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2 INDUSTRY INSIGHT By Alan Forester, CPA, Attorney

36 BRAND PROFILE 360 VODKA

4 WHAT’S BREWING ARTS & CRAFTS…AND IMPORTS, OH MY! An impressive armada of import and craft beers continue to underscore global changes in the beer industry.

38 NEW PRODUCTS & PROMOTIONS 40 CATEGORY FOCUS HISPANIC PRODUCTS HOLIDAY SHOWCASE Culturally relevant marketing and packaging is as vital to what’ inside the bottle when it comes to keeping sales and spirits high.

15 BRAND PROFILE CLAUSTHALER PREMIUM NON-ALCOHOLIC BEER

52 INDUSTRY EVENT TALES OF THE COCKTAIL

16 TECHNOLOGY PROFILE LET'S TALK TWITTER It's digital age word of mouth.

54 INDUSTRY NEWS 62 POUR OF THE MONTH FINEST CALL MIXERS

18 COVER FEATURE LHASA BEER Tibet’s premiere beer makes its way to the US and unites Asian mystique, the European lager tradition, American brewing experience, and philanthropic action in a single bottle.

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64 BRAND PROFILE MAKERS MARK 66 CATEGORY FOCUS THE FRENCH EVOLUTION Value and innovation strengthen France’s hold on the U.S. drinks market.

28 MARKETING FOCUS BOTTLE MAKEOVERS Packaging overhauls are now de rigueur for spirits brands

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developing a twitter strategy Twitter may be practically instantaneous, but the fruits of your tweeting may take weeks to be apparent.

be consistent. Tweet daily, at different times during the

Taller statuesque bottle shape

day. This increases your exposure to followers and will help you literally get a hang of it.

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be balanced. Tweeting about things you do/sell/offer is fine, so long as you aren’t overdoing it. Mix in RTs of interesting other tweets; seasonal/topical observations; @replies to questions/comments of followers.

Logo printed on solid color band stands out

observe. Watch how others tweet, and see what gets RTed and/or @replied to. Grow your network gradually. Commit to spending time each day or at least each week to finding new followers. Doing it massively (i.e., following 1,000 before you even have 100 followers) will appear suspect. And think of expanding your network not just by searching with wine and spirits in mind, but also exploring regional Twitter people and topics—local followers are simply more likely to walk in your door.

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be someone. Yes, you are a business but the most successful businesses on Twitter project a personality, not merely products and services. One vital caveat: if you are tweeting as a business rather than as an individual it is probably a good idea to have one person do the tweeting in order to develop a consistent tone.

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

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Beverage Industry News VOLUME 101, ISSUE NUMBER 37 FOUNDED IN 1934 www.binonline.net

A.B.C. LICENSE TYPE 47 ADVANTAGES AND PITFALLS Many individuals throughout the state of California obtain a License type 47 instead of type 48 license pursuant to the Alcoholic Beverage and Control Act to operate a bar on their premises. The reasons for doing so vary from the inability to obtain a bar license, otherwise known as License type 48, to the desire to allow individuals into the premises whom are not yet 21. For example, often there is a quota of how many liquor licenses may be issued in a particular area, so sometimes it is easier to buy an existing liquor license from someone and transfer it or to operate under a License type 47. Although the reasons for obtaining a License type 47 may vary, the limits on the license do not. The Alcoholic Beverage and control act clearly states that 50% of the premises’ revenue must come from the sale of food, while the remaining 50% may come from the sale of alcohol. Essentially, under License type 47 the owner must maintain the licensed premises as a bona fide eating place. This means that the owner must maintain a suitable kitchen facility and must make actual and substantial sales of meals for consumption on the premises. The Alcoholic Beverage and Control Act states specifically that, ``Incidental, sporadic or infrequent sales of meals or a mere offering of meals without actual sales is not compliance.'' To qualify as a meal the premises must offer the usual assortment of foods that are commonly ordered through different meal times. However, the Alcoholic Beverage and Control Act make clear that “victuals only as sandwiches or salads shall not be deemed incompliance with this requirement.” Even though meals must be served they need not be sold in conjunction with a guest’s purchase of any alcoholic beverage. A license type 47 is often the most beneficial to an owner not only because it is easier to obtain but also because minors are allowed to enter and remain on the premises at all times. This means, a likely increase in the consumption and sale of food and non-alcoholic beverages. While on the other hand, the holder of a License type 48 may sell beer, wine and distilled spirits for consumption until 2:00a.m. and food service is not required. Of course with a License type 48, minors are not allowed to enter or remain on the premises. This means that there may not be a sale or giving away of any alcoholic beverage to any person under the age of 21 and no person under the age of 21 shall purchase alcohol. California Business and Professions Code Section 23396 sheds more light on this issue. According to Section 23396, “no alcoholic beverages, other than beers, may be sold or served in a bona fide eating place for which an on-sale license has been issued unless the premises comply with the requirements proscribed in sections 23038, 23038.1 or 24045.1.” In order to act in compliance with Business and Professions Code 23038 the owner of such a premises must maintain a “bona fide eating place” as briefly mentioned above. Such an eating place must be kept open for the serving of meals to guests for compensation and have a suitable kitchen facility. Generally, a suitable kitchen facility must be connected to the main premises, contain appliances for cooking an assortment of foods for ordinary meals, and be kept in a sanitary condition. Additionally, the kitchen must comply with all of the rules and regulations of the local health department. In sum, there are both benefits and drawbacks to obtaining a License type 47 for your premises depending upon your business’ individual needs. When deciding which license to obtain individual owners must evaluate whether or not they can operate as a bona fide eating-place with 50% of their profit generated from the sale of food. 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. I

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Perfection is Only a Bottle Opener Away.

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WHAT’S BREWING

Arts & Crafts…and Imports, Oh My! An impressive armada of import and craft beers continue to underscore global changes in the beer industry.

great to think that there are more than 1,500 brewers and nearly 13,000 labels of beer available in the U.S. today.” Adding a bit of All-American flair to the proceedings is Hall of Fame baseball player Johnny Bench and business expert Jason Jennings, both of whom will speak during the General Session. There will also be two landmark panel discussions, “It’s Not Your Father’s Beer Business: How the World has Changed” and “Because Alcohol is Different,” interactive discussions that bring the major changes in the beer industry into its proper and fast-changing context. “It’s Not Your Father’s Beer Business,” taking place on Wednesday, September 23 features an illustrious group who will go into depth on the hows and whys of consumer pattern shifts in the beer industry. They include Don Blaustein (who most recently served as president & CEO of Heineken USA), Victoria Horton (President of the California Beer & Beverage Distributors Association), Aldo Madrigrano (President of Beer Capitol, Inc., a Milwaukee beverage distribution business), and Beer Business Daily editor/publisher Harry Schuhmacher.

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hen it comes to beer, ale, stout and other brews that make taste buds hop, what was once novel, niche and even considered a little bit elitist a generation ago is now part of the category’s mainstream. Some of the world’s beer giants have drafted some of the ambitious smaller craft and import players into the big leagues, while others are looking to the playbooks of the most successful independent brews for ideas and inspiration. However, in the large playing field at the arena staged this year at Caesar’s Palace, the shared goal among brands large and small is to score points with restaurants, bars and retailers on the frontlines and with consumers in the endgame.

And Speaking of What’s Brewing… Sub-premiums and crafts are using this opportunity to take center stage in a celebratory way, at the 2009 NBWA show. While major players such as Miller/Coors will no doubt have a presence, the small guys are taking advantage of wearing their big hearts on their sleeves. NBWA President Craig Purser is particularly passionate when it comes to the lineup of speakers at this year’s show. “We are excited about Jim Koch leading off a lineup of dynamic speakers who will be addressing more than 3,000 men and women in the beer industry,” said Purser. “Through his entrepreneurial spirit, creativity and determination, Jim has helped shape the craft beer industry in this country, which invigorates the entire American beer industry. It’s 4

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More than Just Foam Rising to the Top Like many industries, size is everything when it comes to what consumers are looking for. However, the paradigm is shifting to the fact that bigger doesn’t at all mean better when it comes to sales. A generation ago, people were loyal to brands they immediately recognized. Today, consumers with a broader and more global frame of reference are opting fo 8

the harder-to-find and hand-crafted over the big brands made in large quantities. “Our expectations for the NBWA this year are to meet with our key distributor partners and share our vision for 2010 as well as new projects and brands we will be launching in the coming months,” states Harry Snyder, Vice President of World Brews. “(The industry is) no longer just Regular or Light Beer. The many wonderful Imports from around the World and the fantastic American Craft offerings have made many of these brands a hand-sell.” Here are some recent statistics to consider with regards to the Beer category that reflect the mindset, observations and strategies of attending professionals like Snyder: • Overall beer volumes are down 4.1%. • Bud Light volumes down 8.6%, losing an entire share point, driving prices up 67 cents per case. • Budweiser is down 13.8%, losing an entire share point, elevating prices 78 cents a case. • Miller Lite is down 11.5%, losing 0.6 share, with pricing up 79 cents per case. • Corona Extra down 4%, flat share, but with pricing down 74 cents a case. • Heineken down 12.8%, share 0.2, with pricing up 34 cents a case. • Only Coors Light went up this year by 1.1%, gaining 0.4 share points at 35 cents a case higher pricing. • The top six mega-brands are losing about 250,000 case equivalents every sell day. “Sub-Premium” companies like Boston Beer (producers of Sam Adams), meanwhile,

WHAT’S BREWING continued entire American craft beer segment gained significant momentum, with sales ballooning. Wandell noted that this sub-category, “has picked up an extra sales holiday in the aftermath of the beer summit, as its sales and velocity…are better than the strong Memorial Day results it posted.” The Brewers Association, meanwhile, reports that despite the economy, craft volumes were up 5% in the first half of 2009, compared to being up 6.5% in the first half of last year. While this is a slowdown, the independents are still outpacing the rest of the beer category and, indeed, much of alcohol beverage business. The U.S. now has 1,525 breweries, the highest number in 100 years according to the Brewer’s association, thanks to a mix of factors that include craft brewing innovations, changes in consumer habits and a collective shift in paradigm that opts for quality over quantity.

are hedging their bets by increasing prices during economic downturns. According to Boston Beer CEO Jim Koch, keynote speaker at the 2009 NBWA Trade show, when things get better, a company is sitting pretty with a big fat margin. It is a calculated risk that has paid off, not only for good old Sam Adams, but with craft beers and sub-premiums, which go into the arena—even with higher base prices—with more going for them, including higher perceived value, better quality, an artisanal cache and the notion that since liquor is an affordable luxury, a savvy consumer is better served spending a little more money on a much higher quality product. Perhaps for this reason, imports and craft beers are slowly but surely taking flight at larger supermarkets and mass retailers the way they did a few years earlier at specialty retailers. Imports rose 2.8% this past July, which is quite an acceleration from being slightly down year-to-date. Crown Import’s volumes, for example, were up 8.8% although pricing was down 2.8% due to more promos and more Modelo Especial cans in the mix. The image of beer itself has been elevated, from game day staple to cocktail party classy, thanks to effective public relations— planned or otherwise--that shift consumer perceptions of how and where beer can be enjoyed. Across the country, savvy chefs and brew pubs have bridged the gap between fast food and fine dining, using beer/food pairings and recipes integrating beer as primary vehicles. Even a non-sporting event, such as President Obama's beer summit on June 30, show that sales can be helped by media frenzy. Dan Wandell from IRI pointed out that “brands involved (Sam Adams Light, Blue Moon, Buckler NA and, yes, even Bud Light) and their brand families received a boost in sales.” Among NBWA show participants, from beer makers to decision makers, the major event of the past summer was that the 6

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A World at their Feet and Their Fingertips Though many of the exhibitors from the U.S. and around the world are using internationalism in a variety of creative ways to generate excitement for their brands and products at the show, it is important to take a look at how they are reaching out to consumers in much the same way, using upscale and cultural events to broaden their base. Heineken USA, the exclusive USA importer for Heineken as well as the Tecate, Tecate Light, Dos Equis, Sol, Carta Blanca and Bohemia brands from FEMSA Cerveza of Mexico, is using its 18th turn as a US Open Tennis Tournament sponsor to elevate its cache through both charitable outreach and upscale VIP events. 8

For example, the “Heineken with a Heart” event, which took place Aug. 25 at the USTA Billie Jean King National Tennis Center, brought together New York area business leaders, tennis greats and celebrities together for an evening of socializing and fundraising. Heineken USA also introduced the new Heineken Light Lounge for this year’s tournament, where fans could purchase ice cold Heineken and Heineken Light while engaging in several interactive promotions. Newcastle Importers, exclusive US importer of Newcastle Brown Ale, America’s No. 1 imported ale, meanwhile, unveiled its third trimester “On the Road with the One and Only” retail promotion in partnership with Spin Magazine, where a lucky consumer would win the opportunity to go on tour for one week to document life on the road with up-and-coming band Shout Out Out Out Out. “Music is a big part of our consumer’s life and a week on the road with a unique band like Shout Out Out Out Out is an opportunity our consumers won’t want to pass up,” commented Colin Westcott Pitt, Brand Director Newcastle Brown Ale, Heineken USA. “The program offers us a great way to connect with our loyal consumer base, draw new consumers to the brand and provide our retail partners with the tools to increase their sales of high margin Newcastle Brown Ale.” The NBWA show also proceeds Oktoberfest, the annual celebration of beer culture from Germany, The Netherlands and other spots in urope. Wisconsin’s Leinenkugel kicks off their Oktoberfest season with a newly designed label bearing a rich fall theme, evoking the perfect pairing for crisp autumn evenings visually, while the beer’s traditional German Marzen-style flavor accomplishes this for taste. Available in late-August through October each

WHAT’S BREWING continued beers can make a huge difference in sales, especially as the rise of premium imports such as craft beers on the market, consumers have been inundated with choices. “Much of the joy of beer drinking is making new discoveries,” Zimmerman says. “I think that (we are now living in) a true golden age in beer for consumers in the U.S. as far as selection and quality. For this reason, pairing beer with food has become a very important part of the marketing strategy for the craft and premium segments. In fact, our Svyturys Traditional Collection, highlighted in a sampler sixpack of our three most essential beers, is marketed in just that way. With our tag line, ‘Brewed for Food,’ we have made a focused marketing effort to position the brand directly at the upscale import buyer.” Though some importers see the economy as a catalyst for change in the beer world, Zimmerman feels Svyturys has not had to change its approach much because the company has always targeted a more sophisticated consumer. “Beer covers such a wide segment of the adult beverage industry that there is really no bad time to be in it if you are willing to make the necessary adjustments in your business model to accommodate the current economy,” he says. According to Daan Bastijn, CEO of Bavaria USA in Atlanta, Millennial consumers (21-35 years old) have demonstrated that they are inclined to identify with more unique, less mainstream brands like imports and crafts, helping grow the overall category consumer base. “In order to stand out among the crowd, a brand has to have a more compelling value proposition,” says Bastijn. “Consumers are looking for authenticity in the story behind the beer and Bavaria has such a unique and intriguing story. While it is the second largest brewery in Holland, it’s still 100% family-owned. The Swinkels family has been brewing Bavaria for seven generations, and is still committed to brewing the highest

year, Leinenkugel’s Oktoberfest beer is brewed with Munich, caramel and a blend of 2-row Pale malts. “We began brewing Oktoberfest in 2001 in honor of our great-great grandfather who came from Germany and started Leinenkugel’s in 1867,” said Jake Leinenkugel, president of the 142-year-old Upper Midwest brewery. “Oktoberfest has grown into a seasonal favorite and the handcrafted brew’s nationwide popularity continues to grow year after year.”

