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SEPTEMBER 2008 www.binonline.net
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BEVERAGE INDUSTRY NEWS
S E R V I N G C A L I F O R N I A’ S B E E R / W I N E / S P I R I T S I N D U S T R Y S I N C E 1 9 3 4
CANADIAN CLUB
Unapologetically and fashionably old school,
yet very much on the cutting edge of mixology
trends and consumer tastes.
HIRAM WALKER LIQUEURS • MOSCATO D’ASTI WINE SHOWCASE • NEW PRODUCTS • INDUSTRY NEWS • MARKETING INFO
40
20
Inside 14
BIN
2 INDUSTRY INSIGHT
By Alan Forester, CPA, Attorney
28 INDUSTRY EVENT
THE 5TH ANNUAL DIAGEO
GOLDEN BAR AWARDS
6 INDUSTRY NEWS
30 PRODUCT PROFILE
10 NEW PRODUCTS & PROMOTIONS MIGHTYPINE SHELVING
20 COVER FEATURE
NORTHERN (DOUBLE) EXPOSURE
Canadian Club was your father’s
drink…but there’s more to the
story than that!
28
INDUSTRY INSIGHT BIN
Beverage Industry News
BY ALAN FORESTER, CPA, ATTORNEY VOLUME 92, ISSUE NUMBER 27
WWW.ABCLAWYER.COM 1-877-LIQUOR-8 FOUNDED IN 1934
www.binonline.net
2 BIN 2 0 0 8 • I S S U E 8
INDUSTRY INSIGHT continued
BIN ONLINE
www.binonline.net
An LLC allows owners to have less limited liability. All members of the LLC have
control. Like a partnership, it also issues a K-1, making it a pass-through organ-
ization, and therefore is taxed only once at the individual level. Additionally,
owners of an LLC are responsible for paying a self-employment tax.
PARTNERSHIPS:
Partnerships, as organizations, do not pay taxes; instead, income and certain
expenses are “passed through” to the owners, who must report and pay tax on
the income. A partnership must issue a K-1 for the partners. In this pass-
through system of taxation, partnerships are taxed once at the individual level.
Partnerships are also liable for self-employment tax, which has to be paid by
each partner.
LIMITED PARTNERSHIPS:
A limited partnership has some partners, called “limited partners,” who have
less of interest and liability in the company and thus are not allowed to partici-
pate in the management of the company. In a limited partnership, there must
be at least one general partner, who does not get the benefit of limited liability
but makes all management and investment decisions. This structure is popular
in the entertainment and professional fields. For example, group of profession-
als, such as accountants or lawyers, or a theatre group of actors or actresses.
Labor service organizations are often organized as limited partnerships.
A common type of limited partnership is the Family Limited Partnership
(FLP), which is controlled by members of a family. Again, the partnership itself
does not get taxed and instead, the income and expenses are passed-through
to the owners of the partnership, in proportion to their interests. In an FLP, the
senior family members contribute assets in exchange for a small general part-
ner interest, to be held by the senior partners for their lifetime, and a large lim-
ited partner interest. Then, they can give portions of the limited partner interest
to their children, their grandchildren, etc.
Go online and discover a
The FLP structure allows the family to protect the assets from claims of
wealth of resources at your future creditors and ex-spouses. Creditors cannot force cash distributions,
fingertips. vote, or own the interest of a limited partner without the approval of all general
partners. If spouses divorce and a limited partner ceases to be a family mem-
ber, the partnership documents can require that the asset be kept within the
• CURRENT ISSUE family structure. The FLP cannot be dissolved unless agreed to by the general
• NEW PRODUCTS partners, and plaintiffs filing suit against the FLP can only obtain a “charge”
• WILFRED WONG’S MONTHLY against the partnership, which is a disincentive to many potential plaintiffs.
WINE SELECTIONS
• BIN PRODUCT OF THE WEEK GENERAL PARTNERSHIPS:
A general partnership has two or more partners running the business, carrying
• BEVSOLUTIONS
equal weight in responsibilities and liabilities. Movie production companies
• ONLINE GUIDE TO NATIONAL
often organize as general partnerships. There is no limited liability for the part-
BEVERAGE COMPANIES ners; however, there is somewhat of a limit to the liability though the existence
SUPPLIERS/IMPORTERS/ of the other partners, by spreading risk and liability amongst the partners.
MARKETERS/WHOLESALERS
• CLASSIFIEDS Alan Forester is an attorney, CPA and an expert witness in Alcoholic Beverage
• INDUSTRY JOB POSTINGS Control Law. For more information, please visit www.ABClawyer.com or call
877-LIQUOR-8 (877-547-8678).
• SPECIAL AD RATES AVAILABLE
ONLINE
Disclaimer: This article is not to be construed as legal advice. Please check
with an attorney before taking action.
www.binonline.net 4 BIN 2 0 0 8 • I S S U E 8
INDUSTRY NEWS
GLENLIVET – THE GATHERING sador of tequila in the U.S. Julio is very well worker who contributes to the local economy
Glenlivet – The Gathering is an annual wel- known for Tommy’s Mexican Restaurant in while producing ‘America’s Native Spirit.’”
coming of Glenlivet enthusiasts to reward San Francisco, owned and operated by the
consumers with exclusive tastings, product Bermejo family since 1965.
knowledge and brand culture first-hand.
Guests in kilts and sashes at The Glenlivet distillery Pictured L-R: Julio Bermejo and Sammy Hagar
for an evening tour of the grounds followed by tra- hosted a tasting of Cabo Wabo Tequila at La
ditional Scottish fare and ceilidh (dancing). Esquina in New York. EARLY TERMINATION OF
DISTRIBUTION AGREEMENT
FOR VIN & SPRIT BRANDS
AGUIRRE IMPORTS BEAM GLOBAL SPIRITS & BY FUTURE BRANDS
SPONSORS CARSON WINE JOINS KENTUCKY IN Pernod Ricard is pleased to announce the
PALMER OPEN CELEBRATINING “BOURBON signing of an agreement with Fortune Brands
Aguirre Imports recently sponsored the 5th HERITAGE MONTH” for an early termination of the distribution by
Annual Carson Palmer Open. This year's Beam Global Spirits & Wine, Inc. applauds Future Brands of Vin & Sprit brands in the US,
event was a huge success with over 150 Kentucky Governor Steve Beshear’s recogni- and in particular Absolut.
golfers and athletes participating – raising tion of September 2008 as “Bourbon The initial contractual term of the distribu-
over $80,000 for Hillview Acres Children's Heritage Month”. This proclamation cele- tion agreement for V&S brands by Future
Home. For more information please contact brates Bourbon as “America’s Native Spirit” Brands, a joint venture company between V&S
Ernesto Aguirre at ernestoiv@aguirretequi- for the second year in a row by honoring the and Fortune Brands, was scheduled to end on
laimports.com family heritage and deep-rooted legacy of February 2012. The joint venture partners
the Bourbon industry in the Commonwealth. have agreed to an early termination of this
Last year’s U.S. Senate resolution agreement on October 1st 2008 with Pernod
declaring September as “National Bourbon Ricard paying to Fortune Brands a compensa-
Heritage Month,” continues to increase tion of $230 million. Together with the termi-
awareness of Bourbon and its birthplace. nation of the distribution, V&S will also stop
“Bourbon demand is growing and the cate- being a shareholder in Future Brands.
gory is expanding into emerging internation- Absolut and the rest of the V&S portfolio
al markets,” said Tom Flocco, president and will join Pernod Ricard USA's portfolio of lead-
CEO of Beam Global Spirits & Wine, Inc. ing spirits and wines brands on October 1st
“At a time when many are only forward-look- 2008. The savings generated by stopping the
Pictured on Left: Ernesto Aquirre of Aguirre Imports
at the 5th Annual Carson Palmer Open.
ing, we applaud Governor Beshear and the payments of commissions to Future Brands, the
Commonwealth for honoring the timeless quicker than anticipated implementation of
craftsmanship and heritage behind the pro- cost synergies on our North American struc-
duction of Bourbon. tures and the very positive impact of an imme-
CABO WABO TEQUILA As a key player in the Bourbon category, diate combination of our brand portfolios in
TASTING WITH Beam Global is proud of the economic the US will more than offset the costs of exiting
SAMMY HAGAR impact distilled spirits have had on the this distribution agreement.
