july 09

2 INDUSTRY INSIGHTBy Alan Forester, CPA, Attorney

4 MARKETING NEWSGET A SHELF LIFEStack up the profits with thesesmart shelving strategies.

12 BRAND PROFILEFERRARI-CARANO

14 NEW PRODUCTS & PROMOTIONS

16 NEW PRODUCTS & PROMOTIONS

18 COVER FEATUREA SEA-WORTHY NEW RUMThough Seagram’s has enjoyeda solid, 150 year-old reputationcovering many spirits categories,the launch of Seagram’s SmoothBrazilian Rum shows it continuesto think outside the bottle.

28 CATEGORY FOCUSSMALL BREWERY, BIG BUSINESSCraft beers attract attention andmarket share, as brewers commitmore resources.

34 CATEGORY FOCUSRUM-BLINGS OF CHANGEThe enduring spirits category, morethan ever, continues to surprise andstartle with its versatility andincreasingly upscale appeal.

48 CATEGORY FOCUSPISCO’S HOURInterest in the history, making andexperience of distinctive Muscatgrape-based spirits has gainedmomentum over the past decade.Now, it is now poised to take agreater role on bar menusthroughout America.

50 CATEGORY FOCUSCACHAÇA CROSSOVERTo understand Brazil’s national spirit,you must understand where itcomes from, where it’s been andwhere it’s heading.

54 INDUSTRY EVENTJACK DANIELSJack Daniels Studio No. 7 rocksSouthern California beverage tradewith music and cocktails that rock.

56 WINE & SPIRITS GUILDADVICE FOR RETAILERSFROM RETAILERS

60 INDUSTRY INSIGHTBy Lauren C. Tyson,Liquor Liability Consultant

62 INDUSTRY NEWS

64 POUR OF THE MONTHFINEST CALL MIXERS

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MISDEMEANOR DUI LAW IN CALIFORNIA - PART 1A driver convicted of a DUI in the state of California may be punished by a court

imposed penalty. The most common DUI offenses are the misdemeanor offense and felonyoffense. Although misdemeanor DUI offenses are punished less severely than felony DUIoffenses, a driver may still be sentenced to jail and fined up to $1,000. The most impor-tant distinction between a misdemeanor offense and a felony offense is that a misdemeanoroffense does not involved injuries to the other driver.

When a driver is convicted of a misdemeanor offense the judge is required to imposeat least the minimum fine, penalty assessment, license suspension period and treatmentprogram duration required by law. Drivers convicted of a misdemeanor offense are typical-ly ordered to pay two types of fines: (1.) an offense fine, and (2.) a penalty assessment. Amisdemeanor offense fine generally ranges from $390 to $1,000 and penalty assessmentstotal 170% of the offense fine. In terms of the driver’s actual license it may be restricted,suspended or revoked. A restriction on the license limits when and under what circum-stances a driver can use a vehicle and typically only allows for transportation to and fromwork or a treatment program. If a driver’s license is suspended it will be entirely withdrawnbut only for a specified time period or until a certain condition is met by the driver. Lastly,if a driver’s license is revoked it will be completely terminated and the driver will berequired to reapply for a license after the revocation period ends. Drivers who are convict-ed of a misdemeanor offense must also complete a drinking and driving treatment programprior to license reinstatement. Repeat offenders will never receive credit for programscompleted prior to the current violation. In some cases, the judge may even have the dri-ver’s vehicle impounded if the offender is the registered owner of the vehicle, although thisis not occur very often.

Judges have the power to impose additional sanctions on top of those mandated by thestate and may ensure that an offender’s sanctions are the maximum allowed by the state fora misdemeanor. For example, if a driver is convicted by the court of their first offense mis-demeanor DUI it is up to the discretion of the judge whether the offender is sent to jail orgranted probation. In the instance that the judge decides to impose a 48-hour jail sen-tence, they must also mandate probation. Court-ordered probation for DUI offenders typ-ically lasts three to five years. During this time drivers must ensure not to commit anycriminal offense, drive with any measurable amount of alcohol in their blood, and can notrefuse to submit to a chemical test upon the court’s request.

I will discuss second part of misdemeanor DUIs in the next article.Alan Forester is an attorney, CPA and an expert witness in Alcoholic Beverage Control

Law. For more information, please visit www.ABClawyer.com or call 800-464-1040. �Disclaimer: This article is not to be construed as legal advice. Please check with an attorney before taking

action.

Editor’s Note: In BIN's June 2009 issue, the article discussing DUI Law in California was incorrectly called

“Sexual Harassment.” The correct title for the article is: “DUI Law in California.”

INDUSTRY INSIGHTBY ALAN FORESTER, CPA, ATTORNEYWWW.ABCLAWYER.COM 800-464-1040

Wine SenseScott Spencer, owner of Houston Wine Merchant, stocks about 95% of his store with wine and the other 5% is de-voted to spirits to keep his loyal wine customers happy. Spencer’s American selections are organized by varietal and price point within that category. “If someone is looking for a bottle that costs $25, they have all their alternatives right in front of them,” he points out. Niche Texan wines on the other hand are arranged by winery. “For this section, customers are familiar with the wineries already and they want to know what is available from them,” he notes. Global wines are usually broken down by country and then color and price. If one is looking for a white Italian, they’ll find it by pricing, not a specific region. French wines, though, which are extremely pop-

By Alia Akkam

(SHELF)LIFE

Stack up the Profits with these Smart Shelving Strategies

GET A

Walk into any wine and spirits store, and it

might take you a few minutes to get your

bearings. Is the California Chardonnay

with the Zinfandel or the Viognier?

Does vodka share shelf space with bourbon?

Retailers organize their stock in many different

configurations, but is there only one correct way to

maximize your shelf space? We asked the experts

to uncover their profit-boosting strategies.4 B I N 2 0 0 9 • I S S U E 6

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ular with Spencer’s clientele, are grouped into geographical regions.

Karl Ronne, who owns two Wine Thief locations in New Haven, CT, has experi-mented with various shelf layouts for hisstores. He found that when he organizedall Syrahs together, for example, it easily got confusing for his customers. So, he nowarranges wines by region first and then vari-etals. Usually, his clientele seeks out specific French or California wines, so it is mucheasier for them to locate a bottle when thegeographic buzzword is amplified.

Bob Lipinski, director of training, South-ern Wine & Spirits of New York, sees anoth-er trend. “There seems to be a small, grow-ing interest in grouping wines by flavor andstyle,” he explains. “It’s something I happen to like because it offers creativity and makesa wine shop stand apart. [More than threecategories isn’t necessary, however; you don’t want to confuse the customer.]”

To help drive wine sales, Lipinski en-courages retailers to capitalize upon theircold boxes given that about 90% of winepurchased off-premise is meant to accom-pany food, whether at home, a party or a BYOB restaurant and start asking them-selves if they’re going to put a brand in therethat generates a good return on investment.

“Start maximizing your sales opportunitiesby knowing how many and which bottlesare sold after 6:00 pm. from the cold box,”he points out.

Focus on SpiritsFor Spencer, the key to moving his small collection of spirits is by offering differ-ent sized bottles of the best-selling brands. When placing the 1.75 L and 750 ML bottles side by side, he always puts the 1.75 L to the right. “It’s old school mer-chandising: most people grab with their right hand,” he notes.

At The Jug Shop Wine & Spirits in San Francisco’s Nob Hill, eCommerce manager and Spanish wine buyer, Paige Granback, says that spirits are organized by type, but given spatial constraints, the most popular ones, vodka, tequila and Scotch, get wall space while the rest are found on gondola shelving.

“Most retailers merchandise spirits by sub-category (e.g., vodka, rum, scotch),” explains Bob Fountain, director, Cat-egory Business Solutions, Diageo North America. “At a higher level, we recom-mend merchandising white spirits adja-cent to white spirits (e.g., vodka next to gin), and the same for brown spirits (e.g., Scotch next to North American whisky). Research shows that consumers tend to shop within spirit colors than across col-ors and merchandising complementary products together may help to drive in-cremental sales.”

One often overlooked tip for pushing spirit (as well as wine) sales, comes from Mark Wartenberg, sales and marketing con-sultant for the Royal Wine Corporation and former general manager at Wine on the 9 in Howell, NJ. “Salespeople should take special notice of their merchandise and go around their store with a cloth, dusting and making sure their products look approach-able on the shelves,” he says.

“Our advice is to providevalue products at the shelffor those who want them,but to keep the overallmerchandising focus on thepremium tier.”

– Bob Fountain, director, Category Business Solutions,

Diageo North America

EveryMonday, Houston Wine Merchant showcases slow-movingproducts on the discounted“close-out”rack.

Insider Tip no.1 Don’t take your cold box for granted. Many wine-buying trips take place at the last minute, right before a customer sets out to dine or head to a party. If they don’t have the time to explore the shelves in search of the perfect bottle, they’re going to settle on the convenience of what is ready to go in the cold box. So, make sure the brands that are chilled are popular, recognizable names that are sure to drive profit.

Breaking the RoutineWhen customers return to your store, naturally they want to see their same go-to brands. But how often do youneed to shake up inventory to keep them interested?

“We change our product selec-tion based on what the industry pres-ents to us. Whenever there’s a great new spirit that our buyers feel would make a nice addition, we bring it in,” notes Granback. “Some are very loyal to the brands they want, whileothers are more like explorers,” she explains. “Conversely, when some-thing isn’t selling well, we don’t bring it back.”

Lipinski says that with finite shelf space, particular attention needs to be paid to items that are guaranteed

to sell: “On any given shelf, there are about 35-40 items and 12-15 are understocked or overstocked. Some retailers aren’t really paying attention and want to carry everything; carry-ing too many items makes as little sense as carrying too few items.”

While it is vital to focus on the top selling brands for each category (and for each retailer, these selections will undoubtedly be different) niche products, like the $1,200 Cognac, also shouldn’t be overlooked.

“Not everything is for everybody, but for every product there is a cus-tomer,” points out Wartenberg. “A whiskey that most people consider bad can be labeled a ‘novelty item’ or ‘a collector’ and can be sold for a nice profit.”

Sometimes, the realization of an inevitably poor buying decision can translate to creative marketing promotions. Each Monday morn-ing, Spencer fills up his “close-out rack” with marked down bottles of

ENGAGE YOUR CUSTOMERS Jennifer Frank, California Wine Merchants, NYC, thinks shelf talkers can help keep customers interested. “Shopping for wine can be an intimidating experi-ence,” she says. “We find that our customers like information to be conveyed in an accessible and entertaining way because it engages them in the wine buying process and enables them to make a smart purchase decision.”

AVOID CLUTTER Shelf talkers and bottle neck-ers are undoubtedly more common for bottles of wine than spirits, but Bob Fountain, Diageo, thinks they are just as important for the spirit categories, with one caveat: “It is important to balance the use of tags, which can be extremely effective because they call attention to certain items amidst a sea of bottles. When used too sporadically, however, they look like a mistake or an afterthought; when used too often they become just more clutter in the store environment and actually end up doing more harm than good.”

KEEP IT SHORT “Retailers don’t always have the opportunity to hand sell each product so that’s why shelf talkers are important,” says Mark Wartenberg, Royal Wines Corporation. “Keep them short and clean. They should be no more than five words long with terms customers can relate to like bold, medium bodied or semi-dry. Keep the pretentiousness off shelf talkers.”

USE AS AN EDUCATIONAL TOOL Bob Lipinski, SWSNY, would like to see more shelf talkers and neckers used in the promotion of spirits. “There are three groups of shoppers: someone not interested in Parker scores who knows which Bordeaux they want; someone who has $5 and is looking for a bottle on the cheap; and someone who is hungry for info. Very few really know everything about single brands,” he says. “Shelf talkers and neckers are a way to educate your consumers and let them know they’re not just buying a Scotch, they’re buying, say, a Speyside Scotch aged in sherry barrels.”

The Power of WordsCan shelf talkers really drive

your bottom line?

“Some retailers want to carry everything; but carrying too many items makes as little sense as carrying too few.”

– Bob Lipinski, director of training, Southern Wine & Spirits of New York

Insider Tip no.2While it’s tempting to lump all of your vodkas together and your gins separately, you may want to consider organizing all your white spirits together (and the same for brown goods). Customers like shopping within the same color spectrum and thismeans you could actually help push sales of another category. When seeking out say a flavored vodka, having a London-style dry gin on display nearby can introduce them to new products that may spike interest.

Insider Tip no.3What are your top two selling brands for each category? Make sure you’ve got them stocked in all available sizes. Your fastest moving brands are going to be dif-ferent than your competitor down the block. Make sure you stay ahead by playing up those brands that are category leaders and most recognized through word of mouth and advertising.

Clean,attractive

shelf talkers lure in

customers atCalifornia Wine

Merchants in NYC

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product that aren’t selling; if it re-mains there the following week, it gets marked down even further. This creative sales tool not only opens up new shelf space for a wine that isn’t moving or a vintage that changes, but keeps the customers interested. For some of them, they may choose to come back a week later to see if it’s still there at an even deeper discount. Whether they do or don’t buy that particular sales item, the important thing is, they’re back in the store.

Value Versus LuxuryWhile the new economy might have altered many things, as far as the fun-damental principles of shelf merchan-dising, little has changed. Fountainpoints out that shoppers still look for premium products on the top shelf, value products on the bottom shelf and leading brands on the eye shelf.In particular, Diageo still uses lead-ing brands, like Smirnoff and CrownRoyal, as signposts to help customers navigate category offerings that might otherwise confuse them.