“Beer covers such a wide segment of the adult

beverage industry that there is really no bad time to be in it if you are willing to make the necessary adjustments in your business model to accommodate the current economy.

St. Pauli Girl Beer, meanwhile, tapping into the same seasonal spirit with its “Celebrate Oktobeerfest” fall retail promotion, jam-packed with an array of point-ofsales goodies and chain grocery program. Off-premise, the brand will create a sexy atmosphere through its St. Pauli Girl merchandising items starring 2009 St. Pauli Girl spokesmodel Katarina Van Derham and featuring St. Pauli Girl Lager and Special Dark graphics. Retailers can enhance Oktobeerfest displays by promoting addedvalue coupons off the combined purchase of St. Pauli Girl and any beef or chicken item. Comedic grilling experts Mad Dog and Merrill will complement Oktobeerfest savings booklets via an online purchase discount off their latest barbecue cookbook. Dan Zimmerman, Brand Manager, B&I Overseas Trading, Inc, importers of Lithuania’s Svyturys beers, observes that compatibility between different foods and 8

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quality beer while following stringent environmental standards. .

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– Dan Zimmerman, Brand Manager, B&I Overseas Trading, Inc. Modelo Especial is taking its sophisticated image in a different direction back toward elegant entertaining with a promotion featuring Grupo Modelo expert brewmaster, Cesar Martínez Guzmán. This campaign

Cesar Martínez Guzmán, Grupo Modelo expert brewmaster with Shelly Miles, host of “San Antonio Living”

launched in Texas, features Guzmán offering up serving suggestions on local lifestylethemed programs and at on-premise accounts, where he sampled the new brews with local print media reps and consumers. Thanks to its early success, the campaign will be extended into other U.S. markets in the remainder of 2009. Sapporo Breweries, meanwhile, vigorously engages in marketing activities. Along with its regular beers, which have been widely embraced sicne 1984, the U.S. operations place emphasis on its innovative and premium beer products, such as Yebisu Beer, standard Sapporo Black Label, happo-shu (low malt) brands Hokkaido Namashibori and Sapporo Sugomi and genre-pioneering productslow-alcohol beverage Draft One,

WHAT’S BREWING continued brewery's biggest annual spectacle: pouring thousands of pounds of fresh (as in “just harvested a few days ago”) wholecone hops into their kettles and then shoveling them all back out again to make Fresh Hop Pale Ale, which brewers describe as, “a celebration of the harvest as heady as a Thanksgiving feast.” Also in the works was the limited batch Hibernation Ale and a newly introduced group of Stranahan's Whiskey-barrel-aged beers, which this year will include a barrel-aged Hibernation in addition to barrel-aged renditions of Yeti Imperial Stout and Old Ruffian Barley Wine. Great Britain’s BrewDog (brewdog.com) is generating its own British invasion by bringing its most ambitious brew to the United States – the Atlantic IPA, the first commercially available, genuine seaaged IPA in over two centuries. The idea for this well-travelled new brew came about when company cofounder James Watt received an 1856 “Brewers Handbook” as a gift, which contained an original IPA recipe and provided inspiration for Atlantic IPA. As a modern homage to traditional Indian Pale Ales, the Atlantic IPA spent two months aging aboard Watt’s mackerel trawler in the North Atlantic. The incredible journey involved a tense barrelrescue-mission, beatings from force ten storms, 60 foot waves and encounters with killer whales—all of it which can be viewed on YouTube and tasted within its malty flavor, with hints of biscuit, toast, caramel, pirate ship oak, salt, tobacco, honey, pine and vanilla.

Umai Nama and W-DRY in pursuit of bitterness and clear aftertaste.

Independent Brewers and Drinkers Get Crafty

“In addition to empowering purchasers, this

You know what was once niche has gone mainstream when a special web site has been set up to bring hardcore craft beer enthusiasts together with brands that were once a chore to locate. BeerPetitions.com, a new website launched this summer, aims to empower craft beer drinkers to centralize their beer demands online so that local retail establishments will know the beer brands their customers want to purchase. “BeerPetitions.com is a great resource for general beer drinkers and purveyors of extreme craft brands,” says Luke Livingston, social media expert and author of industryleading BlogAboutBeer.com. “The general public is now able to collectively organize to convince distributors to bring wide-reaching beers such as Yuengling lager to a new state, while extreme craft drinkers can petition a specific retail shop or bar to experiment with a rare beer brand that is already available through a distributor.” Adds BeerPetitions.com founder Brandon Turman, “In addition to empowering purchasers, this simple tool will also help craft breweries, craft distributors, and retailers better understand the changing tastes and demands of their local consumers.”

simple tool will also help craft breweries, craft distributors, and retailers better understand the changing tastes and demands of their local consumers.

Whole-cone hops used to make Fresh Hop Pale Ale.

Packaging: From Six-Pack to Sophisticated

In Colorado, Great Divide Brewing Co. is busy creating craft beers as storied as they are flavorful. At press time, the company’s brewers were in the midst of creating the 10

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Deschutes Brewery to design the label for Jubelale, the brewery’s annual holiday brew.

Though Christmas is months away, Bend, Oregon artist Tracy Leagjeld had fresh snow in mind when she was commissioned by 8

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– Brandon Turman, founder, BeerPetitions.com This year’s design is perfectly suited to what’s inside the bottle, as Brewer John Abraham describes this year’s holiday brew as having, “a spiced nose, with hints of citrus, brown sugar and pine. Flavors of chocolate, molasses, dates, nutmeg, cinnamon and cloves stand out against the caramel backbone from the 1,400 pounds of medium and dark crystal malt.” Mexico’s Dos Equis, meanwhile, has had a lot of fun as well as a sharp blast of brand equity with its successful Most Interesting Man campaign. It is now taking this playful push in a seasonal direction with its Most Interesting Tricks Halloween program that attracts consumers with a variety of unconventional display enhancers including a Dos Equis branded steamer trunk, framed portraits of the Most Interesting Man and Dos Equis’ Most Sacred Magician Tricks, along with eye-catching pole toppers, price cards, basewrap and cooler decals. “We have created this fullyintegrated Halloween program to drive display activation, purchase and trial of Dos Equis Lager and Ambar beer by appealing to the trickster in us all,” said Breege Murphy, Channel Marketing Manager, Heineken USA. “The program includes all of the elements consumers will need to invigorate their Halloween entertaining and provides our retail and on-premise partners clever and mysterious Halloween themed merchandis-

WHAT’S BREWING continued ing and POS materials to provide added value to their customers and improve their own bottom line’’ Corona Light is making a fashion statement of its own with a tall, slim 12 oz. can accessorized with a comprehensive marketing campaign. Introduced in select warm weather markets such as California, Florida and Arizona earlier this year, the new Corona Light can is now going national. While the can undoubtedly has an appealing, sleek new look, Jim Sabia, executive vice president of marketing for Crown Imports, draws attention to it practical side. “The new tall can package enables premium light beer consumers to trade up and enjoy the refreshing taste of Corona Light in a more convenient form,” he says. “We are putting significant support behind the new can package to extend the already strong appeal of the Corona Light brand via a contemporary tall can package that is already generating impressive trial at retail.” The new marketing campaign features the serene and iconic Corona beach scene, captured in and framed by the top of the new can, as well as a 15-second spot that launched in mid-August during preseason NFL games on ESPN and the NFL Network, and continues through regular season NFL games on CBS, FOX, NBC and ESPN.

“Green” Beer…Not just for St. Patrick’s Day Anymore! San Diego-based Karl Strauss Brewing Company is not just putting time into creating its latest batch of finely crafted artisanal beers, but partnering up with another firm to protect the environment in the process. Greenhouse, a firm focused on revolutionizing the home ethanol market with the world’s first home ethanol system (called a Microfueler), is converting Karl Strauss beer waste into clean e-fuel for use in the San Diego community. “We ran a pump from one of our fermenting tanks filled with yeast directly into the Greenhouse truck. It went smoothly and it will be an easy process going forward,” Explains Shawn Steele, Karl Strauss Quality Control Manager. “Instead of having to dispose of the spent yeast and beer waste ourselves, Greenhouse picks it up and takes it down the street to covert into clean ethanol.” “Karl Strauss has been a leader in San Diego’s craft beer industry for twenty years and we’re proud to be partnering with Greenhouse to lessen our environmental impact,” adds Chris Cramer, Karl Strauss CEO and cofounder. “We love that we get to support a local company while doing something good for the environment.” The increasing consumer demand for “eco-friendly” beer makes this year’s NBWA event a perfect time for Bavaria Beer to debut its website, www.bavariagreen.com. The site details many of the sustainable practices that Bavaria has used for decades to reduce the brewery’s impact on the environment. “The (founding) Swinkels family thinks in terms of generations, not financial quarters, and continues to brew the highest quality beer while following stringent environmental practices,” says Bastijn. “We believe we have a unique consumer proposition and an ideal brand solution for a glaring gap in the current beer market. The NBWA event 12

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WHAT’S BREWING continued This inspired concept was devised by New York City-native Tom Manning. Looking for other distribution methods in New York State for selling wine in grocery stores, he developed a low proof wine that could be sold to small neighborhood stores

is an ideal forum for communicating this message.” Back in Colorado, New Belgium Brewing continues its mission to blend together artisanal beer production with philanthropy and environmental sustainability. Most recently, New Belgium launched a series of innovative social media campaigns, which have successfully grown the brand's online community and strengthened brand presence in popular social networks. With the help of Backbone Media, a local marketing agency, New Belgium began its journey into social media with a comprehensive audit of its online brand presence. “Before we could develop an effective strategy, it was critical to determine where people are talking about our brand, what are the popular topics, and who the influencers are," states Adrian Glasenapp, Branding Activities Manager at New Belgium. “In addition to the audit, Backbone developed a real-time social media monitoring dashboard for New Belgium to identify trends and engage in the online conversations about their brand.”

To bring this success within reach, Chateau Diana offers its beer distribution partners a proprietary wine training program (“Chateau Diana Wine 101”) and food pairing charts that keep selling wine simple. Manning reasons that if a beer wholesaler can sell the mirco-brews, pack and sizes they do, wine should be and often is natural progression for them. Furthermore, all of Chateau Diana’s employees are well versed in the program and make training distributor partners an integral part of their jobs. “Wines are no longer seen as pretentious, or for wine snobs only,” says Manning. “We strongly believe that wine can and should be available to enjoy everywhere from a burger joint to sports arenas. The beer wholesaler has the ability to reach the C & D accounts on a weekly basis. This allows the beer wholesaler to monopolize those accounts with both beer and wine giving the customer a one-stop vendor. We recently released a 6-unit/1.5 liter bag-n-box wine under our Black Oak label.” The boxed wine last four weeks once opened, compared to bottled, which lasts only four days. Our brands range from $5$19.99, and Chateau Diana provides a variety of flavor profiles. I

“ Wine is an incremental sale for the

beer wholesaler, and when the beer season is soft the wine selling season is strong.

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What Else Goes Best With Beer?

and supermarkets. He felt that the beer distribution network provided the best coverage and greatest opportunity for growth. The idea took flight, thanks to the support and visions of Simon Bergson and Bill DeLuca at Manhattan Beer, and thanks to this Chateau Diana is well on its way to having its brand of wines filtering through to the consumers via beer wholesalers through out the US. “In today’s economic climate, everyone is looking for alternative ways to grow their profits,” details Manning. “Participating in the NBWA show allows us to showcase our brands and make members aware of this exciting profit opportunity. We hope to gain more beer wholesalers to add to our distributor networks. One of Chateau Diana’s key selling points from the business-to-business perspective is that we are family owned and operated much like the beer distributor network. We can respond immediately to the needs of both our customers and their consumers.”

…Wine, according to Dawn Manning, Owner of Chateau Diana, a company that sells wines to beer wholesalers. And when you consider the growth in popularity of wine, teamed with increasing sophistication in beer selection, this kind of endeavor makes perfect sense. “Major breweries and distributors have recognized that wine sales are increasing at a faster rate than beer sales,” explains Manning. “Wine is an incremental sale for the beer wholesaler, and when the beer season is soft the wine selling season is strong. With wine there is no internal battle to compete with their beer brands. Furthermore, if a beer wholesaler goes into an account and writes orders for beer, water and or energy drinks, why should they leave the account leaving money on the table for the wine wholesaler to pick up. Selling a wine brand allows them to sell a higher profit per case. 14

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– Dawn Manning, Owner of Chateau Diana

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Though beer’s status as a fine food is a fairly new idea, brewers like Leinenkugel introduce average consumers to the concept via classic, time-tested recipes like the following: Leinenkugel’s Oktoberfest-Infused Beer Brats 1 dozen brats 1 dozen brat buns Leinenkugel’s Oktoberfest, to cover 1 medium large sweet onion, sliced 1 green pepper, sliced 1 yellow pepper, sliced 1 red pepper, sliced 2 ounces butter Place brats in a Dutch oven with sliced onions, peppers and butter, cover the brats with Leinenkugel’s Oktoberfest. Bring to a boil and reduce to simmer until brats are cooked. Remove brats and set aside remaining beer mixture. Grill brats until golden brown and return to beer mixture until ready to serve. Serve brats on fresh brat buns with your favorite toppings (sauerkraut, onions, peppers, ketchup, mustard).

BRAND PROFILE

Clausthaler Premium Non-Alcoholic Beer NEW LOOK, SAME AWARD-WINNING TASTE

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lausthaler, the award-winning, premium non-alcoholic beer, debuts new packaging that sports a refined, new look. Lighter and cleaner in appearance, the modern packaging design reinforces the brand’s premium positioning and better reflects the brew’s crisp and refreshing taste. The re-design includes a new label, packaging and POS. Available in off-premise and on-premise accounts throughout the United States, Clausthaler is imported from Germany, and brewed in the authentic pilsner style. It is the leading non-alcoholic beer in Europe. “Clausthaler has been a U.S. market leader in the non-alcoholic brew category since its introduction here in 1982,” said David Deuser, VP of Sales, Binding Brauerei, USA, importer of Clausthaler. “The new packaging stands-out at retail and immediately communicates the brand’s premium position to longtime fans as well as new consumers. It is also an indication of our company’s commitment to the brand and category,” he continued. “Today’s consumers continue to be health conscious and educated about responsible drinking. Clausthaler’s new image is aligned with that contemporary lifestyle,” said Deuser. “We have an active designated driver program with Clausthaler, and sponsor events and festivals across the country to help reinforce the responsible drinking message.” Clausthaler appeals to sophisticated beer drinkers who want the refreshing taste of an

imported beer without the alcohol. Anytime, anywhere, consumers may enjoy the rich, full bodied flavor of a true German beer without the alcohol. Clausthaler has won numerous Gold Medals in the NA category at the World Beer Cup competition. Just this year, Clausthaler Classic and Clausthaler Golden Amber were awarded the top prize in the non-alcoholic beer category in the World Beverage Championships. This organization was founded in 1989 with the establishment of the Chefs in America Awards Foundation and its professional Board Members gather weekly to conduct taste tests on a myriad of foodservice and retail grocery products. The judging was conducted “triple blind” in Northern California by a panel of OnPremise Beverage Buyers. The Chef du Jury was famed Maître du Goût (Master of Taste) Jesse Sartain.

ose is produced. Clausthaler Premium is cold-fermented with perfectly normal beer yeast that has been individually cultured for the brand. The yeast can only produce a tiny amount of alcohol (similar to what may be found in a glass of orange juice) but it produces plenty of the full-bodied, flavorsome taste that characterizes a good brew. Clausthaler is available in ‘Classic’ and ‘Golden Amber’ and is imported by Binding

“ Clausthaler has all the attributes of a choice

German beer: pleasant taste, a bouquet of hops, a firm head and a full body.” – Jesse Sartai, Maître du Goût Sartain said, “Clausthaler has all the attributes of a choice German beer: pleasant taste, a bouquet of hops, a firm head and a full body.” Clausthaler is brewed under a patented process based on the German Purity Law of 1516, ensuring that little fermentable malt-

Brauerei, USA, based in Norwalk, CT, 203.229. 0106. The company imports a portfolio of high-quality beers from Germany and the Czech Republic, including Radeberger Pilsner, Krusovice, and Tucher, among others. I

TECHNOLOGY PROFILE

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twitter lingo g screen name name: e: The short derivation of a real name, thiss is how Tweeters Tweeters are identiidentied by the @ symbol. fied. It’ It’ss precede preceded

LW·V GLJ GLJLWDO G LWDO DJH Z ZRUG RUG RI PRXWK K by w w.. rr.. tish t

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nless you’ve been living under nder a rock in the stony soill of Châteauneuf-du-Pape, C hâteauneuf-du-Pape, chances chances are are yyou ou have have been been h hearing earing Twitter.com. But more and more often aboutt the website called T witter.com. . what is it, and can it actually ally be of use to you as a wine/spirits ne/spirits purveyor? The answer to the second part art of that question is most definitely YES, but figuring guring out how depends greatly atly on understanding the first part.

