StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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5 5 Jack Daniel's recently launched a new taller, slimmer bottle with square shoul- ders for its iconic Tennessee Whiskey. growing volume by 16.2%. In terms of revenue, the entire American Straight Whiskey category gained 4.2% in 2010 (DISCUS). "We're seeing a tremendous amount of upside in the bourbon category, par- ticularly in the last year or so. The overall category continues to grow from both a volume sales and a dollar perspective," concurs Rob Mason, director of bourbons for Beam Global, whose extensive whiskey brands include Jim Beam, Maker's Mark, Knob Creek and Basil Hayden's. Those positive numbers are making a defi- nite impact on retail shelves. "My whiskey section is rocking," exclaims Patti Robinson, owner of Heritage Wine & Liquor in Centennial, CO. "I've been giving American whiskeys a lot more shelf space over the past year." Growth is not just measured in dollars. The Wild Turkey brand just unveiled a $50 million distillery expansion. The new 134,000 sq. ft. facility is capable of producing up to 11 million proof gallons of liquid annually. "Bourbon has been on a roll for several years and that continued in 2010. The category saw good momentum even in a rather shaky gener- al economy," points out Umberto Luchini, group brand director for American whiskies at Skyy Spirits, which purchased the Wild Turkey brand in 2009. Another demonstration of whiskey's resurgence is the influx of pilgrims treading the Kentucky Bourbon Trail. A record 9,000 aficionados toured the entire whiskey trail in 2010, and 400,000 people visited at least one bourbon distillery last year. Roll Out The Barrel T 34 he question is, what got the barrel rolling? Industry professionals point to a number of fac- tors driving interest and growth in the category. One positive factor is that American whiskey is a great value relative to other categories. "I consider superpremium bourbons to be a good value proposition," declares Mason at Beam Global. The high end for some spirits categories can cost up to hundreds of dollars a bottle, whereas superpremium bourbons generally range $30-$50. "That's much more approachable." "Three factors have really helped the category and our brand," explains Laura Petry brand manager for Woodford Reserve, a bourbon in Brown-Forman's portfolio that also includes Jack Daniels Tennessee Whiskey, Old Forester and Early Times. One factor, says Petry, is the cocktail renaissance sweeping the country; many classics feature whiskey. Cocktail culture generally appeals to a younger demographic and to more female consumers, she concludes. "There are a lot of trends breathing new life into the whiskey category," echoes Luchini. "From a cocktail perspective, we're seeing a lot of creative and inspiring bourbon- and whiskey-based cocktails that go far beyond the usual whiskey and cola. All signs point to the fact that whiskey is now seen as a much more versatile cocktail base and consumers love it!" Jim Beam Devil's Cut is the latest entry to the Jim Beam Bourbon portfolio. This expression uses a proprietary process to reclaim the whiskey that has been absorbed into the bar- rel, resulting in a unique taste. "Women are increasingly interested in whiskey," adds Luchini. "They're much more vocal now and really want to understand and learn as much as they can about whiskey." To encourage that interest, Skyy formed a new consumer group called "Women and Whiskies," promoting it via Facebook. Generating a Buzz Tales of the Cocktail and the Manhattan Cocktail Classic, and the growing number of whiskey tastings and competi- tions, like the International Wine and Spirit Competition and WhiskyFest. That excitement is augmented by the plethora of blogs and online forums devoted to whiskey, reviewing new releases, detailing projects by master dis- tillers and creating cache for limited editions. S "There's a lot of buzz around the category," says Kass at Heaven Hill. "It's an amazing time right now if you look at the kind of consumer we have, who's very interested in American whiskeys, highly educated and really into the provenance of the brands." Maker's 46, the first line to the renowned Maker's Mark, has seen success in its first year on the market. StateWays s www.stateways.com s September/October 2011 ome would argue that much of the catego- ry's newfound momentum comes from highly publicized educational seminars, like