Stateways

StateWays Jan-Feb 2015

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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StateWays ■ www.stateways.com ■ January/February 2015 20 C anadian whisky may not get as much respect as its Irish, Scottish and American counterparts these days, but if whisky-buying was "American Idol," Canadian would defi nitely be competing in the fi nals. After all, the entire category moved more than 13 mil- lion cases in the U.S. last year, second only to Bourbon and Tennessee whiskeys among brown spirits. The Canadian category overall posted steady if modest growth last year, up 1.3 percent overall, with leading brands Crown Royal (up 2.6 percent to nearly 4.3 million cases) and Black Vel- vet (up 3.6 percent to more than 2 million cases) leading the way, according to Beverage Information & Insights Group data. The results among the other eight top-ten brands was mixed — Canadian Club, Windsor Supreme, Rich & Rare and Lord Calvert were up, while Canadian Mist, Seagram's V.O. and Canadian LTD lost ground. And while the category has a reputation for lower prices when compared to the other whiskies, the major- ity of the growth last year came from the super-premium pricing tier, according to fi gures from the Distilled Spirits Council of the U.S. Embracing fl avors and brand extensions F or years, the Canadian category has been a steady if uninspired participant in the reawakening of interest in whisky. With a tradition that made "smooth," "mellow" and "easy" keywords for the style of spirit most often as- sociated with whiskies from the North, Canadian wasn't perfectly aligned with the contemporary taste for more robust or expressive fl avor profi les found in American, Irish and Scottish varieties. But recent signs of interest, especially by cocktail con- noisseurs for the high rye expressions and by new consum- ers for fl avored expressions, have encouraged Canadian makers to pay more attention to contemporary tastes. "We all know brown spirits are seeing a big resurgence and we're seeing that as well in Canadian," says Vicki Arcos, brand director for Black Velvet at Constellation. "Bourbon is getting all the attention but we're defi nitely seeing a lot of traction as well." Canadian's reputation has always rested on its smooth and accessible qualities, she notes, and as a category has been reliant on brand-loyal male consumers. But now that fl avors are such a huge a huge trend in brown spirits, brands are fi nding success recruiting users from beer, cider and vodka – as well as making inroads among female consumers. "That older male demographic is tried and true. How- ever, there has been an increase of older women and Asian consumers purchasing from our Canadian section," says Erin Robertie, liquor department manager at the 35,000 square foot Hazel's Beverage World in Boulder, Colo- rado." Older women who were die-hard Bourbon drink- ers for years are making the switch to a mellower dram, without sacrifi cing the fl avor." "There are a number of trends driving awareness, trial and growth in the North American space and among Canadian Whisky," says Yvonne Briese, VP of market- ing, whiskey for Diageo. "The emerging popularity of fl avored whisky was part of the inspiration that led to the innovation of Crown Royal Regal Apple. We feel this trend is a great way for drinkers, both men and women alike, to continue expanding their interests for not only whiskies, but fl avored whiskies. She adds, "The growing popularity of cocktails among consumers and the resurgence of classics such as the Manhattan and Old-Fashioned provide consumers with more options and reasons to responsibly enjoy whiskies, including our Crown Royal Canadian Whisky portfolio." Says Claire Richards, director of world whiskies for Beam Suntory (supplier of Canadian Club and Windsor Supreme), "This is certainly an exciting time for spirits, especially brown spirits. Brands are experimenting more to create new fl avor experiences, and consumers are eager to explore dif- ferent variants. Canadian whisky has a unique fl avor profi le due to its rye content, which is attracting a lot of interest from bartenders and consumers as they explore the whisky category. We anticipate that the Canadian whisky category and high-quality, approachable products like Canadian Club will continue to grow." It's a sentiment shared by many other Canadian whisky The whiskies from the north are poised for up-scaling. BY JACK ROBERTIELLO CA NADA CUSP on the

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