Blog Entries Tagged as alcohol

For Your Consideration...

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Category: General Blogs  |  Tags: alcohol

We tend to use the term “Emotional roller coaster” so much in our every day lives, both personal and professional, that we’ve become numb and oblivious to just how much of a cliché it’s become. But there really is no better way to describe major global beverage alcohol news from the past month and a half or so. Reading the headlines of the past six weeks has been akin to watching all of the most hackneyed cinematic clichés play out on screen.

There’s the tragic romance in which the overtures of a much more well-to-do suitor (SABMiller) are ultimately rebuffed by the object of affection (Heineken). Of course, that unrequited pursuit may have been in defiance of a forced marriage (AB InBev).

Then there’s the tale of the rebellious, sardonic hipster whose tough, above-it-all exterior really hides a delicate vulnerability (Pabst). That all comes to the surface when the rebel falls for an exotic stranger from a faraway land (Russia).

And, especially this time of year, there has to be plenty of Oscar bait. And who doesn’t like a good, sweeping epic? It’s the story of a nation in conflict (Scotland) and the common hard-working folk (The Scotch whisky industry) just trying to get by as the world around them is nearly torn at the seams. I say ‘nearly,’ as at the 11th hour, that world was forged back together.

Okay, I should get serious for a bit, put on my movie critic’s hat, and tackle each of these in reverse order.

The Scotch Whisky Association sees last month’s “No” vote on Scottish independence as the dodging of quite a bullet. If Scotland had left the United Kingdom, uncertainty and instability in the Scotch market would prevail. Whisky exports already have been falling. If the industry suddenly faced new tariffs as it tried to ship to its biggest markets in the EU—which it would have to go through a potentially lengthy process of rejoining as its own entity—it wouldn’t bode well for the bottom line.

On the Pabst development, I was surprised (well, not really) at how many people expressed shock that the brand that’s enjoyed a renaissance at the hands of American hipsters would be (*GASP*) foreign-owned (and by investors in Mother Russia, no less). To that, I say, “Get over it.” Pabst has been playing ownership musical chairs for years. It’s essentially a trademark holding company, as it doesn’t operate its own breweries. Drinkers shouldn’t get too upset about something as abstract as a trademark. It’ll be business as usual.

As for the AB InBev-SABMiller dance and the SABMiller-Heineken dalliance: That’s a little more serious. If a merger between the two biggest brewers were to take place, it’d essentially create an entity that’s responsible for nearly a third of all beer volume in the world and closer to 40 percent of its revenue. That’s pretty intimidating. But I wouldn’t get too scared because there are far too many regulatory hurdles to jump before such a combination could become a reality. As for Heineken, my hat’s off to the family for, well, wanting to keep it in the family (at least for now). Though, it would’ve given SABMiller a solid and rapidly growing Mexican brand (Dos Equis) with which it can compete directly with the Modelo business that AB InBev now owns.

But I’ve had enough of these manipulative, heart-string-tugging films. I’m in the mood for a feel-good comeback story. And that’s exactly what’s happening in Kentucky. If there’s ever been any doubt that the bourbon renaissance is here to stay, just look at what Diageo’s been up to over the past couple of months. The company broke ground on its $115 million Bulleit Distilling Co. distillery and cut the ribbon on the visitors’ center at the rejuvenated historic Stitzel-Weller facility. When the world’s biggest spirits market gives the Bluegrass State and its distilling heritage that much of a vote of confidence, it makes me eager to get off that chaotic emotional roller coaster in favor of another cliché: raising a glass.

Figuring Out Flavors

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Category: General Blogs  |  Tags: alcohol

 

 

Flavors—sometimes you want ’em, sometimes you don’t. At least that seems to be what is going on in the beverage business these days. For some categories, the greater variety of flavors a beverage can come in, the better. For others, coming out with a bunch of new flavors may actually do more harm than good. The trick is figuring out exactly where your brand falls when it comes to flavor innovation.

So, which beverage categories are ripe for more flavor innovation and which appear to have peaked in this regard?

One category that could see more flavor innovation in this new year is CSDs. It’s a category that could use some new excitement to help reverse declining sales, and some innovative flavors—tastefully done, mind you—could be just what it needs. So far, much of the flavor innovation in soda has been designed to appeal to younger drinkers. But I’ll bet that some grown-up flavors, using more wholesome ingredients, could catch the interest of older drinkers.

On the alcohol front, the new year brings some very interesting developments when it comes to flavors. For one thing, a study released just as 2013 was coming to a close revealed that flavored vodkas—an enormously popular trend which has really boosted this category—may have already peaked in popularity. Restaurant Sciences LLC, , an independent firm that closely tracks food and beverage product sales throughout the foodservice industry in North America, reported that the sales of on-premise flavored vodkas fell 11.7 percent from Q3 2012 to Q3 2013. Analyzing more than 170 million drink orders, the organization uncovered that flavored vodkas lost nearly one percent of their on-premise spirits market share from Q3 2012 to Q3 2013. So, it appears that while flavored vodkas remain quite popular, consumers may not be open to any additional flavors for their vodka in 2014.

