The Spirits Business, October 2014 edition by Union Press

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THE SPIRITS

BUSINESS ISSUE 56 • OCTOBER 2014

ISSUE 56 • OCTOBER 2014

SPIRITED AWAY The sky’s the limit for luxury liquor in travel retail

DUTY FREE DELIGHTS The Travel Retail Masters 2014

WHITE KNIGHTS The Vodka Masters 2014

Exclusive Media Partner

DIAGEO GTME INTERVIEW • TEQUILA • LATIN AMERICA • TFWA GUIDE • LONDON BARS

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EDITORIAL COMMENT Nail the luxury shopping experience to catch the eye of affluent travellers

AS A child the excitement and anticipation of going on a family holiday abroad was always preceded by the rare thrill of experiencing the airport environment. For the Paskin sisters, there was no greater pleasure than zooming along on the “walky thing” (travelator) or browsing the shops for a new double cassette album or Gameboy game to pass the time on the long flight. Right up until recently, even as an adult, the airport experience was a novelty for me, but I’m sure I’m not alone in saying that frequent flying all over the world on business has somewhat dimmed the sparkle of its appeal. While the majority of passengers today are infrequent travellers, still wide-eyed and full of excitement, it’s the smaller but rapidly expanding number of affluent consumers from emerging markets who fly regularly that are really exciting spirits brands in travel retail. The number of international travellers calling Asia home grew by 7% in 2013, while those from the Middle East were up 11%, and it’s this crowd that are expected to really drive the category over the next few years. But as apathy descends among the weary jet setters, the quandary is how to reignite their enthusiasm enough to capture their attention and encourage them to spend.

Of course travel retail exclusive products and disruptive activations help, but the key to success it would seem stems from the notion of a luxury shopping experience. Diageo’s head of GTME, Doug Bagley, sees “luxury as the future for spirits in travel retail” across both white and brown spirits, and explains how his group’s focus on pop-ups and permanent Johnnie Walker experiences are a vital element of its strategy to target the emerging wealthy consumer [see page 18]. Diageo is already in a prime position with Johnnie Walker, it being the largest spirits brand in travel retail and Scotch accounting for roughly 50% of liquor sales, but what of the other categories? Bagley identifies growth across the spectrum, but for a detailed review of each spirit category’s prospects in the market, see page 24. Meanwhile, ahead of TFWA World Exhibition in Cannes – one of the most luxurious destinations on the planet – we take a look at what travel retail exclusives and luxury products are being previewed at the show this year [page 35].

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• Managing Editor Becky Paskin

• Art Director Alan MacKenzie-Morris

• News and Web Editor Amy Hopkins

• Director of Sales Bert Grant

• Staff Writer Melita Kiely

• Marketing Director David Hennelly

• Sub-Editor Neal Baker

• Advertising Manager Marcus Clark

• Contributors Richard Woodard, Tom Bruce-Gardyne,

• Sales Executive Charissa Shearer

Tom Aske, BarChick

• Research & Events Sheila Crisp

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• Deputy Chairman David Rose

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• Associate Publisher & Events Director Daisy Jones Published by: The Drinks Business, Unit 122, 30 Great Guildford Street, London SE1 0HS Tel: +44 (0) 20 7803 2420 Fax: +44 (0) 20 7803 2421 E-mail: info@thespiritsbusiness.com

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October 2014

Issue 56 24

10 The Big Story The Scotch industry breathed a sigh of relief as Scotland voted no to independence, but with greater devolved powers now being promised, what does the future hold for Scottish whisky?

12 Business News Whisky liqueur Drambuie finds a new home with William Grant; US craft distillers are rapped over their labelling; and Brown-Forman invests heavily in its oldest Bourbon

16 Marketing Matters The Caipirinha’s true colours are discovered under the microscope; Bacardi whisks fans off to Bermuda for its biggest ever party; and Stoli Vodka unveils its latest individual marketing campaign

18 The Big Interview As the owner of the leading spirits brand in travel retail, Diageo’s head of GTME, Doug Bagley, is keeping his cards close to his chest, but predicts a vibrant future for the group’s luxury portfolio in the sector

24 Travel Retail Report With growing global passenger numbers driven by affluent travellers from the Middle East, Eastern Europe and Asia, political tensions in the regions are threatening to hinder growth in the travel retail environment

35 TFWA Cannes Preview Whatever your reason for visiting TFWA in Cannes this month, there are plenty of new and exciting spirits products on show to keep you busy

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CONTENTS 74 xx

xx 63

47 Travel Retail Masters In one of the most competitive retail environments on the planet, spirits brands must do all they can to stand out in terms of design, packaging and most importantly, taste. The numerous medal winners in The Travel Retail Masters 2014 prove they do just that

57 Travel Retail Bulletin David Beckham makes a trip to Singapore Changi to unveil Haig Club in duty free; Bacardi Martini and Felipe Massa give travellers a taste of life in the fast lane; while Jack Daniel’s gives away real, yep, real gold bars with its latest whiskey innovation

63 The Vodka Masters Is vodka eschewing its chameleon, crowd-pleasing reputation in favour of a more robust, complex character with bags of flavour? Absolutely, if the entries in this year’s Vodka Masters are anything to go by

74 Latin America Local cachaça and rum volumes are declining as the region’s emerging middle class increasingly favours international whisky and vodka, although there is some hope at the premium end for domestic spirits

78 Tequila The drawn-out agave shortage is putting pressure on producers in Mexico, with many forced to close shop. As new demand from China starts to roll in, can the Tequila industry cope with the bittersweet future in front of them?

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CONTENTS THE BACK

BAR

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82 Cachaça Volumes may be declining thanks to a newfound local taste for imported spirits, but with cachaça reinventing itself at the top end, the category’s future is still bright

84 Brand Biography For 200 years Jack Daniel’s has carved itself a reputation as an iconic, all-American brand, meandering its way through Prohibition, embracing today’s flavoured trend with gusto and seeping its way into US popular culture along the way

86 Brands Bulletin The Havana Club creates a range of complementary bitters; Beam Suntory gets behind peated whisky; and work gets started on the new Walsh Whiskey Distillery in Ireland

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96 Members’ Club Updates from the IBA xx-xx Xxxx Xxxxxxx xxxxx Xxxxxxxx xxxxxxx xxxxxx xxxxxx.

100 IBA Cocktail Championships Some 500 bartenders and guests from around the world descended on Cape Town, South Africa this month as xx-xx Xxxx Xxxxxxx xxxxx the IBA hosted its 2014 World Cocktail Championship Xxxxxxxx xxxxxxx xxxxxx xxxxxx.

104 Cocktail Bulletin Levitating cocktails; healthy, “superfood” drinks and Mr Lyan’s Dandelyan

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110 Foraged Cocktails How to mix with natural, organic ingredients found on your doorstep

xx-xx Xxxx Xxxxxxx xxxxx 112 Debate Should you allow off-piste menu ordering Xxxxxxxx xxxxxxx xxxxxx xxxxxx.

in your bar?

114 The xx-xx XxxxSwizzle XxxxxxxMasters xxxxx Round nine: Tequila, Salt of thexxxxxxx Earth xxxxxx xxxxxx. Xxxxxxxx

118 BarChick Uncovers… London 120 A Drink With… Eugenio Litta Modignani, Tovaritch!

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SPONSORED PROFILE

The new Prohibido barrel ageing building features the biggest brick dome in the world

Forbidden for years... but never forgotten Hacienda Corralejo has resurrected Mexicoâ&#x20AC;&#x2122;s sweet-wine-barrel-aged Habanerorum, banned by the Spanish during colonial rule for fear it would threaten brandy sales, in the form of premium rum El Ron Prohibido

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SPONSORED PROFILE

WITH A worldwide reputation for Tequila, Hacienda Corralejo has turned its hand to rum with a new product. Drawing on its Mexican drinks heritage, the resulting product is the new spirit ‘El Ron Prohibido’. By 1700, with Spanish rule in Central and South America firmly established, trade flowed to and from Spain and the New World. One product coming in from Spain was a sweet wine that proved very popular. Once the barrels were empty they were often refilled with a Mexican rum known as Chinguirito and shipped back to Spain – the drink also came to be known as Habanero as the Cuban capital, Havana, was the last port of call before setting off across the Atlantic ocean. On the journey the rum picked up more wood tannins and developed more complex flavours from the sweet wine that had been in the barrel before. Just as the wine was popular in Mexico so the rum became enormously popular in Spain – so much so that brandy producers there became increasingly worried that it would threaten sales of their own products. As such, the King of Spain, Philip V, prohibited the production of rum in the New World. A proclamation declared: “Only communion wine, mezcal, aguardiente and white pulque are permitted to be manufactured in Mexico City and the surrounding area.

sentence heavy fines and punishments to those who consume it. Spanish citizens who drink this beverage can lose property rights and be exiled.” Those who continued to flout the law were also threatened with the severe punishment of excommunication from the church as well as a whipping in public. Clearly, however, the production of

something so popular could never be stopped entirely. Fortunately the ban was lifted in 1796, making it possible to drink Mexican rum without imperilling one’s immortal soul or suffering more temporal punishment. The rum is produced in a solera system, where it is aged for at least 12 years. Because of the way the solera system works, the resulting rum is a complex blend of different ages and wood types. The blend is then allowed to marry in barrels that have been used in the production of sweet wine. The launch of this premium rum comes at a very interesting time for the rum category as a whole – and for Mexico in particular, which is now one of Latin America’s leading rum markets. Euromonitor International has predicted a global rise in rum volumes of 17% between 2011 and 2016, pushing total volume up to 1.7 billion litres. Furthermore, rum is becoming increasingly sophisticated and a growing demand has emerged for dark and golden rums. Important too is heritage and a story, which El Ron Prohibido certainly has. With global markets expanding, perhaps El Ron Prohibido will find as many new passionate consumers in the 21st century as it did in the 18th century.

Advertisement Promotion

“The beverage known as Chinguirito, or Habanero, is prohibited due to moral and health issues. Consumers of this beverage have cause widespread disastrous damage to the society while intoxicated. The court has decided to ban this beverage, and

‘The ban was lifted in 1796, making it possible to drink Mexican rum without imperilling one’s immortal soul or suffering more temporal punishment’

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What now for the nay-sayers? Scotch whisky producers may have breathed a sigh of relief when Scottish citizens voted to remain part of the UK, but the industry’s political and economic battle wages on, writes Amy Hopkins THE VOTES have been counted, the decision is final; Scotland has chosen to remain part of the United Kingdom in its historic referendum on independence, setting the minds of business leaders – including those in the Scotch whisky industry – at ease. On 18 September 55% of Scots returned a “no” vote, a decision David Frost, chief executive of the Scotch Whisky Association (SWA), described as bringing “stability” to the sector. As not only Scotland’s biggest export in the food and drink sector, but also an ingrained symbol of national identity, Scotch whisky has found itself at the forefront of the debate surrounding Scottish independence since the referendum was granted last year. Echoing other industries, Scotch producers expressed concern over three main areas of business if Scotland became an independent country, namely:

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currency; access to overseas embassies and European Union membership. According to the SWA, any change to Scotland’s currency would make Scotch whisky difficult to price and so could affect “exports, management of supply chains, pricing, and competitiveness”. It was also feared the Scottish government’s pledge to create 70 to 90 embassies would hinder the overseas representation of Scotch, which is exported to some 200 countries. However, the biggest concern for an industry so dependent on exports as Scotch was what would have been an inevitable disruption of Scotland’s membership of the EU. “We were very worried about protection of Scotch whisky’s Geographical Indication (GI) if Scotland lost its EU membership, and we were concerned about losing the role the EU plays in trade negotiations,” says Rosemary Gallagher, communications

manager for the SWA. The sentiment was similarly felt over the other side of the channel, according to Paul Skehan, director general of trade body Spirits Europe. “In Europe, we also depend on the work of Scotch whisky because it is an industry with a lot of muscle and it can act on behalf of other spirits in Europe.” He added that spirits are “very dependent on other markets for growth” and therefore must “achieve good trade negotiations with other countries”. “In this sense, the more countries that stand together in the EU, the stronger these deals will be,” he said. “Once a split has occurred, there is a big chasm in negotiating power.” Such concerns were felt keenly throughout the industry and while many large distillers opted to remain politically impartial, there were a few that chose to make their voices

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THE BIG STORY

heard. William Grant, producer of The Balvenie and Glenfiddich, was one such group, making its political allegiance known by donating a “substantial sum” of money to the pro-unity campaign, Better Together. Shortly afterwards a number of producers signed an open letter calling for a “no” vote, stating a business case for independence had not been made. Among the signatories were Ian Curle, CEO of Edrington, Peter Gordon, chairman of William Grant & Sons, Fraser Thornton, managing director of Burn Stewart Distillers, and Gavin Hewitt, former CEO of the SWA. Hewitt had also found himself in something of a scuffle with the Scottish National Party, claiming its Westminster leader Angus Robertson MP had attempted to silence the SWA in the independence debate, an allegation Robertson denied. In a bid to ease industry fears, SNP leader Alex Salmond said that while some leading distillers were “big enough to look after themselves”, in the case of a “yes” vote, sales from smaller distillers could in fact be boosted by the increased international spotlight placed on Scotland. Spiros Malandrakis, senior alcoholic drinks analyst at Euromonitor International, suggests this is not an idea to be sniffed at. Speaking before the votes were cast, he said: “What I have missed from the discussion so far is

something not particularly easy to quantify: ‘brand Scotland’. The industry could use this new-found spotlight to its advantage because this is a topic the whole world is talking about.” This opportunity for growth, however, still remains pertinent as Scotland is poised to receive further devolved powers from

The referendum has created an opportunity for Scotch to shape the future like never before

Westminster. What’s more, with 45% of the Scottish public voting in favour of radical change, both the UK and Scottish governments are under more pressure than ever to offer political, economic and social reform. Here, weighty industries such as Scotch whisky have a prime opportunity to get involved in important discussions.

According to Gallagher, both the referendum and resulting devolution debate has “put the spotlight on Scotland and shows that people do want change, so it’s a good time for industries such as Scotch whisky to sit down with governments and say what would benefit them”. Hot off the mark, the SWA joined other business leaders in issuing a joint statement calling for a focus on “driving economic growth” in future devolution settlements. “With the Scottish parliament set to become a more powerful force in our economy, the touchstones of the new devolution settlement must be boosting business and growth,” the statement read. The letter also outlined the need for more jobs, increased investment, the prioritisation of exports and better taxation policies. For Scotch whisky in particular, Gallagher notes the importance of “campaigning for better business conditions and systems of taxation”, government support for exports (which have declined 11% so far this year), better legal protection for the GI status of Scotch abroad, and scrapping minimum pricing of alcohol in Scotland. More than simply retaining the status quo, it seems the referendum has created an unprecedented opportunity for Scotch whisky producers to shape the future of their industry like never before. sb

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BUSINESS NEWS

Grant takes over Drambuie WILLIAM GRANT & Sons has acquired iconic Scottish whisky liqueur Drambuie for an undisclosed sum, giving the group a presence in the flavoured whisky category. The UK drinks group and producer of Glenfiddich Scotch whisky described the acquisition of the brand, which has been under family ownership for the past 100 years, as a “very natural addition” to its portfolio. While the company has not officially revealed how much it offered to buy Drambuie, analysts estimate it is worth around £100 million. “We have a passion and a reputation for nurturing and building brands,” said William Grant & Sons’ CEO Stella David. “Drambuie is a natural fit for our portfolio, it has a very rich history and a great story to tell and we are delighted to be in a position to re-engage with existing drinkers and to connect the brand with an entirely new generation of consumers.” According to Jeremy Cunnington, senior analyst at Euromonitor International, this acquisition “makes sense” for William Grant & Sons as it allows the group to play in the burgeoning flavoured whisky category but still protect its existing Scotch portfolio. “Drambuie gives William Grant the chance to move into flavoured whiskies and strengthen its position in liqueurs,” he said. “This is also great for the group as it allows it to avoid damaging its existing portfolio. Drambuie has a lot of heritage and can be seen as part of the flavoured whisky category.” Cunnington also claimed the acquisition was a natural fit as both William Grant and Drambuie share the same key markets of the US and UK, while Drambuie will be given access to William Grant’s “superior distribution” network. Drambuie, a blend of Scotch whisky, spices and honey, dates back to 1745 and became famous in the 1950s as the main ingredient in the Rusty Nail cocktail.

Scotch suffers export setback THE VALUE of Scotch whisky exports declined further in the first half of 2014, down 11% to £1.77 billion as the Chinese and Latin American markets continue to contract. Figures released by the Scotch Whisky Association (SWA) reveal that the industry suffered from “economic headwinds and uncertainty” in the first six months of this year, hitting sales in Singapore, the US, Brazil and Mexico. In terms of volume, Scotch also declined, albeit to a lesser degree, from 563m bottles in the first half of 2013 to 532m bottles in the first half of 2014 (5.5%). David Frost, CEO of the SWA, expressed his confidence in the longterm prospects for Scotch whisky, but emphasised the industry’s need for government support. “We are confident that Scotch whisky will continue to grow in the long term as markets stabilise and new ones, such as emerging economies across Africa, open up,” he said. “However, it is clear that in the short run there are economic headwinds affecting exports. “The latest figures also act as a reminder that the success of Scotch whisky can’t be taken for granted. We need support from government to beat down trade barriers and help us access new markets overseas.”

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NEWS IN BRIEF A RECORD 26 craft distilleries are expected to open in the UK before the end of the year – more than the combined total of new openings over the past five years. According to figures compiled by the London Craft Distilling Expo, the number of openings are more than double those seen in 2013. DIAGEO HAS settled a trademark lawsuit with a real-life Explorers Club over its Johnnie Walker whisky range of the same name. The group will continue to sell its collection in travel retail after announcing a global sponsorship and licensing agreement to settle all outstanding litigation between the two companies. LIQUOR BARON Vijay Mallya has been re-elected chairman of Indian drinks group United Spirits despite warnings over his “wilful defaulter” tag. He was found to have purposefully defaulted on paying loans to the United Bank of India despite having the means to do so. SALES OF Irish whiskey have plummeted by almost 20% in Ireland – the category’s second largest market – over the past year due to soaring excise taxes. The drop has prompted the Irish Spirits Association to call on the government to lower the amount of tax paid on a bottle of spirit, which has risen by 42% in the last two years. SOUTH AFRICAN drinks group Distell has widened its footprint in the US market with the acquisition of Georgiabased distributor International Beverage Company (IBC) for an undisclosed sum, giving it US import rights for Scotch whiskies produced by Burn Stewart Distillers, which it purchased in 2013 for £160m. PRODUCTION OF Ukrainian vodka fell 17% in August this year, compared to 2013, to 14.7 million litres. The drop is reportedly as a direct result of Russian trade sanctions against the country in the same month.

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For more information please contact r.berardi@fraternityspirits.com www.fraternityspirits.com

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BUSINESS NEWS

Court actions over labelling LAWSUITS AGAINST spirits brands accused of using “misleading” labels are growing in the States, with both Tito’s Handmade Vodka and Templeton Rye facing legal action. In September, a California real estate broker accused Fifth Generation, owner of Texas-based Tito’s Handmade Vodka, of duping consumers into believing it is handcrafted, claiming that the word “handmade” should be dropped from its labels to “more accurately reflect the product’s attributes”. The broker, Gary Hoffman, argued that since Tito’s exceeds sales of more than 15 million bottles a year, it cannot claim to be handmade. Tito’s then faced a similar lawsuit in Florida a few weeks later, where it was accused of “false advertising and deceptive trade practices”. However Tito Beveridge, founder and master distiller of Tito’s Handmade Vodka and owner of the brand’s parent company Fifth Generation, said the lawsuits were a “misguided attack”. “Here at Tito’s Handmade Vodka, we are proud of our process that focuses on the quality of the product and involvement of human beings,” he said. “We distil at the same distillery in Austin, Texas where I, Tito, started the business in 1995, distilling in batches in pot stills that are customised and hand-built on-site to our proprietary specifications.” Beveridge added the TTB has approved the brand’s label and that its “small-batch distillation process” differentiates it from other vodka brands. A lawsuit against Templeton Rye whiskey also received permission to proceed in the same month. The brand is accused of committing consumer fraud by misleading customers into believing it is distilled using a Prohibition-era recipe in Templeton, Iowa, instead of at MGP of Indiana in Lawrenceburg, IN where it is actually made. Before the court granted permission for action to proceed, Templeton Rye’s president Scott Bush and chairman Vern Underwood had already decided to clarify the product is distilled in Indiana on its labels.

SB ONLINE

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Top 5 most read: 1. Khloe Kardashian fronts liqueur http://ow.ly/Cns4H 2. Disaronno launches Versace bottle http://ow.ly/CnskV 3. French rail staff strike over drinking http://ow.ly/CnsGl 4. Macallan auction fetches US$430k http://ow.ly/Cnt2o 5. Gin set to be top drink this Christmas http://ow.ly/CntdZ

Top 10 women in spirits In what is typically perceived as a maledominated industry, a number of trailblazing women have made their mark in the spirits world over the ages. As such, we pay much overdue plaudits to women who have carved a pioneering and enduring legacy in the industry. http://ow.ly/Co9x7

$30m distillery for Forester TO CAPITALISE on the growing demand for Bourbon, Brown-Forman is building a US$30m distillery in Louisville, Kentucky, doubling production of its Old Forester brand. Expected to be operational by autumn 2016, the new Old Forester Distillery will feature fermentation tanks, stills, a bottling hall and cooperage, as well as a visitors’ centre offering tours, tastings, demonstrations and exhibitions. The Bourbon is currently produced at the Brown-Forman Distillery in Shively, Kentucky, under the supervision of master

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distiller, Chris Morris. Paul Varga, CEO of Brown-Forman, said the new distillery would allow the group to “showcase further one of the greatest tasting and most historic Bourbons”, at a time when global demand for American whiskey is growing to new heights. The plans follow those of Diageo, which intends to build a US$115m distillery for its Bulleit Bourbon and other “future” Bourbon and American whiskey brands in Shelby County in May this year. Louisville Mayor Greg Fischer said: “Bourbonism is real and just keeps growing.”

Coolest whisky bottles In a competitive market, whisky brands including J&B, Suntory and The Macallan are thinking of increasingly inventive ways to make their products stand-out through beautiful, interesting and wacky bottle designs. http://ow.ly/Co9Wx

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MARKETING MATTERS

Absolut collectors’ tour AROUND 200 Absolut Vodka fans and collectors gathered in Åhus, Sweden recently as part of an annual meeting to share their experiences of the brand. The Absolut Company hosted this year’s meet in the vodka’s home town at the end of August, taking the opportunity to invite attendees to tour Råbelöf Estate – where the winter wheat of Absolut Elyx is grown – and the distillery at Nöbbelöv. The group have been collecting Absolut bottles, ads, and merchandise since the brand’s beginnings in 1979. Krister Asplund, VP operations at The Absolut Company, said: “To have such devoted fans makes us very proud. It is nice to see that a premium brand such as Absolut, that is synonymous with creativity, can evolve true passionate feelings.”

Cachaça’s micro cocktail

Campari to ban boredom

CIA MÜLLER de Bebidas, producer of Cachaça 51, has produced a series of high-tech photographs looking at the Caipirinha through a microscope. The traditional Brazilian cocktail has been given a new lease of life beyond taste and smell through the photographs by Paulo Eduardo Dulla from Sao Paulo. “Our purpose with this project was to create the possibility of appreciating the famous Brazilian cocktail in a new way,” said Darleize Barbosa, export manager of Cia Müller de Bebidas. “Just a bit of curiosity was enough to realise the amazing images we see when we get really close to a Cachaça 51 Caipirinha glass.” The cocktail was frozen to around -20°C before being crystallised on a microscope slide. The whole process took around 25 days to complete. Ironically, the frozen cocktail displayed hues of green, blue and yellow, all colours of Brazil’s national flag.

GRUPPO CAMPARI’S Wild Turkey American Honey has unveiled its largest marketing campaign to date with interactive bus stops and viral videos. Launched in September, the Bad News for Boring campaign encourages consumers to ditch their boring side and “enjoy a fine spirit beverage with your friends”. The campaign incorporates a series of online videos currently running on ESPN, Hulu and Funny or Die, while out-of-home includes an interactive LED bus stop screen. A social media campaign will also encourage American Honey’s social sports club members to post funny photos online for a chance to win a trip to Las Vegas. Andrew Floor, senior marketing director, said: “Our new campaign stays true to the brand’s industry leadership by utilising forward-thinking consumer engagement.”

Bacardi Triangle gig set to impress BACARDI IS to host one of the world’s most elaborate gigs this month, when it flies 1,800 guests to a mega party in the Bermuda Triangle with music from superstars Calvin Harris, Kendrick Lamar and Ellie Goulding. The Bacardi Triangle event will see the rum brand fly guests and competition winners from around the world to the five-star Waldorf Astoria El Conquistador resort in Puerto Rico from 30 October for two nights of partying and cocktails.

