Cheers April/May 2018

Cheers is dedicated to delivering hospitality professionals the information, insights and data necessary to drive their beverage business by covering trends and innovations in operations, merchandising, service and training.

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Page 31 of 59 32 • April/May 2018 "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 [barbecue cooker] Big Green EGG in 2017 for a "Whiskey & EGGs" roadshow using meat, smoke and whiskey, inviting event-goers to discover Knob Creek." Maker's Mark bolstered its off-premise presence on shelves with the addition of locally relevant cross-merchandising displays, with partners including Rachel's Ginger Beer in Seattle and Root 23 in Columbus, OH. Fellow bourbon Woodford Reserve was a Fast Track brand again this year, joining its line extensions Reserve Rye and Reserve on the list (both were Rising Stars). The brand highlighted gifting periods off-premise, including Father's Day and Christmas, offering engraving programs, personalized labels and gifts with purchase. William Grant's Monkey Shoulder used the rise of blended whisky to appeal directly to bartenders. "More bartenders are aware of the versatility and range of blended malts and what they can offer in a cocktail," says brand manager RJ Whittington. "The growth of the greater whiskey category in the U.S. is contributing to Spirits Established Growth Brands (000 9-liter cases) '16-'17 Brand Supplier 2014 2015 2016 2017p % Change Crown Royal Diageo 4,275 4,850 5,305 5,755 8.5% New Amsterdam Vodka E&J Gallo Winery 2,880 4,115 5,092 5,383 5.7% Jim Beam Beam Suntory 4,192 4,318 4,560 4,962 8.8% Fireball Sazerac 3,895 4,375 4,580 4,876 6.5% Svedka Constellation Brands 4,080 4,200 4,320 4,400 1.9% Hennessy Moet Hennessy 2,575 3,010 3,670 4,059 10.6% Jameson Pernod Ricard USA 2,042 2,436 2,833 3,182 12.3% Patron Patron Spirits Co. 2,150 2,186 2,474 2,600 5.1% Sauza Beam Suntory 2,089 2,095 2,247 2,414 7.4% Maker's Mark Beam Suntory 1,337 1,428 1,502 1,685 12.2% Johnnie Walker Red Diageo 712 736 820 827 0.9% Juarez Luxco 684 688 695 717 3.2% Jack Daniel's Tennessee Honey Brown-Forman Corp. 670 679 686 709 3.4% Wild Turkey Campari America 590 610 636 658 3.5% El Jimador Brown-Forman Corp. 379 441 516 572 10.9% Buchanan Diageo 395 452 482 541 12.2% Knob Creek Beam Suntory 290 358 380 420 10.5% Source: The Beverage Information & Insights Group (p) Preliminary. 2018 Growth Brands Spirits 2018 Growth Brands Spirits 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 vice president of tequila and innovation, Malini Patel, about the brand's impressive growth streak. CHEERS: 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. CHEERS: 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% agave offerings, tapping into current trends. Our pitcher-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. Q&A favorite for classic whiskey cocktails like the Old '16-'17 Brand Supplier 2014 2015 2016 2017p % Change Crown Royal Diageo 4,275 4,850 5,305 5,755 8.5%

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