Cabo Wabo Tequila hosted an intimate Commonwealth of Kentucky, including: more Separately, and as part of the
tequila tasting and reception at La Esquina in than $3 billion in gross state product, more announced disposal plan, Pernod Ricard will
NYC with Sammy Hagar and Julio Bermejo than 3,000 high-paying jobs, nearly $115 sell the Cruzan rum brand and related assets
on July 23rd. Sammy Hagar is not only a million in state and local taxes. to Fortune Brands for an amount of $100 mil-
rock n’ roll legend, but is a Tequila aficiona- Beam Global continues to lead the lion. Cruzan had been acquired in 2005 by
do which led him to create Cabo Wabo Bourbon category and invest in its growth. V&S and has been since then a fast growing
Tequila, one of the world’s finest tequilas. “We take pride in our Kentucky footprint,” brand, reaching more than 750 000 9L
Sammy’s great pal Julio Bermejo has helped said Flocco. “As a global company our oper- cases in 2007 and a close to break even
along the way as he is one of the top tequi- ations are a significant source of livelihood contribution after advertising and promotion
la experts in the world, and the chief ambas- for the Commonwealth and we honor every costs.
6 BIN 2 0 0 8 • I S S U E 8
INDUSTRY NEWS continued
WINE LOVERS UNITE TO Carlo Resort & Casino in Las Vegas. The ABL’s home on the web at www.ablusa.org
HELP THE ENVIRONMENT convention’s theme, “Leveraging Your for more details.
ONE CORK AT A TIME Strengths in Today’s Economy”, highlights the
TerraCycle, the maker of your favorite eco- challenges that many alcohol beverage
friendly products, is excited to announce their retailers face in light of the increased costs NEW ZEALAND BREAKING
partnership with VinVillage, the social organ- associated with running a business in today’s NEW RECORDS
ization for wine enthusiasts. TerraCycle is economic climate. The convention’s pro- New Zealand wine exporters are expected
working with restaurants, bars, tasting winer- gram will be tailored to that theme with the to hit the $1 billion market by 2010.
ies, and now VinVillage members, to collect goal of providing retailers with ideas and According to local reports, NZ Winegrowers
natural and synthetic corks to be upcycled tools to survive and grow when the price of have boosted their offshore earnings by 14%
into products that will be available at major everything seems to be going up. in the past year to a record $797.8 million.
retailers across the nation. This is the first cork “The 2009 ABL Convention will cele- Wine volumes have risen at a compound
collection program that upcycles the collect- brate the retail tier of the alcohol beverage annual growth rate of about 20% over the
ed corks into affordable, eco-friendly con- industry and present ways in which retail- past decade, with this year's vintage survey
sumer products ers can run more efficient and profitable showing the latest harvest was up more than
TerraCycle’s first cork-based product is a businesses without losing sight of the impor- 30% on the 2007 vintage, which experi-
16 inch square corkboard that is perfect for tant role they play when it comes best prac- enced considerable droughts.
use in the home or office. These corkboards tices and responsibility,” said ABL executive Challenges for New Zealanders include
will be available at OfficeMax by director Harry Wiles. the economy and a significantly larger vin-
November. Several other products made With the newly remodeled Monte Carlo tage in 2008.
exclusively from corks and other post-con- as the backdrop, ABL Convention guests will The largest export market is Australia by
sumer waste are in development – look out engage in informative presentations with value, up 37% to $247 million. Exports to
for them as they hit store shelves across the speakers & alcohol beverage industry exec- the UK, which used to be NZ's largest mar-
United States. utives from the beer, wine and spirits sectors. ket, grew only 8% on 2007.
Used corks are collected through the The convention will also include educational
TerraCycle Cork Brigade‘, a new, nation- seminars covering industry trends and ways
wide recycling program with over 360 to increase profits, as well as social events, SKYY SPIRITS WELCOMES
organizations participating, and new groups including admission to the Night Club & Bar JASON DANIEL
Trade Show exhibit hall floor on both March SKYY Spirits welcomes Jason Daniel to its
joining on a regular basis. Anyone can sign
3rd and 4th. marketing team as Senior Brand Manager for
up for free on TerraCycle’s website at
Back by popular demand for 2009 is Skyy Vodka. In this role, Daniel will direct
http://www.terracycle.net/cork/cork.htm.
the Texas Hold ‘Em Poker Tournament, the national marketing programs supporting
Visit for more details on the Cork Brigade,
which, for the 5th consecutive year, will pit the flagship brand, as well as the new Skyy
and sign up today!
friends and colleagues against one another Infusions and SKYY90.
Using TerraCycle’s other Brigades as a
model, the Cork Brigade seeks a sponsor to in a match of poker skills. Once again,
facilitate cork collection. The Bottle Brigade there will be cash prizes for 1st, 2nd and PERNOD APPOINTS NEW
program, for example, has enabled TerraCycle 3rd place and an open bar. In addition to SENIOR VP OF SALES
to rescue and reuse over 2 million soda bottles. Texas Hold ‘Em, ABL plans to announce a Pernod has appointed Stephen Corrigan to
Thanks to generous sponsors (who donate 5 host of other events and speakers in the com- the role of senior vice president of sales for
cents per bottle collected) we have donated ing weeks. Pernod Ricard Americas Travel Retail with
almost $100,000 to non-profit organizations, The ABL Convention remains the best immediate effect. In his new role, he will be
and we aim to implement a similar program to and most affordable way for beverage retail- responsible for North America and Brazilian
reuse the millions of corks that are tossed into ers to take in everything that Las Vegas has duty-free, as well as Caribbean markets.
landfills each year, while simultaneously help- to offer. For the $250 registration fee, ABL
ing non-profit organizations. members will be able to enjoy a variety of
To learn more about the partnership or to hospitality events all in the company of their B-F NAMES NEW GROWER
request complimentary samples of the fin- industry colleagues and friends. Hotel RELATIONS REP/LUXURY
ished products, please contact George rooms at the Monte Carlo will also be dis- BRANDS
Chevalier at 609.393.4252 x249. counted for convention attendees. On- BROWN-FORMAN has named Shannon
premise retailers (bar, tavern, restaurant and Donnell to the new position of Grower
casino owners), off-premise retailers (liquor Relations Representative/Luxury Brands,
ABL ANNOUNCES 7TH and package stores owners) and alcohol focusing on ultra-premium brands Sanctuary,
ANNUAL CONVENTION beverage industry executives and associates Sonoma-Cutrer and Fetzer Coro Mendocino.
American Beverage Licensees (ABL) are encouraged to attend. Cindy Johnson has also been named to B-F's
announced its 7th Annual Convention, set to Fill out and mail in the 2009 ABL Grower Relations Team as Grower Relations
take place March 1-3, 2009 at the Monte Convention registration form to secure your Representative
Dean Phillips with other Aspenfor the attendees
Classic Central Coast and
room and registration today and please visit Northern Interior growing regions.
8 BIN 2 0 0 8 • I S S U E 8
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14 BIN 2 0 0 8 • I S S U E 8
BRAND PROFILE
HIRAM WALKER
CASTS A SPELL ON
SEASONAL FLAVOR
Thanks to this prolific line of flavored spirits, creating
wickedly good seasonal delights is a breeze.
T
hough Hiram Walker’s diverse line of premium liqueurs, triple sec, schnapps
and brandies have provided thousands of establishments with a “tool kit” for
building success and sales during the fall and winter holiday periods, the launch
of Hiram Walker Pumpkin Spice, the re-launch of limited edition seasonal liqueurs, and
the arrival newcomer Hiram Walker Gingerbread Liqueur breathes fresh new life into the
line’s natural appeal.