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On the third night, guests will be whisked to a private Caribbean island in the heart of the Bermuda Triangle for an exclusive gig from the three artists. The Bermuda-based drinks group claimed the event builds on a growing trend of music fans building gigs into their holiday plans. Dmitry Ivanov, senior category director, rums, at Bacardi, said: “This is the biggest brand experience Bacardi has ever held.”

SoCo spies students BRITISH STUDENTS starting university for the first time this September were treated to Southern Comfort samples during Freshers’ Week. Running from 22 September to the end of the year, the whisky liqueur brand is targeting students in 30 cities across the UK with fun bar experiences, gifts with purchase, sponsored silent discos and “stay in or chill out” packs. The initiative is part of Southern Comfort’s Whatever’s Comfortable campaign.

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MARKETING MATTERS

Ballantine’s Parisian pop-up BALLANTINE’S BLENDED Scotch whisky is to roll out its Bar Project initiative to additional markets following the successful launch of a bartender’s dream bar in Paris in September. The Pernod Ricard-owned brand sought creative ideas from the general public and trade earlier this year. More than 50% of the public voted for bartender

Stoli aims away from the crowd STOLI VODKA has made a departure from its Start with Stoli marketing campaign, with the launch of new “multimillion” advertising strategy, THE Vodka. The new marketing campaign has been launched in global markets including the US, where activities will be focused on the major cities of New York, Los Angeles, and Miami, as well as Chicago and Boston.

Designed by Richmond-based The Martin Agency, the campaign seeks to separate Stoli from “an industry flooded with the superficiality of over-designed bottles and over-idealised lifestyles”. Creative executions, including a series of animated videos made by graphic novelist Andrew Rae, will “highlight the difference between being unique versus being part of a crowd”.

JD sets to rock east end at pub fest JACK DANIEL’S launched a new music campaign in the UK in partnership with London’s The Macbeth venue last month. The Brown-Forman-owned Tennessee whiskey brand joined forces with the 150-yearold pub in Hoxton to present a pop-up festival with its brand personality stamped on it. The Jack Rocks The Macbeth will be open at the venue for a trial period of four months, featuring an upstairs workspace for minimum wage journalists, as well as a bar serving Jack cocktails and of course the live music space. The campaign will also see point of sale material placed in bars across the UK featuring CuT, the protégés of former Blur manager and Food Records boss, Andy Ross.

Abderrahim “Abdou” El Asfar’s traditional night market concept, L’Epicerie, prompting Ballantine’s to launch the bar as a six-week pop-up at popular Parisian haunt, La Chacha. Peter Moore, global brand director for Ballantine’s, said: “The project has been so well received that it is to be repeated again next year.”

Grant’s targets younger audience GRANT’S SCOTCH whisky has switched its marketing focus from older male drinkers to a younger, “millennial” audience with its latest campaign. Brand owner William Grant & Sons has traditionally used product-led marketing to communicate with its target audience, which up until now has been older, male consumers. The blended Scotch whisky brand is now targeting a younger generation with #IOU, a short film distributed solely online, and the first consumer-facing installation of Grant’s new Stand Together campaign. Directed by Bafta-nominated director Yann Demange, the advertisement follows a group of friends through a series of challenges in which they support each other. The online ad will be released in more than 40 countries and will last through to the new year.

Johnnie keeping an eye out for Gold star JOHNNIE WALKER Gold Label Reserve has partnered with Rankin in the creation of the ultimate photo booth, which will be used to find the face of the Scotch whisky brand’s 2015 online campaign. Unveiled at an exclusive Rankin photography exhibition at the Vanity Fair party at Venice Film Festival in August,

the photo booth will feature as part of a number of events at bars and clubs across Europe until February 2015. Those who take their photograph in the photo booth and upload it to Instagram using the hashtag #GoldCelebration could be in with a chance of appearing in Johnnie Walker’s next campaign.

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The high flyer Diageo leads the travel retail spirits category with a firm focus on premium, exclusive products, but that hasn’t always been the case, its managing director for the sector tells Becky Paskin 18

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AS SPIRITS companies go, Diageo is a relatively open book and usually willing to communicate most financial information publicly and honestly, which is why it came as a disappointment that getting any indepth data about its travel retail business was like drawing blood from a stone. Speaking across a seven-hour time difference on the phone from Diageo Global Travel’s head office in Singapore, Doug Bagley, managing director of Diageo GTME, plays the drinks group’s cards close to his chest and simply reveals: “We are very happy with our overall performance and are growing ahead of the category.” But considering Diageo’s market-leading position within spirits in the category and the level of competition naturally inherent to the travel retail environment, I’m willing to forgive Bagley’s secrecy. To give some idea of the size of Diageo’s travel retail footprint, there are 290 staff employed across four key regional offices in Singapore, London, Beirut and Miami, as well as around 400 brand ambassadors across the world. At any one time Diageo has hundreds of activations running in the majority of the top 50 airports globally. The sector represents a huge – albeit undisclosed – investment on Diageo’s part, but when one considers the number of international passengers travelling annually, which grew by 5% in 2013 compared to 2012 (IATA), the group’s focus on the category is potentially vastly lucrative. Bagley points out that the increase in passenger numbers going forward will be driven by affluent consumers from emerging markets in Asia and the Middle East, which grew by 7% and 11% respectively in 2013. “We’ve now got over 1.2 billion people travelling and we’ve really seen an increased number of affluent travellers,” he says. “The attractiveness of the category is very high and is strategically critical for Diageo, firstly because it’s a large category for us, secondly it’s profitable and thirdly we get access to those affluent consumers.” As with most consumer goods visible in travel retail, three key rules for success apply as far as Bagley is concerned: premiumisation, exclusive products, and “an unparalleled luxury experience”. He reckons, “get these three right and you have a huge opportunity to drive growth”. One Diageo-owned brand that’s undoubtedly benefitted from these three cardinal rules is Johnnie Walker, the world’s

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BIG INTERVIEW number one Scotch whisky and the leading spirits brand in travel retail, which draws the lion’s share of the group’s attention. “With 50% of the total spirits category being Scotch, Johnnie Walker is an absolutely critical entry point for our portfolio,” Bagley enthuses. “It gives us a fantastic opportunity to be able to use that brand as our spearhead into travel retail.” While Bagley won’t disclose specific volume figures, recent data released by the IWSR shows Johnnie Walker sales in travel retail plunged by 4.5% in 2013 to 2.2m cases. While IWSR claims the fall was “almost entirely attributable to massive declines in important Asia-Pacific markets,” Bagley insists austerity measures in China have only affected the brand’s ultrapremium end, with declines offset by increasing passenger numbers. “Johnnie Walker is in its strongest market position for two years,” he claims, citing unique exclusives and activations as the cornerstones of its success. Diageo cemented its dedication to travel

DOUG BAGLEY: CV BORN: 1967 BASED: Singapore FAMILY: Son and daughter EDUCATION: International Marketing Post Graduate Qualification, University of New South Wales, BA Business majoring in Marketing, Charles Stuart University, New South Wales CAREER: 1989-1991: Various roles in business management and sales 1991-1995: Various management roles, Unilever Streets Ice Cream 1995-2005: Various director roles, Unilever 2005-2009: Vice president customer development, China Group Operating and National Board of Directors, Unilever, China 2009-2010: General manager, Diageo China Ltd 2010-2012: Commercial director, Diageo Australia 2012-2013: Chief commercial officer, Diageo Asia Pacific 2013-Present: Managing director, Diageo Global Travel and Middle East

‘The attractiveness of the category is very high and strategically critical for Diageo’ David Beckham promoting Haig Club in Singapore

retail in 2012 with the launch of Johnnie Walker Explorers’ Club, a three-strong travel retail-exclusive range of blended Scotch whiskies that became its largest activation in the sector. At the time, Roland Abella, former managing director of Diageo GTME, said the scale of the investment reflected a “big change” in Diageo’s attitude to travel retail and an acknowledgement of its “fundamental growth opportunities.” The range hit a stumbling block earlier this summer as the real-life, New York-based Explorers’ Club, which has promoted the scientific exploration of land, sea, air and space since its inception in 1904, sued Diageo over its use of the name. The future of the range was in jeopardy, but Diageo’s

investment in the collection was too strong and the pair struck a global sponsorship and licensing agreement in September. “There’s been no impact on the brand in terms of sales; we continue doing business as usual, and we’ve now got a fantastic partner to work with to take the brand to new heights,” Bagley remarks. More recently, Diageo further strengthened its Scotch presence in travel retail with the extension of the Johnnie Walker Houses in Shanghai, Beijing and Seoul, into the airport environment. Smaller but permanent concepts were opened in September in Mumbai and Taiwan airports in a bid to target rising numbers of wealthy Indian and Asian travellers.

“In Mumbai we have 350 million middle class travellers which is a critical opportunity for us,” Bagley explains. “Mumbai is also a very important international gateway for us with a very high degree of Indian passengers travelling through to a number of key locations throughout the world.” Taiwan meanwhile, being one of the largest Scotch markets in the world, is described as a “very strong Johnnie Walker market”, making it a prime location for a travel retail house. “The real market for the houses is very much the affluent consumer because the key part of our strategy is the exclusives,” Bagley explains. “Consumers really want the premium expressions they cant buy in the domestic market, so in the

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The new Johnnie Walker House at Chhatrapati Shivaji International Airport, Mumbai

houses they will find exclusive products.” He points out the Johnnie Walker House Art Collection, exclusive to Mumbai and Taiwan airports, as well as the Commemorative Series. “What comes with the houses are exclusives and are very much premium, starting at US$390 and moving up.” Customers are given the royal treatment, with sampling opportunities and the chance to discover more about the heritage of the brand from trained brand ambassadors. Future opportunities for the whisky houses, Bagley hints, lie in locations outside Asia “where we are able to bring together a great retail partnership in a space where we can bring that shopping experience alive.” Also within its Scotch portfolio, Diageo has high hopes for its Haig Club single grain whisky, which is being rolled out to travel retail markets globally this October. For its launch in Singapore Changi, co-owner and former footballer David Beckham greeted travellers at an impressive installation. From a strategic perspective, and celebrity status aside, the Haig Club activations in travel retail give Diageo the opportunity to capture attention and encourage consumers to trial and discover more about the burgeoning category. “The launch of Haig Club is an example of why travel retail plays such an important role for how we launch new luxury brands,” Bagley explains. “Consumers get the best opportunity to be able to understand and learn about the brand, but in particular they are able to touch, taste and smell which they can’t do in much of the off-trade or on-premise venues. That’s the opportunity travel retail presents and that’s why it will play a really

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important role for Haig Club globally.” While Scotch whisky plays a starring role in Diageo’s travel retail portfolio – expect to see more exclusives from the malts portfolio in the coming months – the group has a “strategic focus” on its Reserve brands, liqueurs and vodka. Bagley believes: “Luxury is the future for spirits in travel retail, so real growth opportunities exist for us across our super-deluxe and above brands in both brown and white spirits.”

‘We are clearly focused on driving premiumisation. Why? Because that’s what the traveller wants’

Diageo’s strategy to premiumise its portfolio with travel retail exclusive expressions this year reached Smirnoff with the launch of Smirnoff White in the summer. Created using freeze-filtration, the brand’s first exclusive travel retail edition was designed to encourage consumers to “trade up” to a more premium expression. Bagley says that at a 20% premium to Smirnoff Red, Smirnoff White has already witnessed double-digit growth and has created a halo

effect for the entire brand, just four months after launch. “We are trying to stand firm on our strategy, which is very much about bringing exclusive innovations to travel retail. It’s a great opportunity for what is already the world’s number one vodka.” Smirnoff still has some way to go in the travel retail arena to catch up to the likes of Pernod Ricard’s Absolut, which has grasped the concept of exclusive expressions with fervour for some time, making it the bestselling vodka in travel retail with 900,000 case sales in 2013 (IWSR). Despite being a third larger than Smirnoff’s 620,000 cases, Bagley is confident of a vibrant future for Smirnoff in the vodka category. Although political tensions in Eastern Europe and the Middle East in recent months have seen traveller numbers dip, Bagley can’t hide his enthusiasm for longterm opportunities in the regions. Even with the loss of high-end spending from Chinese consumers, the group is looking to superpremium exclusive expressions like Johnnie Walker Blue, Cîroc and Smirnoff White to make up revenues in the category. Bagley adds that the biggest challenge facing Diageo GTME at the moment is managing its global footprint in the face of economic or political uncertainty, but its strategy remains the same. “We are clearly focused on driving premiumisation. Why? Because that’s what the traveller wants. They want to trade up, have access to exclusive products, are willing to pay for them and above all they want that shopping experience. We don’t just see that purely in our category, we see it right across the board in travel retail as a whole.” sb

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SPONSORED PROFILE

Corralejo barrels combine Canadian, French and Mexican oak

Shaking things up Centuries of tradition paired with a passion for innovation is helping Tequila Corralejo spread the word about the quality of 100% blue agave Tequila KEEPING ONE eye firmly on the past while continuing to innovate and reinvent itself, Tequila Corralejo has built a brand rooted in its Mexican origins, but intent on pushing the image of Tequila in a modern direction. Located on the edge of the Jalisco hills in Guanajuato, Hacienda Corralejo was founded in 1755. The company’s original owner was Miguel Hidalgo, father of Mexican independence. The brand’s modern era began in 1994 when current owner Leonardo Rodríguez Moreno bought the property and restored

it to its former glory. With this renaissance came a drive to produce a range that not only met, but exceeded the quality requirements for denominación de origen Tequila. Another element setting Corralejo apart is the unique wood combination used in its barrels, which balance the various influences of Canadian, French and Mexican oak. In addition, Corralejo seeks out Canadian and French barrels formerly used by US whiskey producers in order to add a further layer of complexity to its Tequilas.

Building on this quality-focused base, Corralejo continues to innovate via new releases and marketing initiatives. In the 77 countries Corralejo is exported to, sales have been steadily rising. With European markets currently taking eight containers a year, Corralejo enjoys standout success in London’s high-end bars, led by its reposado expression. However man cannot live on Tequila alone and the company is aware of the need to offer products outside this realm, which has led to the creation of both Prohibido rum and Boker vodka.

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SPONSORED PROFILE THE TEQUILA CORRALEJO RANGE “Having already enjoyed success in the US and Europe, Prohibido rum has just gone on sale in duty free in Cancun and it’s already doing well there,” says Raffaele Berardi, CEO of Fraternity Spirits, Tequila Corralejo’s global marketing arm. The company has had a little fun with the launch, employing an actor to dress up as a town crier in 18th century attire who rings a bell in the store to signify the liberation of Mexican rum, which was forbidden from being produced by the King of Spain in the early 18th century as he viewed it as a threat to local spirits production due to it being warmly welcomed in Spain. Known as Habanero rum due to Havana being the last port of call for the rum barrels on the way back to Spain from the New World, Prohibido rum pays homage to the historic drop and the battles it faced. While Prohibido has yet to go on sale in the UK, Berardi reveals that the ink is soon to dry on a distribution deal that will see it hit our shores. Another recent success story for the company has been Boker vodka – a Mexican corn vodka housed in a striking electric blue spiral-shaped glass bottle. Targeting consumers aged 25-45, the vodka, which is enjoying success in Brazil, Paraguay and Central America among other countries, is five times distilled and filtered through charcoal. “We launched Boker vodka to world duty free at the beginning of this year and it’s doing really well. Sales are very positive and we’re currently working on summer in-store promotions and tastings that highlight its flexibility in cocktails in order to further flag it up,” says Berardi, who reveals that the company is in negotiations to get it on sale in UK airports. At the Tax Free World Association in Singapore last month, Corralejo launched the Corralejo Margarita Collection, a cocktail book

featuring recipes taken from the recent Corralejo mixology competition, The Margarita Challenge. This ran from March to May this year culminating in the final in New Delhi on 20 May in collaboration with celebrity sommelier Magandeep Singh, where the Ambassador of Mexico to India took part as a judge. With the focus on celebrating the spirit of the Margarita cocktail, India’s top bartenders had to battle it out for the title of Corralejo Tequila “Teqnician”, with the winner scooping a trip to Mexico. As a tie in, last month Delhi Duty Free launched a social media campaign centred around the competition.

‘We launched Boker vodka in world duty free at the start of the year and it’s already doing really well’

Berardi admits that Tequila remains a niche proposition, which has forced the company to defend its ground. “Sales are slowly growing – there is an increasing awareness among consumers about the quality of 100% agave Tequila,” says Berardi, adding, “The appreciation is there but from a small base. We’re spending a lot of time communicating the quality message so consumers get closer

BLANCO: bottled directly from the copper still to show the purest expression of Blue Weber agave REPOSADO: aged for four months in French, American and white oak AÑEJO: aged for 12 months in new, toasted American oak barrels Triple destilado: while most quality Tequilas undergo double distillation, this is triple distilled GRAN CORRALEJO: reserve style matured in barrels for at least two years 99,000 Horas: limited edition añejo expression

TEQUILA CORRALEJO AT A GLANCE  The Hacienda Corralejo was founded in 1755 by Sanches de Taglie in the birthplace of Miguel Hidalgo, father of Mexican independence  The property was bought and restored in 1994 by current owner Leonardo Rodríguez Moreno  Tequila Corralejo is currently exported to 77 countries  Raffaele Berardi is CEO of Fraternity Spirits, the global marketing arm of Tequila Corralejo  For the DO certification, 100% minimum agave is required

to the product.” One way Berardi hopes to lure new consumers into the Tequila category is through flavoured variants, which Tequila Corralejo is currently experimenting with. While most of the trials are under wraps, Berardi reveals that a coffee variant of Tequila Corralejo made with 100% agave will soon go on sale. “Consumers are always seeking something new so we need to adapt our products to their needs and flavoured variants are another string to our bow,” he says. Designed for sipping, Berardi believes the flavoured options will offer younger consumers and those previously averse to trying Tequila a softer entry into the category. Advertisement Promotion

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An uncertain world As China stutters and geopolitical tensions threaten to frustrate immediate prospects of growth in travel retail, operators are still confident in the sector’s longer-term potential, reports Richard Woodard

TRAVEL RETAIL has proved to be mainly fertile ground for spirits brands in the years since the global economic downturn, with bright prospects in emerging territories such as Asia-Pacific and Latin America making up for more stagnant trends in Western Europe in particular. It’s clear from the long-term projections of passenger numbers and the huge investments in infrastructure in the Middle East and Asia that this remains a sector to watch in the years to come. Not just because of the clear potential for future growth, but also because travel retail offers unrivalled opportunities for super-premium brands and exclusive products, thanks to an audience with time on their hands and money in their pockets. So in rum, for instance, Diageo will place greater emphasis on the higher-end Zacapa than on the far bigger (in volume terms) Captain Morgan rum. Those familiar with the travel retail arena will tell you that it’s not quite the El Dorado that it appears to be, since the typically fatter margins commanded by high-end products can swiftly be eroded by the sometimes eye-

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GLOBAL DUTY FREE AND TRAVEL RETAIL WINE AND SPIRITS SALES, 2012-13 Region 2012 (US$m) Europe 3,576.1 Americas 1,433.9 Africa 143.1 Asia-Pacific 2,764.7 Middle East 1,173.1 Total 9,090.9

2013 (US$m) 3,803.1 1,468.9 161.0 3,078.9 1,350.4 9,862.3

watering financial demands of airport retailers. But most will also admit that this is a price they’re willing to pay for the marketing opportunity that travel retail offers. That much vaunted “shop window” status may not come cheap, but its attractions remain resolutely undimmed for most operators. And there are ways around the pricing issues. Not least the development of travel retail exclusive limited editions, products and even ranges to dissuade canny consumers from making price comparisons with their domestic markets. When top travel retail brands such as Courvoisier and

Change (%) 6.3 2.4 12.5 11.4 15.1 8.5

Source: Generation Research, Sweden

William Grant’s The Balvenie single malt introduce TR-only ranges, it’s clear that this trend is here to stay. So, yes, travel retail remains an attractive arena for spirits brands to play in, and for all kinds of reasons. Although, if you sensed there was a “but” coming here, you’re right. The health of the travel retail sector is inextricably linked to the health of the global economy and the presence (or absence) of significant international conflicts. In the second half of 2014, neither of these factors is playing a particularly helpful role. China’s economic growth remains

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GLOBAL TRAVEL RETAIL REPORT healthy, but not as healthy as it was, and the government’s anti-extravagance measures have taken their toll; Latin America’s natural resource-rich economies have stuttered, impacting disposable incomes; and there is growing doubt about the extent of the recovery in the US. Some of these question marks have arisen thanks at least partly to geopolitical tensions: tit-for-tat sanctions involving Russia, the US and the EU following the conflict in Ukraine – and bear in mind that Eastern Europe was looking like one of the most promising travel retail regions in the world prior to this. And of course the ongoing fighting in the Middle East, from Gaza to Syria and Iraq. The continuation and escalation of these tensions could have serious consequences for travel retail. These are all points that are very familiar to the leading operators in the sector. “The well-known challenges in China, political unrest related to the situation in Ukraine and economic uncertainty in some countries are all contributing to a challenging year for travel retail,” agrees Steven Sleigh, business development director for Global Travel Retail at Edrington. “However, we are confident that the forecast growth in passenger numbers in the decade ahead, combined with the growing demand for premium quality products, provide a very bright outlook for global travel retail and indeed the Scotch whisky category in particular.” Also linked to this is the growth in numbers of emerging middle class consumers – not just in Asia, but also in markets across Latin America and into Africa. As well as offering more opportunity to brand owners, this also serves to spread their geographical risk: if growth slows in one region, hopefully another region will take up the slack. It’s enough to encourage many companies to redouble their efforts in the sector. Diageo’s focus on travel retail has increased notably in the past two years or so, and they’re not alone: South Africa’s Distell, fresh from its purchase of the Burn Stewart Scotch business, has built a stronger and better-resourced TR team, investing in Europe and Asia-Pacific recently, and set to repeat the exercise closer to home in Africa in the year ahead. Opportunities abound, but competition is increasingly fierce. “We all face the same challenges,” says a spokesperson for

LIES, DAMNED LIES AND STATISTICS: DECIPHERING TRAVEL RETAIL TRENDS IN 2013 SPECIALIST TRAVEL retail analyst Generation Research charts smooth gains for the drinks industry in 2013 in all global regions, with the Middle East, Africa (off a small base) and Asia-Pacific all registering double-digit growth (see table opposite). Generation figures include wine as well as spirits sales and are value rather than volume based, but that doesn’t altogether explain the discrepancy between the organisation’s figures and those of the International Wine and Spirits Research group – which paints an altogether more downbeat picture. Taking spirits in isolation, the IWSR reports that Asia-Pacific travel retail recorded the sector’s first regional sales decline in four years, with volumes dropping 4.4% in 2013 thanks to a downturn in a number of key markets, including Singapore, South Korea, Thailand, Hong Kong, Taiwan and Malaysia. The decline contributed to a general slowing of growth for duty free spirits as a whole, with continuing geopolitical tensions underlined by the 9.6% decline in sales volumes in Africa, blamed on a recent downturn in tourist numbers visiting Egypt as political turmoil there continued. However, the Middle East/Africa region as a whole posted a 3% volume increase thanks to the continued expansion of the Middle East market. For the IWSR, the Americas showed the most robust growth with volumes up 4.2%, thanks to healthy growth in Latin America, the Caribbean and North America – enabling the region to move ahead of Asia-Pacific in volume terms. Europe’s sales volumes edged up 1.5%, but declines elsewhere helped the region to increase its global market share, largely thanks to a dynamic 9.7% increase in Eastern Europe and the Baltics. Meanwhile, a revival in tourism to Southern Europe helped sales there to rise 2%, mirrored by an identical increase in Central Europe and the Balkans. Only the Nordic and north-west Europe sub-regions recorded a slight volume decline.

Stolichnaya owner SPI Group, citing “lack of space and capturing share of voice with so many other brands out there.” If that means that companies have to raise their game, it also means increased investment is now a necessity. “Travellers are more comfortable trading up for limited edition offerings and are actively looking for value-added experiences to

bring their purchasing moment to life,” says a spokesperson for the Moët Hennessy travel retail team. “They want to be stimulated by brands, and be able to talk about what they’ve experienced that is new, unique and engaging. It’s no longer enough to just launch a travel retail product without any marketing, PR and experiential support behind it.” sb

Bacardi Gold rum

Amarula Gold liqueur

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GLOBAL TRAVEL RETAIL REPORT COGNAC COGNAC’S TRAVAILS in the Far East over the past year or so are welldocumented thanks to the Chinese government’s crackdown on extravagance and a knock-on slump in the sales of Cognac XO and Extra expressions. But – despite a slight volume decline in 2013 – travel retail remains a key sector for the category, and Asia-Pacific travel retail continues to drive growth, accounting for more than one-third of global volumes. That Chinese downturn is still having an impact, however. “As competition in duty free intensifies, business dynamics do become more complex,” reports a spokesperson for Distell (owner of Bisquit). “For example, we have to balance trade customer margin expectations with new Cognac pricing realities, where many producers are adopting aggressive pricing strategies in order to recover lost volumes in the light of the downturn in Chinese demand.”