Key Twitter’s K ey tto oT witter’s eeffectiveness ffectiveness as as a business business tool tool iiss ssimply imply fifinding nding tthe he right right audience audience for for your tweets. In other words, if T Twitter witter reprerepresents a practically boundless universe verse of comcommunication, it only begins to make ke sense when you you access access tthe he sslice lice ooff that that universe universe that that is is of of value value to to yyour our bbusiness. usin ness. FFortunately, ortunately, tthe he bbreadth readth and depth of the wine and spirits-loving -loving comcommunity Twitter munity oon nT witter iiss ttruly rulyy eenormous normous ((makes makes sense—lots of people love to chat at about eateating ing aand nd ddrinking) rinkin ng) aand nd aaccessible. ccessible. If If you you think think of Twitter cyber-convention Twitter as one massive cyber -convention onvention of people people who who want want to to converse converse about about anything an nything at wine at aall, ll, tthe he w ine and and spirits spirits pprofessional’s rofessional’s mission mission is to join the sub-convention attended ended simulsimultaneously by not only the trade but b also conconsumers who sumers aand nd bbyy eevery very sort sort ooff pperson erson w ho might might have have a rrole ole oorr iinterest nterest iin n aany ny service, service, product product or or activity related to wine and spirits. s. That is the Twitter matters Twitter tthat hat m atters to to you. you. The Twitter naturally T he ddevil evil ooff T witter n aturally lies lies in in the the details, not the concept. According ing to NielsNielsen research 60% of T Twitter witter userss quit after a month The main month oorr lless. ess. T he m ain reason reason is is frustration. frustration. It It ttakes akes ttime ime ttoo gget et the the hang hang of of it. it. With With that that in mind, in m in nd, bbelow elow iiss ssome ome bbasic asic information information aand nd specific specific ttips ips oon n ““getting” getting” Twitter. Twitter.

In short, T Twitter witter is a communal mi mi-ccroblog; roblog; a ssite ite w where here aanyone nyone w who ho rregisters egisters ccan an ppresent resent aan n identity identity ((visual visual iimage, mage, oorr “avatar;” brieff bio; optional link back to a personal or company ompany website) and publish m messages essages ooff uup p tto o bbut ut n no o m more ore tthan han 1140 40 characters on n whatever he/she sees fit to Think ssay, ay, oorr ““tweet.” tweet.” T hink ooff iitt aass tthe he eenergy nergy ooff iinstant nstant m messaging essaging ccrossed rossed w with ith tthe he scale scale ooff text messaging ng and the free spirit of blog blog-ging. Twitter, Twitter, as it appears on a screen, is m minimalistic inimalistic bbyy m modern o dern w website ebsite sstandards: tandards: messages g are streamed, in real time, refre refre-sshable hable eevery very fifive ve sseconds, econds, w with ith n new ew tweets tweets appearing above ove older ones. The look fits pperfectly erfectly oon naP PDA DA (another (another reason reason Twitter Twitter h has as eexploded xploded iin n ppopularity). opularity). Aptly A ptly n named, amed, tthe he ooverall verall eeffect ffect ooff tthe he ssite ite ccan an rrange ange ffrom rom tthe he qquiet uiet cchirps hirps ooff a ffew ew melodious whole bbirds irds oorr tthe he m elodious ccacophony acophony ooff w hole flocks—depending nding on how many tweeters yyou ou ffollow ollow ((more more oon n ““following” following” bbelow). elow). Taken T aken as a whole, w the concept is undeniundeniWith aably bly ssimple imple yyet et aamazingly mazingly ccomplex. omplex. W ith aan n eestimated stimated 661,000 1,000 ttweets weets pposted osted eevery very hour, messages Twitter many h our, m essages flflyy aacross cross T witter ffrom rom m any ssources ources oon n ccountless ountless ssubjects. ubjects. 16

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ffollow: ollow: Perhaps ps Twitter’s Twitter’s most important aspect. When you’re you’re on your personal T Twitwit w ter home home page, page, yyou ou ssee ee tthe he rreal-time eal-time ttweets weets ooff ter those those yyou ou ““follow” follow” aand nd tthey hey ssee ee only only tthe he ttweets weets of of ppeople eople tthey hey ffollow, ollow, w which hich oonly nly iincludes ncludes yyou ou if they follow youu back; Quality of followers is more important than t quantity; Build your folfollowing by by ssearching earching ffor or oothers thers yyou ou might might llike ike lowing to follow in the Twitter Twitter search box – and by lowers of others. following the followers updates: M Messages essages that that individual individual uusers sers tweet, displayed in n reverse chronological order order.. SURӾOH Publi Public ic information about any tweeter, including tweeter, ng updates and following and follower counts. favorites: A list of the tweeter’ tweeter’ss favorite tweets made by others. o

message: Usually U called a direct mes mes-sage, or DM, you yoou can send one to anyone who follows you privately. privately. tinyurl.com:: These compress the full url of specific web pages pages into short versions that take up fewer characters. ch haracters. retweet: Findd a tweet of particular interinterest? R RT T it by pas pasting sting the text into an update of your own, prec preceded RT ceded by R T and the original tweeter’s tweeter’s screen name. @replies: R Replies eplies directly to someone else’ss tweet. else’

buildin building b ilding a twitter n network etwork Your Y our T Twitter witter netw network work is the people you follow and the people who w follow you. Following (or not) is always vo voluntary oluntary and reversible. This is the bread and butter of your T Twitter witter expe expe-rience, and the site most certainly will not work for you un unless nless you embrace the spirit of engaging this network as much socially as commercially. commercially i ll . The value off building a network rests not only in reachingg your followers, but also in your followers reaching r theirs. Remember

Twitter himself. While he h has not found T witter to be tweet about? For wine shops, tw weetable toptoptweetable that word of mouth m is the most powerful form Suburban’ss 6,000+ fol fol-measureable yet,, and Suburban’ sonal recom ics can include new arrivals, seas seasonal recom-of marketing anywhere. a People rely on people lowers are still not n as numerous as his store’s store’s mendations, special events, re relevant levant wine they trust whe en it comes to trying new things when email list, he is “amazed” at the amount of articles online, critics acclaim, wine-world and going new w places. T witter is Digital Age Twitter dialogue he has engaged in and feedback he anecdotes, food food suggestions, trend tren nd watching, word of mouth h. Retweeting is a crucial part mouth. has received via tweets. entertaining tips and so on. Butt the answer of what makess Twitter Twitter so powerful. For busi busi-Bars and restaurants resttaurants can tweet on topics really depends on your business. Ann Farrell, ness purposes, when you provide and update similar to wine and a spirits shops (new stuff, who does the tweeting (as @TheWinePeo@Th heWinePeowhat your fol llowers see fit to retweet, you followers special promotions, ti spec cial i l offers) ff ) andd the th social i l nanaHaskell’s Minnesota’s ple) l ) for f Haskell’ H k ll’s 10 locations l ti in Minnesota’ in Mi t ’s can gain i follo ffollowers llowers organically i ll . Retweeting R t ti organically. establishments ture of those esta ablishments can lead them to Twin greatest T win Cities, says that their great test bump in can make T witter work with blazing speed witter Twitter the dip easily into th he very sort of things people when promot-followers and business came wh hen promot (news of a recent reccent minor earthquake in the talk about when n going out to bars (sports, ing their annual “nickel sale” via viia Twitter Twitter in Bay Area reac reached ched San Francisco even before local celebrities, loca al happenings, holidays…). store’ss more April. She adds that some of thee store’ tremors were felt f there) and reach. And be be-Cinco de Mayo was a hot topic in the first passionate followers now tweet about what cause retweetss can contain links, the infor infor-May,, fo for week of May or instance. Dozens of New Haskell’s; some they just bought at Haskell’ s; som me even post mation transm transmitted mitted can be both very precise York establishments Y ork City establ lishments have tapped into photos of their shopping carts as a “twitpics.” and extensive extensive.. This ability to insert a direct Twitter-friendly the T witter-friendly ndly website coovents.com, At Suburban Wines Wines in Westchester Westcheester County, County, link is perhap ps the most powerful aspect of perhaps happy which tweets ha appy hour specials daily as @ NY,, owner Lance Cerutti does the NY t tweeting Twitter; T witter; the 140-character 1 tweet can func func-coovents Brian Simpson, coovents. Simpson of the Roger Smith S teaser, tion as a teaser r, a headline, headline a sneak peek. peek Hotel, tweeting tel, tw eeting as @rogersmithhotel, The trick to building an effective ef has dev developed Twitter veloped T witter relationships Twitter T witter netwo network ork for business is not with hundreds h of travelers in gengenjoin to oversell. In n short, people jo eral, sharing tips and thoughts Twitter exchange and T witter to ex xchange ideas an cities on ci ities other than Manhattan information—including things information— —including thing wheree the hotel is based. He has However, that can be bought. However Twitter also used u Twitter to recruit volvoltweeters no more wish to bbe unteers untee ers to test out new dishes at sold to than they want to bbe he occasionally the restaurant; r dincold-called at home during din Twitter pposts special p T witter rates when ner.. If yyou ke keep ner eepp yyour followers’ followers Twitter may be practically instantaneous, but the fruits the hotel h has vacancies; and his interests common inter rests in mind when of your tweeting may take weeks to be apparent. personal perso nal interest in social media retweeting @replytweeting, retw weeting and @reply

developing a twitter strategy

firm ing, you will fir rm up your identity identit that the as a business th hat cares about th spirits wine and spiri ts experience. That sort of authenticity iis successfully any crucial to succ cessfully using an networking. not social network king. If you do no engage want to engag ge in conversations conversation overall are about the over rall business you ar Twitter may in, T witter ma ay not be for you. IIf tweets you do, you will w find that tweet in ways can echo in cyberspace c way addiyou had neverr imagined. In addi tion, you will gradually find folfol are wine lowers that ar re not always win spirits-centric, and spirits-ce entric, but rather rathe sorts enpeople of all so orts who simply en and joy drinking an nd eating.

tweetable able you y Assuming you want to give T Twitwit ter a shot to help h your business business, what sort of things should yo you

be consistent. Tweet daily, at different times during the day. This increases your exposure to followers and will help you literally get a hang of it. be balanced. Tweeting about things you do/sell/offer is fine, so long as you aren’t overdoing it. Mix in RTs of interesting other tweets; seasonal/topical observations; @replies to questions/comments of followers.

observe. Watch how others tweet, and see what gets RTed and/or @replied to. Grow your network gradually. Commit to spending time each day or at least each week to finding new followers. Doing it massively (i.e., following 1,000 before you even have 100 followers) will appear suspect. And think of expanding your network not just by searching with wine and spirits in mind, but also exploring regional Twitter people and topics—local followers are simply more likely to walk in your door.

be someone. Yes, you are a business but the most successful businesses on Twitter project a personality, not merely products and services. One vital caveat: if you are tweeting as a business rather than as an individual it is probably a good idea to have one person do the tweeting in order to develop a consistent tone.

has helped h make the hotel a hub for Internet-driven In nternet-driven meetings. To To go through more examples of how w various on and off-premise businesses nesses tweet would be to risk straying ng from the central point that if i you do decide to join the Twitter devel-Twitter ter scene, the key is to devel op an n identity, identity, tone and range of tweets ts that fits your particular esestablishment. tablishment. By By aall ll means, means, Twitter Twitter requires res practice and consistency to yield eld results. But also remember that 140 characters can be very potent. wit never potent. To To w it (or (or to to twit), twit), n ever mind the previous, words just fo fo-cus on n these 139 characters in this article: e: “Twitter “T Twitter = pure communicommunication. cation. What What do do you you already already do, do, & how ow can you let people know you you do do it it well? well? Worth Worth ggiving iving a whirl;; just be patient.”

GOOD BEER. GOOD KARMA. TIBET’S PREMIERE BEER MAKES ITS WAY TO THE US AND UNITES ASIAN MYSTIQUE, THE EUROPEAN LAGER TRADITION, AMERICAN BREWING EXPERIENCE, AND PHILANTHROPIC ACTION IN A SINGLE BOTTLE.

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any groundbreaking craft beers and importers have enlightened the beer category by giving consumers and trade buyers an ever-expanding portfolio of choices: country of origin, brewing styles, recipes, and flavors. However, Dzambuling Imports—U.S. purveyors of Tibet’s Lhasa Beer--is taking that approach to new heights.

Beer industry veteran George Witz, president of -Northern CA-based Dzambuling Imports, has both watched and participated in this trend for many years. His past management experience includes sales and marketing campaigns for a large variety of brands and beer producers. Some of the launches he was deeply involved with include: Amstel, Budweiser Light, and Pilsner Urquell, and he worked with van Munching and Company in Heineken’s early days of development in the US. Naturally, Witz is keenly aware that a product with a unique background and attributes can not only bring an added dimension of pleasure to one’s beer-drinking experience, but also dramatically accelerate a brand’s potential for success in a very competitive landscape. With this in mind, the company set into motion a plan to introduce a beer to the U.S. market that could appeal to far more than just the senses. Recognizing this was a pivotal moment in his career, Witz is ready to take on the challenge of introducing an unknown new product with great potential into a highly competitive marketplace. Lhasa Beer has much going for it, including an interesting provenance in that it comes from Tibet, the highest inhabited land area in the world. Lhasa is also a super-premium lager and a purist’s beer, made exclusively from Himalayan spring water, barley, hops and yeast. However, there is an added dimension to

the product that no other brand in the marketplace has: Lhasa Beer is contributing a portion of its profits to help support the well-being of people who are less fortunate than the consumers who will enjoy it. Witz notes that 10% of net profits from U.S. beer sales of Lhasa will be poured back into Tibet in the form of philanthropy, which will both help the Tibetan people preserve their rich cultural heritage and also help them with responsible and positive economic and social development. The purchase of this beer, which incor-

porates the use of Tibetan barley in the formulation, helps provide added income to the Tibetan farmers who are generally very poor and often still use yaks to pull their plows. From the Tibet Lhasa Brewery Company, the highest commercial brewery in the world, to U.S. bars, restaurants and dining room tables, our aim is to bring the beer aficionado, savvy restaurant buyers and retailers a tasty lager that they can not only enjoy, but also feel really good about purchasing because it benefits people who are less fortunate. Adding to Lhasa’s cache is that it is an entirely new beer specially formulated for the U.S. market by award-winning master brewer Alan Kornhauser. This incarnation of Lhasa Beer is produced with 30 percent of the malt content coming from the huskless native Tibetan barley—a world’s first in the commercial brewing industry. The result is an easy drinking beer with medium hop bitterness, nicely balanced by the full bodied, but not heavy all-malt flavor. Its flavor is highlighted by the renowned floral bouquet of Saaz hops, regarded as the most elegant and refined of all aroma hops.