In keeping with Hiram Walker's long tradition of innovation, new Hiram Walker
Gingerbread is the first nationally available gingerbread liqueur. It has a gorgeous nut-
HOT PUMPKIN meg color countered with a distinctive sweet 'n' spicy mix of brown sugar, ginger, vanil-
1 part HW Pumpkin Spice Liqueur la and spice flavors. Hiram Walker Pumpkin Spice, meanwhile, returns after debuting to
1/2 part Kahlúa rave reviews and significant sales success in 2007. The rich pumpkin colored liqueur
4 parts hot coffee offers the delicious taste of vanilla, graham cracker and pumpkin pie. Both liqueurs pair
Pour all ingredients into a mug. Garnish with effortlessly with a wide range of spirits to create unique and festive holiday cocktails.
whipped cream and a sprinkle of pumpkin pie It is projected that the combination of these two unique, contemporary, seasonal fla-
spice. vors is expected to drive holiday sales for the overall Hiram Walker Brand. “Holiday
entertaining can be stressful,” said Cort Kinker, Marketing Director for Hiram Walker at
JACK-O-TINI Pernod Ricard USA.
1 part. Hiram Walker Pumpkin Spice “Our goal with these two exclusive, limited-edition seasonal liqueurs is to provide
1 part Jameson® Irish Whiskey
easy, great tasting cocktail solutions with a distinctive flair during the holiday selling sea-
1 part fresh sour mix
2 fresh ginger slices muddled (optional) son, when consumer spending is at its peak and time is at a premium,” Kinker says. “With
the success of Pumpkin Spice last year, the decision to bring it back this holiday season
Shake with ice and strain into a martini glass.
was easy, and adding Gingerbread to the mix just made sense.”
Garnish with an orange peel.
The launch of Gingerbread and the return of Pumpkin Spice capitalize on the soaring
GINGERBREAD COOKIE popularity of flavored cocktails, according to Kinker. “Americans love special holiday fla-
1 part HW Gingerbread Liqueur vors, as evidenced by the phenomenal success of Gingerbread and Pumpkin Spice
1 part Absolut® Vodka Lattes,” Kinker adds. “Both flavors are great for home entertaining, or for adding rele-
1/2 part Kahlúa vance and excitement to any drink menu.”
1 part half & half
Furthermore, the seasonal products will be supported with marketing initiatives includ-
Shake ingredient with ice and strain into a martini ing trade advertising, sampling (where legal), on- and off-premise point of sale materials
glass. Garnish with a crushed graham cracker rim
including recipe neckers, case talkers, and re-designed 4-bottle counter units, table tents
and a skewer of spiced gumdrops.
and a bartender recipe guide. Pumpkin Spice will return in its unique case shipper, while
GINGERBREAD-TINI Gingerbread will sport the new Hiram Walker shipper perfect for cross merchandising
1 1/2 parts HW Gingerbread liqueur with Absolut Vodka and Kahlúa Coffee Liqueur.
1 part Absolut® Mandrin Hiram Walker Gingerbread and Pumpkin Spice hit retail stores and on-premise estab-
1/2 part fresh sour mix lishments October 1, when the unique flavors of gingerbread, pumpkin and spice find
Shake ingredients with ice and strain into a marti- their place in foods, beverages and seasonal menu items from Seattle to Miami.
ni glass. Garnish with a cinnamon stick. Gingerbread and Pumpkin Spice will be available in both a 750ml and 1.0L size. The
suggested retail price will be $8.99-11.99 for the 750ml.
More exclusive seasonal recipes can be found at
www.hiramwalker.com
16 BIN 2 0 0 8 • I S S U E 8
POUR OF THE MONTH
Finest
CALL POUR OF THE MONTH
Petar’s Restaurant
A Lafayette Landmark
Petar’s Restaurant & Pub, located in the heart of Lafayette has been
serving the area since 1959. Its Ivy covered walls enclose a casu-
al atmosphere and fine dining. The friendly staff and management
offer genteel service and attention to detail.
Petar’s is open for lunch Monday through Saturday and din-
ner nightly. They have a complete menu of fine meats, pastas and
seafood and offer daily specials as well. Some of the specials
include London Broil, served with soup or salad on Sunday and
Mondays. On Tuesdays try the Osso Bucco; Wednesdays it’s
Lamb Shank or a complete Prime Rib dinner (or Fresh fish) for two,
including a bottle of wine for $45.00. Thursdays have their
famous Roast Turkey, Friday its Short Ribs and a Joe’s special on
Saturdays.
In the bar, they feature live music Tuesdays through Sunday.
Tuesday night Irish Songstress, Snead Healy performs modern
melodies and favorite Irish tunes. Dave Hosley rocks the
house at 9:00pm Wednesday-Saturday. Dave’s
Alex Ayala, Bar Manager
18 BIN 2 0 0 8 • I S S U E 8
NORTHERN
(DOUBLE) EXPOSURE
Canadian Club was your father’s drink…but
there’s more to the story than that!
While many spirits within categories such as vodka and rum are placing their bets on sleekness, modernity and
trendiness, brown spirits are more likely to bill themselves as time-honored luxury experiences that tap into traditions
that are as old as the brands themselves—or even older. Canadian Club, however, wants it both ways…as a spirit
that is simultaneously, unapologetically and fashionably old school, yet very much on the cutting edge of mixology
trends and consumer tastes.
Nothing captures this unique marketing attitude better than the current ad campaign that taps into the trendiness
of an earlier, groovier era. “Damn right your dad drank it!” boldly proclaims the brand’s current ad campaign. The
message is punctuated with a collage of groovy photos depicting young 60s and 70s hipsters partaking in leisurely pur-
suits and swinging parties, with a Canadian Club in one hand and a best bud or a hot babe in the other. Most of the
photos are of actual Canadian Club employees in their youth enjoying their favorite drink, lending more fun and
authenticity to the brand’s bold message.
“The “Damn Right” campaign was designed to put whisky, and more specifically Canadian Club, back into cocktails
– classic cocktails – like Whisky Sours, Manhattans and Sidecars,” points out Brian Stockard, Brand Manager for
20 BIN 2 0 0 7 • I S S U E 8
Canadian Club. “CC is one of the
most approachable whiskies on the
market. Its smooth and sophisti-
cated taste makes it a popular
choice for both men and women,
and female consumers make up
about a third of all CC con-
sumers.”
TASTES OF THE GOOD LIFE
CANADIAN CLUB® 6 YEAR-OLD
The Stuff of Legend
The original six year-old is a light Throughout Canadian Club’s Dan Tullio
and versatile blended whisky, blend- enduring run, the 6 and 12-year Brand Ambassador
ed before aging in white oak bar- old whiskies have managed to Canadian Club
rels, has a light, smooth taste that keep a current vibe through some
makes it ideal for use in cocktails. very successful and eye-catching the oldest Canadian whisky ever
ad campaigns and packaging, to be made,” he says. “It was
CANADIAN CLUB® RESERVE 10 especially after surviving the designed to celebrate generations
The darker golden-amber hued ten
challenges posed by Prohibition. of CC drinkers and the 150th
year-old whisky provides a more
However, there is a new treas- anniversary of the brand. With
substantial body and sweet
smoothness. ure on the horizon. Canadian only a few hundred cases available
Club is preparing for the launch for the entire United States,
CANADIAN CLUB® CLASSIC 12 of its most worldly and luxurious whisky connoisseurs will want to
The full yet smooth character of issue yet…Canadian Club 30 Year buy this exceptional whisky while
Canadian Club Classic 12’s qual- Old. The rare and sophisticated they can. Additionally, we are
ity is distinguished by hints of spice spirit, retailing at $150-199, was utilizing the Canadian Club 30
and vanilla and a darker amber specially conceived to reflect the Year Old to help increase the pre-
color, which makes it ideal for a high standards and commitment mium-ness of Canadian Club in
sipping whiskey or a component of
to quality that was a part of the California market. Our local
classic, masculine cocktails. It is
Hiram Walker’s original vision. team will be working hard to find
easy to see and taste why it won a
double-gold medal at the presti- According to Stockard, the the best ways to get this product
gious 2003 San Francisco World Canadian Club 30 Year Old will into Californians’ hands during
Spirits Competition. hold a special appeal to true con- the special holiday season.”
noisseurs who regularly enjoy
CANADIAN CLUB® SHERRY CASK other whiskies in the Canadian Marking Time
The limited production Canadian Club family and want to experi- Though the actual Canadian
Club Sherry Cask, which has a ence Canadian Club in its most “club house” in Walkerville,
warm, reddish gold amber hue, is elegant and refined form.
aged for at least eight years in Ontario, presents itself as an ele-
“We’re excited to introduce gant hybrid of historical society,
white oak barrels and then double
our Canadian Club 30 Year Old, decorative arts museum and
matured in sherry casks imported
from Jerez, Spain, which imparts
distinct undertones of Spanish
Sherry, making it primarily an ideal
sipping whiskey.