That’s an unhealthy squeeze for what should be a category with decent margins, but Cognac remains dominated by its big four brands, and their actions dictate the fortunes of the entire sector. Hennessy continues to lead the pack on the back of its House of Hennessy project in conjunction with Heathrow and World Duty Free this year – a pop-up boutique offering a “brand immersion” and tasting programme that was due to be open for three months around Christmas, but stayed open for an extra two. Moët Hennessy reckons the result amounted to a year’s sales concentrated into a fivemonth period. Courvoisier remains a name to watch in travel retail, the segment’s number two brand behind Hennessy and ahead of Martell and Rémy Martin. To reinforce that position, owner Beam Suntory has added another expression to supplement the travel retail exclusive range, Le Voyage de Napoleon, launched in 2013.

Courvoisier Extravagance will receive support at three major European airports in the run-up to Christmas, and is a Napoleon-grade Cognac inspired by the Paris Golden Age of the late 1800s. At €89 a bottle, it bridges the price gap between Courvoisier’s VSOP and XO expressions, with the brand’s initial efforts focused on activations at Amsterdam Schiphol, Madrid and Heathrow.

The gin and tonic craze in Spain – including extravagant serves and lengthy menus of tonics as well as gins – has played a huge role in the current gin renaissance in Europe, and it’s something that travel retail’s leading gin name, Bombay Sapphire, has been swift to capitalise on. The Bacardi-owned brand targeted Malaga Airport in the early summer with its Bombay Sapphire Gin & Tonic Reimagined initiative, which involved bartenders creating personalised G&Ts using Spanish influences, including large, balloon-shaped wine glasses, lots of ice, lemon twists and cinnamon sticks. Bombay Sapphire barspoons added a touch of theatre to cocktail creation at the airport – and were available as a GWP alongside bottles of the gin itself. The Spanish influence got a different twist from Beefeater (the gin market leader in Spain), which instead targeted Gatwick – the primary airport hub for

travellers of both Spain and the UK. Pernod Ricard Travel Retail Europe engineered what it dubbed a “takeover” of the airport for its Spirit of London experience, using a variety of publicity materials to follow the passenger journey through the airport (and into the World Duty Free store), with the centrepiece the brand’s Spirit of London limited edition bottle for 2014.

GIN GIN’S RENAISSANCE has been all about premium and above variants, making travel retail the perfect playground for brands including Bombay Sapphire, Tanqueray 10, Plymouth and Hendrick’s – in theory at least. And, if Pernod Ricard Travel Retail Europe is to be believed, the theory is beginning to become reality. During a March 2014 promotion for Plymouth Gin in Heathrow Terminal 5, sales exceeded company forecasts by more than 300%. “The opportunity for further growth in the category is huge, especially as the superpremium gin segment is showing strong performance in the channel,” says Jenny Shipton, marketing director of Pernod Ricard Travel Retail Europe. The result was further investment in the shape of Plymouth Gin bars at London Gatwick South and Heathrow Terminal 3 during the summer, and cocktail sampling which proved to be the main purchase driver at Heathrow Terminal 5.

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GLOBAL TRAVEL RETAIL REPORT

LIQUEURS & SPECIALITIES IN DISPARATE categories such as this, you need excellent brand equity (Campari, Baileys, Amarula) to stand out – or a strong association with a particular occasion or serve. You need “new news” as well. Baileys has an ever-growing list of flavour variants, but many other players in this area have stand-alone products not easily diverted into line extensions. Nonetheless, Distell’s addition of Amarula Gold (a 30% abv clear golden spirit targeting a new occasion to the core 17% abv offering) takes a cream liqueur franchise into the realms of mixability – and the results have been impressive. The company says it has attracted a new audience to the Amarula brand, with sales exceeding its “very optimistic expectations”, and has had a substantial positive effect on Amarula Cream itself, with no signs of cannibalisation. For Campari, meanwhile, innovation has

come in the form of packaging rather than product this year, with the brand launching its first ever travel retail exclusive packaging. The red lines of the distinctive pack are designed to commemorate the brand’s home city of Milan and the Fiera Milano business centre in particular, and the exercise has been described as a “great success” after activations in Paris and Rome. But if we’re talking about associations with particular serves, Campari’s Aperol brand is the example par excellence. The Aperol Spritz phenomenon has continued with a wave of initiatives following last year’s Aperol Beach activations. Aperol Spritz Funky was described by the company as “an explosion of the bright orange colour of Aperol, combined with a funky atmosphere”. The idea was to enshrine Aperol’s reputation as “the ultimate social drink” with an easy-going reputation, using an orange piano,

background music and a GWP of branded Aperol earphones. Employees of Gruppo Campari got in on the act as well, embarking on a mass sampling exercise at Milan’s Malpensa Airport on 4 July this year. The Aperol Spritz Blitz exercise lasted only 90 minutes, but generated 48% of daily sales for Aperol itself, and 40% of the sales of the Aperol Spritz Bi-Pack.

Frankfurt, Vienna and Antalya. According to Aude Rocourt, regional director Europe at Bacardi Global Travel Retail: “Many consumers are new to rum, but are quick to convert.” The rum masterclass in European travel retail, however, should be offered by Havana Club, with the Pernod Ricardowned brand more than doubling its volumes over the past seven years. This year’s activations included the Havana Club Mojito Embassy summer tour to celebrate International Mojito Day in Munich on 11 July. Germany was the prime target for the campaign across five airports in total, reflecting its status as Havana Club’s number one export market, with an 8.5% volume increase there in 2013 and “sustained double-digit growth” over the past five years. For Diageo, while Captain Morgan is the obvious category volume driver, there’s a disproportionate emphasis on Ron

Zacapa Centenario thanks to its higher positioning and the considerable growth potential of the super-premium segment. And the category doesn’t stop there. Gruppo Campari continues to build support behind Appleton Estate, still a relatively new acquisition, and its potentially winning combination of alluring Jamaican lifestyle associations and a stand-out range of genuinely minimum age rums right up to the 50year-old. Add in Edrington’s Brugal and a swathe of smaller players and you can see why rum’s potential in travel retail has never been greater.

RUM RUM REMAINS a category to watch in travel retail thanks to a combination of big-name brands, emerging contenders and a raft of higher-end products of immense provenance and quality. Bacardi dominates, and Captain Morgan and Havana Club both perform well, but the leading operators are now refining their approach increasingly to prioritise value over volume. So Bacardi now has a travel retail exclusive, Bacardi Gran Reserva Maestro de Ron, a super-premium sipper that is keen to emphasise the company’s prerevolutionary Cuban roots through airport activations heavy on Havana: 1950s-style white bar jackets, a Prohibition-era bar and vintage accessories. The approach has been wide-ranging in Europe this year, covering the revamped Terminal 2 at London Heathrow as well as Terminals 3 and 5, Manchester, Gatwick North and South, then Barcelona, Malaga, Amsterdam, Copenhagen,

www.thespiritsbusiness.com

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GLOBAL TRAVEL RETAIL REPORT

SCOTCH WHISKY THE WELL-PUBLICISED issues affecting travel retail as a whole in 2013/14 – China’s anti-extravagance crackdown, economic frailty in some emerging markets, and increasing geopolitical tensions – had an impact on Scotch volumes after years of robust growth. But Scotch remains the mainstay of travel retail spirits sales, with a market share of about 50% and a clear value focus thanks to an over-indexing on highend blends and single malts. The daddy of the category remains Johnnie Walker, boosted in the past couple of years by a renewed focus on travel retail and the introduction of the Explorers Club range. The threat of litigation from the namesake organisation in New York has now passed with the signing of a new partnership. The success of Scotch more broadly brings supply challenges too, leading to an ever-increasing number of NAS (no age statement) special editions, such as

two out of the three new Bowmore TR exclusive single malts (Black Rock and Gold Reef, plus White Sands 17yo). However, that’s an approach eschewed by Bacardi in its unveiling of the longawaited “Last Great Malts” range, including Aberfeldy, Aultmore, Craigellachie, The Deveron and Royal Brackla, which have age statements all the way – thanks to the good stocks of each accumulated by the company. The introduction is arguably the most exciting Scotch whisky innovation in travel retail for more than a decade. Elsewhere, competition is hotting up. Distell reports “outstanding gains” across its newly acquired Scotch whisky portfolio, particularly for single malts Bunnahabhain, Deanston, Tobermory and Ledaig, plus revamped blend Black Bottle. Campari’s Glen Grant is aiming to transcend old associations with low prices and high volumes in the domestic Italian market with the recent launch of a 50-

year-old luxury variant, while Highland Park’s Warriors range has given a collectible edge to a fast-growing brand. Meanwhile, Edrington stablemate The Macallan continues serene progress, increasing sales by 36% in 2013 and embarking on a raft of activities from the introduction of the über-luxurious M decanter to pop-up stores in Taiwan and special editions linked to its Masters of Photography project.

the title of Tequila Corralejo Teqnician. The winner was invited to the company’s distillery in Mexico, as well as having their Margarita recipe immortalised in the Corralejo Margarita Collection – a book launched in Singapore this year at the TFWA Asia-Pacific event. It’s an illustration of the growing global reach of Tequila – Corralejo is the leading category brand at Delhi Duty Free thanks in no small measure to the initiative – and a number of other Tequila brands are mirroring the company’s efforts in travel retail regions from Europe to Australia. For Brown-Forman, owner of Herradura, Tequila is now (along with American whiskey) the most dynamic spirits category in travel retail, with the main battle ahead for all brands – from market leader Jose Cuervo to the smallest artisanal Blanco – that of educating the consumer. Unexplored parts of Asia are an attraction for their “blank canvas” status, in that most consumers don’t have a bad

impression of Tequila because they don’t have any impression at all. But there’s arguably far more to gain from established territories in the Americas and Europe, where an ever-growing range of super-premium and luxury brands should – in time – win over consumers wary of the category’s previous “bad boy” image.

TEQUILA ASSESSING THE true potential for Tequila in travel retail continues to be a tricky business; double-digit growth, for sure, but the category’s overall market share remains diminutive when compared to big-hitting categories like vodka or gin. In domestic markets, achieving genuine international reach remains elusive, with the vast majority of the category’s sales still secured in its home market of Mexico and over the border in the Margarita-mad US. But travel retail, by its very nature, allows Tequila to cross boundaries and build a following in unexplored regions such as Asia-Pacific. Here’s an example: Tequila Corralejo completed the third edition this year of its Tequila Corralejo Margarita Challenge for mixologists in India, partnering with Delhi Duty Free Services to organise the event. Held in association with celebrity sommelier Magandeep Singh and the brand’s local representative, Two Friends, the contest involved bar staff vying to win

www.thespiritsbusiness.com

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GLOBAL TRAVEL RETAIL REPORT

VODKA COMPARED TO its stellar domestic market performance, vodka has long been a frustrating under-performer in travel retail. However, that malaise has been to some extent remedied in recent years by the activities of a number of premium and super-premium brands, including Grey Goose, Cîroc and Absolut. Pernod Ricard’s typically de-centralised approach for the latter has encompassed a few local initiatives in the past few months, including a first limited edition for Australia: Absolut Oz, a flavoured one-off produced in association with film director Baz Luhrmann. Meanwhile, in Europe, Absolut Karnival used orange blossom and passion fruit, an association with Brazilian graphic novelist Rafael Grampá, and activations at a number of the continent’s airports to construct this year’s regional limited edition. Brand owner Bacardi has built a strong following for Grey Goose in travel retail in recent years, and is now looking to push

on again with the launch of Grey Goose VX, which combines the vodka with “a few drops” of Grande Champagne Cognac. The launch has been supported by a distinctively different bottle design and VIP events around the world. In vodka, super-premium is increasingly where the action is. Diageo’s Cîroc grew by 60% last year, and the company is predicting further growth of 11-15% for the super-premium segment in the next five years. And yet the company’s biggest-selling brand, Smirnoff, has also returned to growth in travel retail, thanks to the launch of Smirnoff White, which has taken just a few months to cast a halo effect over the entire brand franchise. Stolichnaya is another mainstream brand which is seeing growing momentum, thanks to owner SPI’s successful promotion of the brand’s Night Edition variant, which it is hoping will mean increased sales in North and Latin

America in particular. A promotion with Heinemann Duty Free for Night Edition resulted in a 350% uptick in sales in the first quarter of 2014, with tasting bars in German airports at Berlin, Hamburg and Frankfurt. A new limited release Night Edition, which is activated when chilled, will debut at TFWA Cannes.

Aged in new white oak and maple, Gold was initially a European exclusive for Heinemann Duty Free, but has since been rolled out, including a push in Dubai involving a competition to win a kilogram of gold. As well as Gold, TFWA Cannes will feature the latest Jack Daniel’s Master Distillers bottling – honouring Lem Motlow – and the presence of the brand’s first assistant master distiller, Chris Fletcher. Beam Suntory’s flagship Jim Beam brand is ploughing a similar furrow in terms of exclusive releases, targeting its top export market of Germany with the release of Jim Beam Signature Craft 12year-old, a small-batch ultra-premium Bourbon which will eventually be rolled out to other European markets as well. Meanwhile, Jameson continues to make strides in the sector, celebrating St. Patrick’s Day earlier this year with the unveiling of the brand’s fourth limited edition Jameson Original bottle design,

this time featuring the work of Irish illustrator Dermot Flynn. Activations around the launch included the placing of message walls in airports at Frankfurt, Copenhagen and Moscow Sheremetyevo Terminals E and F. Such initiatives will aim to keep Irish whiskey’s dominant name ahead of a determined pack including Bushmills, Tullamore Dew, Beam Suntory’s Cooley brands and a host of new arrivals that will emerge in the next few years.

WORLD WHISKY INTEREST IN world whisky from Kentucky to Midleton to Yamazaki is making this one of the most dynamic spirits categories in travel retail at the moment. It has diversity in terms of style and provenance plus – even more crucially – marque brands such as Jameson, Jack Daniel’s and Jim Beam. According to Tim Young, marketing director for Brown-Forman Global Travel Retail, India, the Middle East and Africa, Jack Daniel’s is now the number three spirits brand by volume in global travel retail (IWSR figures) – and the company is sensing big growth opportunities “across all regions” in the future. Alongside the targeting of emerging market consumers, particularly travellers from the BRIC economies, Brown-Forman is aiming to inject new life into the less dynamic European markets, most notably with the launch of Jack Daniel’s No. 27 Gold Tennessee Whiskey, the brand’s first double-matured offering.

www.thespiritsbusiness.com

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Doing their duty The TFWA World Exhibition & Conference is back for its 30th year, and promises to pack in more vital business opportunities for spirits brands looking to triumph in travel retail IT’S A landmark year for the TFWA World Exhibition & Conference. Not only is this the biggest show in the event’s history, with over 6,300 delegates expected to descend on Cannes on the French Côte d’Azur, 2014 also marks the exhibition’s 30th anniversary. Held once again at the Palais des Festivals et des Congrès, this year a week later than usual on 26-31 October, the annual travel retail spectacular is the highlight event of the year for brands establishing or growing a presence in the competitive sector. Brand owners have been working feverishly over the past few months to ready their portfolios for showcasing at TFWA Cannes, with many choosing to use the prestigious annual event to launch products that will be exclusive to travel retail. “The build-up to this major annual event is always intense,” says Patrick Bouchard, TFWA vice-president. “It is vital to have the product, the packaging and the sales pitch

all perfect because if you miss this boat, you miss the best opportunity to do business in duty free and travel retail. “The build-up to this major annual event is always intense. Each brand wants to showcase its most innovative and exciting products and indeed many of them choose this platform to launch world ‘firsts’ and travel-retail exclusives.” Show organisers are expecting over 470 exhibitors at the event, who will all be competing for the attention of travel retail buyers, distributors and press moving through the show’s various “villages”. To mark its 30th year, TFWA Cannes will take a look back at the past three decades during its World Conference on Monday 27 October, which will feature keynote speeches from Air France-KLM chairman and CEO Alexandre de Juniac; General Colin Powell, 65th US Secretary of State; Andrea Guerra, CEO of Luxottica; and Erik

Juul-Mortensen, president of TFWA. Don’t miss the birthday reception held immediately after the conference in front of the Palais, courtesy of the city of Cannes. Meanwhile, this year’s workshop line-up will focus on Latin America, the threat of counterfeit goods and inflight sales trends. Wander through the exhibition’s villages and meet new business contacts, or if it’s new spirits products you’re after, we’ve taken the graft out of your search and listed the most interesting launches at TFWA Cannes 2014 on the following pages. As always, The Spirits Business will be hosting its Travel Retail and Vodka Masters Beach Party on Monday on the beach outside the Carlton Hotel. Make sure you RSVP to daisy@thespiritsbusiness.com to gain entry. This year’s party will also be extra special, as we reveal the winner of the inaugual Travel Retail Spirits Buyer of the Year Awad.

www.thespiritsbusiness.com

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TFWA CANNES PRODUCT SHOWCASE

COMPANY: DRAMBUIE STAND: L64, GREEN VILLAGE PRODUCT: DRAMBUIE Continuing its communication of the Taste of the Extraordinary campaign, Scottish whisky liqueur Drambuie is unveiling new, limited edition and vibrant monochrome zig-zag bottle. Available in one-litre bottles, the shrink-wrapped bottle will be available to purchase just ahead of the Christmas period in key airports around the world, with an exclusive release in the UK, Spain, Asia and Switzerland in October. WHAT THEY SAY: “The A Taste of the Extraordinary campaign was initially designed to take Drambuie in a bold new direction, introducing the spirit to a new generation of drinkers; the unveiling of this limited edition bottle in global travel retail will achieve this.”

COMPANY: RÉMY COINTREAU STAND: 1A, MARINE VILLAGE PRODUCT: RUSSIAN STANDARD ST. PETERSBURG EDITION VODKA Russian Standard will unveil its latest limited edition sleeve in the form of a tribute to the “Venice of the North”, St. Petersburg. The limited edition, which will be available exclusively to travel retail stores worldwide from November, is opulently decorated with a design inspired by the city’s famously artistic heritage. It will be the second Russian Standard edition to feature a unique special edition sleeve. WHAT THEY SAY: “This St. Petersburg Limited Edition sleeve will target the gifting opportunity and build on the brand’s overall success.”

COMPANY: UNDERBERG AG STAND: K19, RED VILLAGE PRODUCT: UNDERBERG GIFT TIN 2015 The 10th annual Underberg Gift Tin pays homage to the cultural destination of the Netherlands, with each side depicting the individual charms of its four major cities and provinces: Amsterdam, Rotterdam, Aalsmeer and Zeeland. Now something of a collectors’ item since its launch in 2005 with the depiction of Italy, the tin comes filled with 12 miniature bottles of Underberg German bitter. WHAT THEY SAY: “Since its launch in 2005, which featured an Italian theme, the Underberg gift tin each year has showcased designs and culinary tastes from a specific country. The new 2015 edition is dedicated to one especially charming country: the Netherlands!”

COMPANY: LA MARTINIQUAISE-BARDINET STAND: G54, YELLOW VILLAGE PRODUCT: LABEL 5 GOLD HERITAGE The latest release from Label 5 blended Scotch whisky is Label 5 Gold Heritage, a unique blend of peaty malts and grains, some of which are aged for more than 20 years. Created with the same packaging design cues as Label 5 Black, the new expression is a more premium entry with an RRP of US$40. It will be unveiled at TFWA Cannes, and rolled out to the US followed closely by China and then Australia. WHAT THEY SAY: “Building on the traditions of Label 5, we have hand-selected whiskies from different ages and casks which marry together to produce a wonderfully balanced blend. The result is an exceptionally smooth whisky loaded with fruit, spice, warm vanilla oak and subtle smoke, which offers a unique taste experience.”

www.thespiritsbusiness.com

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TFWA CANNES PRODUCT SHOWCASE

COMPANY: INTERNATIONAL BEVERAGE STAND: S2, MARINE VILLAGE PRODUCT: ANCNOC BLACK HILL RESERVE AND BARROW International Beverage is giving its Highland single malt Scotch whisky anCnoc a travel retail focus this year with two new no-age-statement launches in the form of Black Hill Reserve and Barrow. Black Hill Reserve, named after Knockdhu Distillery, which means black hill in Gaelic, is matured solely in first-fill American oak casks, and is described as having notes of citrus, green apples, ground spices and pear drops. Barrow meanwhile will be the first peated expression of anCnoc available in travel retail. Both expressions are available in one-litre bottles with RRPs of £39.99 and £49.99 respectively. WHAT THEY SAY: “It’s very exciting to re-launch the anCnoc brand for 2015. These 2 exceptional new anCnoc expressions further demonstrate our portfolio commitment to global travel retailers and the duty free channel.”

COMPANY: STOLI STAND: D3, BLUE VILLAGE PRODUCT: STOLI NIGHT EDITION 2014 SPI Group is unveiling its second limited Night Edition of Stolichnaya Vodka, which visibly changes when chilled to 15°C (60°F). The one-litre frosted glass bottle has elements printed in temperature-activated ink, making designs associated with partying and celebration come to life once the bottle is chilled enough. The bottle will be introduced to select airports at the end of this year with a further roll out from January 2015. Its introduction will be supported by “spectacular” point-ofsale material and activations. WHAT THEY SAY: “Our sales increased by 350% over the same period last year, with Night Edition accounting for 60% of the increase. With such positive sale figures, we are very confident that this new, innovative edition will be just as popular – if not more.”

COMPANY: UNDERBERG AG STAND: K9, RED VILLAGE PRODUCT: AMARULA GOLD South African drinks group Distell launched its clear, goldencoloured Amarula Gold during 2014, and will showcase the new innovation for the first time at TFWA this year. The 30% abv spirit, made using the wildharvested fruit of the marula tree, the liqueur builds on the success of its umbrella brand, Amarula Cream. WHAT THEY SAY: “Amarula Cream is globally a very popular product. It is the second biggest cream liqueur worldwide, one of Impact Databank’s top 100 premium spirit brands and one of the most frequently purchased spirit items in travel retail. Given Amarula’s brand pull, we were anticipating widespread interest in Amarula Gold but nowhere near the levels we’ve seen.”

COMPANY: LA MARTINIQUAISE-BARDINET STAND: G54, YELLOW VILLAGE PRODUCT: BARDINET XO BRANDY New to La Martiniquaise-Bardinet’s French brandy portfolio this autumn is a Bardinet XO Grand Cru Wine Cask Finish, a limited edition that’s being unveiled at TFWA Cannes. Matured for at least six years in oak casks, the brandy is given a further maturation in Bordeaux grand cru wine casks from Saint-Julien (Médoc), before being bottled at 40% abv. The expression joins the existing VSOP and XO editions in the Bardinet range, which has been growing above 30% year-on-year since 2010. WHAT THEY SAY: “An incredible depth of flavour combining fruit, gentle spices and hints of oak. A well-balanced nose, aromatic persistence and mature fruit and oak notes create a perfect taste experience.”

www.thespiritsbusiness.com

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TFWA CANNES PRODUCT SHOWCASE

COMPANY: ILVA SARONNO STAND: K1, RED VILLAGE PRODUCT: DISARONNO WEARS VERSACE Following the success of its partnership with fashion house Moschino in 2013, Italian liqueur Disaronno is teaming up with Versace for its latest release in travel retail this October. The brand, owned by Ilva Saronno, expects its Versace-designed bottle to match or exceed the 1.5 million bottle sales achieved by the Moschino edition last year. WHAT THEY SAY: “Versace is one of the world’s leading international fashion houses, with its iconic logo instantly recognisable on fragrances, clothes and accessories. We see this collaboration as very positive for Disaronno in our ongoing aim to stay fresh and innovative.”

COMPANY: IAN MACLEOD STAND: L7, RED VILLAGE PRODUCT: SMOKEHEAD ROCK EDITION Scottish distiller Ian Macleod will be unveiling a new expression of “rock n’ roll” whisky Smokehead at TFWA Cannes. Smokehead Rock Edition, which will be a travel retail exclusive, comes presented in a skulladorned bottle embossed and debossed to create an interesting 3D effect. Bottled at 44.2% abv, the single malt Islay Scotch whisky is described as “seaweedy and intensely peaty” and “not for the faint hearted”. WHAT THEY SAY: “The presentation tin celebrates Smokehead’s affinity to rock music and reaffirms the brand’s unique position within the Single Malt category. Smokehead is vigorous and unapologetic about its big and intense peaty flavours.”

