**Key Themes This Week:**

- Legal/regulatory disruption accelerating: Sixth Circuit strikes Ohio shipping law; Supreme Court may take up retail shipping cases May 14

- Tariff relief: 10% Scotch whisky tariff eliminated following King Charles state visit

- Beer showing cyclical recovery signs: ABI first volume growth since 2023; March shipments +2.5%; BPI above 50 for second consecutive month

- Spirits and wine under sustained pressure: Diageo US spirits -15.4%; total wine volumes at decade-low

- RTD/spirits-based cocktails as sole consistent growth driver across channels

- Distribution landscape in upheaval: RNDC exits 25+ markets in 2026; Manhattan Beer absorbs NY Opici rights

**Major Earnings:**

- AB InBev: Q1 volume +0.8% (first growth since 2023); organic EBITDA +5.3%; US depletions +0.3%

- Diageo: Q3 organic sales +0.3% (beat of -2.3% consensus); North America -9.4%; US spirits -15.4%

- Campari: Q1 organic +2.9% vs +5.1% consensus; shares -11%

- Boston Beer: YTD depletions -4%; guidance narrowed to -low to -mid single digits

- Celsius Holdings: Revenue +138% YoY to $782.6M; adjusted EBITDA margin 25%

- Ball Corporation: North American can supply sold through 2026, 90%+ through 2027

**Notable M&A/Transactions:**

- Stone Brewing sold by Sapporo to Firestone Walker (Duvel USA)

- LVMH exploring sales of Joseph Phelps, Eminente rum, Fenty Beauty stake

- ABI Newark brewery sold for $360M to Goodman North America

- RNDC: BreakThru acquiring KY/IN; QBD acquiring NE/SD/ND

- Manhattan Beer acquiring RNDC New York distribution rights (Opici)

- Golden Eagle Distributing acquires Rinella Company territory in Western Illinois

- Veritas Vineyards acquired by Veritas Legacy Partners

- Elixir Distillers appoints MISA Imports as US importer

- Ball Corporation completes Benepack acquisition

**Regulatory & Legal:**

- Sixth Circuit strikes Ohio wine retailer shipping law as unconstitutional

- SCOTUS to conference May 14 on AZ and IN retail shipping cases

- North Carolina "Free Our Spirits" campaign; Senate Bill 938 filed

- NYC Health Department launches citywide anti-alcohol cancer awareness campaign

- Cannabis class action lawsuits filed against Cresco, Green Thumb, Verano, Curaleaf

**Consumer/Retail Trends:**

- Total Wine dedicating 28-32 feet per store to THC beverages

- Hard lemonade hits $1.5B; spirits-based RTDs +144.6% within segment

- Surfside now #2 hard lemonade brand family at 9.9% share

- 27% of consumers switching to lower-priced retailers (up from 16%)

- Flavored sparkling wine: 25% CAGR since 2019

- On-premise wine sales -26% since 2019; draft beer gaining share

- Celsius CEO calls declining alcohol consumption "a major opportunity"

**Industry Support:**

- Wine Institute secures $6M USDA export funding

- WSWA graduates 28 women leaders through Columbia Business School program

- ABL designates May as Tavern Month; on-premise supports 2M+ jobs