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Blends Hold Their Own

While the popularity of Napa Valley grapes such as Chardonnay and Cabernet Sauvignon will never wane, California’s beloved wine region has also become quite well known for its blends, primarily crafted from the area’s star red grape. According to Nielsen, red table wine blends saw a growth of 11% in 2014, in contrast to whites at just 4.2%. Red blends account for about a sixth of all red wine sold in the U.S., which translates to the fact one in six bottles of red wine sold in the U.S. is a blend.

Consider the powerhouse Opus One, whose 2011 vintage unites Cabernet Sauvignon with Merlot, Petit Verdot, Cabernet Franc and Malbec; the Cab-heavy 2011 Dominus, with just a touch of Petit Verdot and Cabernet Franc; or Quintessa, which puts some—or all—of its estate-grown grapes (Cabernet Sauvignon, Merlot, Cabernet Franc, Petit Verdot and Carmenere) in the spotlight year after year with its annual blend.

Yet not all successful blends need be of the upscale variety. Santa Rita’s new Bougainville, from Chile’s Maipo Valley, appeals—for $40—with its blend of 85% Petite Sirah and 15% Syrah. And let’s not forget mainstream brands like California-made Apothic, the easy-drinking jammy wine with Zinfandel, Syrah, Merlot and Cabernet Sauvignon, and even its refreshing sibling, Apothic White (with Chardonnay, Pinot Grigio and Riesling). The equally playfully named Cupcake Wines, also from California, made a splash in recent years. Along with varietals like Malbec and Pinot Noir, its Red Velvet – a blend of Zinfandel, Merlot and Petite Sirah – is just as sought after.

It has long been entrenched in the minds of wine buyers that the very thought of purchasing a wine blend over a single varietal is negative. Naturally, rampant buzzwords like Burgundy, a region that connotes elegance and lavish prices, disguised the fact that many of these esteemed wines were, in fact, blends—very good ones at that.

“The classic blended wine is red Bordeaux. Many people do not even realize that Bordeaux is almost always a blend of Cabernet Sauvignon, Merlot, Cabernet Franc and other less-known grapes,” says Donald Killinger of Brooklyn, NY-based Acme Wines & Spirits and Waterfront Wines & Spirits. “A runner-up would be Côtes du Rhône. There are over twenty grapes allowed by the rules of the AOC, with the predominant red grapes being Grenache and Syrah.”

Blends are hardly stigmatized these days; instead, they are relished. Yet Killinger can’t place his finger on the exact reason for their luster. “Many customers don’t even know the wines they enjoy actually are blended. However, some customers do specifically say that they like blends, but typically don’t know what blends they are looking for,” he says.

Knowing this piece of open-minded consumer intelligence is a boon to retailers who can tap into this growing interest, giving up-and-coming wine regions the spotlight. New York State wines have made tremendous strides over the last several years; along with an increase in quality, customer interest has been piqued.

One such winery that has championed Long Island wines is Bridgehampton-based Channing Daughters. Its super-blends, like the Mosaico (Pinot Grigio, Chardonnay, Sauvignon Blanc, Muscat, Gewürtzraminer, Tocai), change every year. Lieb Cellars, close by in Mattituck, debuted two new blends under its Bridge Lane brand in 2014: the Bridge Lane White Blend (29% Chardonnay, 26% Pinot Blanc, 18% Riesling, 14% Viognier, 9% Sauvignon Blanc, 4% Gewürztraminer) and the Bridge Lane Red Blend (46% Merlot, 37% Cabernet Sauvignon, 12% Petit Verdot, 5% Malbec). Likewise, up in the Riesling-dominant Finger Lakes, Anthony Road Wine Company in Penn Yan has had great success with its more unconventional Cabernet Franc-Lemberger blend.

“Blends are becoming increasingly popular among New York wineries, especially with certain grape varieties like Cabernet Franc and Lemberger, and Riesling and Gewürztraminer,” notes Jim Tresize, president of the New York Wine & Grape Foundation. “These varieties, as well as others, can make some stunning wines by themselves. But sometimes blending can give you a whole that’s greater than the sum of its parts – it’s taste synergy.”

Blends are also a choice introduction to more serious single varietals. Franciscan Estate Winery, in St. Helena, for example, makes Equilibrium (72% Sauvignon Blanc, 17% Chardonnay, 11% Muscat), a far more approachable blend than the robust wines often associated with the region. Clean, crisp and ideal with food, it paves the way for bolder Chardonnays. The same could be said of Franciscan Estate’s hearty meritage blend, the Magnificat (79% Cabernet Sauvignon, 12% Merlot, 6% Petit Verdot and 3% Malbec), which serves as a warm-up to those pervasive, powerful all-Cabs.

Michael Warner, co-founder and managing director of Washington, DC-based wine boutique DCanter, notes that his customers seek out blends for pragmatic reasons: They are sophisticated buyers who crave “a complete wine that provides balanced fruit, acidity and a lingering finish,” he says. “While many single varietals are strong in one or two of those areas, well-made blends consistently deliver in all three.” Not surprisingly, many of DCanter’s customers recognize blends as a great value.

DCanter’s clientele, who often choose blends over single-varietal wines, tends to lean toward traditional styles. “Red Rhône blends, like the classic Grenache-Syrah-Mourvèdre, sell exceptionally well, as does white Bordeaux,” he says. “White blends that incorporate a small amount of Viognier consistently outsell the single varietal, which is a bit surprising given the popularity of Viognier at nearby Virginia wineries.”

With the recent launch of Concierge by DCanter, a bespoke wine selection and delivery service that caters to each customer’s distinct taste, budget and lifestyle preferences, Warner believes blends will become even more intriguing to his patrons. “DCanter hopes to share a number of new wines that individuals may not have previously considered due to obscure or confusing labeling – a problem for many blended wines.”

This especially becomes a challenge when unknown grapes, such as Portugal’s Viosinho, Rabigato and Gouveio, comprise wines like Esporão’s new Assobio white. It’s also a recurring problem in Italy, where many a desirable wine is a blend. After all, look at the prowess of Chianti, with its mix of Sangiovese, Canaiolo and Malvasia Bianca. On the heels of Centine, the Sangiovese-Cabernet Sauvignon-Merlot blend that is one of Banfi’s biggest sellers, the company will soon roll out Unparalleled, yet another mélange of Tuscan grapes.

At Honor Wines in Staten Island, NY, owner Lorie Honor notices that the blends of choice among most her customers are Côtes du Rhône. But after that, it’s Italian wines that get the most attention. “Morellino di Scansano, a Sangiovese-Cab from Maremma, and Il Cacciatore di Sogni, Rosso Conero Montepulciano, a Sangiovese-Merlot, are both under twenty dollars,” she says. “There’s an uptick in our customers drinking blends. Many of our wine-curious drinkers understand blends beyond Bordeaux and know they are not the machinations of a Franken-winemaker ‘covering’ for a meh wine, but actually a respected practice yielding delicious wines.”

Some of the other hit blends found on Honor’s shelves include Chateau Renard, from France’s burgeoning Jura region, “a crazy delicious and dreamy white that is Savagnin and Chardonnay,” she says. “From the states, California is representing well with the sort of super crazy and tiny production from Napa. Suhr Luchtel Cellars’ Mosaique is just that, a gorgeous blend of Merlot, Cab, Cab Franc and Malbec. For more everyday drinking—and under twenty dollars—we sell and love Betsy’s Backacher from Spann Vineyards, with huge fruit and good, grippy tannins.”

How to attract her customers to these offbeat blends without an aggressive marketing push? It’s simply an organic educational process. “Because we arrange our wines by varietal and write notes on all of our wines,” Honor says, “customers who love, say, Grenache, can easily explore a Grenache-Tempranillo-Alicante that shares shelf space with Grenache, along with Côtes du Rhônes and other related blends.”

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He Made the Cut – Now He’s On the Hudson Team

I recently had lunch in Manhattan with Han Shan, Hudson Whiskey’s brand ambassador. He won his position with the distiller through a contest called “Making the Cut,” which sought candidates for the job who love whiskey as much as the Tuthilltown, NY-based founders of Hudson (Brian Lee and Ralph Erenzo, who sold the brand to William Grant & Sons in 2010 but continue to distill the whiskey under contract).

A former environmental activist, Shan has settled well into his new role as the face of the Hudson Whiskey brand.

 

BD: Tuthilltown Spirits was one of the first craft distillers in New York. How did the company get its start?

 

Ralph came to own the property in Tuthilltown when he bought an old grist mill and farm, hoping to establish a climber’s ranch because of how close it is to the Shawangunk Mountains. The neighbors at the time didn’t like the idea of a bed and breakfast for climbers, so he went back to the drawing board and determined he could get a farm distiller’s license.

It was really a happy accident that he came around to making spirits, but all the ingredients were right there – local corn and rye and wheat from farmers just up the road. Those neighbors who kept him from opening the ranch were really onto something, because now they have a world-class distillery in town.

 

BD: As Hudson grows larger, is it more difficult to avoid losing sight of your local roots?

 

When William Grant & Sons acquired Hudson, they made a very equitable deal for everyone because the Tuthilltown team still makes the whiskey and the original owners are largely the face of the brand. The family remains very active in how the brand is marketed, what’s produced and what goes in the barrel – they really retain a lot of autonomy.

We’re still making the product grain to glass, with grain from the farmers down the road. We’ve seen the recent controversies about the provenance of certain spirits and we see that as an opportunity to differentiate ourselves in the marketplace; telling consumers that if they’re looking for an authentic brand, it’s us. Being that authentic brand is a major commitment, it’s what makes us special – and that’s what drew William Grant & Sons to Hudson in the first place.

 

BD: What innovations does the company have on the horizon?

 

The big news for us is that in 2015 we’ll finally have 750-ml. bottles. Probably just for the Baby Bourbon and Manhattan Rye to start with, but then presumably if things go smoothly – and I don’t see why they wouldn’t – we’ll add the Four Grain and Single Malt as well.

Frankly, the small 375-ml. bottles weren’t a gimmick; it was just a matter of not having much product at the beginning. It was better to use smaller bottles to get the whiskey in as many hands as possible. Now people like the small bottles since it’s a lower barrier to entry in retail, but I think the 750-ml. bottles will be an improvement on-premise because bartenders don’t want to open a new bottle every six pours.

 

BD: Considering how quickly craft spirits have taken off, what’s next for the category?

 

I feel like we’re in the midst of a craft spirits renaissance; it’s very exciting. Ralph is the head of the legislative committee at the American Craft Spirits Association, an advocacy group that works for a level playing field and regulatory reform in places where it’s hard to set up a craft distillery. The ACSA wants to make the ground more fertile nationwide for craft distillers.

The spirits industry still has antiquated rules and regulations on the books from the end of Prohibition – whereas wine and beer enjoy regulations that have changed and modernized over the years. What we’ve seen in New York with the boom in craft distilling is that it’s been great for farmers, the economy and related businesses. That could be happening everywhere.

