Stateways

StateWays - September/October 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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« AMERICAN MADE StateWays | www.stateways.com | September/October 2016 36 "We think gin is part of a bigger move- ment among consumers," says Morgan Robbat, VP of Marketing for Anchor Dis- tilling Company. "To us, it's not a gin bub- ble. We think this is a shift in consumer taste and behavior." Robbat recalls when Anchor first launched Junípero Gin in 1996. The company was worried because little else existed then in the $30-and-up gin market. Most competitors were priced around $20. But Anchor believed Junípero was worth the extra $10, and went with the super-premium price. The decision paid off, and proved well ahead of its time. Today, gins in the $30-$40 range are growing the fastest within the category, Robbat points out. Ellison draw parallels between premium gin and what has fueled the rise of craft beer. "There's also a lot of creativity and variety of styles in gin right now," he explains. "That leads to a lot of consumer experimentation. I think people have become gin-curious. The category isn't scary anymore. It's become ap- proachable." He says that he expects his own customers to try a lot of competitors' gins, but believes that they'll return to Death's Door as a personal preference. Willis echoes the sentiment that "premium gin feels real," thanks to customer excitement about trying different brands and styles. BARTENDERS AND EDUCATION With so many brands now contending for consumer attention, education and sampling are more critical than ever. That's why distillers rely so much on tastings and education. The mixology movement has more bartenders working with craft spirits. Educating them on craft spirits is important, so that they can pass on the knowledge (and pour the product) for cus- tomers who put themselves in the hands of bartenders when ordering a drink. Still, Ellison says, Death's Door sales are 70/30 off/on-prem- ise. In-store samplings remain essential. Willis agrees. "When we do in-store tastings, we talk a lot about what we do, how it's different," he says. "A lot of the time it's just about education. For instance, people look at our white rum like they've never seen it before, even though white rum has been around forever." "We hand out recipe booklets for that reason," he adds. "There's a learning curve. You have to show people how to use these products or they'll sit on the shelves and be one-time buys." "Consumers today are actively seeking out education on craft spirits," Robbat says. "We want to feed their new curiosity and passion to learn more. We really believe it sets us apart." This same curiosity has helped spark the ongoing mixology movement, she adds. Consumers interested in retro cocktails have brought back these classics, many of which require a higher quality of spirit to taste their best. EVOLVED PALATES, EVOLVED SPIRITS So why are consumers so curious all of a sudden about what they drink? Robbat believes that trend began in food. People first became conscious about what they were eating. Was it fresh? Nutritious? Local? This attitude then spread throughout all consumer activity. "When you put it all together, people today have a dedication to eat better, drink better and shop better," Robbat explains. Drinking better means preferring spirits made from fresh, quality, local ingredients — and also those that display greater levels of creativity. Just how drinkers got into craft beer through IPAs and then branched out through the many modern beer styles, consumers who sip spirits are happy to try new and ex- citing takes. In response, distillers have created craft spirits that were un- thinkable a decade ago. Like Westland Distillery, distributed by Anchor, which makes American single malts. "They've studied traditional techniques and gone further to see what they could San Francisco's Anchor Distilling Company. "TO US, IT'S NOT A GIN BUBBLE. WE THINK THIS IS A SHIFT IN CONSUMER TASTE AND BEHAVIOR." —Morgan Robbat, VP of Marketing for Anchor Distilling Company

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