Wine and Spirits Daily had an interview with the global head honcho of Cutty sark, which is owned by The Edrington Group (Macallan, Famous Grouse, others). In the interview and a previous story, he talks of the turnaround of the brand. In fact, he predicts 5% or higher growth over the next five to ten years.

Is this hype or real?

Let’s take a close look. After all, this is a brand that has had 25 years of decline from 2 million cases in the 1950s and 60s to less than 150,000 recently.

What the brand has going for it is the recent movement to Remy Cointreau and their knowledge and focus on scotch. They should be able to push the brand as part of their scotch portfolio and have a vested interest in keeping the Edrington people happy. So check the box on leverage and clout.

A number of side benefits also come with the move to Remy. As a new brand with a full, strong portfolio behind them, they will fill distribution gaps and move into important brand building accounts.

But, wait a minute, isn’t it a bit early to declare victory on the path to a turnaround? From the data I saw, for the four-week’s performance to Feb 24, the brand grew in SymphonyIRI data by 3.2% compared to a -5% for the year.

1967 ad

What about the consumer? What are the motivations that Cutty Sark provides to get a call for it? WSD suggest that its occasional presence on Mad Men, and the retro drinking influence may be helping. That could be, but is it enough?

As I read the article, I became more and more puzzled by the empty pronouncements of success just over the horizon. I can’t figure out the basis on which young consumers are discovering Cutty Sark. Is there a cocktail or signature drink that’s driving the brand? We’re told that Cutty “was created to be easy-drinking, easy-mixing and not particularly challenging.” So is water.

Here’s my favorite quote and an example of world-class marketing BS – “For me, I’m not looking to take business {from} the Scotch category, I’m already seeing us take business in bars from the Irish category.” Really? Cutty Sark is taking business from brands like Jameson that is among the fastest growing brands in the country?

Cutty Sark is an excellent brand with an interesting history. Legend has it that it was Cutty Sark that helped to create the expression the Real McCoy. The story goes back to prohibition and I found it here.

“One man who regularly sailed between Nassau and Rum Row was Captain William McCoy, of Scots origin and living in Florida, who began running liquor in 1921 using a schooner named Arethusa. By this time suppliers and distillers were often meeting the immense consumer demand with very poor quality liquor, and McCoy decided to make his reputation by supplying high quality products, chiefly Scotch whisky. This strategy worked well, to the considerable financial benefit of McCoy, whose name entered the English language as a result of the reputation he acquired.”

“In particular, McCoy ran large quantities of Cutty Sark…”

So there you have it. A brand built on authenticity and known as the Real McCoy
 is the subject of hype and marketing BS today.

Hey, Mr. Global Head Honcho of Cutty Sark: you have a brand with a great story. Why not try to leverage that provenance instead of making empty claims?

Wine and Spirits Daily had two announcements about new spirits product recently. One makes sense and the other, well, you decide.

Good Idea

The flavored whiskey category has been on fire with brands like Wild Turkey American Honey, Jack Daniel’s Tennessee Honey, and Jim Beam Red Stag among others. Now the folks from Dewar’s Scotch (owned by Bacardi) are entering the flavored whisk(e)y category with Highlander Honey, a scotch infused with honey.

Imagine, they have the audacity to try to break down the stuffiness and out-of-date sacred walls of the blended scotch category. Never mind that blended scotch growth has been declining to flat in the past decade while other whiskies (including malts) have been growing. It’s not about adapting to changing tastes, it’s about a stiff upper lip refusing to swallow change.

Check this out. The Diageo head of whisky outreach (huh? I think that’s a way of saying, ‘can I buy you a drink?’), was quoted as saying Scotch has too much “integrity” and “authenticity” to get into flavors. Diageo and integrity in the same sentence? My word! Also, the Scotch Whiskey Association is not very happy about it. Better to go down with the ship, eh, what?

Hey, it’s a good idea for the reasons I shared with Wine and Spirits Daily,

“It’s a terrific idea and well worth trying,” long-time industry exec Arthur Shapiro told WSD. ” First, the blended scotch market is declining and this could be a shot in the arm. Second, the flavored whiskey (US) brands have ‘greased the skids’ so consumer acceptance would be easier than it might have been before these brands came on the market. Third, it adds contemporariness to the scotch area and removes the stuffiness. Fourth, probably makes for a good mixed drink. Finally, I like the ‘seriousness’ of scotch and the fun of a flavored scotch product.”