“Even in the new economy the pre-mium tier is still growing and is gain-ing share within spirits,” Fountain says.

“Our advice is to provide value products at the shelf for those who want them, but to keep the overall merchandising focus on the premium tier. Through high visibility and competitive pricing on premium spirits, retailers may im-prove customer satisfaction by deliv-ering great deals on the products their shoppers love, while paving the way for

greater profits by selling a higher ring, higher margin product.”

For the Wine Thief’s Ronne, he doesn’t see any shelving changes in direct response to the economy. “We work with a lot of smaller produc-ers. Regardless of what’s going on out there, our average bottles sales are still around $15,” he says. “We keep those bottles at eye level instead of putting the luxury bottles there.”

The Jug Shop also hasn’t altered their layout to accommodate the more trying economic times. “We really have not changed anything in the spir-its section in response to the economy,” says Granback. “The less expensive brands have been and still are placed towards the bottom, with the luxury brands more at eye level and higher. If you want something cheap, you’re go-ing to have to squat for it.”

Insider Tip no.4Never mind today’s troubling economy. All the forecasts might predict the time isn’t right for premium products, but continue to play them up. Value brands, which are undoubtedly more in demand today, should be available to keep prices relevant for your custom-ers, yet premium products are still growing. Be sure to keep them in visible areas.

Sitting on your shelf for six months orlonger? Toss it. You’re wasting precious shelf space—and dollars—on a more financially viable product. Getting rid of slow-moving SKUs means you can bring in more facings of faster, productive selections.

The key to a successful store is product diversity. Does your store attract a particular ethnic community? If so, make sure your selections reflect that.

A vast product assortment is essential to keeping customers content and intriguedbut overstocking, without considering the impact a product will have on your con-sumers, can actually work against you.

Don’t neglect niche brands. While they might not be instant money-makers, they symbolize prestige and make your store stand out as a specialty from the rest of the pack.

Take advantage of the calendar year. Each month brings a new holiday or season. Capitalize upon that by utiliz-ing free-standing displays and endcaps to spotlight products specific to certain events or times. Putting your rosé selections up front during the warmer months is bound to drive traffic while showcasing cordials in the winter months will help boost holiday sales.

Finding favorite products easily is important to loyal customers, yet at the same time, it’s important to them to see that your store is staying current and tapped into trends. Make sure you cycle in new products.

Keeping Your Shelves Relevant“We change our product selection based on what the industry presents to us. Whenever there’s a great new spirit that our buyers feel would make a nice addition, we bring it in.”

– Paige Granback, The Jug Shop, San Francisco

BRAND PROFILE

While Ferrari-Carano has beena market leader for more thantwenty years, and is always de-

veloping exciting new wines to maintaintheir niche in California wine production, one thing that is not new to founders Donand Rhonda Carano is their green approachto winemaking, from the fields to the table.Though winemaking has generally been a“green” production process in many respects, the Caranos and their team have alwaysmade it a point to take care of the earth.

“Long before the public became tunedin with such issues as global warming,Ferrari-Carano has practiced sustain-able farming techniques, from vineyard tobottle,” says Rhonda Carano. “We believe working hand-in-hand with nature enhanc-es the quality of the fruit. For this reason thewinery gives back to the land in many ways,such as ensuring natural crop nutrition byrecycling organic matter for use as mulch inthe vineyards, planting cover crops and in-tergrating desirable plants and animals.”

Though the balance betweenon- and off-premise sales is shift-ing, the Caranos point out thereare ways to create excitement fortheir new releases, as well as wayson-and off-premise accounts mayhelp their customers find joy in re-discovering classic reds and whiteswith fresh new twists. The newpromotions and forthcoming re-leases reflect their preparedness forthose shifts.

“Some of our more recent

promotions and campaigns reflect people’s desire to stay closer and entertain more at home,” Rhonda Carano points out. “We are focusing on Ferrari-Carano’s longevity in the market, emphasizing quality and value com-bined. Recent Ferrari-Carano ad headlines

have included, ‘A Tradition of Excellence Time and Time Again,’ ‘Fall In Love Again and Again’ and a ‘Tried & True Friend’ phi-losophy in our marketing efforts.”

“Ferrari-Carano is a consistent, famil-iar face that has always provided quality and value in every bottle of wine, at every price point,” concurs Don Carano. “With a diverse portfolio of wines to choose from, we are proud to be able to offer high-quality wines for every budget and every palate, while being respectful of the land for future generations.”

Among this year’s new releases, the 2007 Ferrari-Carano Tre Terre Chardonnay from Russian River Valley is full-bodied and rich with a delicious fruit component. The 2006 Cabernet Sauvignon’s depth and showy tan-nins make it perfect for pairing with red meats and strong-flavored cheeses.Those who prefer powerful, robust Cabernets will also enjoy PreVail West Face and PreVail Back Forty, two Cabernets from Ferrari-Carano’s mountain ranches in Alexander

Valley. They are also particularly proud of their 2008 Fumé Blanc, as it is such a versatile wine.

“We have an opportunity to tell our story, get personal with our customers via our wines,” con-cludes Rhonda Carano. “Whilewine lovers are cutting back and searching for value-oriented, quality wines, they want to iden-tify with the personalities behind Ferrari-Carano. It’s not just a bot-tle of wine, it’s a lifestyle.”

Three Cheersfor the Reds, Whites and Green

Ferrari-Carano stays successful beyond its greatAmerican wines, putting more emphasis on

environmentally sound practices and providingsuperb value for trade and consumers.

By Elyse Glickman

Don and Rhonda Carano

Ferrari-Carano’s Baby Doll sheep munch on the green grass and weeds below the grapevines, turning them into natural fertilizer.

14 B I N 2 0 0 9 • I S S U E 6

1 Burnett’s ADDS PINK LEMONADE TO PORTFOLIO OF VODKAS

Burnett’s collection of vodkas has expanded to include its 19th flavor, Pink Lemonade. The launch of the new fl avor will be supported by POS fl oor displays and shelf facings as well as sales education materials. Burnett’s Pink Lemonade is available in PET 1.75 L/50 ML and glass 1L/750 ML sizes and bottled at 35% alcohol by volume (70 proof).Vist www.burnettsvodka.com

2 Bonterra RELEASES ITS 2008 DRY ROSÉRecognized organic producer, Bonterra Vineyards, has released its 2008 dry rosé. The salmon-colored wine is a blend of 100% organic Sangiovese, Zinfandel and Syrah grapes and offers fl avors of strawberry, tart cherry and vanilla. Visit www.bonterra.com

3 Yarden INTRODUCES MOUNT HERMON REDYarden Inc., recognized importer of Israeli wine, has released its Mount Hermon Red to the American market. Mount Hermon Red, named after the mountain in Golan Heights, is a blend of Cabernet Sauvignon, Merlot and Cabernet Franc and has strong berry fruit characters with hints of herb. Visit www.yardenwines.com

4 Van Gogh LAUNCHES DUTCH CARAMEL VODKADutch caramel is the newest flavor to join the Van Gogh portfolio of 19 super-premium vodkas. Produced in small batches at the Royal Dirkzwager distillery in Holland, Van Gogh Dutch Caramel Vodka is the fi rst caramel fl avored and colored vodka on the market. The new fl avor will beavailable in three sizes: 1L, 750 ML and 50 ML and will retail for $27/750 ML. Visit www.vangoghvodka.com

5 ÍS Vodka LANDS STATESIDE ÍS Vodka (pronounced “ice”) is an ultra-premium vodka

crafted from naturally pure Icelandic water and non-genet-ically modifi ed European wheat. The new vodka comes in a tall, elegant bottle carrying an Icelandic angel holding a “7”, its number of distillations. ÍS Vodka retails for $39.95, and is available in select markets. Visit www.isvodka.com

6 Charles & Charles UNVEILS SINGLE VINEYARD ROSÉIn a unique collaborative effort, Charles Bieler (of Three Thieves / Rebel Wine Co. and BIELER Père et Fils) and Charles Smith (of K Vintners, Magnifi cent Wine Co. and Charles Smith Wines), have paired up to create a single vineyard dry rosé. The wine – aptly named Charles &Charles – is produced at the Talcott Vineyard in Columbia Valley Washington and follows a traditional Provençal style of rosé. Charles & Charles retails for $12 and will be available nationally. Contact: [email protected]

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1 Asunto de Vino RELEASES THREE NEW CHILEAN WINES

Asunto de Vino, translating into “An Affair with Wine”, has added Chardonnay, Sauvignon Blanc and a Shiraz/Carménère blend to its line of wines. The Asunto de Vino collection also includes their flagship varietal Carménère, Merlot and Caber-net Sauvignon. The three new wines will retail between $9.99 and $12.99. Visit www.asuntodevino.com

2 Drambuie UNVEILS BOLD NEW BOTTLE DESIGNDrambuie Liqueur is changing its look with a striking new

package concept. Altering the original design fi rst created in 1745 for Scotland’s Charles Edward Stuart, the brand has adopted a new style developed by French design studio Linea. The new bottle launch will be supported by television and print advertising, on-premise events and consumer sampling. Visit www.drambuie.com.

3 Crane Lake Cellars INTRODUCES AUSTRALIAN CHARDONNAY

Crane Lake Cellars has imported and begun distribution of a 2008 Australian Chardonnay. Described as “rich and abundant in fl avor”, the wine has an SRP that competes in the super-value category – about half the price of many leading Australian

Chardonnays. The package is eco-friendly, with a lighter weight glass, real cork and recycled paper label. Advertising support including radio and outdoor, entitled “More For Your Dolla Koala”, will be available in select markets. Down Under, imported and bottled by Crane Lake Cellars, Napa and Sonoma, CA

4 Boisset’s Fog Mountain Wine DEBUTS WITH ECO-FRIENDLY BOTTLE

Fog Mountain, the newest addition to Boisset Family Estates, is the first California wine launched in the U.S. in a 1L PET

plastic bottle. The wine is 100% Merlot sourced from prime growing areas throughout California and is served in a

lightweight bottle made from recyclable plastic, offering 33% more wine than a typical 750 ML bottle.eVisit www.boissetfamilyestates.com

5 Southern Comfort LAUNCHES READY-TO-SERVE COCKTAIL LINE

Just in time for summer barbeques, Southern Comfort has created two ready-to-serve cocktails: Southern Comfort Sweet

Tea Cocktail with classic Southern Comfort and refreshing sweet tea, Southern Comfort Hurricane Cocktail, a combina-tion of the and New Orleans Hurricane and Southern Comfort. Both new cocktails will come in 1.75L sizes and will retail for $19.99. Visit www.southerncomfort.com.

6 Kellan Offers AN IRISH WHISKEY WITH AMERICAN FLAIR

To add a distinctive touch to its whiskey, Kellan selects once-used American bourbon barrels for its aging process. The result is a whiskey excluding aromas of honeyed nuts, cream and dried wildflowers with a smooth spiced finish of cocoa and gingerbread. The International Wine and Spirits Competition has awarded Kellan the title of “World Distillery of the Year”. Available through Berniko Imports. Visit www.berniko.com

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DRAMBUIE LIQUEUR

changes its look with a striking new

package concept.

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Are youpaying for the

bottle ?

Or, are youpaying for the

vodka ?

Please Enjoy Sobieski Responsibly. SOBIESKI® VODKA, 40% ALC./VOL. (80 PROOF). PRODUCT OF POLAND. ©2009 IMPORTED BY IMPERIAL BRANDS, INC., PALM BEACH GARDENS, FL

www.truthinvodka.com

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A SEA-WorthyNew Rum

THOUGH SEAGRAM’S HAS ENJOYED A SOLID, 150 YEAR-OLDREPUTATION COVERING MANY SPIRITS CATEGORIES, THE

LAUNCH OF SEAGRAM’S SMOOTH BRAZILIAN RUM SHOWS ITCONTINUES TO THINK OUTSIDE THE BOTTLE

BY ELYSE GLICKMAN

W ith a myriad of next-big-thing brandnames and concepts seeking their niche indifferent spirits industry categories, there’s

something to be said for being the “old” kid on theblock. The marketing intelligencia and distillers atSeagram’s know this, and they are milking theirgood name for everything it’s worth—and doing itwith continued momentum and finesse.

Besides being one of North America’s oldest pur-veyors of Gin as well as a major producer and/orplayer in several spirits categories, they are alsobehind some of the most clever product launches oftheir day. Who could forget the blues-y and memo-rable “Seagram’s Golden Wine Cooler” campaignfrom 1986, featuring a cool, young Bruce Willis?

This blockbuster sent Seagram from the fifth biggestdistiller to the top in less than two years. Morerecently, in 2003, Seagram entered the vodka gameat the start of this category’s major boom. Sincethen, Seagram’s Vodka has grown at an 18% CAGR(Compound Annual Growth Rate)—which trans-lated in to layman’s terms, means the company con-tinues to prosper, even in a recession which hasaffected a normally recession-proof line of products.

The expansion of the rum category into sub-cat-egories provides an opportunity to give consumersmany options to fill their different needs during dif-ferent occasions. The growing rum sub-categorieshave definitely attributed to the strong growth ofthe rum category.

