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KAI VODKAA SPIRIT-UALAWAKENINGKORUS WINES Taking The Country By Storm!

COINTREAUCan a spirit be both timeless and trendy?

CASTLE BRANDSPortfolio Reigns Supreme

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Written by Elyse Glickman

A SPIRIT-UAAWAKENINGRARE YELLOW BLOSSOM RICE, SIX CENTURIES OF TRADITION

A HIGHLY SPECIFIC MARKETING PLAN AND ENTHUSIASTIC TEAM P

BRING ONE OF THE MOST COMPELLING VODKAS ON THE MARKET T

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What will make this brand get rooted and growinto something of value for our customers is our

clearly defining the KAI story and positioning itso people can understand how special this vodkais, says KAI founder and managing directorMarcus Bender. There are so many Europeanvodkas circulating with similar claims and allthese messages about their wheat, traditions andtechniques. However, we actually have some-thing truly special that a variety of demographicscan appreciate, something nobody else is doingright now.

Indeed, many things do set KAI Vodka andKAI Lychee Vodka apart. Both varieties can bepositioned either as a sexy, exotic cocktail founda-tion or as cocktails in a bottle as they are smoothand sophisticated enough to enjoy on their own.There is a built in Asian mystique, as well asaward-winning package design that is in tunewith a cross-generational demand for lifestyle-driven products. Bender and his team are alsousing high-tech methods such as an updatedweb site and viral marketing (via Facebookand other sites) to reach a wide cross sec-tion of audiences. Although it is still verynew on the market, KAIs industry acco-lades have bolstered the brand into theestablishment. The flavor and packaginghave garnered awards at the BeverageTasting Institute and the San FranciscoInternational Spirits Competitionno smallfeat as KAI was launched just a year ago.

FOUND IN TRANSLATIONAs the first ultra premium to originate inVietnam, KAI has translated beautifullyto the American market, thanks to itsbottle and exotic origins. It also helpsthat Asian-Fusion cuisine is here to stay,

especially in California. With the sophisticatedAmerican palate adapted to Asian spices and fla-

vors, these adventurous consumers and the on-and off-premise accounts that cater to themdemand something that will challenge consumertaste buds and mixologist creativity. KAIachieves all of this through its distinctive, refinedtaste derived from the distillation of rare Yellow-Blossom Rice. It is, according to Bender, a perfectfit for this market whether enjoyed in its originalform or Lychee, on its own or in a cocktail.

Adding to KAIs cache is the fact that thisspecial and rare form of rice is grown in small vil-lages near the Cam Giang district, along NorthVietnams Red River Delta. Because of its delicatenature, it is handcrafted in small batches using

techniques that have been handed down formore than six centuries. The process of fer-mentation and distillation used to create KAIVodka renders a distinctive-tasting vodka thatpreserves the natural sweetness of the Yellow-

Blossom Rice. Furthermore, it takes almost14 pounds of the precious grain to makefour liters of KAI Vodka. Although vodkaenthusiasts prize what is inside a bottle,the sensual, visual and tactically appealingbottle adds to KAIs appeal. As a whole,KAI translates into what may be the per-fect vodka for a generation of adventurousconsumers.

The word kai has positive meaningthroughout Asia, notes Bender, from hisHonolulu headquarters, The word meanspleasure in Japan and happy gatheringin China. In fact the word has multiplemeanings even as one moves through dif-ferent cultures of Asia. Its a word thatunifies and brings people together, justas a good spirit would. The feedback

One look and taste, even in a crowded field, and it

is evident KAI Vodka is clearly a different kind

vodka experience. Certainly savvy distributors anretailers do. And as for the consumer looking for something ne

Vietnam is closer than they could have ever imagined.

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from consumers is that they love its smooth,unique taste and the fashionable bottle thatcaptures the east-meets-west spirit.

In the wake of KAIs launch last sum-mer, the brand has beaten the odds by rap-idly establishing a niche in a very crowdedlandscape of vodkas, where many me toovodkas tapping into familiar things likeEuropean roots and traditional ingredientsjostle for position. While consumer inter-est in new premium unique products isstrong, KAI has won discerning audiencesover simply by being different, in its taste,award-winning packaging and the fact thatit comes from Asia. However, Bender rec-ognizes there are still challenges to come,even with effective guerilla marketingexpanding beyond California into majormarkets throughout the US and the World.

