TheRumLab Industry Newsletter Week #43 of 2024
The Rum Lab
TheRumLab - Our main focus is Rum Education. We do so through our digital magazine, events, infographics, and more.
Luis Alfonso Ríos Master Blender at Industria Licorera de Caldas
Luis Alfonso Ríos is a chemical engineer and a specialist in industrial microbiology who has dedicated nearly his entire career to the liquor industry. He currently holds the position of Master Blender at Industria Licorera de Caldas, where he also emphasizes innovation and research in new product development. Let’s know more about him in this interview: ?
TRL: What does rum mean to you, and what made you fall in love with this drink? When did that happen?
This love affair began many years ago when we started distilling tafias with unique variations. These tafias almost laid the foundation for the character of our Ron Viejo de Caldas. Distillation is crucial for producing high-quality rum. When you distill your rum, whether using a pot still or a column still, that’s when you truly fall in love with the process. ?
TRL: What do you believe are the three essential characteristics that define high-quality rum?
First, the type of distillation; second, the aging process; and third, the blending. These three aspects are fundamental. If it is not properly distilled, it will not age effectively, and if it does not age well, you will have nothing to blend. They are essential. ?
TRL: What do you consider being the most significant benefits that the rum industry has provided to you?
The most positive thing is working for a company like Industria Licorera de Caldas is that it reinvests its earnings back into the community. Our products, both national and international, generate revenue that is allocated to education and healthcare initiatives in Colombia. This commitment to social responsibility instills a sense of pride in our work. ?
TRL: What do you believe has been your greatest contribution to the rum industry?
I believe one of my most significant contributions has been transforming the fermentation process and integrating it with the distillery operations. Engineers often concentrate on temperature and pressure, overlooking the microbiological aspects. This approach has enhanced the efficiency of Industria Licorera de Caldas while improving both quality and cost-effectiveness. ?
TRL: Speaking of passions, we know that rum is one of yours. Is there anything else you are passionate about?
Honestly, I am passionate about enjoying a good drink, not necessarily rum. I love pairing and savoring beverages, especially during my time off work. It is an experience I truly cherish. ?
TRL: What is your favorite place to enjoy rum?
I enjoy rum most in my home. I recently designed a lounge, a space for relaxation and reflection in the evening or at night. While it is not a bar, it serves as my personal sanctuary where I can concentrate and plan. ?
TRL: What is your favorite cocktail recipe?
Lately, I have been enjoying mixing rum with ginger beer. I’m not sure if bartenders would consider me crazy, but it’s a refreshing combination, perfect for the afternoons. ?
TRL: Why do you believe that educating consumers about rum is essential?
It’s extremely important. As consumers become more knowledgeable about rum, their expectations increase. With these heightened expectations, they demand more from brands. When consumers hold brands to higher standards, we, as producers, understand that honesty is essential; we do not want to deceive them, nor will we. Therefore, our focus must be on enhancing quality in our daily operations: in our warehouses, during the aging process, and in producing superior distillations and presentations.
Increasingly, presentations are setting the trend. It’s no longer just about offering quality rum; it’s about presenting it exclusively that makes opening the bottle, serving it, savoring it, and fully enjoying it a delightful experience. ?
TRL: Do you have any tips for training your palate and taste to appreciate and understand a high-quality premium rum?
I would say the first step is to cultivate a positive disposition. Recently, we conducted monthly panels and tasted various samples. The initial step is to ensure you have good-quality glass. Serving rum in an appropriate glass is crucial. If you wish to expand your knowledge, you should explore different types of rum and begin comparing them: compare lower-end rums with higher-end ones and strive to understand why you prefer one over the other. Analyze the characteristics of high-end rums, such as their aging process, the influence of wood, the degree of toasting, and the presence of vanilla, caramel, and fruity or floral notes. All of this will enhance your understanding of why you are willing to pay a premium for superior-quality rum. ?
TRL: Do you believe that a commitment to sustainability and sustainable development is essential for ensuring the success and longevity of the rum industry worldwide? Why?
Undoubtedly. Thinking in the long term is essential because everyone in the rum industry operates businesses that have the potential to last for over a century, and we aspire to be around for much longer. We are concerned not only with product quality but also with how to sustain it. This is where sustainability becomes crucial. For instance, the issue of wood is vital; we are examining the longevity of wood resources, their reuse, and environmental management within our companies. Those who neglect these considerations can be assured that their businesses may not survive beyond 10 to 15 years. ?
TRL: Is there someone in the rum industry you would like to meet? If you had the opportunity to meet them, what questions would you ask?
There are many individuals in the industry whom I would like to meet. Recently, someone from New Zealand visited me and impressed me with their proposals. Today, some people are bold enough to pursue innovative ideas, and it is fascinating to learn about their methods. Occasionally, you may want to inquire about how they achieve specific results, but in this industry, we all have our secrets, and often, they may be reluctant to share them. ?
TRL: What will your next goals be in the rum industry?
There is so much to accomplish. I am nearing retirement from the company, yet we continue to envision products for the next century. A few premium products and unique market offerings will be launched soon. Even after my retirement, I plan to remain active in my work and continue teaching. There is always more to pursue in this industry.
The rum industry is highly dynamic. Just the thought of premium rum sparks a wealth of ideas. I am currently experimenting with French barrels to create exquisite rums. There are countless possibilities to explore, all while preserving the unique character of our rum. ?
TRL: From your perspective, why is the role of the bartender so crucial in the rum industry?
The role of the bartender is fundamental. Although the rum master is often at the forefront of distillation and development, I frequently mention in conferences that many of the innovations I’ve implemented are thanks to bartenders. They have taught me a great deal. Often, they begin by saying, “Look, I’ve made rum like this, but I want this variation.”
I would argue that one of the most rewarding experiences I’ve had, aside from engaging with others who produce liquors, has been my interactions with those who mix them. This relationship is both ideal and functional; they have become great friends. I believe that the world of rum and bartending would struggle to thrive today without this connection. Without this partnership, I think we would merely be another product in the market.
TRL: Do you have any advice for the new generation? We know you’ve dedicated nearly your entire life to this industry and are about to embark on a new phase in your life. What would you say to the young people who are just starting in the rum industry?
The new generation must recognize and appreciate the wealth of experience available to them. If they aspire to become rum masters, they must dedicate themselves to extensive study, make sacrifices, conduct research, explore new technologies, and experiment with blending techniques. Most importantly, they should work with a deep respect for the standards of rum, regardless of its origin. While everyone can develop their rum profile, it is essential to honor the traditions of the craft. This is the advice I would offer to young individuals who are beginning to develop and create new rums today. ?
TRL: Website? Social Media?
Community effort: Planteray Rum
Miona Madsen – 10/22/2024 – The Spirits Business
Launched in 1999 as Plantation Rum and adorned with its world-recognised raffia-wrapped bottles, the newly named Planteray continues the brand’s tradition of exploring rum terroirs, celebrating the sugarcane plant, and the collective of misfits who turn it into ‘liquid sunshine’.
Tucked away in the cellars of Maison Ferrand in France are barrels of rum from all over the world, going through their second maturation in Cognac casks. This fine collection is nurtured by master blender Alexandre Gabriel, who stumbled upon rum in the late 1990s while selling his Cognac casks in the Caribbean. He was captivated by the delicious taste of rum and its complexity.