It’s great to work for a company like Hudson and with the people at Tuthilltown because they want to see that happen, even if it means more competition. There’s a ‘rising tide lifts all boats’ mentality – we’re all about sharing tools, resources, tip, tricks and advice. That’s really refreshing and, frankly, it makes my job (which is already pretty good) that much more pleasurable.

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Canada on the Cusp

Canadian whisky may not get as much respect as its Irish, Scottish and American counterparts these days, but if whisky-buying was “American Idol,” Canadian would definitely be competing in the finals.

After all, the entire category moved more than 13 million cases in the U.S. last year, second only to Bourbon and Tennessee whiskeys among brown spirits. The Canadian category overall posted steady if modest growth last year, up 1.3 percent overall, with leading brands Crown Royal (up 2.6 percent to nearly 4.3 million cases) and Black Velvet (up 3.6 percent to more than 2 million cases) leading the way, according to Beverage Information & Insights Group data. The results among the other eight top-ten brands was mixed — Canadian Club, Windsor Supreme, Rich & Rare and Lord Calvert were up, while Canadian Mist, Seagram’s V.O. and Canadian LTD lost ground.

And while the category has a reputation for lower prices when compared to the other whiskies, the majority of the growth last year came from the super-premium pricing tier, according to figures from the Distilled Spirits Council of the U.S.

 

Embracing Flavors and Brand Extensions

For years, the Canadian category has been a steady if uninspired participant in the reawakening of interest in whisky. With a tradition that made “smooth,” “mellow” and “easy” keywords for the style of spirit most often associated with whiskies from the North, Canadian wasn’t perfectly aligned with the contemporary taste for more robust or expressive flavor profiles found in American, Irish and Scottish varieties.

But recent signs of interest, especially by cocktail connoisseurs for the high rye expressions and by new consumers for flavored expressions, have encouraged Canadian makers to pay more attention to contemporary tastes.

“We all know brown spirits are seeing a big resurgence and we’re seeing that as well in Canadian,” says Vicki Arcos, brand director for Black Velvet at Constellation. “Bourbon is getting all the attention but we’re definitely seeing a lot of traction as well.”

Canadian’s reputation has always rested on its smooth and accessible qualities, she notes, and as a category has been reliant on brand-loyal male consumers. But now that flavors are such a huge a huge trend in brown spirits, brands are finding success recruiting users from beer, cider and vodka – as well as making inroads among female consumers.

“That older male demographic is tried and true. However, there has been an increase of older women and Asian consumers purchasing from our Canadian section,” says Erin Robertie, liquor department manager at the 35,000 square foot Hazel’s Beverage World in Boulder, Colorado.” Older women who were die-hard Bourbon drinkers for years are making the switch to a mellower dram, without sacrificing the flavor.”

“There are a number of trends driving awareness, trial and growth in the North American space and among Canadian Whisky,” says Yvonne Briese, VP of marketing, whiskey for Diageo. “The emerging popularity of flavored whisky was part of the inspiration that led to the innovation of Crown Royal Regal Apple. We feel this trend is a great way for drinkers, both men and women alike, to continue expanding their interests for not only whiskies, but flavored whiskies.

She adds, “The growing popularity of cocktails among consumers and the resurgence of classics such as the Manhattan and Old-Fashioned provide consumers with more options and reasons to responsibly enjoy whiskies, including our Crown Royal Canadian Whisky portfolio.”

Says Claire Richards, director of world whiskies for Beam Suntory (supplier of Canadian Club and Windsor Supreme), “This is certainly an exciting time for spirits, especially brown spirits. Brands are experimenting more to create new flavor experiences, and consumers are eager to explore different variants. Canadian whisky has a unique flavor profile due to its rye content, which is attracting a lot of interest from bartenders and consumers as they explore the whisky category. We anticipate that the Canadian whisky category and high-quality, approachable products like Canadian Club will continue to grow.”

It’s a sentiment shared by many other Canadian whisky marketers. “We’re really bullish on the Canadian category, at all levels,” says Kevin Richards, marketing director, whiskey and specialty brands for Sazerac, which sells Rich & Rare, Canadian LTD, Canadian Hunter, Caribou Crossing Single Barrel and the recently-launched Legacy Small Batch Canadian Whisky. “It is a category that had a tremendous heyday not very long ago and we’re inspired to bring the category back to those exciting times. To that end we have a number of new products in development (can’t be specific about any just yet) and look forward to showcasing them in the coming years.”

 

The category continues to expand

Other new products have been trickling into the market. In the past year, Diageo unveiled a new flavored extension to Crown Royal, Regal Apple, a blend of Crown Royal infused with flavors from Regal Gala apples. The 70-proof product joins 2012 entry Maple Finished in the Crown Royal flavor portfolio. The brand also in the past few years has added Crown Royal XO, an ultra premium blend of the finest 50 Crown Royal whiskies; and the 75th Anniversary Monarch Blend, a limited-edition offering that celebrates the 1939 visit to North America of King George VI and Queen Elizabeth (and founding of the brand).

Van Gogh Imports introduced TAP Rye Sherry Finished, an 8-year-old Canadian rye whisky blended with Spanish Amontillado Sherry (a companion to TAP 357 Maple rye and Canadian Rye whiskies). And Sazerac launched Rich & Rare Caramel Canadian Whisky in the middle of 2014, the brand’s first flavor entry. Black Velvet has been working on an eight-year-old expression to push forward next year, and while Canadian Club 100% Rye and Canadian Club Maple are available in Canada, Beam Suntory is currently focusing on Canadian Club 1858, Canadian Club Reserve, Canadian Club Classic 12 Year-Old, and Canadian Club Small Batch Sherry Cask in the U.S.

Flavors have generated a lot of interest among most Canadian producers. “After carefully looking at whisky and flavored specialty spirit trends in the U.S., we decided to introduce four Canadian Mist flavors,” says brand manager for Brown-Forman, Pedro Berrueco. “Our intent is to provide consumers with a new and exciting brown spirit experience, blending Canadian Mist with its well-known clean and smooth taste without the harsh finish or bite with liquor-based flavors. This combination will provide an unexpected taste experience, especially for 21- to 29-year-old consumers who may be looking to start enjoying Canadian Mist but have the tendency to search for flavored products.” The flavor line extension includes Peach Mist, Maple Mist, Cinnamon Mist and Vanilla Mist.

While Canadian has sold steadily in solid markets like the Upper Midwest, its performance hasn’t been uniform; Robertie says she’s seen a dip.

“In the past year, I have noticed a decline in sales in the entire Canadian category. From 2012-13, Canadian whiskies amounted to eight percent of our total whiskey sales, compared to flavored whiskeys at 12 percent, and domestic leading the category at 40 percent. From 2013-14, Canadians have fallen to less than six percent in the category, whereas flavored has increased slightly to 13 percent, and domestics maintain 40 percent.” She points out that in her market, the resurgence of American whiskey, (especially flavors), has diminished interest in Canadian whiskies.

 

Time to differentiate

One of the reasons Canadian has been lagging the other whiskies in growth may be its modesty, suggests Richard McLeod, Brand Director, North American Whisky for Pernod Ricard.

“I think that we have to start beating our chest a little more about our quality, what makes us different and how we stack up against the rest of the world,” he says. “Globally speaking, over the last 10 to 15 years we have seen [most] of the major whisky producing regions in the world stand up and actively support their whisky export business. It is time for Canada to get involved and show the world that we really do make incredible liquid as good as any being made by our colleagues in those countries. We have as much flexibility in the maturation and blending process as anyone, which gives us greater freedom to express different taste profiles for the consumer to enjoy.”

Each nation has specific rules for whiskey-making and naming, but Canada’s can be confusing to an American. For instance, what can be bottled as rye whisky in Canada wouldn’t meet U.S. standards, in that in this country a rye must be made with at least 51 percent of that grain as a component of the spirit. In Canada, a mostly corn spirit that gets small amounts of flavorful rye added to the blend can be called rye. While all Canadian whiskies include some rye, it’s primarily used as a “flavoring whisky,” adding a peppery punch to the mostly corn-based spirit. But oddly enough, two of the newer, pricey and widely sought-after rye brands — WhistlePig and Lock, Stock and Barrel — are sourced from Canada.

And while Canadian whisky is usually the product of one distillery, U.S. laws encourage the inclusion of American spirits into the mix, meaning sometimes Bourbon or other American whiskeys make their way into the final product. Also, unlike the American tradition, Canadian whisky distilleries generally make spirit from each grain separately, rather than in a house-style mashbill. The different spirits are then aged separately and blended together before bottling (Canadian Club being the most notable exception, since the brand is blended before barreling).

 

Broad expansion appeal

“We want to continue to elevate the category, thus increasing consideration,” McLeod of Pernod-Ricard says. “For a long time Canadian Whisky has had the value stripped out of it. We want to reverse that trend. We want to be at the forefront of premiumizing Canadian Whisky in the same way that Jameson, Red Breast and Middleton have elevated the Irish Whiskey category.”

The results they’ve found with the roll-out of J.P Wiser’s and other brands popular in Canada is encouraging.

“Not only have we seen great engagement from the trade and our internal people, we have also seen an overwhelmingly positive reaction from the consumer,” she says. “We always believe in the quality of our liquid but seeing positive, tangible results materialize has been fantastic.”

They will be focusing on promoting JPW Rye through trial, a partnership with ESPN Fantasy Football, and garnering attention among aficianadoes for higher priced brands Pike Creek (finished in port barrels), JPW 18 year old and Lot 40 100% Pot Still Rye. The latter has already developed a cult reputation for its 100 percent rye make-up.

Higher-priced Canadians may be the wave of the future; Sazerac’s Legacy Small Batch Canadian Whisky launched last fall and is in a growing number of markets around the U.S. This after the good results from the 2010 launch of the ultra-premium Caribou Crossing Single Barrel, with a suggested retail price of $49.99. And other results have encouraged Sazerac, says Kevin Richards.

“Our Rich & Rare Reserve Canadian Whisky brand, a premium line extension of our core Rich & Rare brand, continues to beat our expectations in its third year. We are increasing our promotional efforts on the brand as distribution expands.”

With most companies looking to increase their social media presence, sampling experiences and connection with the cocktail resurgence, they acknowledge the importance of the off-premise retailer to the category.

“Retailers have done a terrific job offering their customers variety and diversity when it comes to whiskies. Continuing to support various flavors and spirits and educating on the wide range of offerings available will help drive interest, as well as exposing their customers to more rye variants,” says Claire Richards of Beam Suntory.

And McLeod suggests providing retailers with a profitable Canadian solution that is targeted against current consumer trends for flavors and rye will help, but that retailer support as higher priced brands emerge is important. “Achieving these things will see an elevation in the category and a better experience for the consumer. And, as always, if we can make this happen in the U.S., then a lot of other markets will follow.”

