Cheers

Cheers Mar/Apr 2017

Cheers is dedicated to delivering hospitality professionals the information, insights and data necessary to drive their beverage business by covering trends and innovations in operations, merchandising, service and training.

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www.cheersonline.com 30 • March/April 2017 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS SPIRITS Q&A WITH HALL OF FAMER AND COMEBACK BRAND BOMBAY SAPPHIRE Cheers: What industry trends are most impacting sales of the brand right now Tom Swift, vice president brand managing director: We continue to see growth and interest in classic cocktails, many that feature gin. Bombay Sapphire has been well-positioned to capture this growth because of its versatility and the fact that it mixes so well in popular cocktails, like the Martini and Negroni. Cheers: What programs in 2016 led to the brand's success? TS: On-premise, we're very proud of the strong position Bombay Sapphire has among bartenders. We've invested in programs to educate the bartending community, such as the annual Most Imaginative Bartender Competition and Custom Tonic sessions. Off-premise, we see tremendous opportunity to drive education on the versatility of cocktails that can be made with our gins. We've found one of the best ways to run a consumer education program is with bartenders leading consumers through an interactive, hands-on approach to create their own cocktails. That experience of discovery extends beyond cocktails. Cheers: What do you have planned for 2017? TS: Bombay Sapphire has a long history of supporting creativity and the arts. We'll continue to build meaningful relationships with bartenders and push the boundaries of creativity in cocktails. Additionally, we're thrilled to enter our eighth year of the Bombay Sapphire Artisan Series program, a nationwide search to fi nd the next big name in visual arts. premise, we sampled thousands of consumers through blind taste tastes, resulting in positive engagement and a 62% higher sales conversion rate." Established Growth Brand Maker's Mark also credits the bourbon boom for its 5.1% increase to more than 1.5 million cases sold in 2016. "Our mission is to ensure the consumer interest in bourbon is not treated like a fad or a trend, but as an opportunity to share our long-time passion for making great-tasting whiskey and invite today's drinkers to become long-term brand fans," says senior brand manager Stephanie Kang. "While cocktail culture remains top-of- mind with a revived interest in classic cocktails, we also see consumers looking to enjoy the fl avors and complexity of premium bourbons." On-premise, Maker's Mark rolled out the Private Select program, a barrel program that fi nished Maker's Mark in additional nine weeks in a single barrel that includes an outlet's custom selection of oak fi nishing staves. The brand also introduced several limited edition bottlings off- premise, including the American Pharoah bottle made for the Triple outlet's custom selection of oak SPIRIT RISING STARS (000 9-liter cases) '15/'16 Brand Supplier 2013 2014 2015 2016p % Change Olmeca Altos Pernod Ricard USA 28 84 125 160 28.0% Avión Pernod Ricard USA 78 107 132 146 10.6% Lunazul Tequila Heaven Hill Brands 85 94 110 135 22.7% Blackheart Premium Spiced Heaven Hill Brands 65 75 87 92 5.7% Elijah Craig Small Batch Heaven Hill Brands -- -- 70 85 21.4% Blue Chair Bay Fishbowl Spirits 36 54 70 81 15.7% D'Usse Bacardi USA 18 55 58 70 20.7% High West Constellation Brands -- -- 50 65 30.0% Ron Barcelo Shaw-Ross International Importers 34 55 58 61 5.2% Christian Brothers Flavors Heaven Hill Brands -- 32 46 60 30.4% Larceny Heaven Hill Brands -- 30 40 60 50.0% SinFire Hood River Distillers 35 48 49 50 2.0% Roca Patron The Patron Spirits Co. -- 36 40 49 22.5% Monkey Shoulder William Grant & Sons 9 20 32 44 37.5% Casa Noble Constellation Brands -- -- 25 40 60.0% Serpent's Bite Constellation Brands -- -- 25 35 40.0% Woodford Reserve Double Oaked Brown-Forman Beverages 13 17 23 26 13.0% Brinley Gold Shipwreck Market St. Spirits/Opici Wines -- 14 20 24 20.0% Devotion Devotion Spirits 11 14 18 23 27.8% DeLeón Tequila Diageo -- 5 16 20 25.0% Source: The Beverage Information & Insights Group (p) Preliminary.

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