Each rum‐producing country has its own traditions and expertise in crafting rum. Gabriel was fascinated by how the land, climate, and people make every rum unique. This fascination led to the creation of Planteray Rum, which showcases the unique terroirs and special qualities of the spirit. Inspired by the centuries‐old practice of ageing rum in their country of origin and then shipping barrels by sea and ageing them in a continental climate, Gabriel envisioned double ageing the spirits in Cognac casks, which became Planteray’s signature.
Twenty-five years after its debut, the company now owns distilleries in Barbados and Jamaica. At Stade’s West Indies Rum Distillery (WIRD), founded in 1893 in Barbados – the island credited as the birthplace of rum – Gabriel and his team distil with some of the most iconic rum stills in the world. The distillery is now home to Planteray’s flagship rums, including the award‐winning Planteray 20th Anniversary XO rum.
“At WIRD, our seafront distillery, we found a room full of archives depicting very old records and blueprints. These unique documents, along with our team’s expertise, represent a wealth of knowledge. Some team members, such as Digger, have worked at the distillery for over 40 years, and his father worked there before him. Imagine the expertise and endless possibilities for rum creation,” explains Angélique Jullienne, Maison Ferrand’s marketing and communication director.
These discoveries have inspired the distillery team to refurbish one of the oldest rum stills in the world, the Rockley, representing over 3,000 hours of work alone. They have also rediscovered traditional rum production techniques such as seawater fermentation and restored an old cooperage station – bringing the craft back to Barbados.
In addition, the company has redeveloped its yeast nursery, as fermentation is one of the most important steps in rum production. Planteray has close ties with over 20 distillers globally, including the Rum Co in Fiji and Saint Aubin in Mauritius, as well as in Paraguay and Peru, to name a few. Gabriel likes to say: “It takes a community to make rum.” This became the brand’s ethos – with community, people, and knowledge at the heart of everything.
Planteray Cut & Dry was created with this exact vision. The expression is the culmination of three years of tireless research by the Barbados team to naturally craft the best possible coconut‐infused rum. The process involves infusing locally grown, cracked, and sun‐dried coconuts into Barbados rum – a highly thoughtful and technical process. The brand has worked closely with local farmers for several years to boost coconut agriculture in Barbados. The growth of the product is directly tied to the expansion of the island’s agriculture.
In St Barth, a One-Of-a-Kind Festival With Rooftop Parties, Luxury Villas and the Best Rums on Earth
Caitlin Sullivan – 10/22/2024 – Caribbean Journal
In a spirits world that is always searching for the next best thing, the rarest bottling, the impossible-to-find expression, it’s something that still, somehow, remains something of a secret: the Rhum Agricole of the French Caribbean: the rum distilled from pure sugarcane juice that is just about the rarest, most exquisite rum you can find anywhere.
But in the US, it’s largely an afterthought, with just a handful of producers exporting to America and consumer awareness still extremely low.
Of course, that’s largely true of all rum — agricole or otherwise. Few appreciate just how complex, layered and vibrant the world of Caribbean rum is — still lulled into the misperception that it’s a spirit resigned only to cocktails and Solo cups.
Plainly, the finest rums are at the level of (or, if you want our opinion, exceed) the finest scotches. It’s that simple. They’re more romantic, more complex and more interesting, whether you’re enjoying the best of Barbados and Puerto Rico, Jamaica and Guyana, Grenada and Panama.
The reality its that rum is the most diverse spirit in the world, with nearly every Caribbean country putting its own spin on the spirit, with different soils, different stills and a universe of lovely aged expressions.
The misperception is something we’ve been working for years to change. And if you visit the island of St Barth for one extraordinary week in November, you get a deep-dive.
It’s called the Caribbean Rum Awards, and it’s the only event of its kind in the world: a weeklong festival celebrating ultra-premium rum joined by an international blind-tasting competition featuring the highest-quality producers.
It’s a chance to try rums you simply won’t find anywhere else, and certainly not in the United States, enjoy master classes and immerse yourself into the world of Caribbean rum.
This year, it’s back again for its seventh edition, running from Nov. 11-17 at the Rosewood Le Guanahani St Barth, Hotel Le Barthelemy and Les Ilets de la Plage hotels.
The event, presented by Wimco St Barth Properties and Tradewind Aviation, has become a staple on the St Barth calendar, with its unique blend of tastings parties, rooftop events, rum pairing dinners, cigar tastings and beach cocktails.
It’s set at the Rosewood Le Guanahani St Barth, the Le Barthelemy Hotel and Spa and Les Ilets de la Plage, a trio of world-class luxury resorts that exemplify St Barth’s brand of French Caribbean cool.
“This is an event that is all about the world’s finest rum, delivered in a format that the novice and the connoisseur can equally appreciate,” said Alexander Britell, editor and publisher of Caribbean Journal and founder of the event. “Take the best rums in the world and the most glamorous island in the Caribbean and you have a pretty hard-to-top combination.”
Want to learn more? Visit the Caribbean Rum Awards.
You can find ticket info here.
— CJ
ANGOSTURA? CELEBRATES 200 YEARS OF BITTERS AND EMPOWERING COCKTAIL CREATIVITY WITH THE DEBUT OF A NEW PREMIUM LIMITED-EDITION BITTERS
Press Release – 10/22/2024 – Morning Star
PR Newswire
PORT OF SPAIN, Trinidad and Tobago, Oct. 22, 2024
ANGOSTURA? 200-Year Anniversary Limited-Edition bitters pairs globally influenced spices and herbs and ANGOSTURA? aged rum for the first time ever
PORT OF SPAIN, Trinidad and Tobago, Oct. 22, 2024 /PRNewswire/ -- The House of Angostura?, world renowned for its bitters' production and empowering bartenders and curious cocktail creators everywhere, announced the release of the ANGOSTURA? 200-Year Anniversary Limited-Edition bitters, available in limited quantities at select national and regional liquor chains in October 2024.
This new commemorative bitters honors two centuries of the brand's craftsmanship and innovation, featuring a unique blend of globally influenced herbs and spices—many reminiscent of those used by the brand's founder, Dr. Johann Siegert, in his 1824 apothecary—paired with ANGOSTURA aged rum. This first-ever combination results in a bitters product unlike any other on the market, promising to transform the future of cocktail and mocktail creation much like the original ANGOSTURA? aromatic bitters pioneered the bitters' category 200 years ago.
"The special release of ANGOSTURA 200-Year Anniversary Limited-Edition bitters is both a celebration of where we've come from and where we are headed," said Katie Herrmann, brand director, Mizkan America, Inc., the exclusive distributor for ANGOSTURA? bitters for North America. "This release is more than a nod to our rich history; it's about ushering in the next 200 years of inspiring bartenders, at-home mixologists and curious cocktails everywhere with a unique and differentiated flavor that will fuel their creativity for years to come."
Celebrating 200 Years of Bitters and Cocktail Creative Excellence
Since 1824, ANGOSTURA bitters have been an essential and secret ingredient for bartenders and cocktail lovers alike. Poised to transform the bitters category—just as ANGOSTURA aromatic bitters pioneered the bitters' category 200 years ago—this latest release serves as both a nod to the brand's historic past and a commitment to its future, offering a versatile, bright and herbal flavor profile that pairs seamlessly with trending spirits such as tequila, gin, shochu and, of course, rum.
