibi-
`tion return in a new guise? How to
`profitably integrate food with bever-
`age alcohol? What new legislation
`deserves licensee support in Albany?
`What are the latest cocktail trends
`to learn and master? And should
`women be allowed in bars?(!)
`
`America celebrates as the news flashes across the nation that Utah had become the 36th state to ratify the
`21st Amendment. Here, crowds are shown gathering outside a New York club to witness the unloading of
`the first shipment of legal, tax-paid liquor.
`
`The 1930s
`From Forbidden Fruit to
`Liquor-Fueled Capitalism
`
`Prior to Prohibition, brewers, distillers and
`vintners comprised the fifth largest busi-
`ness grouping in the United States. One
`year after Repeal, in 1934, on a combined
`basis, the beverage alcohol and hospitality
`industries had been responsible for generat-
`ing millions of new jobs in the depths of the
`Great Depression and funneling hundreds
`of millions of dollars in direct and indirect
`federal, state and local tax revenues
`to financially strapped government
`agencies. In fact, by the mid-1930s,
`one-third of all federal tax receipts
`were sourced from federal alcohol
`excise taxes alone.
`Not surprisingly then, from
`1933 to 1940 there was a fran-
`tic race to rebuild breweries and
`distillers and replant uprooted
`vineyard acreage in California and
`elsewhere. All this required huge
`capital investments. Restarting these
`businesses resulted in a financial tidal
`wave so encompassing that in 1933,
`Fortune—the new business magazine
`
`launched by visionary publisher Henry R.
`Luce, of Time magazine fame—devoted a
`cover story to the country’s biggest distill-
`ers, brewers and vintners. Anheuser-Busch,
`Brown-Forman, National Distillers, Pabst,
`Schenley, Schlitz and Seagram, among
`others, soared in value.
`During the decade, American consum-
`ers faced shortages of aged whiskey and
`imported wines, so new categories—such
`as, younger-aged, blended whiskies like
`Rittenhouse Rye as opposed to more costly
`“un-cut,” aged whiskies like Old Charter—
`filled the gap until distillers could
`catch up with demand. Meanwhile,
`post-Repeal, licensees were coping
`with complicated federal, state and
`local alcohol regulations.
`It was the combination of
`these developments—regulatory,
`commercial and legislative—that
`telegraphed
`to
`the Slone
`brothers a clear publishing
`opportunity, one which
`they seized with passion.
`With each issue, the
`magazine invited its readers—
`comprised of not only licens-
`ees, but also the distributors
`
`and suppliers who served them—to a spir-
`ited (pun intended) conversation about
`the news and trends of the day. The publi-
`cation, besides its growing revenues from
`a steadily rising subscription base, also
`pulled in more pages of advertising from
`distillers, brewers and vintners, as well as
`allied industries, including a whole range
`of related products and services to assist
`new licensees in establishing them-
`selves in their communities.
`
`DRINKS
`30 S
`D
`
`Martini, Manhattan //
`California wines, echoing
`efforts by wine marketing
`pioneer Frank Schoonmaker //
`Beers, both regional (Rheingold/Rupperts
`in NYC) and national (Pabst)
`
`1933
`Heineken resumes exports to U.S.; E & J Gallo
`Winery established in Modesto; Bronfman
`family forms Joseph E. Seagram & Sons
`
`1933
`The Distilled Spirits
`Council of the United States
`(DISCUS) is formed
`
`1934
`The James B. Beam
`Distilling Co. is incorpo-
`rated in Clermont, KY
`
`1936
`Budweiser
`is first sold
`in cans
`
`1937
`Louis M. Martini
`purchases 1,000-acre
`vineyard in Napa Valley
`
`1938
`February 1938
`front cover of
`Bar & Grill Journal
`
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`BEVERAGE MEDIA
`
`75YEARS
`
`It’s hard to imagine today, as U.S.
`military efforts unfortunately take a
`back seat in the media to celebrities
`and economic news, but World War
`II weighed heavily in domestic daily
`life. Sacrifices were considered an
`expression of patriotic duty, as indus-
`tries and families from coast to coast
`changed the way they lived and
`worked in order to free up resources
`for the war.
`
`both licensees and vet-
`erans returning home.
`And, as a sign of the
`publication’s growing
`influence, in 1947
`Beverage Media an -
`nounced the launch
`of a separate Upstate
`N e w Yo r k e d i t i o n
`f o r o n - a n d o f f -
`premise licensees.
