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 That's evident in the retail arena. "Beyond question there's a greater appetite for product knowledge on behalf of our shoppers," says Tom Tesauro, partner at the three-store Yankee Spirits retail chain in Massachusetts. "Consumers today have a better under- standing of what makes a bourbon, what makes a rye, what makes a Tennessee whiskey." Prominent master distillers have achieved star sta- tus, much like craft brewers and celeb chefs. Aficionados vie to acquire their experiments with mash bills, barrel treatments and other variables. Limited-edition products are often one-of-a-kind and highly allocated. Rarity is a factor in the supply and demand equation. "The thing to keep in mind when you see the huge growth rate in the really high-end tiers is that the vol- umes are pretty small," cautions Briese at Diageo. The bulk of business is still done in the premium and above-premium space, she says. "But the people who are really engaged with whiskey tend to have a desire to experience new things, try new products." The Open Spigot T Though some purists may scoff, flavored whiskeys are connecting with new consumers as approachable and mixable. The category is playing a card that vodka and to some extent rum have found so suc- cessful. The whiskey variants however follow the brown spirit's natural taste profiles with com- patible flavors like honey, cherry and vanilla. Early entrants like Red Stag, Jeremiah Weed and Phillips Union are joined by new contenders like Jack Daniel's Tennessee Honey. "The number of Whiskeys infused with flavors like honey, cherry and others are capturing new customers. introductions of flavored whiskeys over the past two years has been staggering given that bourbon is a category that historically has been steeped in tradition," notes Rob Mason, director of bourbons for Beam Global. The company seized upon the flavor opportu- nity a few years ago with its Red Stag by Jim Beam, bourbon infused with black cherry. "One of the benefits of these flavored whiskeys," continues Mason, "is that a lot of the volume is incre- mental to the bourbon cate- Red Stag by Jim Beam he list of new products and line extensions flow- ing from whiskey producers is considerable. Virtually every maker boasts an introduction or two or three. "While we put a lot of focus behind growing existing A Taste of Honey, Cherry and … gory. They are not just pulling people who are already drinking bourbon, but a wide range of individuals who'd never considered whiskey before, but because the flavor profile is more approachable, sweeter, they are coming into the fran- chise." Company research indicates that half of all Red Stag consumers are women; a skew much dif- ferent from the largely male bourbon drinker. Significantly, Jack Daniel's entered the fla- vor arena this year with the launch of Jack Daniel's Tennessee Honey. Wild Turkey, too, has its entrant in the world of flavor with Wild Turkey's American Honey. "I think the success of American Honey demonstrates that the whiskey category is ripe for inno- vations, as long as they are true to the character of the base whiskey product," exclaims Umberto Luchini, group brand director of American whiskies for Skyy Spirits. "We have been deluged with so many honey and cherry flavored whiskeys recently," exclaims Tom Tesauro, a partner in Yankee Spirits retail stores. "It's not tremendous, but it's a consistent volume. And the buyer is a StateWays s www.stateways.com s September/October 2011 different customer than the bourbon drinker." "We've been having a lot of success with Sazerac's Fireball Cinnamon Whiskey," says Patti Robinson, owner of Heritage Wine & Liquors. The store carries a number of infused whiskeys in cherry, honey and vanilla flavors. "They are popular with younger consumers," she notes. "Flavored whiskeys have been a strong subsegment, with a number of entries over the past three or four years," points out Larry Kass, director of corporate communi- cations for Heaven Hill Distilleries. The compa- ny launched Evan Williams Honey Reserve about two years ago, followed by Evan Williams Cherry Reserve. "Flavored spirits—vodka and rum—are so popular. There is an appeal to those who are Jack Daniel's Tennessee Honey Liqueur not dyed-in-the-wool whiskey drinkers and to the female demographic. They broaden the entry- way into the whiskey cat- egory," says Kass. Evan Williams Honey Reserve Kentucky Liqueur 35