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Inside

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2 INDUSTRY INSIGHT By Alan Forester, CPA, Attorney

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4 INDUSTRY REPORT UNCERTAIN TIMES The economy might not be at its peak, but mixed signals shouldn't deter retailers and restaurateurs this holiday season 12 NEW PRODUCTS & PROMOTIONS 14 CATEGORY FOCUS AFTER DINNER BOOST Increasing sales of Grappa add value to both restaurants and retail outlets 20 COVER FEATURE PEGGY JOHNSON: THE ICE WOMAN COMETH While SÏKU Glacier Ice Vodka bridges the gap between pristine ancient ice and modern spirit innovation, its founder strives to bridge the industry gender gap

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36 COMPANY PROFILE THE D'AQUINO ITALIAN IMPORTING COMPANY Now that’s Italian…and still going strong after three decades 38 COMPANY PROFILE SNOW QUEEN VODKA TAKES A NEW COURT A new regime at Marsalle Imports is taking shape to help grow the Snow Queen brand 40 HOLIDAY GIFT GUIDE '08 54 BRAND PROFILE BLUE ICE VODKA IS OUT, AND IN A BIG WAY! Blue Ice reveals itself to be a revolutionary American player in today’s “vodka wars” 58 INDUSTRY REPORT POST-PROHIBITION 75 years later, the beverage alcohol industry continues to evolve

34 INDUSTRY EVENT THE ART OF FOOD & WINE

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INDUSTRY INSIGHT BY ALAN FORESTER, CPA, ATTORNEY WWW.ABCLAWYER.COM 1-877-LIQUOR-8

Beverage Industry News VOLUME 94, ISSUE NUMBER 29 FOUNDED IN 1934 www.binonline.net

Southern California Business, Production and Editorial Office

THE ECONOMIC CONDITION OF THE WINE & SPIRITS INDUSTRY While the beer industry may be enjoying a sort of “recession resilience,” the same is not necessarily true for other alcoholic beverages. Even though there is a trend toward premiumization among spirits, wine and spirits consumers are often trading down, opting for value wines over mid to expensively priced wines, or choosing domestically distilled vodka over high-end European vodka. However, the hard liquor industry as a whole does continue to grow, though the rate of growth has slowed down from past years. Super-premium brands are still doing quite well, though there may be a reduction in their rate of growth given the economic conditions. In 2007, value brands’ sales were similar to their sales in 2006, but superpremium brands such as Grey Goose vodka increased by more than 11 percent. Value brands are expected to retain the largest market share among spirits, 40 percent. Eight out of ten consumers reported that their spending on beer, wine, and spirits is the same or up from last year, according to Nielsen Co.’s consumer research. Though consumers may not be completely cutting alcohol out of their spending overall, they are acting in a more cost-conscious manner. Almost two-thirds of American consumers have cut back spending on dining out, drinking in bars, and traveling. Though consumers are not cutting out the alcohol, they are buying it in cheaper places. Half of the people surveyed said the recession has not influenced their spending for alcohol at off-premise (retail) locations like stores and warehouses. Additionally, because of other factors such as needing to save gas and convenience, consumers are shopping for beverages at stores where they combine other shopping purchases, like groceries. Finally, it has been said that trading up in beer does not cost as much as trading up in wine. Thus, the premium and craft beer industry is one segment that actually continues to grow, while other beverages struggle with smaller margins and higher production costs. On the other hand, though consumers have traded down, their expectations have risen to consider ultra- and super-premium levels of spirits as the norm. Thus, “trading down” results in purchases of the premium brands rather than the lowest value brands. Spirits manufacturers have responded to the growing demand for at-home consumption by offering lines of premixed cocktail drinks. To cope with the downturn and increased costs, restaurants have started to offer more specialty drinks and cocktails which require more labor to produce, but offer higher profits than refillable soft drinks and iced teas. In the short term, it appears that consumers are going to continue to dine out less and drink more at home. But drinking habits can change significantly over time; in the long run, people may begin to drink and to purchase less as the economic recession continues. Even if overall alcohol consumption decreases, it does not mean that people are simply drinking less. A hidden danger of this statistic is that consumers may be foregoing purchasing expensive wine and instead buy hard alcohol to engage in more serious binge drinking. Most consumers are likely taking the middle ground and adjusting their spending habits accordingly, while not completely eliminating alcohol from their lifestyle. 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 877-LIQUOR-8 (877547-8678). 