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A Two-Way Partnership in the Three-Tier System

Some of the most important business relationships a beverage retailer can cultivate are those that exist with distributors. Unfortunately, not all retailers take advantage of the plethora of data and advice distributors can provide.

In addition to giving retailers detailed information about new products, distributors often have access to insightful market research and can assist retailers with marketing and promotions. Discovering the resources that distributors have to offer and finding out how to partner with product representatives can lead to a positive impact on a retailer’s business.

 

Tapping Into Distributor Resources

Many retailers view distributor representatives simply as vendors. While supplying retailers with needed products is a distributor’s primary function, often they have much more to offer in terms of information and support services.

Jeff Crouch owns Grizzly Wine and Spirits, LLC, in Missoula, Montana, the largest liquor store in the state. Although Montana is a control state, Grizzly operates as a wholesale, private retailer and regularly interacts with many distributors who primarily act as product representatives. Crouch says that his store’s vast selection is what makes Grizzly so distinctive.

When working with distributors, Crouch mainly turns to them for information on new products that might be a good fit for his customers. When a distributor launches a new product, a representative will often visit the store, share label/packaging information, offer a tasting, and give Crouch and his team additional product details. Generally, Crouch says most of his distributors stop in the store at least once per week.

Crouch says the product representatives play a big role in his decision on which new products to introduce to his customers.

“We’re usually open to bringing in a few cases of new product,” he says. “The best reps bring in corporate research to share with us so we can get a general idea of sales trends and use that to determine if the product is a good fit.”

Along with information to help retail operators and their staff become more familiar with various products, many distributors offer additional materials and support to help educate consumers as well. At Oakton Wine Shop in Oakton, Virginia, owner Bryan Gauthier says his distributors have been essential in providing product shelf talkers. Additionally, some of Gauthier’s distributors participate in the store’s events.

“In the state of Virginia, our reps are allowed to pour tastings for our customers,” Gauthier explains. “They can also engage with the customers and tell them more about the product. Our customers love hearing about what’s new, what new wineries are popping up, or when a new vintage is available. It all translates into better sales for our distributors and for us.”

Distributors can be a great resource to retailers when it comes to marketing and merchandising, often providing product displays to be showcased in stores. At Grizzly, Crouch reserves space on the sales floor for all of his main distributors to rotate different displays. In addition to featuring products in a distinctive, eye-catching way, many of the displays promote different contests and giveaways run by the distributors. Crouch says these displays are a win-win for everyone involved.

“The displays get customers excited about the product, which ultimately translates to higher sales,” he says.

 

Balance Is Important

While the information and resources provided by distributors are generally helpful to have on hand, retailers should never let distributors completely dictate their business practices. At Binny’s Beverage Depot, one of the Midwest’s largest beverage alcohol retailers with 31 locations across Illinois, communications director Greg Versch says that although his company maintains strong ties with its distributors, it’s important to remember that the information they provide is only part of the story.

“The product info provided by distributors isn’t unhelpful, and a lot of it is very useful. But it’s not necessarily my job to market the product,” Versch says. “I need to market Binny’s.”

Wary of market information in general, Binny’s chooses to stay out of the Nielsen Beverage Data Network (NBDN) and other beverage retail sales ranking data. Instead, they focus on analyzing their own customer purchase information internally in order to make decisions about which products will best meet the needs of their consumers. With a company slogan of “If you can’t find it at Binny’s, it’s probably not worth drinking,” the company focuses on the importance of marketing its vast product selection to customers.

An example of this strategy can be found in Binny’s consumer e-mail marketing campaigns. Instead of advertising specific product sales in their e-mails, Binny’s tends to push out features such as “The Whiskey Hotline” and “The Beer Buzz,” which direct to robust websites including detailed information on a variety of category trends and brands.

Versch says that Binny’s is known most for its low prices, excellent customer selection and variety of products, and the marketing that is pushed out reinforces those goals. That said, he appreciates the relationships Binny’s has developed with its distributors over the many decades the company has been in business.

“They’re valuable business partners, and we have good relationships with everyone we work with,” Versch says.

 

Providing Unique Services To Retailers

In addition to things like product displays and market research reports, retailers may be able to take advantage of other resources that distributors make available to them. One innovative benefit is offered by Southern Wine & Spirits. In addition to many of the traditional resources that distributors offer to their retail partners, Southern Wine & Spirits is in the process of rolling out a new service intended to help protect retailers from counterfeit wines.

“We’ve seen the amount of counterfeit wines our customers are tricked into buying increase over the years,” says Larry Ruvo, Senior Managing Director. “We’ve hired a wine counterfeit expert to provide an exclusive service to our customers, at great expense to our company.

This counterfeit wine expert, Michael Egan, has a background in fine and rare wine authentication. Egan began working on behalf of Southern Wine & Spirits in November 2014, kicking things off with a free seminar and Q&A session in Las Vegas. He will also be available as a consultant to retailers, offering them tips and suggestions on how to prevent themselves from becoming victims of fraud.

“It’s extremely important that we work with our retailers to help them combat this terrible thing that’s happening in our industry,” Ruvo explains.

Other distributors offer additional services to retailers that go beyond traditional information sharing. Wirtz Beverage Group, a leading North American distributor of top luxury and premium wines, spirits, and beers, has invested many resources into building an interactive database system that is available to retail clients 24/7. At any time, retailers can log into the system and browse the latest market trends, product information, and available data. This resource allows retailers to receive up-to-the-minute information whenever it’s convenient for them.

“It’s important to note that this system doesn’t replace the relationship retailers have with members of our sales team,” says Kevin Roberts, Senior Vice President for National Sales and Marketing. “We spend a lot of time making sure our sales experts are well-trained so they can serve as expert consultants to our buyers. When retailers access our technology information database system up front, they’re prepared to have a more strategic conversation with their sales rep.”

Wirtz also employs beer, wine, and spirit specialists who hold the highest level of certification in their field: Master Cicerone, Master Sommelier, etc. These accredited experts are available to retailers as an additional level of consulting, and can provide more detailed product information, including menu building and food pairing for restaurant/bar operator clients.

“If we can make the retailers more knowledgeable about our products, we will ultimately help them be more successful,” Roberts says.

 

Maximizing Relationships With Distributors

How can retailers best take advantage of their relationships with distributors? Here are some tips from retailers and distributors alike:

Communicate. This goes for both parties. Retailers and distributors need to stay up-to-date with each other to maximize opportunities and avoid misunderstandings. Crouch recalls an instance when a distributor started touting a product to some of Grizzly’s wholesale clients, who then contacted him and were disappointed to learn that the product hadn’t yet arrived in the state. “Distributors selling to our customers before we have the product is our single biggest difficulty,” Crouch says.

Also, be sure to connect with distributors to share information about what’s working for your store and what isn’t. The more specific information a distributor has at their disposal, the more they will be able to offer you resources and products that best fit your needs.

Focus on consumer demographics. Distributors often have useful market research available to share with retailers, but retailers should also share their own information with distributors. This mutual sharing of information will help identify products that are a best fit for each retailer’s customer segment.

Incorporate your own knowledge into your business planning. Distributor market research is helpful to have on hand, but remember that a distributor’s goal is ultimately to sell more of their products. Retailers need to take their own specific business strategies into consideration when determining which products are best for their specific customer demographics.

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Dissecting Imported Beer

Imported beer has enjoyed cachet in America since our earliest days. Bass Ale reached America from England in 1779. George Washington was especially fond of porter, the English style that grew to great popularity in 18th century London, only dropping his English sources out of loyalty to the new country. In the 19th century, new-style Bohemian pilsner beers set a standard that America’s beer barons sought to match, eventually giving rise to distinctively American pale lagers.

Following the consolidation of American brewing companies in the 20th century, imported beers became the best opportunity consumers had to sample styles beyond the dominant domestic beer style. To some American drinkers, the “imported” tag represented quality, sophistication and variety not associated with domestically-brewed beers.

And yet, even as the number and volume of imported beers has grown, the “imported” label has lost much of its utility. Certainly, all imported beers share the fact that they originate outside the United States. But these days, to observe that a consumer prefers “imported beer” tells us about as much about his drinking habits as his ownership of an imported car tells us about what’s parked in his garage.

The import category makes up about 15 percent of the American beer market. Beyond sales figures for the top fifty or so brands, numbers may be too small to permit rigorous analysis of the sort we see applied to beers of domestic origin, which can be parsed into premium, sub-premium, super-premium, flavored malt beverages, craft and the like. But conversations with importers, marketers and retailers suggest that a world of variety exists for both beers brands and beer drinkers within the monolithic category “import.”

Mexican Dominance

The growth of the imported beer category is, more accurately, the growth of Mexican beer. Of the top-ten brands, half are from Mexico (All figures come from The Beverage Information & Insights Group). More tellingly, across the 50 top-selling beers, Mexican brands grew by 5.5% in volume in 2013, while over the same period, European imports and Canadian imports each fell by 3.7%.

The leader in this successful category-
within-a category is the former Crown Imports of Chicago, now the Beer Division of Constellation Brands. A 2013 deal saw Anheuser-Busch InBev purchasing the remaining half of Mexican Grupo Modelo, and Constellation acquiring the Grupo Modelo brands for exclusive distribution in the United States—in the process becoming this country’s third-largest beer company.

Constellation’s portfolio is made up entirely of Mexican beers (with the exception of Tsingtao from China), and includes Corona, the number one-selling import, and Modelo Especial, the fastest growing Mexican brand, at 15.6% volume growth.

According to Constellation, two important demographic trends lie behind the appeal of Mexican beer: the growth of the Hispanic population in the U.S. and the coming of age of the Millennials, with some overlap among so-called “multiculturals”—generally Millennial-aged non-whites.

Jim Sabia, Chief Marketing Officer of Constellation Brands Beer Division, noted that soon two out of five new legal-age drinkers will be Hispanic. Despite the possibility that other Latin American beers might appeal to this audience, Mexican brands enjoy the advantage of a long history in the United States.

“As this group grows, we can gather these consumers into our franchise,” Sabia says. “This isn’t a new phenomenon for us. Modelo Especial has been growing by double digits for the last 20 years.”

The marketing challenge for Constellation is to differentiate its brands—which include four pale lagers and one low-calorie pale lager—both from one another and from the stylistically similar leading American brands, such as Budweiser or Coors.

“We position our brands; some are emotionally positioned and some are rationally positioned,” Sabia says. “Think about Corona Extra. We ask consumers to ‘Find your Beach,’ the state of mind that Corona can get you to. But if you think about Corona Light, we talk about the fact that it only has 99 calories, but 18 IBUs. So we talk more about the rational-functional benefits of Corona Light, where with Corona we talk a lot about the emotional benefits.”

