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2 INDUSTRY INSIGHT By Alan Forester, CPA, Attorney 4 INDUSTRY REPORT THINKING INSIDE THE BOX Box wine's eco-chic packaging and better quality appeals to trendsetting consumers

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INDUSTRY REPORT FINDING EFFICIENCIES IN SHIPPING How are beverage alcohol companies coping with higher transportation costs? 30 COCKTAIL CORNER

12 CATEGORY FOCUS IRISH WHISKEY 18 POUR OF THE MONTH FINEST CALL MIXERS

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20 COVER FEATURE SOBIESKI VODKA THE TRUTH IS OUT THERE Last year, Sobieski’s “less is more” positioning approach turned heads and won fans. This year, the winning tactic gives it stronger footing in an ever-changing market.

34 SPEAK EASY AN INFORMAL CONVERSATION WITH SIMON HUNT President, William Grant & Sons USA and Managing Director, North America 38 COMPANY PROFILE PROXIMO SPIRITS 40 INDUSTRY NEWS 44 NEW PRODUCTS & PROMOTIONS

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INDUSTRY INSIGHT BY ALAN FORESTER, CPA, ATTORNEY WWW.ABCLAWYER.COM 800-464-1040

Beverage Industry News VOLUME 97, ISSUE NUMBER 32 FOUNDED IN 1934 www.binonline.net

SEXUAL HARASSMENT BY A CO-WORKER

Southern California

Generally Employers can be liable for act of their employees in furtherance of their duties. However, employers should also safeguard their employees from harm including harm by sexual harasser. In California, every two years an employer with 50 or more employees must provide at least two hours of classroom or interactive training and education regarding sexual harassment to all supervisory employees. New supervisory employees must receive such training within 6 months after being hired. This training should include information about the prevention and correction of sexual harassment and the remedies available to victims of sexual harassment in employment. Also, the training should include practical examples of workplace sexual harassment. Just providing this training will not guarantee that an employer will not be held responsible for sexual harassment of any current or former employee or applicant, but it will greatly reduce the chances of liability. There are several theories on which an employer may be subject to liability for sexual harassment in the workplace: 1) Harasser as Employer's “Proxy”: A supervisor with a sufficiently high position in management may be treated as the employer's “proxy,” and so his or her abusive conduct is automatically the responsibility of the employer. 2) Quid Pro Quo” Harassment by Supervisors: The employer is vicariously liable when a supervisor requests sexual favors in exchange for job benefits. The employer can’t avoid liability by claiming that they didn’t know of the supervisor's conduct or that the supervisor's conduct violated the employer's announced anti-harassment policies. 3) Hostile Environment Harassment Created by Supervisors: Employers may also be liable for sexual harassment by a supervisor that creates a hostile workplace environment. The employer is subject to liability if a supervisor who had authority over the employee created a hostile environment. • It should be noted that the employer is not vicariously liable for hostile environment sexual harassment created by the plaintiff's coworkers or other non-supervisors. • But, the employer may be directly liable if it knows of the harassment and fails to stop it. The legal standard for evaluating the employer's efforts to prevent and correct sexual harassment is whether its actions as a whole established a reasonable mechanism for prevention and correction. Although proof that the employer had an anti-harassment policy and/or complaint procedure won’t completely insulate the employer from a lawsuit, it will be looked at as very relevant to whether the employer exercised reasonable care to prevent the harassment. Merely persuading known harassers to cease their activities may not be enough if the employer takes no action to ensure that the harassment stops. Whether a complaint mechanism is “reasonable” may depend on the employees involved. For example, if your employees cannot speak English, a complaint procedure in English would not be reasonable. Similarly, if you own a company that employs mostly teenagers, your policies and procedures should be understandable by the average teenager. Providing training, educating your employees about the laws and the company’s policies towards sexual harassment, and dealing with all complaints completely and quickly is the best way to safeguard yourself against a sexual harassment suit. Alan Forester is an attorney, CPA and an expert witness in Alcoholic Beverage Control Law. For more information, please visit www.ABClawyer.com or call 800-464-1040. 

Business, Production and Editorial Office

Disclaimer: This article is not to be construed as legal advice. Please check with an attorney before taking action. 2

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POUR OF THE MONTH

Finest CALL Bartender Michael Dickerson shows off the Finest Call.