RICE DREAMSMy hopes and expectations for the comingyear is to expand our footprint into key mar-kets such as Chicago, New York, Florida,

Miami, Atlanta and other large vodka mar-

kets, notes Bender. That said, California isstill high priority for us as we have earnedour accounts and want to continue our workwith those who have embraced us and willhelp us get traction because they understandthe perspective of our brand. California is acountry and universe onto itself, it is theideal starting point for a buzz that will findits way into other states because there are somany distinctive markets here.

Early accounts that have helped thebrand gain national attention include a mixof trendy Southern California hangouts(The Abbey, Koi, Katana, Crustacean and

Nics Martini Bar), sophisticated NorthernCalifornia spots with foodie audiences (LeColonial, Three Seasons, I-Tapa) and popu-lar, crowd-pleasing restaurant groups thatcross a lot of different demographics (Roys,P.F. Changs). This, in part, has paved theway for KAI to advance into Las Vegas, viadestination accounts such as Red Square,David Burkes, China Grill and TheBellagio Hotels bars and restaurants.

Las Vegas is like Hawaii in many ways,

Bender reflects. Both places are small insize but big in terms of the impact our prod-uct can make on new and old audiences forKAI. While restaurants in Las Vegas arewhere culinary and mixology trends takeshape for the entire country, we also havethe potential to reach consumers fromaround America and the world who cometo Vegas to experience the newest and lat-est things. Vegas is a place of discovery, andbeing there has already helped us in termsof validating us in other markets. After all,consumers are key to the kingdom, andwith 30 million tourists coming through,there are so many opportunities for thiskind of discovery.

BevMos California and Arizona stores,

meanwhile, are also using their uniqueniche in spirits retail to bring in adventur-ous consumers. Thanks to KAIs sales team,in tandem with a variety of marketingstrategies (ranging from word of mouth toviral marketing that takes shape in theform of blogs, networking web sites andinternet magazines), Bender is confidentthat this will help the marketing aspects atthe consumer level for the brand to take ona life of its own. On-premise events inHawaii, L.A. and elsewhere, are also takingadvantage of celebrity-driven events andhigh-visibility promotions to drive thebrand. At one recent even in Los Angeles,for example, Tobey McGuire (of theSpiderman movies) had the chance to sam-ple KAI at a high profile gallery openingwith 400 of his closest friends, while actress

Jenny McCarthys autism fundraiser was co-hosted by KAI and David Beckham wasrecently spotted in at the W Hotel inHonolulu discovering the vodka with theassistance of KAI spokesmodels.

KAI founder and managing directorMarcus Bender in rice fields nearthe Cam Giang district, along North Vietnams Red River Delta

My hopes and expectations for the coming year is to expandour footprint into key markets such as Chicago, New York,Florida, Miami, Atlanta and other large vodka markets...

Marcus Bender,KAI founder and managing director

David Beckham witKAI spokesmodelW Hotel, Honolul

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Why just do a vodka when you can create somethingunique flavor profile that people will be talking abouordering again and again?

David NepoveMixologist, Southern Wine & Spirits

HEAVENLY HARVESTBEGETS DIVINE DISCOVERYThe starting point for KAI Vodka and KAILychee vodka is fermentation with a tradi-tional combination of 30 herbs, spices andyeast that imparts this distinctive vodkasunusual character. However, rare and exot-

ic rice is not KAIs only sweet and seductivecomponent. While other vodkas pridethemselves on essentially being flavorless,the delicate flavors in the regular andlychee variety add a fresh dimension to thevodka drinking experience, whether it isbeing enjoyed straight or as part of an inno-vative cocktail.

According to Bender, the overwhelm-ingly positive early responses to KAIVodkas in Hawaii and California was a sureindication the brand would find success inother markets, including Nevada andArizona. Our real success in the earlystages has been based on getting people totaste it in our off- and on-premise promo-tions and samplings. While we enabledconsumers to discover it in accounts likeBevMo (and are still doing so right now),weve also gotten the buzz going with staff tastings at our bar and restaurant accounts.When the staff has expressed their enjoy-ment, it has prompted management to takethat leap of faith in bringing KAI to theirbar and being a part of our themed promo-

tions. The bottom line, however, is thatpeople can taste the difference, and wevegotten converts right away.