Negra Modelo, a more full-flavored brand, is being promoted as a great complement for food. “We are finding some consumers who would like a more complex beer, who are craft drinkers but also like Negra Modelo,” Sabia says. However, he stressed that Negra Modelo, despite being the darkest of Constellation’s beers, displays the easy drinkability of the whole portfolio. “That’s the way we make our beers; they have a lot of taste upfront, but they finish very cleanly.”

As for any comparison to domestic pale lagers, Sabia insists that the chemistry is different. “Just because they’re the same style does not mean their taste profiles are similar,” he says, pointing to higher IBUs and greater complexity Mexican beers.

Constellation is not the only player in the Mexican beer market. Heineken USA goes from strength to strength with Dos Equis, based largely on the continuing appeal, even eight years after its launch, of the “Most Interesting Man” ad campaign—a program catchy enough to have generated Internet memes. “By inspiring consumers to ‘Stay Thirsty’ and create their own personal legend, Dos Equis has delivered an average of 16 percent annual growth for the past three years and continues to gain share in the growing Mexican import category,” says Steve Ward, VP of National Accounts.

Heineken USA has also introduced Desperados, a European lager with Latin American influence. With tequila and barrel-aging notes, “Desperados is targeted toward the on-premise, nightlife, party experience with the drinkability of beer and the image of spirits,” according to Ward.

Anheuser-Busch InBev, pivoting after the sale of the Grupo Modelo rights in the U.S., is introducing the similar-sounding Oculto, described on the label as “blended with beer aged on tequila barrel staves” and blue agave. Despite the clear bottle and Day of the Dead graphics, this beer with a Mexican profile is not actually Mexican-brewed. Oculto joins Montejo, a Mexican pale lager A-B InBev began importing into limited markets this fall.

 

European Prestige

So-called “Euro lagers”—generally richer in flavor, more distinctively hopped and brewed with all malt—are the beers Americans compared favorably with domestic adjunct-brewed lagers in the heyday of imports. Strange now to see many of these European brands (Heineken, Amstel, Harp) losing numbers, but whether to lighter Mexican lagers, more flavorful craft beers or to spirits and wine is not clear.

Heineken, which first entered the U.S. just days after the end of Prohibition, became the top import before being supplanted by Corona in 1997. Despite negative growth recently, “Heineken Lager is back in the black over the last three months and continues to strengthen performance as share of total beer increases,” according to Heineken USA’s Ward. Despite the much-discussed growth of craft beer in recent years, Ward believes that imports are the “hidden success story in the beer category,” explaining, “With national, mass appeal and higher loyalty and repeat purchase rates as compared to the regionality and trial-only nature of crafts, the segment has been able to drive volume through a sustainable growth model.”

The notable exception within the cohort of European beers is Stella Artois, the fifth-largest-selling import, which grew by 19.4% in 2013. Imported by A-B InBev, the brand has always emphasized quality and, frankly, snob appeal, ever since its early campaign in Britain with the tagline, “Reassuringly expensive.” The marketing once stressed French origins. Now, however, Belgian beer is popular among specialty beer drinkers and, with Stella and Hoegaarden, A-B InBev has the only Belgian imports among the big sellers.

Brian Bowden, VP Spirits, Beer, Tobacco and Beverages for BevMo!, a 155-store chain in Arizona, California and Washington, calls Stella Artois “one of the anomalies.” He says, “Stella is doing fantastic for us, and across the board. We’re seeing that in Nielsen reports. I think the attraction of Stella is the way it’s promoted as an upscale Belgian beer. In reality, it’s a lighter-style beer that everybody will enjoy.”

 

A New Way to Parse Imported Beer?

Four years ago, MillerCoors established 10th and Blake, an “independent yet connected company,” to handle both their craft and imported brands. The new approach grouped together beers that shared a similar appeal, rather than a similar national origin—a commonality that some retailers on- and off-premise have also exploited.

Communications Director Mark Rasmussen says, “10th and Blake was created with the understanding that craft and imports—particularly prestige imports—behave differently, and require a different type of selling and marketing and merchandising than mainstream domestic beers.”

With this approach the Molson brands, MillerCoors’ more mainstream Canadian imports, remain with the company’s mass-marketed domestic brands. 10th and Blake handles the prestige or specialty imports, notably Peroni Nastro Azzurro, Pilsner Urquell and Grolsch, along with the Leinenkugel and Blue Moon brands (American-made beers in the specialty vein). The brands all benefit from the idea that “in order to sell craft beer and prestige imports, beer education is paramount.”

Even within the 10th and Blake portfolio, the brands fall loosely into two camps. Speaking of Peroni and Pilsner Urquell in particular, Rasmussen says, “If you were going to put these brands into buckets, it would probably be ‘style’ versus ‘sensory.’ Peroni was founded in the sixties, when “Made in Italy” was this badge of quality and style. From a sales and marketing standpoint, we target beer drinkers in more stylish, upscale accounts,” an approach that echoes the positioning of other European lagers.

Pilsner Urquell, by contrast, leads the other cluster of brands—the “sensory” cluster—that share more of a specialty beer focus. “Pilsner Urquell is the beer that defines a style. It behaves just like a craft beer does,” Rasmussen says. “If you put it in a craft beer account, the velocity numbers are very high. If you put it in a non-craft account, is performance will be average.”

 

Retail Rethinks Import Classifications

Some retailers are also rethinking the monolithic view of imports. Kevin Schulke is the Senior Category Manager for Price Chopper, which operates 136 stores in six Northeast states. Like the MillerCoors / 10th and Blake distinction, Price Chopper treats its Canadian beers separately. “For our purposes, we consider the Canadian brands not to be imports,” he says. “We consider them to be part of our premium class because of the way they are priced here; they’re priced the same as Miller, Bud and Coors.” Given the proximity to Canada, the Canadian brands are important to the chain, with a share of about 7 percent.

Over the past year, Corona and Heineken sales have both lagged at Price Chopper, pulling down numbers for the whole import category (excluding Canadian). The Hispanic population is relatively small in most areas served by Price Chopper, with the exception of Connecticut and the lower part of New York, “There is substantial influence of the Hispanic population there,” Schulke says. “They’re certainly getting more of the Mexican beer share there than are more northern areas.”

With import sales for the chain at 13 percent and craft sales in the mid-20s, Schulke acknowledges that some specialty imports are doing well. “I think that’s the sweet spot for imports, those that can distinguish themselves as something different, because clearly the consumer is looking for better quality,” he says. “An import should be in a position to make that statement as easily as many of the craft brands can.”

On the other coast, the BevMo! stores cater more explicitly to the specialty beer shopper. Brian Bowden say,s “What we are seeing and what we’re pushing is not the mainstream: the Coronas, the Heinekens, the Becks of the world. Our consumer is leaning more towards the Belgian beers. If they’re doing some of the Mexican beers, it’s a little bit different, more Bohemia or Negro Modelo.”

BevMo! offers more obscure beers. “For us, these beers are a little bit more fun to promote and play with,” Bowden says. “It gives the consumer something to go out and hunt and find, and experiment with. What we are doing now with imports and craft is we’re mixing it up with food pairings – have a beer with dinner versus a glass of wine.”

This approach influences store layout, he adds: “We set up craft beers by style, and imports by country. Then we put the domestics kind of in the malt beverage section.”

The big imported brands appeal through elaborate marketing that the smaller brands don’t have—or perhaps don’t want. “With these other beers like the Belgians, you hardly see any kind of advertising; it’s all word-of-mouth,” Bowden says. “When you’re talking about the upscale imported beers, those consumers are going back and forth between the imports and craft. It’s a more educated consumer, and I think that’s why they’re doing well.”

Once imported beers and their supporters are recognized for being as diverse as domestic beers and their supporters, this segment of the beer market should make a lot more sense.

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Cask Conditioned

Irish whiskey is still high-proof strong after so many years of double-digit growth. More than riding on the coattails of American’s infatuation with whiskey, Irish is enlarging the demographic, bringing new consumers into the fold with its easy drinkability and mixability and now intriguing geeks with more nuanced and complex expressions of the Irish spirit. With sales and acquisitions, premiumization, building and expanding distilleries and setting up educational centers, the category is evolving, maturing and planning for long term.

“Irish whiskey is selling so crazy over the past couple of months that we are out of some labels — can’t get them anymore,” says Edward Mulvihill, Director of Sales and Marketing at Peco’s Liquors in Wilmington, DE. He cites Jameson 12- and 18-Year-Old as examples of high consumer demand, as well as the highly allocated Jameson Black Barrel. “That’s selling like crazy,” he says. His customers are also excited about the return of the Paddy and Powers brands to the Delaware market.

“Whiskey is contributing almost all of the value growth of the total spirits category, and Irish is also showing the biggest growth rate within the whiskey category,” points out Sona Bajaria, Irish Whiskey Brand Director at Pernod Ricard. The company’s Irish portfolio includes category leader Jameson, as well as Redbreast, Powers, Midleton and Paddy. New to the U.S. market are two single pot still expressions — Redbreast 21-Year-Old, the oldest variant from this label, joining Redbreast 12- and 15-year, as well as the rare, small-batch Green Spot. The company is also distributing Jameson’s Select Reserve Black Barrel nationally.

“Irish is moving very well in our store,” says Mark Fetter, General Manager at Argonaut Wine & Liquor in Denver. Although Jameson is still the number-one seller, the high-end whiskeys such as Redbreast and Midleton are also moving well. “We don’t promote Irish whiskey much, but we still sell the heck out it.”

 

From the Newsroom

Major news broke in the category in late 2014, when Diageo reached an agreement to sell Bushmills to Jose Cuervo Overseas, with a net payment of $408 million to Diageo. The deal is part of a swap with Casa Cuervo, giving Diageo full global ownership and control of Tequila Don Julio, — including early termination of Cuervo’s production and distribution agreement of vodka brand Smirnoff in Mexico. Bushmills is the number-two player in the U.S. market, with 8000,000 cases sold in the year ending June 2014 and net sales of £75 million. What the ramifications of the change in ownership will be and how it will impact the Irish whiskey category remains to be seen.

A new player with a long pedigree is Irish Mist. Campari America’s whiskey-based honey liqueur of the same name spun off a straight whiskey brand. Irish Mist Whiskey was launched in select markets in 2014, with an SRP of $28.99. The whiskey is a blend of four-year-old liquids that have been triple-distilled and aged in American oak casks.

Irish has had an uptick in sales, reports Joe Fisher, Spirits Specialist at Julio’s Liquors in Westborough, MA. “It’s still not a barn-burner, competing with Scotch, Bourbon or American whiskeys in general. But it definitely has had an increase.” Tullamore Dew is selling well, as is a new product, a Poitin (or white Irish whiskey), from newcomer Glendalough. What’s held Irish whiskey back in the past, posits the retailer, was that only a few distilleries were putting out the various brands, with only limited promotional support. That’s starting to change.

 

Stills Rising

In Ireland, a number of companies are breaking peat on construction of new distilleries. Depending upon whom you talk to, a baker’s dozen or more projects are planned over the next couple of years.