COMPANY: LA MARTINIQUAISE-BARDINET STAND: G54, YELLOW VILLAGE PRODUCT: POLIAKOV FLAVOURED VODKA RANGE Poliakov, one of the world’s best-selling vodkas with 1.2 million case sales annually, has attempted to “bypass flavour fatigue” with its new flavoured vodka range. The brand has upgraded its classic flavours using natural aromas to “ring a bell with each and every one of us” plus a new packaging design. As well as the new Vanilla flavour, the range also consists of Mandarin, Lemon, Green Apple, Cranberry, Peach, Caramel and Strawberry. WHAT THEY SAY: “A known Parisian barman has created a cocktail for each of the eight flavours. These cocktails intend to enhance each flavour, while offering an accessible recipe to enjoy at home with your friends.”

COMPANY: JANNEAU STAND: K62, GREEN VILLAGE PRODUCT: JANNEAU LUXURY ARMAGNAC RANGE Following its debut appearance at TFWA Cannes last year, Armagnac Janneau is returning once again with updated packaging for its entire range, including its VSOP, XO Royal and older expressions, including vintages. Despite making its first appearance last year, Janneau is among the first export brands in Armagnac and the leading Armagnac in travel retail in Western Europe, Eastern Europe, Russia and the Gulf, and is now expanding into Asia Pacific. WHAT THEY SAY: “Janneau Grand Armagnac will be presenting all new luxurious and contemporary packaging, a new Company logo with a new graphic design which will be more assertive and more memorable for consumers.”

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TFWA CANNES PRODUCT SHOWCASE

COMPANY: LOUIS ROYER STAND: K16, RED VILLAGE PRODUCT: LOUIS ROYER VS AND VSOP COGNACS Stop by the Palais des Festivals’ Red Village for a visit to Louis Royer Cognacs’ stand for a taste of the house’s exceptional range of award-winning products. Among the portfolio on offer will be Louis Royer’s VS and VSOPs, both of which attained a Gold medal at The 2014 Cognac Masters. WHAT THEY SAY: “With a history of 160 years, Louis Royer is the story of a French family and considerable expertise in the heart of the Cognac region. A multitude of secrets gives Louis Royer Cognacs a refined quality and a very special personality.”

COMPANY: BROWN-FORMAN STAND: M65 & M70, GREEN VILLAGE PRODUCT: JACK DANIEL’S US whiskey producer Brown-Forman will be showing off Jack Daniels’ first assistant master distiller, Chris Fletcher, at its stand at TFWA this October. Having adopted the role in January 2014, Fletcher will accompany master distiller Jeff Arnett in showcasing the brand’s travel retail expressions, including No. 27 Gold and Master Distiller Series. WHAT THEY SAY: “While he briefly visited the TFWA Exhibition in Singapore, Fletcher will begin his official travel retail duties in Cannes where he will conduct whiskey tastings and meet with Brown-Forman customers and members of the news media. Fletcher is the grandson of the fifth Jack Daniel’s Master Distiller, Frank Bobo.”

COMPANY: WALDEMAR BEHN STAND: H52, GREEN VILLAGE PRODUCT: DANZKA APPLE Get a sneak preview of Danish vodka Danzka’s first new flavour for 10 years: Danzka Apple. Described as having a flavour of “crisp green apples” with a long body, the clear new expression is designed to be served over ice with soda, lemonade or ginger ale, or alternatively in an Appletini. It joins aluminium-bottled Danzka’s already comprehensive range of classic flavoured vodkas that includes Citrus, Currant, Grapefruit and Cranraz. WHAT THEY SAY: “Danzka Apple is not a flavour that was developed because we had to come up with something new; it was developed because we see a real request for apple. We are going to the root of basic but delicious flavours.”

COMPANY: GODET COGNAC STAND: A1, BLUE VILLAGE PRODUCT: COGNAC NO.1 The House of Godet Cognac will use TFWA Cannes to launch a new style of Cognac designed “to be mixed with virtually anything and by virtually anyone”. Cognac No.1, in its sleek, minimalist, square bottle – a signature of the Godet house – is a blend of young Cognacs described as “round, velvety, deep and long”. Despite having been run for 14 generations, the House of Godet has gained a reputation for moving with the times, having even creating a Cognac, named Antarctica Godet, from a grape almost untouched by the industry, Folle Blache. WHAT THEY SAY: “Cognac No.1 is a Cognac of a new genre; the cocktail of the Gentleman. Exit vodka, rum, gin – the new thing will be Cognac. Cognac No.1 aims to conquer the heart and glasses of the most demanding cocktail consumers.”

www.thespiritsbusiness.com

L RETAIL M VE RA

S TER AS

THE T

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GOLD

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THE TRAVEL RETAIL MASTERS 2014

OFFICIAL WATERS OF

The best of the jet-setters The exciting, high-tempo travel retail market has forged some fantastic spirits that left our judges at The Spirits Business Travel Retail Masters no less than very impressed, writes Melita Kiely THE ALLURE of travel retail buying simply cannot compare to any other market space. With a plethora of exclusive, high-end products vying for shelf space nowadays, travel retail outlets have matured into coveted global platforms for brands to showcase some of their best liquids. It’s a growth that was recognised at The Spirits Business Travel Retail Masters 2014, which attracted a record number of entries encompassing brands within a variety of spirits categories, from vodka and gin to rum and Tequila. Hosted at Drake & Morgan’s most recent London opening, The Fable, the judges consisted of Tom Aske, co-founder of Fluid Movement; Sandro Lhys, assistant bar manager at Harvey Nichols OXO Tower;

Eugene Bacot, founder of Voice PR and former drinks journalist; Adam McCulloch

Travel retail outlets have matured into coveted global platforms

bar manager of The Cadogan Arms; Tobias Gorn, director of Chapman and Gorn; and

Becky Paskin, editor of The Spirits Business, who chaired the judging group. Leading the tastings and setting the standard on the day was Vodka, which scooped seven awards. “It’s interesting that judging within the vodka category has changed and people are clearly looking to get more character from the spirit, rather than a vodka that’s odourless and tasteless,” commented Aske. “Flavour and character is prominent across the board; at least 50% of those vodkas had clearly discernable aromas and flavours.” One Master was awarded to Purity Vodka (40% abv), while Snow Queen Vodka, Tovaritch!, Stolichnaya Vodka Elit and Purity Vodka (43% abv) took home Golds. Moving on to Vodka Travel Retail

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THE TRAVEL RETAIL MASTERS 2014

THE TRAVEL RETAIL MASTERS 2014 Category/ Company Product name Vodka Purity Vodka Purity Vodka (40%) Calibre Brands Snow Queen Vodka Tovaritch & Spirits International Tovaritch! SPI Group Stolichnaya Vodka Elit Purity Vodka Purity Vodka (43%) Diageo Smirnoff White Fraternity Spirits Boker Vodka

Master Gold Gold Gold Gold Silver Silver

Travel Retail Exclusive Vodka Diageo

Smirnoff White

Gold

Gin Bruichladdich Distillery Co Inver House Distillers

The Botanist Caorunn Gin

Master Gold

Tequila Fraternity Spirits

Tequila Corralejo 99,000 Horas Añejo

Master

Cognac Beam Suntory

Courvoisier Extravagance

Master

Bourbon Beam Suntory

Jim Beam Signature Craft 12 Year Old

Silver

World Whisky Distell

Three Ships Premium Select 5 Year Old

Master

Exclusive, while there may have only been one entry into the category it did little to deter the judges’ high expectations. Proving that exclusivity and quality go hand in hand, Smirnoff White was awarded a Gold medal. As the spirits switched to Gin, the flight proved itself to be a mighty medal contender, accumulating one Master for The Botanist and a Gold for Caorunn, which was a “good example of why not all gins

Award

‘Travel Retail is an exclusive market with higher-end products worth people’s time’

need to be juniper-led”, according to McCulloch. “It’s pleasant for a Martini or gin and tonic, but it would be lost in a Negroni,” he added. Progressing onto darker spirits, next up was Tequila. The top accolade of a Master was bestowed upon Tequila Corralejo 99,000 Horas Añejo, due to its “sweet vanilla oakiness with fresh agave, with a hint of tobacco and liquorice”, which made for a “well-rounded spirit”. Towing the line was the Cognac category, which saw Courvoisier Extravagance also walk away with a Master medal to its name. “It’s very well balanced with plenty of flavours going on,” said Fluid Movement’s Aske. “It delivers on the palate exactly what it delivers on the nose.” Edging into the wide world of whisky, first to tantalise our judges’ palates was Bourbon and a solid silver for Jim Beam Signature Craft 12 Year Old. Just one whisky hailing from South Africa was included in our World Whisky category, Three Ships Premium Select 5 Year Old, which despite its young age grabbed a Master. “This was a very pleasant whisky demonstrating the quality South African distilleries can achieve in whisky,” remarked Paskin. Among the premium blended Scotches, there were one or two that left the panel feeling a little underwhelmed. Nonetheless three Golds were procured for The Naked Grouse, The Black Grouse and The Black Grouse Alpha, plus a Silver for Black Bottle, about which Aske said: “I would gladly drink it if I was given a dram in an airport.” The Premium Single Malt Scotch whiskies produced an eclectic selection of flavour profiles such as nori and seaweed, unusual to the category but worthy of four medals including a Gold for Tomintoul 16 Year Old. As the judges ventured on to SuperPremium Single Malt Scotch, an excitable energy trickled into the room. From no-agestatements to peated styles, the round heralded high praise for being “the best category so far in the competition”. Hardly surprising then that two Masters were given to Bruichladdich Octomore 6.2 and Bruichladdich Port Charlotte PC11, plus a further two Golds for Glenmorangie Dornoch and Glenmorangie Signet. “It shows that, being no-age-statement,

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THE TRAVEL RETAIL MASTERS 2014

THE TRAVEL RETAIL MASTERS 2014 Category/ Company Product name Premium Blended Scotch Whisky Highland Distillers The Naked Grouse Highland Distillers The Black Grouse Highland Distillers The Black Grouse Alpha Burn Stewart Distillers Black Bottle

Award Gold Gold Gold Silver

Premium Single Malt Scotch Whisky Angus Dundee Distillers Tomintoul 16 Year Old Burn Stewart Distillers Ltd Bunnahabhain Eirigh Na Greine Bruichladdich Distillery Co Bere Barley 2006 Bruichladdich Distillery Co The Organic Scottish Barley

Gold Silver Silver Silver

Super-Premium Single Malt Scotch Whisky Bruichladdich Distillery Co Octomore 6.2 Bruichladdich Distillery Co Port Charlotte PC11 The Glenmorangie Company Glenmorangie Dornoch The Glenmorangie Company Glenmorangie Signet

Master Master Gold Gold

Single Malt Travel Retail Exclusive Beam Suntory Laphroaig An Cuan Mor Burn Stewart Distillers Bunnahabhain Erigh Na Greine Ian Macleod Distillers Glengoyne The First Fill 25 Year Old Beam Suntory Laphroaig QA Cask William Grant & Sons Glenfiddich Cask Collection Range William Grant & Sons Glenfiddich Cask Collection Range Bacardi Global Travel Retail Glen Deveron 20 Year Old William Grant & Sons Glenfiddich Cask Collection Range Morrison Bowmore Auchentoshan Heartwood Morrison Bowmore Auchentoshan Springwood

Master Master Master Gold Gold Gold Gold Silver Silver Silver

Ultra-Premium Single Malt Scotch Whisky Bruichladdich Distillery Co Black Art 4.1 Ian Macleod Distillers Glengoyne The First Fill 25 Year Old

Master Master

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age isn’t necessarily a sign of quality in this instance,” observed Gorn. And with that, the standard of Scotch on offer continued to climb as the Single Malt Scotch Travel Retail Exclusives took their turn. With a mixture of complex and simple flavours ranging from subtle smoke and spicy notes to raisins, chocolate and orange, no fewer than 10 medals were delegated to the entries, including a multitude of Masters for Laphroaig Au Cuan Mor, Bunnahabhain Erigh Na Greine and Glengoyne The First Fill 25 Years Single Highland Malt. “A key thing in this round is the variety of characteristics on show, but the most important thing is that everything on show is of exceptional quality,” noted Aske. “The flavours varied, which made it extremely hard to judge, but it demonstrates the versatility of the Scotch industry to produce a range of flavours and styles.” Rounding off the Scotch whiskies were the Ultra Premiums, which excelled in the competition. Two Masters were awarded for Bruichladdich Black Art 4.1 with its “heavy character” and Glengoyne The First Fill 25 Years Single Highland Malt for its “exceptional complexity” spearheaded by sweet fruits, raisins and dates. “As expected, they were exceptional,” commented Lhys. “They were slightly different styles, but there was no disappointment in this category.” The day’s tastings concluded with Liqueurs, which generated a mixed bag of

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THE TRAVEL RETAIL MASTERS 2014

THE TRAVEL RETAIL MASTERS 2014 Category/ Company Liqueurs Mozart Distillerie

Product name

Award

Mozart Chocolate Cream

Master

Travel Retail Design and Packaging Bacardi Grey Goose VX Bacardi Aberfeldy 18 Year Old Soyuzprodexport Legend of Kremlin U'Luvka U'Luvka Vodka Ian Macleod Distillers Glengoyne The First Fill 25 Year Old Burn Stewart Distillers Bunnahabhain Erigh Na Greine Beam Suntory Courvoisier Extravagance

Master Master Master Gold Gold Silver Silver

Travel Retail Point of Sale Campaign Beam Suntory Jim Beam

Master

THE JUDGES

Left to Right: Sandro Lhys of OXO Tower, Tom Aske of Fluid Movement, Becky Paskin of The Spirits Business, Adam McCulloch of The Cadogan Arms, Eugene Bacot of Voice PR and Tobias Gorn of Chapman and Gorn

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reactions. While one disappointed with its watery appearance and “confusing” aroma, it was a Master for Mozart Chocolate Cream and its “authentic, multidimensional” flavour. The judges then diverted their attention to the matter of Design and Packaging. Shelf stand out is highly important, particularly on the overcrowded duty free shelf, so it was encouraging to see three Masters, two Golds and two Silvers awarded. Last to find itself in the hot seat was the Point of Sale Campaign, which saw Jim Beam receive a Master, particularly for its striking, innovative and interactive activations. Looking back over the course of the day, McCulloch reflected: “Travel Retail is an exclusive market with higher-end products worth people’s time for that long-haul flight. It is still clearly a market full of diverse, high quality products, which was shown today through the extensive range of awards.” sb

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SPONSORED PROFILE

Designed to last Productos Finos de Agave is readying itself to redesign its flagship Campo Azul Tequila as it continues its commitment to quality

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DESPITE A wave of challenges arising from recurrent agave shortages, Campo Azul Tequila has not only managed to remain self-sufficient, but it has also stayed true to its Mexican heritage. The origins of the brand date back to 1996 when entrepreneurs Ricardo López and Jorge Hernández decided to channel more than 30 years of experience as blue weber agave producers into crafting a “superb quality Tequila”. The result was the founding of Productos Finos de Agave, and with that Campo Azul Tequila, their flagship brand. Born out of the region of Los Altos de Jalisco, in the town of Jesús Maria – the inaugural location in the Jalisco highlands where agave was first harvested – Campo Azul prides itself on its exclusive taste and superior quality, attributed to the use of its own yeast for fermentation. Created with research institute The Advanced Study and Research Center of the National Polytechnic Institute, the brand prides itself on not using commercial yeast, allowing total control and individuality flavours incomparable to other Tequilas on the market. Compared to some, the brand is still relatively young in the grand scheme of things, but that hasn’t stopped it from growing into the eighth-largest Mexican Tequila producer, according to latest figures from ISCAM. Unsurprisingly, Campo Azul has also amassed a throng of global quality awards cementing its fine reputation in the industry. Sixteen years since its initial creation and Campo Azul is readying to undergo a design transformation to better communicate the range of products to consumers, across its range of blanco, reposado, añejo and extra añejo. Among those to receive a redesign are Campo Azul Clasico, Campo Azul Premium and Campo Azul Selecto. “Our quality has remained the same for 16 years,” commented Alejandro López, sales director and chief operating officer of Productos Finos de Agave. “People recognise Campo Azul as a brand that is not only about marketing; we gain new consumers through word-of-mouth publicity. We want to be seen as a company that only produces products with high standards in all aspects and as a serious, ethical and responsible company for all our clients in every country.” Next year will see the range expand even further with three new products scheduled

for launch: Campo Azul Platinum, Campo Azul 3 Woods and Campo Azul Gran Reserva. The Platinum expression will be a colourless Añejo Tequila, or “Tequila Cristalino”, while the 3 Woods release will be a blend of three different aged Tequilas from American oak Bourbon barrels, Cognac barrels and Oporto barrels, offering a “complex” tasting Tequila. And with the industry’s rapacious thirst for aged products continuing to grow, Gran Reserva – the first ever special reserve release – will offer consumers a 45-month aged Tequila in a fine French glass decanter. However, it is not just Campo Azul driving growth, and with a further 25 brands included within its portfolio, Productos Finos de Agave has its sights on new markets that it believes will see the company move into the top five Tequila companies in the next decade. “We continue to win new consumers and clients in more than 25 countries where we export directly,” López added. “Our service and the quality of our products talks for our company and we have not lost one single client in 10 years – this means something. “If we continue to adapt our products and keep up our excellent service and responsibility, then I see Productos Finos de Agave in the top five Tequila companies in the next 10 years.”

‘Our service and the quality of our products talks for our company and we have not lost one single client in 10 years – this means something’

Advertisement Promotion

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Bacardi rum goes back to its roots BACARDI HAS been supporting the launch of its new white sipping rum, Bacardi Gran Reserva Maestro de Ron in global travel retail with a series of summer Havana-themed activations. Pop-up in-store bars featured throughout the summer months in European destination airports including London Heathrow, London Gatwick, Barcelona, Malaga, Amsterdam, Copenhagen, Frankfurt, Vienna and Antalya. Bacardi Gran Reserva Maestro de Ron became the first spirits brand to use the new “contentainment” space in World Duty Free Group’s new store at Heathrow Terminal 2. “We have delivered a great promotion that has accelerated the launch and brought real excitement to the rum category,” commented Aude Rocourt, regional director Europe for Bacardi GTR.

Becks unveils Haig DAVID BECKHAM and Simon Fuller launched the first travel retail activation for Diageo’s Haig Club single grain Scotch whisky in September. The drinks group, ex-footballer and music mogul partnered with Duty-Free Shop at Singapore Changi airport on a month-long exclusive launch that featured photo booths, tastings and signature cocktails. Eye-catching adverts featuring Beckham with the already iconic square blue bottle were on display for the first time ahead of its global roll out later this year.

Edrington set to land Americas deal EDRINGTON, OWNER of Cutty Sark Scotch whisky and Brugal rum, is in final discussions with World Equity Brand Builders (WEBB) to establish an exclusive distribution partnership in the Americas and Caribbean travel retail. The group’s existing distribution agreement in the sector with Rémy Cointreau GTR is due to expire on 15 January 2015. With WEBB “strategically headquartered” in Miami, Florida,

Edrington hopes the new partnership will bolster its brands’ performances in travel retail going forward. WEBB has handled the group’s marketing and distribution in the Caribbean for the past four years. Paul Ross, president and CEO of Edrington Americas, said: “We look forward to announcing plans that will deliver even greater growth for Edrington’s premium brands in this dynamic and growing channel.”

Racing start for Martini BACARDI MARTINI had a treat in store for Formula One fans by giving them the chance to meet Williams Martini Racing team driver Felipe Massa. Travellers through Barcelona Airport on 27 August queued up outside the World Duty Free Store in Terminal One to meet the racing legend, have their photograph taken and merchandise signed. His appearance was timed with peak interest in F1 racing in Europe ahead of the Italian Grand Prix at Monza on 7 September. Bacardi Martini announced its sponsorship of the Williams team in March 2014.

Retailer Dufry secures Nuance takeover for $1.7 billion DUFRY COMPLETED its acquisition of The Nuance Group for CHF1.55 billion (US$1.66bn) on 9 September, making the travel retailer the largest in the world. Once Dufry fully integrates Nuance into its operations, it will have a presence on

five continents and in 63 countries, with around 1,700 shops in 239 airports. It expects to generate its first synergies from the merger in 2015. Julian Diaz, CEO of Dufry, said: “With the Nuance acquisition we’re continuing

our global strategy of profitable growth and diversification. The combination of Dufry and The Nuance Group strengthens our concession portfolio. It further adds countries and operations that fit well with Dufry’s regional strategy.”

www.thespiritsbusiness.com

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TRAVEL RETAIL BULLETIN

Thompsons eyes TR partnership THOMPSONS, THE Bordeaux-based eaux-de-vie specialist, is looking to break into the duty free sphere through a retail operator partnership. Already distributed in several European domestic markets, including France, the UK, Belgium and Germany, founder Simon Thompson is keen to move the group’s brandy range into travel retail. “I’m looking to secure attention for the brand in travel retail,” Thompson said. “Thompsons is positioned to do successfully in that environment, which is an industry I know quite well. I’m looking for a strategic partner who would like exclusive rights to the brand and will put it in a number of airports.” Thompson is in the final stages of developing a range of Sauterne caskfinished Scotch whiskies, including a 1996 Isle of Arran, as well as a Bordelais Gin made using regional botanicals such as vineyard peach and pine. Thompson believes that as a whole, his portfolio is primed for success in travel retail.

Courvoisier in Christmas spirit CHRISTMAS IS clearly already on its way, as drinks group Beam Suntory has announced the launch of Courvoisier Extravagance Cognac as a travel retail exclusive expression. Set for release in November in an effort to capture the Christmas gifting market, Courvoisier Extravagance pays homage to the first Napoleon-quality Fine Champagne Cognac produced by the famous house during the early 1900s. The Cognac will launch through distributor Maxxium Travel Retail initially in November,

with an activation at Amsterdam’s Schipol airport, and also in Madrid with World Duty Free Group. It will then launch in December at London Heathrow Terminal Five ahead of further activations across European airports in 2015, with an RRP of €89 for 700ml.

Luxury spirits showcase for Singapore THE DALMORE 45 Year Old and the fourth edition of The Macallan Masters of Photography are just two Scotch whiskies being showcased by luxury retailer Duty Free Shop Group at its fourth Masters of Wines and Spirits collection in Singapore. Over 80 rare pieces from 65 of the world’s wine and spirit houses will be on

display at DFS stores at Singapore Changi airport this November. Among the spirits being showcased are the new Glenlivet Winchester Collection 1964 50 Year Old; Highland Park Orcadian Vintage Series and 50 Year Old in the Cabinet by John Glavin; and Johnnie Walker’s Epic Dates.

JD gives gold standard JACK DANIEL’S Tennessee whiskey is giving away a kilo of gold to promote the launch of its new No. 27 Gold whiskey in Dubai Duty Free. The Brown-Forman-owned brand’s Gold Reward promotion was open to travellers purchasing any bottle from the Jack Daniel’s range at Dubai Duty Free store in Terminal Three of Dubai International Airport during September. The kilo of gold itself was on permanent display in the store for the duration of the competition. A winner will be drawn in October. The permanent introduction of Jack Daniel’s No. 27 Gold whiskey was introduced to duty free earlier this year in Australia.

Vinexpo announces staff shakeup ahead of Tokyo show WINE AND spirits exhibition Vinexpo has appointed two new directors amid a period of “significant changes” and the launch of a Tokyo show. The trade show has appointed Mathieu Vanhalst as sales director, having spent

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seven years working with TFWA in Cannes and Singapore. Richard Guyon has also been selected as Vinexpo’s new marketing director. He joins the show with experience working with the likes of hotel group Relais & Chateaux.

The appointments come just ahead of the launch of Vinexpo Nippon in Tokyo on 1-2 November 2014. Due to be held at Prince Park Tower, the exhibition is designed specifically for the Japanese market.

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Laphroaig leap with latest launch MAXXIUM TRAVEL Retail has introduced a limited edition Laphroaig Brodir Port Wood this month, building on the Islay single malt Scotch brand’s exclusive travel retail range. The new expression – a 48% abv double matured whisky rested in exBourbon barrels and ruby Portseasoned European oak casks – is the second in a series of special annual limited editions. It follows Laphroaig Brodir 13 Year Old, which was launched at the Viking Line Whisky Fair in 2012. Laphroaig Brodir Port Wood is now available in European travel retail at an RRP of €110.

Johnnie still struts as the best-seller

DIAGEO’S JOHNNIE Walker Scotch whisky has maintained its position as the bestselling travel retail spirits brand despite experiencing a sales decline in 2013. According to figures released by International Wine and Spirit Research (IWSR), the blended whisky brand saw a volume sales decline of 4.5% last year, dropping from 2.3 million nine-litre cases, to 2.2m due to “massive declines” in key Asia Pacific markets. Its nearest rival, Pernod Ricard-owned Absolut vodka, also declined in the travel retail market, dropping 10.4% from just

over a million case sales to 897,500 in 2013, with the biggest loss coming from the Americas. In the IWSR’s table of top 10 travel retail brands, Jack Daniel’s saw the most substantial growth, with sales of Tennessee Honey building total brand revenue by 20%, overtaking Chivas Regal as the third bestselling travel retail brand. Total volumes of spirits in the travel retail market increased 1.4% globally in 2013, to reach 21.6m nine-litre cases, with the top 100 brands accounting for 85% of these. However, the IWSR also recently reported that trends across the global duty free market have reversed as Asia Pacific reports the sector’s first volume declines in five years, dropping 4.4%. The Americas and Europe meanwhile continued their upward trend, reporting “healthy growth”.