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PEGGY JOHNSON: THE ICE WOMAN COMETH WHILE SÏKU GLACIER ICE VODKA BRIDGES THE GAP BETWEEN PRISTINE ANCIENT ICE AND MODERN SPIRIT INNOVATION, ITS FOUNDER STRIVES TO BRIDGE THE INDUSTRY GENDER GAP

Written by Elyse Glickman

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There are a lot of ultra premium vodkas out there, complete with jazzy promotions, excellent distribution systems for on and off-premise accounts and trend-setting packag-

ing. However, how many of them can actually claim they are “cool as ice?” Sïku Glacier Ice Vodka can, as Greenland glacier ice is an integral ingredient and distinctive aspect of the production process. The fact that the ice is shipped to Denmark, the distillation process is completed in Holland while its business is in Canada doesn’t hurt, either.

Even with this uniquely international way to put a world class vodka into a bottle and onto a shelf, it can be said one of the coolest things about Sïku is the fact that its CEO, Peggy Johnson—a veteran player in the packaged ice and bottled water industry with an international reach—is a woman executive in a still maledominated field. Though hard work and a unique concept helped Johnson reach the pinnacle of spirits industry success in a relatively short period of time, she remains soft-spoken and modest about her accomplishments, and prefers to maintain a clear focus on a vodka and eventual product extensions that are markedly different from other superb competitors.

JOHNSON’S LIQUID ASSETS Johnson traces her success back to being one of the founders of a packaged, ice and bottled water family business along with her brother Robert and other family members. In addition to developing an international Rolodex of contacts (some who would figure into the early success of Sïku Vodka), she wore many other hats in her earliest corporate venture, including numerous corporate activities such as business planning, capital raising, acquisitions and IPO planning. The constant stream of networking and meet-and-greets ultimately led Johnson to

her business partner, Guido Frank of Germany, whom she found to be a kindred spirit for unearthing a new spirits venture. “In order to succeed in a venture like Sïku. one must have an entrepreneurial spirit, the ability to never lose site of your objectives, the ability to take rejection, a good business plan and an incredible work ethic,” affirms Johnson. “(Frank) and I felt that the consumer would accept a new method of creating an ultra premium vodka, using our proprietary ice-blending process where we craft Sïku directly from ice. As a result, Sïku is the only vodka in the world that becomes liquid at -25 degrees Celsius without ever becoming water.” Johnson also emphasizes that when sourcing the key ingredient, they do not isolate the pure water of Greenland for the vodka. Instead, they only use glacier ice from the Qalerallit Sermia Glacier in Greenland, with ice that is up to 60,000 years old. To further freeze this exclusivity permanently, parent company Premium Glacier signed an exclusive agreement for worldwide rights to market products made from the ice and water of Greenland's glacier ice cap. As Greenland's ice cap represents 9% of the world's freshwater resources, it is one of the few sources of freshwater not contaminated by industrial or agricultural pollutants.

“In order to succeed in a venture like Sïku. one must have an entrepreneurial spirit, the ability to never lose site of your objectives, the ability to take rejection, a good business plan and an incredible work ethic...” — Peggy Johnson, CEO, Premium Glacier Ice Inc. The pivotal agreement that makes Sïku Glacier Ice Vodka possible is between Premium Glacier Inc. and Greenland Ice Cap Productions, the only company granted the concession by the Greenlandic government to harvest ice from the Qalerallit Sermia Glacier. The 20-year renewable agreement represents the first time that ice and water from this naturally pure, unpolluted glacier will become available to the world's consumers. “This agreement will open up the pristine ice and water of Greenland's ice cap to consumers and companies who want the best,” said Johnson at the time of the signing. “Independent tests have verified the glacial ice and water is of an unparalleled quality and natural purity when compared to any water on the market today.”

COLD, HARD CASH WELL SPENT Before Johnson, Frank and their team 22

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could freeze their assets and solidify Sïku’s existence, a lot of work had to be done to generate interest in their vodka, especially given the current crowded state of the category. However, Johnson insists her challenges were based more on financing and personal health issues than on any gender biases. Her goal was not to prove herself, but prove that Sïku Glacier Ice Vodka could live up to all of the mountain-high expectations for ultra premium vodka and endure once on the market.

Photo courtesy of GreenlandTourism.com.

Peggy Johnson, CEO, Premium Glacier Îce Inc. Photo Courtesy of Tom Donahue.