The ANGOSTURA? 200-Year Anniversary Limited-Edition bitters features premium ingredients and will be available in a custom-designed, collector's edition box, making it a highly sought-after item for those who enjoy unique, collectible spirits. Limited to just 120,000 bottles globally, this exclusive release promises to elevate cocktail experiences around the world.
A New Chapter in Mixology
Designed with both professional bartenders and home cocktail enthusiasts in mind, this new bitters offers an entirely fresh cocktail experience.
"Our goal is to continue empowering creators and innovators in the cocktail space," added Herrmann. "This limited-edition release celebrates our brand's legacy while opening new doors for creativity in mixology."
The new, ANGOSTURA 200-Year Anniversary Limited-Edition bitters will be available for purchase in limited quantity at select national and regional liquor chains including Total Wine & More, BevMO, Specs and Binnys as well as online at Reserve Bar and Bourbon Concierge in October 2024.
For more information and to explore new signature cocktail recipes created to highlight the tasting notes of the ANGOSTURA 200-Year Anniversary Limited-Edition bitters, visit www.angosturabitters.com . These recipes include:
? Jalisco Old Fashioned
o Featuring ANGOSTURA 200-Year Anniversary Limited-Edition bitters with bright, herbal tasting notes
o Also featuring Amaro di ANGOSTURA? with tasting notes of aromatic spiced bouquet featuring flavors of cinnamon and toasted caramel
? Toast to 200
o Featuring ANGOSTURA 200-Year Anniversary Limited-Edition bitters with bright, herbal tasting notes
o Also featuring ANGOSTURA? 1824 Rum, a well-rounded, medium-bodied palate with hints of chocolate, orange, spices and fruit
About the House of ANGOSTURA?: The proud history of the House of Angostura? began 200 years ago in 1824, when founder Dr. Johann Siegert first produced aromatic bitters in the city of Angostura in Venezuela, today called Cuidad Bolívar. Recognized over the centuries by the granting of Royal Warrants of Appointment to the royal households of Great Britain, Prussia, Spain, and Sweden. ANGOSTURA? aromatic bitters, ANGOSTURA? orange bitters and ANGOSTURA? cocoa bitters are the world's market leaders, an integral ingredient in premium cocktails, and a mainstay of cocktail culture. Angostura's international range of rums, produced at the only rum distillery in Trinidad, includes distinctive, exquisitely blended rums: Angostura 1824?, Angostura 1919?, Angostura? 7-Year-Old, Angostura? 5-Year-Old, Angostura? Reserva and Angostura Tamboo, blended by masters with years of experience and training in original traditions using closely guarded formulas and techniques. Other products include the multiple award-winning Amaro di ANGOSTURA?, which leverages our unsurpassed heritage as a blender of the finest bitters and rums and our carbonated beverage, Angostura? Chill and its innovative array of flavours.
About ANGOSTURA?: Headquartered in Laventille, Trinidad. Angostura is considered one of Trinidad's crown jewels, world renowned for its ANGOSTURA? aromatic bitters, Rums, and Angostura? Chill. The company's rum and bitters brands can be found in more than 170 countries worldwide.
About Mizkan America, Inc.
Based in Mount Prospect, IL, Mizkan America, Inc., is a subsidiary of the Mizkan Group, a global, family-owned company that has been Bringing Flavor To Life? for more than 220 years. As one of the leading makers of condiments and sauces in the United States, Mizkan America maintains 12 manufacturing facilities that serve the retail, foodservice, specialty Asian and food-ingredient trade channels. Since 2005, Mizkan America has seen dramatic growth and their portfolio now includes a wide variety of vinegars, Italian and Asian sauces, cooking wines, wine reductions, sushi seasoning and salad dressings. Mizkan America brands include: ?RAGú?, Bertolli?, Holland House?, Nakano?, Mizkan? and Four Monks?. Mizkan America is also the exclusive distributor/sales agent for Angostura? Bitters in North America. For more information, go to www.Mizkan.com .
About The Mizkan Group
The Mizkan Group is a privately held, international food manufacturer, headquartered in Handa City, Japan, with a heritage that spans more than 220 years. Always guided by the company's Two Principles (Offer customers only the finest products; and Continuously challenge the status quo), the Mizkan Group offers a line-up of well-known international brands under the Mizkan umbrella and is a leader in the liquid-condiment category. The Mizkan Group has operating facilities around the globe in places including Japan, China, the United Kingdom, the United States, the Netherlands, Singapore, Hong Kong and Taiwan. More information about the Mizkan Group can be found at: ?www.mizkanholdings.com/en/ .
Media Contacts:
Candace Corner | ANGOSTURA?
(216) 965-6848
SKID ROW Launches "Skid Row 18 And Life" Single Origin Ultra Premium Rum
Staff – 10/21/2024 – Brave Words
Multi-platinum American rock band Skid Row, known for their electrifying performances and timeless hits, are taking their passion for music and fan connection to a whole new level by venturing into the world of spirits.
In honor of the 35th anniversary of "18 & Life," the band has launched "Skid Row 18 And Life" Single Origin Ultra Premium Rum. It's a tribute to the band's enduring legacy, providing fans with a taste of the rock 'n' roll lifestyle.
The beverage was in development for a year, and ultimately, it's a natural extension of the band's creativity, offering fans and spirit enthusiasts alike a chance to experience the same level of intensity and quality they've come to expect from Skid Row's music. For hardcore Skid Row followers, the rum serves as an opportunity to connect with the history of the band through every sip of the carefully curated liquid concepts.
Resonating with all Skid Row fans from past to present, "Skid Row 18 And Life" Single Origin Ultra Premium Rum celebrates the 35th anniversary of the iconic song and the nostalgia evoked through its timeless themes and musical craftsmanship. The distinct product is a unique and captivating 18-year expression combining the artistry of Guyanese rum distillation with European aging methods. After being housed in American oak barrels in Guyana, the rum was finished in rare teak wood leggers in Europe. Bold and standing centre stage with 45% ABV, "Skid Row 18 And Life" Rum blends tradition with innovation, delivering deep tones of nougat with hints of toasted coconut and vanilla bean. The rich and complex flavour profile is complemented by elegant layers of dried fruit with a rounded velvety smooth chocolate finish, resulting in an unparalleled sipping experience for both rum connoisseurs and fans.
"The idea of having our own brand of liquor has been floating around our collective minds for quite some time," says guitarist Snake. "Upon meeting the fine folks at Brands for Fans, we realized that the time was now. From their rich history, their association with iconic artists to their attention to detail we knew this idea would finally come to fruition. We've been involved with every stage of this process from beginning to end to make sure that the highest quality and character are achieved with every bottle. And we hope that you will enjoy these offerings as much as we do! As always, thank you for your support. Drink responsibly and celebrate life!!"
Bassist Rachel Bolan concurs, saying, "Skid Row Spirits are not products that we just put our name on the label then slapped on a bottle, they're products we took pride in creating for our fans to like. We have worked closely with Brands For Fans to develop great tasting spirits that will be enjoyed by both the casual drinker as well as the most discerning palette."
North American fans can get their hands on the limited edition beverage over at Love Scotch. Other ordering options can be found here.
Live In London, Skid Row's first official live album and concert film in a 35+ year career, is now available on heavyweight 2LP gatefold, CD + DVD, digital download and all streaming services via earMUSIC.
How the spirits industry is adapting to a challenging market
Fiona Holland – 10/22/2024 – Just-Drinks
The Spirits Strategies and Innovation Conference homed in on the importance of experience-led branding, as well as the opportunities in being a multiple category player.