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SEAGRAM SEES RUMIN THEIR FUTUREEven with the economy and increasinglycompetitive and crowded spirits arena,Seagram’s is showing there is no challengethey cannot handle when staking theirclaim in a category they set out to conquer.Rather than answer the predictable ques-tion, “Why launch a new rum,” theirapproach is to boldly ask, “Why not launcha new rum?”

To create the perfect product to ventureinto this new arena, Seagram searched theworld over for an ideal source for the perfectrum. They found it in exotic Brazil, a prod-uct of several rums made by two distilleriesin Sao Paolo, one of which is the Capuavadistillery in nearby Piracicaba, known fortheir long history of producing distilledproducts from sugar cane.

According to Sheila Senhouse, BrandManager, Seagram's Rum at Pernod RicardUSA, the resulting authentic and high-quality spirit provides an ideal balance ofunique rum character and unparalleledsmoothness and this smooth flavor andunique taste profile make it the perfect rumto mix in today’s most popular cocktails.“As one of the only spirits/adult beveragetrademarks to successfully span across mul-

tiple categories, we thoroughly did ourresearch before making the decision todevelop and release the line. Our researchpositively revealed rum as a great fit,” shesays. “From this point, there was nothingelse to do but move forward.”

Seagram’s top brass realized in diggingfurther that the category offered Seagram’sand parent company Pernod-Ricard signifi-cant sales and awareness building opportu-nity for the Seagram brand name.Furthermore, they found that because therum category had grown by 10 million casesover the last decade, and is forecasted togrow by another 10 million cases in thenext 10 years, they not only had a nice com-petitive edge but also a good foundation toback it up.

While Seagram’s Rum is currently avail-able only in the U.S., Senhouse attests that

the growing popularity of rum internation-ally gives Seagram’s Rum extra excitement,buzz and vitality in the U.S., as consumersall over the world are interested in tryingnew and exciting rum cocktails. WithSeagram’s Rums joining the Pernod RicardUSA portfolio, it becomes part of a globallysuccessful beverage industry force thatincludes other iconic spirits brands andproducts, such as ABSOLUT® Vodka, TheGlenlivet® Single Malt Scotch Whisky,Chivas Regal® Scotch Whisky, Jameson®Irish Whiskey, Wild Turkey® Bourbon,Seagram’s Extra Dry Gin®, Beefeater®Gin, Plymouth™ Gin, Martell® Cognac,Malibu® flavored Rum, Kahlúa® Liqueur,Hiram Walker® Liqueurs, Pernod® andRicard®; such superior wines as Jacob'sCreek® and Brancott Estate®; and suchexquisite champagnes and sparkling wines

COVER FEATURE continued

“You can’t escape the fact

that everybody’s looking

for great quality at an

affordable price. That

pretty much describes

Seagram’s Rum, which is

a spirit made from great

quality ingredients at a

very affordable price...”– Craig Johnson,

Marketing Director

22 B I N 2 0 0 9 • I S S U E 6


as Perrier-Jouët® Champagne, G.H.Mumm™ Champagne and Mumm Napa®sparkling wines.

Along with the other brands, Seagram’sRums will benefit from an overall corporatestrategy combining a respect for the past withthe constant search for fresh ideas.Marketing efforts for every brand are consis-tently aligned with consumers’ evolution,and it will allow marketing for Seagram’sRums, beyond the launch, to not onlyrespond to changes in the market, but also toanticipate them. Pernod Ricard USA’s suc-cess is credited to a solid strategy focused ongenerating value and striving to outperformthe competition through brand-buildingactivities that capture consumer imaginationas well as effective wholesaler managementensuring a successful route-to-market.

THE SEA-CHANGESeagram’s Smooth Brazilian Rum launchedin May 2009 along with two vibrantly pack-aged flavors, Seagram’s Citrus BrazilianRum and Seagram’s Raspberry BrazilianRum, amid great hopes and expectations.Seagram’s Smooth Brazilian Rum is nowavailable in 1.75L, 1.0L, 750ml, 375, 200ml,100ml and 50ml sizes, with the 750ml for-mat retailing for a suggested price of$11.99. Seagram’s Citrus and Raspberry areavailable in the 1.75L, 1.0L, 750ml, and50ml sizes, also line priced at $11.99.

Craig Johnson, Marketing Director forSeagram’s Smooth Brazilian Rum at PernodRicard USA, believes Seagram brand rums,even with a crush of ambitious newerbrands and products entering the market,would be an attractive proposition for thetrade as well as a compelling new offeringfor consumers who both love somethingnew and looking for ways to enjoy their old,trusted favorites.

“The monumental growth of the rumcategory definitely offers the Seagram’strademark a significant opportunity toincrease sales and brand awareness,” heaffirms. “American consumers know andtrust the Seagram’s name. Seagram’s Gin,which also incorporates the Seagram’sTwisted Gin and Seagram’s Gin & Juice

products, remains the number one sellinggin in the U.S. The combination of growthopportunity and respected quality brandname made the decision to enter the rumcategory a no-brainer. Collectively theSeagram’s adult beverage franchise repre-sents more than 12million cases in the USwhich is attributed to the strength of theSeagram’s name, so the addition of rumbuilds on that strength rather than repre-sent a ‘me too’ approach.”

This then leads up to the question,“Why Brazil?” Johnson offers many answers.

“On a practical level, Brazil has beenthe world’s largest producer of sugar canesince 2005, with raw products used in mak-ing sugar, molasses and rum,” Johnson adds.“On a consumer level, meanwhile, there is amystique about Brazilian culture, lifestyleand cocktails that’s well loved on a globalscale. And from a flavor standpoint, mixol-ogists and rum fans love the light variationon the spirit, with distinctive citrusy notesand great mixability coming from a blend ofcolumn & pot still distillation.

“We tested concepts from around theworld with consumers and the exotic, mys-terious qualities that embody Brazil emergedas having the strongest appeal,” saysJohnson. “ “Brazilian rums are traditionallydistilled to create a lighter spirit with citric,lemon notes which is exactly what we werelooking for and what we know our con-sumers and trade clients want as well.”

“During these economic times, con-sumers are still demanding a lot from theirpurchases, and our trade clients demandproducts that will move from their shelves,”interjects Senhouse. “You can’t escape thefact that everybody’s looking for great qual-ity at an affordable price. That pretty muchdescribes Seagram’s Rum, which is a spiritmade from great quality ingredients at avery affordable price. Consumers and ourtrade clients can buy with confidence,knowing they are getting great quality, mix-ability, fantastic flavor and versatility”

As a mixologist who trains and educatesbartenders, Allen Katz, Mixologist forSouthern Wine & Spirits (distributor forPernod Ricard products, including

CLASSICS WITH ASEAGRAM’S SWING

Senhouse points out that nationallyacclaimed mixologist Allen Katz (who alsoserves as director of mixology and spiritseducation for Southern Wine and Spirits ofNew York, and is the president of the NewYork chapter of the United StatesBartenders Guild) was one of the creativeforces behind several of the cocktailrecipes being used for highlighting the fla-vor and versatility of the rum.”

SEAGRAM’S RUM & COLA1 part Seagram’s Smooth Brazilian Rum3 parts cola

Pour ingredients into a cocktail glass filledwith ice. Garnish with lime wedge.

SEAGRAM’S CAIPIRINHA1 Part Seagram’s Smooth

Brazilian Rum1 Tbsp. granulated Sugar1 Lime

Muddle sugar into lime wedges in an old-fashioned glass. Fill glass with ice cubes.Pour Seagram’s Rum into glass. Stir well.

SEAGRAM’SRASPBERRY FIZZ1 part Seagram’s

Raspberry Rum3 parts club soda

Pour ingredients into a cock-tail glass filled with ice.Garnish with raspberries.

24 B I N 2 0 0 9 • I S S U E 6


Seagram’s Rums) feels that a mix of interestin Brazil stirred up by the emergence ofcachaça, along with great taste and realvalue gives the newly launched Seagram’sRums a competitive advantage.

“I am often working in bars and prefer toorder drinks I would not make at home,”Katz points out. “Consumers and beverageprofessionals are all looking for that sense ofadventure when preparing and drinkingcocktails. With this in mind, something ascomfortable as rum is good to have in stock,especially when you’ve got rums likeSeagram’s--affordable from a consumerstandpoint and an opportunity for great prof-its from an on-premise standpoint.Bartenders are the rock stars of the serviceindustry at the moment. And during thisrecession, bartenders are looking at whatthey can do to contribute to the profitabilityof their bar. Though taste rules, and qualityand flavor are important in the final cock-tail, there is a keen interest in looking at theprofitability of the spirits used to mix them.”

THE CACHAÇA QUESTIONKatz believes that whether one is consider-ing a purchase of rum or cachaça, what ulti-mately matters most is the quality of theproduct inside the bottle. Whether you aredealing with adventurous consumers, peoplebehind the bar, or retailers, and there is aninterest in both cane spirits, you can go onto the story about what makes rum fromBrazil special.

“Because most Americans have notspent a lot of time in South America, butare familiar with the culture, you can con-jure up an image of the vibrant culture andexotic flavors of their cocktails in con-sumer’s minds,” he adds. “Generally, whenpeople think of rum, they often think of theCaribbean, or other countries in the tropics.To bring clarity, and tell the story behindSeagram’s Rums, it’s best to explain exactlywhat’s inside the bottle and where exactly itcomes from.”

Senhouse enthusiastically brings up thefact that Seagram’s trio of rums are madefrom sugar cane juice that she explains isprocessed in such a way to give the final

products a distinctive taste, natural spicesand fruit flavors that, “makes it so blend-able, not only with fresh fruit and juices, butalso colas, sodas and pretty much any kindof mixer. One of the recipes being used topromote the new line of rums is a variationon the classic caipirinha.”

She also adds that Seagram’s rums andcachaça are made from similar ingredients,sugar cane juice, but Seagram’s rums are dis-tilled at a much higher level (55% -72% abv)than a cachaça, which makes the product asmoother, more palatable, mixable spirit.

That being said, most mixologists worththeir salt (and sugar), as well as an increas-ingly savvy pool of consumers, know thatcachaça has been the traditional foundationof the caipirinha. Even with the possibilityof some purists and spirits of aficionadosbalking out there, Senhouse, Johnson andthe rest of the team are not worried aboutany form of backlash or comparisons.Senhouse feels that even with the new(er)cachaça category on the rise, the best strate-gy to adopt is to sell Seagram’s rums on theirown merits. A straight-forward messagewoven with a little history will set the stagefor a great exchange of communication.

FROM THE HEART OF BRAZILWhile Seagram’s Rum is sourced from twodistilleries in Sao Paulo, it should be notedthat the Capuava Distillery, brings a literal

history of success to the Seagram’s Rumformula.

Founded in April 22nd, 1886 by aDanish Engineer, and owned and operatedby its fourth generation, Capuava trans-formed from a collective of DanishImmigrants manufacturing wooden furni-ture to a sugar-distilling powerhouse thatintegrates a mix of science, meteorology andquality control to produce optimum rawmaterial to manufacture rum and Cachaça.They credit their endurance and consisten-cy to excellent soil, along with Analyticalfield productivity control, variety control,maturation control, harvesting control andconstant meteorological follow up.

In 2001, Capuava established itsBrazilian Beverages & Liquor Ltda. (BBL)arm, around the mission statement that theirobjective was to be a purveyor of, “AlcoholicDistilled Liquor of high quality supplied tonational and international bottlers.” Thefounders also acknowledge that the interna-tional consumer has changed, and they nowdemand high quality spirits that not onlytaste great but also have no after effects toensure “pleasure in drink-ing”(responsibly).This is undoubtedly some-thing Seagram’s embraces, which in turn isreflected in their sales and marketing efforts.

“Even with the Cachaça boom happen-ing right now, we shouldn’t forget thatBrazil is actually a major rum producer for

Capuava Distillery in Piracicaba located in Sao Paulo.

the world,” Senhouse elaborates. “Manydistilleries all over Brazil make both cachaçaand rum products, and for many brands. Forthis reason, we feel we do not have to definea distinction between cachaça and rum,because our products are clearly labeled asBrazilian rum. On the other hand, if wewere making a cachaça, we would have thechallenge of explaining that it wasn’t a rum,and we would do our labeling and marketingefforts accordingly and clearly. I think a lotof American consumers will also beintrigued because Seagram’s is a Brazilianrum, and there are not too many Brazilianrums on the market in this country.”

SALES SAMBASenhouse confirms that Seagram’s Rum willsupport their recent launch with trade adver-tising, a range of POS materials, a 50ml retailpromotion where legal, off-premise sampling(where legal) and targeted internet program-ming to reach younger (LDA+) consumerswho enjoy socializing and having fun.

“Our tag line is, ‘Taste how Seagram’sDoes Rum,’ which is a call to action for con-sumers to try the product, especially aschances are they’ve tried other plain andflavored rums,” stresses Senhouse. “Wehave a two-fold goal with this philosophy--to leverage the Seagram’s brand equity andplay up the product’s Brazilian origin andconnections to the culture that inspired it.Visuals are colorful and meant to evoke thepassion, vitality and zest for life embodiedby Brazil. Furthermore, we are conductinglocal tasting events in different marketsacross the U.S., including off-premise sam-pling and cocktail promotions so consumersdon’t just hear the message but experience itthrough their senses.