“As you might expect, financing was the biggest hurdle, but that is always problematic with a start up regardless of gender,” she states. “In the midst of the project I experienced a massive cerebral aneurysm, which brought additional difficulties of its own. However, we survived, and we have attracted quality people to the Sïku venture like Peter Boosalis of BrandOptix in Minneapolis. Whenever we relay the story behind the plans for Sïku, most people are instantly captivated and interested in becoming involved in our vision of creating an international brand surrounding the mystique of Greenland’s glacier ice. We have assembled a very good team of outside industry professionals and are continuing to bring people on board as our markets expand. We feel very fortunate to be able to attract the caliber of people that we have.” In her eyes, Sïku is a true David Vs. Goliath success story—a young company positioning themselves fearlessly against major giants. While Johnson says it has tested her team’s ingenuity and sharpened their creativity, the collective commitment shines through in marketing and promotions, which includes gaining distribution and visibility through high profile events. “Gaining distribution always takes longer than you initially anticipate,” Johnson muses. “We have to win over distributors in each market one by one so it takes time and patience. The first comment from newcomers is usually, ‘not another premium vodka!’ However, once they have the opportunity to taste Sïku and hear about Sïku’s incredible heritage and its origin, distributors are willing to listen.”

A WORLD CLASS EFFORT FOR A WORLD CLASS PRODUCT

“We will not destroy the glaciers as we harvest our ice directly in front of our

While the process of getting the Greenlandic Government to rewrite legislation to allow for the export of glacier ice out of Greenland was a complex and epic process (as ice is considered a natural resource of Greenland), this is only part of Sïku Glacier Ice Vodka’s story and mystique. The rest of the process, from the shipping of the ice to the distillation and ice blending to the bottling and packaging, ultimately renders Sïku Glacier Ice Vodka “a true spirit of the world.” Once the required quantity of the precious ice is sourced, blocks of ice weighing several tons are transported by boat to the factory in Narsaq, Greenland. This trip can take two hours and is dependent

is crafted in small batches. The bottle, meanwhile, was designed in the US by Peter Boosalis of Minneapolis, who has extensive involvement in the alcohol industry. The bottle’s virgin glass is blown in France by a major industry glass producer, Saverglass, and decorated in Germany by Deco Glas. However, the journey the product makes, from ice to spirit, is just as important to vodka connoisseurs and discerning distributors. Under the watchful eye of a master distiller at the Distillery, the ice is combined with a five-times distilled ultrapremium grain alcohol using a proprietary ice-blending process whereby the ice turns to vodka without ever becoming water.

upon the difficult weather conditions that often plague Greenland. Upon arriving at the plant, the glacier ice is processed and packed into 44 pound bags, palletized, shrink-wrapped and placed in cold storage ready for shipment by reefer units. When aboard Royal Arctic Shipping Lines, it begins its one-week voyage across the Atlantic Ocean to Aalborg, Denmark. Upon arrival on the European continent, the ice is unloaded and trucked to a cold storage facility in The Netherlands, which is approximately five kilometers from the Toorank Distillery in Didem, where the ingredients are assembled and the vodka

The ice and alcohol become liquid at –25 degrees Celsius and a naturally occurring vodka is born. The tanks containing the new born spirit are then allowed to rest for 24 hours. During this rest period, the 40% ABV ultra-premium Sïku develops its ultra-premium character, so smooth that it can be enjoyed neat. It takes another five days for Sïku Glacier Ice Vodka to reach the appropriate bottling temperature. Upon the bottles passing through the automated filling line, Sïku is packed into cases of six, palletized and warehoused at the distillery ready for shipment.

glacier, the Qalerllit Sermia glacier, as it calves... we’re not only working to produce the purest and best vodka available, but also do it responsibly.” — Peggy Johnson, CEO, Premium Glacier Inc.

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FIRE AND ICE The creation of the bottles is also a great part of the Sïku story, especially as many on- and off-premise professionals know that what goes on and around the bottle can effectively sell what’s inside the bottle, especially when dealing with trend-conscious consumers. Between the bottles being produced in France and decorated in Germany, the Sïku bottle comes together through a multi-stage process. There is the first printing of the four color process for the body of the bottles (blue, green, white, grey), followed by the bottles being fired for approximately two hours at temperatures reaching up to 1148 degrees F. The bottles cool for three to four hours, and during the cooling process, the screens for the second printing are prepared.

In the second stage of bottle decoration, the neck is printed in the four-color process at the same time that the distinctive platinum outline is applied around the Sïku logo. Due to the very tight registration required for this step, an optical system adjusts the positioning of the bottle while the machines have to work at a very low speed to ensure precision results. The bottle is fired again, for another two or more hours at approximately 1148 degrees F. Once the bottles have cooled, the image-making presentation is completed with the application of the translucent ice-green coating to the bottom. The final firing of the bottles lasts for 30 minutes, at approximately 446 degrees F. Finally after multiple firings the Siku bottle is ready to be filled with its icy world class vodka.