Campari catching eyes with exclusive ICONIC APERITIVO brand Campari has unveiled its first exclusive travel retail packaging, inspired by Milan’s business centre Fiera Milano. The striking red gift box, which features eight interlocking Perspex sheets surrounding a bottle of Campari, pays homage to Milan’s architecture and design heritage but is almost an artwork in itself. Andy Holmes, global travel retail director, Gruppo Campari, said: “We want to celebrate our signature brand in the aperitif category by applying a specific and unique package to it in GTR.” First launched in major European airports in late August, the pack is said to have had “great success” in Rome in particular.

William Grant & Sons’ stag-do across European hotspots WILLIAM GRANT & Sons has installed five crystal stag heads in key airport locations as part of a £1 million Glenfiddich marketing programme. In collaboration with The Nuance Group, the stag heads have been placed

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in Zurich, Lisbon, Antalya, St. Petersburg and Arlanda airports. Andre de Almeida, director of Europe Travel Retail at William Grant, said: “Travel retail is a fundamental pillar in William Grant & Sons’ strategy and – as

one of our core brands – Glenfiddich is key to the ongoing growth and development of our business. “The incredible Crystal Stag Gondola has proved to be one of our most alluring and attractive merchandising units.”

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- EAST ČKA ER BI

www.armagnac-castarede.fr

Level 1 - Stand K5 Red Village/ Village Rouge TFWA CANNES 2014

GOLD

DKA MAST VO E

ARMAGNAC CASTAREDE

ROPE - T EU H

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THE VODKA MASTERS 2014

OFFICIAL WATERS OF

Raising the standard Is vodka shedding its chameleon character in favour of flavour? Becky Paskin finds that the focus on neutrality is dying out in The Vodka Masters 2014 IT’S NEVER been more important for vodka brands to be on top of their game when it comes to spirit quality. With a never-ending stream of new products joining rank – mostly from the craft industry – the vodka category is somewhat overcrowded. There was a time when promises of multiple distillation and fanciful filtration techniques were enough to draw the eye of the average consumer who was dazzled by rows of brands on supermarket shelves, but as the world becomes more discerning it’s the flavour that’s really starting to count. And it seems producers have really taken note. The entries into this year’s Vodka Masters demonstrated a notable shift away from nondescript, chameleon-like qualities toward spirits with more flavour, body and character. “The Vodka Masters 2014 illustrates a growing trend for vodka to

move beyond umpteen distillations and filtration through unicorn’s tears to a focus on the basics: good distilling methods and quality ingredients,” noted spirits writer David T. Smith, who assisted me in chairing the judging this year. Joining Smith’s team at London’s Kensington Place restaurant were Logan Toguri, bar manager at One Canada Square; Matt Armitage, co-founder of Craft Cocktail Club and Imants Zusmanis, bar manager of Kensington Place. With me were Adam McCulloch, bar manager of The Cadogan Arms, and Sebastien Kasyna, assistant bar manager of Coq d’Argent. As one of the largest Spirits Masters competitions in the series, we kicked the day off bright and early with the Standard entries, which pleasantly surprised the judges considering their low price points.

Three Golds and a Silver medal were awarded to the selection, with some demonstrating “surprising complexity” and considered “good speed rack mixing spirits”. Stepping up a price category the judges took on the Premium round, which with one of the largest and most varied selections of vodka, drew the highest number of awards. A remarkable 17 medals were presented here, seven of them Masters for Russian Diamond, Zubrowka, Standing Stones, Sobieski, Blackdown Sussex, Black and Consequent Vodka, representing a high level of quality from a number of countries, including England and Norway. “There were a lot of complex flavours in this round and most offered good if not outstanding value for money,” noted McCulloch. Having begun on such a high note, our judges didn’t think the competition could

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THE VODKA MASTERS 2014

THE VODKA MASTERS 2014 Category/ Company Standard Starfish Russian Standard Saimaa Beverages Starfish

Product name

Award

Leaf Vodka made from Rocky Mountain Mineral Water Russian Standard Original Finsky Leaf Vodka made from Alaskan Glacial Water

Gold Gold Gold Silver

Premium RSG Trading LLP Russian Standard Spirit of the Lakes Blackdown Artisan Spirits Arcus TJ Beverages Altia Unique Spirits SL Bacardi SPI Group Universal Brand Tovaritch & Spirits International Top Spirits Remedia Distell Arcus William Grant & Sons

Russian Diamond Imported Vodka Zubrowka Vodka Standing Stones Vodka Blackdown Sussex Vodka Black Consequent Koskenkorva Vodka Santamanía Eristoff Vodka Stolichnaya Vodka Dannoff Tovaritch! Sobieski Vodka Ston Mainstay 54 Vikingfjord Reyka

Master Master Master Master Master Master Gold Gold Gold Gold Gold Gold Gold Silver Silver Silver Silver

Super-Premium Strathleven Distillers Soyuzprodexport Moet Hennessy SPI Group Studer & Co AG Fuzzy’s Spirits LLC Calibre Brands Ltd Purity Vodka Purity Vodka Moët Hennessy Pur Vodka Global Products Douglas GB Drinks Ltd

Valt Single Malt Scottish Vodka Legend of Kremlin Belvedere Vodka Unfiltered Stolichnaya Vodka Elit Studer Swiss Classic Vodka Fuzzy’s Ultra Premium Vodka Snow Queen Vodka Purity Vodka (40%) Purity Vodka (43%) Belvedere Vodka Pur Vodka Tonino Lamborghini Vodka AK-47 Vodka Element29 Wheat Vodka

Master Master Master Master Gold Gold Gold Gold Gold Gold Gold Silver Silver Silver

Russia Tovaritch & Spirits International Soyuzprodexport Russian Standard Vodka Russian Standard Vodka Kremlin Award

Tovaritch! Legend of Kremlin Russian Standard Platinum Russian Standard Original Kremlin Award

Gold Silver Silver Silver Silver

Eastern Europe Russian Standard Vodka Moët Hennessy Babicka Vodka International SPI Group

Zubrowka Belvedere Babicka Original Wormwood Vodka Stolichnaya Elit

Master Gold Gold Gold

get any better, but the standard continued climbing into the Super-Premium round, which demonstrated a notable leap in quality. “Evidently we have entered the elite of vodkas,” remarked Armitage. “There were some great, flavoursome examples and at least one outstanding example of vodka purity. This was a round of very interesting, unique spirits, and highlights a trend for more flavour.” Overall the Super-Premium set drew 14 medals, including four Masters for Valt Single Malt Scottish Vodka, Legend of Kremlin, Belvedere Unfiltered and Stolichnaya Elit. “There was great complexity in these vodkas that are outstanding examples of the textbook balance between character and smoothness,” added Smith. The price bracket categories concluded, our panel moved on into rounds defined by geographical location, with regions divided into Russia, Eastern Europe, Europe, Scandinavia and Rest of World. First up was Russia, which despite being the birthplace of vodka elicited a weak reaction from the judges, who found little variation in style and deviation from traditionalism. “Russia seems to be living 20 years in the past where vodka still tastes of nothing,” McCulloch noted. “They are all good quality

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THE VODKA MASTERS 2014

THE VODKA MASTERS 2014 Category/ Company Europe Blackdown Artisan Spirits Purity Vodka TJ Beverages Magic Spirits GMBH Purity Vodka Latvijas Balzams Unique Spirits SL SPI Group SPI Group Global Products GB Drinks Ltd La Martiniquaise Studer & Co Universal Brand

Product name

Award

Blackdown Sussex Vodka Purity Vodka (40%) Consequent Premium Vodka Magic Crystal Premium Vodka Purity Vodka (43%) Riga Black Vodka Santamanía Stolichnaya Vodka Stolichnaya Elit Tonino Lamborghini Vodka Element29 Wheat Vodka Poliakov Premium Vodka Studer Swiss Classic Vodka Dannoff

Master Master Master Gold Gold Gold Gold Gold Gold Silver Silver Silver Silver Silver

Scandinavia Altia Plc Purity Vodka Purity Vodka Saimaa Beverages

Koskenkorva Vodka Purity Vodka (40%) Purity Vodka (43%) Finsky

Gold Gold Gold Gold

Rest of World Distell Pur Vodka Phillips Distilling Starfish Starfish Fraternity Spirits Tzfat Spirits of Israel

Mainstay 54 Pur Vodka Prairie Organic Vodka Leaf Vodka made from Alaskan Glacial Water Leaf Vodka made from Rocky Mountain Mineral Water Boker Vodka Aviv

Gold Gold Gold Gold Silver Silver Silver

www.thespiritsbusiness.com

vodkas, but in representing the same style they don’t tend to stand out.” The diversity improved in the Eastern Europe set which also included two flavoured vodkas: Zubrowka, flavoured with bison grass, and Babicka, which is flavoured with wormwood. The latter, the judges felt, was very well balanced despite its punchy flavour, and would work well as a rinse for a Martini or to replace absinthe in a Sazerac for a woodier result. This small selection drew just four medals, albeit a Master and three Golds. Moving even further west still, the standard improved further. As the judges began analysing the vodkas from Europe, their faces lit up immediately. “What an impressive round,” remarked Smith. “Europe has proven they can make a pretty decent vodka outside of Russia and Poland. The flight showed the creativity of European distilleries and how they can encapsulate flavour in vodka.” A total of 14 medals were awarded here, with the highest accolades going to England’s Blackdown Sussex Vodka, Sweden’s Purity and Germany’s Consequent, although a decent performance was also given by Latviabottled Stolichnaya and the Spanish newcomer Santamanía.

THE VO D

L RETAIL M VE A RA

ERS ST

STERS MA

THE T

MIU

SUPER PR EM

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THE VODKA MASTERS 2014

THE VODKA MASTERS 2014 Category/ Company Organic Purity Vodka Purity Vodka Tovaritch & Spirits International Phillips Distilling Company Unique Spirits SL Starfish Starfish

Product name

Award

Purity Vodka (40%) Purity Vodka (43%) Tovaritch! Prairie Organic Vodka Santamanía Leaf Vodka made from Alaskan Glacial Water Leaf Vodka made from Rocky Mountain Mineral Water

Gold Gold Gold Gold Gold Silver Silver

Micro Distillery Purity Vodka Purity Vodka Pur Vodka Unique Spirits SL

Purity Vodka Purity Vodka Pur Vodka Santamanía

Master Master Gold Silver

Smooth Purity Vodka William Grant & Sons Tovaritch & Spirits International Fraternity Spirits SPI Group SPI Group Saimaa Beverages Fuzzy's Spirits LLC Purity Vodka Moet Hennessy Universal Brand JT Beverages Latvijas Balzams Latvijas Balzams

Purity Vodka (40%) Reyka Tovaritch! Boker Vodka Stolichnaya Stolichnaya Elit Finsky Fuzzy's Ultra Premium Vodka Purity Vodka (43%) Belvedere Dannoff Consequent Amber Gold Riga Black

Master Master Master Master Master Master Gold Gold Gold Gold Gold Gold Silver Silver

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Scandinavia performed equally well, eliciting four Gold medals and a positive response from the judges. McCulloch remarked: “There was a nice variety of flavours, which were very enjoyable all the way through. It’s nice to see Scandinavia coming through so far in vodka; they are doing quite a good job of it.” When it came to assessing the entries from the rest of the world the judges felt Europe still holds the trump card. Vodkas from outside the continent were deemed to be well-made, balanced and demonstrating some interesting flavours, but just fell short of living up to their European counterparts. Four Gold medals and three Silvers were awarded nonetheless. The regional categories complete, it was time to assess vodkas demonstrating the niche USPs of organic and small-batch production, both of which use processes that can prove fiddly or awkward, either because of strict regulations or lack of space. However, the vodkas entered into both categories demonstrated both sectors’ ability to overcome such obstacles and provoked a positive response from the panel. “There was some amazing diversity

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THE VODKA MASTERS 2014

THE VODKA MASTERS 2014 Category/ Company Flavoured White Spirit Scream Retail

Product name

Award

Thunder Toffee Vodka

Gold

Flavoured Vodka Semper Idem Underberg Distell Ladoga Group Distell Distell La Martiniquaise Mozart Distillerie Altia Plc La Martiniquaise

Grasovka Premium Zubrovka Mainstay Island Fusion Czars Original Grapefruit Mainstay Tropical Fusion Mainstay Exotic Fusion Poliakov Lemon Mozart Chocolate Vodka Koskenkorva Vodka Blueberry Poliakov Strawberry

Master Master Master Gold Gold Gold Gold Silver Silver

in both rounds; all were extremely good products,” said Armitage. “The Microdistillery round shows the excellent and versatile products smaller distilleries are producing, while choosing organic does not necessarily mean a reduction in quality or flavour. In fact, the entries were indistinguishable from non-organic.” One of the most popular rounds of The Vodka Masters competition is Smooth, in which entrants are specifically marked on their texture with those demonstrating a soft, even palate with little spiciness earning the highest medals. The idea with this category is that the vodka is recommended to be drunk on its own or over ice. Despite a strict stance from the judges, who ruled out vodkas demonstrating any harsh finish whatsoever, six Masters, six Golds and two Silvers were awarded. McCulloch remarked that the category was the most challenging round of the day, “because it’s not categorised on flavour, more so leaning toward this idea of an ideal vodka that’s very neutral, crowd pleasing and middle of the road”. While some flavour was still apparent among the set, it seemed smoothness in vodka comes at the cost of a decent nose. The final round of the day however had no difficulty in the aroma department. For the first time in a couple of years, the Flavoured Vodka and Flavoured White Spirit categories drew the fewest entries, with those participating presenting some very traditional flavours such as lemon, grapefruit and strawberry. The standout entries this year, all of which

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gained a Master medal, were Grasovka Premium Zubrovka, Mainstay Island Fusion (hazelnut and spice) and Czars Original Grapefruit. All three demonstrated a good balance of flavour with no artificial qualities and offered a palate that was a solid representation of the flavour printed on the bottle. A special mention has to be made to Mozart’s Chocolate Vodka, its dry, cocoa flavour and relative lightness on the palate earning it a Gold medal. With the competition at an end for another

year, it’s clear to see how the category has already evolved over the past 12 months. Vodka is no longer attempting to be a bland spirit, suitable for mixing in any kind of cocktail; brands seem to be taking their individual flavour more seriously. Whether designed to be sipped or mixed, vodka is upping its game in the quality stakes. With so much competition in the category, which is only set to grow in line with the craft spirits movement, the phrase “quality will out” has never been so apt. sb

THE JUDGES

From left to right: Adam McCulloch, Imants Zusmanis, Sebastian Kasyna, Becky Paskin, David T. Smith, Logan Toguri and Matt Armitage

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THE SPIRITS

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Poised for Scotch success French drinks group La Martiniquaise-Bardinet is throwing its weight behind its successful Scotch whisky portfolio LA MARTINIQUAISE-BARDINET is poised for considerable expansion to meet the continued global demand for Scotch whisky. The France-based drinks group is already the fifth largest Scotch producer in the world, with its two signature blends, Label 5 and Sir Edward’s, selling 2.5 million and 1.4m cases respectively. With a global footprint spanning 100 countries, La Martiniquaise-Bardinet is already very well established within the Scotch whisky category, but has no plans to take its foot off the gas just yet. The group has invested heavily in its Scotch portfolio over the past 15 years, from small but effective packaging redesigns to the opening of environmentally sympathetic

distilleries, bottling plants and new maturation warehouses. In 2008 it acquired the 117-year-old Glen Moray single malt whisky distillery in Elgin from The Glenmorangie Company, to both supply its blended brands but also to further establish the group’s presence in the single malt category. Just two years later the drinks group opened Starlaw at its First Blending Company site in Bathgate, Scotland’s seventh active grain distillery and the first built since 1964. “It is very unique to have distillation, maturation and bottling in the same place, making the Label 5 First Blending Company a leading and high performing site,” says Sylvia Bernard, group international marketing director.

When La Martiniquaise-Bardinet acquired Glen Moray it was producing 2.2m LPA (75,000 casks). Following an expansion in 2012 its capacity was taken up to 3.3m LPA (90,000 casks) with the installation of two new pot stills, but with global demand for Scotch whisky continuing, distillery manager Graham Coull (pictured above) quickly found further investment was needed. The group now plans to increase capacity further to 6m LPA (130,000 casks) by the end of 2015 with the addition of two extra pairs, making five pairs in total. “Glen Moray is one of our strategic brands on a group level, even though it is still quite small at 90,000 cases,” explains Bernard. “Its main markets are the US, UK and

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The stills at Glen Moray Distillery in Elgin

Label 5 whisky

Australia but we are seeing very good expansion of the brand there, so now we just need to invest in the distillery capacity and help grow the volume. “Our ambition is to grow Glen Moray as the leading mainstream single malt brand with the Classic core range, the Aged Collection and our Cellar Collection. We also intend to launch special cask finish editions to initiate consumers in the richness of single malts.” While Glen Moray is the child star of the La Martiniquaise-Bardinet family, Label 5 and Sir Edward’s are the big brothers, who having achieved 25.8% growth between 2008-2013, are unwaveringly vital to the group’s Scotch whisky strategy. The establishment of the environmentallyfriendly Starlaw grain distillery four years ago will put La Martiniquaise-Bardinet in a strong position when it comes to control over its supply. “This is the first year we are becoming independent enough to cover our needs,” says Bernard. “We can still exchange our liquid with other distilleries, but it’s now more like a swap than a need to buy from them.” Label 5, the group’s flagship Scotch whisky, has been one of the top 10 brands for the past five years. While it’s the second best-selling Scotch whisky in France, some way behind Belvedere’s more standard priced William Peel, La MartiniquaiseBardinet claims the group’s dependency on the country is gradually decreasing

The Label 5 First Blending Company

thanks to rapid international development of the brand. With its signature #WorldMix and Catch the 5 marketing campaigns successfully accelerating the brand’s visibility in markets such as Australia, Belgium and Mexico, the group now plans to increase its investment in 2015. Plans are afoot to “make a big step” in the US, Africa (including Angola), China and Colombia through digital, TV and outdoor campaigns. Meanwhile, a new

‘Our ambition is to grow Glen Moray as the leading mainstream single malt brand’

permanent expression has been introduced to the range, Label 5 Gold Heritage, to be launched at TFWA World Exhibition in Cannes this October. “Label 5 is our key strategic brand, which is present in 100 countries with a very good position and distribution,” says Bernard. “Our plan is to strengthen investment for the next three years to generate consistent growth in that time.”

The group’s malts and blends portfolio

While Label 5 is La MartiniquaiseBardinet’s flagship, Sir Edward’s is positioned as an accessible brand. Just this year the blend was given a thorough packaging update to reinforce the brand’s key codes, highlight its Scottish origins and give it a more modern, premium feel. The plans for next year are to continue developing sales in its existing countries, such as Russia, South America and South East Asia, through an increase in below the line investment. To aid its growth across all three brands, La Martiniquaise-Bardinet has also invested heavily in maturation warehouses, with five added in 2013, bringing the total number in its stable up to 21. Next year it plans on building a further four warehouses, enabling the group to store around 600,000 casks. Within Europe the group has established a highly efficient network of distribution subsidiaries across France, Spain, the UK, Portugal, Belgium and Italy. Elsewhere its strategy is to work closely with leading national distribution partners in order to develop “large-scale plans with high expectations”. Bernard explains: “Our Scotch whisky business is a core focus for La Martiniquaise-Bardinet right now because it’s the category we have the biggest ambitions for.” To find out more about La MartiniquaiseBardinet’s Scotch portfolio, visitors are invited to its stand at TFWA Cannes, at G54 in the Yellow Village.

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Home-grown Latin flavour Young, vibrant and volatile – Latin America is a land of opportunity for premium spirits, be they international or home-grown, discovers Tom Bruce-Gardyne MANY A Caipirinha was mixed in bars around the world as people gathered infront of TVs to watch Brazil vs Germany in the World Cup semi-final on 8 July. Perhaps the less said about the match the better given

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what happened to the host nation, but the World Cup certainly gave a boost in exports for Brazil’s beloved national spirit. “In Brazil cachaça completely dominates consumption,” says Dan Mettyear, who

monitors the country as market analyst for IWSR. He has tracked the cane-based spirit’s decline as it lost 12.5 million cases in the five years to 2012. Last year it slipped another 2% to 78.5m cases. Meanwhile,

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LATIN AMERICA

vodka has been growing steadily to 8.5m cases in 2013, partly because Brazilian barmen have been shifting from the Caipirinha to the vodka-based Caiprioska. “Cachaça has quite a negative, low-life image in Brazil,” says Mettyear, who points out: “the term ‘cachaçaceiro’, or cachaçalover, basically means drunkard. As the middle classes expanded they were desperate to try something new and vodka was an easy switch for consumers.” You can buy a bottle of the top-selling Cachaça 51 for under R$7 (US$3) in a Sao Paolo supermarket. Locally-distilled Smirnoff Red might be three times as much, but it’s infinitely more accessible than Johnnie Walker Red which, according to Mettyear, costs around R$70 (US$30). The Brazilian economy officially entered recession in late August, and disposable income is being squeezed hard. However

‘The most premium part of each spirits category is what’s growing fastest’

Diageo, the lead player within international spirits, hasn’t seen much of a slowdown yet. Tania Cesar, the firm’s marketing director for Brazil, Uruguay and Paraguay, says: “The most premium part of each spirits category is what’s growing fastest, and of all categories, Scotch whisky is doing best.” Quoting Nielsen, she puts Diageo’s growth in Scotch at 28% for the year to July. Despite its price, Brazil is a huge market for Johnnie Walker, and consumers who have scaled the heights to get there are reluctant to retreat. It seems they would rather max-out their credit lines than risk being caught ordering a less prestigious brand in a bar. “It is quite an imageconscious country and people don’t want to lose face,” says Mettyear.

Whisky is traditionally stronger in the northeast of the country where locallybottled Teachers and Passport are big players in standard Scotch. Both these Pernod Ricard brands face growing competition from White Horse which jumped 55% in the year to July, according to Cesar. For her, the biggest challenge is to increase the market penetration of international spirits, which was one reason Diageo spent US$450m buying Ypióca, Brazil’s best-selling premium cachaça. Meanwhile vodka “is a very dynamic category with double digit growth,” says Cesar, who claims Smirnoff has a 60% share. Rival Skyy is also doing well with halfyear growth of 25% according to Gruppo Campari’s marketing manager in Brazil, Juliana Boteon. The group recently added Wild Turkey, Bulldog gin and Espolòn Tequila among others to its premium portfolio in what it sees as a key emerging market. This chimes with Mettyear’s upbeat assessment for international brands in Brazil. “There’s still plenty of potential for growth, despite the recent slowdown. It has been very concentrated around Rio, but there are lots of growth opportunities in interior cities as Brazilians move inland away from the congested coast. So I’d say expanding distribution will be the next phase.” One spirit not doing so well in Brazil is rum, where the declining, Pernod-owned Montilla dominates the category. Havana Club’s marketing manager, Nick Blacknell, has set his sights elsewhere. “At the moment there are easier battles to fight in markets without such strong local brands, and where there’s a culture of imported quality rum,” he says. This makes countries like Chile and Argentina much more exciting. “Ten to 15 years ago, Pernod Ricard in Chile really started to invest heavily in Havana Club and the dividends have paid off,” he explains. “It’s the market leader there and its rivals are other dark rums like Abuelo and Flor de Caña, not Bacardi.” He believes Bacardi is seen as a white spirit in the region, and says: “We hardly sell any white rum at all in South America, where we basically start with Especial and go upwards.” A key focus is Havana Club 7, as it is in Mexico where “it competes at the

Havana Club 7 competes with Scotch in Mexico

Ypióca is Brazil’s best-selling cachaça

Smirnoff Red is locally distilled in Brazil

same price as 12-year-old Scotch,” says Blacknell. “We took a deliberate superpremium strategy, and it’s paying off well.” Meanwhile, across the water in its homeland of Cuba, Havana Club sells one million cases a year, which he reckons “is about 60% of what would be recognised as bottled, quality rum.” These Cuban roots give the brand its strong Latin credentials that resonate across the entire region. Looking south to markets like Argentina, Colombia and Peru, he says: “We can be super-premium and we can also play to

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LATIN AMERICA

the values of Latin Americans. I strongly believe that’s where the future’s going to lie.” [see box] Diageo’s marketing manager in Mexico, Jeremy Kanter, feels the country’s rum market was pretty stale under Bacardi Blanco’s rule, until Captain Morgan came along. “The Captain has injected a huge bundle of energy, relevance and attitude. It’s really connected with 18-28-year-olds,” he says, adding that the brand has stolen 11% of Bacardi’s share in five years. In the super-premium rum category, Diageo is focused on its Guatemalan brand Zacapa. Across Central America whisky has been growing 12.3% CAGR since 2008 to reach 4.2m cases last year (IWSR). In Mexico, “it’s vibrant in all areas, with Johnnie Walker Red the giant of the category,” says Kanter. Of course not every Mexican whisky drinker can afford it, which explains why there is a big battle in the value sector between Pernod’s Passport, Bacardi’s William Lawson’s and

LOCAL HEROES IN EMERGING markets, consumers who have joined the middle classes are expected to celebrate their new status with international brands. This transition from local hooch to the white man’s spirit is seen as a fundamental truth in the boardrooms of multinational drinks companies. If that smacks of a certain arrogance and naivety, Havana Club’s Nick Blacknell doesn’t disagree. “If you take a simplistic picture, yes, Western brands do grow as the population gets wealthier, but intermixed with that is a hell of a lot more complexity.” For all the desirability of international brands in the region, he feels “there’s a certain ambivalence towards them because they are seen as Western.” Meanwhile local brands have done a really interesting job of reinventing themselves in many markets, Blacknell says, pointing to Chile’s national spirit as an example. “Historically pisco lost share to imported rum which replaced it as the party spirit of choice. But pisco is suddenly presenting itself in a much more sophisticated manner, beautifully packaged with artisan cues. Suddenly it’s taking a share once again in premium and super-premium spirits.” Other examples include high-end mezcal which has really taken off in Mexico City’s coolest bars, while in sheer scale nothing beats Fernet Branca in Argentina. Invariably mixed with Coke, the country’s national drink may be Italian by birth, but locally distilled it’s thoroughly Argentinian now.