Another spirits segment where flavors can be tricky is whiskey. The Wall Street Journal reported that Brown-Forman Corp. Chief Executive Paul Varga plans to take a “conservative” approach to rolling out new flavors for Jack Daniel’s. While Tennessee Honey, introduced in 2011, has done great, Varga and his team have correctly realized that for some beverages, too much flavor can go too far.  After all, when it comes to a heritage brand like Jack Daniel’s, already savored so much for its inherent flavor, too much tinkering can probably do more harm than good. 

I'm Making a Spirited Plea

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Category: General Blogs  |  Tags: alcohol

I was walking the floor at the Holiday Buying Show in New York, jotting down notes and sampling a few brands when I was approached by a woman with a clipboard and a handful of Japanese beverage brochures. She must have had a keen eye for media as the word “press” on my attendee badge would have been barely visible from more than a handful of feet.  “Would you like to taste Japanese spirits?” she asked me. Of course I would.

I was intrigued and impressed by her assertiveness—I’ve been to literally hundreds of trade shows and beyond a few stray hired hands unenthusiastically handing out postcard-size flyers promoting particular exhibitors, marketers rarely venture out beyond the confines of their booths to proactively increase traffic at their stands. As I learned when I reached the array of saké producers at the Japanese beverage alcohol pavilion, shochu marketers are really determined to broaden awareness of their venerable spirit to U.S. consumers and beyond.

I definitely have had my share of exposure to the drink. A few years ago I spent an evening at a shochu bar in Tokyo, where a local gentleman, who was eager to practice his English explained that younger Japanese (legal drinking age) consumers are moving away from saké—something they view as their parents’ drink—and toward shochu. That’s part of the reason why there’s such an opportunity in the U.S. for sake because it still has relatively low awareness and market penetration here and virtually nowhere left to go on its home islands.

One of the challenges stateside saké marketers have been facing is a lack of distinguishable branding—there’s a great deal of visual homogeneity among many of the brands on my local store’s shelves (not to mention, difficult-to-pronounce names for Westerners), despite the fact that there are amazing variations in flavor. As I mentioned in a previous column, that’s starting to change as marketers bring dynamic design elements and simple, memorable names to their products. There are similar hurdles for shochu marketers. But I do think that will change for shochu too, as importers ramp up their marketing efforts and continue to figure out how to market in the U.S., beyond the specialty shop and Japanese restaurant or izakaya.

Of course, bottles need to contain accessible products and I’m convinced that once more legal-drinking-age consumers sample shochu they’ll be converted. On the rocks most are remarkably drinkable with tremendous flavor complexity. Those made from barley provide a good bridge for whiskey drinkers. Those made from rice are good for those who’ve already discovered sake, as many of the aromatic elements are reminiscent of their rice-based cousin. And then for something truly unique and delightfully complex, there’s shochu distilled from sweet potatoes. Meanwhile, rum drinkers might find brown sugar-based shochu appealing.

I hope to see shochu—and the hotbed for shochu production, the Japanese island of Kyushu—represented at a larger number of industry trade shows with even more foot traffic from curious distributors and retailers. Kanpai! 

Drink-In Movies

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Category: General Blogs  |  Tags: alcohol

When it comes to the beer-versus-wine-versus-spirits image wars, one need look no further than the local multiplex or the nearest home theater system. Wine traditionally has been put on a romantic pedestal with sprawling establishing shots of lush vineyard landscapes and dreamy little picnics in those idyllic settings, punctuated with clinking glasses of pinot noir. Even when the lead characters are severely emotionally and morally compromised, as in everyone’s favorite go-to grape movie, “Sideways,” wine still comes out of it with its religiously exalted status intact. But for every “Sideways” or “Bottle

Shock,” there’s a “Take This Job and Shove It” (I know I’m dating myself here) and “Beerfest.” Beer is relegated to the role of social lubricant for redneck layabouts and over-imbibing fratboys.

And you can forget about spirits. Anytime characters drink Scotch or bourbon on screen, they’re usually slumped over a bar, sipping to forget personal crises. Or they’re just plain evil.

Dennis Hopper’s “Pabst Blue Ribbon” exclamation may be the more iconic “Blue Velvet” quote, but one of the first lines Hopper’s sadistically depraved Frank Booth utters in David Lynch’s classic is “Where’s my bourbon?” Not exactly a clip the Kentucky Department of Travel is using in its tourism videos.

Now, I know what you’re thinking. “What about ‘Sex & the City’ and its impact on the modern cocktail culture.” I’m not talking about mixed drinks that are so diluted by fruit flavoring and pretty colors that that the base spirit barely expresses itself. I’m talking about connoisseur-oriented distillates, enjoyed neat, on the rocks or in a carefully crafted classic drink that retains the notes and nuances of the high-proof liquid.   

Then you’ll say, “What about ‘Mad Men’ and the classic cocktail mini-renaissance it inspired?” Well, if you haven’t realized by season six that Don Draper is a functioning alcoholic with a therapist’s smorgasbord of issues, then I don’t think you actually have AMC.

Filmmakers (and TV show runners) just don’t seem to be capturing spirits and beer with the same flattering lens and lighting that they are wine.