SEEN IN ALL OF THE COOLEST PLACES With so much effort poured into the creation of Sïku, it is no surprise that Johnson and her team have been aggressive and yet selective into how they have gained exposure and garnered a buzz for the emerging brand. “We have been working with, and have been associated with such well-known and well respected organizations as The Taste Of The NFL and National Geographic,” she says. “These early associations gave us and the brand credibility, and for that reason, we will continue looking for promotional opportunities with the right people and groups. Furthermore, we have achieved considerable brand-building through participation in special events and trade shows in which the Sïku brand has been prominently presented.” Because Sïku is, literally, ice, Johnson points out that all account launches and special event displays are accompanied by an ice sculpture. Naturally, at exclusive VIP and celebrity-driven public events like The Taste of NFL, more than 2,800 consumers enjoyed their first tastes and cocktails with Sïku Glacier Ice Vodka from an elaborate ice bar as well. Co-sponsoring other events including 26

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Photo Courtesy of Tom Donahue.

magazine launches, art shows, fashion shows and festivals have driven interest and sales. Sïku recently received rave reviews from attendees when the vodka was showcased during the TFWA World Exposition, the global forum for the duty free and travel retail industry held in Cannes, France October 27 to 31. Attendees were invited to experience Sïku after it was poured through an elaborate ice luge and served in glasses filled with pieces of real Greenlandic glacier ice from the same glacier that Sïku originates from. People could be seen “listening” to their drinks as they could hear the sizzle of the compressed oxygen escaping from the ancient ice. This was certainly not an everyday ordinary occurrence in Cannes! Interest in Sïku Glacier Ice Vodka in Europe, Latin America and Asia as in North America continues to grow. Just as she politely downplays recognition of being a successful woman in a male-dominated business, she also insists Sïku Glacier Ice Vodka is not a genderspecific spirit. “Sïku is meant to be enjoyed by all who appreciate quality,” she insists. “Sïku is made from glacier ice and ice is an important part of our key branding message. We showcase Sïku by using large ice carvings at all the events we are involved in, from major trade shows to

Team Siku celebrates in Cannes during Tax Free World Association 2008. Photo courtesy of www.visuel-photo.

launches in restaurants and lounges in the various markets that we open. We utilize ice and ice carvings to enhance the story surrounding our vodka.” As it turns out, the story, along with the proprietary ice blending process and the ensuing quality has resulted in a number of honors and awards, including the Santé Gold Star Award (2005, 2006, 2007 and 2008) and medals at the 2006 International Review of Spirits and the 2007 San Francisco World Spirits Competition. It also was included in the Steinway & Sons Owners’ Magazine spirits round up, where it topped the “Best of the Best Selection” with a score of 9/10. Steinway critics praised Siku for its “Balanced nose with light citrus, pleasing cream and a lingering finish.”

A COLD WAVE HITS CALIFORNIA And the critics are not the only ones who express that the spirit made from ice goes far beyond nice. Over the past three months, according to Andrew Pfeffer, Sïku’s Sr. VP Western Division Manager, the brand’s precipitous growth in California has been, “a tremendously exciting time for Sïku Glacier Ice Vodka. Moving at a pace that is anything but glacial, Sïku has grown from virtually nothing, to a vodka with distribution in several high 28

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end grocery chains, including Gelson's, BevMo, Ralphs and Luckys. Thanks to our distribution and marketing efforts. Sïku Glacier Ice Vodka can now be found in over 1300 stores throughout the Golden State.” Siku Glacier Ice Vodka is catching on with Hollywood decision-makers and trendsetters, especially as it has found a home at Nic's of Beverly Hills, one of LA's premier martini bars. The trendy restaurant and bar features Sïku in its famed “VODBOX,” a walk in, drink in vodka freezer room showcasing the best and most expensive and award-winning vodkas from around the world. In Northern California, meanwhile, Sïku has also become a favorite at the Four Diamond-rated SeaScape Beach Resort, where diners at the resort's award-winning Sanderlings and Palapas restaurants have come to expect the very finest. Sïku has also enjoyed high-profile exposure through its being the featured vodka at the kick-off to the Mercedes Benz Los Angeles Fashion Week in LA and the official vodka sponsor of the Daytime Emmy Awards, and at parties and events where only the coolest, most innovative products will do; that says a lot, so early in the game. “We have participated in numerous tastings and events in the L.A. area benefiting everything from the fashion industry to

COOL HOSPITALITY: SÏKU SIGNATURE DRINK RECIPES Sïku’s now famously balanced nose with light citrus, pleasing cream and a lingering finish makes it an ideal foundation for a variety of cocktails, from the simplest glasses to gourmet mixology creations.