‘We can be superpremium and we can also play to the values of Latin Americans’

Diageo’s Black & White. Above that, among premium whiskies, Buchanan’s is still the biggest player by some way, followed by Chivas Regal, Johnnie Walker Black and Old Parr which grew 30% last year. There is also growing interest in single malts where “The Macallan is the top-seller by volume, and definitely by value,” says Paul Ross, CEO of Edrington Americas. Ross remembers when The Macallan was selling just 2,000 cases in Asia at the time of its relaunch in 1998. “I see the same trends in Latin America as there were in Asia where Diageo and Pernod dominated with Chivas and Johnnie Walker Black. People are looking to drink better and are

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moving into single malts.” With a hefty price leap from the premium blends, he says: “The secret is not to compete head to head, but to benefit from a rising tide.” Apparently The Macallan has passed 15,000 cases in Mexico after 10 years of solid growth. It also grew 30% in Chile and is catching on among well-heeled Brazilians despite the recession and the exorbitant costs of ontrade distribution. Central American sales of Tequila are flat at 8.6m cases (IWSR). “Tequila has been under pressure in the national market with people exploring other spirits like rum, gin and vodka, but we’re still growing,” says Raffaele Berrardi, CEO of Fraternity Spirits

which owns Corralejo. The brand from the heart of Tequila country has a real resonance among Mexicans coming from Guanajuato – the birthplace of the country’s founding father, Miguel Hidalgo. While exports have obviously focused on North America where 40% of Corralejo is sold, Berradi is beginning to look south. “Distribution is not yet where we’d like it to be – it’s an on-going effort, but more and more people are discovering 100% agave Tequila.” As with all premium international spirits, if you have the quality of liquid, the right packaging and a compelling story, Latin America is brimming with opportunities. sb

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Set for sunrise Tequila has long been on the cusp of a global explosion, but with China clearly developing a thirst for the spirit, Melita Kiely asks if the future is starting to look even brighter for the spirit category WHEN THE Chinese government decided to abolish a law prohibiting the importing and consumption of high quality Tequila, a mad scramble by producers to tap into the new market space was predicted to ensue. The bilateral agreement signed between Chinese President Xi Jinping and Mexican President Enrique Pena Nieto last June – dubbed the “Tequila Pact” – offered lucrative opportunities, particularly with space to fill following the demise of Scotch whisky and Cognac as a result of China’s on-going anticorruption campaign. However, judging by

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figures released by Mexico’s Agricultural Secretariat, it’s an area that is perhaps growing faster than anyone could have foreseen. Responsible for overseeing the Tequila Regulatory Council (CRT), the Secretariat reported that exports rose by 16% to US$568 million (£355m) in the first six months of 2014, compared to the same period last year. While Americans may still guzzle more Tequila than the rest of the world combined – importing 13.9m cases in 2013 (IWSR) – it is an uncanny coincidence to see such a spike

in numbers now China’s borders are wide open. “It seems to me like there’s a huge rush for all the big brands to get into the Chinese market,” observes Jesse Estes of Tequila Ocho. “If you go to Mexico and talk to a lot of big brands, they are really focused on China – it’s a big focal point because of the potential sales due to the number of consumers developing there.” While Estes stresses China is not yet on the cards for Tequila Ocho – though he mentions it may well be in future – for Tequila titans such as Jose Cuervo, China is an exciting new

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TEQUILA TEQUILA VOLUME BY REGION 2012-13 NINE-LITRE CASES (MN) land of opportunity. “We are confident in China’s large market potential, due to an expanding target market consumer base – they are the ones with the disposable income” says Peter Gutierrez, managing director of Jose Cuervo International, who says the brand’s main focus now is to build Jose Cuervo Gold and Silver. “We have seen a very healthy growth coming out of China last year. There certainly is an opportunity in the long run for super-premium Tequila and we have that portfolio to respond to this.” For Pernod Ricard’s Olmeca Tequila, China is now seen as “central” to the overall development of the Tequila category globally. Coupled with strong sales in Europe, the brand’s recent move into several Asian markets resulted in another year of double digit growth for the brand from 2012-13. “We witnessed a significant desire among trade and consumers to learn more about Westernstyle spirits, seek information and education

‘Flavours could be a viable trend to open acceptable Tequilas to millennials’

on Tequila,” explains Lisa McCann, global marketing director of Tequila at Pernod Ricard. She continues to describe China as “hugely influential”, so with the Chinese latching on, could the country be the key to unlocking the global category revolution everyone has been waiting for? “People are starting to discover that Tequila has many faces,” says Gutierrez, “and it is starting to take on a role as a discovery spirit in a similar way to how vodka did 15 years ago. But people don’t even know there is a place called Tequila. This is a long journey, but a journey that we have started.” If that remains true then cracking the Chinese market is not the only long-term concern for producers. Tequila still accounts for less than 1% of the total market share of

Region Americas Europe CIS Asia Pacific Duty Free Africa and Middle East Rest of World Total

2012 22.57 1.53 0.61 0.64 0.35 0.19 0.01 25.9

2013 23.36 1.54 0.59 0.67 0.34 0.2 0.01 26.7

CHANGE 3.5% 0.3% -3.7% 3.9% -3.5% 1.9% 0% 3% Source: IWSR

spirits and there are still significant hurdles to overcome if the category is to catch up with the likes of Scotch and vodka. Let’s not forget producers are still in the thick of an agave shortage, which recurrently rears its destructive head from decade to decade. “Over the last 10 to15 years there has been a constant cycle of fluctuation in agave prices,” Estes explains. “Last time we had farmers letting the agave rot in the fields rather than harvest them because it was cheaper. They became very disenchanted and planted something very different afterwards. You get a big decrease in supply because of this period; you really have to plan five to eight years ahead.” While established brands can keep the shortage largely at bay by means of careful planning and planting, for smaller producers the crisis poses a very real threat. The cost of agave has shot up from around 1 peso per kilo (approximately £0.05) a year ago, to 6.5 pesos per kilo today. “The agave shortage has had a huge impact on our raw material and cost pricing which has increased 500% in the last two years,” laments Cleo Rocos, founder of Aqua Riva Tequila, which launched in 2012. “We have had to stock pile liquid in order to harmonise our end pricing to the customer. It has been a very difficult 16 months for small brands.” Many producers in Mexico have disappeared as a result and smaller family-run distilleries are suffering from a loss of customers. The impact of the shortage is expected to last at least another 18 months before finally levelling out again. “It’s always a worry,” Rocos adds. Nevertheless, it hasn’t stopped total sales volumes of Tequila increasing by 3% from £25.9m in 2012 to £26.7m in 2013 (IWSR). In the US, the rapid premiumisation of Tequila resulted in significant growth for the category, which experienced a volume

Agave prices have risen six-fold in 16 months

increase of 6.2% to 13.9m cases (IWSR) last year. It’s a growth that has been accredited to increased consumer understanding of 100% agave Tequila and a thirst for knowledge, according to Gary Ross, senior director of Tequilas at Beam Suntory. “The strong growth has been driven by increased consumer awareness when it comes to quality distinctions, as well as new products that focus on these distinctions,” he says. “The US Tequila market continues to shift toward premium and super-premium and we anticipate the super- and ultrapremium sector will boom as people learn more about Tequila, and more premium options become available.” To capitalise on this sudden surge, focus will be on 100% agave products such as Hornitos and Sauza Blue, as well as super-premium Sauza 901. Across the board, there remains great optimism that Tequila will eventually reach a point of recognition to match that of whisky and other spirits. How long this will take though is still tough to tell. “We see parallels on how people are appreciating craft,” explains Ann Stickler, SVP, managing director of Tequila at Brown-Forman, who likens the current interest in Tequila to the craft

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movement currently experienced by whisky and vodka producers the world over. Authenticity and heritage are now greatly valued traits by consumers across all categories, qualities also being sought by Tequila drinkers. “There is a sense of exploration of character, similar to what fine Bourbons or whiskies have done. Once consumers learn more about Tequila’s craftsmanship and its versatility, it will reach a point of recognition and sophistication.” Following in the footsteps of other spirits categories have been several flavoured Tequila expressions trickling into the market. But opinion is divided over whether this will act as a help or hindrance, particularly within a category looking to gain a more prestigious reputation. In the US, El Jimador made its foray into the flavoured segment in July this year, launching El Jimador Mango Mango and Mexican Lime, while Beam Suntory launched the Sauza Sparkling Margarita back in 2013. “These new offerings leverage the trend of flavoured spirits and the popularity of mango and lime Margarita flavours,” enthuses Stickler. “Flavours could be a viable trend to open acceptable Tequilas to millennials.” It is hardly surprising to see Tequila brands venture into flavoured expressions; one need only look to the recent phenomenon of flavoured vodkas to realise why. But some remain cautious about becoming infatuated with flavours. “To me, flavoured Tequila seems like a fad,” ponders Estes. “What I see the problem being is these flavoured Tequilas coming on the market do not seem to be of really good quality.” Whether flavours will have quite the same ripple effect enjoyed by vodka remains to be seen. Generally speaking though, there is widespread agreement among producers that the only way to genuinely grow Tequila’s reputation is through consumer education, which for many will comprise a combination of strong marketing tactics teamed with bartender training. What remains in dispute, though, is where Tequila will next take off. For Raffaele Berardi, CEO of Fraternity Spirits, parent company of Corralejo, “European markets are growing very slowly”, and he sees future opportunities lying in Japan, India, Spain and the UK. For others, Tequila’s untapped potential lies within the emerging markets of Brazil and Canada. But if China proves to be the key player it has so far been touted as, it could prove to be the most prosperous market place of all. sb

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A serious agave shortage is threatening some Tequila producers’ future

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The need for closure Guala Closures is offering fully customisable products for premium spirits brands aware of the importance of both marketing appeal and product consistency THE GUALA Closures Group is introducing a brand new range of closure technology in heavier weighted materials and other decorative finishes targeting premium to luxury spirit brands. The new cold-to-the-touch material can be incorporated into a wide range of finishes including push-on, screw thread, cork and NRF for selected markets and travel retail. Apart from the added luxury appeal to the brand and consumer, the robust finish of the closures allows automatic application without the fear of denting and scuffing. The Group has recently invested in the latest metalising technology at several locations around the world. Design support in the UK and Continental Europe can aid customers to engage in the development of the cap through to manufacture in aspirational lead times through a short supply chain. The Guala Closures Group, which operates in over 100 countries, offers customised advice on the manufacture of closures in an infinite range of colours, sizes, shapes and materials, to meet even the most complex requirements, enhancing brand image through direct, prompt and competent assistance throughout the world. For manufacturers, creating a unique and distinctive brand identity is a determining factor in a winning market strategy, and today the packaging is a key to this strategy. Closures, especially the decorative design for premium brands, are becoming an increasingly important part of spirits packaging, along with, of course, the choice of bottle and the design of the label. Guala Closuresâ&#x20AC;&#x2122; range for innovative, high-level products is

achieved in a totally customised way and according to the customerâ&#x20AC;&#x2122;s needs. From Scotch whisky to Russian vodka, Brazilian cachaĂ§a to typical Chinese products, and mineral water to major wine labels, including international brands and the most prestigious local products, Guala Closures Group is using the most advanced techniques of tampoprint, silkscreen, hot foil, offset, relief or negative embossing to achieve a superior quality product.

Closures, especially the decorative design for premium brands, are becoming an increasingly important part of spirits packaging

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Gordon Ramsey Steak

A wave across the water The appeal of Ty^ Nant is spanning seas, as its luxurious mineral and spring waters continue to quench the thirsts of fans and celebrities alike

IN RECENT years, one establishment to choose our product is Gordon Ramsey’s Las Vegas restaurant group Steak, selecting our visually striking glass bottles to compliment the cuisine and decor in their outlets. “At Gordon Ramsay Steak we only provide the finest in food and beverage,” said Gordon Ramsay Steak General Manager JP Teresi. “With all the bottled water options out there, Tŷ Nant water is our water of choice because it has the purest and cleanest taste, which complements our cuisine. Its visually appealing packaging also adds an elegant presentation to our tables.” The US continues to be an important

market for Tŷ Nant and we successfully showcase our product range through a variety of channels, including the powerful broadcast media by utilising its longstanding links with TV and film. Indeed, Tŷ Nant has seen its fair share of placement on screen and 2014 has been no different, with film placements and TV shows from Big Bang Theory, House of Cards with Kevin Spacey and Glee continuing to showcase our delicious water. On and off screen our bottles have continued to dominate high profile events and in November the award winning Tŷ Nant PET bottle will be at hand throughout

the Chicago art and design event, SOFA: “We’re thrilled Tŷ Nant will be providing their natural mineral water for SOFA Chicago’s exhibitors, speakers and VIPs” said Donna Davies, fair director. “This world-class brand, known for its chic, contemporary bottles and the finest water, is a great partner for this premier fair.” This event is a perfect marriage for Tŷ Nant as our bottles are a somewhat of a design inspiration and will be truly appreciated at this exhibition. Moving further south, Tŷ Nant can be enjoyed at The Grove Restaurant in Florida. It is refreshing to see that the restaurant

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SPONSORED PROFILE

SOFA Chicago

selects the very highest quality, from the kitchen to the table. “We are proud to work with Tŷ Nant, because for us and our customers, it represents the best. We are a restaurant identified by finding and working with the best possible products – whether it be ingredients in the kitchen or smallproduction, artisan wines. It would be an oversight to allow something as fundamental as our table water to be anything less than the highest quality. For that, we have Tŷ Nant.” Synonymous with design and being the ultimate in premium-bottled water, Tŷ Nant continues to enjoy attending a selection of trade shows – which is now quite a portfolio of exhibitions attended over the years. With 2014 being no exception, Tŷ Nant attended the Summer Fancy Food Show, which continues to dominate our annual calendar and Tŷ Nant general manager. Nick Taylor commented: “The Summer Fancy Food Show in New York was a must on our

calendar for 2014 as we feel this show really provides the visibility that our brand’s desire. We look forward to attending in 2015.” Exhibitions have always been a key marketing tool for Tŷ Nant and we continue to support our international markets by attending various trade exhibitions with our range. Our next exhibition takes place just outside one of the most romantic cities in

‘This world-class brand, known for its chic, contemporary bottles and the finest water, is a great partner’

A sculptural centrepiece at SOFA Chicago

the world, at Paris’ SIAL. Known as “the world’s largest food innovation marketplace of food and beverages”, SIAL poses an exciting opportunity for Tŷ Nant to showcase their products to an international audience. On display alongside the visually stunning crimson and cobalt bottles and curvaceous Tŷ Nant PET range is the chic, clear glass, minimalist water range, TAU. France is known to serve some of the best cuisines in the world; it is obvious why our beautiful products are the water of choice for so many hotels and restaurants. One such location is Musée de l’eau. Located in the exquisite Pont-en-Royans region, Tŷ Nant can be enjoyed on the restaurant’s beautiful terrace that overlooks the stunning surrounding scenery. Alternatively, the bar, which boasts over 1,800 bottles from around the world and has its very own ‘museum of water’, will serve visitors one of the very best examples of natural mineral water – Tŷ Nant.

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2014

GOLD 2014

SILVER 2014

THE SPIRITS DESIGN MASTERS 2014

RECOGNISING THE MASTERS IN THEIR FIELDS In November 2014 The Spirits Business will stage The Spirits Design Masters competition in a drive to find and reward the finest Spirits Design brands. Chaired by The Spirits Business and a panel of leading spirits specialists, the entries will be judged in a blind tasting to discover the Spirits Design Masters of 2014. Excellence will be recognised by category, as well as design and packaging.

Deadline for entries is Tuesday 4 November 2014 For more information on The Spirits Design Masters 2014 please contact Daisy Jones, associate publisher, on: t: +44 (0)20 7803 2452 e: daisy@thespiritsbusiness.com

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THE BACK

BAR

INTO THE WILD Foraging for cocktail innovation

STICK OR TWIST Is menu deviation acceptable?

LONDON CALLING The city beckons young blood

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Members’ Club THE INTERNATIONAL BARTENDERS ASSOCIATION

UK Young Bartender awarded THE UNITED Kingdom Bartenders’ Guild has named Filipe Sequeira as the 2014 Young Bartender of the Year. The Portuguese bartender from The Met Bar Old Park Lane impressed judges across the rounds with his simple cocktail D.O.M D’or Doux, which comprises D.O.M Benedictine and Tanqueray Gin along with Cardamom bitters. Eleven bartenders in total made it through to the final of the competition, held at the Andaz Hotel in London in September. In second place was Lucia Montanelli, of The Bar at The Dorchester. Her drink, Saffraiar, consisted of Cognac, Benedictine, saffron syrup and orange bitters.

All 11 bartenders were put through their paces by the judges, which included Paul Curry, Woods Navy Rum brand manager for William Grant & Sons, Salim Khoury, former head barman at the American Bar at The Savoy, Jim Slavin, UKBG administrator, and Chris Underwood, UKBG southern area chairman. D.O.M D’OR DOUX Ingredients: 35ml D.O.M Benedictine 20ml Tanqueray 10 4 Drops Cardamom bitters Method: Stir over ice and strain into a Martini glass.

IBA Guild Focus:

The Uruguayan Association of Barmen

THE URUGUAYAN Association of Barmen (AUdeB) was founded in 1954, with José Villaverde as its first president and Gabriel Tugores as secretary. Right after its foundation, AUdeB made a great effort to achieve the status of a union guild, clearly marking its objectives as the improvement of Uruguayan bartenders’

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technical skills and the cultural enrichment and promotion of the collective interests of the members of AUdeB. Just two years later the guild was granted International Bartenders’ Association membership in 1956, as the 13th member, and the second from South America. The first recorded National Cocktail Competition in Uruguay was held on 26 April 1958, organised by Cinzano Uruguay SA in the Sapphire Room of the Victoria Plaza Hotel in Montevideo. The first national cocktail champion of AUdeB was Manuel Fernández, who mixed up his winning cocktail, Don Francesco, using only domestic products. During the civic-military dictatorship of Uruguay in 1973-1985, AUdeB faced a difficult time in establishing the guild, resorting to mainly operating as a labour union with political purposes instead. During the period the level of the Uruguayan bartending profession declined, and new

professionals did not arise. After the 12 years of military regime in Uruguay ended, the remaining members of AUdeB worked on establishing the new requirements necessary to obtain legal status again. By 1991 AUdeB began to participate in courses at the Labor University of Uruguay, working anew on developing the professional skills of young bartenders. Later years show some excellent results achieved by the bartenders from Uruguay. AUdeB worked its way up in the world of flairtenders by winning six titles at the IBA’s annual World Cocktail Championship. Danilo Oribe, who won the title in 2004, 2005 and 2007, paved the first steps on the path to success for AUdeB. Oscar Perez followed in Oribe’s footsteps by winning the Flairtending Competition in 2008, before Juan Pablo Santiago won in 2010 and 2012. AUdeB is currently headquartered in the capital of Uruguay, Montevideo, with Roberto Pontes acting as president.

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MEMBERS’ CLUB

IBA Partners’ Interview:

François Renie, communications director at Havana Club International Why did you decide to join the IBA? What do you gain from the partnership? Cocktail tradition and bartending culture have always been at the heart of Havana Club, just as the city of Havana has been considered a cocktail capital since the 1920s. So a partnership with the IBA is a natural fit for us. For Havana Club, it is our goal to help nurture talent within the bartending community. We build relationships with bartenders from around the world. We have organised our very own international bartending competition since 1996, the Havana Club Cocktail Grand Prix, which provides an opportunity for entrants to discover our unique homeland and has since become an international success. We also run our own masterclasses that currently train around 3,000 bartenders every year on authentic Cuban rum. What do you offer the bartenders who are a part of the IBA? We work closely with local branches of the IBA through our Pernod Ricard distributors

to organise educational events for bartenders to learn about our authentic Cuban rum and how to serve them. We also invite them to take part in the local heats of our biennial Havana Club Cocktail Grand Prix, one of the leading cocktail competitions in the world. The competition has proved to be hugely successful in the bartending community and attracts outstanding talent every year, including our 2014 winner from the UK, Andy Loudon. What’s the best way to use Havana Club in cocktails? Well, we are Cuban don’t forget, so the cocktail rules are rather relaxed! We recommend using our Havana Club 3 Años premium white rum for making refreshing cocktails, such as Mojitos or Daiquiris. Havana Club Añejo 7 Años is perfect for other Cuban cocktails, such as Mulata and Presidente. You can also make some delicious and indulgent cocktails with Havana Club Selección de Maestros, our triple barrel aged rum.

What do you admire the most about the bartending community? I admire the creativity, audacity and exuberance of many of the world’s best bartenders. Today’s generation of bartenders impresses me with its genuine passion and willingness to learn about different spirits, cocktails and the culture behind them.

Classic Cocktail: Queen Elizabeth IN NEW York City in 1934 a panel of esteemed judges were sampling 2,000 concoctions submitted by bartenders of leading hotels throughout the US. The jury declared the Queen Elizabeth by Herbert L.Quick, head bartender of the Benjamin Franklin Hotel in Philadelphia, the most palate-tickling cocktail of all the contenders. Quick’s Queen Elizabeth consisted of Benedictine, dry vermouth and freshly squeezed lime juice, and quickly became a very popular post-Prohibition cocktail, earning Quick a listing in the Café Royal Cocktail Book, written in 1937 by W.J. “Bill” Tarling, the first president of the IBA. Benedictine was a very popular flavouring for mixed drinks, especially in the 1940s, and was a cocktail ingredient par excellence in that era. A herbal liqueur developed by Alexandre Le Grand in the 19th century, Benedictine is still produced today in Normandy. The recipe of the liqueur is a closely guarded trade secret, but has a delightful aroma of lavender honey with

hints of myrrh, saffron, aloe, arnica and a finishing note of marzipan. Quick was aware that Benedictine, with its complex flavours, works well in tandem with vermouth, probably the reason why he decided not to mix a base spirit into his drink. He admitted after his victory that he named the cocktail for his wife, not the British monarch. QUEEN ELIZABETH Ingredients: 15ml DOM Benedictine 30ml Dry vermouth 15ml Lime juice, fresh Method: Shake all ingredients together over ice and serve in a cocktail glass.

