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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StateWays ■ www.stateways.com ■ January/February 2016 20 CANADIAN WHISKY George Ryals, manager at All Star Wine & Spirits in Latham, NY. The retailer mentions Crown Royal North- ern Harvest Rye among several examples. Canadian whis- ky hasn't seen the growth spurt that it should, Ryals says, but he appreciates the softer style of the whisky, which is a value buy. He also cites Seagram's VO Gold. At All Star, there has been an upswing of popularity for Crown Royal. "We sell quite a bit, and a new, younger demographic is coming in looking for it," he adds. "Crown Royal Rye has done well here," echoes Da- vid Jabour, president of Twin Liquors, an Austin-based, third-generation retailer. "It appeals to the traditional Canadian whisky drinker who is looking for something a little different." "Crown Royal uses a number of mash bills to create different styles, which are blended together. Our master blenders have more than a million barrels to create their blends," Morgan explains. More innovations are coming from the brand in 2016. [For more on Crown Royal and its distillery in Gimli, see the Trip Report column in this issue.] LOOKING FOR TOP SHELF Much of the product innovation and growth is zcoming from the upper tiers of Canadian. Indeed, sales of high- end premium were up a healthy 10.9% in 2014, accord- ing to DISCUS, while the rest of the category was fl at. "Super-premium is what's driving the Canadian whisky category today," says Heather Howell, brand manager for Collingwood Whisky. The Brown-Forman brand has been made at the Collingwood, Ontario distillery (which also produces Canadian Mist) for just fi ve years. The liquid goes through an extra fi nishing step: the ma- ture blends rest with heavily toasted maplewood staves. "Making for a full-fl avored and complex whisky," How- ell says, great for sipping neat or mixing in cocktails. "Messaging is critical. Bot- tles don't yet leap off shelves into carts," she quips. The message emphasizes that Collingwood is a distinct artisanal whisky made at Canada's oldest continuously owned and operated distill- ery in the village of Collin- gwood, Ontario, on the Georgian Bay. More sustainable packaging fea- tures a new bottle with a smaller cap; the name Collingwood "pops" more and "Toasted Stave Finish" is called out on the label. "Journey Forth" is the new positioning for this brand. "It speaks to the vigor and spirit of Canadian landscape," Howell says. There will be a full range of market- ing and advertising activity support- ing the brand. FLAVOR IN FAVOR "Like the other categories, Cana- dian Whisky is increasingly infl u- enced by fl avors, as well as a steady drive toward premiumization. Both are likely to drive category activity and growth in the coming years," Richards predicts. Sazerac has many different Canadian whisky brands at several price points. Rich & Rare Reserve offers consumers out- standing quality and value, he says. The Legacy brand is an upscale Small Batch Canadian Whisky blend that is a full-bodied, quintessentially Canadian offering. And Caribou Crossing Single Barrel, he adds, is a super-premi- um bottling created by Master Canadian Whisky Maker Drew Mayville. "We've seen amazing results with fl avored Canadian whiskies," says retailer Jabour at Twin Liquors. Crown Royal Regal Apple, a brand introduced a year ago, is already selling at nearly half the original Crown Royal, he says. There is a proliferation of new Canadian fl a- vors—maple, peach, pecan and more. "The success of Regal Apple may breed opportunities for other Canadian producers," Jabour says. Crown Royal also has a maple fl avor. "Look for more fl avor innovations in 2016," Morgan promises. Many predict Canadian will move into the world of whisky geekdom and wider interest. But the interest is already there, says Diageo's Morgan. "People are more interested in the minutia of whisky production — the grain bills and the kinds of barrels. Our brand ambassadors get asked very nerdy questions." "Canadian whisky has the budget players, as well as high-end expressions and more fl avored products," Smith adds. "They are covering all bases." "It speaks to the vigor and spirit of enced by fl avors, as well as a steady are likely to drive category activity Richards predicts. Sazerac has many

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