As the curtain draws on 2024, we look back at the 10 biggest news stories to hit the spirits industry headlines over the last year.
The world of spirits moves pretty fast – one month you’re reading about a feud between a celebrity and a drinks industry giant, and the next you’re learning of an alleged firearms charge and a decline in alcohol sales.
It was all happening in 2024. Keep reading to refresh your memory of the biggest stories of the year.
Following a year of tit‐for‐tat lawsuits, spirits firm Diageo and rapper Sean ‘Diddy’ Combs released a joint statement confirming they had settled their legal disputes in January. The legal conflict was sparked in June 2023, when Combs alleged that the drinks giant had neglected DeLeón Tequila, which they co‐owned at the time, because of his race.
Diageo then severed ties with Combs, and described his lawsuit as a sham, before countersuing him in October 2023, alleging he had “leveraged” allegations of racial animus to extort the firm.
The full statement read: “Sean Combs and Diageo have now agreed to resolve all disputes between them. Mr Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice. Diageo and Mr Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón Tequila, which Diageo now solely owns.”
Almost 170 Drizly employees lost their jobs following Uber’s decision to close the alcohol‐ delivery service in January. Despite acquiring the e‐commerce platform in February 2021 for approximately US$1.1 billion, the company said consumers were “increasingly preferring” the one‐stop‐shop convenience of being able to get multiple types of products delivered using the same app, and as such it would shutter Drizly in favour of its Uber Eats app.
The company said alcohol sales had more than doubled in the previous year on its Uber Eats app. It also highlighted that the majority of Drizly consumers also have an Uber account. Drizly was the US’s leading on‐demand alcohol marketplace, and worked with local retailers to offer consumers a wide collection of spirits, beer and wine.
“We’re grateful to the Drizly team for their many contributions to the growth of the beverage alcohol delivery category as the original industry pioneer,” said Pierre‐ Dimitri Gore‐Coty, Uber’s senior‐vice president of delivery.
In more recent news, Drizly was ordered to repay US$4 million in withheld tips.
According to reports in the UK national press in February, Dariusz Plazewski, the co‐founder of whisky distilleries Bimber and Dunphail, was due to stand trial in Poland for a crime he allegedly committed more than 20 years ago, including alleged possession of a firearm.
Following the reports, both distilleries released a statement, noting that Plazewski had relinquished all his responsibilities for both sites, and decision‐making was now in the hands of the existing, experienced teams. “While we understand the news of his personal legal issues may well raise questions and concerns, we want to assure you that our businesses remain fully operational and committed to serving you with the same level of excellence and dedication as always.”
Bimber co‐founder Ewelina Chruszczyk and Dunphail director of whisky creation Matt McKay lead the activities of both distilleries. The statement said the pair would “work… with our dedicated staff to ensure that there is no disruption to our services”.
In February, the Scotch Whisky Association (SWA) revealed that Scotch whisky exports were up by 14% in value in 2023 when compared with 2019 figures. The total global export figures were worth £5.6 billion (US$7.1bn) in 2023, with the equivalent of around 1.35 billion 700ml bottles exported.
These figures, however, were down by 9.5% in value and down by 19% by volume compared with 2022, which was described as a “bumper” year, on account of markets reopening following the Covid‐19 pandemic. Asia Pacific continued to be the largest regional market by value, while the US remained the largest national market by value. A dip is expected for 2024’s growth due to rising living costs.
The SWA said the reintroduction and doubling of tariffs on Scotch, due in March 2025, could hinder the sector’s growth. With Donald Trump returning to the White House in January, the government has been urged to press for longer tariff‐free trade to avoid more damage.
In June, IWSR Drinks Market Analysis reported that global alcohol sales declined by 1% in volume in 2023, despite global total beverage alcohol sales being up by 2% in value in the same year, compared with 2022 (when sales rose by 1%).
Furthermore, it was reported that 2023 had seen the first drop in alcohol sales in the US market in nearly 30 years, with every major alcohol category, apart from Tequila, some US whiskey segments, and ready‐to‐drink products, experiencing a decline in the market. Alcohol’s decline was attributed to a “rapid softening of demand” due to cost‐of‐living pressures and a “strong rebound in inventories weighing on key categories”.