“Our biggest news is the grand opening of our new distillery, which opened in September and brought Tullamore Dew back home to the town of Tullamore in Ireland,” says Category Marketing Director Lisa Pfenning. Parent company William Grant & Sons invested over $15 million in the facility; initial capacity will be 1.5 million cases per anum, with scope to increase that significantly over time. The distillery, says Pfenning, “is a testament to being a family-owned company, which invests in its brands for long term.” The grand opening was commemorated with a special bottling of Phoenix whiskey, a small batch of just 2,014 bottles. The new plant is currently distilling pot still and malt liquids, and expansion is in mind to eventually distill grain whiskey, according to Pfenning. Tullamore Dew will be releasing some new expressions in 2015, she adds.

For its part, Irish Distillers recently finished an expansion of its facilities at the Midleton distillery. “The expansion was the biggest in our history,” Bajaria says. The company is also planning to improve its bottling plant at Fox & Geese.

Breaking ground on a new distillery in Dublin is The Teeling Whiskey Company. The company was founded by Jack Teeling in 2012; his family has a heritage in the whiskey business dating back to 1782. Late last year, the company introduced its third release, Teeling Single Malt, which bottles whiskeys aged up to 23 years and matured in Sherry, Port, Madeira, white Burgundy and Cabernet wine casks. “Our new Teeling Single Malt proves Irish whiskey can have big, bold flavors that appeal to single malt drinkers without losing its distinctive Irish identity,” says Jack Teeling of the premium release.

“The rise of new and proposed distilleries speaks to the demand for Irish globally as it continues to make its place within the whiskey segment,” says Mara Melamed, Senior Brand Manager for Whiskey at Beam Suntory. “We are the Beam Suntory family now, and that’s been great for us.”

The diverse Irish portfolio will benefit from Suntory’s global influence and distribution channels. The 2 Gingers is the fastest-growing Irish whiskey, says the brand manager; from its Minnesota pub origins, the brand went national in 2014. Kilbeggan is benefiting from the Best Kept Secret in Whiskey campaign and a signature cocktail, the Irish Boxer, which leverages the growing cider category. Kilbeggan grew 43% in dollar value and 40% in volume, according to Beam Suntory.

“We carry every label we can because Irish whiskey is growing in Texas like it is in the rest of the country,” notes Jim Detmore, Liquor Buyer at Spec’s Wine, Spirits, Finer Foods, a Houston-based retailer with over 150 locations. About 70% of that business is currently from Jameson. However, Detmore thinks that with the proliferation of new expressions, especially the pot still whiskeys, it will win over more single malt drinkers. “As Scotch prices continue to skyrocket, some consumers will switch over to Irish whiskey,” he predicts.

 

Broadening Irish Appeal

Some observers believe that the Irish category is widening its range of expressions and variants to suit more palates and fit more drinking occasions. Consumers delve into the category via straight-forward, easy-drinking whiskeys then geek out on the more sophisticated offerings. And mixologists and home bartenders are shaking up the spirit in more cocktails.

“Irish whiskey is sweet and smooth, with easy drinkability that invites the adventurous to explore the category,” says Pfenning at Tullamore Dew. “And the complexity of a brown spirit keeps them intrigued.” The brand’s marketing focus remains on its biggest segment—men in the 21-30 age range. “However, a lot of women becoming interested in brown spirits and Irish in particular,” Pfenning says.

“At Julio’s Liquors, we are seeing two different customers. The first consumer is buying Jameson, but doesn’t know much about Irish,” Fisher says. “Then there is the consumer who knows whiskey, who is searching out the other expressions. The Bushmills, John Lane, Redbreast, Green Spot, and Tryconnell. They’re real fans of whiskey.”

Beam Suntory’s portfolio is diverse with a number of Irish brands and many options to appeal to consumers, Melamed points out. The range includes the single malt Tryconnell, the peated Connermara with smokiness similar to Scotch, and single-grain Greenore, with a corn flavor profile that may appeal to Bourbon drinkers.

As for 2 Gingers, “we call it the ‘Converter,’” Melamed says, because it converts newcomers to the Irish whiskey category. “It’s also genderless, because both men and women drink it,” she adds, “and because you can drink it year round, we call it ‘season-less.’” Marketing efforts are built around a core drink strategy, with the Big Ginger and the Skinny Ginger cocktails, which consumers at sampling programs find more approachable than straight whiskey.

“Redbreast, Powers, Midleton are Green Spot are single pot still whiskeys, which is exploding and is positioning itself long term with the premiumization of the Irish whiskey category,” explains Bajaria at Pernod Ricard. Consumers may start with Jameson, then trade up or trade over to other whiskeys in the portfolio. “Redbreast has gained a cult following. You will see more innovation in this area from us. Whiskeys like that lend expertise to the category and appeal to the discerning whiskey drinker.”

 

Other Avenues to Try

Some consumers are led to the Irish category by the novel or the sweet. Poitin, an un-aged spirit (a white whiskey if you will), has been notorious as Irish moonshine for centuries and now a few, more refined examples are breaching our shores. Flavored expressions, a blazing fireball in the overall whiskey category especially among young legal-age drinkers, has only a few adherents in Irish—so far.

“Poitin is a novelty, but it received a much better than expected turnout when I featured it on a Whiskey Wednesday,” marvels Fisher at Julio’s Liquors. “Most people don’t know what it is.” Part of the success of that promotion, which featured Glendalough Poitin, was that the brand rep not only showed how sippable the white whiskey was, but offered easy-to-make cocktails.

At Peco’s Liquors, Mulvihill is hesitant to take a chance on poitin because sales of domestic white whiskeys weren’t as strong as anticipated. “White whiskey is a departure from what most drinkers like about whiskey – the color, caramel, vanilla and spice notes you get from wood,” he says.

Bushmills was one of the pioneers in Irish flavored whiskeys with the release of Bushmills Irish Honey in 2012. Now Pernod Ricard has joined the fray with Paddy Devil’s Apple and Paddy Bee Sting. “The flavored whiskey category is growing significantly, which appeals to both new and existing consumers, probably in the early stages of their whiskey journey,” Bajaria says. “The young consumer that’s into flavored whiskeys is always looking for something new and different, and finding a way to appeal to them remains at the top of our list.” She also hinted that Paddy may add another flavor in the near future.

Argonaut’s Fetter demurs on the subject of flavored Irish whiskey. “Other than Fireball and Jack Daniel’s Tennessee Honey, flavored whiskeys are not making much of a dent in our market,” he says.

 

Looking Toward the Future

With no slackening interest in Irish whiskey and investment in capacities to meet that demand, the category seems set for a bright future.

Mulvihill is taking a wait and see attitude. “The demand is there for good quality whiskey, I just hope we don’t see a lessening of quality to meet that demand,” he says, adding, “Part of the interest for aficionados is hunting for those rare and allocated whiskeys.”

Pernod Ricard is doing its part to maintain high standards. The company has established an Irish Whiskey Academy at its Midleton distillery, offering half- and two-day courses to enthusiasts, Pernod Ricard employees, commercial partners, the media, bartenders and retailers. “We have an open-door policy at Midleton, where we work closely with these new distilleries and their distillers to ensure that the best whiskey is produced in Ireland,” Melamed says. “We think that protecting and maintaining the quality of Irish whiskey will help maintain the category as a whole.”

Fisher adds, “I think it is important for people who are buying Bourbon and Scotch not to forget about Ireland. For Scotch fans there are some great Irish single malts on the market and single grain expressions for the Bourbon drinkers. And there will be still more interesting Irish whiskeys when those new distilleries come on line.”

 

Cream of the Crop

The Irish creams category has much in common with the Irish whiskey segment, and yet they differ greatly. Most creams have a base of Irish whiskey; they share that commonality. But, while the whiskey has been booming in the double-digits, the creams category has a more modest yet respectable growth rate of 2.3% among the top 10 leading brands, according to The Beverage Information & Insights Group. The demographic for whiskey is predominately young males; the audience for creams is mostly female. And both categories have one brand dominating.

“In Irish creams, Baileys is still dominating that hand over fist,” says Joe Fisher, Spirits Specialist at Julio’s Liquors in Westborough, Mass. Other brands the retailer carries include Brady’s, Carolans, and St. Brendan’s. “Baileys I sell year-round; the other Irish cream brands do better in the winter,” Fisher says. “They fly off the shelves during the holidays.”

“Baileys is the number-one selling liqueur in the world and ranked seventh among all distilled spirits sold worldwide, enjoying a 70% share of the total Irish cream liqueur market around the world,” says Stephanie Jacoby, Diegeo’s Director of Liqueurs. The big news for the brand is the release late last year of the new flavor Baileys Cherry Chocolate. The modern update on the classic Irish Cream blends the flavors of luscious chocolate and ripe cherries for a new Baileys taste experience, Jacoby says.

“Cream liqueurs take up about as much shelf space as the Irish whiskeys,” notes Mark Fetter, General Manager at Argonaut Wine & Liquor in Denver. He too says that the biggest-selling Irish cream is still Baileys, but adds that Carolans and St. Brendan’s also sell very well. “It’s a viable category that’s doing pretty well for us.”

Imperial Brands is a newcomer to the creams arena. The company has partnered with the Irish dairy Kerrygold. The liqueur blends aged Irish whiskey, natural Irish cream and chocolate with an SRP of $19.99 for 750ml.

Also new, not a cream but rather an Irish liqueur, is a line of Kennedy Irish Whiskey Infusions from M.S. Walker. Crafted in West Cork, Ireland, a select blend of malts is steeped with various botanicals. Initial varieties include Original, Limed, Honeyed, Spiced and Chillied. Suggested retail is $22 for 750ml.

“Sales of creams and liqueurs generally pick up during the holidays,” says Edward Mulvihill, Director of Sales and Marketing at Peco’s Liquors in Wilmington, Del. “Baileys is our flagship; but we carry a number of other brands like Brady’s, Carolans and Irish Manor.”

“Baileys has always been a brand with strong female connection,” Jacoby says. The brand’s promotions are targeted at that demographic, including the ongoing “Cream with Spirit” campaign, expanded with a new holiday season TV and video spot called “Here’s To Us,” which invites women to come together and raise a toast. To encourage experimentation beyond sipping on the rocks, Baileys has designed a collection of what it calls “stylish shots,” pairing the cream with a base spirit and fun garnish.”

At Argonaut, “we see just as many men buying the Irish creams as women,” Fetter says He also notes that many people enjoy a shot of Irish cream with their coffee.

“Irish creams are more geared toward females, and Irish whiskey is geared more toward young males,” observes Jim Detmore, Liquor buyer for Spec’s Wine, Spirits, Finer Foods, a Houston-based retailer with over 150 locations. He attributes this phenomenon largely to the targeted advertising campaigns of these two segments. “Creams sell pretty well all year long,” Detmore says. “But I don’t see an explosion in sales with creams like I do in Irish whiskey.”