COVER FEATURE continued HE’S GOT THE WHOLE WORLD IN HIS HANDS… In the beginning, after several months of research and networking, the company tapped Kornhauser and gave him a clean slate to create a Lhasa export recipe that would resonate with discerning American beer connoisseurs and foodies. The company felt that his track record of 35 years of brewing experience and the credibility of being a repeat and multiple gold medal winner at the Great American Beer Festival in Colorado made him the ideal person to set the standard. “The company was looking for somebody to go to Tibet to help them formulate a beer that incorporated the use of Tibetan barley,” recalls Kornhauser. “The brewery I was working for at the time was in the process of being purchased, so I was in a good place to get involved with this ambitious project. Since I had experience brewing in all facets of the industry, including brewing for Pabst in China, I was also familiar with working at Asian breweries.” “Alan’s role in developing Lhasa for export is pivotal, especially since he’s always been on the vanguard of craft brewing,” says Witz. “He is well respected in the industry, with a rich and diverse brewing background ranging from large scale production to award winning beers for fine craft breweries. He has built a great reputation for his innovative work in brewing and acquired a wealth of experience through his contributions to a variety of brewing companies and organizations that we knew would be valuable when developing Lhasa.” Kornhauser, meanwhile, expresses that as a brewer, developing and refining Lhasa’s recipe been a fun project and he is very pleased with the way the beer turned out. “Prior to our going to Tibet, we knew that Carlsberg, the international brewing conglomerate, had taken a large equity stake in the Lhasa brewery. They had invested in a major upgrade of the production processes and equipment, so we knew that it was going to be an excellent facility,” Kornhauser explains. “This made things a lot easier in terms of developing a beer that could be considered uniquely Tibetan in character but still be a European style lager 20

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Brew kettles. with a favor profile American drinkers could identify with. For the American market, you need a beer that not only can be enjoyed on its own with friends or while watching a game, but that would also pair well with a variety of foods. Our goal was to create something flavorful but not so over the top that it would not compete with the flavor of the food itself.”

ON TOP OF THE WORLD… LOOKING DOWN ON (A BEER) CREATION As consumers, retailers and restaurateurs become better travelled and more cosmopolitan, they are exposed to both an increasing number of imported beers as well as craft brands. Furthermore, all industry growth in the past five years has either been in the craft or import sub-categories. As a veteran player in the beer game for mass brands, imports and craft beers, Witz knows that personally and professionally Lhasa is in a unique position to capture a solid share of intersecting markets. Today, craft beers are about a third the volume of imports. They are generally regional, produced in smaller volumes, and

are almost universally ales, as opposed to the more difficult-to-make lagers, preferred by 90% of American beer drinkers. Imports, meanwhile, represent the best of both worlds as they offer the style of beer most consumers want with more sophistication and refinement than mainstream beers. “One thing that makes Lhasa different from others is that it was designed expressly for the more sophisticated American consumer with a palate for a more refined lager,” said Witz. “Lhasa is a true original because it is a European style lager that is made in Asia.. Statistics tell us that not only do American consumers favor European-style beers over Asian ones by far, Asians also hold the same view. Lhasa is really a “fusion beer” which marries the best of both worlds by combining subtle qualities of its style, ingredients and place of origin, as well as a higher purpose.” Like some of the best wines from around the world, Lhasa boasts a blend of ingredients formulated in such a way that the best characteristics of each component come out in the final product. Seventy percent of Lhasa’s malt content is traditional hulled barley originating from Australia, as hulls

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Tibetan worker at the brewery.

Bottling line inspection.

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that are critical to the brewing process as the filtering mechanism (see “We Barley Knew You”). The waxy hull-less barley, native to Tibet, makes up the remaining 30% of the malt blend. The water, meanwhile, is sourced in the Himalayan mountains from at least 12,000 feet in elevation. This is key, as Tibet is still an agrarian society, almost entirely unindustrialized, and therefore, has not experienced ground water contamination found in industrialized countries. It was also important to Kornhauser that the brewing process took into consideration the requirements of German Beer Production Purity Standards (“Rheinheitsgebot”), which permit only four ingredients in beer: water, barley, yeast and hops. The use of additives, preservatives, or adjunct grains such as rice or corn are not permitted. “We were attracted to the unique natural elements offered to us in this part of Tibet that other beer production areas closer to sea level could not offer us,” explains Kornhauser. “Consumers are looking for that difference, no matter how subtle. Just as there is a difference in taste among bottled waters between brands that simply purify water from the tap vs. water bottled at a geyser or another natural source, what water is used in the production of a beer can have a profound influence on taste and overall quality of that beer.” “We are the only company that has commercially brewed with this hull-less barley,” emphasizes Witz. “It is important to note that most Asian beers are considered ‘adjunct beers’ because of other fermentable ingredients used such as corn or rice in their recipes to derive what is needed to create a finished product.” Though Witz admits that he literally had to go to the ends of the Earth and get a little help from his friends, including the master brewer, he confidently affirms risking it all to develop Lhasa was worth it, especially given that the presence of craft beers and imports have changed the way people drink and market beer.

WHERE IN THE WORLD IS LHASA? Thanks to Lhasa’s built-in versatility, Witz expreses he has every confidence that this breakthrough beer will fit in at restaurants 22

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Tibetan hulless barley. Photo credit: Jeff Roe

WE BARLEY KNEW YOU! The barely that sets Lhasa Beer apart from other craft and imports is an indigenous Tibet tworow husk-less barley. When integrated into the overall recipe for Lhasa, it imparts a flavor and body that results in a different beer than brews made entirely from six-row barley strains used in commercial beer production, according to Kornhauser. “Tibet is far the world’s largest per capita producer and consumer of barley,” he points out. “It also has by far the greatest genetic variety of barleys. In Tibet alone, there are more than 3,000 distinct land races of barley, with well over 90% of them being of the husk-less variety. In a single farmer’s field there can be several hundred different strains of hull-less barley growing side-by-side.” This bio-diversity has historically proved to be of great importance and benefit in Tibet, as in any given year if one strain of barley would not do well because of weather, insects, or disease, the other resistant strains could compensate and a strong food was always guaranteed. Though the potential for a great beer lies in the heart of the barley singled out by Kornhauser, the recipe needs to be balanced with a hulled variety to ensure he will get a beer rather than a thick, opaque soup. To bring about that ideal result, as well as benefit the community in Tibet that cultivated this unique barley, Kornhauser needed to create just the right proportions of hull-less and hulled barley to ensure the final beer product has both dimension of astringency as well as a very smooth and clean flavor profile that makes it a great match for food. “The type of barley found in Tibet barley gives body and flavor to the beer which contributes to the crisp, clean taste but it diminishes the astringent flavors which can come from the husk,” says Kornhauser. “Lhasa ends up being a beer with a clean palate-cleansing quality that makes it go exceptionally well with a large variety of dishes. It won’t fill you up or numb your palate from being excessively bitter, sweet, or heavy.” Adds Witz, “Sometimes less is more. For daily dining, we found during development that more than 90% of craft beer consumers prefer a brew with the whispered sophistication of a fine lager over the louder shouts of stouts, or bitter bite of the IPAs. Though drama queen beers with highly specific flavor or body have their place, the subtle-but-distinctive sophistication of Lhasa is a great beer literally formulated with the right balance of barley to please many palates.”

and bars of every description, especially at accounts where cooking with beer and food/beer pairing trends are currently in vogue. He also projects that off-premise accounts that have supported popular food/spirits trends to move product are also rich with potential. Beyond that, he sees that Lhasa has an opportunity with both kinds of accounts to establish its brand identity beyond current niches into a singular product and experience onto itself, just as Belgium beer Stella Artois and other European brands have done. “We see ourselves, based on how and where we are made, as sort of a European/Pan-Asian-Fusion beer,” he says playfully. “We are not tied to any one specific culinary identity. In the Asian realm, we’re like the chef at P.F. Chang who can pull together a banquet with Chow Mein, Pad Thai, sushi, Filipino lumpia (spring rolls) and Korean barbeque, and have it all mix harmoniously. Not only that but because of Lhasa’s clean flavor and balanced structure it works with pretty much as well with any kind of cuisine, Asian or otherwise. The food and beer pairing movement is so pervasive, and we’ve got such a lovely beer on our hands that I am confident that people will gradually discover how well this beer will harmonize with a variety of different spices, sauces and flavor combinations.” From Witz’s observations, the success of Asian beers in America prior to Lhasa’s debut has had a lot to do with the fact that most of the beers’ fan bases did not necessarily come from their place and culture of origin, but among people from all backgrounds savvy about world cuisine and always on the lookout for new taste experiences. “Go into any Thai, Japanese, or Chinese restaurant and see if most people you see there are in fact Thai, Japanese, or Chinese,” challenges Witz. “What you will find are restaurants filled with a diverse cross section of the American public.” In the earlier years of his work for different beer companies, Witz got feedback from American consumers who mentioned that if they were eating Greek food, for example, they should have a Greek beer. If they went 24

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out for Thai food, then a Thai beer would be a natural and often the only possible choice. Simply put, Heineken is not found only in Dutch restaurants. The same thing goes for the Belgian and Czech craft beers whose sales have been on fire lately. As today’s owners and consumers are more familiar with a wider variety of foods, flavors and textures, there is a lot more fusion going on with recipes and food preparation. Simultaneously, Witz observed beer choices in the marketplace expanded much more dramatically. “Our goal in developing the flavor profile of Lhasa was to not be just a Pan-Asian beer – but also a European style lager that becomes a breakout brand because it goes well with a variety of cuisines.

Getting to the top of the sales heap in one’s genre is possible, as long as the team carrying the brand message forward is well-prepared and well-equipped for the task. Of course a little word-of-mouth doesn’t hurt, either. “People drawn to craft beers and imports are also some of the most socially conscious and well-educated consumers out there. We

“Our goal in developing the flavor profile of Lhasa was to not be just a Pan-Asian beer – but also a European style lager that becomes a breakout brand because it goes well with a variety of cuisines.”

SCALING THE HIMALAYAS To climb the hard road to success it is necessary for a brand to be well equipped with a clear identity. Fortunately that is not a problem for Lhasa as its social mission is fully integrated into its business model. Furthermore, the company has an ongoing contract for the purchase of carbon credits to render the product the energy equivalent of a domestically produced beer, so it is naturally positioned as a socially responsible product. As the company sees it, even if launching a new product can be considered a risk in today’s world, the strength of the brand’s identity will carry it a long way towards success. 8

– George Witz, President - COO, Dzambuling Imports are presenting them with a product which shares their same values,” says Witz. “Our biggest challenge is getting our on- and offpremise clients educated on thinking outside the proverbial bottle in terms of reaching out to these consumers based not only upon the product’s quality and image but also its intention and the real effect generated from its purchase.” “Our target market is made up of people who appreciate quality and flavor, but also pay attention to the effect their purchase can make in the world,” adds Kornhauser. “Unlike consumers whose brand selection is based simply on the value element (low cost, mass-produced beers), the market we’re going after is more driven by values and is interested in exploration and experimentation with products from around the world.

Malt whisky’s shining light. THE 50. The Dalmore has the oldest maturing stocks of any Single Highland Malt whisky and, with spirit dating back to 1868, it’s no wonder that our fifty year old has excited connoisseurs, gourmets and collectors across the world. ‘A rare experience for the lucky few who can afford it.’ John Hansell Gold (Best In Class), International Wine & Spirit Competition 2009. Best Overall Bottle Design, International Review of Spirits, 2008.

1974. After 30 years of slumbering maturation, The Dalmore 1974 was transferred to a single, immense Matusalem butt from Gonzalez Byass. Limited to only 948 beautifully presented bottles.

THE 40. Filled to cask on 13th February 1965 and sampled annually to confirm its progress, some four decades had to pass before our Master Distiller would release this peerless malt.

Rated 97, Beverage Testing Institute 2009. Gold Medal, San Francisco World Spirits Competition 2009.

Rated 98, Beverage Testing Institute 2009. Double Gold Medal, San Francisco World Spirits Competition 2009.

THEDALMORE.COM © 2009 The Dalmore and The Stag Device are registered trademarks of Whyte and Mackay Limited. The Dalmore Single Malt Scotch Whisky 40 year old 40% alc/vol (80 proof), The Dalmore 1974 42% abv (84 proof), The Dalmore 50 year old 52.8% alc/vol (105.6 proof). www.thedalmore.com. Imported by Shaw-Ross International Importers, Miramar, Fl – www.shaw-ross.com. Drink Responsibly.

COVER FEATURE continued cation at on-premise clients. The company is also building a team that’s hitting the street for educating and product sampling among consumers, as well as finding audiences through a variety of events that involve food and lifestyle trends. “We’re looking to be more targeted than brands that may be fishing everywhere for fans” Witz details. “We’re the beer sponsor for the upscale Concourse D’Elegance in Seattle which benefits uncompensated children’s care at Seattle Children’s Hospital and Evergreen Healthcare Medical Center. We

The notion of helping others help themselves is appealing.” Witz points out that the initial Lhasa test marketing in the Pacific Northwest and Gulf states, Texas and Louisiana, have demonstrated that the brand has great potential as it has appealed to many different kinds of consumers. “It is important to keep in mind, even only as far back as I have been in the beer business, the profile of what people drank a generation ago has changed a great deal from what people buy and enjoy today”. The Lhasa team also notes that because

and guitars with beer branding on them, that we’ve got the added motivation to put our name on fresh, new ideas that are about something bigger than ourselves. Success is really about showing up, getting out on the street and into the sale points. We have to demonstrate our commitment to building the Lhasa brand in order to carry it over the top.” Lhasa Beer will gradually become available nationwide as the rollout progresses over the next year. It comes in a 12- ounce bottle in 6-packs, and 24-bottle cases, with a bright, colorful label. Thanks to its stylish and aes-

Slow Roasted Pork

Lhasa Beer pairing suggestions: Kobe Beef Burger

Seared Scallops

Grilled Shrimp Pasta Stirfry with Citrus and Asparagus have also signed on as a beer sponsor for a number of charity golf tournaments. Though the local charities behind these events are the focus, exposure like this offers us the opportunity to connect with other philanthropically inclined and trend-setting people who will get word of mouth going. In our promotions, we’re going to become that break-out beer by being proactive and helping others which will in turn help us.” “We’re not breaking down target markets by gender, age or ethnicity,” Witz concludes. “Instead, we are looking for people from all walks of life who appreciate a fine beer but also share the value of compassion for others and an understanding that everything in the world is interdependent. We’ve seen so many surfboards

large chain retailers have generally been supportive of product fundraisers to raise money for say: typhoon victims in Thailand or groups like Susan B. Komen (Breast Cancer Awareness), there is a lot of potential for success by collaborating with causes especially as Lhasa has its own commitment to a cause integrated with its business model. Witz adds that the demographics of California, are perfectly suited for a cause oriented product like Lhasa, especially in upscale areas where social responisibilty is an important consideration in product choices and where lifestyle trends are often first established. To bring potential success to fruition, Witz pointed out that Lhasa’s marketing plan for the coming year is a real hands-on proposition, involving wait-staff training and edu26