THE TASTEFUL MEMBERS OF THE “CLUB” RECIPES
CANADIAN CLUB® 30 YEAR-OLD THE MILLIONAIRE’S MANHATTAN THE RESERVE RUNNER
1 part Harvey’s Bristol Cream In a cocktail shaker filled with ice add:
The deep red amber hue of the
2 parts Canadian Club® Classic 12 1 part Canadian Club®
Special Edition Canadian Club 30
Reserve
year-old, along with its mellow, Fill a lowball glass
2 parts Ruby Red
earthy notes and hints of caramel with ice and add
Grapefruit juice
and spice, is meant to be enjoyed ingredients. Stir
and garnish with Top with tonic water and
the way one would appreciate and
maraschino cherry. a dash of grenadine.
sip a fine cognac. It is a complex, Shake and pour over ice
rich mix of aromas and flavors in a highball glass.
wrapped in a velvety body and con-
sistency. 22 BIN 2 0 0 8 • I S S U E 8
“CC is one of the most approachable whiskies on the market.
Its smooth and sophisticated taste makes it a popular choice
for both men and women, and female consumers make up
about a third of all CC consumers.”
Tish Harcus
Brand Ambassador
— Brian Stockard
Canadian Club Brand Manager for Canadian Club
country club—a visual representa- Walkers were pillars of the commu- ly married to others) tirelessly give
tion of its past and enduring suc- nity on both sides of the border, industry folk and consumers chap-
cess—there are strong reminders and counted Henry Ford and ter and verse about Canadian Club
Canadian Club has skillfully kept Thomas Edison among their closest through witty banter and smooth
up with the times, from the mixol- friends. Canadian Club traveled repartee that would even do
ogy area to the gift shop to the through history, as a favorite brand Hepburn and Tracy proud. The
activity swirling around the proper- of European royalty and Al show they put on at the house and
ty that was once the home of Capone, whose exploits revolved at conventions and trade shows
Hiram Walker, progeny that carried around what became his favorite around the globe almost makes one
the brand to the next level, and Canadian Whisky. It is—literal- forget key marketing messages are
later owners who strived to pre- ly—the stuff of legends. being repeated along with historical
serve Walker’s legacy. Brand Ambassadors Dan Tullio and production facts.
There are parts of Walkerville and Tish Harcus connect past to
where time stands still, even as the present, distributors to retailers and History in the “Making”
city of Windsor has since encom- retailers to consumers. Tullio, a 27- Whisky began with European roots
passed it, and the Detroit skyline is year industry veteran focused on and then took on a life of its own
just a mile away across a river and Canadian Club for the past 11 when efforts were made to repro-
a border. Hiram Walker and his years, in fact, is one of those hip- duce the spirit this side of the
sons and successors kept produc- sters appearing in the ads. Harcus, Atlantic. The Irish are credited for
tion flowing and morale high by who has been with “CC” for over creating whisky around 100 AD,
building a corporate culture long 20 years, takes pride in the fact that and then Scotch became popular
before it became a business buzz she has worked in every department in the 1400s as Scotland’s wine
term…and before Canada was on the 38-acre site. For the last vineyards were destroyed by a virus.
incorporated in 1867. The seven years, the duo (though happi- When Scottish and Irish settlers
26 BIN 2 0 0 8 • I S S U E 8
GOLDEN BAR CONSISTENCY AWARD – Wine
Pacific Wine & Spirits of California SPIRITS EXCELLENCE AWARD – Smirnoff
From left to right: Brad Vassar, Mark Merrion, Jim Kaley, Mel Dick, Harvey Pacific Wine & Spirits of California
Chaplin, Sandra LeDrew, Patrick Daul, Wayne Chaplin, Don Galli, From left to right: Phil Gervasi, James Kaley, Aki Toumasis, Don Galli,
Aki Toumasis, Ray Chadwick Patrick Daul, Larry Schwartz
SPIRITS EXCELLENCE AWARD – Jose Cuervo SPIRITS EXCELLENCE AWARD – Captain Morgan
Atlantic Wine and Spirits Pacific Wine and Spirits of California
From left to right: Greg Baird, Joe Lehane, E. Lloyd Sobel, Tom Notaro, Joe From left to right: Phil Gervasi, James Kaley, Aki Toumasis, Don Galli,
Devin, Charlie Merinoff, John Magliocco, Joe Davolio, Larry Schwartz Patrick Daul, Larry Schwartz
28 BIN 2 0 0 8 • I S S U E 8
PRODUCT PROFILE
CAN
MIGHTYPINE “It performed
amazingly
well; better
than we
WINE? shelving
system.”
– Jok Ang,
structural engineer
30 BIN 2 0 0 8 • I S S U E 8
32 BIN 2 0 0 8 • I S S U E 8
VODKA:
STILL THE CLEAR CHOICE
VODKA IS THE LIFEBLOOD OF THE SPIRITS WORLD
– AT EVERY PRICE POINT AND LEVEL OF QUALITY.
NO MATTER WHAT FORM IT TAKES, IT NEVER
GOES OUT OF STYLE.
40 BIN 2 0 0 8 • I S S U E 8
(produced by Blue Spike Beverages) hosted
launch promotions at high profile food fes-
tivals such as the Taste of Calgary and
(according to the spokespeople conducting
the tastings) the company is already setting
its sites on U.S. distributors, especially in
California.
In terms of what’s here, meanwhile,
consumers and industry people alike know
that when it comes to finding their favorite
vodka products, they will be navigating
through a complex global village of flavor,
function and versatility.
“The U.S. has been a tremendous
vodka market for generations,” reflects
Chester Brandes, President and CEO,
Imperial Brands, Inc. (which includes
Sobieski Vodka). “Premium vodkas have
always been part of the classic cocktail
repertoire. Since the beginning, vodka
cocktails like the Vodka Martini, Bloody
Mary, the Bull Shot, the Greyhound, the
Harvey Wallbanger and the Sea Breeze
have been cocktail cornerstones.”
Vodka’s continued relevance is such an Olson presents a good food analogy of
important issue in the industry that profes- this core bar belief. If one opened a steak- VODKA: CLEARLY
sional mixologists, even with their personal house and only served meat, he would be A CLASSIC
pet spirits, acknowledge that a good bar- doing himself a disservice. Most of the most Even if many brands in BIN’s listing have
tender, manager or owner needs several successful steakhouses, after all, include come to market within this decade, the
vodkas in his or her arsenal. Vodka is the seafood and vegetarian selections. Though a term “instant classic” could apply to many
key component to the cocktail culture that bar isn’t and shouldn’t be all things to all new brands either capitalizing on centuries-
is continuing to blossom and evolve around people, vodka is an essential part of the bar- old distillation techniques and selection
the world. It is therefore important for any- tender’s repertoire. However, what’s key is methods of ingredients, or selling trade and
body owning or connected with a bar to that you know what to do with it, how to consumers on the concept of merging the
distinguish one vodka from another, as talk about it and how to recommend differ- old and the new together in distillation to
every brand featured in our list has its own ent brands. create the ultimate product. More estab-
personality. Consequently, once palates Balance and texture are the keys to a lished brands in the Stoli family, mean-
detect the differences between potato, corn, recipe’s success, so instead of just looking while, are banking on the brand’s familiarity
rice or grape-based vodkas, it becomes clear for aromatic profiles, mixologists should and iconic status.
that when you change the vodka, you explore texture, body and proof. The bar- As one-in-three drinks consumed today
change the entire recipe. tenders’ job is ultimately to be service and are made with vodka, Gary Clayton,
“It is a pet peeve of mine, encountering entertainment providers for clients. Rather Director of the North American
the bartender who says, ‘everybody’s drink- than making what he or she may think is Stolichnaya Brand Organization, observes
ing vodka, therefore, I refuse to use it.’” the best cocktail, the real challenge is to sales for the category are growing at a high-
quips Steve Olson, a mixologist of national ensure customers will have the best experi- er rate than most other spirits, even during
recognition. “That’s the very reason why ence possible and will be happy and enjoy difficult economic times. “It is a spirit that
(bartenders) have to need to know how to themselves. created the cocktail culture and one that
make vodka cocktails… everybody is drink- Speaking of which, nothing verifies this continues to be an important component of
ing it. If you don’t put vodka on your bar fact better than a newly launched vodka- new drink development,” he muses. “From
because you want to make some kind of based and guarana-infused energy cooler, icons James Bond to Sex & the City, and
statement, the only statement you will be Mojo, aimed at young, trendy and female from ‘shaken not stirred’ to ‘Make mine a
making is that you are some kind of loser.” consumers. The Montreal-based product Cosmo,’ vodka will never go out of style.”
