NABCA ’ S ADVISORY COMMITTEE
BROOKE RODRIGUEZ
General Manager , Commercial Operations , Control States Bacardi
POWERS OF THE PAST AND FORCES OF THE FUTURE In the past few years of near-constant change , we have seen companies adapt , innovate and pivot amidst an uneasy landscape . As we at Bacardi have a solid strategy and approach to keep our business growing , sometimes turning to the past and celebrating historic achievements can be a springboard to accelerate forward . With more than 160 years to look back on for inspiration , Bacardi prides itself on taking into account what it has gone through , learned as a company , and using that to advance forward .
When I first started my career at Bacardi , 30 years ago , we were known as “ that rum company .” Throughout our timeline , we have grown exponentially within that category , becoming a leader in the rum space . But that was just the beginning of our ambition . We saw opportunities in other spirits categories that were on the cusp of flourishing , and utilized trend knowledge to find the next industry buzz , growing brands into global icons in their own right . In fact , this year marks several milestone anniversaries for when we welcomed some of the most iconic brands into the portfolio . It was
25 years ago this year that Bombay Sapphire and Dewar ’ s Blended Scotch whisky joined our business , and 10 since St-Germain elderflower liqueur joined the team . And we can ’ t forget who opened the doors for us to become a business beyond rum : Martini & Rossi , whom we joined forces with back in 1998 . This Italian icon will be celebrating its 160th anniversary this summer . We have a lot to celebrate this year !
As a company , we have constantly played in the categories of the future and we have always kept an eye out for what is new in the industry . Each year , the Bacardi Cocktail Trends Report gathers data on the anticipated trends of the year , determining what people are drinking , how they are drinking , which categories will be the next star of the industry , and keeping our finger on the pulse of the category . If we find there isn ’ t something available that meets these needs , we are bold , innovate it , and fill that gap .
With a myriad powerhouse of brands under our belt , Bacardi is continuing the acquisition momentum of its past by investing in the categories and trends of the future . In more recent history , we ’ ve expanded with acquiring Angel ’ s Envy and increased our investment in Teeling – making moves into the bourbon category of the North American whiskey sector and Irish whiskey space – two of the fastest growing categories in spirits today .
I am honored to have been with the company throughout all these years and to see it grow . I still remember the days when people used to say , “ Bacardi , you ’ re just a one-legged stool .” We now have a full chair and more .
SEAN NOBLE
General Sales Manager Control States Campari America
There is a lot to celebrate in our distilled spirits industry . Strong consumer demand for premium spirits in 2022 led to considerable market share gains for the U . S . spirits industry for the 12th consecutive year . The three main factors driving this highend demand were the gradual post-pandemic reopening of bars and restaurants , a booming premium tequila market and consumers upgrading to super-premium spirits for at-home consumption .
During the height of the Covid crisis , consumers were traveling less , taking fewer vacations and eating out less frequently than in years prior , so they were more ready to spend a little more on super-premium alcohol . These quarantined individuals had grown a desire to recreate the unique restaurant and bar experiences they were missing while stuck at home . When they stocked their bars with various spirits categories to experiment with new drink ideas and make creative cocktails at home , there was a resurgence in home bartending .
The eco-conscious trend goes hand in hand with premiumization . Even younger demographics are willing to prioritize premiumization and eco-conscious characteristics . Today ’ s consumers are becoming more vocal about these sustainability issues , and are holding companies responsible for their processes . Consumers also
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want to feel connected to brands through shared values . Increasingly , this means focusing on DEI , which means that companies prioritize representation , especially in leadership positions .
Overall spirits sales have also increased in the U . S . beverage alcohol market , gaining 1.7 share points to 41 % in 2021 . The ready to drink segment was the fastest-growing portion of the market . It is expected to grow by an additional 8 % by 2025 . In 2021 , RTD beverages were trying to appeal to the 25 % of alcohol drinkers looking for low-carb and low / no-sugar options . However , more than this approach will be needed to maintain a competitive edge moving into 2023 . Millennials are now looking for RTDs that provide more flavor without sugar . These Gen-Yers also tend to be early adopters of trends , making it even more critical to address this demand . Marketing labels like “ Made with Natural Ingredients , “ Unique Flavor ,” and “ Refreshing Flavor ” topped the list as the most effective in appealing to consumers and encouraging purchases . And looking forward , one of the alcohol trends in 2023 anticipates more consumers will turn to spirits over beer as people look for an experience that introduces them to new cocktails .
Another 2023 alcohol industry trend expected to take root is a revival in interest in classic RTD cocktails , but this time with a makeover . Herbs and botanical flavors have taken over the industry , and RTD brands are expected to incorporate them into their classic cocktail recipes to provide a fun twist . These herbal and botanical flavors have created a space for creativity even in age-old cocktail recipes .
It is an exciting time to be in the spirits industry right now , so buckle your seat belts and enjoy this ride .
StateWays | www . stateways . com | Summer 2023