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thetically pleasing packaging, demand is also created for Lhasa logo items and pointof-sale materials, including apparel, in-store displays, bar signs, neons, back bar displays, sandwich and menu boards. Suggested retail price is $8.99 per 6pack. For more information on Lhasa Beer go to www.lhasabeerusa.com or call 1-877-GO-TIBET. n

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Last spring, frat boy actor Seann William Scott led a band of 52 competitors on an adventure race across Scotland. The event, sponsored by the Scottish liqueur, Drambuie, followed Bonnie Prince Charlie’s (also known as the creator of the sweet spirit’s recipe) flight from the British crown over 260 years ago. The thrill seekers raced Zapcat powerboats, mountain bikes and off-road buggies. “It was the perfect lads’ weekend,” says the company’s CEO, Phil Parnell. And, since it reintroduced the historic brand to young people around the world, it was also a marketer’s dream. Except that when the winning team posed with Drambuie’s traditional squat brown bottle there was a problem: the spirit looked like it was meant for an older demographic. “We needed to change the packaging,” says Parnell. “We had no choice but to be radical.” 28

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Recently the brand introduced a taller, rounder bottle with high, scalloped shoulders and a new logo of interlocking D’s. The red cap has been replaced by a fancier black closure and wrapper. And instead of dark glass, the bottle is clear so you can actually see the amber colored spirit. The back label now features cocktail suggestions to encourage people to drink Drambuie with more than just whisky or ice. “Trying to make ourselves relevant was important,” says Parnell. But “it’s not a two-minute fix. We’re not going to keep changing it.” Nobody would blame you for not recognizing some of your old favorite bottles. From Baileys to Mount Gay Rum to Tres Generaciones Tequila to Svedka Vodka, over the last few years quite a few big names have given their packaging a makeover. Some of the changes are subtle, like the addition of a beveled edge, an extended neck or an updated logo. Others are more striking, creating an ambitious new look from scratch. A design can take months and even years as a company weighs the many options to find the perfect bottle shape, label and box. While brands have always tried to stimulate sales with redesigns, an eyecatching bottle is now more important than ever as an unprecedented selection of spirits fight for the attention of drinkers. Not to mention that classics now have to compete with stylish upstarts like Domaine de Canton, Maestro Dobel Diamond Tequila, (rĦ)1, St-Germain, TY KU and Crystal Head, which have untraditional and impressive packaging. But updating a brand comes with some serious risks. Any time “a product has become less effective the first thing people say is ‘what should we change? How can we make it look trendier?’” says the preeminent graphic designer, Milton Glaser, who has decades of experience and created the I Love New York logo, Brooklyn Brewery’s packaging and the Trump Vodka bottle. For Glaser, the decision to redesign comes down to intuition. But he warns “you have to worry about losing the audience you have before you can acquire a new audience.” Alienating loyal customers is a surefire way for a brand to lose its credibility and when shoppers are so used to the old packaging that they can’t even find the new bottle on the shelves, then a spirit company is in serious trouble. The other potential problem with a redesign is that consumers often associate a change in packaging with a change in content. And “if you promise a change and it doesn’t occur, then where are you? And if you make a change and it’s not the one the public wants you suffer for it,” says Glaser. “All of these can be the life or death of a company.” To avoid making this tough decision, up until recently, many brands were content to use an off-the-shelf bottle that they wouldn’t change for years. But with the rise of pricey vodka and premium spirits in general, packaging design has become hugely important. Already, many expensive whiskies, Cognacs and Champagnes come in custom-ordered crystal decanters and presentation boxes. Now companies, both big and small, are revamping their whole product lines.

O Upscale Presentation This past spring Mount Gay began repacking its line of rum in new more upscale bottles. (The changeover is expected to be finished by the end of next year.) The brand’s Extra Old Rum was the first to be given a facelift. Since 1992 the company had used a plain, tall, round bottle, which featured a large off-white label. The Extra Old Rum is now packed in an impressive oval bottle that has a cork and a smaller black label. Yet Mount Gay insists it is about more than

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just packaging. “This introduction is not about a bottle redesign, it’s about re-inventing the brand as a whole,” brand director Eric Maldonado said in a statement at the time of the launch of the new bottle. “At the end of the day, the bottle and packaging cues speak to the long heritage of the brand and the premium quality of the liquid inside.” The Dalmore Scotch Whisky has also taken a step away from its traditional look towards a more contemporary design while still embracing its history. The newly designed bottle has placed an added importance on its iconic royal stag, gifted by King Alexander III in 1263. “We have sought to de-clutter our designs and make a powerful visual statement using the stag,” points out David Robertson, head of brand for The Dalmore. “The branding is also embossed and foiled, adding a more premium touch to our look and feel.” Even value spirits are getting new packaging. Martini & Rossi, which has just introduced a sparkling rosé to its portfolio, also has a new, elegant look. The cuvée bottle now features a newly lengthened neck and redesigned silver label, giving it a timeless look. In the fall of 2007, Martini & Rossi also debuted a premium bottle for its vermouths, as well as crown cap closure for their Prosecco. Svedka, the modestly priced Swedish vodka, unveiled a new statuesque bottle just over a year ago, which replaced a broader, plainer bottle that had been used since its inception. “The Svedka packaging hadn’t had a facelift in 10 years, and the time was right based on the brand’s dramatic growth trajectory both on- and off-premise,” says Marina Hahn, chief marketing officer, Spirits Marque One (Constellation Brands), which owns and imports the brand. Not a small consideration. “Vodka is the most cutthroat category in the store,” says Michael Binstein, owner of the Chicago area Binny’s Beverage Depot chain. “You can’t afford to have lackluster packaging.” Svedka’s new bottle also supports the brand’s overall strategy of positioning itself as a premium spirit at an affordable price, which has definitely driven sales. “Svedka is breaking into the big leagues,” says Binstein. “It’s turning into a Goliath.” Svedka isn’t the only vodka guising itself up to attract shoppers. Stolichnaya introduced a new taller and thinner bottle this past winter. And Karlsson’s Gold Vodka, which has been around for just two years, has also already made a packaging switch. When the brand launched it used a medicine-like bottle. After Karlsson’s ramped up production last year they had Hans Brindfors, (he created Absolut’s famous bottle) come up with a new look. Karlsson’s bottle is now round, tapered on the top and bottom, and mirrors the shape of the vodka’s key ingredient potatoes.

O Vintage Style Some of the redesigns are so fitting it’s hard to remember that they’re new. Highland Park now comes in a hefty flask-like glass bottle with an embossed logo and a wide-neck with a cork stopper. The old-timey packaging looks like it dates back to the founding of the distillery in 1798. But it’s actually a lot younger. The company created the bottle just a few years ago and it began appearing on store shelves in the fall of 2006. It replaced a dull conventional bottle that the brand had been using for about five years. “We lost our way in our packaging,” admits Jason Craig, the global controller for Highland Park. While the old bottle got low marks the single malt was winning big awards around the world. “The clothing was wrong for the spirit within,” says Craig. He wanted the new packaging to look authentic and be evocative of the whisky’s long history but not look too new or shiny. The design is based on a miniature bottle that dates back to 1905, which Craig found in the back of a cupboard at the distillery. And the font for the label’s logo was taken from the distillery’s 140-year-old front gate. Not only is the new

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Formerly AV Brands, Inc., we are proud to introduce our new name. . .

ARGENTINA

ITALY

MEXICO

SOUTH AFRICA

Quara Septima

Belmondo Ca’Montini Luna di Luna Piccini Santini Umberto Fiore Valiano Voga

Don Roberto Tequila La Arenita Tequila

Amarula Cream Durbanville Hills Obikwa Two Oceans

CHILE

Caliterra Carmen FRANCE

Léon Beyer GERMANY

SPAIN

Legaris Scala Dei The Spanish Quarter Terras Gauda Viña Pomal Zaco

UNITED STATES

Artesa Ridgeline

Imported and distributed by Aveníu Brands.

Devil’s Rock

Reflecting our heritage as a Codorníu company, our commitment to our trade and distributor partners, and our mission to market wines and spirits that truly reflect their origins, AV Brands is pleased to announce our new name: Aveníu Brands.

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packaging more aesthetically pleasing but it has also helped to boost sales. “The proof is in the pudding,” points out Craig. From 2006 through 2008, the brand almost doubled its global sales and tripled its profits. One reason it has been successful is that single malt drinkers tend to do their homework and actually read the labels and the info on the boxes. “It’s a small niche market,” says Michael Hyatt, president of Baltimore’s Wells Discount Liquors, which has been open since 1937. And “by and large they keep up with it.” Flask-like bottles are popular for other whiskies, too. For about 12 years, the lowland distillery, Auchentoshan, used a simple clear wine-like bottle. The company introduced a new slender oval bottle at the end of last year. “It definitely needed a change,” says Robin Coupar, senior brand manager of single malts at Skyy Spirits, which imports the whisky. The classy bottle speaks to the distillery’s long history of producing whisky and is embossed with three pot stills, since Auchentoshan is the only Scottish single malt to have a third distillation. While the brand’s new bottle looks traditional it is also meant to have a contemporary feel. “We wanted to make it relevant to a younger emerging malt consumer,” adds Coupar. For the label the company chose a modern clean font and a set of “strong contemporary colors,” including burgundy, gray and blue.

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Even Johnnie Walker is trying to modernize – a little. The updates have been “more evolutionary than revolutionary,” admits Bill Topf, vice president of marketing at Diageo. “We don’t want to make any big changes.” In 2004 the ubiquitous Black Label bottle was tweaked slightly. If you look closely you’ll notice one of the changes, the so called ‘Striding Man,’ now faces right instead of left. Then three years later the box was given a makeover. “Our carton didn’t have the shelf standout,” Topf points out. That same year the company also introduced a new bottle for its Gold Label, which was originally introduced in 1995. “We wanted to make it more contemporary,” adds Topf, so the bottle is now made of clear glass instead of brown glass, which shows off the color of the whisky. It also has a slightly more “masculine” feel with stronger shoulders. And to meet an increasing demand for the whisky, after the redesign the company introduced 1 L and even larger 1.75 L bottles of Gold Label, which joined the 200 ml and 750 ml bottles it already offered. One thing that hasn’t changed is the blend’s signature square bottle. It was originally chosen over 100 years ago not because of how it looked but because it was easier to pack in a crate and wouldn’t move around as much in transit. And the famous angled label was used because that way you could fit more text without making the font tiny. “They were being efficient,” says Topf. And “it turned out to be iconic.” Two other spirits icons, Beefeater and Plymouth Gin, have also both modernized their bottles. In June 2006, Plymouth traded in its old round bottle adorned with a large image of the Mayflower for a sleek square Art Deco bottle with a smaller label that emphasizes the brand’s name. Don’t worry pilgrims, the famous vessel is still featured on the face of the bottle. The design was inspired by a bottle that the brand used for the Australian market in the 1930s. “The idea was to make a connection with Plymouth Gin’s success in that period when cocktail culture was at its peak,” explains Simon Ford, Pernod Ricard’s director of on-premise portfolio specialists. Pernod’s other famous gin, Beefeater, released an updated bottle in February 2007. Not only did they keep the square bottle shape but it’s now even more of a square than its predecessor. The label was also streamlined and the famous Yeoman was 32

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given a makeover. He’s a little more fit and his silver beard is now a more youthful brown. Aaron Bernstein, co-owner of Washington, DC’s Calvert Woodley, likes the new Beefeater bottle. “It sets it off from surrounding bottles,” he says. “When it’s different everybody looks at it.” When Hpnotiq first launched in 2002, the bottle was known for its striking blue color. Now under the domain of Heaven Hill Distilleries, Hpnotiq has undergone a subtle makeover. The bottle shape and color remain the same yet to make it more user-friendly, the natural, exotic fruit juices in the recipe are played up on the front, where a silver swirl takes the place of cluttered letters, while the back tells customers how to best use the liqueur. Tapping into the new look, Hpnotiq also has a creative ad campaign that matches; the tag line for their trade is “We’re not ashamed to admit it. We’ve had a little work done.” But some of the changes in package design aren’t intended for consumers at all. “Before you even cross the bar, some bottles are more friendly to bartenders,” notes Chad Solomon, a drinks consultant and co-founder of cocktail catering company Cuff & Buttons. A number of companies, including Drambuie and Stolichnaya, have introduced new bottles that are easier for bartenders to grab and pour. “A consumer is never going to see that,” Solomon points out. The consumer will see many of the other changes. For a number of brands, new packaging is part of a larger campaign to move out of a bar’s well and into the view of drinkers. And it’s no accident that some of these new untraditional bottles won’t fit in the speed rail below the bar. “A lot of these bottles are designed to sit on the back bar and get guests’ attention,” says Solomon. They also feature labels and distinctive bottle shapes that are recognizable from six feet away. A redesigned bottle also often means that store owners will have to do some rearranging. If a brand makes their bottle taller or wider it may no longer fit on its old shelf. When that happens Bernstein says the bottle is often moved to the roomier and more desirable top shelf. “I have to believe they knew that was going to happen,” he says. Agreed. Q

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Jerald O’Kennard, director of the Beverage Testing Institute in Chicago, has much expertise in determining which spirits bottles are successes and which are flops. Here are his reasons for why bartenders and retailers need to pay attention to the look of a bottle: There’s no one thing that determines whether a package is successful or not. Whatever it looks like, it needs to convey the essence of the product and reinforce its image. When a bottle captures a product’s history and mission, then it stands out and creates interest among consumers.

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While bartenders care most about the quality of a liquor and how it translates to making cocktails (rightly so), if they are showing off a bottle to customers they want to look good doing it. It’s secondary but if it’s an eyecatching package, it seals the deal. Packaging is even more important now that the marketplace is so crowded. Fancy designs aren’t always the most practical. In the name of creativity a designer might not realize that the handle, for example, is on the wrong side making it difficult for a bartender to pour. Or it’s too big, and it takes up two precious spaces on the backbar. If a bottle is inconvenient for a bartender and they don’t want to use it, you’re lost. You can’t build a brand without a bartender.

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DESIGN RESPONSIBLY Banbury Cross offers a mix of striking photography, innovative graphic and web page design, astute product marketing campaigns and attention to detail at some of the most competitive prices on the market! Let us help make your business into a work of art.

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BRAND PROFILE

Green’s Rich New Sheen 360 Vodka achieves the industry “gold standard” using eco-friendly practices.

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hen it launched back in 2007, 360 Vodka got a lot of attention for their ambition to be recognized as the “world’s greenest vodka” by producing it in the U.S.’s most energy efficient distillery.