POUR OF THE MONTH

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THE BRASS DOOR A San Ramon Landmark since 1955 In 1946, Howard “Shorty” Schlesinger opened the 8/5 club (his favorite odds at the track) in San Ramon, population 100. This was a six-stool bar and twenty-person dining facility, featuring steam beer and fried chicken. In 1955, Shorty’s son, Mickey and a local dairy farmer, Dick Basso, bought the 8/5 Club and named it The Brass Door. They expanded the facility five times in the next 15 years to its current size, a 20-stool bar and cocktail lounge seating 160. With Dick and Mick’s retirement in 1974, Dick’s son Danny took over the restaurant and has been operating it to this present date. In April 1994 a fire completely destroyed the building and it was rebuilt and opened again in December of that year. The Brass Door features USDA Choice, Midwestern, Corn Fed Beef, fresh seafood, spectacular salads, and fresh pasta. Some of the favorites of the house include the Slow Roasted Prime Rib of Beef au Jus (12 oz), and the Blackened 14oz Ribeye Steak. For a lighter fare, try the Shellfish Sauté with Pan seared Prawns and Scallops, Sautéed with garlic, tomatoes and fresh herbs. Or, maybe the Poached Salmon Salad, with creamy mustard sauce, assorted field greens, grape tomatoes, and Mediterranean kalamata vinaigrette. At the Bar, The Brass Door’s mixes of Choice are Finest Call which feature a complete line of superior mixes from Sweet & Sour, Grenadine, Pomegranate syrup, Bloody Mary mix, the Strawberry, Raspberry and Mango Purees to the premium Cosmopolitan Martini, Sour Apple Martini and Mojito mix. As Owner Danny Basso says, “This is a place where generation after generation of families have come to meet family and friends, and we always offer them the best quality in the restaurant and at the bar. And, that includes Finest Call mixes, which are the best.” The Brass Dooem is located at 2154 San ramon Blvd., San Ramon, CA 94583. 

Chester Brandes, President and CEO of Imperial Brands, Inc (left) and Timo Sutinen, Vice President of Marketing and Business Development, Imperial Brands, Inc. (right)



SOBIESKI VODKA THE TRUTH IS OUT THERE! Last year, Sobieski’s “less is more” positioning approach turned heads and won fans. This year, the winning tactic gives it stronger footing in an everchanging market.



It’s hard to believe that at this time last year, the Vodka category was booming. From 2002-2008, there was an unprecedented number of new vodka launches that underscored how enduring and versatile this spirit category was. Furthermore, cocktail culture was coming of age from coast to coast, and vodka was one of the spirits that drove its popularity. It was also safe to say that a number of entrepreneurs had found many ways to reinvent that wheel. In the midst of vodka-mania, Poland’s Sobieski Vodka was launched in the U.S. in 2007, under the auspices of Imperial Brands’ CEO/President Chester Brandes and Marketing and Business Development VP Timo Sutinen. Both individuals have a long history of experience in the industry selling and marketing premium brands which include, among others, Stolichnaya and Finlandia Vodkas, Amaretto di Saronno, Remy Martin Cognacs and Cruzan Rums. However, in a category where celebrity endorsements, designer glass bottles and high tech distillation claims abound, Brandes and Sutinen dared to take the road less traveled and

launched Sobieski Vodka with a then-controversial proposition: a truly great vodka could be priced reasonably, and be free of all the extra bells and whistles! The vodka boom may be cooling, and the outlook for some high profile brands has chilled during this wintery economic period. Palm Beach Gardens, Florida-based Imperial Brands, however, is just warming up and shifting their successful “Truth in Vodka” story into a higher gear. Though the media campaign was initially launched in summer 2007, it is now being executed in an economic environment where trade and consumers are ready to embrace the truth and see the light.

FIRST A BIT ABOUT US “Sobieski proudly stands apart from the lack of substance embraced by so many vodkas today, says Brandes. “We offer a superior product at a superior value-the leading premium vodka brand in Poland, vodka’s birthplace-and we won’t try to generate appeal with contrived or empty gimmicks. Our story is about real vodka that’s

SOBIESKI VODKA continued

 “...Our story is about real vodka that’s meant to be enjoyed, not worshipped, and we have and will continue to share our point of view with the world. We are a brand with nothing to hide, and the confidence (and humor) to talk about ourselves in simple, straightforward and black and white terms.”