BLUE SÏKU (AKA) BLUE ICE 11/2 oz Sïku Glacier Ice Vodka 11/2 oz fresh Lemonade 11/2 oz Pineapple Juice 1/2 oz Dekuyper Blue Island — just enough to give it the glacier blue color (Blue Curacao may be substituted if necessary) Add ingredients into a shaker half filled with ice. Shake well and serve in a sugar rimmed martini glass.

ICE CRUSHER 2 oz Sïku Glacier Ice Vodka

SWS sponsored Vodka and Caviar event held at the Sardine Factory in the Monterey/Carmel area. Pictured L-R: Annie Sayous, Central Coast Promos and Andrew Pfeffer, Sïku's Sr. VP Western Division Mgr.

Splash over ice in a brandy snifter

ICETINI 2 oz Sïku Glacier Ice Vodka Splash of Ice Wine or Eiswein (Germany) or a sweet dessert wine Pour into a shaker half filled with ice. Shake well, strain into a chilled martini glass. Garnish with cocktail pick of frozen sugar-coated grapes.

the Sustainability and Rebuilding of New Orleans to the opening of the new Eli Broad Theater in Santa Monica and the backing of local and national artists,” points out Pfeffer. “We also were a main sponsor of the Skylar Neil Annual Golf Tournament benefiting The Skylar Neil Fund. We have participated in distributor backed events, such as the SWS Spirits Show, as well as being one of the official supplier sponsors of the recently held Art of Food and Wine in Palm Desert November 6-9. In Northern California, meanwhile, we exposed Sïku to all the major buyers in the Monterey/Carmel area at the SWS sponsored Vodka and Caviar Event. We always become the main attraction due to the creativity of Ice Sculptures, which signify and represent the concept of ‘Sïku is Ice.’” Additionally, Pfeffer notes that the company is currently running dry demos at all the Grand Openings of the new BevMo stores throughout California. In November, Sïku started running demos and will be featured in all the Gelson's Stores in Southern California. “We evaluate each and every event individually, and do our best to insure that 30

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the consumer knows what they’re drinking, and the servers understand what makes Sïku Glacier Ice Vodka so unique,” comments Pfeffer. “Everyone from the 21 year old who wants to be hip, to the more seasoned veteran who has interests ranging from Art to Fashion and Charity. The word gets around quickly and people start to realize the flavor and superiority of Sïku. When we do an event, especially one that features ice carvings, it creates an amazing buzz and a good deal of surprise. I think the events we are doing are key to us gaining exposure to the consumer. In addition, we have shown tremendous flexibility with our distributor and their salespeople. We will work closely with on-premise accounts, such as Seascape Resort, a 5 Star Resort in Aptos that likes Sïku. Seascape Resort believes in the brand and will feature Sïku Glacier Ice Vodka on drink lists and on the back bar using our Siku lighted bottle glorifier.” In terms of day-to-day exposure, Pfeffer says it is also important to keep the reps focused on the key Vodka accounts to make sure Sïku is a player in addition to keeping the POS hanging on the shelf and on the bottle. He also adds that it

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Photo courtesy of GreenlandTourism.com.

helps allowing the consumer to taste Sïku without making a huge investment. The distributor and the team also have key roles in the brand building success. “Shawn Hackbarth in Northern California and Sarah Johnson Shopay in Southern California are working tirelessly to gain distribution and get retail support,” Pfeffer stresses. “This happens by having one on one relationships with buyers and the Southern Wine & Spirits California sales team and management. We are keeping ourselves flexible with our distributor and the retailer or chain by putting together aggressive programs. In addition we are also being flexible to the needs of the chains. We want to be partners with them, as well as our retail, on and off sale accounts and our distributor. This way, the customer knows they are number one. If they can make good margin on Sïku, then why try another Vodka?” Even with such focused efforts, however, the biggest challenges the company faces is getting consumers and retailers to change brands. While many retailers do not want to shell out cash for brands they’re not familiar with, the secret of Sïku is in “breaking the ice” with the clients; being personable, having relationships with key accounts and standing behind the brand. “We also face the challenge of the distributor having so many Vodka brands, the salesperson has a lot on their plate,” Pfeffer says. “We try and combat this by being professional, working as a partner, developing the right combos, and running aggressive incentives to get their attention. When the distributor believes in the brand, and the salesperson presents Sïku Glacier Ice Vodka, we rarely get a ‘no.’ The quality of the vodka, the beautiful package combined with Sïku’s smooth taste and incredible heritage make it a compelling story. Consequently, chains have been supportive, as we’ve gained new distribution at Gelson's, Lucky’s, Save Mart, BevMo, Ralphs, and we will soon be in Jon’s Markets. The price is competitive with the other Ultra-Premium Vodka brands, and

we are offering a way for the consumer to be unique and be the ‘first on the block.’”