Step back to late 2023, and the spirits industry had a much more sunny outlook on how 2024 might pan out, with the worst of inflation and its impact on consumer spending expected to be in the past.
Fast-forward to the present, and a mixture of political and economic uncertainty and continued pressure on consumer spending continues to weigh on spirits businesses big and small.
Nevertheless, despite a difficult trading environment, the future looks relatively bright for the spirits industry globally compared to other alcoholic beverages. Insights from GlobalData, Just Drinks’ parent, project spirits volumes to grow at a CAGR of 3.6% to 47 billion litres between 2023 and 2028. Beer and cider volumes comparatively, are expected to grow 1.3% in the same period to 212 billion litres, while wine is expected to grow 1.5% to 27 billion litres.
In value terms, spirits values are forecast to increase 10.8% to $1.5trn between 2023 and 2028, taking the lead on beer and cider value growth rates, with that combined category expected to rise 5% to $957bn.
At last week’s Spirits Strategies and Innovation Conference in London, industry members underlined the need to adopt new ways to attract consumers and, most importantly, keep them coming back.
Connecting The Dots - October 2024
Staff – 10/21/2024 – TD Cowen
Our 5 Proprietary Observations On Key Debates - October 2024:
1) ? ? ?The Labor Market Path
The labor market has cooled since the beginning of the year but looks to be stabilizing. Payroll data has emerged as a crucial indicator of consumer health and is now the market's preferred metric for assessing consumer well-being. September showed a rebound in payrolls, a slight drop in unemployment, and job openings above a critical threshold, signaling that demand for labor remains firm.
2) ? ? ?Household Balance Sheets
Revised data show the U.S. personal savings rate was higher than initially reported over the past year, aligning with our survey findings. Household balance sheets remain stable, debt service is healthy, and delinquencies have declined Q/Q. This supports continued spending capacity for the consumer.
3) ? ? ?Consumer Sentiment
U.S. consumer confidence has dipped, largely driven by labor market concerns among lower-income groups. However, our proprietary survey offers a more optimistic financial outlook, with lower-income consumers maintaining confidence in their finances. Lower-income consumers are showing spending adaptability, despite broader concerns.
4) ? ? ?Bifurcated Consumer
Unemployment data shows higher-income earners may face increased risk in the current job market. This group has also expressed a heightened focus on cost-consciousness and a readiness to cut spending, as revealed in our recent survey. Job security for low-income may be rising as highlighted by the divergence in the NY Fed's survey of consumer expectations of higher unemployment.
5) ? ? ?Business Confidence
Our proprietary surveys of the supply chain show a decline in business growth expectations, but most truck shippers report quick inventory turnover, indicating ongoing strong retail demand. About 26% see restocking already intensifying, suggesting a bullish long-term outlook. Our analysts remain cautiously optimistic with more clarity about 2025 volumes expected after the election.
US Economic Weekly: The other R-word
Staff – 10/21/2024 – BoA
Key takeaways
? The strength seen across recent economic data has prompted concerns about re-acceleration, but we think that is unlikely.
? The September retail sales report was robust- retail ex autos jumped 0.5% m/m, while the core control group surged 0.7% m/m.
? We now see risks to be more balanced rather than skewed to the downside, and maintain our base case of a soft landing.
Weekly viewpoint: The other R-word
With the latest string of upside data surprises, including the GDP/GDI revisions, the September jobs report and retail sales, client concerns have shifted from recession to re-acceleration. In our view, the economy is resilient, but there are enough minor headwinds to make re-acceleration unlikely. More fiscal stimulus, beyond extension of the TCJA could change our view. A supply shock, e.g. from increased tariffs, could also overheat the economy. For now, though, we maintain our base case of a soft landing.
Data review: Strong September retail sales
Retail sales have surged in recent months, which continued with September's report and gains were broad-based across categories. Retail sales ex autos jumped 0.5% m/m, while the core control group surged 0.7% m/m. As of September, the six-month annualized growth rate of real core control retail sales was well above trend at around 4%. Overall, September's more robust activity data helps to back up the signal from the GDP revisions and jobs report and continues to signal resilience in the economy.
Data preview: Services sector continues to lead
We forecast the S&P global manufacturing PMI to remain little changed in Oct, at 47.0, while the services PMI should remain in the expansionary territory at 55.5. There has been some divergence between the two sectors, with the services sector outperforming manufacturing and we expect to see this trend to continue this month. Meanwhile, we anticipate more activity to show up in home sales. Mortgage rates are still at high levels, but interest rate cuts should provide some support for sales going forward.
Ron Matusalem unveils Lefebre
Rupert Hohwieler – 10/18/2024 – The Spirits Business
Cuban rum Ron Matusalem has kicked off its Tributes Collection, which pays homage to the brand’s founding family, with the release of Lefebre.
As the first product in the brand’s Tributes Collection, Lefebre is inspired by Claudio álvarez Lefebre, the great-grandfather of the founding family’s fifth generation.
Each rum in the series will be based on a key figure from the Matusalem family.
Claudio álvarez Renaud, the current representative of the fifth generation, explained: “Lefebre is a tribute to my great-grandfather, Claudio álvarez Lefebre, who spearheaded the company during Cuba’s legendary Golden Age.
“This limited edition honours our traditions, using French oak to capture the subtle notes of a Mediterranean forest. Lefebre is elegant, smooth and superlative: a truly one-of-a-kind rum that celebrates the French charm of our origins.”
Developed by Matusalem master blender Cynthia Vargas, the rum has been aged in ex-Bordeaux barrels using the Solera system.
The brand noted that this method gives the expression a ‘deep amber’ colour with gold and copper hues. The flavour profile then evokes aromas of spiced wood, chocolate bitters and sweet peppers, all ending with a long finish that ‘lingers’ in the mouth.
The high-end rum is presented in a numbered bottle, which features an arch that nods to the brand’s roots and is also a typical design point of Cuban colonial architecture. The bottle’s neck is adorned with a leather collar and a golden button, which intends to blend the style of art deco with French navy blue. It also comes with a certificate of authentication and is packaged in a luxurious case.
Just 2,000 bottles of Lefebre are available worldwide with 250 set aside for Spain. It retails for €299 (US$324).
Over the summer, Ron Matusalem also debuted its first cocktail competition, called The Golden Master. The contest was created to provide a platform for mixology talent.
At the finale in Barcelona, Eduardo Sánchez, of Japanese restaurant Kiki in Santa Cruz de Tenerife, was crowned the inaugural winner.?
DropWorks debuts barrel-aged rum
Miona Madsen – 10/18/2024 – The Spirits Business
Independent English rum producer DropWorks has released its first barrel-aged rum only a year after starting production.
DropWorks is a modern British rum brand and home to ‘Europe’s largest rum distillery’.
The brand has furthered its mission to ‘redefine the British rum category’ by launching its latest small-batch creation and first barrel-matured product to join the core range: Barrel Drop Rum.
Produced on-site at DropWorks’ British Rum Distillery in Nottinghamshire, England, Barrel Drop Rum begins with molasses fermented with the brand’s own ‘world-first’ Wild Trinity Yeast and water from an ancient aquifer beneath the distillery.
The new small-batch product is a blend of the distillery’s column (80%), double retort (10%), and pot still (10%) distilled liquids, matured in specially selected casks to produce a full-bodied and complex 40% ABV dark rum.