`Shortly after ex-
`panding in New York, Phil and Max
`Slone called upon their brother Harry
`to head west—to New Jersey. Harry
`opened and oversaw the New Jersey
`Beverage Journal.
`
`Harry Slone,
`New Jersey
`Beverage Journal
`
`DRINKS
`40 S
`D
`
`Blended Whiskey,
`Gin, Moscow Mule
`(Vodka) // Crown
`Royal, launched in
`honor of the British King
`and Queen // Lager Beer
`
`The 1940s
`The Industry Responds to War
`
`Cover after cover of Beverage Media during
`World War II showed strong, patriotic im-
`ages in support of our troops. And in doz-
`ens of its articles, Phillip and Max Slone
`advised licensees about how to cope with
`wartime shortages. For example, grain
`sales to distillers and brewers were at first
`rationed, then severely reduced as part of
`the accelerating effort to redirect every
`available foodstuff or strategic material
`toward the war. Articles also covered how
`licensees could efficiently recycle glass
`bottles, cardboard containers and wood
`cases, even holiday wrapping paper.
`In early 1940, the Slone brothers had
`changed their publication’s name from
`Bar & Grill Journal to Beverage Media; the
`new title reflected their determination to
`widen editorial coverage to the entire bev-
`erage alcohol business.
`Following the war, Beverage Media
`addressed a variety of concerns affecting
`
`1944
`Distillers resume com-
`mercial production for
`first time since 1942
`
`1944
`Faced with declining inventories,
`11 distillers apply to become
`spirit blends
`
`1948
`War-induced
`restrictions on beer
`production are lifted
`
`1949
`Chivas Brothers Ltd.
`is acquired by
`Seagram & Sons
`
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`Beverage Media addresses a variety of
`concerns affecting both licensees and
`veterans returning home.
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`BEVERAGE MEDIA
`
`75YEARS
`
`men—perhaps emblematic of a “Mad
`Men” man’s world—were genuine em-
`pire builders.
`As advertisements in Beverage Me-
`dia show, it also was an era when whis-
`key—especially Ameri-
`can whiskies, blends and
`bourbon—dominated the
`market along with regional
`beer brands. Wine was not
`as widely appreciated as it
`would be in the decades to
`come; although the Gallo
`brothers and other Italian
`and ethnic wine produc-
`ers were beginning to make
`inroads in the general mar-
`ket with generic varieties
`christened Hearty Burgun-
`dy and Moun-
`tain Chablis, their core
`business was still propri-
`etary fortified wine
`brands like Thun-
`derbird or Canan-
`daigua’s Richards Wild
`Irish Rose. These forti-
`fied and jug wine brands
`of the 1950s established a
`strong foundation for Ameri-
`ca’s growing awareness of fine
`wines, a trend accelerated by
`noted wine importers and writ-
`ers such as Frank Schoonmaker, Jr. and
`Alexis Lichine, as well as by pioneering
`
`Life &
`Times....
`In retro-
`spect, the
`’50s gave
`birth to
`truly national
`brands, thanks in part to the grow-
`ing popularity of news, feature and
`lifestyle magazines. Dozens of ads
`for Bud, Schlitz and Miller, as well
`as for Schenley, Seagram’s 7 and
`Old Forester, reached millions of
`readers of Time, Life, Esquire and a
`racy newcomer called Playboy.
`
`New York City retailers
`like Sherry-Lehmann,
`Morrell’s, and 67 Wine &
`Spirits, among others.
`By the end of 1959,
`total U.S. spirits sales
`hit nearly 100 million
`9-liter cases; wine sales
`reached nearly 70 mil-
`lion 9-liter cases; while
`beer sales reached ap-
`proximately 87 million
`31.5 gallon barrels.
`
`DRINKS
`50 S
`D
`
`White/
`Black
`Russian,
`Bloody Mary
`// Hearty
`Burgundy, Thunderbird,
`Wild Irish Rose, Night
`Train, Virginia Dare // Full-
`calorie beer brands—Bud,
`Schlitz, Miller High Life
`
`The 1950s
`Post-War Growth and
`Affluence – When Whiskey and
`Beer Reigned Supreme
`
`Although the decade be-
`gan with the Korean War
`(1950-1953), overall the
`United States economy
`was poised for tremendous
`expansion in the ’50s. Sub-
`urbs bloomed in former
`cornfields, factories oper-
`ated at near capacity, un-
`employment dropped to re-
`cord lows and pay packets
`grew year after year. Rising
`affluence drove consumers
`to enjoy some of the finer
`things in life, and the cov-
`ers of Beverage Media in this de-
`cade amply illustrated the decade’s
`most popular libations, enjoyed
`at summer picnics, around the
`Thanksgiving table and during
`the key year-end holidays.