The idea of a sustainable vodka in itself was a hit, and it was quickly embraced in markets in all 50 states. Retailers and consumers were anxious to experience a smooth tasting vodka that was brought to life leaving the smallest carbon footprint on earth…a rarity in any industry. Since its launch, 360 Vodka was championed by nightclubs, restaurants, bars and retailers and garnered a strong reputation as a high quality vodka that could readily go head to head with the biggest names in vodka from around the world. Though creating a quality vodka through green means is an admirable goal and a lofty achievement, however, there is that matter of reconciling its manufacture with quality and taste. While trade and consumer demand for eco-friendly spirits is definitely there, the makers of 360 Vodka recognized that an ultra-premium taste, consistency and versatility needed to be the final result of green production to complete that equation. During the course of 2007, 360 Vodka’s multi-faceted goal was validated with their first gold medal from the Chicago Beverage Tasting Institute and a second from the prestigious San Francisco World Spirits Competition. As the summer progressed, 360 Vodka went on to garner a third gold 36

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2 oz. 360 Vodka 1/4 oz. Wasabi Puree (made fresh) 1/2 oz. Ginger Syrup 1 oz. Sour Mix Splash of Lemon-Lime Soda

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medal from the Los Angeles Wine and Spirits Competition, which also awarded the emerging and sustainable luxury ultra premium vodka as the best overall vodka. “We are thrilled to be recognized by such respected organizations and competition judges for our taste and quality,” affirmed Ed Pechar, Chairman of the Earth Friendly distilling Company. “We are very proud of our environmental achievements, so winning a triple crown this year for the superior taste of 360 Vodka confirms what we’ve always known: great taste does not have to be sacrificed for eco-friendliness.” Like many great vodkas that are taking part in the up-and-coming Mixology Culture that has taken both the spirits industry and public’s imagination by storm, 360 Vodka now has a Brand Ambassador. Graham Kimura, a mixologist for more than 13 years, is taking 360 Vodka’s act on the road, demonstrating it works in a myriad of new cocktail creations and classics. “I am not surprised that 360 Vodka is winning so many awards, and I predict that they will win many more,” said Kimura. “360 Vodka is such a smooth and silky spirit, and with its impressive commitment to the environment, I was honored to join the 360 team and showcase this outstanding vodka across America.” 360 Vodka retails for approximately $19.99, and is widely available at retailers across the country. For more information, visit the www.vodka360.com web site for more info on the company’s environmental and mixology-driven vision. I

2009 San Francisco World Spirits Competition — Distinguishes 360 Vodka among the world’s best spirits by awarding 360 Vodka a gold medal.

2009 Los Angeles International Wine & Spirits Competition — In one of the largest most prestigious competitions of its kind, 360 Vodka named “Best of Vodka.”

2008 Growth Brand Rising Star — 360 Vodka was one of only twelve “Rising Star” awarded spirits brands in 2008.

2007 Beverage Testing Institute — 360 Vodka awarded the gold medal by world-class sensory evaluations experts.

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NEW PR PRODUCTS ODUCTS & PROMOTION PROMOTIONS NS 1 Parrot Parrot Bay E EXPANDS XPAN D S WITH T TWO WO N NEW EW FLA FLAVORS AVOR S Parrot Bay is adding two new flavo ors to its line of flavored flavors rum. Parrot Bay Strawberry is wildd strawberry rum filled with hand-picked berry flavor flavor,, while Pa Parrot arrot Bay Orange is a zesty orange rum with sweet, fresh and juicy flavors. Both new flavors are available in 50ml, 750ml, ml, 1L and 1.75L sizes. Visit V isit www www.captainmorgan.com .captainmorgan.com

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2 Panther Panther R Rock ock W Wine ine Companyy L LAUNCHES AU NCH E S M MOTOS OTOS L LIBERTY I B E RTY C CELLARS E LLAR S Motos Liberty Liberty,, a new wine brand from Panther Rock Com Com-pany pany,, has made its national debut.. Decked out with a carefree motorcycle-themed label, California-made nia-made Motos Liberty is available in two white wine varietals, tals, the 2008 Pinot Grigio and the 2008 Chardonnay Chardonnay,, and th three hree red wines, the 2007 Merlot, 2008 Pinot Noir and 20088 Cabernet Sauvignon. Contact: 707-265-4050 or visit www.motosliberty.com www ww.motosliberty.com

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3 Smirnoff Smirnoff E EXPANDS XPAN D S ITS L LINE INE WITH T WO N EW FLA AVOR S TWO NEW FLAVORS Smirnoff has added two new fruitss to its diverse line-up of fla fla-vodkas. vored vo dkas. Smirnoff Pear captures ures the flavor and aroma of pear,, while consum-a freshly f hl picked k d pear h l Smirnoff noff ff Pineapple l gives consum ers a fresh and zesty pineapple taste. Both new flavors will be available in 50ml, 375ml replica, 750ml, 1L, and 1.75L sizes. Visit www.smirnoff.com V isit www .smirnoff.com Wabo SPORTS NEW LOOK 4 Cabo W abo S PORTS A N EW L OOK Wabo Tequila After more than 10 years on the market, Cabo W abo T equila makeover,, giving the has received a makeover he brand a fresh, new look. The vibrant new design features clean lines and clear glass to color,, brilliance andd quality of the hand-crafted showcase the color Weber 100% Blue W eber Agave tequila. The four styles of Cabo Wabo, Blanco,, Reposado Reposado,, Añejo and Uno,, will showcase W abo, Blanco an nd Cabo Uno nationally.. the new packaging and will be available ailable nationally Visit www.cabowabo.com V isit www .cabowabo.com RELEASES 5 Jefferson’s R E LEAS E S ITS PRESIDENTIAL SELECT BOURBON PR E S I D E NTIAL S E LECT B OU U R BON Louisville’ss renowned Sti Stitzel-Weller In 1991, Louisville’ itzel-Weller Distillery closed later,, Trey its doors. Seventeen years later Trey Zoeller of McLain & Kyne stumbled upon a reserve bourbon, urbon, which the company Jefferson’ss Presi Presidential is now bottling as Jefferson’ dential Select. This rich spirit, aged for 17 years, is now available ailable in extremely limited quantities to select markets and retail etail outlets. Visit www.castlebrandsinc.com V isit www .castlebrandsinc.com

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Duboeuf LAUNCHES 6 George D uboeuf L AU NCH E S NEW LINE OF VARIETAL WINES N EW L INE O FV AR I ETAL W INES Vins Les V ins George Duboeuf has released eased Patch Block, a new Languedoc line of varietal wines from the Lan nguedoc region of France. The wines, priced under $10, are blends of several patches or ‘blocks’ of vineyards that each offer distinct qualities. The Chardonnay,, Pinot varietal line includes Sauvignon Blanc, Chardonnay Noir,, Merlot and Cabernet Sauvig Sauvignon, Noir gnon, each available in Viognier 750ml and 1.5L bottles, and will soon include V iognier Visit www.duboeuf.com and Rosé. V isit www .duboeuf.com m 38

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Good Taste, En Español The paradigm involving Tequila and other south-ofthe-border spirits has shifted, thanks to this decade’s emphasis on the creation of “premium” and “ultrapremium” designations. Producers and purveyors familiar with the demands of Hispanic markets know the marketing, packaging and promotion have to be just as finely crafted.

Although the crossover appeal of Latin American spirits and beers is no longer a question, companies big and small acknowledge that the maintenance of a strong foundation among HispanicAmerican consumers will ensure overall business will continue to grow. Various appeals to general consumers (including the mixology movement, evolving foodie culture and ultra-premium spirits’ cache as an “affordable luxury”) are effective. However, to keep the attention of the base demographic, purveyors and distributors acknowledge that you have to get the final customers where they live--literally, culturally and emotionally.

THE WORLD’S #1 PREMIUM TEQUILA

DISFRUTE CON MODERACION. DRINK RESPONSIBLY. www.cazadores.com ©2009 CAZADORES IS A REGISTERED TRADEMARK AND THE DEER DEVICE IS A TRADEMARK. IMPORTED BY TEQUILA CAZADORES U.S.A., SEAL BEACH, CA. TEQUILAS –EACH 40% ALC. BY VOL. *IWSR 2008

CATEGORY FOCUS

itself. (In terms of flavor profile), we are closer to a man’s whiskey than a spirit used to make a cosmopolitan.” In recent years, Beam Global has emerged as a powerhouse for tequilas ranging from Sauza at one end of the spectrum and Hornitos and Tres Generaciones at the other. With the fairly recent addition of Cien Anos to the family, Beam Global is now in a unique position to appeal uniquely to the well-defined Hispanic market. According to Tequila brand manager Antonio Portillo, Cien Anos has successfully established its niche as a quality tequila by and for Mexicans and Mexican-Americans who know and love their tequila. As one of the best selling brands in Mexico over the past decade, Antonio says it is no surprise that its transition into the U.S. Hispanic market has been as smooth as its Reposado served neat. “It is very much a grass roots tequila brand,” explains Antonio. “Fans of Cien Anos find that the tequilas, and especially the Reposado, represent the true flavor of Mexico. While the sales among the general American market can be diffused into other categories such as Whiskey and Vodka, for Mexican-Americans, tequila represents their spirit. Doing this, we get businesses and consumers focused on the fact that Cien Anos represents the authenticity consumers are seeking out in a tequila to make their own.” “Tenampa Azul is already a major brand in Mexico, and the fastest growing 100% Agave tequila in the Mexican market,” says Scott J. Schiller, Marketing Manager at Proximo Spirits, which also represents ultra

Home is Where the Heart Is Although times are changing throughout the spirits industry in terms of how all markets enjoy and purchase product, many distributors and purveyors notice that Hispanic American consumers still have their moments where they like their drinking experiences traditional and simple. “As a supplier, we are very proud of our tequila portfolio,” states Aaron Burns, who spearheads the Emerging Brands division of Bacardi, which includes Cazadores and Corzo tequilas. “Corzo is designer in nature and meant to be a step up from premiums,. Cazadores is in the category’s mid tier, and perceived by its target market of MexicanAmericans as the Jack Daniels of tequila, the one consumers look at and say is a man’s tequila that is meant to be enjoyed straight.” While Burns acknowledges that Mexican Americans and new arrivals in the U.S. in recent years have become more acculturated to American lifestyle and culture at a much faster rate, thanks in part to technology like web pages and social networking. For these consumers, however, nothing will ever displace the value they put on heritage, familiarity and authenticity to their culture. “This would encompass Cazadores because these people really associate a product with its roots,” affirms Burns. “Though some of Cazadores’ contemporaries have repackaged themselves and made themselves a little more designer, it is important to us to keep Cazadores rooted in the masculinity, authenticity and boldness within the tequila 42

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CATEGORY FOCUS continued premium Gran Centenario and Maestro Dobel. “Since Tenampa Azul was just launched in the United States, many consumers have already been looking for it based on their personal knowledge or recommendation from relatives who live in Mexico. Our main marketing effort has been focused on distribution and informing accounts that Tenampa Azul Silver and Reposado are now available in the US in the sizes of 750 ml, 1 Liter, and 1.75 Liter.” Scorpion Mezcal’s U.S. representative Barbara Sweetman, meanwhile, has a little bit more of a challenge as she has found that most Hispanic-American consumers are not as familiar with Mezcals, a agave-based first cousin to Tequila produced outside the designated Tequila production region in Jalisco, Mexico. She has found the remedy to this problem can also be a great sales tool, especially when it comes to Mexican-Americans wanting to learn more about their ancestral country. “We have found that education is most important to introducing what is the oldest North American spirit category,” says

Sweetman. “By getting people interested in the history and culture behind Mezcal, we have been able to reach more people in all cases. Our growth and the trend toward Hispanic audiences trying Mezcal has been increasing annually.” Other specialty tequilas and related spirits, such as Oro Azul, 3 Amigos, Muchote, Cava Don Anastacio, Capaz Tequila, Caballito Cerrero are hinging their low-key marketing on authenticity, evidenced by relatively simple packaging, emphasis on Mexican agave and production techniques and other appeals to people’s passion for their culture. As smaller producers, they aim to capture potential long-term fans seeking a connection to their roots rather than make large, quick volume sales.

A Fiesta of Flavor Just as restaurants, retailers and general consumers across America have become more cosmopolitan in the way they prepare, present and eat a variety of cuisines, Mexican and Hispanic Americans are becoming

more adventurous in the way they approach cuisine and cocktails—even from their own culture—in daily life and Happy Hour. “Some interesting recipes have recently been created by top mixologists using Scorpion Mezcals and food products, as well as pairing Mezcals with foods and incorporating the spirit into recipes,” observes Sweetman. “For example Mezcal and avocados have been brought together in all kinds of interesting ways. Dale DeGroff and Junior Merino have both created excellent recipes using Scorpion Mezcals in avocado cocktails. A restaurant in Denver did a (sold out) Scorpion Mezcal Dinner, each coarse paired with a Mezcal and using a different aging of Scorpion Mezcal in the recipes. The last corse was Chocolate y Churros, using Scorpion Mezcal Anejo 5 Year in the vanilla ice cream and in the hot chocolate.” Antonio Portillo, explains that Beam Global and Cien Anos in particular is showing its awareness of the foodie movement and increasing popularity of home entertaining through its recently launched “Mercado” program that draws cultural con-

CATEGORY FOCUS continued nections between the tequila and the dishes prepared and enjoyed on different milestones and holidays throughout the year. “With the Mercado program, we offer recipes for food and drink that add new dimension to how our consumers prepare and enjoy different kinds of dishes throughout the year,” he says. “This has similarities to our Hornitos program, where we do something similar for general consumer markets, making that important connection between food and tequila, such as brand ambassador Eddie Perales’ food and cocktail recipe program at the L.A. restaurant Malo to kick off the Mischieve campaign this summer.” Cien Anos’ mixology program taps into traditional cocktails and their updates, such as the Paloma and a variation of the Bloody Mary, called “The Bloody Maria,” made with Cien Anos, which (Antonio) points out is hugely popular in Mexico. The balance of Cien Anos’ mixology program, naturally, taps into other Cien Anos recipes that originated in Mexico or are based on classic recipes. To do well in a category, Bacardi’s Burns finds that for brands like Cazadores, the best strategy is to give the consumer what they want. Mexican-American consumers, from his experience, primarily drink tequila straight, or in a traditional cocktail like a

Paloma, their promotions for the MexicanAmerican consumer is centered around the Paloma. For example, several times a year, Cazadores merchandises co-packs with Squirt grapefruit soda. Chaya Tequila, on the other hand, is taking a daring step, by teaming up with trend-setting restaurant group Chaya Brasserie. At the Chaya Downtown location in Los Angeles, which boasts an upscale clientele that includes Hispanic professionals, head mixologist Mary Thompson has created special signature recipes offering a special nod to the city’s multi-cultural culinary roots.

Word of Boca: The Role of Marketing, Labeling and Pricing For ultra-premium tequila powerhouse Patrón, the strategy of spreading word of mouth via the highest profile tastemakers and events continues to help the entire brand exceed expectations for the entire portfolio. Whether the audience is general or Hispanic, events such as a K-Swiss Fashion Show, a G-Shock watch promotion with Kanye West and Gen Art’s Summer Cocktail Soiree have all conveyed a consistent message: if you appreciate the

best tequila, serve it to your guests. At Bacardi, even with Corzo as a worthy competitor to Patrón, Burns explains that campaigns targeted at MexicanAmerican communities are based on loyalty to their roots and how they associate the Cazadores brand as part of their culture. “There will be investing in our Paloma strategy both on- and off-premise at our Mexican “lifehouse” accounts that primarily cater to Hispanic Americans,” says Burns. “The economy is affecting Cazadores, and the Mexican American consumer has traded down somewhat over the past twelve months to lower-priced mid range brands. (We believe) that brands that cut their prices to hold on to consumers will have difficulty returning to the brand equity and original price points they had before the economic downturn.” Preiss Imports’ portfolio of Hispanic products is complex and hits all corners of Latin America, Henry Preiss believes marketing should be kept simple to the point that the products and their versatility speak for themselves. What the products are and what they represent culturally and from a culinary stanpoint should be left up to the consumer. “As we see it, Latin American products that make up our portfolio are desirable

Hot Damiana! As temperatures outside cool off and holiday entertaining heats up, bartenders of all stripes are looking for that hot new spirit sure to have their guests talking. This year could be the year of Damiana Liqueur, a light herbal-based liqueur from Baja California, Mexico made with the damiana herb that grows locally and has been used by locals for generation thanks to its alleged medicinal properties and aphrodisiac effects. Though this goddess among liqueurs is just hitting shelves across the U.S., mixologists and retailers are noticing it is flying off the shelves and into cocktails and home bars faster than anybody could have expected. It is poised to be this year’s hottest new liqueur. Inside a frankly sexy bottle that evokes an Incan goddess rests a brilliant electric golden green liquid almost suggestive of Absinthe. However, similarities of the spirits end there. This fluid is exotically spicy and aromatically fresh, with its hints of ground nutmeg, vanilla, cinnamon bark, ginger and white pepper. . While this spirit will no doubt make for an appealing shooter, bartenders are discovering it as a “secret ingredient” for a variety of cocktails from classics to their own creations. The Damiana Margarita, for example, has been popular for years in the Los Cabos area of Mexico, and Mexican margarita folklore says that the very first margarita ever made was made with Damiana Liqueur. Now that it has been made widely available via American Spirits, it is only a matter of time before mixologists use it to jazz up the classics as well as make their own provocative new creations.

