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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29 StateWays ■ www.stateways.com ■ January/February 2015 I rish whiskey is still high-proof strong after so many years of double-digit growth. More than riding on the coattails of American's infatuation with whiskey, Irish is enlarging the demographic, bringing new consumers into the fold with its easy drinkability and mixability and now intriguing geeks with more nuanced and complex expressions of the Irish spirit. With sales and acquisitions, premiumization, building and expanding distilleries and setting up educational centers, the category is evolving, maturing and planning for long term. "Irish whiskey is selling so crazy over the past couple of months that we are out of some labels — can't get them anymore," says Edward Mulvihill, Director of Sales and Marketing at Peco's Liquors in Wilmington, DE. He cites Jameson 12- and 18-Year-Old as examples of high con- sumer demand, as well as the highly allocated Jameson Black Barrel. "That's selling like crazy," he says. His cus- tomers are also excited about the return of the Paddy and Powers brands to the Delaware market. "Whiskey is contributing almost all of the value growth of the total spirits category, and Irish is also showing the biggest growth rate within the whiskey category," points out Sona Bajaria, Irish Whiskey Brand Director at Pernod Ricard. The company's Irish portfolio includes category leader Jameson, as well as Redbreast, Powers, Midleton and Paddy. New to the U.S. market are two single pot still expressions — Redbreast 21-Year-Old, the oldest variant from this label, joining Redbreast 12- and 15-year, as well as the rare, small-batch Green Spot. The company is also dis- tributing Jameson's Select Reserve Black Barrel nationally. "Irish is moving very well in our store," says Mark Fet- ter, General Manager at Argonaut Wine & Liquor in Den- ver. Although Jameson is still the number-one seller, the high-end whiskeys such as Redbreast and Midleton are also moving well. "We don't promote Irish whiskey much, but we still sell the heck out it." From the newsroom M ajor news broke in the category in late 2014, when Diageo reached an agreement to sell Bushmills to Jose Cuervo Overseas, with a net payment of $408 million to Diageo. The deal is part of a swap with Casa Cuervo, giving Diageo full global ownership and control of Tequila Don Julio, — including early termination of Cuervo's production and distribution agreement of vodka brand Smirnoff in Mexico. Bushmills is the number-two player in the U.S. market, with 8000,000 cases sold in the year ending June 2014 and net sales of £75 million. What the ramifi cations of the change in ownership will be and how it will impact the Irish whiskey category remains to be seen. After years of tumultuous growth, the Irish whiskey category is maturing and settling in. Aft f t lt th Cask Conditioned By Thomas Henry Strenk

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