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 20 2018 GROWTH BRANDS - SPIRITS SPIRITS COMEBACK BRANDS (000 9-liter cases) '16-'17 Brand Supplier 2014 2015 2016 2017p % Change Jack Daniel's Country Cocktails Brown-Forman 805 869 854 985 15.3% Remy Martin Remy Cointreau USA 626 750 815 877 7.6% Grand Marnier Campari America 472 488 488 516 5.7% Buzzballz Buzzballz LLC 279 196 189 216 14.3% Source: The Beverage Information & Insights Group (p) Preliminary. "The biggest news for us in 2017 was our offi cial partnership with the NBA," says Brand Director Casey Nelson. "We deployed a wide range of assets and tools to activate at retail – truck wraps, display programs, trade incentives and consumer activations to engage friends of Jack and fans of the NBA." The brand also launched a global campaign called "Friendly Introduction," which shows how JD Tennessee Honey recruits new consumers to the Jack Daniel's brand. Since it launched in 2011, more than 100 other fl avored whiskeys have entered the now-crowded marketplace. Sazerac's Fireball continued its meteoric rise in 2017, growing 6.5% to nearly 4.9 million cases sold. Senior Marketing Director Rebecca Henry at- tributes the brand's success to the support and dedication of its loyal fans, leading Fireball pro- motions to be centered around making them happy and giving them what they ask for. Now a Campari America brand, Grand Mar- nier was a Comeback winner once again due to a 5.7% growth to more than 500,000 cases in 2017. "Since the brand is 51% Cognac, we're benefi ting from a halo effect of the booming category," says VP of Marketing Mela- nie Batchelor. "Secondly, we're benefi ting from the resurgence of classic cocktails. Grand Marnier has a historic place in many well-known cocktails from the Moonwalker to the Sidecar to the Margarita. We're excited to help a new generation of bartenders discover the depth and complexity that the brand can bring to any crafted cocktail." In 2017, Grand Marnier's focus was on-prem- ise, including reconnecting with bartenders, re- gaining menu placements and creating bar tools for making classic cocktails. "We also worked on improving our brand ed- ucation materials and cocktail materials, which are also available on social media," Batchelor adds. "We have a great opportunity to drive the message that Grand Marnier is 51% Co- gnac and 49% bitter orange liqueur, which is a unique base that delivers depth and fl avor complexity to any cocktail." BD TITO'S GROWTH STREAK CONTINUES Tito's Handmade Vodka increased its sales to nearly 5.8 million cases last year, another double-digit growth that saw the brand more than double its sales in 2015 and earned it an Established Growth Brand award. We spoke to VP of Brand Marketing Nicole Portwood about the company's recent success. STATEWAYS: WHAT INDUSTRY TRENDS ARE MOST IMPACTING TITO'S RIGHT NOW? Nicole Portwood: Digital has significantly impacted us in the past year. When Tito star ted the distillery, it was a person-to-per- son, word-of-mouth brand. Now we have a direct line to our customers 24 hours a day. It's allowed us to connect with fans all over the world, and we think of it as word-of-mouth on a much larger scale. E-commerce has also changed both our industry and the overall spirits market. We partner with Drizly, which brings us closer to the consumer point of purchase than ever before and allows us unprecedented access to purchasing data. SW: WHAT ON- AND OFF-PREMISE PROMOTIONS AND ACTIVATIONS IN 2017 LED TO YOUR SUCCESS? NP: We're one of those odd brands that did it backwards – star t- ing as an off-premise brand and building a very strong business there. We began showing up in on-premise because of a belief in our product by some amazing bar tenders, and requests from our loyal fans. We've cer tainly put resources behind growing the on-premise, especially in the past few years. Our off-premise plans mirror our overall marketing strategy – connecting with fans and giving back to communities.

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