Senhouse also acknowledges that thestill-emerging foodie culture is playing arole in the future for Seagram’s Rums, espe-cially with the decision to include the fla-vors in the initial push of the brand andproduct launch. “People these days are real-ly paying attention to taste and quality,which, again, creates the perfect launch padfor Seagram’s rums,” she continues. “Ourconsumer appreciates the quality of ingredi-

ents that went into it, especially theBrazilian sugar cane. This (development) isnot surprising when you consider drinksusing fresh muddled fruit and juices are sopopular right now, and you need a productthat has the right flavors and degree ofsmoothness to work for those recipes.”

Based on the company’s research prior tothe launch, the marketing people atSeagram’s determined after talking withmixologists as well as on- and off-premiseclients, that citrus-flavored rums were themost in-demand, followed by raspberry rums.Senhouse also notes that Mixologists andtrade clients’ input will continue to be valu-able as more consumers become more famil-iar with Seagram’s Smooth Brazilian Rum.

“Mixologists play a wonderful role inhighlighting all the many ways to consumerum,” says Senhouse. “With the popularityof drinks like the mojito and the revival ofold classics like the daiquiri, mixologists con-tinue to lead consumers in versatile ways toconsume rum. Mixology and the foodie cul-ture have both given rise to consumerdemand for quality. Seagram’s Rum is a qual-ity product made from quality ingredientsand is a perfect rum to fill consumers’ needs.”

While some beverage industry profes-

sionals may wonder if Seagram’s Rums are a“me-too” product, capitalizing on the grow-ing interest in the category, Katz explainsthat issue can be resolved by looking at itfrom two different perspectives.

“There is always going to be enthusias-tic audiences for these new products hittingthe market, and with a name like Seagram’s,consumers and some members of the tradewill react favorably because they are famil-iar with the name and know it as a mark ofquality,” he says. “Those who know and likeSeagram’s Gin will have a built in curiosityabout the new products under the banner.The other thing is that there is such a biginterest in the trade and professional, thatwill naturally create a wonderfully strongdemand for new products and education.Though there may be some presumptionsmade about Seagram’s Rum by professionalsbased on their opinions of Seagram’s Gin,blind taste tests even the playing field andgive professionals to experience what’s inthe bottle. We’ve done this with Seagram’sRum, and reactions have been overwhelm-ingly positive”. For example, Seagram’sSmooth Brazilian Rum and Seagram’sCitrus Rums each won silver medals in the2009 San Francisco Spirits Competition. �


Two Brothers mountain in Brazil that is used on the label of Seagram’s Rum.

“People these days are really paying attention to taste

and quality, which, again, creates the perfect launch pad

for Seagram’s rums,”– Sheila Senhouse, Brand Manager

On Tuesday nights at The Beer Table in Brooklyn’s Park Slope, the com-munal tables are packed with friends

and couples tucking into the $25 three-course meal, which might include arugula salad with roasted ramps, butter beans with herbs and ramp mayonnaise and rhubarb crumble. For just $15 more they pair their meal not with wine, but with corresponding specialty drafts Hopfenstark Baltic Porter, Wintercoat Double Hop and Hopfenstark Ostalgia Rousse.

Meanwhile, in San Francisco’s Hayes Valley, Arlequin Café, sister to cocktail lair Absinthe Brasserie & Bar and Arlequin Wine Mer-chant, features more than 30 beers to pair with its Indian spiced lambburgers and Cuban pork confit sandwiches. This summer they’ll alsobe rolling out an afternoon beer pairing for customers to enjoy in the outdoor garden.

Currently, total annual dollar volume for the craft brewing indus-try is $6.3 billion according to the Boulder, CO-based Brewers As-sociation. In 2008 there were nearly 8.6 million barrels of craft beer produced in the U.S. and growth was 5.9% by volume and 10.1% by dollars. The Brewers Association also reports that as of December 2008, craft brewing sales is 4% by volume and 6.3% by dollars.

Sam Calagione, founder and president of Dogfish Head in Mil-ton, DE describes the craft beer phenomenon as a “true grassroots, organic consumer movement.” Craft brewers might not have the

Small Brewery, Big BusinessCraft Beers Attract Attention and Market Share,

as Brewers Commit More Resources

By Alia Akkam

CRAFT BEERMagic Hat Brewing Company’s

brewery in South Burlington, VT

At work in the Dogfish Head brewery, Milton, DE

Inside McMenamins’ HighlandPub & Brewery, Gresham, OR

Pho

tocr

edit:

Stu

dioS

chul

z.co

m

28 B I N 2 0 0 9 • I S S U E 6

financial resources “to advertise and marketwith enough critical mass to move the mar-ket share needle the way Bud, Miller, Co-ors and Corona do, but in the long-run, ourmethod of slow and steady, word of mouth, consumer-pull-based growth will be more sustainable.”

Greg Koch, CEO of Stone Brewing inSan Diego agrees. He’s been enjoying great craft beers for over 20 years and thinks thatthe category’s profitability has been cultivat-ed over the years. “Since craft beer’s growth has been natural, rather than artificial–it’s not based on old-line models of advertis-ing, discounting, trendiness–it is one of longterm sustainability,” he says.

Jeff Gorlechen, vice president of Six-point Craft Ales in Red Hook, Brooklyn,points out that prior to the mid-60s and theadvent of mass advertising, Americans sup-ported their local breweries with staunchenthusiasm. “What you are seeing now is areturn to where the American beer indus-try was in the first half of the last century,” he says. This return means good things for Sixpoint: last year they produced just over 6,000 barrels and expect to do 25%-50%more than that this year.

Twenty years ago, it seemed like the big imports dominated the beer scene. “Theywere here when the population exploded after the war, with pocketfuls of money to invest in marketing their brand. Today, the buzz is back to crafts and the imports mar-ket is flat or declining for the first time inmemory. Clearly an oversimplification but, I believe, directionally accurate,” says AlanNewman, CEO of Magic Hat in South Bur-lington, VT, whose brewery has grown–save for one year–at an annual rate of 22%.

Whether it’s a college student who spends 90% of their discretionary income onspecialty brews or a wine lover who wantsto age their favorite beer alongside the Bor-deaux in the cellar, Calagione says that his demographic for Dogfish Head is broad.“When we opened in 1995 the average beerwe brewed was 90% abv and brewed with sixas opposed to the ‘traditional’ four ingredi-ents. In that era we were the smallest brew-ery in the country. Fast-forward to today and we are one of the fastest-growing breweriesin the country but still our average beer to-day is 9% abv and brewed with six ingredi-ents. I think consumers see and appreciate

that we have been committed to our missionof off-centered ales for off-centered peoplesince day one,” he explains. Dogfish Head’s commitment to innovation translates tosuccessive financials: they are up over 40%in revenue and over 35% in barrelage thusfar this year.

Living LocalDrinking and eating locally has gained tre-mendous importance in the past severalyears which means a boon for craft brews.

Newman remembers growing up in post-war suburban Long Island and seeing local bakeries shut down to make way for pack-aged Wonder Bread instead. But now, he has not had a piece of “fluffy white bread” servedto him in over 10 years, thanks to the return of the artisanal movement. This same trend applies on the beer front. “In the Pacific Northwest and Northeast, craft beers now have mid-teen market shares of beer–higher than imports in many markets–and we are seeing dramatic growth rates in parts of the country that were considered ‘no-man’s land’ for craft beer just five years ago. I believe this trend will continue,” Newman says.

The craft renaissance has put the em-phasis on affordable luxuries points out Calagione: “Instead of a giant SUV or fancy watch, consumers are treating themselves to locally roasted coffee, organic milk from a regional dairy and amazing, fresh beer brewed right in their communities.”

Koch, however, thinks that it’s the craft products themselves helping to set the trends. “I believe that the deeper trend of drinking and eating locally-made artisanal products has been driven by the fantastic companies making them. Whether its cheeses, breads, CSAs, small ethical pig farmers or craft brewers, together we have

CRAFT BEER

Pint of Sixpoint Craft Ale

Stone Brewing’s Greg Koch with a Stone Ruination IPA

CRAFT BEER BY PRODUCTION

(for the year ended 12/31/08)

growthby volume

growthby dollars

5.9% 10.1%

Source: Brewers Association, Boulder, CO

CRAFT BEER BY MARKET SHARE

(as of 12/31/08)

4% in volume

6.3% in dollarsSource: Brewers Association, Boulder, CO

all contributed to this larger movement.And we have been collectively raisingthe bar and producing things that are com-pelling,” he explains. In fact, it is this pas-sion that has prompted him to create hisI Am a Craft Brewer video, capturing the camaraderie and character of the Americanbrewing movement.

John Richen, chief brewery administra-tor of McMenamins Breweries in Portland,OR says that some microbreweries are now so popular on a national scale, that regionalappeal matters far less than it once did: “Butit started as a local movement and will al-ways have drinkers who gravitate towardthe beers made by small breweries close tohome, which is a good thing and an impor-tant and marketable connection that allowsthe little guys to stay very competitive andhealthy on their own turf.”

Building a BrandFor the guys over at Sixpoint Craft Ales, thebiggest challenge was getting the product into people’s hands. They were fortunate to have a great business partner in theirdistributor, which had a history of forging relationships with key accounts. Particularlydistinctive about Sixpoint Craft Ales,though, is that they are their own demo-graphic. “We are seven guys in our mid-20s to late 30s and nearly all of us live in Brook-lyn. We go out and enjoy life in the city and the people that visit the establishments thatpour our beer have a lot in common with us,”explains Gorlechen. “They like the product but they also see a part of themselves inthe brewery.”

Since Sixpoint Craft Ales has virtuallyno marketing budget, hosting events withbusiness partners has been key to build-ing their brand. “We are unique in that we don’t have any bottled product so nearly all of our customer experiences take place insocial settings which really goes a long waytowards building a positive image for ourbrand,” Gorlechen continues. Available in just New York, Massachusetts, New Jersey and now Philadelphia, Sixpoint Craft Alesfirst relied on accounts in better restaurantsto drum up sales but now the trend hasshifted according to Gorlechen. “In a restau-rant it is much easier for them to sell a newproduct to a customer because many of the

sales happen at the table. In a crowded bar on a Friday night, this is a little more challeng-ing when the bar is three deepand people tend to order thebeer they know and it’s difficult to ask ques-tion. Flash forward four years later and our highest volume accounts are bars now thatpeople are more familiar with our brand,” he says. This brand awareness has led to collab-orations with The Modern at the Museum of Modern Art in NYC, where all four tap lines are devoted to Sixpoint.

For McMenamins, which doesn’t serve its beer outside of its McMenamin-brandedproperties, historic locales like the Bag-dad Theater and Pub in Portland and theLighthouse, Oregon coast’s first brewpub, an historic tie to the neighborhood is key to

reaching out to the community. “Our ‘cul-ture’ is successful because we expect eachplace to establish their own neighborhood identity rather than take a cookie cutter ap-proach to creating an environment,” saysRichen. McMenamins special events in-clude live music, festivals, dinners and caskreleases at happy hour on a Friday.

Dogfish Head is known for its beer din-ners revolving around Calagione’s book with wine expert Marnie Old, He Said Beer, She Said Wine, which gets it paperback release this month and attracts both beer and wine lovers. “It’s been great,” says Calagione who is releasing a new tea and spice-infused beer this month called Sah’tea. “From national chains like Ruby Tuesday to all the killer lo-cal beer-bars around the country, our draft sales are up over 40% YTD at a time when casual restaurant sales in general are down, so a lot of people must be trading up to more flavorful beer.”

Koch also notices that more restaura-teurs are getting in touch with him to let him know how happy they are with his beers. “A large number of restaurants now recognize that great craft beer can be prof-itable, it brings in a better guest and helps to set their restaurant apart from the masses. These are people that have gone to the ef-fort to be passionate about what they do and to seek out the best quality choices for their establishments. They are actively engaged and have a strong connection with the pro-ducers of the foods and beverages and with their local customers.”

There’s still a long way to go. To get to the “promised land” as Newman calls it, craft needs to be a minimum of a 10 share of beer in order to have the capital to invest and compete with imports and domestic spe-cialty beers. “To get there, we need multiple strong players to accumulate the capitalnecessary to invest in capacity, marketing and sales to be competitive with imports, wine companies and specialty domestics,” he says. “While variety has been our great-est strength, it is also our greatest weakness. It drives category interest–at some level–but without building strong local and national brands we dilute resources and prevent brand allegiance, which is what I believe will ultimately drive category growth.”

CRAFT BEER

Magic Hat’s new Artifactory

“In the Pacific Northwest and Northeast, craft beers now have mid-teen market shares of beer – higher than imports in many markets – and we are seeing

dramatic growth rates in parts of the country that were con-

sidered ‘no-man’s land’ for craft beer just five years ago. I believe

this trend will continue.”

-Alan Newman, founder, Magic Hat Brewing Company

A selection of beer from McMenamins Breweries

32 B I N 2 0 0 9 • I S S U E 6

34 B I N 2 0 0 9 • I S S U E 6

RUM-BLINGSOF CHANGE

THE ENDURING SPIRITS CATEGORY, MORE THAN EVER,CONTINUES TO SURPRISE AND STARTLE WITH ITSVERSATILITY AND INCREASINGLY UPSCALE APPEAL

From the end of Prohibition forward, theRum category has been perceived as a vaca-tion in a glass, whether sipped straight or

incorporated into cocktails of the fruity, fun andfrothy variety. However, the winds of change areblowing, and at the strength of a powerfulCaribbean storm.

