Category focus

Canadian Premiums and Super-Premiums Carry the Category

By Garrett Peck

espite increased consumer interest manager for Black Velvet. Canadian are light, refreshing and imminently mixable, but it will take some time and investment in brown spirits, Canadian whisky for the category to grow. sales remain flat. Canadian sales in -owned is the leading Canadian whisky sold D in the U.S.* It sells 4 million cases – and one out of every four cases the U.S. grew only 1.6% from 2002 to 2006 of Canadian sold in the U.S. Driving its growth is the new ultra- to 15.6 million cases, according to DISCUS. premium Crown Royal XR and Crown Royal Cask No. 16, both launched in fall 2007. “So far it has been very well received as we Value brands sales decreased, though offset see consumers constantly seeking out new and interesting ways to by premium and super-premium brand growth enjoy their favorite brand,” said Ami-Lynn Bakshi, vice president at Crown Royal. which follows the general trend of consumers “We also continue to partner with lifestyle and sport brands so trading up. So while Americans may not be adult consumers can enjoy a Crown Royal experience at some of the hottest events around,” she added. This includes “King of Your drinking more Canadian, they are drinking World” experiences, such as partnering with Playboy for the Crown better Canadian. Royal Playboy Lounge at sporting events like the Kentucky Derby, NBA and Major League Baseball All-Star Games. A promotion called “Your Name Here 400” partnered with NASCAR to give a “Is Canadian whisky going to knock off ? Of course not,” fan the naming right to a NASCAR race. “Our continued media said Mike Haering of Canadian Mist. However, producers hope to support across print, television and out-of-home continues to attract benefit from the rising interest in the general whisky category. “Brown consumers and keep us top of mind,” Bakshi concluded. spirits are making a resurgence as consumers embrace more complex is the second largest Canadian whisky import. tastes like spiced rums, bourbons, and Canadian whiskies that are It hit the advertising jackpot when its sponsored #27 car, driven by mixable, especially with cola,” explained John Nichols, marketing * According to The Adams Handbook Dario Franchitti, won the steadily growing by keeping Indy 500 in 2007. This is a “an eye on basic growth,” remarkable turnaround in commented marketing manager that Canadian Club had John Nichols. Central to its done no national marketing strategy is to focus on driving campaign for twenty years. on-premise account volume, as That changed after Beam Black Velvet “tends to be the Global acquired the brand ‘house whisky’ of choice for in 2005. Beam has worked to many of our loyal consumers. build buzz around Canadian As a brand we appreciate that Club, part of their company–wide philosphy and feel it is a longer lasting emotional space of “building brands people want to talk for us.” about,” says Mike Ginal, brand manager. Its Founded in 1857, Wiser’s just celebrated campaigns feature bold, provocative taglines its 150th year. Wiser’s may be the leading and humor. “Brown spirits are Canadian whisky in Canada, but it’s just now catching on in the U.S. Although available Fresh, New Ad Campaigns making a resurgence in Florida since 1950, it wasn’t until 1999 In October 2007, Canadian Club launched a as consumers embrace that Corby, the distiller that produces hilarious print-ad campaign that is cocky and Wiser’s, began working with McCormick nostalgic at the same time. It’s called “Damn more complex tastes to distribute the product in the U.S. It Right Your Dad Drank It,” highlighting the now reaches 30 states. “We like to think as swinging days of our fathers in the 1960s like spiced rums, ourselves as the authentic Canadian whisky,” and early 70s shag carpeting and wood bourbons, and said Howard Kirke, VP of international paneling included. “As a lot of guys mature, markets. Despite a limited marketing budget, they realize their dads were right all along. Canadian whiskies it’s growing strongly via word of mouth. “It’s Canadian Club is a masculine, sophisticated, almost viral,” he shared. unpretentious ,” Ginal said. that are mixable, Kirke noted that many Wiser’s consumers Whisky has long been a man’s drink, especially with cola.” are trading up from vodka, as they are looking but Canadian Mist claims that 37% of its for beverages with more character and flavor: base is women, which is remarkable. It has “We’re more about substance than style. We been pairing photos of drinks with brand - John Nichols, marketing stress hard work over shortcuts, and character images, a combination that brand director manager, Black Velvet above all.” Wiser’s is considering expanding Haering claimed is driving a lot of interest. to consumer shows to offer sampling. “It’s “Customers are saying, ‘You gotta’ give us relatively low cost, and you can reach a lot more recipes!’” of consumers,” he explained. n Canadian Mist released new packaging in early 2008. It also has a host of programs planned for this year, including a Backyard Makeover sweepstakes that will give a complete backyard makeover to a lucky winner, while the company’s chief cocktail officer will travel the country to explain the “Science Behind the Cocktail.” The brand will also sponsor the “Canadian Mist Bob and Tom Comedy All Stars Tour” in 40 cities to promote casual fun.

Expanding the Consumer Base Black Velvet has surpassed sales of 2 million cases in the U.S.,