 – Chester Brandes, Imperial Brands’ CEO/President

meant to be enjoyed, not worshipped, and we have and will continue to share our point of view with the world. We are a brand with nothing to hide, and the confidence (and humor) to talk about ourselves in simple, straightforward and black and white terms.” “In our first full calendar year, Sobieski depletions reached 255,000 cases in the U.S,” says Brandes. “Moreover, we’re setting our sights on being the fastest new vodka brand to achieve sales of one million cases, an ambitious but achievable milestone. From distributors to retailers, Sobieski Vodka has received outstanding support, which has made our initial success possible. In addition to Sobieski, Imperial Brands has recently taken over the representation of Marie Brizard, the world’s leading premier line of cordials and liqueurs. In spite of a not so favorable economy, we are convinced there is tremendous potential to develop Marie Brizard in the States. There is no preemptive, premium line of cordials doing significant volume in this market. Most professional mixologists will tell you that when it comes to quality, Marie Brizard is heads and shoulders above the competition. We need to retell and educate a generation of consumers and the on-premise trade about the virtues of this great brand, a challenge we gladly accept. Imperial Brands is in the process of launching a line of premium (Tcherga) and Estate wines (Katarzyna) from Bulgaria. Again, this is an education process, Bulgaria has a winemaking tradition dating back some 3,000 years. The Belvédère Groupe has extensive viticultural holdings in Bulgaria and up until recently quality entries from Bulgaria were not available in North America. Based upon the accolades our wines have received from prominent writers thus far, there is no reason why Bulgaria can’t become the next exciting “new world” wine producing country. Finally, we have new and innovative products in our pipeline that we believe will continue to shake up the exciting world of wine and spirits.” 22

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BACK TO BASICS While Sobieski Vodka is carving out a place for itself in the crowded vodka market with a classic bottle and a simple promise—great quality and value—The Imperial Brands team is out there presenting the trade and consumers alike with “just the facts,” but in a warm and humorous way that strips away the hype that defined the category and brings their audience back to Earth. Truths that draw upon Sobieski’s noble origins and the fact that it is both the #1 premium vodka in Poland and one of the world’s bestselling and fastest growing vodka brands. They also make no bones about the fact that Sobieski Vodka, produced at the Starogard Gdansk Distillery, founded in 1846, is made exclusively from the revered Dankowski rye, the grain of choice for most premium Polish Vodkas. Moreover Brandes notes, “Christophe Trylinski, CEO of our group and the “father” of Sobieski vodka is the man who created both Belvedere and Chopin vodkas, no small accomplishment!” Backing up Imperial Brands’ claims, meanwhile, are many industry awards and accolades. In the fall of 2007, Sobieski Vodka, in a blind tasting by the Beverage Testing Institute of 108 brands in the premium vodka segment (the largest review of vodka in its history), earned a Double Gold Medal and Best Buy Award. Sobieski also ranked #1 in a blind-tasting of 25 major international vodka brands conducted in Paris by La Revue du Vin de France, one of France’s top wine and spirits publications. “I think the Chicago Beverage Testing Institute results prove our point about consumers not having to pay a king’s ransom to get great vodka,” points out Brandes. “In this competition, Sobieski scored 95 points, coming in second place to a vodka brand that retails for $60/bottle! As our retail is around $10-11/bottle, it reinforces what we’ve been saying all along about our positioning. You can pay $60 for a great vodka, but you certainly don’t have to!”

SOBIESKI VODKA continued A CLEAR AND PRESENT WAGER As consumers and trade are in the midst of shifting their spending priorities, and now generally steering clear of excess expenses, Sobieski Vodka’s suggested retail prices of $10.99 for a 750 ml bottle and $19.99 for a 1.75 liter bottle are now more seductive than ever. While Sutinen and Brandes acknowledge that even recession-proof areas of commerce feel the effects of change, they are prepared to ride the wave on their own terms, no matter how stormy the seas get. “We are pretty much sticking with our strategy as it has worked extraordinarily well,” affirms Brandes. “The fact that there was a meltdown in the economy is something nobody’s happy about. On the other side of the coin, however, we’re in a unique position to capitalize on that in terms of customer and demand for a high quality vodka at an affordable price. It is important to reiterate that when we launched Sobieski in the U.S. in 2007, for all intents and purposes, the economy was ‘normal.’ Our original strategy was the same: you did not have to pay $30 a bottle to get great vodka. We intend to remain consistent with our message, even though times have changed. In many respects, there is no doubt that the current economic climate has helped us in terms of our competitive price positioning.” Though many of the spirits Sutinen had worked with in the past had a lifestyle-driven or status-conscious message, experience has taught him that there are sound principles that work for marketing spirits, no matter what economic conditions are like. And in the case of Sobieski, they promise to be even more effective. “We are pointing out the spirit’s origins very clearly,” notes Sutinen. “It was especially important for us to address and explain the Polish origin because many consumers and trade clients place value on the fact that Poland is the birthplace of vodka. That is important to us in all of our communications and messages. Furthermore, the ‘Truth in Vodka’ campaign clearly resonates with consumers and critics alike and differentiates Sobieski from the competitive set. Sobieski Vodka is all about outstanding quality and taste. And though the whole industry is suffering from the effects of the downward economy, we do not suffer as much because of our brand positioning; we will continue to spread the truth to an even wider audience and help them overthrow the tyranny of overpriced vodka.” Though these messages are successfully hitting their targets, the biggest challenge facing the brand lies in building on the momentum established since Sobieski’s U.S. debut. The company is betting that maintaining/increasing the level of spending and commitment to the three-tier system they’ve had in place for Sobieski Vodka since its U.S. inception will pay off. “We have made promises to the trade and it is critical to our and the brand’s credibility that we keep them!!” reiterates Brandes.