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Crossing the Pacific

What do consumers know, or think they know, about imported Japanese products? According to a number of sake and Japanese whisky experts, misconceptions about the category are plentiful and confusion is rampant.

Since retailers are the gatekeepers who often introduce consumers to sakes and Japanese whiskies for the first time (or at least the first time off-premise), it’s important to understand the misplaced assumptions about Japanese products when educating consumers – especially given rising sales numbers in the category.

Sales of sake were up 1.8 percent in 2013, rising from 1.90 million cases to 1.94 million according to Beverage Information & Insight Group data. Led by Takara Sake and Sidney Frank’s Gekkeikan, the category is showing continued growth off-premise after years of on-premise success (though that success was largely limited to Japanese bars and restaurants until recently).

Meanwhile, sales of Japanese whisky have risen more than 40 percent over the last year in the control states (the only markets for which data is available), led by Suntory’s Yamazaki and Hibiki brands. Hibiki alone has risen from 31,000 cases in 2012 to 112,000 in 2013. While admittedly a small sample size, both brands will undoubtedly receive increased marketing from the new Beam-Suntory.

 

Sake’s Long History

“The House of Gekkeikan was founded in 1637 by the Okura family and has been brewing sake over 14 generations, making it one of the oldest family-operated businesses in the world,” says Yoshi Yumoto, vice president of Gekkeikan at Sidney Frank.

Despite nearly 400 years of innovation, sake still faces hurdles to expanding in the U.S. “We have seven breweries in Japan and one in California, which allows the delivery of fresh sake to most of the world,” Yumoto says. “However, many people don’t realize that sake only has a shelf life of two years, much of which can be spent simply in the time it takes to export to America.”

The variety of sakes available on the market also allows the category to compete against much of the beverage alcohol industry. Gekkeikan’s portfolio, for example, includes 15 sakes and plum wines, including at least one offering in each of the four main sake categories.

“For more traditional sakes from Junmai, Ginjo and Daiginjo, wines would be a direct competition,” Yumoto says. “For the specialties such as Zipang (sparkling sake) it could be an alternative to Champagne and prosecco. Draft sake is a great substitute for beer occasions, and sake is a fantastic base for classic and contemporary cocktails, taking share from the spirits business as well.”

 

Retailers Go to School on Sake

“Education is an integral part of our strategy, and TY KU strives to ensure that retail partners are educated and informed on all aspects of sake,” says Davos Brands vice chairman Guillaume Cuvelier. “Our entire team is Level 1 Sake certified through our master sake sommelier, which allows us to train our wholesalers and retailers, as well as conduct consumer tastings.”

TY KU has supported its education program through POS items, social media marketing, and even sake educational classes to help retailers understand the category better. But it’s tasting and pairing sessions that help the company educate consumers.

“A majority of consumers have encountered sake at Japanese restaurants,” Cuvelier says. “They tend to associate it with a beverage that pairs only with sushi, but actually sake is a better pairing beverage than white wine for many foods since it contains a high amount of amino acids.”

SakeOne also created an online course geared toward distributor sales representatives to educate them on the sake category.

“Because sake is not well-understood in the U.S., much of our marketing efforts are geared toward sake education,” says CEO Steve Vuylsteke. “That includes our POS materials, website and social media pages.”

 

Process and Packaging

Unlike with beer, wine and craft spirits, even the most educated consumers often don’t know how sake is made. That lack of awareness has not been helped by product packaging, which often causes this information to literally get lost in translation (if it’s translated at all).

“When I founded Joto in 2005, I already had the experience of working in food and beverage for Brooklyn Brewery and Belvedere Vodka, and I’d also studied Japanese in college,” says Joto Sake president Henry Sidel. “I spent a lot of time researching and buying sake at retail because I wanted to create sakes with packaging that was accessible to consumers — something that was lacking at the time.”

Joto Sake takes the original Japanese labels on its sake and adjusts them for the American market, keeping the design but replacing the Japanese lettering with descriptions of the product and manufacturing process in English. Sidel says he makes it a point to put the brand name and type of sake on the front of the label.

“Our target consumer is a young, 21-35 year old, educated, craft-oriented consumer who drinks craft beer and spirits and fine wine,” Sidel says. “We’ve tried to make the packaging very truthful and demonstrate our passion for sake to the consumer, while also making it accessible to people who are new to the category.”

 

Hot and Cold Sake

There’s no single answer to whether sake should be consumed hot, warm or cold – often it depends on the type of sake and individual consumer preferences. However, one company is trying to make the serving temperature question as simple as possible.

“We have two types of sake, a Junmai called Hiro Red and a Junmai Ginjo called Hiro Blue,” says Carlos Arana, Hiro Sake’s co-founder and CEO. “We’ve found that most consumers drink chilled sake, so our Junmai has a blue label. For the small percentage of consumers who like sake warm, we also have the Junmai Ginjo with a red label.”

The differences in how a sake must be classified (i.e. Junmai vs. Ginjo) is partially determined by how much the rice is polished, much like whiskey types are determined by raw material make-up. The more the rice is polished, the more the outer shell is removed, leaving a grain that’s of a higher quality.

Arana says that the demand for consumer education is accompanying sake’s increased visibility in the U.S. market. “The category is experiencing a lot of growth, like what happened with tequila a few years ago,” he says. “When Mexican food became more popular, tequila took off; now there are Asian and Asian fusion restaurants everywhere, not just on the coasts, and so you see high growth rates in sake.”

 

Sake Questions Answered

Sake is often misunderstood by consumers, who aren’t sure how to classify it, what to pair it with (other than traditional Japanese food), or how to drink it. These are what sake brand managers see as the most common mistaken assumptions about the sake category.

 

“Many people think sake should be served hot, when in actuality most premium sakes should be served slightly chilled to experience the best flavors and aromas. People also equate sake to having an alcohol content closer to that of a spirit, when in reality the average is between 15.5 and 16.5 percent. Some even have a lower ABV.”

— Yoshi Yumoto, vice president, Gekkeikan Sake

 

“The percentage of the population who isn’t willing to try sake is increasingly small, while the number of people who are passionate about the category is increasing. Nine times out of ten when I walk into a wine shop in almost any market, the retailers are interested in the category and they’re reporting that customers are more interested – they all want to learn about sake.”

— Henry Sidel, president, Joto Sake

 

“There’s a movement in many places around lower calorie options, which should benefit sake. Our sake doesn’t have any additives, and it’s gluten free. There’s a lot of innovation and facts about the category that needs to be better communicated to retailers and consumers.”

— Carlos Arana, Co-founder and CEO, Hiro Sake

 

“Sake drinkers are generally experimental and cross over beverage alcohol categories. This is especially true with Millennials, who thrive on experimentation and authentic drinking experiences.”

— Steve Vuylsteke, CEO, SakeOne

 

“Sake plays a role in boosting a food’s “umami,” which is considered the fifth sense and contributes to the more savory elements in cuisine. This helps neutralize the unpleasant flavors in seafood, as well as gamey flavors in meats.”

— Guillaume Cuvelier, Vice Chairman, Davos Brands

 

 

Increased Interest in Japanese Whisky

 

Since Suntory’s acquisition of Beam Inc. was announced earlier this year, industry experts have speculated about the possibility of more Japanese whisky brands coming to the U.S. market. Beverage Dynamics spoke to Neyah White, Suntory’s U.S. Whisky Ambassador, to find out more about the newly-formed Beam-Suntory and what the company’s plans are for bringing new products stateside.

 

BD: Why has Suntory shied away from entering the U.S. in a large way before now?

 

NW: We’ve been making whisky in Japan for 91 years and it’s only recently that we’ve broken out into areas other than Japan. It wasn’t for lack of confidence – all the whisky was being consumed in Japan, since the market has been on fire there since the 1950s.

Suntory has explored the U.S. market in previous decades in a small way, mostly just supplying Japanese restaurants. It’s been negligible volume until now and almost no marketing, since the product was only sold to certain accounts. About 10 years ago, Yamazaki 25-year-old came in and then our flagship 12-year-old became available.

Once the company brought over the Hibiki 12- and 18-year-old, Suntory had a portfolio here and that’s when I came onboard.

 

BD: What does the Beam acquisition mean for Japanese whisky in the U.S. market?

 

NW: The deal certainly wasn’t made to bring more Japanese whisky to this market – it’s a little more complicated than that, because we didn’t need a stronger route to market. Beam-Suntory is a global prospect, but that being said, it would be silly not to take advantage of the fantastic sales team and energy behind us and not expand in the U.S. I can guarantee there will be more affordable Japanese whisky in the U.S. soon, but I don’t know what that will look like yet.

 

BD: Which spirit category’s consumers do you hope to draw to Japanese whisky?

 

NW: We’re trying to build a new market altogether, so we want to establish Japanese whisky as its own category and stop stealing from Scotch. We want to be looked at separately on menus and in retail stores. It’s not that we’re in competition with anyone, it’s just the process of category development.

 

BD: What differentiates Japanese whisky brands from other whiskies?

 

NW: Considering we only have three production facilities with a dozen brands coming out of them with different formulas and ages, we make a ton of whiskies. We have a number of oak styles and six different still shapes. In fact, nobody varies their oak like we do in Japan. We have five different size barrels made of wood from three continents.

We have a lot of flexibility in what we can produce stylistically and we’re well-positioned for what’s trending. Blends are the future and non-age statements are the future because we want to make as many people as happy as we can by getting our products into their hands.

We’ve put a lot of effort into making better, younger whisky – a lot of retooling and investment. There’s more liquid coming out of the stills than ever before, and we’re smarter with what we’re doing with it than we’ve ever been.

 

BD: What’s the biggest misconception about Japanese whisky?

 

NW: One I’d like to correct is the perception that Japanese whisky is made from rice – that’s number one, two, three, four and five on my list. After that, I like when people say, “What does Japan know about whisky?” and I get to tell them we’ve been working on it for 91 years, so we know a lot.

In retail, I have to push back a little at the notion that we’re craft or boutique. Because we have a small volume in the U.S., we get pegged in with American craft distillers. I don’t have anything against the whiskeys in that category, but those guys are a lot younger and don’t have the heritage behind them that we do. We’re sometimes being put on the wrong shelf at retail, and I’d like to correct that by building out Japanese whisky as a category with its own shelf space.

 

Japan’s Mixable Liqueurs

The most widely known Japanese liqueur, Midori, has seen sales decline from 125,000 cases in 2008 to 90,000 cases in 2013, the most recent year data is available, according to the Beverage Information & Insights Group. The 40 proof melon liqueur, launched by Suntory in the U.S. in 1978, redesigned its packaging in 2013 after adding two RTD brand extensions (Midori Skinny Girl Margarita and Midori Sour) in 2012.