The 100% British rum was aged for 10 to 12 months in a variety of casks, including hybrid casks that combine American oak and Portuguese oak, both of which have been scraped, toasted and re-charred, as well as 10% in virgin American oak.
The unique combination of barrels allows the rum to absorb complex flavours and colours, resulting in a ‘rich and layered flavour profile’ despite the shorter maturation process.
Barrel Drop Rum offers notes of rum and raisin ice cream, jammy dates, and warm winter spices.
The rum contains no additives, flavourings, colourings or sugar, and is the seventh new product drop from the brand since opening its distillery in May 2023.
Lewis Hayes, founder of Dropworks, commented: “You can’t cheat time when it comes to ageing rum, which is why Barrel Drop isn’t an aged rum but a matured one. However, due to its complexity, we still sit in that aged rum category despite our liquid only being in barrels for months as opposed to years.
“As with all of our Drops, we have challenged the production process and created a liquid that redefines British rum, and I can’t wait to see where we can push this next.”
Having launched in the on-trade across the UK from September, Barrel Drop Rum was made available direct to consumer on 11 October, before being unveiled to the public at Rum Fest 2024.
The expression is bottled at 40% ABV and retails for ￡34.99 (US$45).
Brand update
Following the release of Barrel Drop Rum, DropWorks is rolling out new designs across its entire range.
In line with the brand’s commitment to full transparency, the updated packaging provides more detailed product information to better communicate the quality of the liquid inside, while the designs continue to reflect DropWorks’ ‘disruptive spirit through a modern aesthetic and vibrant use of colour’.
With the brand’s commitment to becoming a B Corp, the new bottle is made in the UK and features higher recycled content (70%) and a reduced carbon footprint.
Since opening its distillery, DropWorks has filled more than 200 barrels and produced 184,000 bottles of British rum.
Top 10 spirits and cocktail books for autumn 2024
Georgie Collins – 10/18/2024 – The Spirits Business
Long nights call for reading a good book in front of a fire, and these new releases and updated editions also pair exceptionally well with good cocktail.
With the festive season making its rapid advance, these 10 new books would make the perfect gift for the cocktail connoisseur in your life, or if you’re just looking to brush up on your own booze knowledge, these pages offer everything you need.
领英推荐
?The Martini
By Alice Lascelles
For those that think there can’t be much to be written about this classic two-ingredient cocktail, think again. In this book, Financial Times columnist and cocktail expert Alice Lascelles goes on a deep-dive into the iconic cocktail, sharing 60 recipes while charting the Martini’s journey from conception to the modern day.
Discover the best Martini to pair with oysters; explore variations infused with olive oil, shiso and jasmine tea; find out why your most important tool is your freezer; and the real reason James Bond liked a shaken, not stirred, Martini.
Publication date: 26 September 2024
?Rum, A Tasting Course
By Ian Burrell
There is probably no-one more qualified to speak on the topic of rum than Ian Burrell, the official global ambassador for the entire category.
In this comprehensive tasting course, readers can discover the variety, complex history, and distinct flavours that rum has to offer. Learn who is to thank for inventing the spirit, how it is created from sugarcane, and how best to enjoy it, with help from Burrell’s tasting notes for 100 global rums, and recipes for 12 cocktails – both classic favourites and those with a modern twist.
Publication date: 5 September 2024
?Love & Whiskey
By Fawn Weaver
From the woman behind Uncle Nearest Tennessee whiskey, Love & Whiskey explores the life of the world’s first known African-American master distiller, Nearest Green, and his unique legacy that includes a link to Jack Daniel and being credited with helping perfect the globally recognised Lincoln County Process.
In this 380-page book, Weaver includes more than 30 pages of notes and references, chronicling her journey from finding the story of Nearest Green through a piece in The New York Times: ‘Jack Daniel’s Embraces a Secret Ingredient: Help From a Slave’, to her assembling more than 30 historians, archivists, genealogists, researchers, and conservators; interviewing and spending time with more than 100 of Nearest Green’s descendants, as well as many of the surviving descendants of Jack Daniel; pulling thousands of documents from more than six states over the course of more than seven years; and leading to the founding and building of Uncle Nearest Premium Whiskey; the US$1 billion company and the ‘fastest-growing’ American whiskey brand in US history.
Publication date: 5 September 2024
?Lessons From Gin – Business the Four Pillars Way
By Matt Jones
Charting the journey of Australian gin Four Pillars from a small cult favourite to a household name, brand founder Matt Jones shares his experiences as a creative brand strategist during the rise of social media.
Described as an ‘insider’s guide to business success’, with chapters on brand design and storytelling, product excellence, building loyalty and a community and more, Lessons From Gin is not a memoir, and “certainly not the definitive story of Four Pillars Gin,” Jones said. “It’s my take on the decisions we made that helped grow Four Pillars into the world’s leading craft gin business in less than a decade.
“As the person who contributed nothing (literally) to making the gin taste as good as it does, I think my perspective might be the most relatable to others who also don’t have any gin-making talent, but who do have an extraordinary product and business they want to put on display and make sure it gets the credit (and growth) it deserves.”
Publication date: 17 November 2024
?Bubbles — A Guide to Carbonated Cocktails
By Bart Miedeksza and Valentino Girotto
The pair behind London’s now closed Crossroads bar, Bart Miedeksza and Valentino Girotto, co-authored this book centred around carbonation.
Bubbles: A Guide to Carbonated Cocktails, is a 300-page comprehensive guide on mastering the art of crafting carbonated cocktails. Within its pages, topics such as pressure, time, sugars, alcohol content, glass impact and bubble shape are addressed, drawn from Crossroads owner Miedeksza and bar manager Girotto’s years of research and practical knowledge of the subject.
The book aims to equip bartenders with the knowhow to perfect carbonation, so they can apply it in their bars.
Publication date: 11 August 2024
?The World Atlas of Whisky, 3rd Edition
By Dave Broom
Ten years after the last edition, whisky writer Dave Broom has released a fully updated and revised third edition of The World Atlas of Whisky, which feature the profiles of more than 500 distilleries around the world, region by region, and in excess of 480 whiskies.
In each section of the book, Broom offers a little history of the distillery and the place in which it’s located, the types of equipment that each might have, factors that make them unique, general tasting notes for the type of whisky that comes out of the distillery, before finishing it off with some tasting notes on specific bottlings.
?Navy Rum Compendium – Exploring 300 years of Royal Navy Rum and its Techniques
By Alexandre Gabriel and Matt Pietrek ?
Planteray rum owner Maison Ferrand launched the Navy Rum Compendium – Exploring 300 years of Royal Navy Rum and its Techniques, at this year’s global trade show, Bar Convent Berlin.
Co-authored by the firm’s owner and master blender Alexandre Gabriel and writer Matt Pietrek, the 256-page book delves into the significance of this type of rum, including the evolution of its production and the cultural practices surrounding its consumption.
Highlighting the seven pillars of navy rum – blending of rums from different countries, double ageing, the use of used barrels, dynamic ageing, navy active vatting, issuing proof and burnt sugar browning – Gabriel and Pietrek provide a comprehensive and fascinating narrative that will captivate rum enthusiasts and historians alike.