The mixology craze over the past decade hasboosted the Rum category’s prominence. Since thedawn of the 21st century, inventive bartendershave elevated sweet drinks to new levels of sophis-tication and reintroduced their patron’s to classics

such as mojitos and daiquiris. The recent boom inluxury and novelty goods, including spirits, hasprompted rum producers from around the world tostrut their best stuff, and put upscale rums on themarket intended to compete with the finestcognacs and brown spirits. Even in the currenteconomy, a good rum and a cigar, is one luxury thatparticular segment won’t give up. The same holdstrue for young people on the hunt for somethingnew, fresh and challenging that will brighten up anight out or a party in house.

From the looks of things, no matter how tides

Admiral Nelson’s Premium Spiced Rum is proud to be a three

time Hot Brand Award winner (2006 – 2009)! And proud to be

judged a two time Best of Show – Platinum Award winner (2007

& 2009) at the World Beverage Competition!

We truly appreciate the good company of our distributor, broker

and retail partners and, of course, all of our loyal consumers…

Here’s to you! For more information about Admiral Nelson’s Premium Spiced and

Flavored Rums please contact your Luxco representative.

Please Enjoy Responsibly. ©2009 Admiral Nelson’s® Rum Company, 35% Alc./Vol. (70 Proof) Luxco Inc., St. Louis, MO

turn, Rum is on the rise. Retailers, restau-

rants, bar owners and bartenders better be

prepared for the new ideas, recipes, trends

and related products that will be raining

down and bringing customers in droves.

INTERNATIONALLYAMERICANThough Rums on the market today origi-

nate from every point on the globe, from

South America and the Caribbean to

Austria, Africa and Asia. However, as

Tommy Bahama Rum’s marketing team

points out, Rum in America has a storied

history in its own right. Rum was distilled in

our country by 1664 and by 1770, with

more than five million gallons produced

each year. In 1778, General George

Washington marked July 4th with a double

ration of it for his soldiers and an artillery

salute. Paul Revere had a swallow of the

stuff to refuel his spirit during the course of

his midnight ride. Benjamin Franklin com-

posed a poem about it. Ernest Hemingway

famously mixed it the cocktails that served

as a creative muse. On election night in

1960, John F. Kennedy sipped it over dinner

at his house in Hyannis Port, Massachusetts

as election returns trickled in.

Though Cruzan is currently one of the

few rums that can say it is produced on

U.S. soil (in St. Croix, U.S. Virgin

Islands), rum still holds an important place

in our nation. The category has grown for

the last fifteen consecutive years and is

now the second largest spirits category

behind vodka. Cocktails such as the

Mojito, Daiquiri and Mai Tai, are now

classic starting points for innovative

mixologists to develop future classics.

“Rum was one of the top growth cate-

gories in the spirits industry last year, up

three percent from 2007,” observes Matt

Carroll, chief marketing officer at The

Patrón Spirits Company. “As the populari-

ty of rum continues to increase, we see

great potential for more people to discover

and enjoy our portfolio of ultra-premium

Pyrat rums.”

Sailor Jerry Rum, a concept brand that

is now seeing its sales soar, is building its

brand equity through its ties to American

history, the artistic legacy of tattoo legend

“Sailor Jerry” Collins and the role rum has

played in social and popular culture.

According to brand manager Suzi Cesco,

rather than conduct mass marketing or

engage in over-the-top liquor promotions

on- or off-premise, the company is allowing

the Sailor Jerry name to speak for itself, not

only in its Rum format, but also other brand

extensions, including a clothing line

launched prior to the rum in 1999, an

acclaimed documentary film (Hori Smoku

Sailor Jerry) and music program. That said,

Sailor Jerry Rum has emerged as the brand’s

stand-out product.

“Sailor Jerry Rum, which is strong, nat-

urally spiced and smooth, is designed to rep-

resent the history of rum as it was consumed

throughout American history through the

time when Sailor Jerry was active,” explains

Cesco. “If you look at the way rum was con-

sumed before WWII in America, it was

regarded as a masculine spirit and the basis

for a number of cultural revolutions in

America and throughout the world. In

Sailor Jerry’s time, if sailors ran out of

money they could trade and barter with

rum. In some cases throughout U.S. history,

they could receive rum as part of their pay.

Tattooing, meanwhile, was a right of pas-

sage for many American soldiers, and Sailor

Jerry had elevated tattooing to a high form

of folk art. To enjoy the rum that’s named

for him today, however, consumers don’t

need to have tattoos. A Sailor Jerry drinker

can also be somebody who appreciates fine

spirits as well as American history, folk art

and the evolution of popular culture.”

Cesco adds that as the Sailor Jerry Rum

marketing team sees things, many of the top

rum brands have moved away from their

original roots and consumption styles. They

see Bacardi’s image now focused on nightlife

and Captain Morgan’s brand equity built

around party culture. However, these

brands’ shifts of paradigm enables Sailor

Jerry Rum to be a sub-category on its own.

“We are not looking at the wider rum

category in terms of how we market our-

selves,” assures Cesco. “We are fortunate

CATEGORY FOCUS continued

38 B I N 2 0 0 9 • I S S U E 6

that the quality of our product is high

enough quality to span several segments. It

can be enjoyed as a shot, on the rocks, as

sipping rum or as the base of high-end and

high-concept cocktails. However, when we

do promotional events and work with our

clients, we focus most on the simple prepa-

rations—the classic rum-and-Coke or rum-

and-Ginger (Ale)—to emphasize the singu-

larity of the brand. We are not looking at

flavor extensions or other kinds of market-

ing approaches that other rum brands are

engaged in. At the moment, we are one of

the fastest growing rum brands in America,

and this was validated by our taking the Fast

Track Brand Award for a second time in

2008. Our marketing is about brand discov-

ery, which leads to sampling the rum and

learning about the man who inspired it and

his artwork—and vice versa.”

THE KINGS OF CANE:THE TOPS OF TOP SHELFSIPPING RUMSPrior to changes in the economy, luxury

products—including fine rums—experi-

enced a spike in popularity. Although cur-

rent conditions have caused sales among

most products to fall, super- and ultra-pre-

mium rums and other spirits are benefitting

from the fact that they are an affordable

luxury that consumers can enjoy out on the

town or with home entertaining.

According to Henry Preiss, Preiss

Imports CEO and Founder, however, the

rum category in the U.S.—especially the

artisanal brands he focuses on--still faces

some challenges. “While rum has gained

international recognition in the U.S., it is

fighting a slow battle up the hill of victory,”

he assesses. “All that said, premium rums

are making strides and inroads on drink lists

in upscale on-premise establishments. We

are showing rum styles that hold up to

Cigars, as well as flavorful and powerful

drink cocktails such as the Caribbean

Swizzle made with our English Harbour

Rum (Antigua) as well as Grand Fond

Galion White Rum (France) and

Cadenhead's Classic Green Label Rum

(blended with rums from Guyana, Jamaica

and Nicaragua). As people come to appreci-

ate the premium segment of the rum catego-

ry, they will find exciting new taste sensa-

tions from hand-crafted rums. This trend

reinforces that rum has a place in the premi-

um snifter that once only held Cognac.

Rum, like single malts, is becoming an

exciting category with many styles and fla-

vors coming to market. The expansion of

these styles has increased the awareness

among consumers who now seek the better

products on the market.”

Francesco Lafranconi, Director of

Mixology for Southern Wine and Spirits,

like Henry Preiss, observes that the rum cat-

egory in the U.S. is experiencing a resur-

gence, especially as Southern Wine and

Spirits distributes many of Preiss’ artisanal

rum brands.

“Just a few years ago, only a few brands,

such as Malibu, Bacardi and Captain

Morgan were familiar to American con-

sumers at large,” Lafranconi says.

“Nowadays, consumers are far more educat-

ed and understand that there is so much

more to the category than the sweet,

almost liqueur-like brands they came of age

with. Additionally, the mojito and Nueva

Latina food trends spreading across the

country have also contributed to the

growth of the rum category over the past

decade. Even the emergence of other South

American products such as Pisco and

Cachaca has played a role. Aged rums and

after dinner rums are just starting to catch

on. Even so, we have to give credit to the

mojito as the embodiment of the category,

generating more interest in the category

and encouraging both businesses and con-

sumers to expand their personal definition

of what rum is all about.”


RUM FOR IMPROVEMENT

These rum cocktail recipes are guaran-teed to up the happiness quotient at yourcustomer’s next gathering or party.

Bahama Basil Smash2 ½ parts Tommy BahamaWhite Sand Rum

2 parts sour mix3 fresh blackberries4 basil leaves4 slices of ginger¼ part lemon-lime soda

Muddle blackberries, basil and ginger in a mixingglass. Add remaining ingredients, shake well andstrain into a mixing glass. Top with a splash oflemon-lime soda. Garnish with an orchid.

Tommy’s Blue Hawaiian1 part Tommy BahamaWhite Sand Rum

1 part blue curacao1 part coconut cream2 parts pineapple juice

Pour all ingredients into a blender with a scoop ofcrushed ice. Blend until smooth. Pour into a hur-ricane glass and garnish with a fresh pineapple sliceand maraschino cherry.

40 B I N 2 0 0 9 • I S S U E 6

CEO Phil Joffray, whose Infinium

Spirits recently acquired and revitalized the

Zaya Gran Reserva brand, is very optimistic

about the expanding reach of aged and arti-

sanal rums. The brand recently faced a

challenge of quality perception when pro-

duction facilities for Zaya Gran Reserva

were moved to Trinadad from Guatemala.

However, much labor and time was put into

the brand to ensure trade clientele and con-

sumers were getting their money’s worth

from the Zaya brand based on the niche it

had occupied for years.

“In order to provide a plentiful supply of

Zaya Rum without compromising on quali-

ty or taste, we moved production to

Trinidad because of its nearly century-long

history of producing luxury rums of excep-

tional quality and excellence,” says Joffray.

“We’re using the same Zaya recipe, as it has

always been, developed by the same Master

Blender. Furthermore, the rum used for the

new release of Zaya Gran Reserva has been

resting undisturbed, in medium charred

white oak barrels, for a minimum of 12 years

on the island of Trinidad.”

According to Joffray, initial tastings

results were excellent. A side by side com-

parison of the new Zaya release with a bottle

of ‘old’ Zaya did reveal some subtle differ-

ences between the two. Testers, and since

then, industry buyers and consumers have

noted the new variation’s butterscotch,

brown sugar and maple nose, balance, con-

sistency and smoother palate as assets.

“These results prove that the propri-

etary recipe handcrafted by our master

blender will be hailed as a rum of excep-

tional quality,” says Joffray. “We predict

prestigious awards will be forthcoming, and

that Zaya will retain its position as the

World's Finest Sipping Rum. I have no

doubt that Zaya Rum will continue to be a

joy to drink.”

The Patrón Spirits Company, mean-

while, is still enjoying success with its Pyrat

collection (Pyrat Cask 1623, Pyrat XO

Reserve and Pyrat Pistol). So much so, in

fact that an elaborate consumer website

www.pyratrum.com has been set up to bring

more substance to Pyrat’s “story.” Says

Patrón Spirits International’s Chief

Marketing Officer Matt Carroll, “The new

site marks the first time that The Patrón

Spirits Company has created a consumer-

focused brand campaign to support this

high-end spirit. Creating this website

allowed us to really dig deep into what

makes this rum so special, and tell the story

of why Pyrat is truly so exceptional. In the

meantime, trade-focused print advertise-

ments for Pyrat, touting it as ‘the enlight-

ened ultra-premium dark rum,’ came out

during 2008 in beverage alcohol trade pub-

lications to support the impact the web site

could make among consumers.”

Carroll acknowledges that while total

rum category sales was up by about 3%, the

ultra premium sector is an area where con-

sumers are especially gravitating toward.

And while rum is produced in many coun-

tries, he believes that because the

Caribbean is the epicenter of rum produc-

tion, there is no better place to produce

ultra-premium Pyrat rums.

“For all Patrón Spirits products, includ-

ing Pyrat rum, consumer education is key,”

Carroll continues. “That education begins

with bartenders and waitstaff who under-

stand and appreciate quality spirits and

cocktails. For this reason, we spend consid-

erable effort to demonstarate Pyrat’s mixa-

bility and versatility, as well as encourage

drink menu placement. Furthermore,

mixologists have a lot of fun with our prod-

ucts, conceiving new and unusual cocktails.

People will continue to realize that better

spirits make better drinks, which will help

the continued growth of ultra-premium

rums like Pyrat.”

Elwyn Gladstone, Vice President for

Marketing at Proximo Spirits, likewise, bet-


Caribbean Swizzle1 1/2 oz English Harbor5 Year Old Rum

1/2 oz D’Aristi Xtabentun1/2 oz Harvey’s BristolCream

1/4 oz Elixir G Ginger Mix1 oz Fresh Lime &Agave Nectar Blend

2 dashes Angostura Bitters

Shake all ingredients with ice and strain into icefilled glass, garnish with fresh mint sprig.

Admiral Nelson’s Apple Pie4 oz Admiral Nelson’sPremium Spiced Rum

2 cups apple juice or cider2 oz Arrow CinnamonSchnapps

Combine all and garnish with apple slices.