42 BIN 2 0 0 8 • I S S U E 8
CATEGORY FOCUS: VODKA
44 BIN 2 0 0 8 • I S S U E 8
the SKYY brand, and more importantly, lift-
ed sales for SKYY Core, as well as the new
SKYY Infusions.”
“While some companies may be cutting
back on their marketing because of the
slowing economy, we aren’t doing that,”
adds Carroll. “We will continue to spend on
advertising and P.O.s to support Ultimat
through this economy.”
Rob Bailey, CEO of Lotus Vodka, says
the reason why they are competitive in a
crowded field is simple: Consumers love
vodka. “There is no other spirit that pro-
vides such as wide range of different cock-
tail menu options,” he explains.
“Additionally, I think health conscious
drinkers are gravitating towards vodka
such as authenticity, heritage, and origin are Infused consumer products like “Pepsi because there is the perception that the
playing a much more critical role in brand MAX” and “Snickers Extreme” become lower level of congeners gives rise to a
choice. This is something that Stolichnaya more popular, so will the consumer base for lower likelihood of a hangover. Vodka also
has recognized and one that we are capital- V2,” he concludes. “We are not trying to has fewer calories than some of the brown
izing on.” be all things to all consumers. There are spirits, which has made it very popular with
Matt Carroll, Chief Marketing Officer at enough Vodka–Redbull fans to satisfy our image conscious drinkers.”
The Patrón Spirits Company, says in the case consumer base.” “Vodka is a spirit category that is being
of the ultra-premium level (which includes “In the last few years we have seen a re-defined,” says Marcus Bender, CEO and
their newly-acquired brand Ultimat), there proliferation of new vodkas from all over founder of Kai Vodka, who has noticed it is
are not that many brands competing. He is the world, and it has become increasingly becoming as diverse as the wine category,
confident Ultimat will nicely fill this more more difficult to promote our brand,” says encouraging consumers to educate themselves
upscale niche with “endless cocktail possibil- Ronné Bonder, President & Owner of the about the differences in each vodka and to
ities.” While mixologists continue to amaze The Hamptons Spirit Company. “We stay find the one that best suits their palette.
Carroll with astonishing cocktail recipes, as competitive by maintaining and expanding “There is strong consumer demand for old
he sees it, the only place to start is with the a strong niche as the best and most decorat- things made new again. Because of Kai’s
best vodka available. James W. Todd, Vice- ed brand in the marketplace with a com- many paradoxes (potato vs. rice, tasteless vs.
President of Sales Marsalle Company, mean- bined 4 Medal Awards by the San Francisco tasty, European vs. Asian), we have encoun-
while, credits the resurgence of the Martini World Spirits Competition.” tered many questions as to why we are con-
and its many permutations as the reason why All told, the proliferation of vodkas is sidered vodka. Though 90% of vodkas are
the market is still open for ultra and super- still very much a marketing challenge for all distilled from grain, most consumers still
premium vodkas. brands. Currently, a retailer has access to believe that vodka is made primarily from
“Forty years ago, there wasn’t even 1% more than 160 vodka brands in the United potatoes. Introducing a rice vodka requires
of the number of mixed drinks available at States. To keep its place in the vodka that we not only educate them about our
your local bar that there are today,” states world, SKYY relies on the clear identity in brand, but the category in general.”
James Goldstein, CEO of Wingard the market established many years ago that As Andrew Pfeffer, Sr. V. P. Western
Importers, which introduced V2 Vodka. helps to lift them above the fray. “We were Division for Ice Cap Enterprises SRL, has
“Just ask any bartender what spirit s/he uses able to build upon that identity in the past noticed, every new entry to the category
the most for mixed drinks. In particular to year through innovative marketing cam- seems to have an angle necessary to set
V2, other suppliers have seen the light with paigns such as our partnership with New them apart from the others. It might be
the potential of a premium spirit infused Line Cinema for Sex and the City, for organic, ancient water source, or environ-
with caffeine, taurine or similar exciting which SKYY served as the official spirits mentally-appropriate. In the case of their
addition.” Goldstein adds, Wingard aims to sponsor,” says Daniel. “We were able to Siku Glacier Ice Vodka, it is the only vodka
keep the quality high, marketing fun and take that sponsorship all the way through that utilizes a unique process called Ice-
advertising responsible when carving a the line with compelling off-premise and Blending, in which glacier ice is combined
niche for V2. “As the category of Energy on-premise programs that drove interest in with five-times distilled, ultra-premium
46 BIN 2 0 0 8 • I S S U E 8
think it’s also important to remember that
at the end of the day, while mixology is an
art, it also needs to be a sustainable busi-
ness. We all need to learn how to make
sophisticated drinks that don’t put a bar or
restaurant out of business.”
Hamptons Vodkas are clearly tailor
made for mixology. While the American
vodka’s original formula (100% Corn) is
differentiated by the fact that it is the first
product from the distillation process and is
colorless and odorless, it is the perfect neu-
tral platform for purist mixologists. The
dessert-y flavors (Banana, ChocoRaspberry
and CherryVanilla), meanwhile, enable
truly adventurous to raise the bar, so to
speak. “Word of mouth has been our great-
est tool to get the word out,” says Bonder.
“Once the public tastes our products they
become instant fans, especially as they can
be transformed into a myriad of wonderful
concoctions.”
The same can be said about Pearl Vodka,
according to director of marketing Todd
grain alcohol. CÎROC Vodka. “Consumers first began Nickodym, thanks to its own mixology-
“Distilled in The Netherlands, Siku mixing drinks as a result of the introduction friendly range of flavors. “From a line exten-
becomes liquid at -25°C, creating the only of Vodka into Western Society. Cocktail sion perspective, our strategy has been to not
vodka that transforms ice directly into culture ensued as vodka became more popu- simply introduce new flavors, but rather to
vodka without ever becoming water,” he lar, because it was the most versatile and introduce new flavors that are unique, on-
details. “This creates a superior product, mixable of the spirits. That hasn't changed trend, mixable and great-tasting,” he says.
and there is always room, even in a busy today, as vodka allows for unlimited creation “Pearl was first to market with a
market, for a superior product. Competing of exciting and delightful drinks, sure to Pomegranate flavored vodka, and we have
with the big corporate vodka companies please any palette. As time passes, mixolo- recently extended the Pearl family to include
and their deep advertising pockets will gists will always create alternatives to what a totally unique Plum flavored Vodka.”
always be a challenge for us. Also, the is popular, but at the end of the day, all Todd also notes without hesitation that
challenge of getting retailers/restaurants to everybody is looking for is a great tasting vodka can be enjoyed straight or mixed
add another item in an already saturated drink, and there is still no more versatile with practically anything, from juices to
market that presents its own set of hurdles. spirit as vodka, to deliver this experience.” water, appealing to young and old alike. He
Our response is working closely with retail- Consumers are not boxed into one- acknowledges that when Grey Goose burst
ers and restaurateurs to create custom pro- dimensional cocktails, but in fact exposed on the scene a few years ago, one would
gramming and marketing “Spy on Vegas” to an ever-increasing array of cocktails- hear the young adult crowd ordering every-
that works for them, all the while maintain- from the very dry to the very indulgent. thing from “Goose on the rocks,” to “Goose
ing our ultra-premium image.” Notes Clayton, “it has the ability to appeal and cranberry,” to a “Goose Martini up.”