`With Dwight D. “Ike” Eisen-
`hower in office as President (1953-1960),
`i t w a s a p e a c e f u l
`period when larger-
`than-life personalities
`dominated the drinks
`business—giants such
`as August “Auggie”
`Busch of Anheuser-
`Busch, Lewis “Lew”
`Rosenstiel of Schen-
`ley Industries, Samuel
`“Mr. Sam” Bronfman
`of Seagram Distill-
`ers, John Martin of
`Heublein, and Ernest
`and Julio Gallo of E
`& J Gallo Winery, to
`name but a few. These
`
`Lewis S. Rosenstiel,
`Schenley
`Industries
`
`Samuel Bronfman,
`Seagram
`Distillers
`
`1950
`Efforts to reinstate Prohibition in
`Arizona, Arkansas, Oregon and
`South Dakota are defeated
`
`1951
`November 1951
`front cover of
`Beverage Media
`
`1951
`First pre-Thanksgiving
`release of Beaujolais
`Nouveau
`
`1952
`Anheuser-Busch
`celebrates 100th
`anniversary
`
`1952
`Beverage Media wins
`Brown-Forman Press
`Award
`
`1958
`Blue Book issue
`for 25th anniversary
`of Repeal
`
`1962
`January 1962 cover
`of Beverage Media
`Upstate NY edition
`
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`Whiskey
`dominates
`the market.
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`BEVERAGE MEDIA
`
`75YEARS
`
`form The Bev-
`erage Network.
`And, following
`military service,
`Max’s son, Wil-
`liam, and Phil’s
`son, Gerald, en-
`tered the busi-
`ness, bringing
`the next gen-
`eration into a
`proud family business.
`The U.S. drinks
`market evolved rap-
`idly in this tumultu-
`ous decade of social
`change—the drive for
`racial equality, women’s
`rights and vehement,
`sometimes violent pro-
`tests about our escalating involvement in
`South Vietnam. Woodstock, flower power
`and rock music obliged one beverage alco-
`hol marketer after another to get with the
`times, be groovy and introduce hip cocktails
`and new products.
`And from the Old World, the
`much-heralded 1959 vintage in Bor-
`deaux, France, opened the eyes of
`many wine-loving Americans to the
`
`pleasures of fine
`French wines
`from not only
`the Médoc châ-
`teaux, but other
`great European
`winemaking re-
`gions as well,
`including Bur-
`g u n d y a n d
`Champagne in
`France, Tus-
`cany and Piedmont in Italy and the
`Rhine in (then) West Germany.
`
`DRINKS
`60 S
`D
`
`Tequila Sunrise, Southern Comfort
`// Almaden, Mateus, Lancers, Blue Nun,
`Bob White and Red from Robert Mondavi
`Winery // Michelob, Lowenbrau, Heineken
`
`The 1960s
`From Camelot to Flower Power,
`Beverage Media Tracks the
`Trends
`
`With Jack and Jacqueline Kennedy and
`their two children entering the White
`House, the Camelot years of the early
`1960s opened with great promise and
`optimism. Beverage Media tracked the
`explosive growth of the bev-
`erage alcohol business at all
`three tiers, with newsmaker
`interviews, analysis of local
`and national sales trends
`and timely coverage of new
`products and categories
`then developing.
`The Slone family pub-
`lishing enterprise was also
`rapidly evolving and grow-
`ing, with other publishers
`from around the nation
`joining Beverage Media to
`
`Blue Book issue
`for 25th anniversary
`
`1962
`January 1962 cover
`of Beverage Media
`Upstate NY edition
`
`1964
`U.S. Congress in 1964 declares
`bourbon to be a “distinctive
`product of the United States”
`
`1966
`Robert Mondavi
`establishes his winery
`in Napa Valley
`
`1968
`Tenuta San Guido
`releases first “Super
`Tuscan” blend, Sassicaia
`
`1968
`Heublein
`introduces
`cocktails in a can
`
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`BEVERAGE MEDIA
`
`75YEARS
`
`drinks, namely the Screwdriver, Gin &
`Tonic and Rum & Coke.