TY KU produces a citrus liqueur, a blend of Yuzu and other Asian fruits with TY KU Soju, the company’s distilled spirit. The 34 proof liqueur is 65 calories per serving, designed to be used in low-
calorie cocktails. The bright green bottle also comes with a built-in light in the bottom that causes the liqueur to glow when activated.

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If You Haven’t Heard About Furmint, You Will Soon

Furmint is the grape that makes the famed Tokaji Aszu. While delicious, it is also rare and expensive, and not as widely known to consumers as it should be.

When Samuel Tinon, a sweet-wine maker in Bordeaux, decided to move to the Tokaji region of Hungary, he was ready to make wine from its Aszu (‘dried up’ or ‘dried out’) grapes — grapes attacked by the desirable botrytis cinerea, or noble rot. These grapes are so concentrated that they have to soak in vats of young wine to dissolve their flavors. But when Tinon moved to Tokaji, botrytis was decreasing in his newly chosen region.

Expecting to make Aszu wines at least three times in a decade, the number of opportunities dropped to a little more than two times in a decade, and sometimes less than that. Due to climate change, a great deal of rain meant either no crop at all (as happened in 2010), or harvesting all of the Furmint grapes earlier — not waiting in the hopes of harvesting Aszu grapes — and therefore making dry white wines from earlier-picked grapes instead.

Asked about an apparent climate change, Tinon says: “We can’t see warming. What we see are erratic vintages with severe or extreme conditions — hot or cold, wet or dry. In the past, Tokaji Aszu was harvested at the end of October and the beginning of November, with botrytis and high sugars. This is still happening, but more often we have to change our production to dry Furmint wines without botrytis with an earlier September harvest, bigger crop, more security, more reliability and with a chance to get your money back.”

With winters becoming a bit warmer like in 2014, the fruit- fly population is able to ‘over-winter,’ and begin reproducing very early in the season, causing the spread of bad rot. This was told to me by Ronn Wiegand, MW, MS and Publisher of ‘Restaurant Wine,’ who is making wine with his father-in-law in Tokaji.

Ironically, Comte Alexandre de Lur Saluces, owner of Château de Fargues and former co-owner of the fabled Château d’Yquem, said that although his area is getting warmer and drier, he feels that “global warming could be a help for Sauternes, and enable any of those who chaptalize these wines to avoid the practice.” He continues, “Many people in Sauternes are producing dry white wines. Their production is increasing, and even Château d’Yquem is producing more dry wine.”

Hungarian winemakers from Tokaji are increasing dry white wine production as well. A new website, www.FurmintUSA.com, was created by 12 member wineries that presented a Furmint tasting in Sonoma, CA in November 2014. The Blue Danube Wine Company, which imports many wines from all over Hungary, has six producers from Tokaji that are producing dry Furmint wines (many from single vineyards). Martin Scott Wines imports Royal Tokaji’s dry Furmint wine, coming from the company co-founded by Hugh Johnson and Ben Howkins, in London. These wines are all delicious, showcasing the minerality of volcanic soil.

Considering that in 2014, Hungary abolished the categories of Tokaji Aszu 3 and 4 Puttonys (baskets of Aszu grapes), leaving only the sweeter 5 and 6 Puttonys examples, the door has been opened for Dry Szamorodni. This rich, dry white (amber colored) wine from Furmint grapes has a portion of grapes which have some botrytis co-fermented to dryness, and also uses some flor yeast, giving the wine some fino or amontillado Sherry flavors.

This wine is very laborious and time consuming to produce. The 2007 Tinon Dry Szamorodni is the current vintage in the market, released after a minimum of 5 years of aging. This is a unique wine, a keeper, and is important to the history of Tokaji, linking the modern dry wines to the traditional Aszu wines.

Both you and your customers should taste these wines to get ahead of the curve.

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Retailer Wine Selections: Malbec

The Beverage Dynamics National Retailer Wine Panelists recommend Malbecs from Argentina, Chile, France and California.

 

We asked members of the panel to review some of their favorite Malbecs. As always, these selections include brief tasting notes, a rating and the wine’s retail price (which varies from store to store and market to market).
If you’re a retail beverage professional who would like to learn more about participating in the panel, call Editor Jeremy Nedelka at 203-855-8499 x213 or email him at jnedelka@specialtyim.com.

 

FIVE STARS

 

(98) Altamira Navigato Grand Reserve Malbec 2008 (Argentina). This is one serious Malbec. High altitude fruit from the Uco valley. Old vine designation utilizing plantings from 1947. Exotic blend of Malbec, Cabernet Sauvignon, and Cabernet Franc. Aged 24 months in French oak. Intense purple color, soft aromas of apricot, plum, and bright cherries. Elegant, supple mouth feel, and a long smooth finish. Perfect for the holiday dinner season. ($52)

 

(97) Saracina Malbec 2011 (California). John Fetzer has been producing great organic wines since the 80s. Now his Saracina winery continues the passion. Vineyard designated grapes shine is his California interpretation. Rich, full-bodied, with soft hints of raisins, plums, coffee, and hints of dark chocolate. Soft supple tannins lead to a long lingering finish. ($45)

 

(96) Susana Balbo Malbec 2012 (Argentina). Argentina’s flying winemaker show her talents with this one. Malbec and 8% Cabernet make this a uniquely styled wine. Aromas of violets, black cherries, and plums dominate. Rich and supple, with a strong tannic backbone, this finishes with vanilla, tobacco, and dark chocolate flavors. ($37)

 

(95) Lionel Osmin Cahors 2011. Classic Old-World Malbec (100%) from a great producer. Aged 10 months, 25% in oak barrels. The color is deep blue, almost purple! Aromas of black fruits, mocha, and “cigar-box” spiciness lead to bold flavors of blackberry and plum balanced with firm tannins and a hint of lovely “terroir.” Nice now, it will cellar for several years. ($20)

 

(95) Chateau Nozieres Ambroise de l’Her Cahors 2010. Ninety percent Malbec and 10% Merlot aged 14 months in oak barrels. Blue/black in color and viscous in the glass. A bouquet of lilacs and berries leads to lovely flavors of blueberry and spice with a touch of sweet/toasty oak. Tannins are supple with a touch of earthiness on the finish. Very French, very good! ($20)

 

(95) Lionel Osmin La Reserve Malbec 2011 (France). An excellent example of Malbec (100%) from Southwest France where the grape’s origins are. Aged 10 months, 80% stainless, 20% oak. The wine has a beautiful deep-blue color. Aromas and flavors of berry, black cherry, coffee, and some sweet spice finish with soft tannins and a hint of “terroir.” A great introduction to “Old-World” Malbec and a great value! ($13)

 

(95) Decero Malbec Remolinos Vineyard-Agrelo 2011 (Argentina). The vineyard is located at 3,500 feet in Mendoza’s sub-region of Agrelo where the grapes are hand-picked. The wine is aged in French oak barrels for 14 months. A superb example of modern Argentine winemaking. A floral nose leads to concentrated flavors of sweet/tart red fruits with nuances of cedar, spice, and vanilla. The tannins are firm and linger with some lip-smacking acidity. Pair this with a good steak! ($23)

 

(95) Luigi Bosca Malbec 2011 (Argentina). Intense with sweet tannins, ripe red fruits, cassis and black pepper tones. Pure and full-bodied. This bold gem pairs nicely with braised short ribs, stews and game. ($17)

 

(94) Achavel Ferrer Finca Bella Vista 2010. Move over Bordeaux – this is a keeper! Brooding, dark and powerful with ripe tannins, elegant minerality and dark chocolate. Fine example of a collectible cellar wine. ($100)

 

(93) Altamira de los Andes, Reserve Malbec 2009 (Argentina). High altitude Malbec sourced from three of the best growing areas in the Uco valley. Aged 18 months in oak, this wine has beautiful violet color in the glass, with intense aromas of cherry and vanilla, with just a hint of dark chocolate. A formidable classic Malbec. ($45)

 

(93) Achaval Ferrer Malbec 2012 (Argentina). Full, bright ruby-red. Porty, yet high-pitched aromas of blackberry, kirsch, blueberry and violet are complicated by balsamic and black olive nuances. Dense, thick and superripe but still with noteworthy clarity to its dark fruit and fresh fig flavors. A nutty oak element is leavened by insinuating acidity. Ultimately displays a very attractive sugar/acid balance and finishes with good lift. ($31)

 

(93) Vina Cobos Felino Malbec 2012 (Argentina). Felino Malbec carries a deep magenta hue and aromas of dark berries and anise. On the palate, intense, pure flavors of just-picked raspberries, black plum and graphite unfold in velvety layers. Exotic notes of ginger and white pepper carry through the mid-palate to intermingle with firm tannins and notes of cedar on the finish. ($21)

 

(92) Vina Solaya Malbec 2013 (Argentina). Dark ruby red, this elegant Malbec has aromas of red currants, blackberries, and plums, with notes of pepper and clove. Flavors of black cherries and juicy plums fill the mouth with hints of cedar and vanilla on the finish. ($15)

 

(92) Salentein Numina 2012 (Argentina). A Bordeaux blend from Argentina’s Uco Valley that is 62% Malbec, smooth and elegant with fine tannins, complex black fruit notes and a long finish that would indicate ageability. ($43)

(92) Mascota Vineyards Malbec ROD (Argentina) – A deep, savory Malbec with a core of dark plum and spice box; the flavors intermingle effortlessly with just the right amount of oak; finishes with a pleasurable, silky texture. ($14)

 

(92) Colome Malbec 2012 (Argentina). This is definitely the whole milk of Malbec, with some of the highest elevation fruit on the planet, the grapes have a rich concentration of flavors which show dramatically thru every sip. Savor this Malbec with a grilled steak or simply after dinner by a fire on a cold winter night. ($28)

 

(92) Layer Cake Malbec 2012 (Argentina). A classic Malbec. Big, brooding, black fruit, then rich earth, truffles and dark cocoa are at the front. The vineyard is at its core, always evident with the thread of minerality that the deep alluvial cobblestones lend. This wine is so elegant in the mouth with fresh-picked blackberries, hints of chocolate and wisps of smoked bacon. ($17)

 

(92) Altos Las Hormigas Malbec Reserve 2011. Concentrated cassis, peppercorn and blueberry with a touch of mocha on the finish. Medium bodied structure can handle a good steak. ($25)

 

 

FOUR STARS

 

(91) Nieto Camilla Malbec 2014 (Argentina). This hedonistic style Malbec is fruit forward with attractive notes of ripe red cherries and cola. Full body, with firm and polished tannins and a long beautiful finish. An excellent paring with burgers, steak and chicken off the grill. ($15)

 

(91) Achaval Ferrer Malbec (Argentina). Big, bold and flavorful, the kind of wine that made Argentine Malbec so popular. ($30)

 

(91) Cruz Alta Malbec (Argentina). A Malbec crafted from three high altitude vineyards in the mountains of Mendoza; inky and concentrated with robust flavors of black fruit, cigar box, and chocolate; smooth finish with good length. ($14)

