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NABCA Annual Conference Technavio Tequila Report $1 Billion JUNE 3, 2016 | MODERN DISTILLERY AGE VOLUME 7 | NUMBER 18 Technavio Tequila Report NABCA Annual Conference Technavio analysts forecast the tequila market Special to Modern Distillery Age – by Maggie Barchine, NABCA in the U.S. to grow at a CAGR of close to 4% during The National Beverage Control Alcohol Association (NABCA) held its 79th the forecast period, according to its latest report. annual conference in Orlando, Fla., from May 20 to 21. This year’s theme was The research study covers the present scenario and Collaboration Creates Opportunity: “Through collaboration with stakeholders growth prospects of the tequila market for 2016-2020. exist opportunities to solve problems, share solutions, reduce misperceptions “The rising demand for tequila, especially premium and better understand the nuances of issues. tequila, and extensive agave planting in the past have contributed to the growth of the market in the last five years,” said Vijay Sarathi, a lead analyst at Technavio for alcoholic beverages research. “However, rise in the prices of raw materials due to the lack of availability, the growing demand for non-alcoholic beverages in the U.S., and the highly regulated nature of the alcohol industry in the U.S. may hinder market growth.” Technavio food and beverage analysts highlight the following three factors that are contributing to the growth of the tequila market in the U.S.: • Rise in demand for premium tequila • Growing cocktail culture • Increase in demand for handcrafted tequila Rise in Demand for Premium Tequila “Tequila is a high-quality artisanal spirit that is the result of a complex distillation and aging process,” according to the report. “There has been rising demand in the U.S. for high-end, super-premium L-R: George Griffin, Past Chairman of NABCA; Roberto J. Serrallés, tequila distilled from superior-quality 100% blue President Serrallés USA; John D. Bodnovich, Executive Director, American Beverage Licensees; Julius Grant, Chief Commercial Officer, agave. Apart from its enhanced taste owing to U.S., Beam Suntory; Stephanie O’Brien, NABCA Chairman-Elect & Chairman, Vermont Department of Liquor Control; Chris Underwood, superior craftsmanship, it is also coveted as a status CEO, Young’s Market Co.; and Max L. Shapira, President, Heaven symbol, especially among the youth. Hill Brands Photography by AllPointsImages.com “Herradura, Don Eduardo and El Jimador are NABCA Chairman Stephen Larson welcomed attendees and said that for the leading brands by Brown-Forman. The sales of his term in this position it was his intent to build upon the accomplishments super-premium tequila showed a 14.8% year-on-year of prior chairs and former boards. He added that if attendees took something growth in 2014, and sales of premium tequila were the useful home with them, that this will have been a successful event. highest among other price segments (value, high-end Politics & Getting Things Done premium, and super premium) in 2014.” Emmy-winning reporter Bob Schieffer, who began his career with CBS in Growing Cocktail Culture 1969, relayed several humorous anecdotes about his career as a journalist. He “A resurgent cocktail culture has resulted in a rise shared stories about interacting with several presidents (Nixon, Ford, Johnson in demand for tequila. Demand for tequila in cocktails and others) as well as experiences he and fellow White House colleagues had is not restricted to bars and restaurants, it has also with getting interviews and footage for network broadcast. Weaved into his gained interest in homes. There is also a marked shift, presentation was his perspective about the state of politics and the media continued on page 4 today. Can Big & Small Co-Exist? Incoming NABCA Chairman Stephanie O’Brien of Vermont and past NABCA $1 Billion IPO for Cuervo? Chairman George Griffin co-moderated a discussion that featured supplier Bloomberg has reported that Jose Cuervo may and broker speakers as well as a representative from American Beverage seek to raise as much as $1 billion (or perhaps only Licensees. This panel addressed big and small businesses coexisting today as $500 million) in an initial public offering planned for it relates to craft products in the alcohol beverage marketplace and its growth the third quarter of this year. When Cuervo wants with consumers. Panelists offered their perspectives about the definition of to talk about this, Modern Distillery Age will report continued on page 4 the news. Brown-Forman Vin Divino Becomes SWS Creates Artisanal Completes González Byass USA Fine Wine & Spirits In August 2013, Spain’s González Byass, Acquisition of a family-owned producer of Spanish wines, Division The GlenDronach, sherries and spirits, acquired Chicago-based Southern Wine & Spirits of Florida (SWS- importer Vin Divino. That company’s name Florida), a division of Southern Wine & Spirits BenRiach & has now been changed to González Byass of America, has formed a new Artisanal