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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20 Beverage Dynamics • January/February 2015 www.beveragedynamics.com C anadian whisky may not get as much respect as its Irish, Scottish and American counterparts these days, but if whisky-buying was "American Idol," Canadian would defi nitely be competing in the fi nals. After all, the entire category moved more than 13 million cases in the U.S. last year, sec- ond only to Bourbon and Tennessee whiskeys among brown spirits. The Canadian category overall posted steady if modest growth last year, up 1.3 percent overall, with leading brands Crown Royal (up 2.6 percent to nearly 4.3 million cases) and Black Velvet (up 3.6 percent to more than 2 million cases) leading the way, according to Beverage Information & Insights Group data. The results among the other eight top-ten brands was mixed — Canadian Club, Windsor Supreme, Rich & Rare and Lord Calvert were up, while Canadian Mist, Seagram's V.O. and Canadian LTD lost ground. And while the category has a reputation for lower prices when compared to the other whiskies, the majority of the growth last year came from the super-premium pricing tier, according to fi gures from the Distilled Spirits Council of the U.S. EMBRACING FLAVORS AND BRAND EXTENSIONS For years, the Canadian category has been a steady if uninspired participant in the reawaken- ing of interest in whisky. With a tradition that made "smooth," "mellow" and "easy" keywords for the style of spirit most often associated with whiskies from the North, Canadian wasn't perfectly aligned with the contemporary taste for more robust or expressive fl avor profi les found in American, Irish and Scottish varieties. But recent signs of interest, especially by cocktail connoisseurs for the high rye expres- sions and by new consumers for fl avored expressions, have encouraged Canadian makers to pay more attention to contemporary tastes. "We all know brown spirits are seeing a big resurgence and we're seeing that as well in Canadian," says Vicki Arcos, brand director for Black Velvet at Constellation. "Bourbon is getting all the attention but we're defi nitely seeing a lot of traction as well." Canadian's reputation has always rested on its smooth and accessible qualities, she notes, and as a category has been reliant on brand-loyal male consumers. But now that fl avors are such a huge a huge trend in brown spirits, brands are fi nding success recruiting users from beer, cider and vodka – as well as making inroads among female consumers. "That older male demographic is tried and true. However, there has been an increase BY JACK ROBERTIELLO The whiskies from the north are poised for up-scaling. C of older women and Asian consumers pur- chasing from our Canadian section," says Erin Robertie, liquor department manager at the 35,000 square foot Hazel's Beverage World in Boulder, Colorado." Older women who were die-hard Bourbon drinkers for years are making the switch to a mellower dram, without sacrifi cing the fl avor." "There are a number of trends driving awareness, trial and growth in the North American space and among Canadian Whisky," says Yvonne Briese, VP of mar- keting, whiskey for Diageo. "The emerging popularity of fl avored whisky was part of the inspiration that led to the innovation of Crown Royal Regal Apple. We feel this trend is a great way for drinkers, both men and women alike, to continue expanding their interests for not only whiskies, but fl avored whiskies. She adds, "The growing popularity of cocktails among consumers and the resur- gence of classics such as the Manhattan and Old-Fashioned provide consumers with more options and reasons to responsibly enjoy whiskies, including our Crown Royal Canadian Whisky portfolio." Says Claire Richards, director of world whiskies for Beam Suntory (supplier of Ca- nadian Club and Windsor Supreme), "This is certainly an exciting time for spirits, especially brown spirits. Brands are experimenting more to create new fl avor experiences, and con- sumers are eager to explore different variants. Canadian whisky has a unique fl avor profi le due to its rye content, which is attracting a lot of interest from bartenders and consum- ers as they explore the whisky category. We anticipate that the Canadian whisky category and high-quality, approachable products like Canadian Club will continue to grow." It's a sentiment shared by many other Canadian whisky marketers. "We're re- ally bullish on the Canadian category, at all levels," says Kevin Richards, mar- keting director, whiskey and specialty brands for Sazerac, which sells Rich & Rare, Canadian LTD, Canadian Hunter, Caribou Crossing Single Barrel and the recently-launched Legacy Small Batch Canadian Whisky. "It is a category that had a tremendous heyday not very long ago and we're inspired to bring the cat- egory back to those exciting times. To that end we have a number of new prod- ucts in development (can't be specifi c Canada on the Cusp