ON THE HORIZON Thanks to Premium Glacier, Inc.’s exclusive contract for glacier ice and water from the Qalerallit Sermia Glacier the Sïku product line will feature Sïku Glacier Ice Vodka, a truly unique 40% ABV Ultra Premium Vodka, produced in the Netherlands as well as other product lines that are being developed. Johnson also mentions the company recently introduced additional sizes of the vodka into the European market and will be introducing these additional sizes to the North American market in the near future. All told, however, flavored vodkas are not going to be a part of the mix, for obvious reasons. “Flavors may be an important segment of the premium vodka category but we are more interested in focusing on Sïku’s pristine glacier ice heritage,” Johnson insists. “We are aiming to attract the vodka enthusiast who appreciates the finest quality. Period.” Even with progress moving far faster than a glacier’s pace, Johnson recognizes

that it is important to protect the grand past of the Greenland glaciers, not only for the future of the brand, but the future for the entire world. “We are donating to research global warming and glacier dynamics in Greenland,” she adds. “We de not destroy the environment as we harvest our glacier ice directly in front of the Qalerallit Sermia Glacier, as it calves (detaches from the glacier) into the ocean. A portion of the proceeds from the sale of Sïku Glacier Ice Vodka will be contributed toward research in the area of glacial dynamics in Greenland. Greenland’s glaciers deliver large quantities of freshwater to the oceans, so the implications of climate change are serious. Therefore, we’re not only working to produce the purest and best vodka available, but also to do it responsibly.” Siku Glacier Ice Vodka ice blended from Greenland’s glacier ice and distilled 5 times is perhaps the smoothest tasting vodka in the world. For more information, visit Sïku Glacier Ice Vodka by emailing info@Sïkuvodka.com or checking out the company web site, www.Sïkuvodka.com.

INDUSTRY EVENT THE ART OF FOOD & WINE

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he third annual Art of Food & Wine Palm Desert took place Nov. 6 through Nov. 9 on the grounds of the Desert Springs JW Marriott Resort & Spa. The four-day festival featured wonderful wines and spirits from around the world, delicious foods prepared by local restaurants as well as lifestyle and cultural seminars on wine education and classic cocktails. The impressive list of presenters included wine and spirits experts Philip di Belardino, VP of Wines, Banfi Vintners, David Nepove, Director of Mixology, Southern Wine & Spirits, and David Strada, Sommelier (US representative of the New Zealand Winegrowers). The Art of Food & Wine's main event, Grand Tastings, showcased 40 wineries and over 100 wine and spirit labels. For more information, please visit artoffoodandwine.com.

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Pictured L-R: 1. Vince Martin and Frederick Brand, District Mgr. of Dailys 2. Stefanie Bonner, Carolans Irish Cream spokesmodel 3. Diageo Chateau & Estate Wines 4. Ross Simon, Arizona Brand Ambassador, and his wife, Christiana, spokesmodel, and Marcelo Loureiro, So Cal Market Mgr., Sagatiba Cachaça 5. Sarah Shopay, So Cal Regional Mgr., Shawn Hackbarth, No Cal Regional Mgr., and Andrew Pfeffer, Sr. VP Western Division Mgr., Sïku Glacier Ice Vodka 6. Melissa Price, District Mgr., Skyy Spirits, along with Skyy brand team. 34

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COMPANY PROFILE

D'AQUINO ITALIAN IMPORTING CO Still Going Strong After Three Decades

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hen many beverage industry companies hit a milestone anniversary, the talk is often focused on the new things they plan to do to keep up with the competition. However for

The D'Aquino Italian Importing Company of Duarte, CA, the ultimate focus Gaetano D’Aquino with daughter, Sonia

Says company founder and patriarch Gaetano D’Aquino, “We have worked hard to develop lasting relationships where (people at our accounts) trust and believe in what we’re doing, based on our values of honesty, consistency and loyalty. We loved the ongoing opportunity to introduce American wine drinkers with our retailers to the Italian culture through our wines, and worked closely with our client stores to bring these experiences to the people via our family brand.” Fabrizio Renna, the company’s VP of operations, emphasizes that the production in 2008 for most regions in Italy was a bountiful one thanks to favorable weather conditions and excellent fruit. The Pinot Grigio and Chianti continue to be the largest sellers for D’Aquino in the U.S. market. “We carry Chianti DOCG’s (the top tier of wines), the Traditional Chianti Flask-straw bottle, Chianti Riserva and Chianti Classico Riserva,” he says. “We've also been getting great response to newer varietals from Southern Italy, including Nero D'Avola from Sicily, Aglianico from Puglia, Vermentino from Sardegna, Castelli Romani from Lazio and Asti Spumante DOCG-- Italian Champagne, regarded as the ‘bubbles of dreams.’ For many years, Americans have been celebrating with our Gaetano D’Aquino Asti Spumante, as we are on the occasion of our 30th Anniversary.” According to Patricia D'Aquino-Renna 36

