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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American Whiskeys & Beer 50 Beverage Dynamics • September/October 2015 www.beveragedynamics.com tailers now want more and are constantly asking for tastings and samplings to help drive it out the door." Bird Dog isn't the only player in the spicey-sweet sweep- stakes. Flavored whiskey pioneer Wild Turkey, which launched a honey fl avor in the 1970s, now offers American Honey Sting, spiked with the infamously hot ghost pepper. Heaven Hill, which has done very well with the Evan Wil- liams fl avored line, has recently added Raven's Lace. It's de- signed to appeal to a female base, says Kass, who points out that while fl avored whiskies do attract some women, the larger consumer segment is young males. To that end, Evan Williams has added peach to the line that includes honey, cherry and fi re and two seasonals, cider in fall and eggnog in holiday. "Our fl avor franchise is really, really strong, and a lot of the fl avor growth has moved over from white spirits to whiskies. There's a lot of interest and growth there and we are certainly benefi ting from it. But I don't expect many cupcakes or whipped creams - there will be a slower, more deliberate innovation to package fl avors that work well with whiskeys," he says. BLENDED WHISKEY While long-time blended whiskey category leader Seagram's 7 faltered last year (down 2.1 percent to 2.130M cases), other brands in the top tier showed growth - Kessler (up 2.5 percent to 730,000 cases), Kentucky Deluxe (up 2.4 percent to 302,000 cases), McCormick Blend (up 1.1 percent to 240,000 cases), and Beam 8 Star (up 4 percent to 180,000 cases). The leading blends accounted for more than four million cases sold all told, nothing to sneeze at and a sign that this portion of the whiskey market seems to have stabilized. "Purely because of the halo of whiskey itself, even blended whiskey is catching more eyes than it used to," Kass says. Concludes Beam Suntory's Harris, "The whiskey boom has certainly brought attention to all the suppliers, big and small, of all kinds - not just those in Kentucky but all across the country. The challenge now will always be having enough whiskey." JACK ROBERTIELLO is the former editor of Cheers magazine and writes about beer, wine, spirits and all things liquid for numerous publications. More of his work can be found at www.jackrobertiello.com. head of marketing for Ole Smoky, which offers 20 varieties (the biggest sellers being 40 proof blackberry and apple pie and the 100 proof cherry and white lightning). "The category still needs to prove itself; we're still the new kid on the block and retailers who took in multiple brands may have seen it slow. Now they need more support from brands," she adds. Joe Michalek, president of Piedmont Distillers, maker of Catdaddy as well as Midnight Moon, says the tipping point was the inclusion of fl avors in 2007, and as interest in moon- shine TV programs. As fl avored spirits and other cultural in- fl uences grew, so did moonshine. "Now that there are about 75 brands with about 125 SKUs at a minimum, and some competitors with signifi cant re- sources out there, we're seeing a lot of interest," he says. "We have close to a 50 percent share of white whiskey and a fairly loyal franchise out there with Midnight Moon, but we're in a proverbial street fi ght at retail. I think this will all shake out in the next 18 to 24 months and we'll get back down to the num- ber of brands and offerings refl ective of the volume, because right now there are more brands than there is demand for this segment of spirits." Midnight Moon's leader is also apple pie, with almost 50 percent of the brand's business, but as Michalek says, "How many apple pie moonshines does a retailer actually need?" FLAVORED WHISKEY Flavored whiskeys are unlikely to reach the level of variety that vodka achieved, but new fl avors are still coming. Jim Beam has just introduced a green apple version, joining Beam Suntory's Red Stag black cherry and spiced, Jim Beam maple and Kentucky Fire and Knob Creek's Smoked Maple (the main super-premium fl avored whiskey). "If you're the biggest Bourbon producer out there, you have to play in all the spaces," says Beam Suntory's Harris. "We put things like green apple fl avored whiskey out there for people who want it." But Beam also included last year in their Beam Signature Craft series a limited edition fi nished with Oloroso sherry and Spanish brandy. "It was not a barrel fi nish but a liquid fi nish, and you could honestly say it was a fl avored whiskey," he adds. One of the fl avored whiskey success stories among new suppliers is Bird Dog. Jon Holecz, vice president, marketing for brand owner Western Spirits, says the brand will pass 250,000 cases this year, up from 28,000 three years ago. Its fl avor line has just added spiced and jalapeno honey to a portfolio that started with blackberry, peach, hot cinnamon, maple, apple, chocolate and a peppermint moonshine (a straight Bourbon completes the line.) Apple sells best, with peach and black- berry not too far behind. "Retailers are still very accepting of our fl avors, although we may be reaching a plateau in the category," Holecz says. "Re-