Admiral's Punch3 oz. Admiral Nelson'sPremium Spiced Rum

1 oz. lime juice (fresh)1/2 tsp. superfine sugardash of orange bittersFill with sparkling water

Shake with cracked ice and pour into a chilledCollins glass. Garnish with a slice of orange, aslice of banana, a maraschino cherry and sprinklewith nutmeg.

ting the origins and distillation techniques

that make Ron Matusalem, will capture the

imagination of an increasingly educated

and sophisticated buying public. The

change in America’s overall demographics

has also helped the brand.

“Ron Matusalem has Cuban origins and

is still made using the original Cuban recipe

and formula,” says Gladstone. “With so

much in the news about Cuba, I think it has

spiked a lot of interest and attention. Also,

in the U.S., a lot of the rum brands have

strong following from people who have

come from the same country as the rum,

such as the Dominican Republic, Cuba,

Honduras and Jamaica. People who travel

to these places also develop an interest in

these products. Consequently, this makes

rum a very diverse category with much

room for growth.”

SWEET SOMETHINGS:NICHE AND FLAVOREDRUMS STILL SET TRENDSWhile luxury rums are gaining momentum,

purveyors of flavored brands and other

unique products built around a concept or

novelty still have solid footing in the cate-

gory. “The competition in this industry is

incredible,” said Red Rum founder Dan

DaDalt in an interview with the Argus-

Courier, a newspaper based near the com-

pany’s headquarters in Petaluma. “It's a

constant battle for shelf space. It's a tough,

but fun business. I took a chance when I

came up with it. I had no crystal ball. In my

own mind I haven't reached my expecta-

tions for the company yet, but I'm glad that

the business is growing and getting a nice

following. My goal is for it to be a national

brand someday.”


“Nowadays, consumers are

far more educated and under-

stand that there is so much

more to the category than

the sweet, almost liqueur-like

brands they came of age with.

Additionally, the mojito and

Nueva Latina food trends

spreading across the country

have also contributed to the

growth of the rum category

over the past decade.”

– Francesco Lafranconi,Director of Mixology,

Southern Wine and Spirits

44 B I N 2 0 0 9 • I S S U E 6

The vision of this former SKYY Vodka

executive has slowly but surely come to

fruition in recent years, as he added the

spiced VooDoo Rum and has most recently

launched the heavy duty/50-proof Jolly

Roger Coconut & Key Lime Rum. One

thing contributing to the brands’ growth is

his grasp on his target market, billing him-

self as a forerunner in the “indie” part of the

rum category. Peter Seely, CEO of Trader

Vic’s Gourmet, and their Holding

Company, Nubeco and grandson of brand

founder Victor J. Bergeron, has followed a

similar path, maintaining the unique iden-

tity of Trader Vic’s Rums. On his watch, the

brand is defined by its multi-generational

appeal and pop-cultural connections.

“My grandfather invented the Mai Tai

in 1944,” stated Seely to BIN last year.

“Some of his friends who lived in Tahiti

decided to ride out the war in Piedmont.

Seeing how much they missed the flavors of

home, he created a cocktail with Wrey &

Nephew Gold Rum, a fine 17 year-old rum

and other ingredients. His friends’ response

was, ‘Mai tai roa ae,’ which means, ‘The

very best.’ Not surprisingly, it caught on,

and a regular recipe was developed initially

using an ounce of the Wray & Nephew

(now marketed under the Appleton name)

and one ounce of the Rum St. James (of

Martinique by way of France), along with

Orgeat syrup (now made in-house), ¾

ounce of a fine Orange Curaçao, juice of a

whole lime and a dash of rock candy syrup

(a simple syrup) we make in house.”

Like Sailor Jerry, Tommy Bahama Rums

are an extension of a lifestyle brand con-

cept. And like Trader Vic, Tommy Bahama

Rums tap into the enduring appeal of tropi-

cal vacations and a carefree, festive lifestyle.

According to Julie Byrne, Tommy Bahama

Brand Manager, when parent company

Sidney Frank created the brand, they did

not want to settle for mediocre. This led to

their hiring R.L. Seale in Barbados, an 80-

year veteran of rum production, to create,

distill and bottle the product.

“The integrity of the rums was never

comprised to meet a certain price point for

mass production,” affirms Byrne. “Only the

finest all natural ingredients were used. The

rums were allowed to fully mature before

being bottled. In today’s ‘foodie’ culture,

consumers are savvy. They appreciate natu-

ral products. They appreciate local ingredi-

ents. They appreciate heritage and tradition

when it comes to what they eat and drink,

and Tommy Bahama Rum represents all of

these things. (Furthermore), we believe

that consumers and bartenders are going to

continue to embrace ultra premium rums.

And embrace the subtleties of the various

brands that are on the market today.”

RUM-OR HAS IT:WHAT’S NEXT FOR RUMByrne continues by explaining that Sidney

Frank’s marketing efforts have been exten-

sive to continuously reinforce the brand’s is

versatility.

“Tommy Bahama White Sand makes a

fabulous mojito or typical frozen rum sum-

mer cocktail, and it can also mix with the

most unique of ingredients, from pear nectar

to Prosecco,” Byrne declares. “Last fall and

winter we promoted a ‘Golden Sun

Pumpkin Pie’ made with our gold rum,

pumpkin spice syrup, cream, cinnamon and

a graham cracker rimmer. That’s certainly

not your typical rum pina colada, but it was

successful in many non-traditional rum mar-

kets throughout the country. Promoting

cocktails such as this helps consumers realize

that rum is not just for summer. Marketing

through specialty cocktail tasting is crucial

for our brand. Rum connoisseurs and bar-

tenders, meanwhile, understand and appre-

ciate the traditions of this style rum and can

identify what makes Barbados rum different

from recently introduced rums from other

countries and regions.”


Pyrat Passion2 oz Pyrat XO Reserve3/4 oz Peach Puree7-upDash of GrenadineLime wedge (for garnish)

Combine all ingredients into a bucket glass filledwith ice. Garnish with a lime wedge.

Pyrat Punch2 oz Pyrat XO Reserve2 oz Soda waterJuice of 1/2 LimeDash bittersSplash of Pineapple Juice(optional)Splash of Grapefruit Juice(optional)1/4 tsp nutmegFresh Cherries

Combine rum, limejuice, and bitters in a shaker ofice. Shake gently. Pour into margarita glass.Garnish with nutmeg and fresh cherries. Optionaljuices are pineapple and grapefruit.

Hawaiian Plantation Cobbler1 1/2oz Pyrat XO1/2 oz Patrón Citrónge1 1/2 oz Fresh sweet and sour1/2 oz simple syrup1/2 slice of peeled pineappleGinger Ale

Shake all ingredients (except g. ale) then add theginger ale and pour over ice. Garnish: Fresh mintsprig and crystallized ginger.

46 B I N 2 0 0 9 • I S S U E 6

Importer Henry Preiss agrees that the blend of marketing and

mixology result in helping rum win the popular vote, no matter where

the rum is from—as long as it is a quality product. “Mixologists are the

beginning and the end of the game,” Preiss states. “These highly tal-

ented people are creating some of the most exciting cocktails in years

and showing us all what a powerful ingredient Rum is in premium

cocktails.”

It is commonly agreed among members of the rum community that

mixologists can set trends through their cocktails and serving styles

while getting individual messages about different rums out to con-

sumers. Brian Labuda, Group Brand Manager at Luxco Spirited

Brands—parent company to the Admiral Nelson collection of Spiced

and Flavored Rums—believes it is prudent to assume a wait-and-see

mentality to forecasting future rum trends in the current economy.

Still, he is confident that mixologists as well as savvy off-premise retail-

ers, can pass along a combined message of quality and value that will

keep consumer interest healthy.

“With the economy still dominating the headlines, and the con-

sumer’s wallets, it is difficult to estimate the impact that this will have

on the industry in twelve weeks, let alone twelve months,” says Labuda.

“However, we feel our brands and especially our Admiral Nelson’s

Premium Spiced and Flavored Rums are positioned very well for the

consumers who are mindful of their budget but still want to indulge in

their favorite beverage of choice. We foresee a trend of more off-prem-

ise consumption among consumers who gather with friends and fami-

lies in their backyards and on patios and pool decks vs. spending a night

out on the town. Much like the travel industry has seen an increase in

stay-cations vs. the traditional traveling vacation, consumption of alco-

hol will likely trend in the same direction with the occasional treat or

reward of an evening out versus being the norm.”

Appleton’s, meanwhile, is tapping into the increasing public inter-

est in the environment, greener production method. The Jamaica dis-

tiller has integrated messages about improvements in their facilities

into their general marketing and web campaign. “The company has

made a significant investment in plant, equipment and training to

ensure that our operations in the Nassau Valley, as well our head office

in Kingston, are green,” announces the web site. “At Appleton we cur-

rently harvest both mechanically and manually, however the Company

is committed to moving to what is referred to in the industry as ‘Green

Cane Harvesting” by 2010. ‘Green Cane Harvesting’ is 100% mechan-

ical and, more importantly for the preservation of the environment,

does not involve burning the sugar cane fields prior to harvesting.”

It is clear that no matter what challenges come in the greater mar-

ketplace, rum producers are ready, thanks to their respect for the past,

assessment of the present and their eye on the future. �


P ISCO’S HOURTH E D I S T I N C T I V E MU S C AT G R A P E - B A S E D S P I R I T H A S G A I N E D M O M E N T U M O V E R T H E PA S T D E C A D E . NO W, I T I S P O I S E D T O TA K E A G R E AT E R R O L E O N B A R M E N U S T H R O U G H O U T AM E R I C A .

T hough Pisco, imported into the U.S. from Chile and Peru, is bestknown through the classic “Pisco

Sour” cocktail, the spirit itself is just starting to get a toe-hold in a market oc-cupied by a generation raised on rum and getting hip to cachaça. Ironically, in California, Pisco had a past life as an “it” spirit. Back in the 19th century, as ships from Chile and Peru found their wayinto San Francisco bay, different forms of Pisco got into the hands of adventurousresidents settling in to their new life in the new world.

In this century, one thing that has helped generate additional curiosityabout Pisco among spirits enthusiasts iscontroversy over which country ownsthe appelation of the spirit. The Peru-vian Embasssy issued its Defense of thePeruvian Denomination of Origin Pisco(PDF). Chilean Pisco producers fired back with a campaign to promote Pisco asa uniquely traditional Chilean beverage.The Peruvian producers then countered that move by obtaining a certification ofauthenticity from of the Instituto de De-fensa de la Competencia y la PropiedadIntelectual del Peru (Institute of Defenseof Competence and Copyrights of Peru).

Pisco was first produced in Peru during the time of the Spanish viceroyalty, which included territory that is now Chile. Add-ing to the fascinating debate is the fact that alcoholic content and sweetness vary be-tween the Pisco producing regions in each country. With the story behind Pisco grow-ing more interesting as time passes, spirits enthusiasts in the U.S., no doubt, are going to want to judge this for themselves, and could be encouraged to try different brands in order to make up their minds…or decide they can have more than one favorite.

Given Pisco’s storied history, some brands are marketing themselves as spir-its like absinthe have, billing it as a classic waiting to be rediscovered, embraced and interpreted by a new generation. Others are taking a more adventurous route, offering their Pisco as a spirit of mystery and adven-ture, carrying with it the allure of its country of origin.

The intrigue is keeping things interest-ing, enabling purveyors and importers of Pisco to navigate this new world. But more challenges lie ahead, as consumers are more diverse, better travelled and more curious than ever about tastes and experience origi-nating outside the U.S.’s shores.

For producers and their on- and off-

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48 B I N 2 0 0 9 • I S S U E 6

Tales of the Cocktail 2009Professional Series Wed, 8 Jul 20094:30 PM - 6:00 PM

“ The Fine Art of Banging Out the Drinks like a Maniac: Great Bars around the World and Throughout History that Make Great Cocktails Fast"

In this presentation and demonstration, Philip Duff and Dushan Zaric roll up their sleeves and show you how to double drinks-per-hour speed while maintaining top cocktail quality, hygiene, and guest attention.

Tales of the Cocktail 2009SeminarSun, 12 Jul 200912:30 PM - 2:00 PM "Liquid Nudging" Decor, drink menu design, body language, choice of words, inflection, misdirection and psychology can literally have any guest drinking anything you care to make them - and loving it!

Moderated by Philip Duff with Panelist Angus Winchester.

Join our Facebook fan page,search Gran Sierpe Pisco

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premise clients, the effort to getthe category firmly established is anadventure in itself. On the market,there are many paths one can take todiscover Pisco, including Gran Sier-pe, Don César Pisco, Capel, BarSol,Macchu Pisco, and the premium LaDiablada.

On the other side of the bar andretail shelves, meanwhile, consum-ers and beverage industry profession-als may turn to a mixologist and spe-cialized salespeople to serve as theirguides as they embark on this newflavor endeavor.

“Pisco is a great category formixologists,” explains Herbie Loebl of Ar-tisan Brands, who is bringing his three GranSierpe spirits into the mainstream with thesupport of bar chefs. “Every mixologist Ihave talked to is looking for spirits catego-ries that they can use as a foundation for fla-vorful well balanced drinks. They are boredwith vodka because they feel vodka has no real flavor. Pisco, on the other hand, has character. Gran Sierpe resembles the grapes they are made from.”