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MEMBERS’ CLUB

Take five with…

Karel van de Kuinder, Eindhoven, Netherlands A POWERHOUSE of Dutch bartending for more than half a century, Karel van de Kuinder (Hilversum, 1943) looks back today on an impressive career. Son of another famous bartender from the Netherlands (Gerard van de Kuinder), young Van de Kuinder was inspired at the age of 16 to follow in his father’s footsteps. In the Netherlands, but also far beyond its borders, Van de Kuinder’s bartending expertise is praised by many and envied by some, mostly because of his renowned collection of over 1,000 cocktail books that make experts’ mouths water. He moved to Paris in 1962, working as a commis de bar at the prestigious Hotel Scribe, where he was the understudy of Pierre Baroni, the general secretary of the French Bartenders’ Association (ABF) at the time. Van de Kuinder then returned to Amsterdam for a year before his final career switch, moving to Eindhoven where he started working as a bartender (ending

up as bar manager) at the Grand Hotel Cocagne for the next 34 years. He served as vice president of the Netherlands Bartenders’ Guild from 1989-2001 and competed for years at the Dutch National Cocktail and Long Drink Competition, taking home the trophy twice, in 1989 and 1990. He has been mixing the Caipirinha since the 70s, with his unfailing enthusiasm for the cocktail earning him the nickname “Mr Caipirinha”. What’s your favourite cocktail? It’s a drink I learned while on vacation in Brazil, the Jabuticaba Caipirinha. Jabuticaba is a Brazilian fruit, a thickskinned berry that typically measures 3-4cm in diameter. Not only is the tree outright beautiful (another common name is Brazilian Grape Tree) but the fruit – which grows right on the trunk – has a wonderful flavour and texture. Due to its extremely short shelf life, fresh jabuticaba fruit is hard to find in markets outside areas where they are cultivated. What’s your most rock ‘n’ roll moment as a bartender? It was in May 2001, when I opened Pierre Baroni’s Bartending Training School, which was a dream came true. During my career I have always kept my main focus on educating and teaching young

professionals, to show them the many facets of the bartending profession. Why are you a bartender? My father, Gerard van de Kuinder, was one of the best bartenders in Netherlands. He directed me and gave me inspiration to become a bartender too and paved my first steps on the path of my career in bartending. What’s been your career highlight? That highlight was definitely when I mixed cocktails for King Willem Alexander of Orange and Queen Maxima, some years ago when they were engaged, then still prince and princess. They were the honorary guests at a cocktail party in my hometown, where they sipped on one of my signature drinks – orange coloured for the occasion – called Sterre Punch, a mocktail with mango, orange and lime with scents of almond and pomegranate. What are your tips for success in cocktail competitions? Always come up with something unusual and unexpected to excite and tickle the judges. When I mixed Bumper to victory in 1990, I used carrot as part of my decoration and garnish. Using carrots behind the bar or in cocktail competitions was unheard of in those days and must have caught the eye of the jury.

Signature Cocktail: Lifelight VAN DE Kuinder’s favourite signature cocktail is a creation he calls Lifelight. Lifelight was created to commemorate The Living Daylights, the 15th James Bond film and the first to star Timothy Dalton as the fictional MI6 agent James Bond. The movie premiered in 1987 and Lifelight was shaken and served during the official premiere in theatre Tuschinski in Amsterdam.

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LIFELIGHT Ingredients: 15 ml Petrikov Juicy Red, 3 Barspoons Cointreau, 3 Barspoons De Kuyper Passion Fruit , 3 Barspoons Frangelico, 9ml Champagne Method: Shake vodka and liqueurs iover ice and strain into an Old Fashioned glass, filled with ice cubes. Top with chilled Champagne and decorate with pomegranate, yucca leaf and gypsophila.

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THE SPIRITUAL 2014 AWARD

TO COMMEMORATE the debut of Spiritual Bar at Vinexpo, The Spirits Business is pleased to announce the introduction of the new Spiritual Award celebrating the Most Innovative Spirits Launch of the Year With imagination in the industry knowing no bounds, this new award recognises products released in the 2014 calendar year that demonstrate supreme creativity and innovation in their category. Introduced as part of The Spirits Masters, the prestigious blind spirits tasting competition run by The Spirits Business, the winner of the Most Innovative Launch of the Year will be determined by taste, packaging, originality and creativity. It will be judged by Vinexpo CEO Guillaume Deglise, The Spirits Business and a select team of industry experts. The inaugural winner will be announced at The Spirits Masters Awards Lunch in London on 4 December. Cost to enter ÂŁ195 for the first entry and then ÂŁ150 for any others.

Deadline for entries: 5 November 2014 To enter the Spiritual Most Innovative Spirit Launch of the Year award, visit: www.thespiritsbusiness.com/spiritsmasters or contact Daisy Jones at daisy@thespiritsbusiness.com

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Slovakia’s Jana Karkusova was crowned 2014 champion

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The crowning cocktails This year’s IBA World Cocktail Championship showed the skill and the spirit it takes to make it to the top of the trade, as Becky Paskin discovered IT’S NOT every day you’ll come across 500 of the world’s finest bartenders in one room, let alone in one of the most beautiful cities on the planet. But in Cape Town, South Africa, representatives from 62 countries across the globe gathered to show off their mixing, shaking and flairing skills at the 40th annual International Bartenders’ Association (IBA) World Cocktail Championship. If ever there was proof that the ladies can shake it as well – if not better – than male bartenders, it was at the week-long competition, as Slovakia’s Jana Karkusova, a hospitality teacher for 15-18-year-olds was crowned the 2014 winner, succeeding last year’s female victor, Greta Grönholm, who hailed from Finland. In fact, her victorious drink, Geisha, was inspired by “what it is to be a woman”, albeit in a stereotypical sense – sweet, fruity, pink and delicate. Comprised of Havana Club Añejo 3 Años rum, lychee liqueur, almond syrup, toffee nut syrup, cranberry juice and lime juice, the drink was described

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by judges as a “balanced, indulgent, fruity delight”, which was more than enough to secure Karkusova the 2014 title. Each of the 99 bartenders competing at the final earned their place via a regional competition hosted in their home country by their local IBA guild. Hundreds of bartenders – all members of the IBA – participated in the hotly contested regional competitions throughout the year, with only the best sent forward with their drink to the grand final at the Cape Town International Convention Centre (CTICC). Before even entering the prestigious competition in the first place, each bartender chose one of six categories in which to compete: Before Dinner, Sparkling, Fancy, Long Drink, After Dinner and Flairtending. Every country was given the opportunity to send two bartenders to the global final – one in the extremely technical classic mixing competition, and another to the spectacular flairtending final. Participants in each of the classic categories were called up to the stage in

groups of four to silently mix and present their drink in just seven minutes in front of a cheering crowd of international supporters, as well as the judges who assessed their technical skills. On the other hand, the flairtenders were given the room to demonstrate their awesome skills on-stage one at a time. Each bartenders’ drink, even the flairtenders’, were then taken backstage to a private tasting room, where an additional panel of independent judges, made up of IBA guild presidents,

JANA KARKUSOVA’S GEISHA Ingredients: 30ml Havana Club Añejo 3 ans, 20ml Monin Lychee Liqueur, 20ml Monin Almond, 10ml Monin Toffee Nut, 40ml Cranberry Juice, 10ml Lime juice, fresh Method: Shake and strain into a rocks glass, garnish with apple, cantaloupe melon, lime, mango, radish and mint.

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IBA WORLD COCKTAIL CHAMPIONSHIP NEW IBA BOARD

TROPHY WINNERS Before Dinner: Wojciech Urbanski, Poland Sparkling: Krista Meri, Estonia Fancy: Jana Karkusova, Slovakia Long Drink: Younjung Oh, Korea After Dinner: Jimmy Jepsen Baek, Denmark Flairtending: Leonardo Galvez, Spain Team Trophy: Poland Art Deco: Marek Posluszny, Poland DNA Award: Yoelis Bueno, Dominican Republic Prestige Award: Simic Juan Pablo, Argentina

anonymously scrutinised their appearance, aroma, flavour and overall impression. Competition hosts, the South Africa Bartenders’ Association, organised the judging process so no-one assessed their own country to avoid a conflict of interest. While the classic competition saw some of the world’s greatest bartenders mix, shake and smile their way through their seven allocated minutes, the flairtenders – of which there were 44 – entertained the crowds with plenty of pizazz, charisma and commendable showmanship, despite a handful of missed catches and a few drops of spilled liquid. Among the competitors at the Championship were undoubtedly some of the world’s greatest flairtenders. In addition to the judges grades, the flairers were also marked by the audience and given an “entertainment score”. Adding up the score sheets, the final six category winners were chosen to go through to the Super Final (see above). Once again, the final six were given just seven minutes to

create their drinks in front of a live audience and panel of six judges who this time only assessed the cocktails’ aroma, taste, presentation and overall appeal. They were: Derrick Lee, president, IBA; Becky Paskin, editor, The Spirits Business; Hitesh Punchal, F&B manager, CTICC; Jurgen Falcke, advisor, IBA Board; Chadresh Singh, deputy general manager at the Southern Sun Cullinan Hotel, Cape Town; and Grant McDonald, of South Africa’s Mudl magazine. Spain’s Galvez was required only to mix his cocktail in this round, rather than show off his flair skills. After much scrutinising, and of course tasting, Karkusova’s Geisha was voted the winning cocktail of the competition. Collecting her award, the Slovakian teacher said: “I came here not expecting to win, but

The flairtenders entertained the crowds with plenty of pizazz

hoping. Then, when my name was called, it was like a heavy stone fell from my heart and I couldn’t believe it. There was a lot of pressure because all of my students at school were behind me.” Karkusova, who represented her country at the IBA World Cocktail Championship for the first time this year, wins an all-expensespaid trip to experience next year’s competition final, to be held in Sofia, Bulgaria in 2015. sb

AFTER NINE years in the role of IBA president, Singapore’s Derrick Lee retired from the position during the IBA Congress in Cape Town. Having consistently worked toward raising the standard of bartenders across the world, Lee said it was time to pass the baton on to someone else. All IBA guild presidents gathered to vote in a new president and board, who would take the organisation through to at least 2016. By some way, vice president for Europe, Ron Busman, was voted in as Lee’s successor, with the Netherlands’ Peter Jansen remaining in his position as treasurer, and Ireland’s Declan Byrne joining as secretary. Busman said: “It fills me with great pride to lead the colourful world of the IBA in future years. The IBA has been known for almost 60 years for its brotherhood, camaraderie and professionalism. “I am going to set the bar high for the future of the IBA; together with my team of board members we shall make sure that within five years the IBA will be bigger, stronger and prouder. In recent years there has been an increasing demand by young bartenders for ‘change’ and change is what we are going to initiate.” Making up the remainder of the new board are: vice president Southern Hemisphere, Alex Beaumont; vice president Europe Pepe Dioni; vice president South America Nepomuceno Ramirez Gonzalez; vice president Asia Tom Kuo; and vice president North America Eduardo Adrian Juarez.

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The new IB

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VENUE PROFILE

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VENUE PROFILE

Winter warmers from Drake & Morgan The nights may be drawing in, but the new cocktail list across the Drake & Morgan bar and restaurant group is a welcome beacon shining through the London winter LEAVING SUMMER behind has never looked so inviting with a range of winter warmers from the pioneering Drake & Morgan bar & restaurant group. With each stunning addition crafted with creativity and elegance, the new list proves once again that the D&M is on the cutting edge of cocktail trends. The cocktails, which are now available in all seven London sites, including the newest addition, The Fable, will be served alongside their classic and signature skinny cocktails. The menu has something for everyone, from the ‘Tales of the Unexpected’, combining craft beer, Tanqueray gin, a splash of sauvignon and a dash of elderflower, to ‘All That Glitters is Gold’

‘The new list proves once again that the D&M is on the cutting edge of cocktail trends’

cocktail, featuring Ketel One vodka, cloudy apple & ginger and golden vanilla sugar. Cosy up with loved ones and share the ‘Autumn Ramble’ for two, made from gin & sloe, muddled winter berries, a splash of cider and aromatic gingerbread, or try ‘London’s Burning’, which combines Kamm & Sons, peach bitters, spices and mescal, beautifully presented with a smoking cinnamon stick to really warm the heart. Ditch the chilly London streets for a wonderland of seasonal cocktails, designed by international mixologists, and priced from only £6.95 to truly welcome in the winter months in D&M style. www.drakeandmorgan.co.uk www.thefable.co.uk

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COCKTAIL BULLETIN

Floating cocktails Superfood sips

A BRITISH inventor has created the world’s first levitating cocktail machine. Designed by Charlie Harry Francis, founder of experimental events company Lick Me I’m Delicious, and in collaboration with Bruce Drinkwater, professor of ultrasonics at Bristol University, the Levitron uses ultrasonic sound waves to levitate droplets of alcohol, which can then be licked straight out of the air. “It’s a pretty powerful machine,” said Francis. “So far we’ve made a levitating gin and tonic at 35% abv and a levitating Bloody Mary cocktail using vodka at 80% abv, which will blow your socks off.

“Sound waves, even in the form of your voice, have an inherent amount of power,” Drinkwater commented. “The Levitron uses very powerful sound waves in the ultrasonic spectrum which crucially are beyond the range of human hearing, otherwise it would seriously damage your ears.” The creation is the first part of a wider project to achieve “contactless cutlery”, which the pair hope will result in levitating popcorn and eventually the ability to levitate a whole Sunday roast dinner. Currently the machine doesn’t come cheap, costing approximately £30,000, but they plan to drop the price.

AS CONSUMERS become ever more discerning about healthy options, a raw food specialist and wellness coach has opened Europe’s first “superfood” cocktail bar in Chelsea, London. Tanya Maher opened Tanya’s Café in Myhotel, offering superfood cocktails made from ethical sources, organic alcohol and fresh cold pressed juices for a “guilt-free” happy hour. She explained why the “green” venue of Myhotel was the perfect place to serve her raw, organic menu: “As a company, Myhotel began to green their way several years ago by joining forces with Health Planet, which led them to put recycling bins in all of the rooms, use bio-cleaning products in all their hotels and put their most important ally in food production – the honey bee – on their rooftops,” she said. “Raw food fits into their ever-emerging profile as a green hotel perfectly but it was the sheer decadence of flavour which was the piece of the Chelsea puzzle that seamlessly sealed the deal.” Superfood cocktails served at Tanya’s Café include the Filthy Rich, made from walnut-infused Sacred Vodka, fresh cherries, cacao powder, acai berry, vanilla bitters and maple syrup, and the Blueberry and Basil Old Fashioned, a blend of Four Roses Bourbon, fresh blueberries, basil, orange and mandarin bitters and coconut.

Cocktail competitions COMING UP... GLENFIDDICH MALT MASTERMIND: Glenfiddich has launched the 2014 Malt Mastermind competition, challenging bartenders to create a cocktail using Glenfiddich 14 Year Old Rich Oak, Glenfiddich 15 Year Old or Glenfiddich 15 Year Old Distillery Edition. The closing date for entries is 24 October, and this year twice as many bartenders (12) will compete in the final in London on 17 November. Bartenders can enter via the Glenfiddich website.

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AND THE WINNER IS... MONKEY SHOULDER ULTIMATE BARTENDER: Cocktail fans voted The Cowbell as the winning team of Monkey Shoulder’s Ultimate Bartender Challenge, comprising Stuart Bale, Abi Clephane and Ervin Tryowski. The trio won a chance to run a pop-up bar at London Cocktail Week supported by the whisky brand. BACARDI LEGACY: Ally Martin, of London’s Peg and Patriot, Benjamin Davies, of Chester’s The Suburbs, and Matt Fairhurst,

of London’s City Social, were selected as the top three “most promising” contestants in the Bacardi Legacy UK Final 2014. Over the next few months, each bartender will promote their signature Bacardi cocktail, before one is chosen to represent the UK at the competition’s global final next May. NO.3 GIN: Bartender Wayne Chapman has won the 2014 No.3 Gin Cocktail Competition, run by Berry Bros & Rudd Spirits, with a cocktail inspired by Peter Rabbit, called Mr Tod’s Redemption.

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COCKTAIL BULLETIN IN ASSOCIATION WITH

Ketel One shakes LCW

EACH YEAR, cocktail enthusiasts take over the Big Smoke as the UK’s biggest cocktail festival, London Cocktail Week (LCW) rolls into town. Teaming up with LCW as the headline sponsor for another year was Diageo Reserve Brands, which among the many hubs, seminars and cocktail offerings saw the return of the established LCW Ketel One Hub. Situated in Covent Garden, the venue housed a bespoke farmers market adorned with fresh fruits, spices, herbs and vegetables. Every day, visitors were given the chance to create their own unique Ketel

One Vodka Bloody Mary cocktail under the watchful eye of David Beatty, Ketel One UK brand ambassador. “Every good cocktail starts with a great base, and a great base is Ketel One,” said Beatty. “We had a whole mixture of people visit us from bartenders to consumers, some who knew Ketel One very well and others who were new to the brand. “Everyone had a lot of fun creating their own cocktails and we hope they understood the message we tried to get across of using Ketel One in something like a Bloody Mary, combined with fresh ingredients, to create something savoury and restorative.” Across town, Hixter Bar in Liverpool Street hosted the London Cocktail Week Tanqueray Hub, which provided interactive daily master classes headed by Tim Homewood, Tanqueray No.10 brand ambassador. Whisky lovers were treated to an evening of rhythm and blues with Colin Dunn, Diageo whisky ambassador, who led a tasting of six expressions from Islay’s Lagavulin Distillery, while Tequila fans hotfooted it over to Don Julio’s Translate Bar, which boasted the “largest and most eclectic” list of Don Julio Tequila cocktails in East London. “Our partnership sees the creations of many innovative events designed to excite drinks enthusiasts everywhere, and attract them to this unique celebration taking place in the capital,” added Nick Temperley, head of Diageo Reserve Brands, Great Britain.

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Lyan roars with new venue REVERED BARTENDER Ryan Chetiyawardana has opened a new botanyinspired bar at boutique London hotel Mondrian, called Dandelyan. Situated on the banks of the River Thames, Chetiyawardana, founder of White Lyan bar in London, opened Dandelyan at the start of October, which “re-imagines” classic drinks with fruits, veg and herbs. Guests who frequent Dandelyan will have the chance to peruse Chetiyawardana’s “field guides”, which aim to educate

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consumers about spirit experimentation and “flavour amalgamation”. Cocktails are separated into four sections: Cereal, Vegetal, Mineral and Floral. Drinks include the Evil Manhattan, a mix of Mr Lyan English botanical beer “vermouth”, Rittenhouse Bonded Rye and bitters, as well as creations such as the Dandelyan, made from Beefeater London Garden Gin, lemon, lime, dandelion capillaires and bitters. “The response has been amazing; it’s a great feeling to see people in the bar,

enjoying the drinks we’ve spent so long designing for them,” Chetiyawardana said.

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Live for the night From lighting to music and drinks, the Monaco International Clubbing Show offers everything the nightlife professional could need THE ENTIRE nightlife industry gathers together in one venue every year for the Monaco International Clubbing Show (MICS). Over 10,000 visitors from across 35 international countries converge on the Grimaldi Forum in the municipality of Monaco from 12-14 November 2014 to discover the latest innovations in nightlife entertainment. From new, exciting drinks brands to the latest technologies in sound and lighting, the annual show offers the industry a chance to do business by day, and party by night. “’Meet nightlife’s key players during the day!’ This was our challenge and one that we have lived up to and succeeded in,” says Jean-Albert Vergnaud, MICS co-founder and

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deputy CEO. “Created five years ago by professionals for professionals, we are proud to celebrate with you the MICS fifth edition on the sumptuous showcase that is Monaco.” The exhibition itself takes place in a 10,000sqm space divided between the Great Hall and Hall Ravel, with the former dedicated to the MICS LAB, a fullyequipped series of booths dedicated to emerging brands and service providers. Meanwhile, a diverse programme of conferences taking place throughout the show offers key business advice to attendees, covering subjects such as business optimisation, tourism policy, the secrets of successful communication and the evolution of drinks consumption and the

nightlife industry itself. In addition, a vodka masterclass dedicated to bartenders will be hosted by Grey Goose on the Village Premium central stage on 13 November at 6pm. Spaces are limited, but offer the opportunity to participate in the workshop led by Remy Savage, winner of the 2014 Bombay Sapphire World’s Most Imaginative Bartender competition. “We are forever striving to be closer to your needs by listening and observing, but also by constantly analysing the market in order to make this event a dynamic laboratory in which to share and discover,” adds Vergnaud. “We have seen the MICS mature thanks to the Hosted Buyers programme and the numerous conferences. We have seen the diversity of exhibitors

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grow year on year.” This year the show will welcome over 100 brand exhibitors, of which 40% are from the drinks industry. Ambassadors will be onhand to offer tastings, masterclasses and meetings with visitors hailing from across the nightclub, bar, restaurant, theatre, design, music and drinks categories. “The MICS is the showroom of preference for nightlife professionals,” says Laurent Lutse, president of the Cafés, bars and night establishments at the Hospitality Jobs and Industries Union (UMIH). “It is the prime occasion to meet and exchange with other players from around the globe. It represents the opportunity to discover emerging trends and to anticipate forthcoming changes.” MICS may provide the prime opportunity to discover new products and services by day, but by night the show becomes an electrifying DJ festival, centred around clubbing and international superstar DJs. Last year’s talent featured the likes of Afrojack, Niki Belucci and DJ Sub Zero.

“What differentiates this event from traditional fairs is its desire to combine business and entertainment,” the show’s organisers explain. “The goal is to leverage

‘MICS is the showroom of preference for nightlife professionals’

MICS will once again host the third annual NRJ DJ Awards, which recognise the best French and international DJs in the industry, as well as the 20th edition of Les Trophées de la Nuit, the nightlife industry awards hosted by French magazine Paris Nuit. The show organisers add: “This innovative concept has attracted the biggest brands and names in the international nighlife industry who come to meet qualified contacts but also to share, for the duration of the event, a moment of celebration in a friendly setting and atmosphere.”

MICS 2013 IN FIGURES opportunities for meetings by creating a continuous flow of animation in the principality from 2pm-5am, and therefore helping to encourage interaction and business opportunities.”

10,873 Visitors 116 Brands 31 Nationalities 1,008 Hosted Buyer Meetings 300 Journalists 6 Conferences

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Back to

nature Michelin-starred restaurants have foraged for ingredients for years, but now bartenders are taking a leaf from their cookbooks and discovering the practice for themselves, as Tom Aske reports

FORAGING, OR the practice of gathering wild food, dates back as far as the huntergatherer and despite its current renaissance, for quite some time it was left in the wilderness (sorry). Somewhere along the way this practice had become lost, with convenience replacing quality. Now, the ability to trace food right back to its source has gained popularity, with ‘organic’ becoming the new buzzword by which the informed consumer makes their purchasing decisions. Developments in the restaurant scene with award-winning venues such as Noma pushing the “field to table” movement have been a natural inspiration to bartenders and brands alike. Lynton Davidson, of The Botanist Islay Dry Gin, has been working on driving foraging within mixology for the last few years. “When we sat down and began to ask ourselves what was at the heart of our philosophy, we realised it was a sense of place, a connection to our island home, and a sense of creativity and play,” he explains. It is this idea of spontaneous creative freedom that’s really encouraging bartenders and chefs to rummage through nature’s back country for menu inspiration. It’s easy to see the benefits of foraging

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within mixology; an ingredient’s unrivalled freshness of course being the most obvious. The ability for a bar to associate its surroundings with the ingredients listed within its menu creates authenticity and attention to detail. It creates an association between the drink and the guest whereby they can visualise its origins. This visualisation is something perhaps natural to country-folk but for those that take the Central Line through London, this notion of origin becomes slightly more blurred. The passion for freshness is already global, with Emil Åreng, head bartender at Open/Closed in Umeå, Sweden, creating concoctions such as Camouflage, using foraged meadowsweet, spruce and birch. The drinks may take pride of place on the new bar’s menu, but he is very wary of disclosing the precious locations of his prized ingredients. “Here in Sweden it’s all about keeping secrets; people don’t tell each other where they have their certain spots for cloudberries and arctic raspberries,” he says. “You tell your son and then you take it to the grave.” It is this same secrecy and effort that has seen Åreng emerge as one of the world’s authorities on foraged mixology.