to a broad audience unlike any other cate- However, for different reasons, his brands
THE KINGS OF gory in the industry.” (Snow Queen and Zubrowka Bison Grass
COCKTAIL CULTURE “It’s important to remember that while Vodka) are getting ready for their time in
The appeal of vodka is as clear as the spirit: sophisticated mixologists may not love the spotlight.
versatility, which enables it overall to be all vodka, drinkers still do,” Bailey says “Because Snow Queen (made with
things to all people. “Mixology is all about emphatically. “While it’s fun to make ever organic wheat, and Artesian spring water
creating great tasting drinks, and traces its more sophisticated cocktails using new craft from the Himalayas) mixes with anything,
routes back to the growth of vodka,” says gins and bourbons, it’s important that we this vodka is a great entry-level spirit,” says
Andrea Sengara, Senior Brand Manager of not forget what consumers actually want. I Todd. “Consumers of all ages can come up
48 BIN 2 0 0 8 • I S S U E 8
CATEGORY FOCUS: VODKA
with a drink they like mixed with vodka. has its own niche, and events are selected
SKYY Vodka’s Daniel, however, adds his- based on what type of vodka the presumed
toric context to the vodka phenomenon, as audience will be open to. Snow Queen has
it has not always been the cocktail culture’s sponsored events and parties at the Super
foundation of choice. In different eras, the Bowl, Kentucky Derby, Mariah Carey’s New
honor probably went to gin, rum or whiskey. Year's Eve bash and the Latin Grammys—
“Vodka didn’t truly gain its huge popu- all events that reach large and diverse audi-
“Look at the menus in larity until the 1980s, when the first premi- ences. Zubrowka sponsors more sophisticat-
restaurants all over the U.S. um and super-premium vodkas started show-
ing up in the market,” he says. “From there,
ed events such as New York Fashion Week
receptions, a Washington, DC-based party
and what do your see? the category simply exploded. Today, vodka
is the foundation for cocktail culture, in
for the Polish Cultural Center and various
black tie benefits around the country.
Vodka, vodka and more vodka- terms of the sheer volume of cocktails made Zubrowka has enlisted the likes of The Pro
with it. Vodka has a universal appeal that is Concept Marketing Group to help them
based cocktails. Classic-style truly timeless. In addition, with the appear- secure sponsorships with the most appropri-
ance of premium vodka products, such as ate events matched to the vodka.
cocktails have been built SKYY Vodka, it is being enjoyed more and “With these two brands, it’s all about
more straight up or on the rocks. It is the being a force,” says Todd. “Although right
around vodka, and vodka has versatility that makes vodka so dominant on now we are happy to find our niches, we
a global level.” have found both brands have a tremendous
replaced gin in the classics. “Look at the menus in restaurants all budget. We are positioning Zubrowka
over the U.S. and what do your see? Vodka, around the country to help gain support and
The ‘new’ classics are all vodka and more vodka-based cocktails,” the cult following it has in other markets
affirms Kevin Egan, V.P. Director of Sales around the world. Snow Queen, meanwhile,
vodka-based." and Marketing for Blue Ice Vodka. “Classic- is taking markets by storm!”
style cocktails have been built around Prairie Organic Vodka, like Zubrowka,
vodka, and vodka has replaced gin in the has gotten word to its targeted audience by
– Kevin Egan classics. The ‘new’ classics are all vodka- aligning with organizations that support
V.P. Director of Sales and Marketing based. With that in mind, our strategy for some of our brand attributes such as certi-
Blue Ice Vodka. 2008 is to increase the number of markets, fied organic, eco-friendly and giving back to
maintain pricing, increase advertising and the community. Examples of this include
promotional spend, extend the line with an the Fresh Taste Festival in Minneapolis and
organic product and continue creative sea- Slow Food Nation in San Francisco. In
sonal and holiday programs like our order to survive and sustain our new
Halloween Pumpkin Pie Martini program. ground, they have deliberately looked
Many of the new arrivals in the market have beyond traditional advertising.
a story to tell and they seem to find a niche Pinnacle Vodka has adopted a similar
if they are supported by the brand owners.” tactic—blending aggressiveness, focus and
outreach. “You’ve got to do what you can
AN “ELECTION YEAR” to be noticed in a crowded market,” men-
FOR VODKA tions Provandie. “Being a dominant force
Just as this year’s presidential candidates in the spirits industry is what we are striving
have put much of their resources to finding for. White Rock Distilleries is the “Vodka
followings, various vodka companies are King” - so we are a force to be reckoned
putting as much thought into steering their with. Aside from traditional advertising in
products toward event-based campaigns that consumer and limited trade books, we are
will attract key “voters” to elect their brand. also engaging in sponsorship opportunities,
Todd details the many events Zubrowka on-premise promotional parties, and ‘Wild
and Snow Queen have been involved with Posting’ (grass root guerilla marketing) in
are often high-profile happenings involving select urban markets.”
celebrities and charities. However, he is While Pinnacle’s advertising efforts are
very specific about the fact that each brand prolific, with a national and very targeted
50 BIN 2 0 0 8 • I S S U E 8
CATEGORY FOCUS: VODKA
campaign in leading publications such as ed their tour and as a result LDE travels the
"A successful vodka’s Sports Illustrated, Playboy, Time, Money, country in a Boru branded trailer and per-
Golf, Vibe, King and Rolling Stone, forms in front of a Boru-branded backdrop,”
marketing plan must Provandie says marketing and P.R. efforts affirms Glover. “We also coordinate on-
play upon “the affordable luxury vodka’s” premise promotions everywhere they play,
effectively reflect the desires, distinctions—that it is an imported French where legal. With over 200 gigs this year,
vodka, offers a variety of unusual signature that’s a lot of promotions. During this fall’s
motivations, values, and con- flavors (Kiwi Strawberry, Espresso XX, contest, we’ll hold 500 bar band on-premise
sumption habits of these Butterscotch, Root Beer, and the newly pop-
ular Grape and Cherry), incorporates beauti-
promotions across the country.”
In the case of Ultimat Vodka, Carroll
changing consumer dynamics ful packaging and affordable pricing, and on
the trade end, boasts a motivated team of
says that the company decided on a slow
build strategy, launching it in select markets
in a way that stands above the distributors and a distribution network (including California) and using many of
focused on the brand’s long term success. the same approaches that worked for Patron
clutter. For many years, price p.i.n.k. vodka, meanwhile, was chosen Tequila. The message is clear and entic-
by Donna Karan to be the official cocktail ing—“Live Ultimately”—and based on the
was a driving force. Though it of the launch of her new fragrance principle that in life, when one seeks out
“Delicious Night.” Mandel notes the recipe the ultimate experience, it changes his or
continues to be important, for the ‘Delicious Night Blackberry Martini’ her frame of reference, and no other experi-
featuring p.i.n.k., is being co-promoted on ence will compare. “We’re supporting the
values such as authenticity, a national basis both on-and off-premise. launch with on- and off- premise point of
SKYY Vodka, engaged in a campaign that sale materials beyond most new brand
heritage, and origin are play- tapped right into some of popular culture’s launches, and have allocated for each mar-
current embrace of the cocktail—the spon- ket a separate events budget to build brand
ing a much more critical role sorship of Sex and the City. The company awareness in the right places,” says Carroll.
created a 360-degree marketing campaign “We’re taking advantage of every opportu-
in brand choice...” that included custom co-branded advertis- nity to make this one of the most successful
ing, a national sweepstakes, premiere parties brand launches in the industry.
and on-premise promotions. In another, In the Stoli camp, meanwhile, they have
– Gary Clayton
they tapped into nostalgia and nature. stirred things up with a new advertising
Director of the North American
“One of the coolest aspects of the pro- campaign, “Choose Authenticity,” which
Stolichnaya Brand Organization
gram was our signature cocktails which were Clayton says is the foundation of their com-
themed after each of the characters in the munication strategy, with iconography and
movie,” describes Daniel. “These were sold typography inspired by Russian
into thousands of accounts across the coun- Constructivist art, a witty and engaging tone
try and let consumers experience the glam- and attitude that reinforces Stolichnaya’s
orous cocktail culture of the movie. For the authenticity and pioneering spirit.