Loebl hopes that new consumer friendlypackage combined with the fact that hiscompany has been in the Pisco businesslonger than most U.S. importers will con-vince on- and off-premise clients that thereis a future for the new category. He has also brought an innovative Miami marketingcompany (The Workshop) into the mix to create a “360-degree marketing approach”to the brand that will include on-line socialnetworks, charity exposure, targeted groupevents, mixologist programs in addition totraditional on- and off-premise marketing.

“We understand the American con-sumer and realized our entire approach hadto be geared towards introducing them to the category and our brand,” says Loebl.“We’re starting with the idea that it is differ-ent, new, exotic and made from grapes! The main idea is that Pisco is a new spirit cate-gory for the U.S. that is largely untapped butcan be brought to life through education.Also, in the past few years there has beena renaissance of Peruvian gourmet cuisineall over the world including many high-endrestaurants offering Peruvian cuisine in theUS. This lends perfectly to broadening theeffect of all things Peruvian, hence Pisco.”

With training being an important part of the equation, Loebl’s reps educate bar and

restaurant staff by starting with the basics—it is a distilled spirit made from 100% of thefinest Peruvian grapes. Then they add thestory: Pisco dates back to the 1600’s, and has

roots in San Francisco dating back to the gold rush. Marketing to the trade also involves tying Pisco in with up-scale mixology and the fresh ingredi-ent-driven-cocktail programs. Pisco can be a differentiator for the mixolo-gist who wants to distinguish himself from his competition, especially if his clientele includes cocktail enthusiasts who cringe at the thought of a drink menu with nothing but vodka drinks on it.

At Preiss Imports, CEO Henry Preiss and his team are betting on the Don César line of Piscos (including Pisco Puro, Pisco Italia and Pisco Es-

pecial varieties) to provide both enthusiasts and traditional consumers with a primer to the Pisco category. Preiss is counting on the fact that the brand he’s carrying is also popu-lar in Peru, adding much needed authentic-ity to the marketing formula.

Don César Pisco Puro, considered an excellent base for Pisco Sours and other cocktails, is the result of careful distillation of newly fermented Quebranta grapes in copper stills. Don César Especial, consid-ered a sipping Pisco, undergoes an extensive mellowing process, while Don César Italia is made from the Italia grape harvested from Peru’s Magollo valley. Wonderful straight or on the rocks, it is distinguished with natural scent of white Italian Muscat.

“Every year the Sheraton Hotel in Lima, Peru, hosts a Pisco tasting, which Pisco Don César has won for eight consecutive years,” Preiss points out. “Pisco Don César is the only Pisco brand served there, as it is inmany other great restaurants of Peru. With that in mind, we hope that restaurants in the U.S. serving Peruvian dishes and progressive bars will take that into account when bring-ing a Pisco onto their bar menus.”

Though the category’s future is some-what unknown, where its going is still an open canvas with great potentials. Pur-veyors and importers, such as Henry Preiss and Herbie Loebl, feel that the category will grow as more beverage industry become more interested in servicing their customer with spirits defined by their distinctive flavor profile. Though Loebl feels that this catego-ry will remain a niche category, producers in general agree there is plenty of room for growth…and there’s history to be written on Pisco as it finds its way from South America to the U.S. and the rest of the world.

“PISCO IS A NEW SPIRITCATEGORY FOR THE U.S.

THAT IS LARGELY UNTAPPED BUT CAN BE BROUGHT TO

LIFE THROUGH EDUCATION. ”

- HERBIE LOEBLARTISAN BRANDS

The bar at Yerba Buena, New York City offers a number of cocktails with Pisco complementing a Latin-inspired menu

50 B I N 2 0 0 9 • I S S U E 6


Though the upper classes dismissed cachaça as a “workingman’s” spirit, it caught on over the centuries and became aninseparable part of Brazil’s culture, along with soccer, samba,

Carnival and the rain forest. Today, 30,000 producers of all sizes andstripes are testament to the spirit’s endurance and versatility, as it isconsumed both straight and as part of caipirinhas, bestidas and othercocktails that have helped bring Brazil’s carnival spirit—figurativelyand literally—to the rest of the world.

Even if the words Sagatiba, Leblon and Cabana are firmly estab-lished in every hip American bartender’s vocabulary, the party is justbeginning for cachaça outside of Brazil. Though the traditional mint-laden caipirinha and its fruity cousins are the most common vehiclesused to bring the newly trendy spirit to the palates of thousands, thebig three and other upstarts such as Ypioca, Rio Joe’s, Rio-D, Pitu andBoca Loca are working diligently with trade accounts and ad agenciesto translate this form of Brazilian into a universal vocabulary of cock-tails that will make Brazil’s spirit as international as Mexican Tequila,Scotch Whiskey and Kentucky Bourbon.

SPINNING SUGAR INTO GOLDCachaça is made from the juice of the first pressing of sugarcane, and sentthrough a filtration process to extract cane fragments and other matterprior to fermentation. At that time, a leavening agent, such as corn meal(fubá) or rice bran, is added and imparts its own distinctive flavor andaroma to give a cachaça the nuances that clearly distinguish it from rum.

With each producer’s unique approach to the cachaça recipe inplace, sugarcane juice is fermented from one to three days, then dis-tilled at a steady temperature of approximately 90º C, cooled and fil-tered to remove impurities. The first distillation batch is called cabe-ceira, which is potent and often used to make liqueurs. The second18% proof batch, cachaça boa, is what is often sent on to be bottledor aged. The third batch, called água fraca, at 12% proof, is oftenreturned to the next batch.

Better cachaças are aged in wood barrels, which include Europeanor American oak, Brazilian amburana, cedar, freijó, garapa, balsa, vin-hático or jequitibá. The aging process yields a spirit with a smootherflavor and most often a yellow or caramel color. The time thatcachaça is aged varies depending upon the barrel size, type of thewood, relative temperature, and humidity as well as the storage envi-ronment. Brazilian law stipulates that cachaça must be aged at leastone year to be labeled "aged"

FINDING ORDER AT THE CARNIVALAs cachaça is becoming an essential bar staple, its growing popularityhas inspired producers in the Caribbean and South America to developknock-off products. In response, the Brazilian government has assumedprotectionist measures to preserve cachaça’s foreign markets, similar toDOC and DOCG certifications for wine and spirits in Europe.

TheCachaçaCouncil is soliciting the TTB inWashington to gain statusfor cachaça as a category similar to cognac in France or tequila fromMexico.

CachaçaCrossover

To understand Brazil’s national spirit, you must understandwhere it comes from, where it’s been and where it’s heading.

Cachaça may be a relatively new spirits category, but since themid-1500s, it has been part of the Brazilian identity. Althoughpurveyors inside and outside of Brazil have placed it in our col-lective consciousness as a lifestyle spirit for connoisseur, travelerand foodie, it is more remarkable that the newest “old” sugarcane-based spirit started in the most humble setting: amongslaves working on Brazilian sugar plantations.

52 B I N 2 0 0 9 • I S S U E 6

Spirits industry watchdogs stress the importance of differentiatingcachaça from rum. However, when cachaça imports into the UnitedStates it is taxed as rum, and cachaça is sometimes referred to asBrazilian rum, confusion ensues. With that, constant education andclarification is necessary, as ambitious export programs from a varietyof companies, aim to increase cachaça exports to 40 million litersannually by end of the decade.

SAGITIBA: A DRIVING FORCEThough Brazilian iconography is inevitable when marketing cachaca,Marcelo Loureir, Sagatiba’s California Sales Manager, is focused onrecasting it as a spirit for the world. Even as two new products, SagatibaVelha Preciosa Cachaça and Sagatiba Velha EsplêndidaCachaça, hit shelves, Loureir stresses that more is being doneto present Sagatiba as an international spirit that just happensto be Brazilian--not a niche Brazilian product pushed withfamiliar Brazil imagery.

“We believe we are a premium white spirit that justhappens to be a cachaça,” insists Loureir, “We’re notdenying we are a Brazilian cachaça, but Sagatiba is somuch more than that. We are not just for caipirinhas, butalso a great foundation for any cocktail that may typical-ly use vodka or rum. If you look at the bottle, nothingabout it suggests its an ethnic beverage or has associationsto Carnival, but it does say there is a very high qualityproduct inside the bottle that every bartender and con-sumer will embrace for a variety of cocktails.”

Loureir also points out that Brazil is a truly globalizednation, with cultural influences coming from a mix ofEuropean, Japanese, African, Arab, Jews and indigenous peoples liv-ing together. He believes this metaphor of Brazil’s population mix willtranslate well into explaining how and why cachaça can be a part ofmixology’s global language. He also uses it as a sales tool to pushSagatiba beyond the confines of the cachaça category.

“We believe the category will grow, but our goal is to grow beyondthe category itself, even if the category grows in the US, it may be a

small category,” he says. “However, we are focused on being soversatile that we cut into sales of other spirits with bar-tenders. For this to happen, however, we need to maintainour educational efforts. We have promos everywhere, educa-tion with trade on premise and education with consumers offpremise.”

LITTLE BIG BRANDSThough consumers and even some trade accounts arejust getting to know Ypioca, it is actually the largest pro-ducer of cachaça in Brazil and produces several types,including Ypioca Crystal (clear, aged for 10 months inBrazilian freijo barrels), Ypioca Ouro (aged for two tothree years in balsamic barrels) and Ypioca Prata (clearcachaca suffused with aromas of tea leaves and ever-green). Priess Imports is becoming increasingly success-

ful in marketing it to its trade accounts thanks to a variety of offeringswith distinctively different flavors, as well as Cachaça 21.

“Preiss Imports’ cane spirits portfolio offers seemingly endlessopportunites to discover this spirit, especially as mixologists are get-ting into bebidas and caipirinhas made with Ypioca Cachaça andCachaça 21,” Henry Preiss, CEO, observes. “Whatever your passionand flavor profile, no other importer has a better selection of rumsthat mix into cocktails or rums or straight sipping than Preiss Importsbrings to market.”

CACHAÇA 101 IN 2009Insight into cachaça’s global future potential can be glimpsed througha visit to the Academia da Cachaça in Rio de Janeiro(www.academiadacachaça.com.br). Located in the Leblon neighbor-hood, the venue is unassuming at first glance. However, a closer lookat the shelves reveals it takes hundreds of cachaças from all points inBrazil to tell the story of how a humble sugar cane spirit evolved intoone of the country’s great gastronomic institutions.

Co-owner Leonardo Rangel and his partners, who have taken overbusiness operations of the spirits museum-cum-restaurant founded byEdméa Falcão, Renata Quinderé and Hélcio Santos (Rangel’s father)in 1983, continue the mission of introducing visitors from Brazil andabroad to cachaça. Even if guests are familiar with Sagatiba, Rangelstrongly encourages them to try as many of the better ones as possibleto appreciate what makes cachaça not just a single spirit, but a wholecategory. He also notes that when professionals from the U.S. bever-age and restaurant industries visit the Academia, they are there specif-ically to learn, even in the venue’s festive atmosphere.

“The big challenge for all cachaça producers from this point for-ward will be to learn how to invest their money in such a way to beable to grow their business beyond Brazil,” says Rangel. “It is impor-tant to remember the most recognizable brands outside Brazil, thoughmade here, came into the market big, with lots of money and investorsbehind them. I think what is happening now with cachaça interna-tionally is an extension of how it has caught on in Brazil. When theAcadamia de Cachaça first opened in the 80s, most (locals) regardedit as a secondary beverage and not a premium spirit. However, whatmakes the Academia unique is that it was the first place where peoplefrom outside Brazil could experience cachaça as a spirits category withits own complexities and qualities.”


Co-owner Leonardo Rangel of Academia da Cachaça in Rio de Janeiro

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INDUSTRY EVENT

SEVENTH HEAVENJack Daniels Studio No. 7 rocks Southern California beverage tradewith music and cocktails that rock.

On June 8, select Los Angeles beverage, bar and restaurant industry and trade had afront row seat to the final tour date of Studio No. 7, a Jack Daniels-sponsored eventshowcasing the perfect, enduring and all-American union of Jack Daniels and rockmusic.

Though the evening’s musical headliners, Wakey!Wakey! and Rogue Wave, tookcenter stage at the historic Sunset Strip rock club The Roxy, the neighboring, equally his-toric, and memorabilia-packed Rainbow hosted a bracing warm-up act--an educationaltasting session attended by 100 guests. As the evening progressed and Jack Danielscocktails flowed, 200 key target industry guests made their way over to the Roxy toenjoy live music as well as premium giveaways such as drumsticks, music download giftcards, stickers and other rocking memorabilia. One lucky attendee even walked awaywith her own collectable Jack Daniels custom autographed guitar.

“The Roxy was a great venue for this event because the venue is a historic musicestablishment in Hollywood,” noted Micah McLendon, brand rep heading the SouthernCalifornia marketing team. “The venue projected an ideal intimate ambiance for thisgroup, and offered a special VIP area where selected industry partners could get a greatview of the show! Guests entered The Roxy, red carpet style with a step and repeat out-side along Sunset Boulevard. Upstairs Jack Daniel’s banners were used to brand a sec-ond VIP area upstairs. This venue was decorated with subtle branding, which includedGobos and Jack Daniel’s bottles, which were lined up along the bar. It no doubt pro-vided attendees with a great time to enjoy music and fine Tennessee Whiskey.”