Publication date: October 2024
?Drink Pink!: Cocktails Inspired by Barbie, Mean Girls, Legally Blonde, and More
By Rhiannon Lee and Georgie Glass
For fans of ‘girl power’ films and romcoms, this book of 75 cocktail recipes is inspired by Barbie, Mean Girls, Clueless, Bridget Jones, Sex and the City, Legally Blonde, and more, is the perfect gift.
In this ‘totally fetch’ cocktail book, readers will find easy-to-follow cocktail recipes, complete with glamorous garnishes and tips for flawless presentation to create the perfect instagram-friendly serve.
Cocktails include the Dirty Dancing Martini, the Carrie Me Away Cosmo, and the Bend and Schnapps Shots.
Publication date: 18 December 2024
?Malt Whisky Yearbook 2025
By Ingvar Ronde
When it comes to annual releases, this is the one that many in the whisky industry look forward to the most.
In the 20th edition, readers will find new and up-to-date information on more than 900 whisky distilleries from all over the world, with contributions from many distinguished whisky experts who have exclusively written new features for this new edition alongside details of hundreds of whisky shops, whisky sites and new bottlings.
In addition, the Malt Whisky Yearbook 2025 includes more than 250 tasting notes of single malts from all working distilleries in Scotland, plus hundreds of colour photographs.
Publication date: 15 October 2024
?Spirited Women
By Sammi Katz and Olivia McGiff
While this colourful release won’t hit shelves until the spring, this is definitely a vibrant book to keep on your radar. Throughout, Katz and McGiff unveil the world of spirits and cocktails exclusively through the lens of women makers, shakers, and trailblazers of the drinks world by way of 55 profiles and accompanying recipes – all whimsically illustrated in colour.
Together they celebrate the influence of diverse women in beverage teaching the ‘why’ behind the sexism that exists in the industry and debunking stereotypes through the process.
Each profile, written by the likes of bartender, educator, and co-founder of Speed Rack, Lynnette Marrero, and founder of Yola Mezcal, Yola Jimenez, is said to be penned with wit, integrity, and curiosity, and all have been complemented by an original cocktail recipe that echoes the woman’s story and showcases their spirit, inclusive of easy-to-follow steps for at-home bartenders to execute to the nines and broaden their knowledge behind the bar.
Publication date: 4 March 2025
Spirits volume remains soft; Crown Royal Blackberry boost accelerates for Diageo
Staff – 10/16/2024 – ?Goldman Sachs
What's new? Excluding RTDs, US Spirits Nielsen data for the four weeks to 5th October show sales declined by -0.6%, similar to -0.7% in Aug/Sept.
The decline was driven by -2.4% volume, partially offset by +1.8% price/mix. Spirits sales including RTD grew by +1.9%.
On a category basis, RTD sales accelerated to +20.5%, driven in part by Pernod's Absolut and ABI's Nutrl. Tequila continued to grow strongly up +4.2% while vodka (-1.8%) and rum (-5.8%) underperformed. Cognac remains weak at -9.6%, whilst Whiskey was unchanged sequentially at -0.2%.
US Spirits Nielsen Data: Volumes improving. Diageo and Campari sequentially strongest
Staff – 10/16/2024 – CITI
CITI'S TAKE
US Spirits volume growth was stronger at +4.1% in the 4W to October 5th (12W +3.2%), improving on +2.4% in the previous 4W as Prepared Cocktails growth accelerated. Tequila volumes grew in the 4W by +2.0% vs +1.6% in the previous 4W, while Cognac volumes fell -6.9% (-5.7%). Whiskey volumes fell -2.1% (-2.4%), vodka volumes fell -2.9% (-3.8%), gin volumes fell -5.3% (-7.3%) and rum volumes were down -6.8% (-7.3%). Prepared Cocktails volumes grew +21.9% after +13.7% in the previous 4-wks. Total price/mix fell by -2.1% and $ sales growth was +1.9% for the 4W (vs +1.3% last month and +1.6% for 12W). The 5-yr stack value growth decelerated sequentially to 136 vs 137 last month while Diageo (121 vs 116) and Campari (139 vs 136) were both higher.
Diageo — Sales were up +3.4% in the month (+1.6 in the last 12W), compared to +0.9% in the previous 4W. The 5-yr $ stack decelerated to 121 vs 116 last month. The latest 4W period was split volumes -0.6% and price/mix +4.1%. Value share increased +25bps. Don Julio volumes grew +35.9%, Crown Royal volumes were up +16.3%. Buchanan’s volumes declined by -7.5%, Captain Morgan volumes were down -7.2% and Johnnie Walker volumes were down -6.5%. We estimate that US spirits represent greater than 50% of Diageo's EBIT.
Pernod Ricard — Sales fell by -5.4% in the month (-5.8% in the last 12W), better than the previous 4W at -6.6%. The 5-yr $ stack was stable at 108. The latest 4W growth was split volumes -0.2% and price/mix -5.2%. Value share fell -42bps. Volumes were negative for each of Glenlivet (-10.6%), Jameson (-6.6%), Absolut (-1.6%) and Malibu (-7.8%), while Altos (+9.1%) and Martell (+16.3%) both grew. We estimate that US spirits account for greater than c.25% of Pernod's group EBIT.
Campari — Sales grew by +2.2% this month and were stable in the last 12W, compared to -1.7% in the previous 4W. The 5-yr $ stack improved to 139 vs 136 last month. The latest 4W was split volumes -0.4% and price/mix +2.5%. Value share was up by +10bp. Aperol volumes grew +5.3% in the last 4W and Campari volumes were up +0.2%. We estimate that US spirits account for ~30% of Campari’s EBIT.
Remy Cointreau — Sales fell by -15.6% this month, vs the 12W trend of -15.9% and the previous 4W at -15.1%. The 5-yr $ stack slowed sequentially to 89 vs 93 last month. The latest 4W was split volumes -13.8% and price/mix -2.1%. Value share was down -13bps. In the last 4W, volumes were down for both Cointreau (-3.7%) and Mount Gay (-15.9%). Volumes were lower for Rémy Martin (-21.4%), with 1738 (-18.4%) and VSOP (-23.7%). We estimate that US spirits account for ~40% of Remy's EBIT.
Scope of Nielsen data – We believe the Nielsen AOC+C dataset provides a regular and important update on key industry trends and competitive dynamics. Although the data is a good representation of the off-premise (~50% coverage), it does not capture sales in 1) liquor stores; 2) on-premise, 3) control states and 4) e-commerce. Overall, we estimate Nielsen data covers ~20-30% of the total US spirits market.
Coffee and Tequila grow in cocktail influence
Rupert Hohwieler – 10/17/2024 – The Spirits Business
Cocktails are now the fourth most-consumed category in the global on-trade, with Tequila and coffee serves growing in popularity, CGA by NIQ has revealed in its Global Cocktail Report 2024.
The report surveyed responses from 30,000 consumers across 38 countries on their drinking preferences when visiting bars, pubs, cafés and restaurants.
It noted that 27% of consumers are drinking cocktails out of home, which was up by two percentage points in the Americas, but down by the same amount in Europe.
From the data, 33% surveyed had soft drinks down as a top choice, with beer covering 51% and wine 31%.
Tequila and agave spirits were highlighted for their popularity with the Margarita and Tequila Sunrise seeing year-on-year growth, while rum-based cocktails such as the Mojito and the Pi?a Colada were enjoying ‘immense’ popularity, too.
The Mojito (40%) was the world’s preferred cocktail choice with Margarita ranking second at 32%.