Put that in your copper still and cook it.

You gotta be kidding me

Pernod Ricard, who until recently earned my respect for terrific innovations and new products, has launched what seems to be an April Fool’s joke.

They are introducing a line of new products under the Hiram Walker name called Mama Walker’s breakfast liqueurs. Apparently it’s intended to “tap into the comfort food, sweet and savory flavor combinations” trend (or is it fad?) not to mention the confectionary/cake vodka flavors. This breakfast of champions is available in Maple Bacon, Blueberry Pancake and Glazed Donut.

Come on folks, are you serious? Next thing you’re going to tell us is that they hardly taste artificial.

Can’t you just see the ad campaign?

“A bit hung over from a hard night of drinking? Looking for something to smooth out the rough edges? Forget about the all night diner and the bacon, eggs and pancake special. Try some of Mama Walker’s breakfast liqueurs… we’ll perk you right up with our original comfort booze. Just remember… your Mama knows best.”

Or:

“Tired of the same old breakfast? Cereal, eggs or fruit can be soooo boring… Start you day off right with Mama Walker’s breakfast liqueurs. What a great way to face the stress of what awaits you. Boss on your back? Kids on your nerves? Mama can help…Comes with or without a brown paper bag… But, remember, don’t eat breakfast and drive!”

Any thoughts on either product?

Ray Foley is many things – a bartender, writer and publisher, drink creator, storyteller, entrepreneur, ex-marine – but don’t ever refer to him as a mixologist.

Anyone who has been in the booze business knows that it’s the men and women behind the bar who build brands, invent drinks and are the backbone of the business. Let’s face it; it wasn’t a suit that created the Cosmo or any other top drink, it was a barkeep.

I first met Ray back in the day at Seagram when everyone talked about the fuzzy navel and credited him with coming up with the idea. More importantly, of all the publishers and sales reps who called on me, he was among the very few who understood the business and was a key to the important on-premise trade.

In the intervening years, he has continued to reach over 100,000 bartenders in Bartender Magazine and hundreds of thousands on Bartender.com. Along with his wife Jaclyn, they’ve been running the magazine for over 30 years. Together they’ve created the Bartender Hall of Fame and run a foundation to provide scholarships for bartenders and their children.

Ray has written dozens of books, including Bartending for Dummies. A perfect title for an outspoken, take-no-prisoners, ex-Marine who hates BS and some of the changes he sees in the bartender profession. But, I’ll let you in on a secret – deep down he’s a kind and gentle man who speaks his mind but carries no malice.

Let’s take the phrase ‘mixologist’ for instance. Here’s a quote I found in New Jersey (where the Foleys reside) Magazine, “A mixologist is a person who really doesn’t know how to tend bar but has the money to get a PR agent.” He told me pretty much the same thing when I interviewed him for this posting but went on to say that he really has no argument with the phrase and much respect for the serious mixologists. But, it’s those who are all ego and no skill, that get his Irish up. So if you call yourself “The Bar Guru” or “Mr. Mojito” stay out of his way.

Ray comes from the school where a good bartender is partly a person who serves drinks and mainly a person who does so with personality and customer service.

When I was running new products and we needed a signature or other drink to make the brand take hold, I learned two important things from Ray. The first was to let the drink idea come organically from behind the bar – the bartender or (forgive me, Ray) the mixologist. In other words, let the professionals do it and keep the marketing suits out of the kitchen.

The second was, in order for a drink recipe to take hold, keep it simple. According to Ray, “Creating a drink with avocado juice and lemongrass doesn’t impress me…how many bars have those ingredients?”

Of all the thousands of people who read Booze Business, I generally think about Ray when I do a posting. He never hesitates to let me know what he thinks and generally, the emails from Ray have been helpful and positive.

Except when I use the dreaded ‘mixologist’ word.

Maker’s Mark is an iconic brand with fiercely loyal consumers and, thanks to social media, they’re not afraid to speak up (make that holler) when the company decided to mess with the brand.