But there is hope. I recently saw Ken Loach’s “Angel’s Share,” which combines a story about the strife of the Scottish working class with a bit of a mini “Ocean’s Eleven”-style heist and an absolute love letter to Scotland’s most venerated product. A must see, especially if you’re in the Scotch whisky business.

On the malt-and-hops front, next month brings the release of the indie romantic dramedy “Drinking Buddies.” Having already seen it, I must say, it really nails the vibe of the craft beer industry. Its main characters work in a Chicago brewery—Revolution, a real craft outfit whose name wasn’t changed for the film—and the opening title sequence featuring enormous sacks of malt, mash tuns, hop pellets, fermenting tanks, kegs and, of course, a delicious brew being poured is like porn for beer geeks.

Let’s hope that these two films are signs that the tide is slowly turning and that the cinema’s liquid love affair becomes a bit more inclusive.

Savor & the City

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Category: General Blogs  |  Tags: alcohol

The Brewers Association traded the Beltway for Broadway for the sixth edition of Savor, its craft beer/food pairing extravaganza, hoping the one-year detour to the Big Apple would boost craft’s profile in the eyes of the largest media market in the U.S. and, arguably, the world.

The annual rite of late spring had made its home at Washington, D.C.’s National Building Museum—save for its inaugural edition, which was at the Andrew W. Mellon Auditorium.

“Being in New York puts craft brewers on center stage,” Brewers Association craft beer program director Julia Herz told Beverage World during the event at Manhattan’s adjoining Metropolitan Pavilion and Altman Building. “In D.C. we had Brewers on an amazing stage, but New York is a great home for a year and we’re reaching a different audience.”

The organization already had hosted 6,500 at the Craft Brewers Conference (CBC) in the nation’s capital in late March and decided one event in the first half of 2013 in the District was enough. Savor had provided an opportunity for brewers to meet with their legislators, but CBC fulfilled that objective this year.

 “Why not come to the biggest media and food market?” Herz added.

Missing from last month’s event were the National Building Museum’s stately, atrium-style high ceilings and towering columns, but the classy, low-lit cocktail party vibe was still intact at the New York venue. As was the foodie’s paradise of culinary creations prepared under the direction of chef Adam Dulye, designed to pair with everything from a pilsner to a Russian imperial stout.

But despite New York City’s cred as a media and gastronomic center, the city still lags behind cities like Portland, Ore, Philadelphia and Chicago when it comes to being considered a “beer town.” That’s been gradually changing, especially with the efforts of established locals like The Brooklyn Brewery—the No. 11 craft brewer in the country this year celebrates its 25th anniversary—and Sixpoint Brewery. And a few new ones are opening in the city each year. Additionally, distributors like Manhattan Beer and L.Knife-owned Union Beer have been leading wholesalers of craft. New craft-centric beer bars seem to be opening every month as well; a local organization has created the Good Beer Seal to recognize such destinations.

Still, New York’s been a tricky market, especially when you consider how much competition there is for the drinker’s attention. And, of course, space isn’t something that’s in particular abundance in New York City.

Many craft breweries outside the region—including larger, established ones like Savor supporting brewery New Belgium—have yet to enter the market.

John Bryant, co-founder of Spokane, Wash.-based No-Li Brewhouse had considered the market, but has been hanging back, largely because of packaging issues.

“We were looking at New York and we were advised early on that the 22-ounce bottle package, which is what we’re in, wasn’t really relevant to the city,” Bryant explained as he poured from those same bottles of No-Li’s Jet Star Imperial IPA and Wrecking Ball Imperial Stout. “The were saying a lot of the smaller stores, up and down the street, are carrying six-packs, but they weren’t doing a lot of 22s on the shelf….But we’ve since been learning that with the 22, people are actually starting to experiment more.”

Bryant said he hoped Savor would attract a new level of attention. “Savor is in the capital of media, food and culture,” he said. “Boston’s great and North Carolina’s great, but New York’s where trends start.”

Eugene, Ore.-based Ninkasi Brewing Co. isn’t available in New York either, but part-owner and founding brewer Jamie Floyd was sampling Believer imperial red ale and Tricerahops imperial IPA, with an eye on the bigger, national picture. “It’s kind of more for the broader, national exposure,” Floyd revealed. We also spend a lot of time as a company working on food and beer pairings.”

As for entering the New York market, “We never say never,” Floyd said. “We’ve talked about it but we’re not looking for East Coast distribution at this point. We’re in the process of a $20 million expansion right now and that will allow us to continue to fill in more of the West Coast.”

One West Coast brewery that is available in the city is Hood River, Ore.-based Full Sail, though it took about 24 of the company’s 26-year history to finally get there. Founder and CEO Irene Firmat was pouring a pilsner from Full Sail’s LTD series and its Pub Series extra special bitter. “[Savor] is a celebration of beer and food and taking seriously, but still having a whole lot of fun,” Firmat said. Full Sail’s Savor participation extends back to the first edition in D.C. back in 2008. So which host city does Firmat prefer?

“I’m a native New Yorker,” she said, “so I’m a little biased.”