Stateways

StateWays - March/April 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 ■ March/April 2015 14 By Jeremy Nedelka I recently spoke to Yvonne Briese, Diageo's VP of Mar- keting for North American Whisky (NAW). From Crown Royal to Piehole to Orphan Barrel, the company's brands appeal to a wide variety of consumers and have consistently released new expressions over the past few years to take advantage of growing interest in brown spirits. SW: What innovations or new products are most important to Diageo's NAW portfolio right now? We are extremely proud of all the recent innovation across our portfolio as each new variant has a strategic position in our overall strategy. We've experienced overwhelming success with fl avored whiskies, led by Crown Royal Regal Apple and we continue to receive accolades from whiskey enthusiasts with the new expression available in our Orphan Barrel series, most recently Lost Prophet and Forged Oak. SW: How is increased consumer interest in fl avored spirits driving decisions with NAW? Flavored whiskey has been one of the biggest trends within the category over the last two years. Flavored whiskey continues to show strong growth, with 1.4 mil- lion additional cases sold, accounting for 45 percent of the total whiskey category growth in 2013, according to DISCUS. Recent innovation in this area from Diageo includes Crown Royal Regal Apple, Piehole Whiskey featuring three fl avors — apple pie cherry pie and pecan pie — and Jeremiah Weed Spiced, Cinnamon and Sarsa- parilla Whiskey. SW: What are the biggest trends impacting the NAW market right now? There are several trends impacting the industry at the moment beyond the growth of fl avored whiskey. This in- cludes an increase in female whiskey drinkers, the resur- gence of cocktail culture expanding to secondary markets across the U.S., and an appreciation for the heritage and craftsmanship behind whiskey. We also can't discredit how digital and social media continue to inform consumers of new offerings and ways to responsibly enjoy our products. SW: Crown Royal has seen a number of new expres- sions recently. What's up next for the brand? It's been an exciting 18 months for Crown Royal on the heels of launching Crown Royal XO, Monarch 75th Anniversary, Regal Apple and most recently, the brand's fi rst ever Single Barrel Whisky exclusively for Texas. Crown Royal is participating in the whiskey renaissance like never before. The hand-selected Crown Royal Single Barrel Whisky, featuring the heart of Crown Royal, Coffee Rye, is cur- rently available exclusively to Texas retailers willing to purchase an entire barrel to surprise and delight their cus- tomers. We are really excited about offering a program like this to consumers. As a brand that values innovation, we remain committed to diversifying our portfolio and providing our consumers with options that cater towards different fl avor profi les and price points. SW: Is Diageo well-positioned to meet consumer demand if whiskey sales continue to rise at the same pace as recent years? We have the best resources in place to ensure we're able to meet the growing consumer demand. We've also made considerable investments recently in Kentucky at the historic Stitzel-Weller Distillers and new Bulleit Dis- tilling Co. in Shelbyville, slated to open in 2017, which will ensure we have quality whiskey for years to come. SW: Are there any plans for acquisitions or new introductions in the NAW portfolio? We are always looking to exceed our consumers' expectations in providing them high-quality offerings and look forward to growing our portfolio with stra- tegic innovation, but we don't have anything to share at this time. B R A N D S P O T L I G H T Q & A Whiskey Renaissance "Flavored whiskey has been one of the biggest trends within the category over the last two years." — Yvonne Briese, VP of Marketing, Diageo.

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