Last week, the company announced that, to “meet demand” they would lower the alcohol content. They explained it to Wine and Spirits Daily by saying that the brand is encountering shortages and among the solutions (including lowering the age, raising the price) they chose lowering the proof from 90 to 84. The outcry among their consumers was deafening with “watered down” the rallying point.

This week they announced that the decision would be reversed.

Maker’s and Beam made a number of errors. First, their explanation of lowering the proof to meet demand was seen as BS, with industry cynics shouting that their real motive was taking the tax savings (approximately $1.5 million) to the bottom line. I don’t buy that. It’s not worth it for a million case brand to take the “goodness” out for a buck. They either should have had a better rationale or spent more time than they did talking to their consumers about the decision.

So, they made a PR mistake. Read more…

What’s your favorite drink when it’s cold, snowing and you want to feel cozy?

I posed this question to friends on Facebook and via email all across the country. The answers ran the gamut from expected to exotic and everything in between including weather related, as in “Hey, I’m in the sunbelt, I don’t have that problem.”

Amidst the Sidecar, Hot Apple Pie, Hot Buttered Sorel (from my friend Jack at Sorel Liqueur), Manhattans, 25-year-old single malts, and a Cognac near a fireplace; I received some interesting comments –

My friend the blogger and foodie Mary Ellen Griffin, “I am just a simple, old fashioned girl who likes a very well aged (and properly decanted) vintage port in front of the fire.” Her blog is here. Hmm, Port gives me heartburn but I love the imagery.

From my daughter and former partner Michelle (the “M” in AM Shapiro), “Hot cocoa with a shot of Godiva liquor. I think u taught me that one!”  Atta girl, but ever since Diageo got its hands on Godiva, we no longer speak of it.

For you ex-Seagram folks, here’s a bunch from Mark Levine in Seattle, “Gosh, hard to decide: Igor the invisible or Pasha with a touch of Cherry Swiss…. no, no wrong. It must be Sabra…no, no…I know it this time…without question, my favorite, and I wish I could get it…. Lochan Ora warmed in a snifter.” That’s a trip down Memory Lane (maybe Nightmare Lane). Read more…

Buffalo Trace Newsletter reprinted a story from Decanter with the following headline:

“National Rifle Association starts wine club.” Huh?

Apparently the association has linked up with a wine club and is offering home delivery of wines for members and nonmembers.

The website offers these inducements: “Now you can support the 2nd Amendment with every wine you buy.”  It also offers new members a “nine-piece custom NRA engraved wine box” when they join. A portion of the profits will apparently go into the coffers of the NRA as it battles gun control legislation.

One of my readers had the following questions about this link between the NRA and the wine club.

“Will the NRA recommend a cabernet to go with Moose?”

“Is it white or red while you clean your shot gun?”

“Is the wine box good for target practice?”

Actually, according to the Huffington Post, the National Rifle Association has hosted a wine club since 2007, but word of it only recently came out as a result all the current press. The story goes on to say that, an Australian winery is pulling its wines from the club in protest against the NRA’s views. Others have not objected.

What’s your take?

The hangover – lots of interesting ways to describe it: “I have post party trauma”; “someone slipped me a bad ice cube”; “suffering the wrath of grapes”; “the high cost of low living” and my favorite, “I was over served.”

No matter how you describe it, over indulgence can be painful the morning after. So, as a public service effort on behalf of my readers, I scoured the web for solutions.

First, how does it happen? Aside from the fact that you drank too much (duh), alcohol in large amounts creates a diuretic effect. The body will try to replenish the loss of liquid, often sending a message in the form of dry mouth. According to a researcher at George Mason University, “the body’s organs will attempt to replenish their own water, usually stealing water from the brain…” Hence, the headache.

While there doesn’t seem to be a sure fire cure, there are lots of remedies. They work by providing chemicals your body needs. Eggs, for example contain cysteine, an amino acid that helps your liver. Potassium, fructose, sodium and, of course, water are beneficial the next day. Read more…

It’s the season for entertaining and parties and many people like to keep the serving of libations as easy as possible, limited to beer, wine or liquor with a few easy mixers.

But, there are many who like to find an interesting new concoction or serve a classic and fun cocktail that takes some effort. Mixing drinks has become the liquid side of the foodie culture.

One approach is to do what the professionals do and browse recipes from the Gary Regan books, or go to Bartender.com and download some.