IT IS NOT ONLY ABOUT THE MARKETING! “It takes more than a great marketing campaign to build a brand in today’s highly competitive environment. The effects of consolidation on a new company’s ability to successfully launch a brand are 24

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Starogard Gdansk Distillery, founded in 1846

challenging to say the least, remarks Chester Brandes. “We are very fortunate that the Belvédère Groupe has made the U.S. market its top priority worldwide. As a result, sufficient resources have been made available to successfully launch and sustain Sobieski’s growth in the States.” Under the direction of Bob Reider, industry veteran and our VP National Sales Manager, we have been able to assemble a team of experienced sales people capable of “hitting the ground running,” says Brandes. “Unlike many companies that are cutting back on their sales force, Imperial Brands has added eight additional full time people in 2009 making a total of 23 people in the field. In Northern and Southern California alone we have added three permanent positions in the past year. Our major focus in California this year is in increasing chain distribution; this can not be accomplished without dedicated, committed manpower in the state. We believe, however, that based on the short but highly successful history we’ve had, Sobieski is garnering awareness and credibility amongst the buyers in this all important segment of the market which should facilitate our ability to get listings on the brand. Onpremise, meanwhile, is important, especially in trendy cutting edge cities like San Francisco. We’ve just put a salesperson in the Bay Area, not only to help with Sobieski, but our other products with high on-premise potential like Marie Brizard.”

IMAGE, PURE AND SIMPLE Brandes and Sutinen will be the first to admit that even with Sobieski’s initial success against all the odds, it is not enough to simply have a great vodka on the market with nice packaging and value. The third piece of the puzzle is popular support for what the brand stands for. In Sobieski’s case, it’s about simplicity and honesty. “You need to create a personality for your brand,” says Brandes. “That’s key to this whole thing. When you cultivate a consumer following, it is so important to give customers a reason to associate themselves with a brand. When we first saw the ‘Truth in Vodka’ campaign, that was it…we knew that was the message that consumer and the trade wanted to hear. The reality is that consumers and the trade are confused about the all the myths and misconcep-

 RECIPES FOR SUCCESS

HOT MAMA Created by Tad Carducci

Ingredients: 2 oz. Sobieski Vodka 3 oz. tomato juice 1/2 oz. fresh lemon juice 4 dime-sized slices of fresh ginger 8-10 fresh cilantro leaves 1/2 oz. soy sauce Dash of Sriracha sauce (Thai spicy sauce) or your favorite hot sauce Dash of salt and pepper Technique: Muddle cilantro and ginger. Add remaining ingredients. Shake over ice and strain into martini glass rimmed with equal parts coarse salt, black pepper and chili powder. Garnish with Asian pickled cucumber.

BROKEN LAWN MOWER Created by Tad Carducci

Ingredients: 1-1/2 oz. Sobieski Vodka 3 oz. chilled beef bouillon 2 dashes Worcestershire sauce 2 dashes Tabasco sauce, or to taste 1 dash habanero sauce (optional) 1 oz. fresh orange juice 1/2 tsp. chipotle powder Juice of 1/2 lime Spicy Salt (equal parts coarse salt, black pepper, chipotle or regular chile powder and lime zest) Technique: Moisten rim of highball glass with lime. Roll outer lip in a saucer filled with the spicy salt mixture. Shake all ingredients thoroughly. Strain over ice into the pre-rimmed highball glass. Garnish with a lime wedge and a pickled hot pepper.