 

(91) Santa Ana Malbec Reserve (Argentina) – Fragrant with aromas of black cherry and lavender; well balanced between the intensity of the plum and cedar flavors and the structured, crisp finish. ($13)

 

(91) Vistamar Sepia Malbec Reserva (Chile) – A lively, ripe Malbec with bright flavors of black cherries and hints of espesso bean; spicy tannins and a slightly creamy texture are woven together in a pleasurable finish. ($12)

 

(91) Delatour Malbec 2012 (France). Flavor profile of ripe plums, dark cherry fruit and framed with layers of tobacco, coffee and toasty oak. Great with veal, pork and chicken is brown sauces. ($9)

 

(91) Catena Malbec 2012 (Argentina) This Malbec is rich and silky with bold dark fruit. The finish has a hint of leather and dark chocolate with a long, lingering finish. This wine definitely highlights the varietal beauty of Malbec. ($23)

 

(91) Antucura Malbec 2012 (Argentina). A deft French touch on this Argentinean classic. Extended maceration in stainless steel and minimal oak aging (3 months), produce a rich elegant wine with beautiful color enhanced with fruit flavors of plums, blackberries, and bright cherries. Very balanced tannins, hints of spice, and a smooth finish. ($31)

 

(91) Mapema Malbec 2011 (Argentina). The “Ma” comes from Mariano di Paola, the “pe” comes from the people at the winery, and the “ma” is the magic they create as a team. One hundred percent high-altitude Malbec, aged 12 months in oak. Cherry notes balanced with a hint of peppery spice. Perfect for grilled meats. ($30)

 

(91) Fabre Montmayou Malbec 2012 (Argentina). All estate grown fruit from 50 year old vines in the Cuyo regions produces complex, full bodied flavors. Light oak aging lets the rich, chewy, fruit shine through. ($28)

 

(90) Alamos Malbec 2013. Smooth, easy intro into Malbec. Up front fruit of dark plum and raspberry. Easy tannins on the finish. ($10)

 

(90) Santa Julia Malbec Reserva 2013 (Argentina). The Malbec Reserva is a slight step up, which adds 10 months of French oak. Complex and toasty, raspberry and cherry flavors mix with lightly herbal tones on the nose. Full-bodied and slightly tannic, the flavors hold up well to a variety of grilled meats. ($15)

 

(90) Flichman Lambec Roble (Argentina) – A rich and expanisve profile that coats the palate; savory aromas and flavors of red fruit, oak, vanilla, and spice; sure to please those who like a ripe yet elegant Malbec. ($11)

 

(90) FLM Malbec Coleccion (Argentina) – Round and plush; juicy flavors of plums and blackberries with a touch of coffee; finishes smooth with oak and floral notes. ($12)

 

(90) Kiwi Cuvee Malbec (France) – Wonderfully fragrant and hearty on the palate; possesses aromas and flavors of cherries, baking spices, and minerals; a crisp profile and finish makes this Malbec an excellent food pairing wine. ($11)

(90) Luc Pirlet Malbec (France) – Aromas of red fruit and bramble; the palate mimics the nose with additional hints of blueberry and spice; a friendly, approachable Malbec with plenty of character. ($12)

 

(90) Tamari Reserve Malbec 2013. (Argentina). One hundred percent Malbec. Floral notes in the nose followed by flavors of black cherries, plums and a hint of chocolate. Try it with veal piccata. ($13)

 

(89) Colores del Sol 2012. Bright, medium body with inviting aromatics of fresh berries and cassis. Nice everyday sipper. ($8)

 

(89) Catena Malbec 2012 (Argentina). Deep purple in color. Aroma of dark fruit. Plum and dark cherry flavors. Firm tannins with long finish. ($20)

(89) Tierra del Sol Malbec 2012 Single Vineyard, La Rioja (Argentina). Blackberry and plum fill the bouquet, lightly framed with mild oak. Medium bodied and smooth, it possesses juicy blackberry and black cherry flavors. Soft tannins keep it inviting and it has the structure and grip to easily handle grilled meats and vegetable. ($12)

 

(89) La Rousse Malbec 2013 (France). Cot is the French synonym for Malbec. More robust and acidic than its South American cousins, it offers more hints of tobacco, earth, and coffee than fruit favors. Heavier in style with rich depth and complexity. ($20)

 

(89) Domaine La Berangeraie, Cuvee Maurin, Cahors 2010 (France). Cahors is the traditional home to the Malbec grape in southwest France. Two generations of the Berenger family produce this wine on their 12 hectare organic estate. All hand pruned, harvested, and sorted. Good tannins, tightly wound. Leave it a little time to open up. Velvet in a glass! ($35)

 

(89) Lyeth L de Lyeth Malbec 2011 (California). Balanced with flavors of blueberries, plums, vanilla and sweet oak. A satisfying finish that allows it to work well with grilled steaks. ($13)

 

(89) Lunta Malbec 2011 (Argentina). Eighty-plus year average age vines lend great complexity to this wine. Very youthful on the nose, with intense aromas of currants, plums, raisins, and a hint of licorice. An elevation of 3300 feet helps produce wines perfect for beef or lamb dishes. ($30)

 

(89) Cafetin tos Malbec 2008 (Argentina). This is a nod to the classic coffee bars of Buenos Aires, and the spirit of creativity and independence that typifies their winemaking art. Young vines, aged 12 months in oak yield a softer, easy drinking Malbec. Beautiful color, black fruit aromas, and a subtle sense of spice, lead to a smooth finish. Great easy drinking wine for everyday. ($28)

 

(89) Colome, Malbec 2011 (Argentina). Sourced from some of the highest vineyards in the world, showcasing notes of spicy pepper and purple flowers on a medium bodied frame. ($30)

 

(89) Clos de Los Siete Malbec blend 2010 (Argentina). Savory and earthy aromatics, a polished texture with a black licorice note to the fine grained, ripe tannins. ($25)

 

(88) Tinto Negro Malbec 2013 (Argentina). A best buy, medium-bodied with bright black fruit notes and surprising flavor for the price. ($10)

 

(88) Lazos Malbec 2013 Mendoza (Argentina). This deep ruby red is full for fresh fruit flavors, with raspberry, blueberry and plum as well as some savory spice accents of cocoa and vanilla. Smooth tannins and lightly toasted oak add dimension, and a hint of truffle lingers in the finish. ($10)

 

(88) Bodega Norton Malbec Coleccion Varietales 2013 (Argentina). Plenty of plums, strawberries, black fruit and currants. Easy-to-drink and matches well with turkey burgers and veggie topped pizzas. ($8)

 

(88) Ben Marco, “Expressivo” Malbec Blend 2011 (Argentina).   Aromas of sweet vanilla, cherry liqueur, cedar and toast; mouth filling flavors mirroring nose, full and round with dusty woodsy tannins. ($30)

 

(87) Trapiche Broquel Malbec 2012 (Argentina). Purple in color. Dark fruit plum nose. Plum, cherry. pepper flavors. Moderate tannins. Nice finish. ($13)

 

(87) Bousquet Malbec 2013 (Argentina). Purple color. Dark fruit, blackberry aroma. Plum, cherry, spice flavors. Moderately firm tannins. Long finish. ($13)

 

(87) Lariviere Yturbe Malbec 2010 (Argentina). This Franco-Argentinean collaboration is a family affair. Miguel Lariviere and his daughter Leticia run the project. Beautiful spice and fruit notes dominate the nose. Good mouth feel, supple tannins, with hints of coffee and vanilla on the finish. ($29)

 

(87) Argentine Revolution Malbec 2012 (Argentina). Beautiful deep purple color in the glass leads to softer, round tannins, with a touch of dark chocolate on the creamy finish. Light oak aging complements the Cuyo valley sourcing. Perfect introductory Malbec! ($18)

 

(86) Dos Fincas 2013 (Argentina). Floral aromas with notes of sweet tea; light to medium bodied, an easy going Malbec sourced from two vineyards. ($13)

 

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Trendspotting: How I Grew My Wine Business Using a P2P Loan

With more than 1,300 wine and liquor stores doing business in New York these days, standing out from the crowd in the city that never sleeps can be pretty tough. In the past few years, demand for wine has been booming in Manhattan as locals develop their palettes and explore new grapes, whether it’s a spicy zinfandel from the Napa Valley or a crisp sauvignon blanc from New Zealand.

I opened Renaissance Fine Wines & Spirits with my business partner in 2002 on the Upper West Side, and for more than a decade business flourished in our growing neighborhood. But as the popularity of wine increased, so too did the wine stores opening for business in neighborhoods across the city — including our own. Once three new wine and liquor stores opened nearby, my business partner and I realized we needed to innovate to stand out from the pack, enhance consumer loyalty and grow our customer base.

As graduates of the Wine & Spirit Education Trust, we decided there was a huge opportunity to harness our passion and do something truly unique in the wine education space. As the industry grew, we wanted to give our customers the skills to recognize great values and perfect food pairings. With that came the concept of the Vino Maestro Wine School — an online wine education and tasting program.

Tasting wine is an integral component of the learning process, but instead of having students travel to the classroom, we wanted our customers to experience the program and wines from the comfort of their own homes. Collaborating with a professional wine instructor, we began creating video lessons with a handpicked selection of wines.

Building out this kind of concept was going to require a strong injection of capital, so early on in the process we visited our local bank branch armed with a detailed business plan and strong financial projections. Unfortunately, due to tougher regulations since the 2008 financial crisis, we learned that the process to get a traditional bank loan had become extremely cumbersome and we needed a more efficient way to receive the capital needed to launch our new product in time.

We decided to investigate nonbank sources of financing like peer-to-peer (P2P) lenders. P2P lenders function essentially as matchmakers for businesses looking to borrow with investors who want to lend — at a price everyone is happy with. The transactions take place online, which cuts out the long wait times and complexity of dealing with a financial intermediary like a bank and the high cost of dealing with a merchant cash advance.

Funding Circle, a San Francisco-based online marketplace lender, was one of the non-bank lenders that caught our eye. The online application process was simple and quick, and we were able to see if we qualified for a loan within minutes. Shortly after, I was on the phone with an account manager from Funding Circle talking about their term loan product, my business plan and how a loan would make a positive impact on our bottom line.

Banks may offer slightly more attractive rates, but Funding Circle’s process was quick and easy and their terms were much more reasonable than credit cards or other cash advance financing options. Besides the speed and transparency, what makes nonbank lenders like Funding Circle particularly interesting is that they use big data and technology to evaluate a business’ ability to repay a loan. So, while our credit history was still an important gauge of our financial and operational stability, so too were metrics like real-time cash flow and our passion for the market opportunity.

As a small business owner, I know firsthand that building a successful business requires a lot of work, perseverance and access to capital to invest in growth. Money can sometimes be tight for entrepreneurs, which is why it’s so important to understand all of the financing options available — including opportunities from the new, non-bank lenders.

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