In terms of what else is trending upwards, Espresso Martinis have increased by two percentage points from 13% to 15%, with cocktails with a coffee flavour rising from 19% to 22% over the past year. Also popular: chocolate (up from 15% to 19%); vanilla (rising from 19% to 22%) and honey (up from 14% to 15%).
CGA noted that this shows a ‘surging demand’ for indulgence in the cocktail experience.
Furthermore, tropical fruit flavours (mango, passionfruit and pineapple, for instance) are being favoured by up to 30% of on-trade visitors, which CGA observed as an area where businesses could combine with non-alcoholic drinks, which are ‘significantly on rise’.
Trending flavours can be used in tandem with non-alcoholic cocktails, as almost 35% of consumers are opting for no-and-low options in on-trade venues.
Beyond the type of cocktail alone, other factors influencing cocktail drinker decisions include good value (43% surveyed had a preference for this), high quality (41%) and a sense of premiumness (23%).
Furthermore, 41% of cocktail drinkers are willing to pay more for quality, which is 10 percentage points higher than that of the average on-trade visitor. Moreover, 8% more cocktail drinkers want their liquid to feel interesting and unique, which CGA suggests leads to more consumer experimentation with new drinks and brands.
Brand loyalty is also less so in cocktails than in beer and wine, where cocktail drinkers are happy to try something new over well-known brands. This could be seen as the cocktail category being the ‘most exciting and innovative of all beverage categories in the on-trade’, CGA said.
Lastly, social media – Instagram and TikTok in particular – was found to have a big influence on decision making, with 85% of consumers driven by a social media post on their visit to cafés, bars and restaurants. In addition, nearly 81% put social media down as the reason behind their purchase of a specific food item.
To close out last year, we predicted small cocktails, savoury options, RTDs, ice and 90s-inspired serves, to be the cocktail trends of 2024.
US Spirits – De-premiumisation Tracker October 2024
Staff – 10/18/2024 – ?Jefferies
We refresh our "De-premiumisation Tracker" for the US spirits industry for the four weeks to 5 October.
RTDs continue to drive industry volume growth, and we see pockets of both downtrading and premiumisation in distilled spirits.
Industry growth continues to lag the historical c.4% run rate after the COVID super-cycle; shipment acceleration back towards the historical trend will come once the destocking cycle is exhausted and the RTD category rolls over.
Industry growth - distilled spirits growing below trend, RTDs a distraction. 2023 was a reset year for US spirits, with DISCUS suggesting industry vols +1.2% (2022 +4.8%), value +0.2% (+5.1%), and price/mix -1.0% (+0.3%). Backing out RTDs/cocktails, we estimate 2023 distilled spirits vol/value -3.3%/-1.5% (vs Nielsen -1.0%/+1.9%) with price/mix +1.8% given category tailwinds. YTD per Nielsen, distilled spirits volumes/value are -2.2%/-0.2%; however, we believe that pure spirits' industry growth across all channels is closer to 0.5% to 1%, with a further 1% to 1.5% from RTDs.
Long-term drivers unchanged; need end of destocking and RTD rollover for reversion to norm. We believe the long-term drivers of growth, including premiumisation and share of throat tailwinds, remain unchanged. The downgrade cycle from destocking will inevitably come to an end, which should drive an improvement in supplier shipments. However, we believe that spirits-based RTDs are weighing on distilled spirits growth. As the category rolls over, this will provide more breathing space for distilled spirits to return to their historical run rate. See report here for details.
Price/mix - mixed trends. Tequila (+2.1% vs prev +2.9%), Gin (+3.0% vs +2.1%), Vodka (+1.1% vs +1.2%), Rum (+1.0% vs +0.5%). Bourbon (+1.4% vs +2.3%), Canadian Whisky (+4.9% vs +3.0%), Cognac (-2.7% vs -2.4%) with Remy -0.1% vs -0.2%, and Scotch (+0.9% vs +0.8%).
Tequila trends - a softer month for price/mix. Tequila sales growth was +4.2% in Oct (vs +4.5% in Sep), with volumes +2.0% (vs +1.6%) and price/mix +2.1% (vs +2.9%). Casamigos continued to decline (value -9.7% vs -10.2%), with price/mix negative at -1.8% (vs -1.7%). Don Julio continues to see good growth (+33.7% vs +37.4%) with vols +35.9% (vs +41.3%) and price/mix -2.2% (vs -3.9%). Casamigos and Patron were the biggest decliners in absolute value within the category.
Scotch - volume trends soft. Volumes were soft at -7.7% (-6.4%), while price/mix was broadly unchanged +0.9% (vs +0.8%). Johnnie Walker sales declined yoy (-7.1% vs -4.1%), while Buchanan is subdued as it cycles the benefit of the pineapple innovation launch (-6.2% vs -2.0%).
American whiskey - a slower month for premiumisation. Mainstream brand Jim Beam is driving category growth, however premiumisation trends are still visible with growth in brands such as Woodford and Bookers.
Canadian whisky - innovation boost driving category growth. Crown Royal's momentum accelerated in October (+18% vs +5.9% prev) with benefits from Blackberry innovation.
Cognac - performance improves slightly. Cognac volumes remained depressed (-6.9%) and promotional activity appears to continue, with Oct price/mix -2.7%. Hennessy (Oct -5.7% vs Sep -3.6%) continued to outperform Remy (-21.5% vs -21.5%), with the benefit of having reset price points on VS. Hennessy price/mix -3.3% vs Remy -0.1%.
White spirits and RTD. Vodka weakness in Absolut, SKYY, and Ciroc, with category growth driven by Tito's and 7x Platinum Vodka. RTD growth was driven by High Noon, ABI's Nutrl and Cutwater, Carbliss Cocktails, Sun Cruiser and Buzzballz. Profit exposure to US. c.50% Diageo, c.40% Remy, c.25% Campari and Pernod
Are There Too Many Wine And Spirit Competitions?
Joseph V Micallef – 10/16/2024 – Forbes
Do we need 5,000 organizations announcing the world’s best wine or spirits? Not really. But that doesn’t mean there are too many competitions. The answer is more nuanced.
At last count, there were more than 5,000 wine and spirit competitions worldwide. No one knows for sure, and that number is probably understated. These competitions range from small, local gatherings to giant events with thousands of entries. Do we need 5,000 organizations announcing the world's best wine or spirits? Not really. But that doesn't mean there are too many competitions. The answer is more nuanced. It all depends on how you use and interpret the results.
Let's start by dealing with some misconceptions. First, does the size of the competition matter? The straightforward answer is no. Competitions love announcing they are the world's biggest. The overall size, however, does not make your results more authoritative. What matters is the number of entries judged in each category. Judging a thousand RTDs may allow you to claim you are the world's biggest competition, but how does that make your whisky/whiskey or gin judging results more credible? It doesn't.
If bourbon is your passion, then the San Francisco World Spirits Competition (SFWSC) results are the most authoritative. They receive more bourbon entries than any other competition. In the case of Scotch Whisky, that honor belongs to the International Wine & Spirits Competition (IWSC). They typically get the most entries for single malt and blended Scotch whiskies. The World Whisky Awards also gets numerous entries and may occasionally outrank the two other competitions.
In the case of Japanese whiskies, however, the Tokyo Whisky & Spirits Competition results are far more authoritative. The same can be said for Canadian whiskey judging at the Canadian Whisky Awards or Irish whiskey judging at the Irish Whiskey Awards. In my experience, having been a judge for most of these competitions, I can assure you that the larger the pool of entries, the more nuanced and accurate the judging.