GREEN CONCEPT Created by Francesco LaFranconi

Ingredients: 1-1/2 oz. Sobieski Vodka 1/2 oz. Marie Brizard Triple Sec 4 wheels of Cucumber (leave skin on and cut them 1/4” thick) 1/2 oz. fresh squeezed Lime Juice Top-up with 3 oz. lemon-lime soda Technique: Place the cucumber wheels in a rocks glass with the lime juice and muddle for just few seconds. Add ice cubes and Sobieski vodka with Triple Sec. Top with lemon-lime soda. Stir and serve.

SOBIESKI VODKA continued tions in the category. Vodka made from grapes? A bottle from the hottest designer? A race to distill one more, two more, five times more than the next guy? A hefty price tag that magically transforms so-so vodka into something more special? Are these things that make vodka truly superior? We beg to differ. The timing was right for us to launch a quirky and fun campaign aimed at reinforcing the fact that consumers did not need all the extra stuff to have a vodka they could truly appreciate.” Adds Sutinen, “With Sobieski, we took a different route than the other brands we’ve worked with, in that when we introduced our brand, we stressed the importance of getting back to basics, especially in these economic times, where it means something to our customers to have a super premium quality vodka with a great price point. We wanted to strip away all the gimmicks and claims, and educate people on what vodka really is and what it takes to make a great vodka ingredient-wise and quality wise, and ultimately premium vodka does not have to cost that much. And look at the Sobieski bottle; it does a terrific job of containing the pure excellence of a great vodka. And it's not bad to look at either.” Sutinen goes on to explain that to keep Sobieski’s now famous marketing and advertising up-to-date, they are investing significant money in a number of different areas. The original framework of the campaign has been expanded to encompass all aspects of integrated marketing including advertising, events, promotions, outdoor, trade activities, consumer magazines and digital. The Imperial Brands team, meanwhile, is keeping their finger on the pulse of industry trends, current events and pop culture to infuse new life into the basic message of the campaign. “The nice thing about the brand positioning and maintaining the continuity of our messaging is that we are also open and flexible,” says Brandes. “Whenever something topical surfaces, like an election, the downturn of the economy or perhaps one of our competitors coming out with a new outrageous quality claim about their product, this provides us with fresh material to create new executions while at the same time always remaining consistent with the basic 26

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message of the campaign. While I don’t anticipate a plethora of new vodka introductions as we have seen in the past, even in the present economic environment there will be a limited number of new brands entering distribution channels. And when they do arrive and start making crazy claims, we will be there to alert the consumer to beware!” On the public relations side, Sobieski’s “Truth in Vodka” campaign was deemed so effective that it was named a finalist by the authoritative trade magazine PR Week for the best Consumer Launch Campaign of the Year. Brandes is quick to point out that Sobieski is the only spirit brand that is in the finals of this prestigious competition. Sutinen, meanwhile, notes that in 2008 Sobieski was the recipient of Impact Magazine’s coveted Hot Brand Award as well as a Growth Brand Award from Beverage Information Group. Brandes says “the fact that the industry has recognized Sobieski’s performance validates our belief that consumers are much less willing to open their wallets for gratuitous bling and presumed status on items that don’t live up to their overblown price tags. Moreover, based upon the brand’s outstanding sales results to date, there is no question we are getting a great response through the entire threetier system.”

GETTING WHAT THEY PAY FOR Awards aside, Brandes expresses that the key to Sobieski’s overall success is that consumers are getting what they pay for - a real brand of vodka that not only offers quality for a great price, but is differentiated and legitimized by being the top selling premium vodka in its country of origin and vodka’s birthplace. Brandes then goes back to repeat very pointedly that the strategy for Sobieski’s continued success is to do “more of the same in 2009,” which encompasses increasing the investment in advertising, marketing and PR while continuing to hammer home the same message and strategy that has worked thus far. “If you look at our packaging, it is clean, classic and simple,” continues Brandes. “It is not Belvedere or Grey Goose. It is Sobieski, and we knew we could not price ourselves in the $30 range, even though many of the new entries in the category were chasing Grey Goose and Belvedere at



 “...Sobieski Vodka is all about outstanding quality and taste. And though the whole industry is suffering from the effects of the downward economy, we do not suffer as much because of our brand positioning; we will continue to spread the truth to an even wider audience and help them overthrow the tyranny of overpriced vodka.”