It’s surprising what you can find even as a city-dweller only minutes from home. A daily dog walk uncovers bushes full of ripe blackberries and trees brimming with rowanberry. Camomile shoots through the grass and nettles remain ignored in among the trees. Each of these ingredients alone can (with a little effort) be transformed into a useful cocktail ingredient. Nettle and fern cordials have been used for centuries as medicinal beverages and can add an interesting twist to a cocktail like a Gimlet. Rowanberries, when turned into a jelly, can provide the perfect bitter accompaniment to an Americano. These examples merely scratch the surface of foraging possibility. On a recent foraging trip to Glasgow with The Botanist’s Davidson along the sides of the canal, we were greeted by such delicacies as wild garlic, gorse flower and few-flowered leek. We even managed to find nestled among the shopping trollies and sofas an abundant supply of the infamous Japanese Knotweed. As an invasive plant it has the ability to damage footpaths, buildings and cause general disturbance, however when juiced it gives off a fantastic acidity similar to the oxalic acid commonly found in rhubarb. Replacing

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citrus fruit with the juice of Japanese Knotweed lends an unusual twist to classic cocktails such as the Sour or Fizz. This weed could serve a double purpose of eradicating and intoxicating at the same time. Foraging is all about locality and seasonality; an ever-changing canvas that provides a selection of different ingredients throughout the year is a creative bartender’s dream. Finding wild moss in Autumn or seaweed washed ashore on the coast feeds the imagination to no end. It’s when you consider locality, ingredients native to different countries and micro climates – like tropical fruits in the Caribbean, Nordic Fern in Scandinavia and the multitude of Asian spices – that you begin to realise foraging’s global appeal. Closer to home, foraged mixology is gaining a foothold in the industry with pioneering venues such as Dandelyan at the Mondrian in London focusing on sustainable, locally-sourced ingredients. The award-winning Mr Lyan has taken his ability for flavour matching and applied this to a menu that sees emphasis placed on carefully sourced fruit, vegetables and herbs, whilst incorporating modernist techniques. The Timberyard in Edinburgh has also been pushing the boundaries of foraged ingredients, showcasing cocktails such as The Rum Shrub, a delectable combination of samphire, spruce vinegar, lemon verbena and rum. It is this type of meticulous attention to detail that sets apart those embracing the art of foraged mixology, rendering their techniques and beverages non-replicable. There are numerous benefits to foraged ingredients in the bar and kitchen, although the practice’s upkeep does come at a price. As a bar operator you have to monetise the time and effort required to produce a menu from foraging. The designated forager spends entire days gathering for the evening trade, after which ingredients must then be converted into a usable format by either preservation or distillation, which takes time. “Sweden has a very short foraging season and you need to have the time to go out there looking in the woods,” says Areng. “In the summer, time is the hardest thing to find.” Considering the laborious and timeconsuming efforts required, is foraging a sustainable business practice or a non-profit showpiece for venue differentiation? The increase in drink price needed to fund an

THE WOODLAND MARTINI RHUBARB JELLY Ingredients: 1kg Fresh rhubarb 3 cups sugar 500ml Water 6 gelatin sheets Method: Cook the rhubarb in water for 20 minutes until soft. Blend into a puree and pass through a cheesecloth. Dissolve in sugar and add gelatin sheets. Place into moulds and allow to set in the refrigerator for two hours.

Ingredients: 50ml Botanist Islay Dry Gin 15ml Seaweed and moss distillate 2 x dashes Rhubarb bitters Method: Stir all ingredients and strain into coupe glass. Garnish with gorse flowers, wild moss, seaweed and rhubarb jelly.

SEAWEED AND MOSS DISTILLATE Ingredients: 200g Moss 200g Seaweed 500ml Dry Sherry Method: Allow all ingredients to macerate for 12 hours. Place in a rotovap at 30°C and 10mb pressure until the distillate has been extracted.

expert forager and an extra member of prep staff alongside the sheer quantity of wild ingredients could perhaps render wild drinks menus a non-starter. That said, there is a consumer market for it; the rawness of foraging and its prehistoric ancestry is undoubtedly intriguing. The ability to turn a happened-upon leaf or root into a drinkable ingredient creates an empowerment that has been neglected for decades. Foraged menus based on locality and seasonality communicate a true appreciation of a bar’s surroundings and skill in creating drinks that also demonstrate true individuality. “This is just the very beginning of the journey,” predicts Davidson. “The joy of foraging is that no two drinks will ever be the same.” There is certainly a compromise to be had. Featured in limited edition supply, these will sit comfortably as an addition to a sustainable menu. Foraging is most certainly here to stay and it will likely become more common among cocktail menus across the world. However, its commerciality as a solo concept needs exploring further; you’d just need to find a rent free, 10-seater bar to implement it. sb

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DEBATE

Going off-piste Should bars be willing to serve customers drinks that are not on the menu? These industry insiders give us their take on this tricky bartending conundrum

CORDULA LANGER

BARTENDER AT MONKEY BAR, BERLIN, GERMANY

NICO COLIC

BARTENDER AT RIVINGTON AND SONS, ZURICH, SWITZERLAND

‘Refusing to make a classic isn’t just bad business, it’s bad manners’

‘I want to wake people up; I want to open their eyes to all these fantastic flavours’

CONSUMERS ARE incredibly educated about cocktails these days, but that does not mean that they don’t still enjoy drinking the old classics. Drinks such as Mojitos and Cosmopolitans have become so iconic all over the world, and that is something that is never going to change; there are always going to be customers who want to drink these cocktails. As such, bartenders should be willing to serve them. Being bartenders, of course we want to be able to experiment and create new, interesting cocktails. But one of our main aims is to make customers feel welcome and comfortable as soon as they walk through the door. Refusing to make a classic such as an Old Fashioned simply because it isn’t written on the menu isn’t just bad business, it’s bad manners. If the customer is polite and friendly and asks for something that is not listed, then it really shouldn’t be a problem to cater for their preference. That’s the way I love to work – to make the customer happy. We are a service-oriented industry and customers want to be able to talk to us, relax and unwind in our bars. I don’t want to alienate someone and make him or her feel uncomfortable for asking for something they really want that doesn’t appear on a piece of paper. Any professional bartender should have extensive knowledge about classic drinks, how to make them and how to put a spin on them, especially when we have such a wide variety of different spirits allowing us to add a slight twist. Even if the drink was something I hadn’t come across before, I would be willing to look it up online and see if I could recreate it with the ingredients I have. It shows customers how skilled you are and that you really are a professional. It’s a big mistake to turn customers away because something isn’t on the menu; if the customer leaves unhappy and disappointed then there is of course a big chance that they won’t be coming back.

THE BAR industry is rapidly changing and within that we are seeing an increase in concept bars appearing on the market. Some focus on serving specific spirits such as vodka or gin, while others focus on creating bespoke cocktails that you cannot find elsewhere. If you run a venue with a strong vision, customers cannot always get their own way – you have to stay true to what you are trying to create. We opened up a bar with a clear concept that doesn’t involve traditional cocktails such as Margaritas and Mojitos, in the hope that customers visiting the bar would want what we have to offer them. It’s not that I don’t like those drinks; it’s just there are already so many places where you can get those cocktails. Shots are another thing we refuse to serve. Our focus is promoting enjoyment and appreciation of spirits, which isn’t going to happen if a customer orders a shot of cheap Tequila with salt and lime. If they find it hard to comprehend and refuse to accept that they’re not going to get their own way, we then have to find a nice way to tell them that unfortunately, they have come to the wrong place. After all, you would not go to an Italian restaurant and order an Indian, so why then would you go to a gin bar and order a rum and Coke? I want to wake people up; I want to open their eyes to all these fantastic flavours, spirits brands and cocktails available to them. On a personal level as well, I want the freedom to create something individual and one-of-a-kind without being restricted by the boundaries of traditional classic serves. By telling customers we can’t make certain well-known drinks, we are pushing them to step out of their comfort zone. I don’t often go to a bar and order a G&T. I opt to try something new or unique that perhaps I cannot drink anywhere else. So in my bar, I also want to replicate that and get my customers sampling new things for the first time.

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Mediterranean inspirations Set before a backdrop of glorious green hillsides and clear blue seas, Gin Mare’s annual cocktail competition is like no other

AT JUST four-years-old the Gin Mare Mediterranean Inspirations cocktail competition is still young at heart, but as the saying goes, age is just a number. Within a short space of time it has carved out a reputation for being one of the most tranquil and picturesque contests in the world, securing a spot in The Spirits Business’ list of Top 10 International Cocktail Competitions earlier this year. Year-on-year bartenders are invited to enter three cocktails encapsulating the Mediterranean way of life, including a Mediterranean Gin and Tonic; a Mare Nostrum creation emulating Gin Mare’s four core values of lifestyle, gastronomy, climate and escape; and for the first time in the competition’s history, a Bloody Mary built over a Red Snapper. Once the regional heats have been decided, the winners from each country board a plane to the idyllic Gin Mare Villa nestled on the hillside of Na Xamena in Ibiza. With nothing but breathtaking blue

waters spanning the horizon – enhanced by the venue’s stunning infinity pool – it is here the finalists enjoy their first true taste of the Mediterranean lifestyle. “The first day bartenders arrive at the villa, we really encourage them to relax, enjoy the pool, the bar, and get to know each other,” explains Juan Carlos Maroto, marketing director of Vantguard. “We really want them to embrace the Mediterranean way of life. We are not trying to find the biggest show off – we are trying to find who understands our message the best and can channel that through beautiful drinks.” Following a strong final, it was Thanasis Kouziokas, owner of Groove Cocktail Bar in Vólos, Greece, who was crowned the 2014 Mediterranean Inspirations victor. One of two wildcard entries this year, Kouziokas claimed the top spot with his “humble” presentation and “perfectly balanced” drinks, in particular his Mare Nostrum, The Garden Mare, a blend of Gin

Mare, Italian white vermouth, dry fig syrup, lavender bitters and lime juice. As champion, Kouziokas won €4,500 and an ambassadorial role with Gin Mare hosting up to six events in the coming year. “I am so excited to be named the winner,” expressed Kouziokas. “This is 15 years of hard work paying off and proves you should never stop or give up on what you love. I had faith in my ability, my cocktails and my knowledge of Gin Mare that I could do this. “Representing Gin Mare now is my next challenge; it’s something very new for me and I’m sure it will be very interesting.” Second place was awarded to Nico Colic of the Hotel Rivington and Sons in Zurich, Switzerland, while third place was given to Anna Martinez of Boca Chica in Barcelona, Spain, with both bartenders also securing ambassadorial roles with the brand. As a reward for all nine finalists, this year contestants were treated to an extra day in paradise with a boat trip to Formentera. “We wanted to give everyone an extra day to reconnect after the competition and reflect on the experience,” explained Jorge Balbontin, brand development manager for Vantguard. “We are not so focused on winners and losers as other competitions are; we had an amazing level of entries this year, which our finalists should be extremely proud of.”

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The Tequila twisters It’s an intimidating spirit to grapple with but there were some Swizzlers who rose to the challenge creating some memorable Tequila mixes, writes Melita Kiely IT HAS been a slow and steady shift, but over recent decades Tequila is shedding its reputation as a hangover-inducing slammer and carving a name for itself as a more sophisticated spirit. With its herbaceous, fruity notes, Tequila has proved itself to be a diverse and worthy cocktail ingredient. For the final preliminary heat of 2014, bartenders from around the world were challenged to use Borca Tequila to make cocktails under the theme Salt of the Earth. Recipes were required to play on the spirit’s earthy flavours to complement the complexity of the Tequila, be it a Blanco, Reposado, Añejo or Extra Añejo. Forming this month’s panel of judges were Bill Oddy, managing director of The Drinks Company; Dorian Meillan, general manager of bar Discount Suit Company; Mike Sweetman, UKBG London chairman; Eduardo Gomez, director of Tequila Fest UK; and Daisy Jones, associate publisher and events director of The Spirits

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Business. Tending bar on the day was Massimiliano Favaretto, general manager of Tequila bar El Nivel, which played a worthy host to the afternoon’s antics. A collection of eccentric ingredients presented themselves to begin with, including oreo biscuits, squirty cream and mini marshmallows – a polar opposite to the traditional salty, citrus flavours normally paired with Tequila. While the selection of unusual combinations presented did not please every palate, there was no denying the level of imagination brought to the table on the day. “It was great to see so much innovation in the competition,” expressed Oddy. “Tequila tends to be challenging and the contestants rose to the challenge.” Admittedly, there were some who were perhaps not as confident as others in their use of Tequila, resulting in one or two recipes that lacked in the distinct agave flavours. As Gomez noted: “Tequila is

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quite a challenging category to get right. It seems that maybe some bartenders felt a lack of confidence in using Tequila as a base spirit, so there were a few drinks where the Tequila was overpowered by the other ingredients, which was a shame.” Nevertheless, there were several stand-out concoctions presented on the day that had clearly embraced this month’s brief and had no qualms with spicing things up in the competition. Claiming the last open spot in the October semi-finals was Robb Collins, who delighted the judges’ taste buds with his “simple but tasty” cocktail, The Mehico, and his “classy presentation”. “Robb’s cocktail didn’t overdo it on the citrus and it wasn’t too sweet,” commented Sweetman. “It had a good balance to it and was nicely soft on the finish.” Second place was awarded to Philip David and his drink, The End of Thyme, which boasted contrasting sweet and spicy flavours and was praised for its “beautiful aroma and mouth feel” and potential to be paired with dinner. Coming in third place was Mihai Fetcu, who put a spin on the classic Mexican three shot cocktail, Bandera and Sangrita, to create two tipples, titled Order and Chaos. Usually drunk as an aperitif, Fetcu received wide acclaim from across the panel for his “bold, adventurous” creation. Lending his thoughts to the overall standard of the competition, Meillan concluded: “ A few were a bit ‘90s style’ – sweet and vivid – so it would have been good to see the Tequila and Wenneker used in keeping with the times. But the winners were fantastic and all true to the spirit of Tequila – it was almost too close to call”. • Next month is the semi-final of The Wenneker Swizzle Masters, when the nine winning recipes from throughout the year will be mixed by an independent bartender before going head to head as they are presented to a panel of expert judges. The top five recipes will then proceed to the grand final in November.

FEBRUARY Sid Chen – Green Hat MARCH Adriana Soley – Barcelona 1992 APRIL Mihai Fetcu – The Prospector No.2 MAY Joao Gloria – Girl’s Sin JUNE Robb Collins – Gin is King JULY Ivica Mišić – El Castillo AUGUST Robb Collins – Silk and Sand SEPTEMBER Mihai Fetcu – Fin de Siècle OCTOBER Robb Collins – The Mehico The champion of The Wenneker Swizzle Masters 2014 will win £1,000.

THE JUDGES

Left to right: Mike Sweetman from UKBG, Eduardo Gomez from Tequila Fest UK, Bill Oddy from The Drinks Company, Daisy Jones from The Spirits Business, and Dorian Meillan from The Discount Suit Company

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ROUND NINE: TEQUILA SALT OF THE EARTH 1ST: THE MEHICO, ROBB COLLINS 50ml Sierra Milenario Reposado Tequila, 5ml Wenneker Butterscotch, 5ml Monin Gingerbread Syrup, 25ml fresh lemon juice, 1 barspoon of Rowse Acacia Honey and 4 dashes Angostura Bitters Method: Dissolve the honey in the lemon juice. Add remaining ingredients, fill boston tin with cubed ice and shake vigorously. Double strain into pre-chilled Martini glass.

The Mehico

2ND: THE END OF THYME, PHILIP DAVID 45ml Sierra Milenario Blanco Tequila, 15ml Wenneker Cherry, 20ml agave syrup, 10ml red wine vinegar, 10ml fresh lime juice, 10-15ml egg white, 5ml bittermens habanero shrub, habanero pepper and 2-3 sprigs of thyme Method: Muddle thyme, lime juice and red wine vinegar. Add all ingredients and dry shake, then wet shake. Strain into coupe and garnish with thyme and a slice of habanero pepper.

3RD: ORDER AND CHAOS, MIHAI FETCU Cocktail: 40ml Sierra Milenario Blanco Tequila, 15ml Wenneker Vanilla, 20ml lime juice, 1 dash Chartreuse Elixir Vegetal and 4 basil leaves Method: Bruise basil then add all other ingredients, ice and shake well. Double strain into a pre-chilled cocktail glass. Sangrita: 60ml fresh orange juice, 25ml fresh lime juice, 15ml Monin pomegranate syrup, 3 dashes Tobasco, Âź chilli pepper sliced and 1 bar spoon Wenneker Genever Islay Cask Finish Method: Blend ingredients with a hand blender and serve in a pre-chilled cocktail glass The End of Thyme

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Order and Chaos

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Branching out Opening multiple venues isn’t just for the big corporate chains anymore, as BarChick discovers in London FOR A long time now “chain” has become something of a dirty word. These days the cool kid on the block is local, independent and authentic. We want to feel like we’ve stumbled onto something unique, made with passion, and are having an experience that can’t be replicated in every neighbourhood around town. But what if you could have that, and lots of it? In the last year or so, a bunch of bar folk, who not long ago were behind the stick slinging drinks, have opened not one, but multiple bars across London, creating their own mini empires, one venue or ready-todrink bottled cocktail at a time. The concept of a bar chain conjures images of sticky laminated menus, oversized impersonal venues and unimaginative drinks programmes – a far cry from joints like London Cocktail Club, which is all about banging cocktails, naughty barmen and a bit of dancing on the bar. There also happens to be four LCCs across London (and one more in the works), each maintaining the same solid standards yet rocking its own vibe. Owners JJ Goodman and James Hopkins, who started as bartenders at the Be at One chain, turned one successful underground cocktail den into a winning formula. For Goodman, each

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bar he opens has “afforded him more structure”. No longer tied to running each department himself, he’s left with more time to work on fine-tuning operations and furthering the company’s growth. When asked what he’d do differently he answers:

‘Everything we did was organic and unplanned and it was all a huge success’ “Nothing. You have to believe blindly in every decision that you make. If you doubt yourself for a second, it will eat you up.” Bar owner Ryan Chetiyawardana not long ago was more familiar to us as a bartender/scientist, tinkering with turning soil into spirits. But his Hoxton bar White Lyan just took home the Spirited Award for Best New International Cocktail Bar. Instead of kicking back and celebrating making the leap from gainfully-employed bartender

banking it with the babes and free booze to suit-wearing small business owner, he went and promptly launched a line of ready-todrink cocktails, debuting them exclusively at Selfridges no less, and has recently opened his new bar, Dandelyan, at the Thames-side Mondrian hotel. It’s not just specifically bars that are at it; the coffee-cocktail hangout Shoreditch Grind is this month opening its fifth venue in the new Hoxton Hotel and co-owner David Abrahamovitch explains how they’re keeping the independent vibe: “Each venue looks different to the next, has its own site and loyalty card, and is designed specifically to the neighbourhood it’s in.” When asked if they imagined it would expand so quickly he answers: “We didn’t, to be honest. Everything we did was organic and unplanned and it was all a huge success; which made us want to offer it to more people.” Probably the biggest success story of all is MEATLiquor. Scott Collins and chef Yianni Papoutsis started with MEATWagon, serving their deliciously dirty diner food in car parks in Peckham or pop-ups in New Cross. In 2012 they introduced killer cocktails to the menu and opened their first bricks and mortar venue in Mayfair to queues around the block, and they haven’t looked back. MEATLiquor developed into much more than a burger joint. With some of the youngest bar talent behind the stick, it became famous for cocktails and its party atmosphere. With eight venues now, and more set to open around the country, where does it end? One of the arguments against chains is that they monopolise the market, making it harder for independents to carve themselves a corner. But when those chains are built by independent bartending entrepreneurs themselves – rather than mega corporations – perhaps they’re created with a greater concern for the bar culture in which they were born. The likes of All Bar One and Revolution may have given bar chains a bad name, but it looks like it’s time to rethink our idea of what makes a bar chain. sb

In association with

www.barchick.com

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BARCHICK UNCOVERS… LONDON

LONDON’S BIGGEST LITTLE GUYS THREE EIGHT FOUR Coldharbour Lane, Brixton; threeeightfour.com The sister spot to Brixton Market’s most popular bar, Seven at Brixton, Three Eight Four is equally as epic, serving killer cocktails and delicious bar snacks in an industrial style hideaway. The bar is the star of the show, made out of re-used pavement lights and behind the stick they’re mixing up a whole old-school book of classics as well as an innovative seasonal menu.

CALL ME MR LUCKY Southwark Street, Bankside; thebreakfastclubcafes.com Hidden beneath The Breakfast Club in London Bridge is Call Me Mr Lucky – a debaucherous concrete den that’s all about savoury spiked cocktails, bright lanterns, secret alcoves and a hot crowd. Most of the drinks menu is tequila focused but this is no ordinary cocktail menu; the spirit is getting mixed with coconut water, black walnut bitters, fresh rocket leaves and many more unusual ingredients.

LONDON COCKTAIL CLUB Great Newport Street, Covent Garden; coventgardencocktailclub.co.uk Hidden downstairs and away from the ticket touts and the West End traffic lies the Covent Garden Cocktail Club (formerly London Cocktail Club). The low lighting and worn sofas nod to a gentleman’s club, only without the rules. The first and original London Cocktail Club shows the rest how it’s done. Happy hours run all week and the very talented barmen not only love their cocktails but know how to party.

WHITE LYAN Hoxton Street, Hoxton; whitelyan.com White Lyan takes the art of cocktail making to a whole new level. The back bar is not your usual confusion of bottles and labels, but instead a row of steamed up fridges; all spirits are house-made and cocktails prebatched. There’s no ice, no lemons, no sugar, nada. Head down to the basement for latenight partying, a DJ booth and, erm, a pole. Now that’s a party.

BARCHICK MEETS… JONNY RUSHTON Jonny Rushton worked his way through the Inventive Leisure group before leaving the world of flavoured vodka to open Seven at Brixton in 2011. Specialising in serious and experimental but wallet friendly cocktails, Seven at Brixton became the go-to cocktail bar in its ‘hood. Overwhelmed by demand, he recently opened his second South London venue, Three Eight Four, just down the road. What’s the most popular drink in your bar? So far I’d say our most popular at our new opening, Three Eight Four, is the Bombay Kitchen. Named with a tip of the hat to the previous occupants of the venue, it’s a mix of Ophir Gin, Coriander, Mango and Tabasco with side of Papadum and Chutney. Who are the bartenders to watch in London? To be honest, I personally don’t follow the “bartender scene” too closely. I know the guys at Satan’s Whiskers and Happiness Forgets are doing exciting and interesting things and always make perfect drinks. Not forgetting our cocktail creators Kieran Gray and Tom Guichard who are solely responsible for creating our cocktail list at Three Eight Four. Where is your after work bar? My after work bar would have to be somewhere like Sean’s Bar in Balham (previously Brixton) or the aforementioned Happiness Forgets; somewhere small with fantastic ingredients and staff and a real passion for making drinks. What would your desert island bottle be? Desert island bottle would have to be Goslings Black Seal Rum – not very exciting I know! Hopefully I’d be able to harvest some root ginger and fashion a rough Dark and Stormy. What will be the next big thing in London bar scene? The next big thing is a tough one. I’d like to see a homage to the 70s and 80s soon when Pina Coladas, Wallbangers and Sunrises are brought in from the cold and recreated with a twist. There’s also a huge array of Italian spirits, aperitifs and bitters that are still not well represented in London. I’d love to see a bit more use of spirits like Cynar and Fernet Branca in cocktails which are very flexible, as are aperitifs like Crodino and softs like Chinotto.

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A DRINK WITH... Eugenio Litta Modignani The political situation in Russia may be turbulent, but Tovaritch! Vodka’s CEO tells Becky Paskin his sights are set firmly on bartenders in rapidly expanding export markets

How many markets is Tovaritch! in now? Today we sell Tovaritch! in 32 markets and the brand is available on every continent except South America, which has very high tax barriers. We focus our energy on specific markets; in the past few months we signed with Massmart (Walmart group) for Eastern Africa and South Africa, which is going to enhance our presence in the region. Today 95% of Tovaritch! Premium vodka is sold internationally (including in duty free), with the remaining 5% distributed in the Russian domestic market. Where are you seeing growth coming from? So far in 2014 the US, Vietnam and England have been our top performing markets. Vietnam is an important market for Russian vodka and our local importer, Huy Phong JSC, has dedicated an important part of his staff to our brand. UK sales in the ontrade, where we work with Amathus, have quadrupled over the last 12 months. This confirms that the quality of a distributor is strategic to the success of the brand. We are also seeing a good performance in Italy, Benelux and Spain. The majority of your sales are generated by the on-trade, aren’t they? In Europe, and mainly in the UK, 98% of our sales are generated by the on-trade. Tovaritch!, with all its prestigious

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international awards, aims to be the pouring vodka for bartenders. This has been the company’s DNA since its creation in 1999. Some say bartenders have fallen out of love with vodka. Would you agree? Bartenders cannot work without vodka because it remains the base for a majority of cocktails. None of our distributors have

‘Bartenders can’t work without vodka; it remains the base for the majority of cocktails’

noticed them shunning vodka. Looking at the numbers we have, it cannot be true either. Some high-end bartenders may have the luxury to choose not to pour vodka, but in the end they will have to offer what the consumer is asking for.

The US is also an important market for Tovaritch!, but have you noticed any declines like Smirnoff and Absolut have? Traditional brands like Smirnoff and Absolut are under pressure on a global scale. They had a predominant presence in the 90s and a decline was inevitable. For our Russian vodka brand, the US market is a good opportunity to offer an original product in a market crowded with traditional and craft vodkas. Has Tovaritch! seen any effect from the tension between Russia and the West yet? No, it hasn’t. We are monitoring the situation with attention, and as CEO of the group I have to be ready with concrete solutions in case Russia is isolated. Consumers need to be able to find our brand on the international market, no matter what. Are you concerned about the political situation? Who isn’t? Let’s be pragmatic – nobody, in Russia or abroad, wants to see trade embargos or restrictions applied on wine and spirits. A psychological war seems inevitable but we hope it will not affect our business. Tovaritch! means friend or buddy in Russian; I would rather focus on the Never Drink Alone spirit than speak about politics. Nassdarovie! sb

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