Additionally, Bender says emphaticallythat he is a big believer in staying small insome ways to gain bigger traction, especial-ly as specialness for many audiencesmeans something that steers away frombecoming too big and corporate. Even withhis drive to get KAI into bars acrossAmerica, he is also intent on preventingKAI from becoming a SKU in a portfolio.

While KAI brand ambassadors are trained

to bring a personal touch to the marketingof the vodkas, they are spreading a very spe-cific message about how this vodka canappeal to so many different people. Whilethis vodka is an indulgence, it has itshealthy sidethe fact it is made from ricealso makes it gluten free, which introducesyet another audience into the mix andanother great reason to be on the market.As accounts like PF Changs offer gluten-free menus, KAI contributes to that health-conscious factor.

PARADOX FOUNDA study in KAIs quick rise is also, verypointedly, a study in contrasts. While thecreative message of the print ads and publicrelations efforts is that pleasure is the ulti-mate goal, the products positioning is thatKAI in itself is a bottle of contradictions.

For starters, the notion of Asianvodka is a paradox, as many people stillassociate the spirit with Europe. Vodka isan ordinary bar staple since it has almost noflavor or odor, but KAI vodka is extraordi-nary as it has a very specific taste, aromaand feel. Vodka popular for its simplicity,but KAI redefines the vodka spirit as bothan exotic and sensory luxury. It is exoticbecause of its origin, yet very accessible,because KAIs team is making sure that thismessage gets through in Hawaii, Arizona,

California, Nevada and, later, throughoutthe States. In the end, the interesting com-parisons not only help introduce KAI to awidening audience, but also change peo-ples notions of what vodka is about andhow it can be enjoyed.

This is a fitting way to do businesssince in the market, you have two contrast-ing audiencesthe people who want some-thing new and the others who know whatthey like and are attached to it, saysBender. Once you understand that, youvegot what it takes to tap into the diverse psy-

THE RICE WAY TO BE CREATIVEDavid Nepove, a mixologist at SouthernWine & Spirits in NoCal, like the otherteam members, has been so inspired bythe uniqueness of KAI Lychee Vodka that hehas set forth to invent new cocktails that willadd to KAIs pre-existing appeal amongconsumers and trade.

With an industry flooded with sameold same old, it is so great to be workingwith an original flavor that works so wellwith many cocktails, Nepove muses.Naturally, it is a perfect companion forAsian and Pacific Rim foods. As it is a fla-vor many sophisticated people cannot waitto get their hands on, I also must say that itis also a great fit for restaurants of all kinds,especially those with innovative bar menus.

Why just do a vodka when you can createsomething with a unique flavor profile thatpeople will be talking about and orderingagain and again?

KAI-AGRA1.5 oz Kai Vodka3.5 oz (energy drink)1/4 oz Blue CuacaoShake ingredients in aBoston shaker and pourinto a Highball Glass.

KAI LYCHEE MARTINI3 oz. Kai Lychee VodkaShake and strain into a martiniglass. Garnish with freshLychee Fruit.

KAI-TINI3 oz. KAI Vodka

Shake and Strain.Garnish with an olive.

KAI ASIAN DELICACY 1/2 oz. Simple Syrup*3 Thai Basil Leaves1 Lemon wedge (1/8 lemon)Muddle Simple Syrup, Basil,and Lemon Wedge

1 1/2 oz. KAI Lychee Vodka1/2 oz. Green Tea Liqueur

Shake and strain into a martiniglass. Garnish with fresh Basilleaf and a Lemon Twist.

MISS SAIGON MARTINI1 1/2 oz. KAI Lychee Vodka1/4 oz. Triple Sec1 lime wedge squeezed3/4 oz. Cranberry Juice

Shake and Strain into a MartiniGlass. Float with 1 oz.Champagne or Sparkling Sake.Garnish with a freshlime wedge.

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ches of different ages and demos and beingsmarter of how we go after the business. If you dont take that approach, all you aredoing is marketing in a way that is similar totaking a shotgun and shooting at randomtargets. Our approach with the paradox isabout bringing consumer interest to the nextlevel by making people understand what sep-arates us from the competition.

