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 | May/June 2017 50 ers. Based on our research we've learned that three out of four consumers drink more than one category and only a small number of consumers drink only one category. For example, less than 10% drink wine only. We also know that consumers are not only trading across categories, but also trading up in price segments. This is even more important when you consider Millen- nials. We've found that Millennials drink across wine, spirits and beer more than any other generation. Unlike previous generations at this age, they are adopting wine and spirits at a notably faster pace and are drinking more premium wine — thus driving many of the evolving preferences and tastes we see in the marketplace. To drive growth, we are addressing Millennial preferences such as premium brands, convenience, fl avors and taste trends like rose, red blends, light whites and sparkling wines. Our recent acquisitions also demonstrate this focus. For ex- ample, in 2016 we acquired High West, a consumer-preferred, high-growth brand in the dynamic and profi table high-end whiskey segment with strong double-digit growth in control states. In addition, we also acquired The Prisoner Wine Com- pany's portfolio of brands, distinctive fi ne wines with category leading positions and double-digit growth. Change on the consumer side has also carried over to the on- and off-premise. Retailers, liquor stores, bars and restau- rants have had to change their approach too. They've had to invest more in training, marketing, layout and shelving. We've seen how off-premise operators across the country have be- come more focused on providing shoppers a positive shopping experience by offering the right assortment in a clean, bright and well-laid-out store. At the end of the day, it's about keeping up with consum- ers to continue to drive growth, and working closely with re- tailers to provide them with the many brands their customers want. We have the size and scale to better understand today's consumer total-beverage-alcohol mindset across the business, adding value to the total category, growing retail sales and de- livering great products for any drinking occasion. TODD STEVEN PEMBLE, BACARDI VICE PRESIDENT, SALES, CONTROL STATES In today's world, the economy has changed, technology has changed and societal trends continue to transform the lives of many. Just think … When you walk the streets of a busy city, you'll see people driving to work, talking on cell phones, using their computers and listening to music. People walk right past one another with nothing more than a passing glance. And if you go to the same street in the 1950s, children were playing, strangers would greet each other and people were actually car- rying a briefcase. The very morals that our society was built on have been lost. Teenagers are becoming more involved in drink- ing alcohol and smoking. In fact, 72% of teens drink alcohol multiple times before grad- uating high school. Even worse, 37% have tried it by the 8th grade. The "follow the crowd makes you cool" concept is making these statistics dangerously high, and messages that today's media sends aren't much better. Music revolves around drugs, drinking, partying all night, etc. Movies and television shows glorify being drunk, smoking and partaking in adult behavior. This is not want we should want for our youth and the future of our society. Major organizations like Bacardi are taking a stance to make a change. Bacardi is a founding member of a global industry group that promotes responsible drinking and marketing. Com- prised of CEOs from companies or associations, this group in- cludes the top alcohol producers of wine, beer and spirits, and represents more than 700 spirits brands sold worldwide. In 2012, this group came together to address one of the most challenging issues facing our industry: the harmful use of our products. Alongside Bacardi were leaders from the industry that represented all categories of adult beverages. In order to take the necessary steps to help solve the issues around irresponsible use of our products, the following fi ve key focus areas where we will strengthen and expand our existing efforts were launched in a Producer's Commitment: Reduce underage drinking Strengthen and expand marketing codes of practice Provide consumer information and responsible product innovation Reduce drinking and driving Enlist the support of retailers to reduce harmful drinking The commitment that was recognized more than four years ago continues today. In fact, Bacardi is strengthening and ex- panding its more than 50 existing responsible drinking pro- grams operating worldwide to deliver on the pledge by the end of 2017. Part of this effort was joining forces with the United Nations (UN) to help achieve one of the organization's 17 Sus- tainable Development Goals to transform the world: Ensure healthy lives and promote well-being for all at all ages. With the UN's goals and the Producer's Commitment, Bacardi is laser-focused on strengthening the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol. Together, we are changing the way we work and making positive strides in doing so for today and for years to come. • the ADVISORY COMMITTEE WEIGHS IN