New Brands | Booze Business: A Blog Dedicated to the Business of Spirits and Wine

Would you drink a beer that tastes like liquor? How about a liquor that tastes like beer?

June 20, 2013 4 Comments

BrewDog, an independent brewery based in Scotland has launched a beer-based spirit called WattDickie. It’s named for the two owners whose keyboard seems to be missing the space bar. (Their website is here.)

But their creativity seems to be working okay. Although, the idea has been done before, but the other way around. Therein lies the tale.

Messrs Watt and Dickie developed the new product using a “radical brewing and ice distillation process.” It’s 35% AbV and is created using an IPA style beer. At 70 proof it must pack a wallop.

I’ve been following these gents for some time (see May 16, 2012 posting) and admire their independence and cheekiness (for those of you in the States, that’s called chutzpah). Martin Dickie, had this to say about their new creation:

“What we have here is not a beer, but its alter-ego. This is Mr. Hyde. This is the shiver down the spine of the grease slick adman relying on people lapping up the ‘same old-same old’ from their sticky bottle of snake oil. This is a drink by the misfits, for the misfits. It’s a beautiful, absurd experiment.”

It will sell for £2.99 for a 6cl bottle and will be available in BrewDog bars and their online store at the end of June. Get this – according to Just Drinks, it is expected to be available in 700ml bottles later this year.

I wonder what it tastes like.

Back in the day, Seagram, spurred on by the vagaries of the owner, produced a beer-flavored whiskey called Old Breed. (See the May 24, 2010 posting for the full story.)

Failure does not begin to describe the reaction to this neither fish nor fowl new product. The comments were universally negative (with “awful taste” at the forefront) and the product was pulled faster than a New York minute. That is, of course, when management mustered enough guts to tell the owner his baby was ugly.

Now, I’m not saying that WattDickie is in the same class as Old Breed. But, calling their brew or concoction a “new style of spirit,” makes me wonder. Is it indeed a new worthwhile alcohol product or a bad idea whose time has come again?

As they say, “the proof of a pudding is in the eating.” So, to my readers in the UK – try it and let me know what you think.

(My thanks to Drew DeSarno who brought this to my attention and supplied the Old Breed photo.)

Want to start your own liquor company?

June 4, 2013 No Comments

Go to Moonshine University. Really.

If you’re interested in becoming a chef you might consider the Culinary Institute of America, so why not a school to teach you the craft of making liquor. Well, there is such a school. It’s part of Distilled Spirits Epicenter and you can find the website here.

So, the first stop in becoming the next booze business tycoon is the school.

Next, they have a number of different businesses to help the wannabe craft distiller. One is called Grease Monkey Distillery, which is designed for use by everyone from entrepreneurs to industry experts, and is equipped to distill spirits of all kinds. Kind of like a do-it-yourself still using state of the art equipment.

What good is an outstanding, crafted liquid without a vessel to put it in? Well, then avail yourself of Challenge Bottling. It is a highly

flexible bottling line that is versatile enough to handle smaller production runs, challenging projects, and various packaging requirements. In other words, they are contract bottlers.

Let’s go back to Moonshine U. No, they don’t teach you to find a remote spot in the woods, set up a still, cook the mash and drive like hell to outrun the revenuers.

Instead, they have a fairly comprehensive 5-day program that I think is impressive. The curriculum runs from learning the fundamentals, to the production of rum, whiskey, vodka and gin, as well as general management covering all aspect of marketing, sales and distribution. It isn’t cheap folks ($5,500) but I’m guessing it’s well worth the money.

Aside from the aspiring liquor moguls, the school is a good place for marketing and sales people to learn about the liquor business and see more of the production landscape. At Seagram, we had such a program at the Lawrenceburg KY plant, which was very popular. Absolut had one in a town called Åhus, Sweden, which was both educational and afforded the opportunity to eat herring. (Hey, don’t laugh it was world-class herring.)

Seriously, this is a very worthwhile endeavor in the heart of the Kentucky. Distilled Spirits Epicenter has an endorsement by virtue of its membership in the Kentucky Distillers’ Association as the group’s first-ever Educational Distillery member.

About the only thing they don’t do is teach you how to get lucky and produce a winner. That’s up to you.

How a Chilean Wine came to the US via China…and won awards

May 16, 2013 4 Comments

Don Mateo Wines started with three global entrepreneurs, a passion for wine making and a vision to become world class.

So, what’s so special, you ask, lots of aspiring winemakers out there.

Yes, but how many have won four awards at the recent Wine and Spirits Wholesalers of America (WSWA) convention? And, how many have had a journey that began in China?

I first met the partners running Don Mateo Wines in late 2010 and was immediately struck by their business acumen, gained in global trading, and applied to the wine world. Their story is interesting.

Andy Lam and his brother Matthew were successful exporters of various products and commodities to Chile from China. Over the years, the currency exchange swings hurt their business and so they turned the ship around and began importing wine from Chile. Their passion about wine helped, and they began buying vineyards and wineries. Added to that was the patience and tenacity to develop top quality wines. They hit the Chinese wine market at the right point in time and the business flourished.

You can’t be a global wine player without the US market, so a third partner, Peter Loucks, entered the picture and applied his overall business skills to the wine business. Peter is smart and a quick learner so it’s not surprising that he soon realized that, unlike China, the supply of wine (Chilean and others) exceeded the demand. Consequently, growth here would be an uphill battle. Further, the mandatory wholesaler tier has become more and more difficult to deal with, as in “take on another wine brand, are you kidding?”

But, he knew that despite the hurdles, he had some key brand equities and assets. For one thing, Don Mateo is a memorable brand name for a Chilean wine and the brand symbol is both interesting and notable to consumers.

As you can see, the symbol/logo is the Moai (pr. mo-eye). These Moai are the monolithic statues of Easter Island, off the coast of Chile. According to their website “they reflect our commitment to discovery, craftsmanship and passion. These three elements have been the guiding principles for Don Mateo wines from Chile.” Might even stand for the three partners behind the venture. You never know.

If you asked the brand owners what is the single most important asset of their wines, their answer is most likely to be, the wine. Trust me folks, these are outstanding wines. But, in case you don’t believe it, think about the medals they won at the WSWA – three silver and a double gold.

Here’s the irony. Despite the entrepreneurial approach, despite their marketing and branding and, despite the high quality and good value, you would think wholesalers would be beating a path to their door. Instead, getting wholesalers to take on the line has been slow and difficult. Such is the state of the booze business and the plethora of brands on the market.

But, hey, the Moai on Easter Island have stood the test of time, so why shouldn’t Don Mateo Wines.

For you former Seagram folks out there… It might interest you to know that Jim Reichardt introduced me to them and their New Jersey wholesaler is Sam Ellias.