Stateways March April 2018

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays | | March/April 2018 16 2018 GROWTH BRANDS - SPIRITS SPIRITS FAST TRACK BRANDS (000 9-liter cases) '16/'17 Brand Supplier 2014 2015 2016 2017p % Change Tito's Handmade Vodka Fifth Generation 2200 2885 4169 5755 38.0% Bulleit Diageo 635 810 1050 1164 10.9% Woodford Reserve Brown-Forman 276 341 401 469 17.0% Don Julio Diageo 260 300 392 450 14.8% Hendrick's William Grant & Sons 246 288 322 355 10.2% Espolon Tequila Campari America 112 145 200 295 47.5% Milagro William Grant & Sons 164 187 218 242 11.0% Tullamore Dew William Grant & Sons 142 178 207 236 14.0% Olmeca Altos Pernod Ricard USA 76 125 160 207 29.4% Herradura Brown-Forman 127 140 158 179 13.3% D'Usse Bacardi USA 52 59 86 170 97.7% Reyka William Grant & Sons 60 82 100 115 15.0% Rebel Yell Luxco 54 65 97 110 13.4% Exotico Luxco 11 26 61 106 73.8% Western Son Vodka Western Son Distillery 11 17 52 101 94.2% Source: The Beverage Information & Insights Group. (p) Preliminary stadiums. That sports tie-in will continue in 2018. "We'll continue to lean into programming that brings to life our brand purpose and focuses on generosity," Sibley says. "From iconic Super Bowl activations to the historic Indianapolis Motor Speedway, we want to show up at key moments in a big way." Three American Whiskeys from Beam Sutory won Estab- lished Growth Brands Awards this year – Jim Beam, Maker's Mark and Knob Creek. "We continue to enjoy the Bourbon Boom of recent years and feel bullish on the growth of the category for years to come," says VP of Whiskey Rob Mason. "There remains strong interest in premium offerings, including LTOs, as consumers enjoy ex- ploring the category and discovering new and unique production styles and taste profi les." To reach the on-premise, Jim Beam continued its partnership with baseball teams in multiple markets, engaging baseball fans at stadiums and sports bars. Jim Beam Black also worked with top barbers in a multi-city barbershop experience. "Knob Creek continued to stand out as a bartender favorite for classic whiskey cocktails like the Old Fashioned," Mason says. "We also expanded our partnership with Big Green EGG in 2017 for a "Whiskey & EGGs" roadshow using meat, smoke and whiskey, inviting event-goers to discover Knob Creek." Off-Premise, Maker's SAUZA DRIVES PREMIUM GROWTH Hall of Fame brand Sauza Tequila was named an Established Growth Brand for its 717,000 cases sold and 3.2% growth over 2016. We recently spoke to Beam Suntory's VP of Tequila and Innovation, Malini Patel, about the brand's impressive growth streak. STATEWAYS: WHAT INDUSTRY TRENDS ARE MOST IMPACTING SAUZA RIGHT NOW? Malini Patel: Consumers are trading up to 100% Agave tequilas like Sauza Signature Blue and experimenting with the spirit's versatility when it comes to cocktails. The rise of communal cocktail occasions in the U.S. has also been a contributing factor as it pertains to our success. The occasions when our consumers are enjoying tequila are more often group-led, consisting of a social gathering among friends. SW: WHAT ON- AND OFF-PREMISE ACTIVATIONS MOST LED TO THE BRAND'S SUCCESS IN 2017? MP: Tequila has grown to become a preferred spirit for mixologists, so we're seeing innovative new margarita recipes that incorporate premium spirits. In 2017, we continued to drive growth and awareness for 100 percent agave offerings, tapping into current trends. Our pitch- er-style margarita recipes encouraged enjoying tequila with friends, including a retail program to celebrate Cinco de Mayo and properly kick off summer. The retail display included Sauza alongside other tequila variants and must-have cocktail cordials, offered at consumer-friendly price points and providing a one-stop shop for margarita needs.

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