`The 1970s, in retro-
`spect, represented a brave
`new era
`for advertising.
`Spirits got edgy, with Early
`Times encouraging drink-
`ers to “Make Yourself a
`Swinger” and a Sauza Te-
`quila model promising “If
`you’ve got the salt, I’ve got
`the Sauza.” Orson Welles
`became known to a new
`generation of Americans
`
`The 1970s
`America Discovers Table Wine,
`Light Beer and White Spirits
`
`During the Nixon and Ford administra-
`tions, both U.S. and foreign-owned beer,
`wine and spirits companies continued to
`enjoy robust growth. And while there
`were some very early signs of consolida-
`tion—when one major drinks company
`gobbled up a smaller competitor—there
`was not a great deal of merger and acquisi-
`tion activity yet at the supplier and dis-
`tributor levels.
`One of the most dramat-
`ic developments of this ex-
`citing decade was America’s
`discovery of the pleasures
`of wine, exemplified by the
`“I’ll-have-a-glass-of-white-
`wine-please” order at bars
`or restaurants. Significantly,
`this was the decade when
`sales of table wine (both
`generic and varietal wines)
`overtook fortified and des-
`sert wine sales for the first
`time since Repeal.
`In the beer realm, growing health con-
`cerns prompted consumers to migrate to
`low-calorie or light beers, while environ-
`mentally conscious consumers started to
`assert pressure on industry leaders to come
`up with better materials for recycling and
`earth-friendly production processes.
`Keeping in tune with the times,
`Beverage Media coverage included de-
`bate over controversial Federal Excise
`Tax increases, trendy new cocktails
`and exclusive newsmaker interviews
`with wine, spirits and beer executives.
`Meanwhile, white spirits—vodka, gin
`and rum—rose in prominence as the
`foundation of popular if simple bar
`
`As a reflection of wine trending
`away from fortifieds toward table
`wines, the drinks industry saw the
`incredible rise in this decade of the
`“GAMIT” range—a handy acronym
`for Gallo, Almaden, Masson, Ingle-
`nook and Taylor brands.
`
`not so much for his films as for his TV
`ads touting Paul Masson, in which he
`intoned, “We will sell no wine before its
`time.” (Ironically, Welles was dropped
`in the early 1980s when he admitted
`publicly that he actually did not drink
`Paul Masson wine.) And beer got funny,
`with a series of TV commercials fea-
`turing former professional athletes
`arguing over whether Miller Lite
`“tastes great” or is “less filling.”
`
`DRINKS
`70 S
`D
`
`Vodka, Gin, Rum &
`Coke // Chablis from
`California, White
`Zinfandel, Domaine
`Chandon, Beaujolais
`Nouveau // Light Beers (Miller Lite,
`Bud, Amstel Light), Corona
`
`1975
`Stuck fermentation
`helps Sutter Home
`launch White Zin
`
`1975
`Miller Lite is introduced,
`featuring lower carbs
`and calories
`
`1976
`With memorable jingle “Riunite on ice,
`that’s nice,” Banfi’s Riunite Lambrusco
`becomes America’s #1 wine import
`
`1977
`The industry begins shift to the
`metric system, marking the begin-
`ning of the end for “fifths” of liquor
`
`1979
`Brown-Forman
`buys Southern
`Comfort
`
`1979
`Grupo Modelo
`begins importing
`Corona to the U.S.
`
`1982
`Bordeaux vintage
`hailed by
`Robert M. Parker Jr.
`
`Jan12 75 Years BMG Anniversary_V3.indd 7
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`In TV ads, Orson Welles touted Paul Masson:
`“We will sell no wine before its time.”
`
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`BEVERAGE MEDIA
`
`75YEARS
`
`of scale and im-
`prove their route
`to market. Nota-
`bly, beginning in
`the mid-eighties,
`French business-
`man Bernard Ar-
`nault combined
`two iconic luxury
`companies, Louis
`Vuitton and Moët
`Hennessy, into one global giant—LVMH.
`In 1987, The Seagram Company, Ltd., con-
`trolled by the Bronfman family, engineered
`a then eye-popping $1.2 billion acquisition
`of Martell Cognac.
