Beverage Dynamics

Beverage Dynamics Jan-Feb 2012

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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a good way for the brand to communicate with customers— and for customers to communi- cate with the company. "It's a two-way conversation. We learn a lot from our consumers." "For O'Mara's Irish Cream, we've seen some really great growth," commented Josh Hafer, corporate communications man- ager at Heaven Hill Distilleries. The O'Mara's brand is the fifth largest seller in the Irish cream category, says Hafer, at a bit below 125,000 cases. The Future V The ever-popular Baileys Original Irish Cream and its flavor extensions contin- ued to grow its business in the most recent fiscal year, the company said. "Over the last five years or so, O'Mara's has seen exceptional growth, we've grown high single digits to almost double digits and this year we grew at a 20% clip." Hafer attributes much of that growth to customers trading down during this difficult economy. "The brand is at a good price point," he said. O'Mara's has also found great success with the chain store market, espe- cially during the holiday season. Hafer also thinks the Irish cream category is getting a little lift from the meteoric success of Irish whiskey. "I think there is a synergy there; the Irish-ness of both categories." O'Mara's touts its Emerald Isle heritage on the bottle. The company is changing some of its POS materials to stress the cream's quality and true dairy character. "The growth in Irish whiskey is pointing up the quality of Irish brands to the forefront," agreed MacDonald. "And that popularity will undoubt- edly help Irish brands across the board." Of course, another well-known Irish liqueur is Irish Mist, the classic cordial steeped in tradition, which can be consumed as an after- dinner drink or as an ingredient in a cocktail. Made with aged Irish whiskey and hints of honey, as well as a vari- ety of other ingredients, the venerable liqueur is hoping to move beyond its core constituency of older consumers to a new generation of drinkers. (Thousands 9-Liter Cases) Brand Supplier Jameson Bushmills Diageo Tullamore Dew John Power Pernod Ricard USA Skyy Spirits USA Pernod Ricard USA Kilbeggan Irish Whiskey Sazerac Black Bush Diageo Redbreast Irish Whiskey Pernod Ricard USA Irishman Paddy Irish Whiskey Bunratty Potcheen Total Leading Brands Others Total Irish Whiskey Source: The Liquor Handbook 2011 24 • Beverage Dynamics • www.beveragedynamics.com • January/February 2012 2009 815 169 67 32 13 12 7 The Other Wine and Spirits Co. 6 Pernod Ricard USA Aveniu Brands 1,129 1,175 -- 8 2010 1,037 170 68 35 15 12 10 10 10 8 1,375 46 45 1,420 irtually everyone is bullish on the potential of Irish spirits. "Both the category and Jameson are in their infancy with much potential upside," posits Hartunian. He notes that Irish whiskey seems to be resilient to economic swings, performing well even during tough recession years. "From a category stand- point, I am extremely optimistic; for Jameson specifically, it is the fastest-growing premium spirit brand for the past few years and I expect it to continue." At Cooley, Cashman believes that premiumization is going to come back, especially for Irish whiskey, where there is a lot of room for consumers to trade up. The company is prepared with whiskeys ranging in price from an affordable $20 all the way up to a superpremi- um $180. "People have a little more money now and they are willing to spend it on brands that they can stand over," asserted Cashman. The category has a good reputation and lots of potential to grow, affirmed Hoyne at Tullamore Dew. "In a spirits industry which hasn't been defined by its dynamism over the past few years, I think people are genuinely looking to see what Irish does over the next decade." s Leading Brands of Irish Whiskey 09/10 % Chg 27.2% 0.6% 1.5% 9.4% 15.4% 0.0% 42.9% 66.7% -- 0.0% 21.8% -2.2% 20.9%

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