USA. The U.S. is the fifth country where Fine Wine & Spirits division, and Laura Glenglassaugh González Byass operates as an importer DePasquale, a Master Sommelier, has been Brown-Forman has completed its along with Spain, the U.K., Germany and named General Manager. acquisition of The BenRiach Distillery Mexico. The company also has an import Company Ltd. for £281 million. The team in the Far East. The decision to control purchase, which brings three single malt its own distribution in key international Scotch whisky brands — The GlenDronach, markets is a major long-term strategy for BenRiach and Glenglassaugh — into Brown- the company. Forman’s whiskey portfolio, includes brand trademarks, three malt distilleries, a bottling plant and the company’s headquarters in Edinburgh, Scotland. Laura DePasquale “The name change reflects the completion of the transition period between Vin Divino DePasquale joined SWS-Florida in 2015 and González Byass’ previous importer,” said as Director of Fine Wine Strategy and created Len Nowicki, President of González Byass the artisanal concept and division in 2016. USA. “We now have distribution control She’ll report to Gene Sullivan, Executive Vice over the full range of the González Byass President, General Manager of SWS-Florida. portfolio and can focus solely on continuing The Artisanal Fine Wine & Spirits division to expand the company’s presence in will focus on artisanal spirits and small “With this acquisition, Brown-Forman the market.” wineries as well as new trends and brand re-enters one of the spirits industry’s most The González Byass spirits portfolio development, “combining a smaller, lighter exciting and consistent growth segments, has returned to González Byass USA with approach to the market with educational single malt Scotch whisky,” said Brown- the Lepanto Brandy de Jerez range, the events and consultative selling,” said Sullivan. Forman Chief Executive Officer Paul Soberano Brandy range and Chinchón Prior to joining SWS-Florida, DePasquale Varga. “The GlenDronach, BenRiach and Anise Liqueur. González Byass USA will also was Senior Vice President and General Glenglassaugh single malt brands are continue to import The London No. 1 Gin, Manager at The Country Vintner, specifically among the finest single malts in the world, which was released in the U.S. market by Vin focusing on the Stacole Fine Wines business. and we look forward to continue building Divino in 2014. The company has continued Before that, she was Vice President of Fine them around the globe.” to introduce several new products to the Wine Development at Palm Bay International The GlenDronach Distillery, located in the U.S. in 2016 as part of its continued push for more than a decade. hills of the Scottish Highlands, was founded into the market including Nomad Outland DePasquale achieved the Master in 1826. GlenDronach produces a range of Whiskey, which is aged in both Scotland and Sommelier Diploma in 2004 and has ultra-premium single malt whiskies and is Jerez, Spain. been an active educator, examiner most noted for its richly sherried whiskies. “We have achieved a great deal over the and speaker for the Court of Master Located in the heart of Speyside, the BenRiach past three years as a result of the relationship Sommeliers-Americas. Distillery began making malt whisky in between Vin Divino and González Byass,” 1898 and is known for experimenting with said Board of Directors Chairman Mauricio wood finishes producing whisky from both González-Gordon. “The popularity of non-peated and peated malted barley. The Spanish wine in the U.S. continues, and Glenglassaugh Distillery, founded in 1875, we’re very optimistic about the future of our is located on the coast in the northern business here.” Scottish Highlands overlooking the North Sea producing a coastal Highland malt. 2 JUNE 3, 2016 | MODERN DISTILLERY AGE my 45th anniversary and retirement. That Wild Turkey was in 1998! Here we are almost 20 years Glenmorangie later, and the two of us are still working as Celebrates Master Kentucky’s only active father/son master Partners with Chef Distiller Eddie distillers. I guess we just aren’t good enough Marcus Samuelsson th at golf to retire. Glenmorangie Single Malt Scotch Whisky Russell’s 35 Another great source of pride is my has partnered with Chef Marcus Samuelsson grandson, Bruce, Eddie’s eldest son, who for the “Dishes & Drams” pairings, as Anniversary entered the family business last year as a Dear Friends, “Glenmorangie seeks to be the first to reveal brand ambassador for Russell’s Reserve. They say time flies when you’re having single malt Scotch whisky’s potential as the Bruce is a testament to changing palates. He fun, and boy is that true. It’s hard for me ultimate food-friendly spirit,” according to a is getting people excited about rye again, a to believe it, but my son Eddie is about to company statement. spirit that has been sitting in the shadow of celebrate his 35th anniversary at Wild Turkey bourbon for far too long.
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