`Meanwhile, scores of small, family-
`owned beverage alcohol wholesalers faced
`unrelenting pressure to either grow or
`succumb to buy-outs. As the costs of la-
`bor and transportation increased, and as
`the retail and hospitality tier experienced
`waves of consolidation of their own, less-
`efficient wholesalers started to sell
`out to competitors or simply close
`their doors.
`Over time, the strong got bigger
`and stronger. Surviving distributors
`strived to achieve statewide cover-
`age, and soon the industry saw the
`rise of big, multi-state distributor-
`ships. For wine and spirits, Southern
`Wine & Spirits of America emerged
`as the second tier’s leader, while
`other players including Glazer’s, Charmer,
`
`Distribution
`At the start of the decade, there were
`generally dozens of small distribu-
`tors in a given market, representing
`the major spirits and/or wine brands,
`sometimes just covering a section of
`a large city. Consolidation, how-
`ever, quickly brought change, with
`surviving distributorships achieving
`statewide coverage.
`
`NDC and Wirtz also built massive multi-
`state operations. In the beer sector, Reyes
`Holding LLC and Ben E. Keith, among
`others, likewise built up strong multi-state
`wholesaling operations.
`In wine, wine coolers cooled off at the
`end of decade as so-called “fighting vari-
`etals” began cropping up in California, led
`by Glen Ellen and Kendall-Jackson. In spir-
`its, the decade saw a definite rise in status
`for bartenders—er, make that mixologists—
`evident in the 1988 release of the romantic
`drama Cocktail, starring Tom Cruise.
`
`DRINKS
`80 S
`D
`
`Scotch on the
`Rocks, Absolut,
`Captain Morgan //
`Wine Coolers—
`Bartles & Jaymes,
`Seagram’s // Anchor
`Steam, Sam Adams
`
`The 1980s
`Boomers: A New Generation of
`Wine Lovers, Cocktailians and
`Micro-Beer Lovers
`
`As millions of prosperous
`baby-boomers reached legal
`drinking age, their arrival
`gave rise to a new genera-
`tion of brands, with the sky-
`rocketing rise of Absolut
`Vodka perhaps the most
`noteworthy example. Pow-
`ered by simple yet evocative
`advertising, Absolut man-
`aged to separate its vodka,
`even though the product is
`technically tasteless and odorless. Then
`the brand shook up the category in an un-
`precedented way, introducing the first fla-
`vored vodka, Absolut Peppar, in 1986; the
`vodka flavor parade began, and continues
`to accelerate 25 years later.
`During this go-go decade, both do-
`mestic and foreign suppliers initiated a
`sweeping series of mergers and acquisitions
`to drive costs down, increase economies
`
`1979
`Grupo Modelo
`begins importing
`Corona to the U.S.
`
`1982
`Bordeaux vintage
`hailed by
`Robert M. Parker Jr.
`
`1984
`National Minimum
`Drinking Age Act raises
`legal drinking age to 21
`
`1984
`Jim Koch establishes the
`Boston Beer Co., maker
`of Samuel Adams
`
`1984
`Seagram’s
`Coolers
`debut
`
`1986
`First flavored
`vodka: Absolut
`Peppar
`
`1986
`New York State
`allows credit card
`sales in liquor stores
`
`1987
`Schieffelin &
`Somerset is
`formed
`
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`

`

`BEVERAGE MEDIA
`
`75YEARS
`
`Social Responsibility
`As the decade progressed, the drinks
`industry mounted a variety of social
`responsibility campaigns, supporting
`national ad campaigns to promote
`moderation and combat underage
`drinking, and funding programs for
`designated-driver awareness.
`
`The 1990s
`Boom Times for Wine, Luxury
`Brands and the Rise of the
`Internet
`
`If there was one single “tipping point” in
`the 1990s, it came early on, with CBS’s
`now-famous November 1991 60 Minutes
`broadcast exploring the so-called “French
`Paradox,” which suggested that French
`men and women live longer lives and en-
`joy lower rates of heart disease despite their
`notoriously higher-fat diets and relatively
`little exercise. Why? Well, wine, and es-
`pecially red wine, seemed to be part of the
`answer, according to doctors interviewed
`by Morley Safer in the news piece.
