Stateways

StateWays Jan-Feb 2015

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 2015 22 mostly corn-based spirit. But oddly enough, two of the newer, pricey and widely sought-after rye brands — WhistlePig and Lock, Stock and Barrel — are sourced from Canada. And while Canadian whisky is usually the product of one distillery, U.S. laws encourage the inclusion of American spirits into the mix, meaning sometimes Bourbon or other American whiskeys make their way into the fi nal product. Also, unlike the American tradition, Canadian whisky dis- tilleries generally make spirit from each grain separately, rather than in a house-style mashbill. The different spirits are then aged separately and blended together before bot- tling (Canadian Club being the most notable exception, since the brand is blended before barreling). Broad expansion appeal "W e want to continue to elevate the category, thus in- creasing consideration," McLeod of Pernod-Ricard says. "For a long time Canadian Whisky has had the value stripped out of it. We want to reverse that trend. We want to be at the forefront of premiumizing Canadian Whisky in the same way that Jameson, Red Breast and Middleton have elevated the Irish Whiskey category." The results they've found with the roll-out of J.P Wis- er's and other brands popular in Canada is encouraging. "Not only have we seen great engagement from the trade and our internal people, we have also seen an over- whelmingly positive reaction from the consumer," she says. "We always believe in the quality of our liquid but seeing positive, tangible results materialize has been fantastic." They will be focusing on promoting JPW Rye through trial, a partnership with ESPN Fantasy Football, and gar- nering attention among afi cianadoes for higher priced brands Pike Creek (fi nished in port barrels), JPW 18 year old and Lot 40 100% Pot Still Rye. The latter has already developed a cult reputation for its 100 percent rye make-up. Higher-priced Canadians may be the wave of the future; Sazerac's Legacy Small Batch Canadian Whisky launched last fall and is in a growing number of markets around the U.S. This after the good results from the 2010 launch of the ultra-premium Caribou Crossing Single Barrel, with a suggested retail price of $49.99. And other results have encouraged Sazerac, says Kevin Richards. "Our Rich & Rare Reserve Canadian Whisky brand, a premium line extension of our core Rich & Rare brand, continues to beat our expectations in its third year. We are increasing our promotional efforts on the brand as distribution expands." With most companies looking to increase their social media presence, sampling experiences and connection with the cocktail resurgence, they acknowledge the im- portance of the off-premise retailer to the category. "Retailers have done a terrifi c job offering their cus- tomers variety and diversity when it comes to whiskies. Continuing to support various fl avors and spirits and ed- ucating on the wide range of offerings available will help drive interest, as well as exposing their customers to more rye variants," says Claire Richards of Beam Suntory. And McLeod suggests providing retailers with a prof- itable Canadian solution that is targeted against current consumer trends for fl avors and rye will help, but that retailer support as higher priced brands emerge is impor- tant. "Achieving these things will see an elevation in the category and a better experience for the consumer. And, as always, if we can make this happen in the U.S., then a lot of other markets will follow." Leading Brands of CANADIAN WHISKY IN THE CONTROL STATES J.P. Wiser's Rye and Spiced, Lot 40, and Canadian Mist (9-Liter Cases) 12/13 Brand Supplier 2012 2013 % Chg Crown Royal Diageo 904,773 925,883 2.3% Black Velvet Constellation Brands 759,765 805,304 6.0% Canadian Mist Brown-Forman Beverages 438,029 430,125 -1.8% Canadian Club Beam Inc. 305,854 301,525 -1.4% Rich & Rare Sazerac 242,698 240,048 -1.1% Seagram's V.O. Diageo 192,146 182,062 -5.2% Windsor Supreme Beam Inc. 183,237 174,953 -4.5% Canadian LTD Sazerac 186,232 171,051 -8.2% Canada House Beam Inc. 108,063 124,428 15.1% Canadian Hunter Sazerac 102,709 100,951 -1.7% Top Ten Leading Brands 3,423,506 3,456,330 1.0% Source: The Beverage Information & Insights Group from NABCA data. To learn more go to www.bevinfostore.com

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