CATEGORY FOCUS continued

VIVA EL SABOR! Recipes that translate tradition into a modern mixology context Proud Mary Slice of Meyer Lemon muddled or .5 oz. Lemon Juice 1 teaspoon chopped or muddled fresh Dill Weed 1.5 Tablespoons chopped or muddled pealed cucumber 3 dashes Tabasco Sauce 3 dashes Worcestershire Sauce Dash Salt Dash Pepper 3 oz. Tomato Juice 2 oz. Scorpion Mezcal Silver Shake| Pour | Garnish: cucumber spear, chili salt rim CAZADORES Paloma 1.5 oz. Tequila Cazadores Blanco 4 parts grapefruit soda 1 part fresh lime juice 2 parts club soda (optional) Pour over ice | Garnish: salt-rimmed glass Pena Spice 1.5 oz Tres Generaciones Reposado .5 oz Agave Nectar 2 oz Fresh Lemon Sour Juice from 1/2 lime 8-10 Blueberries 4-6 pieces Cubed Pineapple 3 fresh Mint Sprigs 1/2 Jalapeño Muddle | Shake | Strain over ice | Garnish: mint sprig

48 CAZADORES PALOMA

updated our communications and advertising strategies to fit with today’s market both within and outside the Hispanic Community. We have deliberately changed nothing about its appeal or message.” The core of Tres Generacions’ marketing is recognition of the brand’s “Three Dons” of the Sauza family who generation by generation made tequila as a category what it is today. It has been used as a starting point for The Coa Award (named for the tool used to harvest agave in tequila production), a highly effective arts-driven campaign saluting current and future generations of Hispanic-American filmmakers and artists. At the New York Film Festival this summer, actor/filmmaker John Leguizamo received the award for his artistic career achievements as well as philanthropic contributions. At Proximo, Schiller expresses the collective belief among his peers that the tequila portfolio’s products speak for themselves. For this reason, he says Proximo has never tried to entice a consumer otherwise. As Tenampa Azul has been lauded by F. Paul Pacult as, “The best value in all of Tequila, buy by the case and don’t look back,” the focus remains on simply producing the best 100% agave tequila at the best price. Says Schiller. “On top of all (the product’s) heritage and recent accolades, Tenampa Azul has a very fresh and modern image, reflected in our new packaging designed to highlight (its) Mexican heritage. Festivals and target market events, as well as charities are a primary way we can achieve this objective while educating and introducing consumers to our products.” Tequila Capaz is getting its message across through appearances that appeal to Mexican Americans and general tequila connoisseurs alike. These events include competitions and festivals hosted by TEQUILA 100% Magazine, Galeria Alternativa, Spirits of Mexico, HotMixology.com (T.V./Web), and charity events benefitting organizations such as the Orange County Culinary Olympics (autism and juvenile diabetes) and Jump for the Cause (breast cancer).

products for use in classic and creative cocktails and as such are approachable by all,” affirms Preiss. “Chinaco Tequila, quite simply, is one of the very best and the original ultra premium Tequilas available, while our Ypioca Cachaca comes from the largest estate producer in Brazil and is a brand respected among Brazilians. Don Cesar Pisco, with eight years running worth of gold medals earned at the Sheraton Lima Peru Pisco Competition offers customers an Ultra premium spirit at an affordable price.” Preiss notes the creative team have decided to scale back on gift pack promotions, as these customers want substance in today’s world, and not a lot of puffery. Even with the resources Beam Global has on hand, meanwhile, effective marketing is all about getting back to the products’ roots and addressing the people’s roots. With Angel Bendito Tequila and other tequilas in Aguirre Tequila Imports’ portfolio, company president Ernesto Aguirre says that his focus has been to get target markets across the board to break out of the old ways to enjoy Tequila (shots, lime, salt) and expanding consumer’s horizons ways to enjoy their brands in ways that put Hispanic culture in a variety of interesting contexts. “We are advertising at select Angels baseball games in the stadium scoreboards, and on Angles Radio during those same games,” says Aguirre. “As a result, we are doing great with Angel Bendito Tequila, we have a restaurant program that has really worked great for the brand to bring momentum to our grass roots appeal. We invented the Angel'rita for the restaurants and that is really having an impact on volume.” “We value the impact all brands in the Beam Global portfolio are making on both the Mexican/Hispanic Community and general community, and each brand has its own unique role and identity,” says Antonio Portillo. “We’ve updated the packaging of Tres Generaciones to represent its status as an ultra premium tequila. With Hornitos, we changed the packaging two years ago to reflect its status as a brand with modern appeal and ties to tradition. For both, we BIN

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NEW, REDESIGNED PACKAGE. SAME DISTINGUISHED TASTE. THE ULTRA PREMIUM TEQUILA THAT LEAVES NOTHING TO CHANCE. Hand-harvested, handcrafted, and estate bottled the same way since 1870. Produced at the legendary Casa Herradura.

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CATEGORY FOCUS continued inside the bottle that keeps customers coming back, no matter why they gravitate toward a particular brand. Says Rios. “When more people are educated on “tequila” as a whole, we feel that we don’t have to work as hard to sell our products. Educating the consumer is half our work. Both of our brands are selling equally well, and yet Capaz’s Anejo seems more favorable to the consumers who know their tequilas. Tequila 55 sells more for presentation while Tequila Capaz more for pricing. However, we can say with confidence that both are great tequilas.”

Thinking Outside la Botella y la Caja “We supply a rich assortment of tools to make classic Latin cocktails from muddlers to glassware,” says Preiss. “We have a great in-house graphics team doing menus and table tents etc. For Chinaco Tequila, we are developing a number of display pieces from bar mats, glassware, electric signage and restaurant chalkboards. They are all made in a very discerning way to show and enhance the quality and authenticity image of the brand.” Scorpion Mezcal’s creative team as well as their California distribution company Pacific Edge Wine & Spirits (pacificedgesales.com), are focused on having a little bit of fun with its visual marketing using Hispanic culture and pop culture to generate excitement for the spirit. Even with some wit, however, Barbara Sweetman understands the overall impact should have a level of sophistication and elegance. “We have upgraded our bottle look to incorporate the use of metallic lettering on the labels, but we also have kept the little somberito (hat) on the bottle,” she says. “We find that consumers really like these elements, and it lends an authentic look to the bottle. However, there is a scorpion in each bottle, and even with that our Mezcals taste amazing. Our bottle IS our special packaging down to its built-in POS (point of sale), the Scorpion. Some staff at our on-premise accounts save the scorpion in the bottle and raffle it off when the spirit is used up. Additionally, we celebrate the zodiac sign Scorpio (Oct 23rd-Nov. 22nd) with Scorpion Mezcal promotions, and many consumers buy for gifts because of this aspect.” Tequila Rose, for example, is a solid

Living La Vida “Verde” (Green) stand-in for Irish cream and other comparable European liqueurs, with its selection of strawberry, java (coffee) and cocoa flavors and lovely companion gift packs for the Holiday season. This alone gives it a strong niche appeal, especially with female consumers and mixologists at upscale Mexican restaurants looking for creative new drink components. However, the new pyramidshaped bottles and sharp labels add an extra dimension of intrigue. Casa Noble, meanwhile, has shrunken their authentic Mexican blown glass decanters into three miniature samples, packaged in a regal blue box perfect for hostess gifts and party favors. The package, originally intended as a b-to-b premium between wholesalers and accounts, was such a hit that the founders transformed it into a gift of affordable luxury. Adam Rios of BreakAway Spirits, which imports Tequila Capaz and Tequila 55, notes that while packaging is important for mid range and premium tequilas, it is what is

Nobelita 2 oz Casa Noble Organic Crystal Tequila 1 oz organic orange juice 3 oz Pom Pomegranate juice Squeeze of lime

Tequila Alquimia, meanwhile, is not just using a green approach to win HispanicAmerican consumers, but basing its appeal and claims of quality on it. “Earlier this year, we proudly announced that we just received the results of this years' Chicago Beverage Institute's International Review of Spirits,” says Dr. Adolfo Murillo, President and CEO of Tequila Alquimia. “We were just awarded three gold medals, one each for our Anejo, Reposado, and Blanco. From this and the equally prestigious San Francisco World Spirits Competition, over the past two years, Alquimia Anejo won three gold medals and one silver. Alquimia Blanco won two gold medals and one silver. Alquimia Reposado earned a gold and a silver. For us, in addition to the status and recognition, these industry awards are very important to us and our marketing in that they help us continue to promote our work in the teaching of organic agriculture. Our recent USDA Organic Certification will also help to validate our project.”

Damiana Margarita The original Mexican Margarita 1oz. Damiana Liqueur 1-1/4 oz. Premium Tequila 2 oz. Margarita Mix Shake | Pour

Shake | Pour | Garnish: fresh pomegranate seeds, lime 50

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NÚmero 1 en México.* #1-selling Tequila in Mexico

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To Mix

CATEGORY FOCUS continued

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handcraft traditions that go back generations. “We now mention at every tasting event that all of our bottles are and have always been crafted out of 100% recycled glass,” says Aguirre. “Our standard packaging has always done very well for us, during the holidays all our brands are given as gifts as is, due to our unique ‘no two bottles are identical’ packaging. Tequila Canicas still uses a traditional Tequila decanter in hand blown glass with the marbles inside, For Angel Bendito, we have a limited edition ceramic bottle fo holiday gift giving.”

The green movement in spirits is also in tune with Tenampa Azul’s positioning, according to Proximo’s Schiller. He points out that consumers respond well to the fact that the product attracts its following by virtue of its 100%, hand harvested agave, earth friendly harvesting and growing methods, and amazing quality and flavor. To attract new consumers to Tenampa Azul, Schiller explains that the company creates, “unique experiences through hosted tequila seminars and dinners that create a wonderful way to experience and learn about tequila from the ground up.” One of Proximo’s other bestsellers is Rosangel by Grand Centenario, which fuses the award winning Gran Centenario Reposado with real Hibiscus flowers, and then aged for additional two months in port barrels, making for a tequila that offers a light, natural sweetness. Henry Preiss believes in the importance of working with a great number of mixologists across the USA is the most effective way to address the demand among consumers to drink greener and smarter. “Recently a promotion we ran at Blue Mesa Grill Restaurants in Texas featured a drink made from fresh blood orange juice, Chinaco and St. Germaine. From Beam Global’s perspective, the green appeal has been just as important to niche markets as well as general markets. Antonio Portillo points out that in terms of being green, they are working very hard to get the message to the Hispanic-American base that Cien Anos has always done things in an environmentally friendly way. At Aguirre Imports, packaging carries a green appeal in a way that echoes Hispanic 52

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Challenges Brewing While tequila and other spirits have much to celebrate, the picture is a little less rosy for beers made in Mexico and other parts of Latin America. Hispanic beers initially enjoyed consistent growth, thanks to the fact that between 1990-2008, there was a growth in population among persons of Hispanic ancestry. However, because of reasons tied to the current economy, Hispanic beers, along with large volume production beers (Budweiser et al) have fallen sharply. While the Pew Research Center projections show that 82% of all U.S. population growth from now until 2050 will come from new immigrants. However, if trends continue, and immigration if immigration slows, particularly from Mexico, there will be no growth in the numbers of children and families. "In fact," writes Nielsen in a recent study, “(this) key market segments will decline in absolute numbers from year to year, and will cause the U.S. population overall to age even faster than has been projected.” I 8

U.S. DRINKS CONFERENCE 2009 “The Insider’s Guide to the U.S. Beverage Alcohol Market” NEW YORK CITY * OCTOBER 13 & 14 SOME OF THE FEATURED SPEAKERS:

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TYPES OF QUESTIONS YOU’LL GET ANSWERED: t

What are the trends in the U.S. market on and off trade and how can I use this information to decide how, when, and where to market my product?

t

With U.S. distribution consolidating so rapidly what are the options for new suppliers?

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What are the steps I need to take to enter the U.S. market?

t

How much money do I need to spend, for what period of time, and how to allocate to key functions...POS, advertising, sales support?

t Industry Experts t Panel Discussions Michael Waterhouse Owner Drink Tank LTD

Ted Roman SVP Sales William Grant & Sons, USA

Rob Cooper President St. Germain

t Trends & Research t Audience Q & A Chris Adams CEO Sherry-Lehmann

Bruce Levine VP Sales Strategies The Charmer Sunbelt Group

Mike Holden President Don Sebastiani & Sons

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Chris Steffanci Sr. VP Sales Heineken USA

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Burt Notarius President Prime Wines Corporation

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INDUSTRY EVENT 1

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At this year’s 7th annual Tales of the Cocktail, held July 8th-12th, the spirits industry descended upon New Orleans for non-stop seminars, spirited dinners and, of course, more than a few cocktails.

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1 Jim Meehan of PDT in NYC with Tales of the Cocktail founder Ann Tuennerman and “Mr. Cocktail” Paul Tuennerman after snagging the awards for World’s Best Cocktail Bar and American Bartender of the Year 2 Beefeater master distiller, Desmond Payne, welcomes revelers at the Beefeater reception held at The Roosevelt Hotel 3 New Orleans brings together Beam master mixologists Jason Crawley (Australia), Philip Raimondo (USA), Wayne Collins (UK/Europe), Bobby “G” Gleason (USA) and Andy Gemmel (UK) 4 Aaron Rodonis, Bacardi brand master, leads a Bacardi Belief session during the Birth of the Daiquiri event 5 Hendrick’s brand ambassador, Charlotte Voisey, with Modern Mixologist, Tony Abou-Ganim, at the Spirit Awards 6 Steve Olson and Andy Seymour get in on the action at Diageo’s Cocktail Hour 7 Dale DeGroff regales the crowd at the Spirit Awards 8 Charles Gibb, president and CEO of Millennium, at the Seven Deadly Sins party 9 Suzanne Freedman, director on-premise, Pernod Ricard USA, shares a cocktail with Plymouth Gin master distiller, Sean Harrison, at the Bartender’s Breakfast 10 Beefeater 24 brand ambassador, Dan Warner, serves up “Beefeater Raspberry Collins” at The Roosevelt welcome reception 11 Julie Reiner accepting the award for Brooklyn, NY’s Clover Club, deemed the World’s Best New Cocktail Bar 12 Francesco Lafranconi, Southern Wine & Spirits’ director of mixology, BarSol Pisco’s Diego Loret de Mola and William Slone, of Beverage Media, at the BarSol spirited dinner 13 Philip Raimondo and Bobby “G” Gleason, Beam Global master mixologists, pour at Hornitos’ Mischieve in the Garden of Agave party

Discover Chile’s finest export Balduzzi Wines

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alduzzi Wines is an award wining portfolio of premium wines from a selection of the most desirable vineyards in Chile. The winery has 3 estates located in the Maule Valley, the most important wine producing region in Chile which craft wines that express the diversity of these appellations that answer the consumers’ demand for enjoyable, mindfully grown wines for every occasion. Balduzzi Wines 2009 Value Brand Award - The Beverage Testing Institute Available From Saharex, Inc. 818.507.6910 www.saharex.com | www.balduzziusa.com

INDUSTRY NEWS SPIRITED FRIENDS OF BIN HIT THE (MALIBU) BEACH FOR A GOOD CAUSE Blue Ice Vodka, Tequila Angel Bendito and newcomer Deleon Tequila, along with several of Southern and Central California’s most acclaimed wineries (including Kaena, Kenneth Volk, Laetitia, L'Aventure, Malibu Solstice Vineyard and Rosenthal Malibu Estate) paired themselves up with scrumptious bites from Los Angeles’ top destination restaurants (such as STK, Casa Escobar Malibu, Charlie's Malibu, Michael's Restaurant and Moonshadows) to bring forth the seventh edition of The Malibu Wine Classic benefitting Childhelp (www.childhelp.org), dedicated to the treatment and prevention of child abuse. Tori Spelling, Tommy and Sandi Tang and Mariel Hemmingway were among 1,000 local foodies who braved the heat to support the charity and enjoy the area’s most glamorous picnic.

