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 29 fact that it is the world's fi rst eco-friendly luxury vodka," Hale says. That the product is locally-sourced and sustainable are big talking points for 360. "Craft producers can tell a story about water, because water varies spectacularly from one place to another," says Mooney at House Spirits. Water for Volstead Vodka is drawn from the Cas- cades Mountains. The CEO believes there is tremendous value in the concept of local. But, he expands that idea: "local to an American consumer is, by defi nition, American." "There certainly is an element of place that makes up the character of vodka, both in fl avor and brand proposition," Port- wood says. "When Tito started doing this 20 years ago, Ameri- can vodka was not a thing. Texas vodka was even less of a thing. Back then being an American vodka was almost a detriment be- cause it was so outside the mainstream. Now consumers and the trade are really celebrating the American aspect of our brand and many others." Deep Eddy doesn't emphasize local, says Eric Horowitz, di- rector of consumer marketing. "But we take great pride in the source of our ingredients, from our Texas water to our Ameri- can-sourced fruits to our Austin distillery. It is all incorporated in a sense of place for Deep Eddy Vodka." ARTISANAL ASPECT Craft is another magical marketing term that perhaps has been overused. But many American producers employ that handle, and rightly so. As of March, there were 1,280 craft distilleries, according to the American Craft Spirits Association. "'Craft' has become a very much over-used term that, for many, now means 'small' rather than well-made," says Ozgo at DISCUS. "The consumer is quickly fi guring out that many small producers are putting out well-made products, but others are simply small producers." "Tito's uses the message, 'America's Original Craft Vodka,'" Portwood says. The company will celebrate its 20th anniversary next year. "That messaging reminds consumers we were one of the very fi rst craft distillers." Another craft pioneer, House Spirits, is emphasizing history with its new packaging for Volstead Vodka. The front label looks like it was ripped from a vintage issue of Harp- er's Weekly with a caricature of Andrew Volstead, the unlikely hero of vodka. The back label details the history and the craft involved in making the spirit. "People love to learn about American cocktail history," Mooney notes. RESULTS Is the multi-pronged approach bearing fruit, appealing to consumers and competing with main- stream imports? It appears so—at least on a case-by-case basis. "Obviously it is great year to tap into the American spirit, and a really good fi t for Burnett's," says Hafer at Heaven Hill. "We have gotten a great response from the consumer." "Our approach challenges traditional vodka with American ingenuity. The brand has reinvented the vodka category as con- sumers and bartenders nationwide made us the fastest-growing vodka in the country," says Horowitz at Deep Eddy. "It goes back to consumers relating to our brand story and challenging conventional vodka that make our exceptional success possible." "We certainly are holding our own against the mainstream imports," Portwood says. The brand's message, fi rst and fore- most, is Tito himself. "An American entrepreneur, founder, owner and master distiller," she explains, adding, "It seems we are stealing share from some of the big imports." At Campari America, Black points to a number of factors that paint a bright future. Craft cocktail bars that once shunned vodka are now adding vodka cocktails back onto their menus. In the off-premise market, American domestic vodkas are enjoying more specialized attention. "Retailers are gladly calling out and creating sections specifi cally for domestic vodkas because their customers are looking for them," he says. At House Spirits, Mooney sees a more-educated customer as the most important factor in the future. "Consumers are more skeptical of big budget marketing; what they want to know is who made this spirit and how. When it comes to choosing vodka, people aren't as interested in showing off and calling for the most expensive brand, he insists. "It's now about knowing which spirits are better and why." • THOMAS HENRY STRENK is a Brooklyn-based free- lance writer with over 20 years experience covering the beverage and restaurant industries. In his small apartment-turned-alchemist-den, he homebrews beer kom- bucha, and concocts his own bitters and infusions. VODKA can be, and has been, made with just about any fermentable. Grain, potatoes, grapes, sugar beets, molasses, fruits, corn and more.

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