 – Timo Sutinen, Marketing and Business Development VP

the high end. In terms of volume, however, it is important to remember that of the 52 million cases of vodka sold in America, the majority are not sold at the $30/bottle level.” “We knew immediately that in Sobieski Vodka we had a unique opportunity within the category in terms of quality and positioning,” interjects Sutinen. “It is such an easy product to sell and I am thrilled to be associated with this brand.”

SIMPLE PLEASURES Likewise, there is a fan base of mixologists across the country who are also happy to be a part of the Sobieski Vodka “less is more” revolution, and are showing their appreciation by developing recipes for the brand. “Recently, we updated the brand’s web site to include some fantastic recipes from noted mixologists throughout the United States,” affirms Sutinen. “Junior Merino, Tad Carducci and Francesco LaFranconi are all members of our great mixologist stable. Because the cocktail culture is so strong in the U.S., and people are still up to trying new drinks, we are working closely with them to develop new recipes.” Brandes, like Sutinen, has received similar feedback from professionals who have commented on Sobieski Vodka’s crisp, clean and pure flavor. “They know it is a versatile vodka that’s got a lot of integrity, especially as the grain we are using is authentic and preferred among connoisseurs and other vodka makers. Because of the product’s neutrality, professionals know Sobieski Vodka is an ideal base for any kind of cocktail. You don’t get a strong aftertaste, and that makes it extraordinarily mixable.” While classic Sobieski Vodka is continuing to ride high because of its versatility, Brandes and Sutinen coyly mentioned that there are flavored varieties in the works and a tentative launch date has

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SOBIESKI VODKA continued been set for late spring 2009. Though the flavors are for now a tightly guarded secret, Brandes and Sutinen assure their trade and consumer fans that the new additions to the Sobieski family will remain true to the standards set in the “Truth in Vodka” campaign. “The flavors that we are perfecting right now will be of the highest quality, and will add to our mixologists’ toolkit facilitating the creation of new cocktails,” assures Brandes. “Though the original Sobieski Vodka is a perfect platform for many cocktails, we know from mixologists that sometimes the ingredients needed to achieve a certain flavor profile are not necessarily available in a non-alcoholic format. Therefore, we are addressing that issue with the assortment of flavors that we will be launching. What will remain the same, however, is that our new Sobieski flavors have to be better quality than what our competitors are putting out there. This is what drives the brand…period! Whether it is a neutral or flavored spirit, what we do has to be unparalleled, with all natural ingredients.” “Flavored vodka got a lot of attention, especially because the media likes all those stories of how exotic things come into being,” concurs Sutinen. “Over the years, flavored vodkas have had a strong presence in the retailer sector. However, knowing what we know about vodka consumption from our years in the business, flavored vodkas total maybe about 15% of overall sales. It is not very big, as the popularity of neutral, unflavored vodkas is much larger, because pure vodkas like Sobieski are easier to mix and make into good cocktails. However, we will have flavors, because there is a demand and we want to show the consumer that we can produce excellent flavored vodka as well.” Although there is great anticipation and excitement among the Imperial Brands staff, especially with more landmark sales records and innovative flavored vodkas on the horizon, Brandes and Sutinen acknowledge that their greatest sense of accomplishment thus far was launching a vodka that figuratively and literally went “against the grain” to find its niche in the category and the spirits world at large. They take special satisfaction in having created a personality for the brand that is proud, independent minded, not easily labeled or categorized and, most importantly, doesn’t take itself so seriously. “I could talk all day long about how great Sobieski Vodka is, but the reality is that a brand is not truly great until other people start telling you so,” says Brandes. “We have had the good fortune to be able to start this company from inception enabling us to create a persona and strategy for Sobieski in the most competitive category in our industry; it is a once in a lifetime opportunity. Couple that with an incredibly supportive parent company and a highly motivated and dedicated team of professionals at Imperial Brands and it’s no wonder that our strategy is working! There is an enormous sense of satisfaction in seeing all of this unfold, I’ve been fortunate in my career to have had pieces of that feeling with former companies and brands, but nothing as whole or complete as this.” For more information about Imperial Brands and Sobieski Vodka, visit www.vodkasobieski.com. 

