Liquor news - and why eastern canda may end up scotchless

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News

Sourpuss’s new competitor

Eastern Canada may lose scotch Popular single-malt scotch could soon be unavailable in Eastern Canada as a result of booming demand for premium spirits in Russia and China. Liquor corporations are warning they could run out of such iconic scotch brands as Talisker, Oban, Lagavulin Distiller’s edition and Dalwhinnie, with little new product expected to come in. New Brunswick is facing shortages of many of the same whiskies, as well as the labels Brora and Clynelish. Prince Edward Island has enough Talisker and Oban to last until spring, provided it isn’t bombarded with requests from the rest of Eastern Canada. Liquor corporation officials in Nova Scotia and New Brunswick believe they are suffering from Diageo’s desire to divert stock to more lucrative markets overseas. Diageo spokesman Bob Paling acknowledged “there will be some markets that suffer” since these products are manufactured in limited quantities, making it hard to meet the demand. He told the Globe and Mail that China’s and Russia’s robust economy has prompted new thinking in the premium spirits category but denied there is a direct link between scotch shortages in the Atlantic provinces and these booming markets. Paling suggests what the Eastern Canadian markets are seeing is the normal ebb and flow of the business.

$2

million Of the $2 million spent on alcohol in Alberta, $1.6 million is purchased at retail outlets

A growing category Built on the long-standing success of the brand in the U.K., Gaymers Original Cider has come to Canada. After performing No. 1 in taste tests against competitors such as Strongbow, Vincor Canada has released Gaymers Original Cider in Ontario’s LCBO. It’s also available in British Columbia and Alberta and will be released nationwide next year. Vincor Canada says it felt it was the right time to launch this product given the positive cider trends in the Canadian marketplace. National cider volume is growing at 12.4 per cent year over year. In Ontario, total cider is growing at 28.8 per cent, while in Western Canada total cider growth is 10 per cent year over year. So far the reaction from licensees has been positive as consumers demand a Strongbow alternative. Gaymers is marketed to beer drinkers who like to experiment, consumers who are interested in a more natural product, men’s and women’s league soccer teams and pub-goers.

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Diamond Estates has just released two products: Mickey Finn Raspberry and Mickey Finn Blueberry and Pomegranate liquors. Made with 100 per cent natural fruit juices and infused with neutral spirit, they are premium quality products. According to Diamond Estates, raspberry is one of the most popular new flavours in the market, while Blueberry and Pomegranate are an excellent source of antioxidants for the health-conscious. Launched in Ontario in June, they will be rolled out across Canada through 2009. According to Diamond Estates, they compete directly with Sour Puss and Sourz products Mickey Finn can be used as a shooter, neat over ice or mixed to create a cocktail. A 750 ml bottle of Mickey Finn Raspberry or Mickey Finn Blueberry and Pomegranate retails for $21.95 but can be purchased by licensees for $18.72 in Ontario.

Diageo drops lower-end scotch Even though Eastern Canada is finding it hard to get enough premium single malt scotches, Quebec is dropping low end scotch. Johnnie Walker Red, Blue, Gold and Black Labels could go up in price by 15 to 20 per cent. “People who know their scotch know that there is a limited supply of single malt,” Bob Paling, Diageo’s vice-president of corporate relations told the Montreal Gazette. “Good scotch has been on allocation for years. The world price for scotch is going up around the world, not just in Canada.” The SAQ is negotiating with Diageo to keep other popular brands in stock, but says price hikes seem inevitable. “It is hard,” SAQ representative Linda Bouchard told the Montreal Gazette. “The bottom line is the consumer. We want consumers to get value for their money. We don’t want to have to sell inferior scotch for more than what it is really worth.”


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