Then I came across an article in Gizmodo about The Best Drinking Apps and off I went looking for iPhone and Android apps. What I learned right off the bat was that in the iTunes store alone there are hundreds. So, the next stop was to scour the Internet and see what was being reviewed and recommended.
Read more…

The Wine Rack Bra contains a flask hidden inside with a tube that lets you drink the liquid. It looks like a normal sports bra but can hold up to an entire bottle of wine or spirits.

The manufacturer claims that the bra has a number of uses. Not only does it allow the wearer to covertly drink the contents, but also, in venues where alcohol is sold, you can bring your own less expensive booze and save money. (In this case I assume that BYOB means bring your own bra.)

The clincher – at least according to ads I’ve seen online – is that it also serves as a breast enhancement product allowing the wearer to “turn an A cup into double Ds.” But wait; as you drink from a fluid filled bra, doesn’t the breast size get smaller? I guess if you drink enough you and others won’t notice.

Here’s the device.

You think that’s cheesy?

There’s a comparable product for men called the Freedom Flask.  It’s designed to be worn underneath the pants, sitting right in front of the crotch.

If that’s not disgusting enough, the spigot is located so that you have easy access when you unzip your pants.

I can’t bring my self to post the video of this ridiculous device. But if you must see it, you can find it here.

So there you have it, American ingenuity in action.

I can’t imagine wanting a drink or saving money so badly that anyone would use these items.

Campari America, owners of Wild Turkey Bourbon, has come up with an interesting and fun promotion for Thanksgiving.

It’s a PR event that only that brand can own.

It seems that they have a turkey they claim is the “world’s first football picking turkey” that can predict the outcome of football games, starting of course, with the three this Thanksgiving. (Anyone following my football picking efforts this season knows that I’m the holder of that title.)
Read more…

Two weeks after the super storm, parts of New York and New Jersey remain damaged or devastated.

Here is the story of three booze businesses and how they are faring.

1. Jack From Brooklyn and Sorel is struggling and needs some help.

They suffered catastrophic damage as five feet of seawater swarmed through the distillery, wiping out supplies and equipment and causing long-term damage. But, they are committed to rebuilding and need support.

If you’d like to donate please go to http://www.gofundme.com/jackfrombrooklyn

You can also help them by buying some product. Astor Wine and DrinkUpNY are two of the online retailers who sell Sorel.
Read more…

Bevlog, the blog run by my favorite alcohol industry attorney Robert Lehrman, has an interesting posting about a new vodka product. It’s called “Chokin’ Chicken.” The TTB approved the label in early Oct. You can find the blog here.

Is it a new direction in vodka? Are we moving from candy, cake, bacon and other flavors to nomenclature designed to get attention by being over the top. You know, like the guy who thinks he can get a laugh by putting a lampshade on his head.

Probably not. This most recent example of branding “excellence” joins the ranks of other previously approved sexual innuendo brands like – Spank My Ass and Call me Sally, a red wine from California; Well Hung Vineyard, a red blend from Virginia; and Vas Deferens Ale. (You’re just going to have to Google that one.)

Fortunately, none of these brands have seen the light of day, so far as I know. Which, I suspect, will be the chicken’s fate.

I don’t know about you but I’m glad the TTB approved these names. Their job is to regulate, not act as censors. Besides, they probably didn’t get the double entendre of chokin’ chicken.

It’s your tax dollars at work.

“Red Hook was overrun by the Sea,” my friend Jack Summers owner of Sorel Artisanal Liqueur, told me when I called to check in with him. “The storm was a disaster, but not a catastrophe.”

From what I read and saw, I’m not sure that’s totally accurate but then again, Jack is the most can-do person I know with a strong positive outlook.

Red Hook is the home of many of the Brooklyn distilleries and breweries and the area was among the hardest hit neighborhoods in New York City. Sandy killed people there and knocked out power for hundreds of thousands.

Some booze business distilleries were destroyed, some somehow managed to survive unscathed and some, like Jack From Brooklyn were dealt serious, but hopefully not fatal blows.

Read more…

Buffalo Trace Newsletter reprinted a WSJ article with the headline, After Long Downturn, Beer Sales Are Back.

Are they? Well, yes and no.