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BRAND PROFILE

PROXIMO SPIRITS

The Next Big Things Proximo starts 2009 with the introduction of new, flavorful variations on their top selling Three Olives Vodka, Gran Centenario and Azul Tequila products By Elyse Glickman

are seeing very high, double-digit growth for ‘Three-O.’ Consumers and the trade demand something fresh within the most important spirits category and Three-O is delivering.” On the tequila front, Gran Centenario is revealing the spirit’s more romantic side via a national launch of its newest tequila, Gran Centenario Rosangel, touted as first-ever hibiscus-infused tequila. The fragrant new variety is being positioned to become a tequila of choice for mixologists and customers looking for

Chocolate Covered Cherry 1 oz. Three-O Chocolate Vodka 1 oz. Three-O Cherry Vodka 1 oz. White Crème de Cacao Shake with ice and strain into a martini glass & garnish with a cherry

Rock Star Root Beer 1 oz. Three Olives Root Beer Vodka 1 oz. Three Olives Vanilla Vodka 4 oz. Ginger Ale Mix in a glass filled with ice & garnish with a cherry

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The launch of the Cherry and Root Beer flavors to Three Olives Vodka’s already prolific and colorful collection has already generated excitement among creative mixologists, savvy restaurateurs and adventurous cocktail-drinking consumers. However, Proximo recently announced the U.S. launch of an ambitious multi-million dollar advertising campaign for the Three-O family of vodkas that asks consumers, “What’s Your O-Face?” The brand has a bold new package---sleek, frosted bottles and bold graphics that represent the flavors inside. Set to debut in the March issues of leading U.S. magazines such as Maxim and Us Weekly, Three Olives’ campaign features a series of models showing surprise at the stunning array of Three-O Vodka flavors. Additionally, a major online campaign invites consumers to upload their picture and profile with the chance to win a cash prize of $10,000 and a photo-shoot with a leading publication as the new face of the product. “Three-O has carved a niche out from our stuffy competitors with a message of being seriously fun,” remarked Gino Luci, Proximo’s Senior Marketing Manager. “In a market where the traditional brands are declining, we

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roximo Spirits has taken the “in with the new” theme to new heights with several exciting product launches as well as a landmark ad campaign and a sales milestone this spring.

imaginative ways to update classic cocktails. It yields a complex, perfumed nose with ripe fruit and floral notes, plus hints of vanilla. The palate holds flavors of dried fruits, which leads to a smooth and gentle finish. “We are very excited to expand our Gran Centenario Tequila portfolio to include an offering that adds a sophisticated twist to our ultra-premium line-up,” said Michelle Sanders, Senior Marketing Manager, Proximo. “Rosangel speaks to both women’s and men’s palates, and is superb when enjoyed neat, on the rocks or mixed into cocktails.” Proximo has also moved forward with the launch of the new tequila brand AZUL, from the house of Gran Centenario. Noted as Mexico’s fastest growing Tequila in the 100% Agave sector, Azul represents a revolution for the category with its sleek packaging and content sourced from family-owned ranches. The price, $19.99 per 750 ml, represents great value for a quality product. “This is the perfect Tequila brand for the current economic climate,” asserts Elwyn Gladstone, Marketing Director for Proximo Spirits. “People are looking for brands that offer exceptional value and quality. Everything we do at Proximo must be done unique and highly differentiated. We believe the superb packaging and incredible liquids will be some of the stand outs of 2009 in the beverage world.” 

INDUSTRY NEWS TSINGTAO BEER APPEARS ON "TODAY SHOW" WITH CHEF MARTIN YAN Tsingtao Beer played a supporting role alongside celebrity chef Martin Yan during a recent appearance on the "Today Show". Master Chef Yan appeared with hosts Kathie Lee Gifford and Hoda Kotb on the popular morning news program, where he prepared Asian recipes using Tsingtao Lager. Tsingtao Lager and Tsingtao Pure Draft are leveraging the popularity of Chef Yan during Chinese New Year, and via sponsorship of his year-long "Yan Can Cook" Road Show tour, where he will make appearances at both trade and consumer events in major markets through out the U.S., targeting culinary schools, cooking demonstrations at professional tradeshows, supermarkets, and festivals. A "Cooking with InspirAsian" national consumer sweepstakes featuring Chef Yan will run in chain grocery stores in June and July, with two winners flying to one "Yan Can Cook" Road Show host city as Tsingtao VIPs and joining Chef Yan on stage to cook one of his signature dishes.