launch of our new SKYY Infusions this past “In 2007, we launched Stoli Hotel,
spring, we rolled out our custom 25 foot which has traveled to such major metro
SKYY Infusions Airstream RV that toured markets as New York, Chicago, Los Angeles
the country, introducing people to the inno- and Miami,” affirms Clayton. It is a travel-
vative true-to-fruit taste of our newest prod- ing pop-up entertainment venue, which was
uct. Off-premise, where we couldn’t sample inspired by the historic Moskova Hotel in
the product, we utilized flavor strips that Moscow. With a combined attendance of
gave consumers a real taste of SKYY over 50,000 consumers, it has garnered
Infusions, which generated great sales in incredible press, major awards, but most
those accounts.” importantly delivered a unique brand expe-
Boru’s primary campaign, targeted to rience.”
men 21-30, meanwhile is Defend the Bar Then there are brands like Lotus, where
Band. This indie-music based, viral market- less can be more when getting the word out
ing program speaks directly to this target on a new product, according to Bailey. “We
audience. Last year’s winner, Lloyd Dobler don’t think about the future too much,” he
Effect, in turn, emerged a wonderful brand states. “We just want to make an amazing
ambassador. “Boru has financially support- product that consumers feel passionate
52 BIN 2 0 0 8 • I S S U E 8
CATEGORY FOCUS: VODKA
about. Our goal is to grow the brand while through the support of local causes and
KELLY Y GONZALEZ being true to our ideals and what we are activities, and doing our part to make a dif-
BLOODY MARY MIX doing. If we just focus on doing good, ference. We have aligned with and champi-
Internationally kown for its outstanding everything else will take care of itself. on numerous charities across the country
Bloody Mary mix, Kelly y Gonzalez While not necessarily innovative, we also that our close to our hearts and reflect our
do extensive work with charities. They core values as a family company.”
begin providing a high quality line
have provided a great opportunity for us to “Consumers are looking for new experi-
of cocktail mixes to businesses in
reach a cool, tastemaker crowd while also ences, and many of the “mega” brands like
the Las Vegas and surrounding
giving back.” Grey Goose have…become rather main-
Rocky Mountain states in 1973. In Despite Bailey’s modesty, Lotus has stream,” observes Elwyn Gladstone, VP,
response to requests from several made serious headway via internet social Marketing for Proximo Spirits, whose port-
famous hotels and restaurants want- networks in reaching younger consumers. folio includes the Three Olives family of
ing a superior Bloody Mary mix They recently completed a campaign with a vodkas. “Our goal has been to innovate
that would be consistently excellent company called AdNectar, where we with advertising, promotions and new prod-
with each pour, our founder, Chuck enabled fans of Lotus to give “virtual” cock- ucts that make Three Olives the most inno-
Kelly, soon developed what is now tails to each other. In a few short weeks we vative, fun and exciting brand of super-pre-
the company’s signature mix, Kelly y had more than 250,000 people in more than mium vodka on the market. The opportuni-
Gonzalez Bloody Mary mix. Made from a 15 countries that gave each other virtual ties are endless, and I personally feel the
cocktails like the Lotus mojito. vodka category will come to an end only
very special recipe, they use only top quality
Sengara feels that CÎROC will land on when we run out of flavors in the world.”
herbs, spices, tomato paste and whole pep-
top of the category by focusing its excep- V2 importer Goldstein, likewise,
pers to produce their unique Bloody Mary
tional “liquid credentials” and continuing emphasizes innovation – this brand strives
mix. It is packaged “hot” off the bottling line their efforts with Sean “Diddy” Combs, to push the envelope with their marketing
in glass bottles to preserve the fresh taste of the whom the company feels “optimizes the art and focuses on content toward and audi-
ingredients. of celebration.” While the economic situa- ence that will embrace it.
In addition to delivering an unbeatable tion is a factor, the industry allows con- “If it’s shocking and memorable, it’s
Bloody Mary every time, many customers use sumers an “affordable” luxury. The dream worthwhile,” Goldstein states. “Once peo-
the Bloody Mary mix as the main ingredient in vacation and vehicle may be on hold, but ple are aware of V2’s attributes, we have
several of their menu items, including soups, consumers can still continue to celebrate devout consumers. We don’t want to do
chili’s and Italian dishes. “We have one cus- life with CÎROC. what all the other brands are doing. As
tomer in Milwaukee that goes through cases “By ensuring consumers a luxury experi- there are dozens of citrus vodkas on the
ence, both when they are out for the market, we launched the first Mint Vodka
of our mix, without ever serving a drink,”
evening or enjoying CÎROC at home, we this year, made with real fresh mint leaves.
remarks Mike Kelly, President and CEO of
will continue to add value to all of their If you haven’t tried our Naughty Girl Scout
Kelly y Gonzalez.
experiences,” Sengara says. “As we are re- with V2 mint and Godiva Chocolate
A family owned business now launching this brand, it is still important to liqueur, you’re in for a treat! The V2 signa-
well into their second genera- drive trial where and when possible.” ture custom ‘39 Zephyr is another tool for
tion, Kelly y Gonzalez’s market- raising awareness for the brand. We also
ing strategy has always been to LIQUID ASSETS embrace many of the marketing opportuni-
focus primarily on on-premise For some vodkas, less is more when it comes ties that other premium spirits avoid such as
accounts, as well as smaller off to building brand and image. Companies extreme sports. We would much rather lead
premise accounts serving cock- like Stockholm Krystal, for example, put than follow. ”
tails. This strategy has resulted in emphasis on their name and reputation as a According to Marsalle Imports’ Todd,
superior brand recognition. “We good company, even though selling cases is Zubrowka takes a grass roots approach, com-
as important a goal. bined with promotions that have fun with
have a strong following of cus-
“Stockholm Krystal is a family-owned the zu (zoo) theme. For example, they have
tomers whose clients will accept
and operated company,” stresses marketing done parties where each bar is themed
nothing but Kelly y Gonzalez, a fact
director Erika Ingbrightsen. “As such, we’re around different zoo animals with drinks
we are very proud of,” explains that coincide. Efforts like this, have enabled
more focused on demonstrating our com-
Mike Kelly. Zubrowka to emerge the #2 imported vodka
mitment to providing the highest quality
For more information, email handcrafted vodka in the market. As a in Japan, #3 in France and a must for many
kellyygonzalez@hotmail.com. family company, we further define ourselves of the best back-bars in London. While the
54 BIN 2 0 0 8 • I S S U E 8
brand has been marketed by Pernod-Ricard
in Europe, the re-positioning of Zubrowka
has opened the eyes of American drinkers
to the joys of Bison Grass Vodka. In con-
trast, Carroll says a brand can have it both
ways, with a marketing goal for Ultimat to
achieve high volumes in the ultra-premium
sub category and still enjoy the niche of
boutique brands.
No matter what the focus, Mandell
argues that the consumer, bartender, server
and retailers are key aspects of marketing Top selling vodkas at East L.A. Wholesale Beverages
p.i.n.k. “The customer must understand the
unique properties of the product that will
enable them to have their favorite cocktail what makes us special to the consumer, Premium Vodka in Poland,” and “The #1
while experiencing the benefits of caffeine which we simply won’t do,” he declares. Premium Vodka in Poland. Finally, an
and guarana,” he says. “We’ve developed For other vodkas, combining messages Endorsement that Matters.”
award-winning marketing and promotions of value and quality in just the right way to While image (or lack thereof, when
materials that enable us to convey the most opens door for new markets. Recently, appropriate) and versatility play leading roles
important aspects of the brand that res- Sobieski Vodka announced that it broke all in the showcases vodka producers and
onate with the consumer.” records for a newly-introduced spirit to importers put on to win fans, drawing atten-
Though SKYY Vodka is currently the attain its 200,000-case sales milestone. tion to what’s inside a bottle is just as critical.
