Thursday, June 28, 2012

Diageo Launches Premixed Cocktails in Frozen Pouches


(News Brief by Shanken News Daily) Diageo has launched new premixed cocktails in frozen pouches under the Parrot Bay and Smirnoff brand names. The new offerings are at 5% abv and retail for $1.99 a 10-ounce pouch. Parrot Bay’s frozen pouch flavors include Strawberry Daiquiri, Mango Daiquiri and Piña Colada, while Smirnoff’s line is comprised of Strawberry Lemonade, Blue Raspberry Lemonade and Cherry Limeade. Diageo suggests freezing the pouches overnight and enjoying them by squeezing into a glass the next day. One key competitor in the segment is Daily’s (American Beverage Corp.), which recently filed a federal trademark lawsuit against Diageo claiming the new Parrot Bay frozen pouches are too similar to the Daily’s design.

Friday, June 22, 2012

Focusing On Aged Rums, Appleton Estate Seeks To Expand Foothold In U.S. Market


(by Shanken News Daily) Appleton Estate rum is rolling out a 50-year-old variant this year in an effort to raise its profile in the U.S. market. The Jamaican rum, which joined the Kobrand portfolio in 2008 (it was previously with Brown-Forman), saw its U.S. volume grow from about 100,000 cases in 2002 to 150,000 cases in 2009, though it’s been flat since then. Owned by J. Wray & Nephew, the brand’s annual global volume is 1.2 million cases.

“The standard rum category is pretty flat in the U.S.,” says Appleton’s master blender Joy Spence. “But the premium category is growing, so we’ll continue to focus on that segment. Our aged rums—the Reserve, 12-year-old and 21-year-old—are the clear priority.”

Spence adds that Appleton’s aged offerings are matured for the minimum number of years stated on the bottle—akin to Scotch whiskies but unlike many other rum brands, some of which use an average age for their statements.

Seeking to further extend its footprint in the age-statement rum category, Appleton introduced a limited-edition 30-year-old two years ago, and this year it’s seeking to burnish its image with a limited-edition 50-year-old, which Spence says is the oldest rum on the market. The Appleton Estate 50-year-old, which is being released in honor of Jamaica’s 50th year of independence, comes in a Glencairn crystal decanter and sells for $5,000 a bottle. Only 60 bottles will make their way to the U.S. (out of global production of 800 bottles), where consumers can find them through an “online white-glove concierge service.”

The Appleton line also includes a V/X level ($18), which is geared toward cocktails. Spence says that while the emphasis remains on the aged rums, which are mainly meant to be sipped, Appleton’s mixology-friendly extensions are playing a key role in building the brand’s presence in the on-premise, another point of focus.

Wednesday, June 20, 2012

Texas Retail Market Continues To Be Cross-Border Battleground


(by Shanken News Daily) Competition at the Texas retail tier, once a local affair, continues to escalate into an intense statewide battle. Texas is already the biggest state for alcohol sales behind California, and unlike much of the country, it’s in economic expansion mode. State economic trends, along with population gains and liberalized alcohol laws, have enticed retailers to boost their presence dramatically.

Houston-based Spec’s was operating about 100 stores at the start of the year. By July 1, Spec’s is projected to have around 135 units, with more expected later this year. That’s nearly double the 71 stores Spec’s operated at the end of 2010.

“Houston has always been a competitive market,” says John Rydman, owner of Spec’s, pointing to rivalries with grocery chains like Kroger, which markets wine and beer. “The only market that wasn’t particularly competitive was Dallas. It was under a bubble, but now that is changing.”

Local option elections in Dallas in recent years have transformed formerly dry areas into markets where wine and beer, at least, can be sold for off-premise consumption. Those revised selling laws have changed the Dallas retail landscape, as grocery and convenience stores have added beer and wine, while package store operators from other Texas markets—including Spec’s and San Antonio-based Gabriel’s—have entered Dallas.

Ronnie Gabriel, president of the 53-unit Gabriel’s chain, expanded into Dallas last year. “We did it to keep up with the times,” Gabriel said. “You’ve got to watch out for what the future might bring.” Gabriel’s now leases space and manages the liquor department within a newly opened Sam’s Club in Dallas.

Total Wine & More entered Texas in June, opening a store in Dallas, less than a mile from a newly launched Spec’s. Billed as “a new generation concept for the company,” the Total Wine store will have “the largest selection in Dallas,” Total Wine claims. Company president and co-owner David Trone recently told Shanken News Daily that Total Wine is scouting other locations in the Dallas/Fort Worth market, with a new location expected to open in the fall. Total Wine is looking to open stores statewide, targeting metro markets such as San Antonio.

Texas liquor store operators are now bracing for the entry of other major out-of-state players. Trader Joe’s plans four stores in the Dallas metroplex this year, including a location on Hulen Street in Fort Worth that opened June 15. A Trader Joe’s will open in Plano (Preston Road) in early September, followed by two Dallas locations (Greenville Avenue and Preston Hollow Village) in the first quarter of 2013. Trader Joe’s also opened a store in the Houston area (The Woodlands) on June 15 and plans other openings in Houston and San Antonio this year, as well as a launch in San Antonio that’s slated for 2014. All those stores will offer beer and wine.