FROM THE PLANTING FIELDSTO THE PLAYING FIELDEven with KAI being just a year old, Benderand his multi-faceted team of industry veter-ans and mixology innovators felt there wasno better time to reposition the brand usinga unique formula of interactive marketingtechnology and carefully selected peoplewho understood the uniqueness and paradoxmessages of KAI so thoroughly they couldbring it to a wide variety of audiences.

Dan Lyons, a 20-year beverage industryveteran from Southern Wine & Spiritsrecently came over to assume the position of Vice President of the Western Region. DanaBlack, meanwhile, is the dynamic forcebehind the sales and marketing efforts thathave made such a huge impact, while JamesStevens (a 35-year veteran who made aname for himself in beverages via bringingPerrier to the US in the 1970s, a long stintat Coca-Cola and his highly successful J. M.

Stevens & Associates, Inc. consulting firm)is exhibiting leadership as the companyChairman who is keeping the sales, market-ing and promotional arms of KAI on track.

California sales reps Gina Johnston,Dean DeAngelis, Jessica DoVan and LasVegas Brand Ambassador Matt Kurzrok,meanwhile, are setting a great example forthe rest of the US market with their focusedefforts to put KAI in the hands of tradeclients and consumers. Richard Turner, who

had a successful career as the director of Allied-Domecq, another member of theBoard of Directors, is based in the UK andhas been an important in helping KAIdefine its place in the world market, espe-cially in establishing relationships with dis-tributors and other key clients. SouthernWine & Spirits, meanwhile, has providedexceptional support for KAI in the Hawaii,Arizona, Nevada and California markets.

Kai Vodka is the kind of product thatexcites me, says Stevens enthusiastically. Ithas a real point of difference and a reason forbeing in the crowded landscape of tradition-al vodkas. Kai has several firsts that allowyou (as a retailer or restaurant) to stake outa new segment and call it your own. KaiVodka is new news.

On the creative side of things, SanFranciscos Gershoni Creative Agency isworking closely with Bender and his team torebrand KAI completely and communicatethe revised and refreshed vision through arich, full-scale brand re-launch. This re-launch involves a more thorough and engag-ing marketing approach, which includes amore polished internet/web presence. Theoverall focus thoroughly covers the brandsattributes, benefits and mystique in a freshnew way.

We felt now was a good time to rethinkthe way we are presenting KAIs attributes,

benefits and uniqueness, says Bender. Wewant to play up the fact that KAI is sensoryand can take diverse audiences to a newplace in terms of a flavor experience KAImood, since all the customers were lookingat have certain types of education, valuesand desire to engage in cosmopolitan activ-ities. The web is just one of the many waysthe KAI message will be reaching ourdiverse and adventurous consumer andtrade audiences. I

LYCHEENOT JUSFLAVOR OF THE MIn a world where there are as manvored vodkas as there are personawhat makes the KAI personality unthat the brand offers only one fllychee. Although Bender had expeed with new flavor concepts, he ully decided to stick with one definingso marketing efforts could run deepthan become so broad that some proare cannibalized in favor of otherKAI is the only distiller producing aflavor, that distinction adds extra wthe marketing teams efforts to empthe brands specialness over all. Anthere is another engaging paradox found.KAIs one flavor of vodk

multifaceted nose and palate with nspice, rose, orange blossoms and hoKAI Lychee Vodka is very muc

discovery, while both formats arerevealing a secret to conoisseurs thexisted for over six centuries in VieRuou--which is Vietnamese Rice WRice Vodka, says Bender. Rice isQueen in Asia. We want to let audieknow in a variety of demographicwhat they will experience, especialthe Lychee, is that whats simple cabe exceptional. Furthermore, beCalifornia is a melting pot of manyrestaurants, bars and clubs, we bCalifornians will embrace the uniqof KAI Lychee Vodka in 2008.

By keeping the focus just on oneand the original, Bender believes thless of a risk of distracting from theintended message or becomingdependent on gimmicks. In other if a product is special enough that itnt need a crayon box of flavors toitself, that kind of confidence says Left to Right: Richard Turner - Director, Dana Black - VP Sales & Marketing

Marcus Bender - Founder, Managing Director, James Stevens - Chairman