Beverage Dynamics

Beverage Dynamics - March/April 2017

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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Page 41 of 87

42 Beverage Dynamics • March/April 2017 2017 GROWTH BRANDS SPIRITS 2017 GROWTH BRANDS SPIRITS IMPORTED WHISKEYS SHOW THEIR STRENGTH Like its domestic counterpart, the imported whiskey cat- egory was strong in 2016, growing 4.2% to just over 29 million cases. While large brands still dominate, new fl avors and expressions have taken off in recent years, and suppliers are investing in new distilleries overseas to keep up with increased demand. "The growing trend of Scotch whisky cocktails and con- sumer interest in the whiskey category more broadly have provided us an opportunity to engage with new consumers and the broader bartender community," says Monkey Shoulder brand manager, RJ Whittington. Rising Star Monkey Shoulder rose 37.5% in sales last year to 44,000 cases. Fellow Scotch Buchanan's is an Established Growth Brand, selling 480,000 cases in 2016. The Diageo brand credits its smoky fl avor profi le and a rising interest in craft cocktails for its success. Buchanan's expanded its "Deja Tu Marca" custom- ized bottle program in 2016, and began offering small-format bottles off-premise, which led to sales growth in urban markets. The brand will continue its focus on the Latin culture in 2017, partnering with superstar J. Balvin and sponsoring the Billboard Latin Music Awards. Established Growth Brand Johnnie Walker Red grew 3.0% in 2016 to more than 750,000 cases sold. Its growth was as- sisted by the brand's Keep Walking American campaign, which celebrates America's cultural progress and rich diversity. An on-premise extension of that campaign, Flavors of Amer- ica, launched in 2016 and is led by mixologist Gabe Orta. Mi- ami-based Orta oversees 10 bartenders in local markets who develop a range of cocktails inspired by authentic local fl avors and their individual cultural backgrounds. Much of the growth in the Canadian Whisky category can be attributed to Diageo's Crown Royal, especially its wildly popular Regal Apple fl avor. The Established Growth Brand grew 5.7% last year, surpassing 5 million cases sold for the fi rst time. Crown Royal launched a new vanilla fl avor in 2016 and partnered with comedian JB Smoove for a number of commer- cials and events. In the coming year, the brand plans to intro- duce limited-edition whiskeys to offer unique fl avor profi les that meet the demands of whisky connoisseurs eager to experiment. Irish whiskey category leader Jameson is also an Established Growth Brand this year, ris- ing 16.3% to more than 2.8 million cases sold. Jameson Caskmates, which was created by James- HENDRICK'S EMBRACES EXPERIMENTATION Fast Track Brand Hendrick's Gin sold 325,000 cases in 2016, a 12.8% increase over the prior year. Hendrick's worked with brand ambassadors on-premise to infl uence the trade, educate them and delight them in the brand's unusual world. And Hendrick's isn't afraid to try something new, given the brand's reputation. "The most important industry trend right now is experimentation," says senior brand manager Darius Hines. "Our distillation process and the elements that have distinguished us from the start, such as essence of cucumber and rose, not only make us different but have attracted loyal drinkers around the world." The cocktail boom has translated positively for Hendrick's, Hines adds, since gin is a crucial cocktail ingredient in bar programs far and wide. BLUE CHAIR BAY'S ISLAND LIFESTYLE Rising Star Blue Chair Bay Rum sold 81,000 cases in 2016 thanks to bar promotions, samplings, display programs and expanded distribution. And of course its marketing program. "The team built three strong marketing programs to run throughout the year," says marketing director Monica Papuga. "We understand our consumers enjoy being a part of Kenny Chesney's island lifestyle. With the growth we've achieved each year, our team strives to repeat that success everyday." SPIRIT COMEBACK BRANDS (000 9-liter cases) '15-'16 Brand Supplier 2013 2014 2015 2016p % Change Bombay Sapphire Bacardi USA 877 883 880 987 12.2% Remy Martin Remy Cointreau USA 621 626 750 825 10.0% Source: The Beverage Information & Insights Group (p) Preliminary.

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