Meanwhile, Texas continues to liberalize its selling laws. New state laws passed in 2003 and 2005 made it easier for pro-alcohol initiatives to get on the ballot in Texas, creating a surge in statewide local option elections. According to the Texas Alcoholic Beverage Commission, there were some 545 elections attempting to legalize beverage alcohol sales in some form between 2004 and 2011, with a success rate of 77%. During that period, only two communities have voted to prohibit the sale of alcoholic beverages. Recent local option elections in May saw Texas voters pass 13 ballot initiatives to allow and/or extend alcohol sales in previously dry or damp Texas cities, representing a 100% passage rate for alcohol initiatives on the ballot.

All those changes have altered the playing field. “The wet-dry line (in Dallas) is now non-existent for beer and wine, and grocery stores have been quick to add wine,” says Eric Sorensen, owner of PK’s Fine Wine & Spirits, which has four locations in the Dallas market.

Austin Keith, owner of the Pinkie’s chain of package stores in western Texas, sympathizes with the likes of Sorensen. A few years ago, the city of Lubbock moved from dry to totally wet for off-premise beverage alcohol sales. With Pinkie’s stores located just outside the Lubbock line, the chain expected a big hit. Rather than stand pat, Keith opened three stores in Lubbock—a move he says has paid off.

As of May, Texas had 46 completely wet counties (allowing sales of beer, wine and spirits on-premise and off)—up from 35 in 2003—and 22 completely dry counties, where no alcohol sales are allowed. The remaining 186 are “damp”—where some alcohol sales are permitted, with limitations.

Tuesday, June 19, 2012

Bacardi To Take Havana Club National

(by Shanken News Daily) Following a recent victory in its U.S. legal battle over the Havana Club rum trademark with Pernod Ricard, Bacardi is gearing up to expand its version of the rum brand into national distribution. The Huffington Post quoted a Bacardi spokesperson as saying the national rollout of Havana Club will come “in the near future.” Bacardi told Shanken News Daily this morning it was too early to provide more specifics on the launch.

On May 14, the Supreme Court declined to hear an appeal from Pernod regarding its efforts to renew its Havana Club trademark in the U.S. Following that decision, the U.S. Patent and Trademark Office now might cancel the trademark in question—thus paving the way for Bacardi to expand the footprint of its own Havana Club rum beyond the southern Florida market, where it’s currently sold in small quantities. Pernod responded to the Supreme Court’s demurral by registering a new trademark of its own, Havanista, under which it will market a Cuban rum in the U.S. if and when the government lifts its current embargo against Cuban products.

Bacardi Adds Two New Flavors: Wolf Berry and Black Razz

(News Brief by Shanken News Daily on 06/02/2012) Bacardi rum is rolling out two flavor extensions—Wolf Berry, a blend of blueberry and wolf (or goji) berry, and Black Razz, a mix of raspberry and black sapote. Both will be priced at $14.99 a 750-ml. Along with the new products, Bacardi is also releasing new packaging, including temperature- and light-activated bottles. When chilled, the Wolf Berry bottle shows a red claw mark across the label and Black Razz shows a large red berry logo. Bacardi is supporting the product launch with a multimillion-dollar campaign that focuses on sampling in the on-premise and advertising in key markets.

Beam Inc. Completes Acquisition from White Rock Distilleries

(News brief by Shanken News Daily on 06/01/2012) Beam Inc. has completed its acquisition of Pinnacle vodka and Calico Jack rum from White Rock Distilleries for $605 million. Last year, Pinnacle (an Impact Hot Brand) sold 2.7 million cases on 93% growth, and the brand has the potential to become Beam’s biggest-volume brand in the U.S. market by the end of 2012. Beam CEO Matt Shattock said the company will “substantially increase brand investment” in Pinnacle, which recently launched its first TV ads behind a $7-million 2012 ad budget under White Rock. Calico Jack rum, also an Impact Hot Brand, sold 400,000 cases on a 16% volume increase in 2011.

Bahama Breeze Introduces “Legendary Island Cocktail” Program

(News Brief by Shanken News Daily on 05/30/2012) Casual dining chain Bahama Breeze has introduced its “Legendary Island Cocktail” program, a premium list of eight tropically inspired drinks. Each of the cocktails are based on popular drinks originating from famous island locales, such as Cuba’s Hotel Nacional and the Parrot Club in San Juan. Program offerings include the Original Daiquiri (made with Bacardi Superior Rum), Painkiller (Pusser’s Dark Rum), Dark ’n Stormy (Gosling’s Black Seal Rum), Goombay Smash (Captain Morgan Original Spiced Rum and Myers’s Original Dark Rum), Batida de Coco (Leblon Cachaça), Havana Hotel Special (Bacardi Superior Rum and DeKuyper apricot brandy), Parrot Passion (Cointreau and Bacardi Limón) and Barbados Rum Punch (Mount Gay Rum).

Saturday, June 02, 2012

Beam Inc. Completes Acquisitions From White Rock Distilleries For $605 Million

(News Brief by Shanken News Daily) Beam Inc. has completed its acquisition of Pinnacle vodka and Calico Jack rum from White Rock Distilleries for $605 million. Last year, Pinnacle (an Impact Hot Brand) sold 2.7 million cases on 93% growth, and the brand has the potential to become Beam’s biggest-volume brand in the U.S. market by the end of 2012. Beam CEO Matt Shattock said the company will “substantially increase brand investment” in Pinnacle, which recently launched its first TV ads behind a $7-million 2012 ad budget under White Rock. Calico Jack rum, also an Impact Hot Brand, sold 400,000 cases on a 16% volume increase in 2011.