`Faster than you can uncork a bottle,
`sales of wine, and particularly reds, shot
`up across retail shops, supermarkets and
`restaurants. It was good news for wine-
`makers around the world, and in retro-
`spect is credited with tilting the Ameri-
`can palate from white wines toward red,
`and for launching the decade-long rise in
`popularity of Merlot.
`
`Meanwhile, in the same year, after an
`epic lobbying battle, the U.S. government
`increased the federal excise tax (FET) on
`beverage alcohol, putting pressure on the
`overall sales of beer, wine and spirits. The
`decade also saw a marked rise of anti-alco-
`hol campaigns.
`During this decade, the company con-
`tinued to serve the needs of the local li-
`censee via its still growing list of state
`publications. Working closely together,
`Bill Slone, Jason Glasser, former IBM ex-
`ecutive Michael Roth and now third-gen-
`eration family member Jody Slone under-
`took a host of initiatives to enhance the
`capabilities of the company, including:
`improving communications among its
`publications and, simultaneously, launch-
`
`ing new editorial and marketing products
`driven by the latest technologies. Accord-
`ing to Roth, “Our growing suite of services
`introduced in the late 1990s enabled us to
`communicate with our subscribers both in
`print and online.”
`Meanwhile, in the pages of Beverage
`Media, editors tracked the highly profit-
`able growth of premium, super-premium
`and luxury wine and spirits brands, while
`also tracking the growth of new Internet-
`related sales channels and the challenges,
`and opportunities, they offered.
`
`Consolidation
`And, of course, con-
`solidation continued
`at all three tiers of
`the industry. Allied Domecq was formed
`via a 1994 merger between Allied Lyons of
`the UK and Pedro Domecq of Spain, only
`to be itself auctioned off to Pernod Ricard
`in 2005, which then spun off a number
`of brands to Fortune Brands (Beam) and
`Diageo, the latter company the result of
`a dramatic 1997 merger of two British gi-
`ants in the global drinks business, Guin-
`ness and Grand Metropolitan.
`The decade/century ended anticlimac-
`tically, with a feared Millennium-induced
`shortage of Champagne—much like the
`threat of the so-called Y2K computer
`bug—never materializing.
`
`DRINKS
`90 S
`D
`
`Single Malt
`Scotch, Hennessy
`Cognac, vintage-
`dated Armagnac, Sex
`on the Beach // Merlot, Clas-
`sified Growth Bordeaux, Grand
`Cru Burgundy, Vintage Port,
`Champagne for the Millennium
`// Micro-Brewed Beer, Zima
`
`1991
`Century Council is formed;
`emblematic of industry
`efforts of social responsibility
`
`1992
`Jim Beam Brands
`introduces small-
`batch bourbons
`
`1993
`Wine and Spirits
`Wholesalers of America
`celebrates 50th anniversary
`
`1996
`Seagram runs TV and radio ads,
`ending spirits industry’s voluntary
`ban on certain types of advertising
`
`1997
`August
`front cover of New Jersey
`Beverage Journal
`
`1997
`Sidney Frank introduces
`Grey Goose Vodka during a
`flight on the Concorde
`
`Jan12 75 Years BMG Anniversary_V3.indd 9
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`

`

`BEVERAGE MEDIA
`
`75YEARS
`
`Wine in
`the U.S.
`By 2010, essentially
`riding two straight de-
`cades of steady growth
`in consumption, the United
`States became the single larg-
`est wine-drinking nation
`in the world (by volume,
`not per capita), outpacing
`such old world stalwarts as
`France, Italy and Spain. Total wine
`sales topped the 300 million case
`level by 2010, even despite Ameri-
`ca’s damaging economic crises.
`
`unabated. Seagram was sold to a French con-
`glomerate, Vivendi, in 2000, which in turn,
`auctioned off such iconic brands as Mumm,
`Perrier-Jouët and Martell to Pernod Ricard,
`among others. In 2002, SAB, a South Afri-
`can brewing conglomerate, acquired Miller
`Brewing, from Philip Morris, creating SAB-
`Miller. In that same year, Grupo Campari of
`Italy acquired a controlling interest in Skyy
`Spirits, eventually gaining majority control
`in 2005. In 2004, Bacardi paid a reported $2
`billion to acquire
`Grey Goose from
`Sidney Frank,
`while in the same year Constellation
`Brands bought Robert Mondavi Corp.
`for $1 billion.