Beer shipments in the US rose nearly 2% to over 141 million barrels in the first eight months of 2012 after falling three straight years. In fact, sales fell 1.5% in 2011.

But, it’s not the shut-up-and-drink-or-guzzle-it brands. The growth is coming from craft beers whose sales have grown 12% in volume in the first half of this year. Craft beers represent 6% of the beer market in volume and 9% in dollars.
Read more…

Wine, beer and cocktails; millennials, baby boomers, gen x and y – who is drinking what type of alcohol in the United States?

I bet you know the answers but maybe there’s a surprise or two in this posting.

Let’s set the stage with an article from The Economist called “Thirsty Work” which answers the question of how long it takes to afford a beer around the world.  The information covers the number of minutes of work required to purchase 500ml (16.9 oz.) of beer all over the globe.
Read more…

Bond. James Bond. Since 1956, he has been drinking his famous vodka martinis, shaken not stirred, of course.
But in the upcoming film, Skyfall, Bond, has dropped his favorite libation for a Heineken. The brewer has signed a reported $28 million deal that goes beyond placement. The result is the ad below.
Read more…

WABC-TV New York recently had a story about restaurants charging more for premium dining times. They indicated that people pay extra to board a plane early or for a hotel room over a holiday weekend, and they will soon pay more for prime time reservations.

That’s just not the whole story. Their report was based on a NY Times article about a new approach to filling tables at non-peak dining times.

A table in a restaurant, like an airline seat, hotel room, even a theatre seat is a perishable commodity. If it’s not taken, it’s gone forever at that date and time. What many restaurants have been doing is using variable pricing tools like Groupon or Gilt City for deals to consumers for anticipated slow times.
Read more…

Heavy Drinkers Exercise More.

Beer Glass Shape Alters Drinking Speed.

Those were two recent studies on drinking that caught my attention and seem worthy of exploration and comment.

Let’s start with exercise.

Forget about all the negative things you’ve heard about drinking and exercise, particularly that people who drink exercise less.

Based on a number of studies, The San Francisco Chronicle and the NY Times have reported that people who exercise, drink more than those who don’t exercise. One study, from the University of Miami, concluded, “our results strongly suggest that alcohol consumption and physical activity are positively correlated… the association persists at heavy drinking levels.”

Turns out that, of those who exercised energetically, heavy drinkers (in past 30 days, 46+ drinks among women and 76+ drinks among men) worked out 10 more minutes than moderate drinkers and 20 more minutes than non-drinkers.

The researchers theorized that it might be a result of group sports and drinks afterward or, perhaps compensating for drinking by vigorous exercise.

I wonder — if I increase my workouts, can I have a second martini?

Perhaps I should change the glass I use?
Read more…

New York magazine’s Fall Preview issue has predictions about what some NYC bartenders/mixologists think are the most promising drink trends for the fall.

It’s been some time since “behind the bar experts” have taken me to task for a blog posting (and I kind of miss being yelled at), so, here are their predictions.

Let me know what you think (he said with trepidation).

The first prediction mentioned is that mezcal will “break through.” Frankly, I’ve been predicting that myself for a number of years. While I’m not an aficionado of tequila or mezcal, the latter has a small batch product quality not to mention allure and mystique – and the worm BS is not what I’m talking about.

Unfortunately, for Mezcal to break through it will take some clout and marketing support that most producers don’t have. Nevertheless, I continue to think it will grow.

My take: I agree with the forecast.

The second prediction is that cognac will become a cocktail ingredient. The magazine argues that the ceremonial “from the bottle” drinking patterns of rappers and hedge fund types will give way to its use in mixed drinks. Read more…

Gallup just released their annual survey of US drinking patterns. Earlier this summer, NPR published the results of a study on where and how Americans spent money on booze. Let’s put the pieces together.

Who drinks?

Pretty much unchanged from the past, Gallup reports that two-thirds (66%) of Americans drink alcohol, consuming just over 4 drinks a week.

Last year the number was 64%; the same in 1992 and 1982. The earliest measure reported was in 1939 with 58% alcohol drinkers. For decades, then, two thirds say they drink alcohol. With roughly 200 million Americans of legal drinking age, that means there are 132 million drinkers.