The global alcohol sector’s recovery is expected to begin in 2025, according to IWSR, and between 2023 and 2028, alcohol sales are predicted to rise by a compound annual growth rate of 1%, led by India, China, and the US.
July saw strike action hit the Liquor Control Board of Ontario (LCBO), after talks between the Canadian government enterprise and the Ontario Public Service Employees Union (OPSEU) broke down.
Marking the first strike action in the LCBO’s 97‐year history, approximately 10,000 OPSEU employees downed tools from 5 July, until an agreement was made two weeks later. The union’s demands included expansion of public retail locations and in‐house capacity for warehousing and logistics, as well as moving casual roles to permanent. The OPSEU said the ratified deal, which subsequently ended the strike, included “significant improvements” from the LCBO’s previous offer, which had been presented on 4 July.
The new contract also included a guarantee of no store closures, and a cap on the number of agency stores (similar to private liquor stores). In addition to wage, severance, and benefit improvements, the deal included 1,000 new permanent part‐time retail roles and 60 permanent full‐time jobs in logistics.
In August, screenshots of a leaked e‐mail shared on X appeared to show that Jack Daniel’s owner, Brown‐Forman, was abandoning its corporate diversity, equity and inclusion (DEI) programmes.
In the leaked email, Brown‐Forman said it believed that to better reach consumers from across the globe, “we must include different perspectives and experiences in our decisions and ways of working”. As such, the decision was made to “adjust our work to ensure it continues to drive business results while appropriately recognising the current environment in which we find ourselves”.
The move was labelled as “short sighted” by Eric Bloem, the Human Rights Campaign Foundation’s vice‐president of programmes and corporate advocacy. “Hastily abandoning efforts that ensure fair, safe and inclusive work environments for LGBTQ+ people based on manufactured outrage from MAGA bullies is bad business, and leaves… employees and millions of LGBTQ+ allied customers behind.”
In a deal that is expected to take 12 months to complete, in September Highland Park owner Edrington reached an agreement to sell blended Scotch brands The Famous Grouse and Naked Malt to William Grant & Sons.
Scott McCroskie, Edrington CEO, said the decision to offload the blended whiskies was driven by the firm’s strategy to focus on its core strengths and the growth opportunities in the ultra‐premium spirits category. “We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra‐premium spirit brands.
“The Famous Grouse is a well‐loved brand that has consistently performed in its category during the time it has been part of Edrington, and Naked Malt has grown its reputation.
“I am confident that these brands are well‐ positioned to continue to succeed as part of the William Grant & Sons portfolio.”
On 11 October, the Chinese Ministry of Commerce (MOFCOM) imposed provisional anti‐dumping duties against imports of European brandy and Cognac after trade tensions escalated between Beijing and Brussels on account of the EU approving additional duties of up to 35% on Chinese electric vehicles.
While MOFCOM had previously said it would not apply anti‐dumping measures on EU spirits, the retaliative U‐turn means that European producers exporting to China will have to provide security deposits based on provisional anti‐dumping duties, a move that is predicted to “drastically” decrease the competitiveness of the category in the country. It will likely lead to price increases for consumers. One trade association warned that it would have an “extremely negative impact” on EU‐based producers, and called on the European Commission to urgently redouble efforts to find a negotiated solution with its Chinese counterparts.
After initially filing for bankruptcy on 19 August, Swedish distillery Mackmyra was acquired by former board member Lennart Hero and investment firm No.1 Capital.
In a statement on its website at the time of filing, chairman Petter Ski said it was “unfortunately not possible to continue the company’s operations”, and that the management and board had “struggled hard to come to terms with the company profitability and cash flow”. At that time, Hero was the main shareholder of Mackmyra Svensk Whisky, and the company’s largest lender.
The new deal was announced on 11 October, and a statement from the distillery said its main goal was now “to retain as many of the skilled employees at Mackmyra as possible. “With this new venture, we hope to revive and strengthen Mackmyra’s proud heritage, and we see looking forward to an exciting future for both the staff, the barrel owners, and the brand.”
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