`leading
`Next, Molson, Canada’s
`brewer, merged with Coors in 2005,
`which in turn merged with SABMiller,
`in 2007, to create MillerCoors. Then,
`in the biggest drinks deal of the decade,
`Anheuser-Busch was acquired by In-Bev,
`a Brazilian-based worldwide brewing gi-
`ant, for a mind-boggling $52 billion.
`
`The 2000s
`Industry Acceleration,
`as Everyone Gets Online
`
`Amidst all the Millennial excitement,
`the Internet boom ushered in a complex
`new sales channel: online ordering. The
`powerful, ever-widening reach of this
`new technology intensified industry de-
`bate, primarily in the wine sector, over
`direct-to-consumer shipments that by-
`passed both distributors and licensees.
`The issue reached the U.S. Supreme
`Court, which in 2005 ruled (on a 5-4 vote)
`that states must give out-of-state wineries
`the same legal treatment accorded to in-
`state wines. In what became known as the
`“Granholm” decision, the Justices ruled
`that, in this situation, the Federal Interstate
`Commerce law trumped the 21st Amend-
`ment, and that regulations in Michigan
`and New York were discriminatory. Far
`from being definitive, however, the ruling
`essentially pushed the responsibility of re-
`solving direct-shipping issues back to indi-
`vidual states, setting off new legal battles in
`this ongoing and divisive issue.
`As the decade started, “drinking less
`and drinking better” was wine’s catch
`phrase; but indeed Americans were drink-
`ing more wine every year—with rising
`consumption embracing everything from
`cult Cabs to Two-Buck Chuck. In spirits,
`absinthe returned (legally); bourbon expe-
`rienced a small-batch-fueled renaissance;
`and vodka flavors went wild, both in an
`explosion of branded varieties and the rise
`of bar-made infusions. Tequila showed off
`its premium side as Patron became the first
`$40+ tequila to hit the million-case mark.
`
`Consolidation Continues
`At the global level, mergers activity in the
`drinks business also continued, seemingly
`
`A Look Forward
`Against this backdrop of boom and bust
`marketplace turbulence, Beverage Me-
`dia Group shifted its focus to becoming a
`technology company as much as it was a
`publishing company. By creating an online
`exchange, Beverage Media was now able to
`support suppliers, wholesalers and retailers
`with an e-commerce system that would in-
`crease operational efficiency for buyers and
`sellers. The company also launched into
`the business of hosting and designing web-
`sites for retailers to sell wine, spirits and
`beer efficiently to consumers.
`Reflecting on the evolution of the com-
`pany his father and uncle founded in 1936,
`Bill Slone recalls talking to his father one
`day about the railroad companies that were
`once a dominant factor in the nation’s econ-
`omy. On hearing his son’s account, Max
`asked, “Why don’t they dominate any lon-
`ger?” After Bill hesitated, Max said, “They
`thought they were in the railway business,
`but they weren’t. They were in the transpor-
`tation business.” Laughing today, Slone says
`his father’s insight is still true; he applies it
`to Beverage Media, noting, “We have to keep
`in mind we are not in the printing or web
`business, we are in communications!”
`Summing up, Slone says, “We have a
`unique position here at Beverage Media, be-
`cause we really touch all three tiers of the
`industry, and we have an opportunity to
`connect everyone in this great business; it’s
`in our DNA and we take on this role with
`great passion.” ■
`
`DRINKS
`00 S
`D
`
`Cosmopolitan,
`Artisanal Whiskies,
`Flavored Vodkas //
`grower Champagne,
`[yellow tail], Spanish
`Wines, Prosecco, Organic wines
`// Craft Beers
`
`Sidney Frank introduces
`Grey Goose Vodka during a
`flight on the Concorde
`
`2000
`The Casella family and
`W.J. Deutsch introduce
`[yellow tail] to the U.S.
`
`2001
`Diageo, Pernod Ricard
`acquire Seagram’s
`liquor & wine empire
`
`2002
`Austin Nichols
`becomes Pernod
`Ricard USA
`
`2003
`Regulation and taxation of
`alcohol is officially transferred
`from IRS and ATF to TTB
`
`2004
`Film Sideways puts
`Pinot Noir in the
`spotlight
`
`2005
`Supreme Court
`issues “Granholm”
`ruling
`
`Jan12 75 Years BMG Anniversary_V3.indd 10
`
`12/15/11 1:13:55 PM
`
`PROVI-1031-000010
`
`