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  "documentTitle": "MGP Ingredients, Inc. (MGPI)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2017-01-12 00:00:00",
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  "notes": "Uses quotes from CEOs of Pernod Ricard and Diageo to support the argument of market saturation.",
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      "text": "MGPI investors would be wise to learn from the recent history of the Vodka market for insights into what may happen in the whiskey market. The explosion of premium brands such as Grey Goose, Ciroc, Belvedere, Tito’s and countless others led to a saturation and maturation of sales in the vodka category. Consumer alcohol preferences are inherently fickle and constantly evolving, so while whiskey preference may be strong today, when tastes change it will leave a glut of brands and supply with few buyers.",
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      "text": "MGPI investors would be wise to learn from the recent history of the Vodka market for insights into what may happen in the whiskey market.",
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      "text": "Diageo meanwhile has witnessed a similar effect on Smirnoff and Ciroc, both of which recorded volume declines in the US of 4% and 3% during 2013/14.",
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      "text": "Over-saturation in the US vodka market is blurring category boundaries and damaging sales of established premium and super-premium brands.",
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      "kind": "quote",
      "text": "Ivan Menezes, CEO of Diageo, said earlier this summer: “In the US what did happen is you’ve had a lot of competitive entry; I think there are over 200 brands or items that came into the market in the last two years”",
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      "text": "According to Pierre Pringuet, CEO of Pernod Ricard, the influx of “hundreds” of new vodka brands over the past few years has negatively impacted sales of the group’s premium vodka Absolut. Depletions in the US during the 2013/14 financial year came in at -2%, causing overall volume sales of the brand to decline 4%. “Let’s be honest, we are not pleased with the performance of Absolut in the US,” Pringuet said during a presentation of the French drinks group’s end-of-year financial presentation. “The reality is that there are several hundred new entrants in the market. Basically 99% or more of these brands will not survive, but the problem is that they do take market share.",
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      "text": "\"The reality is that there are several hundred new entrants in the market. Basically 99% or more of these brands will not survive, but the problem is that they do take market share.\" — Pierre Pringuet, CEO of Pernod Ricard. \"In the US what did happen is you’ve had a lot of competitive entry; I think there are over 200 brands or items that came into the market in the last two years\" — Ivan Menezes, CEO of Diageo.",
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      "text": "Source: The Spirit Business",
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      "kind": "title",
      "text": "Case Study: Whiskey Will Follow The US Vodka Market, Which Became Saturated From Hundreds Of Entrants",
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