HEINEKEN USA PRESENTS KOZOL BROS. AND HARBOR DISTRIBUTORS WITH SECOND ANNUAL 1864 AWARD FOR RESPONSIBILITY Reinforcing the company’s commitment to encourage the responsible consumption of beverage alcohol and to support its customers shared commitment to that goal, Heineken USA today announced the recipients of its annual 1864 Award for Responsibility – Kozol Bros. from Joliet, Ill. and Harbor Distributing of Southern Calif. The award’s name recognizes the year Gerard Adriaan Heineken founded the Heineken company, based on the ideas of moderation and responsibility. “The belief in moderation and responsibility is inherent to the Heineken organization and we believe we have an important role to play in addressing the real issues associated with alcohol. We are grateful that our distributor partners across the country have worked with us on programs that ensure the responsible consumption of our products,” said Don Blaustein, president and chief executive officer, Heineken USA. “That is precisely why we created the 1864 Award for Responsibility – to recognize our distributors for taking responsibility beyond a message and putting it into action. Kozol Bros and Harbor Distributing are two such partners.” Harbor Distributing – Taking a Stand Against Driving Under the Influence Part of Reyes Holdings, Harbor Distributing is the second largest individual distributor in Heineken USA’s network. The company maximized its reach within the southern California community to create greater awareness and prevention of underage drinking. In a series of partnerships with regional police departments, Harbor Distributing created and distributed a public service campaign during the holiday season to remind their neighbors about the dangers and legal implications of drinking and driving. They also expanded the reach of the Health Alliance on Alcohol, empowering students from the local state university to create their own PSAs that would educate their peers about these important topics. 40

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INDUSTRY NEWS KNOB CREEK BOURBON WHISKEY PROFESSORS HONORED AS “WORLD AMBASSADORS OF THE YEAR” BY WHISKY MAGAZINE The Knob Creek Whiskey Professors were honored with Whisky Magazine’s 2009 World Icons of Whisky Award for “Ambassadors of the Year” at a ceremony in London, England February 28, 2009. Whiskey Professors Steve Cole, Bernie Lubbers and David Mays were recognized for their passion and knowledge in spreading the gospel of “America’s Native Spirit” across the nation in new and innovative ways. The Knob Creek Whiskey Professors were honored with the American Icons of Whisky award for “Ambassadors of the Year” in October 2008 out of nominees from Brown-Forman (Chris Morris), Jim Beam (Fred Noe), Bulleit Bourbon (Tom Bulleit) and Wild Turkey (Jimmy Russell). Winners of all regional Icons Awards were finalists in the World Icons Awards. The ceremony was held in Hurlingham Club, London and marked the opening of Whisky Live London, the U.K.’s premiere whisky tasting event. The Knob Creek Whiskey Professors spend their days (and nights) presenting Knob Creek Bourbon to bartenders, bar and restaurant owners, and consumers by teaching label reading classes, guiding tastings across the United States, and spearheading two major initiatives for Beam Global – moderating The Great Whisk(e)y Debates and hosting bourbon dinners. The merits of Scotch whisky and Bourbon whiskey are deliberated at The Great Whisk(e)y Debates throughout the country, allowing the audience to choose if the whisk(e)y with or without the “e” is better. The team of three also hosts bourbon dinners across the country at restaurants such as The Palm and Morton’s Steakhouse to educate consumers on Bourbon and food pairings.

The Whiskey Professors David Mays, Bernie Lubbers and Steve Cole.

TRU ORGANIC SPIRITS LAUNCHES “BARMADE BITTERS CHALLENGE” AT TALES OF THE COCKTAIL 2009 Tales of the Cocktail and TRU Organic Spirits announced the first ever Barmade Bitters Challenge, a forum to showcase the world’s best aromatic bitters at this year’s Tales of the Cocktail in New Orleans July 8-12. The Bitters Challenge offers a ONCE-IN-A-LIFETIME opportunity for bartenders to have their bitters recipes produced, packaged and sold nationally by TRU Organic Spirits. The winning bartenders will not only have his or her name on the final product, garnering the visibility of a national audience, but will also share in profits from the total sales of the bitters. Inspired by artisan bartenders, the contest will include three categories—fruit, spice and herb. Five finalists per category will be invited to present their aromatic bitters personally at this year’s Tales of the Cocktail in New Orleans, where judges will select one winner per category. “There’s volcanic potential in bartenders,” says Melkon Khosrovian, co-founder and spirits maker at TRU Organic Spirits. “Can’t wait to see what they’ve got.” Khosrovian will work with all three winning bartenders to formulate and produce their aromatic bitters for commercial sale. Each bitter will be produced as an organic product as an extension of the TRU Organic Spirits line of organic vodkas and gin. Rules and more information please visit www.truorganicspirits.com/bitters.html. 42

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