fourth largest brand in the market, and the “Critics, spirits industry players and now Ingbrightsen notes Stockholm Krystal
number-one premium domestic vodka in the consumers are responding to Sobieski Vodka is produced by a family-owned opera-
U.S., Daniel explains that good marketing is Vodka’s proposition of excellent quality, tion, and is the result of old-world crafts-
a balancing act of expanding their volumes crisp clean taste and affordable price,” says manship enhanced by the refinements of
without sacrificing the core values of what Brandes. “Our message is “Truth in modern technology. “The original family
the brand was built around: quality, innova- Vodka.” We educate consumers that they recipe is over 100 years old,” she says. “It is
tion and style. “If we lose sight of any one don’t have to pay a king’s ransom for a pre- made in Sweden from the finest premium
of those key attributes, then we will lose mium vodka. We encourage them to focus wheat, and distilled three times through
on what’s in the bottle--namely authentici- high-rise column stills through our unique
ty, tradition, heritage and taste--rather than "center-cut" distilling process. We describe
be distracted by flashy marketing cam- the "spirit" in its purest form as "crystalline
paigns and pricey packaging. Our approach essence." The essence is then filtered
is distinctly anti-hype.” twice through charcoal, which "polishes"
the product and imbues it with the clarity
FROM THE FIELDS TO THE and sparkle seen in the bottle. Finally, the
BOTTLE TO TOP SHELF product is married with the pristine waters
Sobieski Vodka also plays with other mes- for which the region in Sweden is so
sages that convey that what’s inside the renowned.”
bottle is what matters most. Their trade While it is important for Gladstone
advertising and billboards targeting con- that Three Olives emerges as dominant
sumers are generating interest and excite- force in the market, he feels how they do it
ment with provocative taglines that exem- is even more important. They keep a pulse
plify the “Truth in Vodka” campaign. They on the constantly changing consumer and
include: “We Designed a Bottle to Suit the vodka market, and build the brand from the
Spirit Inside, “Notice the Lack of La-Di- inside out by listening and growing with our
Da.” “Sex May Sell, But It Has Nothing to loyal consumer while recruiting new ones
Do with the Making of Great Vodka,” on the way.
“Who Needs Superdelegates? We’ve Got a Says Gladstone, “We try not to think
Whole Country Behind Us. The #1 like other vodkas, because if you think like
56 BIN 2 0 0 8 • I S S U E 8
CATEGORY FOCUS: VODKA
everybody else, you look like everybody the product’s uniqueness. Their primary
else, and consumers don’t need more of the objective is to allow consumers to “taste
same. We do flavors that no one would the pleasure” in Kai Vodka and Kai Lychee
think of (Root Beer, Tomato, Triple Vodka. They have been part of many food
Espresso), and focus on quality that no one and wine events and have sent representa-
can come close to. Consumers tell us that tives to participate in many on/off-premise
BLOODY WONDERFUL! we are the only flavored vodka whose fla- tasting events. For top echelon consumers,
Hathaway’s Mixers is not just a line of mix- vor tastes like it says on the bottle. Finally, they are collaborating with a travel compa-
ers, but a fully-rounded concept designed we have an upcoming promotional and ny to begin a travel package to Vietnam in
especially for the carefully selected advertising campaign that is going to set us order to allow connoisseurs to experience
accounts…and the accounts’ particularly apart from the competition as a truly the country of Kai’s origins.
selective customers. Though Appleton Lane unique, premium and differentiated brand.” Other brands single out proprietary ingre-
has created special gourmet Bloody Mary Among p.i.n.k’s many strategies, dients. Kai Vodka is handcrafted in small
mixes for more than a decade, the product Mandell says they are capitalizing on its batches with Yellow-Blossom Rice, which
line, with its flavor profiles and unique mar- unique ingredients with an exciting mar- imparts a distinct sweetness to the finish.
keting approaches have only been around keting tool called the “p.i.n.k. Energy Sonnema vodkaHERB offers their prod-
for a year. Growth is intended to be steady Cocktail Menu,” a separate cocktail menu uct up as one that gives vodka a modern
and carefully planned. or feature on an existing cocktail menu twist with a historic recipe of high quality
The Original, a superb base for the tra- that highlights the functional aspects of herbs and gin, imparting an aromatic hint
ditional Bloody Mary, is made with fresh p.i.n.k. vodka. “This innovative cocktail of rosemary, thyme, juniper, licorice and
grated Horseradish, while their Robust menu not only educates consumers on mul- wormwood. CÎROC Vodka capitalizes on
Bloody Mary mix features the distinctive kick tiple applications of p.i.n.k. vodka, but also the smooth, lightly sweet and supple body
of fresh pureed Jalapenos. According to generates additional revenue beyond the imparted by the natural character of grapes,
Bright, the brand leaders of competing traditional cocktail menu,” says Mandell. even though its flavor is citrus-y and crisp.
Bloody Mary mixes make their products “Because no other product can create cock- With Pearl, Nickodym says teams sup-
with aseptic methods, which in turn, makes tails infused with flavorless caffeine and porting the campaign determine its success
it very difficult for the full flavor of the toma- guarana, the account can sell each drink at or failure. “While we have enjoyed success
toes and other components of a Bloody a higher price.” with Pearl Vodka off-premise, we under-
Mary to come through in a way that’s true In the perspective of Gary Clayton, stand that super-premium brands are built
to the classic. Only a hands-on approach, consumers are increasingly looking towards on-premise,” he says. “We have expanded
the Hathaway way, can address this prob- brands with “heritage, authenticity and a our sales organization to include on-premise
lem satisfactorily. strong product story.” In this case, it’s the sales specialists focusing the majority of
Elevating the Bloody Mary mix catego- fact that Stolichnaya’s heritage goes back their efforts on promoting Pearl Vodka in
ry to a new level is Hathaway’s Energy- over 100 years and is truly the authentic the leading vodka bars, clubs and restau-
based Bloody Mary, incorporating B-12, Russian vodka. “We were the first premi- rants in major metro markets across the
Taurine, Inositel, Caffeine, Niacin and um-imported vodka in the U.S. and the first U.S. Our on-premise representatives are
Glucuronolactone. The impetus to reinvent to introduce flavored vodkas into the mar- focusing their efforts on gaining targeted
this continuously rolling wheel, according to ket, which launched the ‘flavored vodka new distribution, securing signature Pearl
Bright, came from a close examination of revolution.’ We continue to introduce new drink features/menus and hosting unique
what the energy drink market did over the flavors into the market with our most recent promotional nights.”
last five years, and noticing its annual introduction, Blakberi. Stolichnaya Elit was While everybody has different opinions
growth at double digit rates among the 21- the first ultra-premium vodka to hit the about vodka, one thing we all can agree
35 year-old market segment. However, as market in 2004. Stolichnaya is the only upon is that there are a spellbinding num-
Bright and his colleagues were keenly vodka that has the depth of history and lin- ber of products on the market, and just as
aware energy drinks had a very specific eage. The cornerstone of our strategy is to many ways to promote them. The fact that
taste, they approached their chemists and build upon our pioneering spirit and consumers worldwide are continuing to
asked them if they could create an energy authentic Russian heritage.” embrace the category’s new arrivals and old
“mix” that appealed to the youth demo- Kai Vodka, meanwhile, has the advan- standbys is testament to the fact vodka still
graphic but end up with a flavor profile free tage of offering consumers the “first Ultra matters…and matters to the extent that
from the strong medicinal flavors often iden- Premium Rice Vodka” and the first “Lychee retailers and restaurateurs alike need to
tified with energy drinks. Flavored Vodka.” Therefore, Bender says educate themselves so they can continue to
For more information, please visit hath- the Kai team shoots for accounts embracing meet the demand.
awaysmixers.com.
58 BIN 2 0 0 8 • I S S U E 8
2008 HOLIDAY VODKA BUYERS GUIDE
2 267 OLIVE AND PEARL ONION VODKA 7 ABSOLUT VODKA 100 PRF BLACK
Country USA Country Sweden
Base Ingredient American Grain Base Ingredient Wheat
Tasting Notes Ultra premium five times Tasting Notes Distilled from grain-grown
distilled American grain vodka infused with in the rich fields of S. Sweden. It has been
olives and pearl onions puts a touch of produced at the famous old distilleries by
sophistication on a classic. Ahus in accordance with more than 400 yrs
Flavors: Olive & Pearl Onion|Cranberry of Swedish tradition. Smooth beyond
Lemon|Orange compare.