WINE & SPIRITS GUILD

COST SAVING MEASURESIN CHALLENGING TIMES

BOB SELBY: A lot of what we are do-ing about cost savings is basic, but you thinkabout it more in times like these. We are careful to make sure that we have the rightpeople working at the right times and wepay more attention to overtime pay. We also focus more on the heating and air condi-tioning. One example is our system of takingoutside air into our refrigeration units dur-ing the winter. It’s extremely efficient and it has saved us a lot of money.

EMMETT MALLOY: Three months ago we removed all our old florescent light-ing fixtures in two stores and replaced themwith new state-of-the-art energy savingfixtures. Prior to this,one of the store’s elec-tric bills ran at about$5,000 a month, nowit is down $900. It wasa big cost initially, but our payout will comein two years.

BURT NOTARIUS: We have taken a careful look at our promotional investments. For in-stance, we’ve eliminated newspaper advertising because it wasn’t effec-tive. We’ve turned that money from newspapersaround and we’ve putit into television. The overall effect is that business is still strong and we were able toreduce our advertising budget by 20%. We have also focused on reaching our custom-

ADVICE FOR RETAILERS FROM RETAILERS

(Standing)TOM DRULEY, Belmont Beverage

Stores, IndianaBRAD FEUERBACHER, Brown Derby

Stores, MissouriKEN LEWIS, The Party Source, Kentucky

(Seated)BURT NOTARIUS, Prime Wines

Corporation, New York BOB SELBY, Kappy’s Fine Wines

& Spirits, Massachusetts EMMETT MALLOY, SavWay Fine

Wines & Spirits, Illinois

T he Wine & Spirits Guild of America, representing independent and chain retailers across the country, has become an important forum for market leaders and business owners to exchange their ideas. Since its creation in 1948, the Guild has grown to represent more than 500 stores

which accumulate over $2 billion in sales annually. This year at its annual meeting, The Beverage Network, with the cooperation of the group’s current president, Bob Selby, had the opportunity to ask questions to a panel of members about some key issues concerning retailers today. Here are some highlights from the discussion:

In April, members of the Wine & Spirits Guild gathered for their annual meeting held in northern California.

56 B I N 2 0 0 9 • I S S U E 6

ers through emails. We created something called ‘Premium Wine Weekends’. Monday through Wednesday we email sale messages to our customers. Thursday, Friday and Sat-urday we send messages to people to comein and taste wine. By using different mediaoutlets and forms of advertising we havebeen able to reach different markets.

TOM DRULEY: We’ve changed most of our analogue surveillance camera systemsinto digital color. Not only does this ob-serve customer traffic and employee habits,it also tells us which displays are workingbetter. It has a merchandising aspect and has been a worthwhile expense.

BRAD FEUERBACHER: We have focused on our hours of operation. We are open 365 days a year from 8am to midnight.We thought we could adjust our operating hours and get the same volume of sales,so we changed to opening at 9am. Thiseliminated overtime entirely. In addition to the OT labor savings, the change alsohelped our customer service. Management,who previously left at 4pm, now leavesat 5pm, and are able to spend more timewith customers.

GIVING CUSTOMERSBETTER SERVICE ANDINCREASED ADDED VALUE

SELBY: Customer service is something westress a great deal in thesehard times. Our compe-tition is the club store and the grocery store, so customer service is the biggest advantage we have. We have people on

the floor and we insist that they engage thecustomers as much as possible because that’s simply something they don’t get at the larger stores.

NOTARIUS: In the end, your best ad-vertising is satisfied customers, because theybecome the advocates of your business. Sat-isfied customers are the ones that are goingto return, not because of a sale, but becausethey like the place and the experience thatthey have there. We have also seen the im-portance of an educated customer. Wine is a complicated subject and it can be in-

timidating. Often people ask us how they can get into wine. In response to that we are creating a wine appreciation center. We are going to offer free classes that will beled by our wine knowledgeable staff. This will bring them into a less intimidating en-vironment to learn about wine, and give usan opportunity to get to know our custom-ers and what they are drinking.

KEN LEWIS: About six or eight months ago we saw that there was going to be adownturn coming. We’re fortunate to have a large number of long-term career people

on our staff and we felt comfortable sit-ting them down andexplaining our situa-tion. By talking with them we were able to calm their fearsand create a more relaxed and positive

workplace, which in turn has led to better customer service.

SHIFTING CUSTOMER BUYING TRENDS

NOTARIUS: It’s extremely important to listen to your customers and to hear their concerns. What we’re seeing is individuals looking for value. That may mean they are looking for something under $10, $20 or $30. Those items need to become a priority no matter what their price. It’s important to reposition your store so that you’re focusing on the products that really over-deliver for the price.

MALLOY: I think everyone is impacted by this economic problem. It’s like a cus-tomer’s conscience bothers him if he spends money like he used to, so he trades down.He is still spending about the same amount,but instead of buying a $30 Cabernet hegoes down to a $25 bottle. You also have more and more women doing the buying.We have put energy into feminizing our stores and adding touches that make themmore comfortable.

LEWIS: There is a trend in the U.S. right now toward localization and recon-necting with local retailers and local food products. That works for retailers

because we are in tune with our customers and we work closely with them. They are also interested in the products that are localized, and those are the products we are carrying.

SUPPLIERS HELPINGRETAILERS BUILD BRANDS

FEUERBACHER: I enjoy when suppliers ask questions about our business, and when they launch new products. They need to know how their products can fit in and then what might need to go out to makeroom for it. We just don’t have room for all the new brands and fla-vors that come out each year and obviously certain brands are more important to sup-pliers than others.

LEWIS: There needs to be points of dif-ferentiation. Why is this product beneficial? Why does it represent your consumer? How does it represent value?

DRULEY: Too many people are coming in and giving us num-bers as to how their products are selling nationally, but not lo-cally. The smart ones come in and show us how they are selling where we are. Our li-quor buyer says that he likes to choose one or two products in Janu-ary and really go after it all year long. This focus has proven to be a huge success.

SELBY: I think the wholesalers and the suppliers need to realize how important the independent retailer is to their whole business and future. The chain and club stores will take the top 10 SKUs and they’ll give them away. When it comes to introducing new products and building brands they have to come to us. It’s im-portant for them that we exist and con-tinue successfully, because if we don’t and there are only the chains left, then they are not going to be able keep the same level of business.

58 B I N 2 0 0 9 • I S S U E 6

Now available at wateringholes everywhere.

THEREDSTAG.COMLearn more at

A DIFFERENT

BREEDOF BOURBON.

60 B I N 2 0 0 9 • I S S U E 6

BEING PROACTIVE IS THE KEY TO SUCCESSHello! I'm Lauren Tyson. After 29 years with the California Alcoholic Beverage Control(ABC), I'm here to help you sell alcohol safely, responsibly and legally.

In this column, I'll cover responsible beverage service: Written alcohol policies, train-ing your staff and good community relations.

Here's a sad case, and how you can prevent this from happening in your business.Recently, a male patron died after another male patron punched him in the head in a

Redding nightclub. Several readers of the online news story blamed everyone from the“cave men” in Redding (it could have been a cave man from anywhere) to the ABC andlocal police.

These things happen all too often—even in places where you think they never could!Liquor licensees have a legal duty to run a lawful business. This includes spotting and

preventing drunks, preventing violence and so on. As you well know, crimes, if proven, canresult in liquor license sanctions from a warning to license revocation.

Experts will tell you it's always better to prevent problems before they happen. Beproactive. Here's how:

• Have written alcohol policies. These provide your staff members with your expecta-tions and the rules. Policies cover things like drink discounts, drunk patrons, crowdcontrol and more. They may also help in your defense if you are accused or sued.• Make sure all staff are trained. Laws are always changing, and training keeps staff upto date. You can find a list of ABC-certified training programs on the ABC's websiteat www.abc.ca.gov.• Get to know your local ABC and law enforcement. They can give you sensibleadvice on how to stay within the law and tips on crime prevention.No matter what type of business you own, being proactive is the key to success.

Lauren C. Tyson is a former peace officer with the California Alcoholic BeverageControl and a liquor liability consultant. For more information, please visitwww.theliquorlicenseadvisor.com or call (951) 226-7845.

TERRACYCLE’S WORK WITH NOMACORC AND SPEC’STerraCycle and Nomacorc are proud to announce that Spec's Wines, Spirits and FinerFoods, a leading independent liquor retailer in South Texas, has become the first retail par-ticipant in the TerraCycle program that collects post-consumer-use wine closures to beupcycled into unique consumer products, available in Spec's stores and onlinevia TerraCycle. Spec's will donate 2 cents to the Young Texans Against Cancer organiza-tion for each closure collected. As the Cork Brigade expands, TerraCycle looks forward toparticipation from wine enthusiasts, restaurants, and retailers across the U.S.

Nomacorc is the worldwide leader in alternative wine closures. TerraCycle puts asmuch emphasis on its social and environmental impact as it does its profits. Sign up for ourfree fundraising collection programs - we pay you for packaging such as drink pouches,yogurt cups and more. For more info, visit www.TerraCycle.net; our upcycled products areavailable at www.shoponlygreen.com.

INDUSTRY INSIGHT

BY LAUREN C. TYSON, LIQUOR LIABILITY CONSULTANTWWW.THELIQUORLICENSEADVISOR.COM

BEVERAGE INDUSTRY NEWS

BIN ONLINEwww.binonline.net

Go online and discover awealth of resources at yourfingertips.

• CURRENT ISSUE• NEW PRODUCTS• WILFRED WONG’S MONTHLYWINE SELECTIONS

• BIN PRODUCT OF THE WEEK• BEVSOLUTIONS• ONLINE GUIDE TO NATIONALBEVERAGE COMPANIESSUPPLIERS/IMPORTERS/MARKETERS/WHOLESALERS

• CLASSIFIEDS• INDUSTRY JOB POSTINGS• SPECIAL AD RATES AVAILABLEONLINE

www.binonline.net

Pinnacle Introduces 2 NewFlavors – the Next Phenomenon

White Rock Distilleries is excited to launchPinnacle Cherry Lemonade and Tropical Punch.Cherry Lemonade is the perfect marriage ofjuicy ripe cherries and tart lemons. TropicalPunch is a mouth-watering combination of trop-ical flavors: pineapple, pomegranate, papaya,orange, and passion fruit. Both are scheduledto hit shelves in early Fall.

For more information on Pinnacle Vodka,please contact White Rock Distilleries (800) 287-6462, or log onto www.PinnacleVodka.com orwww.WhiteRockDistilleries.com.

The quintessential summer weekend is justaround the corner, and while people makingtheir Independence Day plans, they’ll also belooking for delicious food and drink ideas toimpress guests and keep the party going. Aunique, refreshing cocktail like BombaySappire’s Red, White & Sapphire is a greatway to entertain guests and cool off in the hotsummer sun. This festive twist on the classicCollins cocktail is the perfect addition to any4th of July celebration, be it a backyard bar-beque with family and friends or a big beachhouse soirée underneath the fireworks.

RED WHITE AND SAPPHIRE1 ½ oz. BOMBAY SAPPHIRE® Gin1 oz. fresh lemon juice¾ oz. simple syrup3-4 Fresh Raspberries3 oz. club sodaGarnish: Lemon Twist & a fresh RaspberryCollins GlassMuddle Raspberries with simple syrup and lemonjuice. Add ice, Bombay Sapphire and stir well.Add more ice and top with club soda.

MARKETING NEWSCelebrate the 4th of July the Bombay way withThe Red, White and Sapphire cocktail!

Frida’s in Glendale takes the heart and soul of the original Beverly Hillslocation (an intimate Mexican café and bar with a classy bistroapproach) and rolls it out into a lovely south-of-the-border getaway inthe heart of The Americana shopping and lifestyle complex. How din-ers and bar patrons enjoy the literal expansion of the concept is onlylimited by their imaginations and appetites. This also holds true forFrida’s other restaurants in San Diego and Brentwood.

While freshness, selection and attention to detail power the kitchensat all Frida’s locations, the standards are just as high at the bar. Theshelves are stocked with some of the best top shelf tequilas as well asvodkas, rums and other essentials needed for quenching margaritasand cocktails that compliment the various spicy, smoky salsas, crispchips and flavorful main dishes and appetizers. And just as the salsascomplete the food offerings, Finest Call mixers—such as the Mango,Pina Colada and Strawberry flavors—complete the bar and make thejob of Frida’s bartenders all the more exciting.

“Just as we have a dish for every kind of guest, we’ve got a cock-tail that suits them as well,” says Patricc, one of the bartenders wecaught up with on a busy Thursday afternoon during happy hour. “It’simportant to always have a full bottle of Finest Call handy because younever know who will come in, or how many people will be coming in.Frida’s is so popular because we’ve got something for everybody, soit’s always a challenge to keep the flow going. This is where FinestCall really helps the bartender. You can make many things fast, buteverything’s going to come out just the way your customers like it…justlike the food here.”

Frida’s at the American At Brand is located at 750 Americana WayGlendale, CA 91210. For more information call (818) 551-1666.

POUR OF THE MONTH

POUR OF THE MONTHBartender, Patricc, shows off the Finest Call products. FRIDA

Mexican Cuisine

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july 09

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