Read more…

Buffalo Trace Newsletter reprinted a story about a tomato wine made in Quebec. So, I decided to check it out.
The vintner (tomatoes grow on vines, right?) is named Pascal Miche and he has sold 34,000 bottles a year for the past 3 years. In North America, he can legally call his product “wine.”
He produces a dry wine and a mellow wine that supposedly is close in taste to Pineau des Charentes from a family recipe that’s been a secret for four generations. It’s called Omerto and sells for about $25 for a 375 ml.
He’s looking for distribution in the US and some countries in Western Europe like France. Good luck with that, especially since only alcohol beverages made from fermented grapes can be called wine in France.
Here’s a short video on the wine. (You’ll have to click on the link to watch it on YouTube. The video is from AFP, Agence France-Presse.)

The American Association of Wine Economists (AAWE) conducted a wine tasting last month and, in case you missed the results, they may make you want to rethink your views of wines from the Garden State.

Back in 1976, a British wine merchant organized a blind wine tasting with 9 French judges called, Judgment of Paris. The tasting included wines from Bordeaux and wines from Napa. The wines from Napa were declared the winners and helped put Napa wines on the map.

Fast forward to June 8, 2012. A group spearheaded by George Taber (who had been in Paris for the original tasting and wrote a book on it) as well as a number of economists from the AAWE and others, organized a tasting called The Judgment of Princeton.  The 9 judges this time were from France, Belgium and the US. The wines tasted were from France and, you guessed it, New Jersey.

Read more…

Wine and Spirits Daily and Shanken Daily News have each had stories on
Hiro Sake and its co-founder, Carlos Arana. In fact, there’s been quite a bit
of press about them lately.

Since I’ve known Carlos for most of my booze business days, I thought I would chime in.

At Seagram, Carlos and I suffered through the foibles of our Latin American boss and managed to survive the adventures of Patron in the early days. Carlos went on to run the Asia-Pacific whiskey business.

Next came an 8-year stint with the Beckmann family running the tequila business with impressive results and literally put Jose Cuervo on the global map. He managed to double sales and triple profits and increased market share by five percentage points. Not shabby.

A brief tour of duty as President of the Arnell Group was enough to convince him that doing your own thing is far more rewarding than working in a corporate setting.

So, enter Broadway and Hiro Sake.

Read more…

Screw cap or cork?

According to some surveys I’ve seen on line, while corks remain the preferred closure among consumers, the acceptance of screw caps has been growing steadily. One recent study in the UK indicates that twice as many people accept screw caps today as compared to 10 years ago.

Ah, but buying a bottle with a screw cap is another matter.

More and more wineries around the world are turning to screw caps, including some very high priced wines. Nevertheless, it seems as though a bias continues against the device known as a Stelvin Closure. Perception is reality and the notion that wines with a screw cap are inferior is still pervasive. At best, many seem to think they belong only on young, inexpensive wines.

It seems to me to be a conflict between the rational/functional versus emotion/sentiment.

Read more…

Buffalo Trace Newsletter had an article last week with the headline, “Shakers Vodka Brand and Equipment to be Auctioned Online Through June 26.”

Infinite Spirits Inc., the makers of Shakers Vodka, filed for bankruptcy in early 2012 and now the assets are being liquidated. If you go to the auction website you learn that you can bid on the brand, the equipment and a host of other items. The bankruptcy filing shows the company has under $200,000 in assets and liabilities of over $2.3 million.

To me this represents a case study of a start up gone wrong. Got me wondering, what happened and why did it fail?

The story starts in 2003 when a group of entrepreneurs who had created Pete’s Wicked Ale decided to enter the spirits industry. They had sold Pete’s for $69 million to the Gambrinus Company in 1998 and I suppose wanted to parley the money into “the first high-end American vodka.” Their marketing concept was to replicate the elegant 1920s with frosted bottles shaped like Martini shakers.

Shakers Vodka

From what I’ve read, in less than three months from intro, Shakers was number one in their home production state of Minnesota and quickly expanded to 19 other states. They were loved by vodka mavens, received a perfect 100 score from Wine Enthusiast and were Best of Show in the San Francisco Spirit Competition. At one point they marketed five products – wheat and rye based vodkas plus seasonal versions known as rose, violet and summer. The bankruptcy records indicate that they grew quickly from the launch and had annual sales over $1 million. Read more…