Frank Moreno, General Manager-Tortilla Jo's with Cameron Coulson, Manager-Tortilla Jo's.

ANGEL BENDITO TEQUILAS BRING A HEAVENLY TOUCH TO TORTILLA JO’S SUMMER BAR MENU Over the course of the summer, Tortilla Jo’s proved itself to be one of the happiest places on earth for emerging tequila brand Angel Bendito and its importer, Ernesto Aguirre. Tortilla Jo’s, a Patina Restaurant Group eatery based at Downtown Disney, is widely known for its unique tequila program that showcases lesser-known ultra premium brands. Though General Manager Frank Moreno notes that many tequila companies vie for a coveted slot where their products are featured exclusively for five to seven weeks, Angel Bendito made the cut, in part because of Aguirre’s assertiveness and great packaging. “Ernesto found us, and we thought the bottles were beautiful,” said Moreno. “However, it was the taste of the tequilas, and the Blanco in particular, that kept our attention.” From mid June through early August, Moreno engineered a promotion where the Angel Bendito Blanco was integrated into the house margarita, all three varieties were offered in tasting flights and Angel Bendito shot glasses were given to guests with purchase of a full shot of their choice of the tequilas. During the promotion, 56 cases of Angel Bendito were sold at Tortilla Jo’s. On September 1, Aguirre rewarded Frank Moreno and his team for their loyalty and efforts. At the special ceremony, he proclaimed them Angel Bendito’s 2009 Restaurant of the Year 2009, with a black ceramic bottle customized with Tortilla Jo’s logo on it. For his commitment to the brand, Frank Moreno received a customized Angel Bendito Tequila Three-Year Anejo, which he affirmed was, “an unexpected but very nice surprise.” 56

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VEEV AÇAÍ SPIRIT EXPANDS DISTRIBUTION VeeV, the World’s First Açaí Spirit, is meeting growing demands from the US on-premise marketplace by expanding its availability nationwide. Being the first spirit infused with Brazil’s super-berry açaí, VeeV is now available at all locations of Bubba Gump Shrimp Company, Del Frisco’s and Sullivan’s Steakhouses, RUI (Restaurant Unlimited), Restaurants-America, and Lazy Dog Café. VeeV continues to be one of the hottest new brands in the spirits industry with year over year growth in excess of over 500% since its launch in 2007.A truly green brand, VeeV is the only certified carbon 8

JIM BEAM® KENTUCKY STRAIGHT BOURBON WHISKEY. 40% ALC./VOL. ©2009 JAMES B. BEAM DISTILLING CO., CLERMONT, KY. BEVERAGE TESTING INSTITUTE, INC. – 2008. PROFESSIONAL TASTING – CHICAGO, IL.

INDUSTRY NEWS neutral spirits company worldwide, donating $1 per bottle sold to the Brazilian Rainforest to secure the safe harvest of açaí. VeeV is a column distilled base wheat spirit infused with açaí, and blended with prickly pear and Acerola cherry. Technically a liquor (60 proof), VeeV mixes like vodka, only with a smoother finish. It retails at $34.99 for 750ml. For more information, please visit www.veevlife.com.

HOTMIXOLOGY’S UNIQUE MULTI-MEDIA PLATFORM GAINS NATIONAL AUDIENCE WITH NEW TV SERIES AND CONSUMER MAGAZINE Throw cocktail platform, brand integration, cable distribution, original content and online strategy into a chilled television package and shake until frothy. Serve up with a sprinkle of talent and a twisted host. The result? Hotmixology, a breakthrough television program that celebrates haute home cocktailing. Hotmixology has partnered with Dish Networks and Direct TV via distribution on the IONW Network following the success of Hotmixology.com. This October, Hotmixology will join their exciting line-up of lifestyle programming including food, travel and style features like Taste!, The Weekend Guy, Explore and Bringing It Home and have a reach of 27 million+ households nationwide. To complete a unique multi-media concept blending together the best aspects of a television series, on-line (hotmixology.com) and magazine journalism, this November, Hotmixology Magazine will be hitting the shelves and cocktail tables of aspiring home mixologists and spirits afficionados everywhere. Based on the vision of Hotmixology.com founder Dave Elger, the magazine can be described as a cocktail of practical information, innovative entertaining ideas and spirited fun for home-mixology and entertaining enthusiasts. In its pages, Hotmixology Magazine will be covering the lifestyle of cocktails, spirits and wine, repositioned in a modern context, for the way people live and entertain today. According to the vision of Elger, it will not just be a companion magazine for an innovative television show about spirited spirits, wine and beer. Its mission will be to take drama, color and fun of cocktails and memorable celebrations and—literally—put it all into the hands of the reader. Writers and editors will be combing the world of mixology and the world to find the best bars, bartenders, cocktails and food pairing ideas and bring them all within reach. For more info, call (303) 562-6772 or [email protected].

KOZ: GREAT WINE AND ALL THAT JAZZ… Grammy nominated saxophonist Dave Koz has transformed his passion for pairing fine wine and fine music into a harmonious partnership with Whole Foods Market and respected winemaker Chris Condos of Napa Valley-based Vinum Cellars to create a line of mid-priced wines bearing his name. Koz’s new orchestra consists of limited edition 2007 Red Blend ($16.99; 48% Syrah, 21% Grenache, 21% Mourvedre, and 10% Petite Sirah), 2008 Sauvignon Blanc ($16.99; 50% fermented in French Oak Barrels and 50% in Stainless Steel tanks) and a 2007 Napa Valley Cabernet ($29.99). A portion of the proceeds from the sales KOZ Wine will go to the Starlight Children's Foundation, providing aid to seriously ill children and their families. KOZ Wine was launched with Whole Foods prior to Dave Koz’s highly-anticipated August 23 Smooth Jazz concert appearance at the Hollywood Bowl and was further promoted with in-store bottle signings at select branches of Whole Foods in Southern California. KOZ Wines are distributed by Kiwi.

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POUR OF THE MONTH

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Downtown Dining: CHAYA’S CHARISMA

Mary Thompson, Mixologist

Though Chaya’s roots wind back to a successful restaurant empire in Japan owned by the Tsunoda family dating back nearly 400 (!) years, Executive Chef Shigefumi Tachibe has been keeping that legacy alive and interesting in Los Angeles for more than a quarter century with a mix of Asian and European culinary flourishes that defy such pat labels as “fusion” and “Franco-Japonais.” The latest addition to Chaya’s L.A. family is Chaya Downtown, boasting a hip, urban flavor that separates it from its siblings as well the masterful Chef de Cuisine Kazuya Matsuoka. Its airy loft-style space across from the city library, meanwhile, is at once an escape from the city pulse and a celebration of it. Though there are many excellent happy hour options throughout Downtown, ace mixologist Mary Thompson and the rest of the Chaya team make sure that every hour, from the start of lunch to closing, is a happy hour. This is especially true during Summer, when the mercury rises as do offerings of fresh seafood, local produce and Thompson’s wellspring of creativity. Though Thompson’s bar prides itself on using the freshest ingredients for its cocktails, she also insists on having Finest Call on hand for the restaurant’s popular non-alcoholic “Quencher du Jour,” which keep Chaya’s guests refreshed and talking about what magic she and her bar will whip up next. “We have crafted Quenchers with Finest Call’s Peach, Apricot, Mango, Raspberry, Passion Fruit and Strawberry,” Thompson says. “While we sell about 30 Quenchers per day during the lunch rush, the fact that there are so many great flavors means that we can keep our guests ordering more as we can easily rotate the flavors and change up the recipes. The Finest Call mixers are also great to have 62

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on hand for non-alcoholic cocktails for guests under 21, non-drinkers and pregnant guests.” To make the Chaya Downtown Quencher du Jour, Thompson explains she will add an ounce of that week’s

Finest Call flavor to Chaya’s signature Arnold Palmer, made with house-made lemonade and Tropic Star Organic Tropical Iced Tea. While she also likes the fact that these special drinks gives Chaya’s servers the power to increase their checks (as Chaya charges about 50 cents more for the Quenchers than standard soft drinks), Finest Call also improves profitability in other ways without compromising on Chaya’s high standards. “Finest Call allows us to offer flavor and quality at the lowest cost, especially when you compare it to pre-packaged purees which don’t have as long of a shelf life,” Thompson adds. “However, it performs at a level that exceeds our expectations and the guests’.” Though Chaya Downtown offers L.A.’s hardest working residents a sexy happy hour from Monday through Saturday, its strongest draw is still the cheerful food menu and sushi bar. The ingredients are fresh, the textures and aromas are alluring and sauces and condiments are applied with a delightfully spare touch. It is Thompson’s goal to make sure all beverages that come from the bar follow suit, and thanks to Finest Call in part, they do. Chaya Downtown is located at: City Nat'l Plaza, 525 S. Flower St., Los Angeles, CA 90071 (213) 236-9577. I

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Blazzingg thee Blazing BourbonTrail b Trail B ouurbon r For 50 Years, Years, e Maker’ss Ma Maker’ Mark ark Has Defined America’ America rue “Spirit” Spirit America’ss T True By Alia Akk Akkam am

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ack in the he 1950s, when Bill Samuels, els, Jr., Jr., president of Kentucky’ Kentucky’s cky’s Maker’s Mark ffamed amed M aker’s M ark bbourbon, ourbon, was was in in middle middle school, school, he he only only missed one day of school. The reason? To To join his family ly in witnessing first Att tthe w itnessing tthe he pproduction roduction ooff ttheir heir fi rst bbarrel arrel ooff bbourbon. ourbon. A he ttime, ime, Maker’ Maker’ss Mark was simply a hobby of hiss father’ father’s; s; Bill Samuels had ad no idea that what h t started t t d outt as a mere pastime t time would ld grow to t become b me an American icon. n. country,” Jr.. notes. “When cou untry,” Samuels, Jr n Mom wasn’tt andd Dad started the company theree wasn’ cre-a bourbon b connoisseurship; we had to cre ate an environment first and then n stick a brand inside the culture. My father b fath her had tremendous trem mendous amounts of faith in bourbon b that tha hat tasted d good.” good.” d”

When one ask asks ks Samuels, Jr Jr.. why he Maker’ss Mark, thinks Maker’ Marrk, now part of the Beam re-Global Spirits & Wine Wine portfolio, has re category,, he mained on top of the bourbon category won’tt tell you it’s of any smart mar mar-won’ it’s because b “Wee manage to stay focused keting tricks. “W “Wee stay connect connect-andd disciplined,” di i li d ” he he says. “W ed with our friendss and fans and depend on message them to get the me essage out to the world.” message And, the messa age is clear: Maker’s Maker’s Mark, known for its squat, squuat, square bottles sealed in red wax (the creative creative packaging was the Samuels, qual-brainchild of Samue els, Jr.’s Jr.’s mother), is a qual product ity pro duct that has haas not wavered for half a century.. Made with century wiith yellow corn, red winwinter wheat, malted barley and water from a Maker’s spring-fed lake, lake Ma aker’s Mark is the epitome aker bourbon, of Kentucky bourb bon, America’s America’s only true Undoubtedly, spirit. Undoubtedl ly, it also helped pave the bourbons to-way for the other bo ourbons that comprise to day’ss now-popular B Bourbon T Trail. day’ rail.

Thanks T hanks To To The The Cocktail Cocktaill Samuels, muels, Jr Jr.. acknowledges that to today’s day’ y’s bour bour-bbon on ddrinker rinker iiss ““not not tthe he oold ld lline ine one one ooff tthe he The Maker’s 11930s 930s and and 1940s.” 1940s.” T he average average aage ge ooff M aker’s Mark M ark ccustomers ar ustomers has has dropped dropped by by 2255 yyears earrs aand nd hee says hasn’t h says tthe he ccompany ompany h asn’t ddone one aanything nything iin n

Maker’ss Mint Jule M Maker Julep ep Fresh mint Fresh 2 tbs. simple syrup 1-1/2 1-1/2 oz. Maker’s Mark Splash S plash of distilled water Powdered P owdered sugar

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Mix together simple syrup M m muddled with mint, Maker’s water.. M Mark and distilled water Fill F ill glass with crushed ice and an nd pour mixture over top. Sprinkle S prinkle top of ice with powdered po owdered sugar. sugar. Garnish w a mint sprig. with

After Prohibition, bourbon was met with resistance. Maker’s Maker’s Mark struggled to shed the spirit’s spirit’s unfairly unfairly tarnished reputation. wasn’tt until 1980, Wall It wasn’ 19880, when the W all Street Journal ran a piece on Bill Samuels, that the instant credibility.. “It really brand garnered inst tant credibility and bour-put us to work an nd moved premium bour bon in the fine metropolitan meetropolitan centers of the 64

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particular tto attract this demographic. phic. Instead, he thinks the brand has benefited ted greatly from the country’s cocktail renaissance. ssance. It has have h as aallowed llowed consumers who might h ave been been skeptical of bourbon in the past to sample mple it in new,, surprising ways. new Lou-Stephen Dennison of Z’s Fusion n in Lou isville, KY, KY, says s that Maker’s Mark is the resresttaurant’s aurant’s top top seller at the bar. “There here are are a lot of bourbons that are a high proof and high aaggression ggression aand nd lack lack the the light light sweetness sweetness of of Maker’s Mark,” M aker’s M ark,” he he says. says. “You “You ddon’t on’t eeven ven have have Maker’s Mark ttoo aadd dd ssimple imple ssyrup.” yrup.” M aker’s M ark aalso lso llends ends iitself tself well well to to cocktails cocktails made made at at Z’s, Z’s, including including a Manhattan” which Maker’s ““Tobacco Tobacco M anhattan” w hich iinfuses nfuses M akker’s Mark with M ark w ith black black cherry cherry pipe pipe tobacco. tobacco. “It “It has has the character of a Manhattan, nhattan, but because we Maker’ss Mark, wee get that natural bit of use Maker’ ssweetness weetness you you gget et ffrom rom vermouth”, vermouth”, Dennison Dennison ppoints out.

The T he Future Future Of Of M aker’s M ark Maker’s Mark Given the rising ng popularity of MakMaker’s er’s Mark at the bar, bar, one might think a logical ogical next step for the brand would ould be diversifying its portfolio. portfolio. Yet Yet Samuels, Samuels, Jr. Jr. disagrees: disagrees: “Ninety-five ve percent of the reason Maker’s Maker’s Mark Mark has has managed managed to to be be successful successful is is that that we we haven’t haven’t gotten gotten into into vodka We vodka and line extensions. e We listen to our our customers. customers. Our Our little little niche niche is is tight tight and and we’re we’re very very fortunate fortunate these these folks folks like like Maker’s Maker’s Mark”. Q