Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Timothy Ramey - D. A. Davidson & Co.
Timothy Ramey - D. A. Davidson & Co.
You mentioned hedging losses. Was that currency hedges or what exactly was that and the order of magnitude, please?
Robert P. Ryder
Yes, it was mostly transactional currency hedges, Tim, and the total for the quarter was probably around $8 million. So we had some ineffectiveness and some other things going on in the hedging portfolio, so we look at that as a onequarter aberration.
Timothy Ramey - D. A. Davidson & Co.
And I think your sales guidance implies an acceleration of kind of organic performance in line for the second half, if I'm not mistaken. I mean, seasonal is with us every year. What gives you that confidence that we'll see that?
Robert S. Sands
Yes, your deduction is exactly right. There's a lot of things going on in the portfolio. Probably the most important thing is that, you know, we've taken a lot of pricing. Typically you see the effect pricing on volume occurring to a greater degree the closer to the actual pricing action we've taken and to a lesser degree as you start going out. So as we get farther away from the point in time when we've taken the pricing increase, then the market has adjusted to the pricing and competitors have reacted. We are expecting stronger sales growth in the second half.
Operator
Your next question comes from Reza Vahabzadeh - Lehman Brothers.
Reza Vahabzadeh - Lehman Brothers
You talked about the grape cost increase in the U.S. and then also about the packaging cost increase as well for the Wine business. It wasn't clear to me what the total cost inflation is that you expect for next year and the price increase that you need to offset that for the Wine business and then the same thing, if it's possible, for the Beer business.
Robert P. Ryder
Yes. What we said was that we are experiencing about mid single digit COGS increases and that we are more than offsetting that with price increases. Our price increases have been in the mid single digit range, so mid single digit price increase has more than offset mid single digit COGS increases. [inaudible] percentage on a smaller base versus a larger base.
Then in Beer we have contractual cost increases from the supplier Modelo, and those contractual cost increases are very small, less than inflationary rates. And we're really not subject to a lot of other COGS or input cost pressures in the Beer business. We're pretty insulated from that due to the nature of the business.
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