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is on doing more of the same things that made them a solid, off-premise focused wine purveyor—but on an even bigger level. (daughter and Vice President of Sales and Marketing), the steadfastly family ownedand-operated company provides fine Italian wines mostly under their own labels to such major retail forces as Costco, Sam’s Club, WalMart, CostPlus, Trader Joe’s, Safeway and Albertson’s. And while their influence has grown from their Southern California hub into to the rest of the U.S., they moved into the Mexico market in 1996, and into Canada not long after that. At press time, their business in the U.K. and China was also on the rise. However, D’Aquino-Renna expresses that the strength of the family business and its enduring success lies at its very core. Adds the senior D’Aquino, “We have strived to maintain and stabilize our consumer prices, but still provide those consumers with great wines as well as provide our accounts with products that satisfy that demand. Though we sell over two million cases per year today, during the production and distribution of our products from our sources in Piemonte, Veneto and Tuscany and other regions, we have all eyes and ears open to protect our consumers and only bring the highest quality products to market.” He also says that because they do not have outside people in the field, they are “proudly accountable” for everything they put out from the actual bottles of wine to the services they provide for their accounts in terms of shipping, storing, displays and other

key issues. In fact, they are so committed to keeping their image consistent, they prepare all of the presentations by themselves. “We’ve never altered our goals, our passion for wine or our love for those we work with in our industry,” he elaborates. “This extends not just through me, but my daughters Patricia and Sonia, and son-in-law Fabrizio Renna. Every day presents a big opportunity to introduce new wines to the consumer and, really, something for everybody.” While Piedmont, Veneto and Tuscany are main production regions for D’Aquino’s wines, father and daughter note that they have exciting new wines coming out of Sicily, Puglia, Lazio, Verona and other regions. This is partially in response to the steadily increasing demand for Italian wines in the U.S. market. D’Aquino-Renna also points out that 7% of total Italian wines exported is purchased by North America. There has been a 33% increase in volume of all production of Italian wines in the last decade, and Italy remains the top importer of wine to the US. “We’re celebrating our 30th anniversary this year, and while we are committed to keeping our clients happy with our quality wines in the immediate and distant future, it is important to my father to thank our customers for their continuing support over the years and reflect on the history and the products that have made us strong,” she says.

SNOW QUEEN VODKA TAKES A NEW COURT A new regime at Marsalle Imports is taking shape to help grow the Snow Queen brand more effectively.

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“...under our management we plan to move the brand further forward on a retail level with both independent stores and national chains as well..” – Jimmy Todd President, Marsalle Imports

now Queen vodka, as you have seen in our pages, was one of the great spirits success stories of 2008. The first “dynasty” of rulers used high profile personality and high profile tactics to crown Snow Queen one of the year’s products-to-watch. However as things progressed, Marsalle Imports, which shared the responsibility of bringing the ultra-premium vodka into U.S. markets, decided it was time to make some management changes that would ensure the continued success of Snow Queen which involved some significant streamlining. As can be expected with a major change in corporate policy, there have been rumors floating around about the fact that the “Queen” had left the building, so to speak. However, Marsalle Imports’ President Jimmy Todd is adamant in assuring clients and distributors that the company’s recent businesses decisions will instead protect and propel Snow Queen’s growth. “We will continue to be strong in the on-premise market, as our brand was initially built in the on-premise segment throughout the country,” says Todd. “In 2009, we are gearing up to make similar in-roads in the off-premise/retail segment as well. While we plan to maintain the success with the on premise accounts that the previous management for Snow Queen had established, under our management we plan to move the brand further forward on a retail level with both independent stores and national chains as well.” Another key issue Todd wishes to address is that with the changeover, the objective was to shift the focus mainly to the brand itself rather than the personalities of the people acting on behalf of Snow Queen. He stresses that under the new, more streamlined group overseeing the brand’s growth the emphasis will be primarily on the brand and the quality of the product

