Stateways

StateWays Jan/Feb 2016

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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19 StateWays ■ www.stateways.com ■ January/February 2016 CANADIAN WHISKY kies enter the market," observes Broc Smith, owner of the Sarasota Liquor Locker in Sarasota, Fla. However, he says the mainstays such as Canadian Club, Seagram's and Crown Royal still dominate the segment. Primarily, an older clientele is drinking Canadian whisky, he says. "Canadian is struggling to tap into that Millennial mar- ket—which is what everybody is trying to do, of course." NATIONAL IDENTITY "Canadian is a mellow and smooth, very approachable whisky, with an entry level price point, and it's great for mixing cocktails," says Marc Hindorff, Canadian Mist brand manager for Brown-Forman. Founded in 1967, Canadian Mist is triple distilled and aged in white oak barrels. As for messaging, the company is testing a new campaign called "There's no Mist to understanding great whisky," which puns the brand's name. For now the mes- saging is digital only, but there will be in-store POS mate- rials when the campaign offi cially rolls out. American whiskeys may seem to have the home court advantage when it comes to explaining the nuances of grain bills, distilling technique and maturation. But for many Americans, Canadian distilleries are as close as, if not closer than, the Kentucky Bourbon Trail. "With Canada as our neighbor, it's an easy trip for guests to visit our gorgeous and historical Heritage Cen- ter, where history comes to life throughout the entire ex- perience," says Malini Patel, Beam Suntory's VP of World Whiskies and Innovation. When talking about Canadian Club, it's described as an exceptionally smooth whisky that has set the standard for over 150 years, says Patel, who adds Canadian Club is an approachable alter- native to stronger, higher- proof whiskies. "Canadian Whisky's lighter fl avor profi le and high mixability offer a distinctly different experi- ence compared to Bour- bon, Scotch or Irish," says Richards at Sazerac. Unlike the stringent rules governing other whiskeys, Canadian has fewer requirements, and varies from province to province. The whisky must be mashed and distilled in Canada and aged three years in barrel. Grains, notably corn, wheat and rye, are mashed and distilled separately then blended and bot- tled, typically at 80 proof. The 9.09 percent rule allows up to that percentage of the blend to include ingredients such as other spirits (including Bourbon) and even wine. Proponents say this rule offers greater latitude for inno- vation. A case in point is Beam Suntory's launch of Alberta Rye Dark Batch Whisky, a blend of 91% Canadian rye whis- ky, 8% American Bourbon and 1% oloroso Sherry. "Ca- nadian is an interesting category as it has a lot of room for innovation and premiumization," Patel says. The portfolio also includes Windsor and Ca- nadian Club, which has a 100% Rye expres- sion. For Dark Batch, Beam Suntory's brand am- bassadors are targeting bartenders at high-end whiskey/cocktail bars, with sampling and telling the story of the unique blend. Beam will also wheel out a rye display at certain events. "We are seeing a resurgence of interest in premium Canadian and Canadian Rye whiskies," Patel says. CATCHING IN THE RYE American whiskey geeks and mixologists are starting to appreciate rye's spicy dryness, and that segment is small but growing. That's a plus for Canadian whisky, which has been synonymous with rye whisky, because that grain fi g- ures prominently in many blends. "I love rye, which is why I like Canadian whisky," says LEADING BRANDS OF CANADIAN WHISKY, 2013-2014 (Thousands 9-Liter Cases) '13/'14 Brand Type Supplier 2013 2014 % Change Crown Royal FB Diageo 4,296 4,275 -0.5% Black Velvet USB Constellation Brands 2,015 2,050 1.7% Canadian Mist USB Brown-Forman Beverages 1,537 1,489 -3.1% Canadian Club FB Beam Suntory 1,198 1,210 1.0% Windsor Supreme USB Beam Suntory 939 896 -4.6% Rich & Rare USB Sazerac 835 870 4.2% Seagram's V.O. FB Diageo 870 820 -5.7% Canadian LTD USB Sazerac 700 685 -2.1% Canadian Hunter USB Sazerac 395 392 -0.8% Lord Calvert USB Luxco 414 370 -10.6% Total Leading Brands 13,199 13,057 -1.1% Others 2,476 2,408 -2.7% Total Canadian Whisky 15,675 15,465 -1.3% FB=Foreign Bottled; USB=U.S. Bottled.

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