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inside the bottles. And to achieve this, there is a new ad campaign in the works for 2009 as well as a slew of innovative point-of-sales materials in the works for both the on- and off-premise accounts. In terms of the POS materials, we are coming out with a new three to four case rack for the retail stores, as well as napkin caddies, condiment trays and highlighted back-of-the-bar display pieces. We are also very excited about a new pouring device that we are designing that will light up the whole bottle. We will continue to spend money and do events, but we’re going to be more selective about what events we do. We are also going to show the same kind of discretion in terms of how and where we spend the money budgeted to advance the brand. Through all of these strategies, we want to make it clear to our clients that Snow Queen is not going away.” In addition to the new strategies the hand-picked members of the Snow Queen team will be carrying out in 2009, Todd is also quite excited about Snow Queen’s newly minted organic certification, which is in the process of being incorporated into the labeling on the bottles, and a Double Gold Medal win at the San Francisco Spirits Competition, recognized as one of the best vodkas in the world. “Everything for Snow Queen is done first class, and nothing will change on that score,” Todd affirms. “If it is not first class, it won’t be done. I would also like to let our customers know that they can count on a Snow Queen rep coming through their door soon. In the coming year, we’re going to work harder to not only maintain what was built, but improve on the message that was put out there in terms of selecting wholesalers, implementing the sales and marketing strategies for each market. Snow Queen will be on all the shelves…that’s our goal.” 

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POUR OF THE MONTH

Finest CALL POUR OF THE MONTH

Southern California Valentines Liquor Valentines Liquor is one of the most popular liquor retail stores in Arcadia, California and has been providing their customers with some of the finest wine, spirits and beverages for the past 25 years. Located near the world famous Santa Anita Horse track, Valentines liquor is a popular stop for visitors and locals looking for unique spirits and beverages to quench their thirst.

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Sherman Callahan, Beverage Buyer Valentines Liquor

Store owner Armen Chemsian stocks a wide variety of hard to find Spirits, Wines and Beer and takes pride in also carrying a wide selection of Finest Call Mixers. "Without a doubt, Finest Call Mixers offer the best quality and value of any mixer products in the marketplace and our customers are very happy with the taste and selection of the flavors available. We stock everything from Sweet & Sour to Mango and Mojito and always recommend that our customers give the other flavors a try. With consumers cutting back on eating and drinking out, we've noticed a big trend with our customers buying their beverages and enjoying them at home. Our customers still want to enjoy great tasting drinks as they often do at restaurants and bars but, are looking at doing it at a more reasonable cost. I often give our clients tips on creating and making specialty drinks at home and just as important as it is to use fine spirits and ingredients, It's equally as important to have a mix that compliments and enhances the cocktails. With Finest Call Mixes, our customers can create anything available onpremise and do it better at a fraction of the cost!" "We are proud that we have been able to serve our customers for the past 25 years and appreciate all of their continued support. Our goal is to provide our customers with a great selection of fine wines, spirits and beverages at competitive prices and provide the best customer service to them."

Northern California Postino Restaurant Postino is located in a historic brick and slate-roofed Carr Jones designed former Post Office in the hillside town of Lafayette. Postino’s brick walls, slate tiled floors, fireplaces and intimate dining rooms evoke images and feelings of Italy and the Mediterranean. The dramatic ambience at Postino is captivating and enchanting. Inspired by the traditions of Italy with an American inclination, Postino delivers a seasonal menu using the finest local and imported ingredients making it the perfect place for a family dinner or sophisticated private event. They also have 5 different rooms within the restaurant that can be tailored for private events accommodating from parties of 8, up to groups of 55. Some of the dinner favorites at Postino include the starter of Postino Formaggio; Claudel Brie, Laura Chenel, Carr Valley Menage and Gorgonzola Dolce. Next move on to the Capellini; Angel hair pasta with butter poached Lobster, white

Bar Mgr. Mark La Franchi shows off the Finest Call products

corn, cherry tomato, chives and chervil. For main courses try the Anatra; pan roasted duck breast over wild rice risotto with fresh cherry duck glace, or the Brasato of Short Ribs in rosemary balsamic barbeque sauce over sweet corn polenta, or perhaps the Sicilian style Swordfish with smokehouse almonds, golden raisins and rosemary brown butter over garlic whipped potatoes. At the Bar Postino’s mixes of choice are Finest Call which feature a complete line of superior products from Sweet & Sour, Grenadine, Coconut, Pomegranate and Prickly PearSyrups, two Bloody Mary mixes, the Raspberry, Mango and Strawberry Purees to the premium Cosmopolitan Martini, Sour Apple Martini and Mojito mix. As bar manager Mark La Franchi says, “Our customers appreciate quality in the food and at the bar. That’s why we use Finest Call products. They are the best in the business” Postino Restaurant is located at 3565 Mount. Diablo Blvd, Lafayette, CA 94549

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