Every competition invariably announces a "world's best." Declaring dozens of "world's best" seems contradictory. Readers love to hear about the latest "world's best," however, and writers, yours truly included, are happy to indulge them.
The more pressing question, however, is why do the different competitions each end up with a different "world's best?" You would expect that a "world's best" whisky or gin would get crowned at more than one competition; after all, a similar judging pool, often one in which many members overlap, chooses them.
Having recently analyzed a decade's worth of results from multiple wine and spirit competitions worldwide, I'm struck by the consistency of the results. Over time, and across various competitions worldwide, there was little appreciable difference in the top-ranked spirits, as measured by their gold medal or higher awards. This consistency is a testament to the objectivity of the judging process.
There is a remarkable consensus among judges on the top 5% of wines or spirits in a category, reflected in competition results. Picking the "world's best" from a category's top 5% pool, however, can be highly subjective, if not arbitrary.
Moreover, to consumers, the notion of a world's best anything has to be viewed through the lens of what they like. If you prefer the smoothness of a wheated bourbon, then a high rye expression is unlikely to ever be your "world's best," regardless of how many competitions bestow that honor. Likewise, if a Sherry matured Speyside single malt is your go-to whisky, a heavily peated expression from Islay will never be your top choice.
Choosing a "world's best" spirit is ultimately a personal decision based on what you like in a spirit. Rather than focusing on the "world's best" selection from a competition, it's far more helpful to focus on the top-ranked expressions, typically the 5% or so that win Gold or higher medals.
Your personal preference should always be the determining factor in your choices of what wines or spirits are the world's best. In other words, what competitions do best is determine a category's finalists. The final choice of a "world's best" should come from you based on your criteria of what you want in a spirit or wine.
One of the functions of competitions is to identify new, up-and-coming brands. Given the explosion in craft distillers and wineries worldwide, plenty of new producers exist. Competitions do an excellent job of identifying new producers worthy of your attention.
The beverage industry is full of anecdotal stories of craft producers who saw their sales skyrocket after winning top honors in a major competition. In this regard, however, the smaller, more focused competitions often have the jump on the larger, more prestigious ones.
Want to know who the new up-and-coming craft distillers are? Competitions like the American Distilling Institute's International Spirits Competition are often the first to highlight the new craft distilling stars.
Likewise, are you looking for the next hot wine from Virginia or Oregon? In that case, local competitions like Virginia's Governor Cup often identify those new producers before major wine competitions like the Decanter Awards or the San Francisco Chronicle Wine Competition. The latter is the largest wine competition in North America, while the former is the largest in the world.
Retail pricing is a factor in some competitions, although not all. Finding out that the World's Best Single Malt Scotch or Cognac will cost you thousands of dollars may only be useful if you have an unlimited budget. Some do, but most consumers don't have that luxury. The highest-rated affordable spirit is far more relevant to consumers than a selection they can never afford.
Some competitions, like the New York International Spirits Competition (NYISC) or the London Spirits Competition (LSC), factor price in their judging. That can make their results far more relevant to consumers than those from competitions that don't consider pricing.
The failure to factor in pricing is particularly problematic in wine judging. Roughly 85% of wines sell for under $20/bottle. However, many competitions often discount lower-priced wines in favor of higher-cost prestige brands or don't factor the price into their rankings.
It doesn't do consumers much good to discover that the world's Best Pinot Noir is an ultra-expensive, unattainable Burgundy. An outstanding $50 to $100 bottle you can find and afford would probably be a better choice. After all, a competition's results aim to identify expressions you can and should buy, not ones you can only dream about.
In that vein, another of the frustrations of many large competitions is that a disproportionate number of craft entries are local and not available internationally. This unavailability is often an issue with white spirits like vodka or gin. Since they don’t have any aging requirements they are faster and cheaper to produce and there are often many different expressions available. Their low price points also make international distribution challenging.
The top-ranked expressions from European competitions are often unavailable in North America, while those from the US are unavailable in Europe or Asia.
This issue is particularly true in wine competitions. South African wines, for example, represent outstanding values and extremely high quality. Cap Classique sparkling wines are a good example. They are far more available in Europe than North America. Top-ranked South African wines from European competitions are often unavailable in the US, and shipping them from overseas internet vendors makes them ridiculously expensive.
Producers also use wine and spirit competitions. While important, the size or prestige of a competition is only one of many considerations. If your spirit is better suited for cocktails, local competitions in hotbeds of mixology innovation, like Las Vegas, Miami, New York, or Los Angeles, may be more beneficial to building a brand than the big international competitions.
Likewise, if you are a small brand still building your distribution footprint, the smaller competitions can often lead to hookups with local distributors critical to brand development.
So, are there too many wine and spirit competitions? Probably, but it all depends on how you use the results and what information you are looking for. As for the world's best wine or spirit, remember it's only the world's best if you like it. Otherwise, it doesn't matter. The results of wine and spirit competitions should be your starting point, not a conclusion you accept uncritically.
Status spirits adds $1bn to global economy
Staff – 10/18/2024 – The IWSR
IWSR data shows that status spirits continue to outperform the broader spirits market, buoyed by the recovery of duty free
Status spirits outperformed the wider beverage alcohol category in 2023, recording value growth of 9%, according to new data from IWSR, the global authority for beverage alcohol data and intelligence. Comprising products with an average RSP of $100+, status spirits’ share of overall global spirits value continued to climb steadily, to account for 4.8% of the total market, as reported in IWSR’s newly published Status Spirits Report 2024.
Higher per-bottle prices, however, did not grant status spirits immunity from the challenges of the wider macroeconomic environment. Persistent inflation, high interest rates and rising living costs combined to dampen consumer confidence, leading in turn to significant differences between markets and across price bands.
“Despite a challenging macroeconomic context, status spirits have remained remarkably resilient when compared to products in more mainstream price segments,” comments Guy Wolfe, Head of Status Spirits Insights at IWSR.
“While the above-average wealth of the status spirits buyer means the market is more insulated, recent challenges for status spirits have demonstrated the importance of discipline regarding stock and the value of a wide footprint. Innovation and a laser focus on the consumer will be key to maintaining growth.”
The spending power of the wealthiest buyers proved largely unaffected by economic headwinds, with sales of spirits retailing for $5,000+ per bottle recording robust value growth of +39%. The $350-499.99 price band also performed strongly. Growing +42%, this segment provided accessible prestige products for economically insulated consumers. By contrast, other price bands saw far lower growth rates or even, in the case of $2,500-4,999.99, a slight downturn.
Performances in individual markets proved equally mixed, largely reflecting each country’s economic sentiment. Status spirits saw single-digit falls in value in France and the UK, low single-digit growth in the US and a decline of 12% in China as consumer confidence weakened.
The post-pandemic resurgence of duty free offset the overall weak performance across domestic markets. Combined, individual markets provided growth of below 1%. Travel retail, boosted by the removal of Chinese travel restrictions, recorded value growth of +48%.
With this growth, duty free is once again the leading market by value for status spirits after a Covid-related slump in 2020. Growth in the US and recent declines in China mean the two markets are now almost equal in size.
In a complex macroeconomic landscape, the five-year forecast for status spirits is cautiously positive, with the US, UK, France and some APAC markets expected to see low single-digit growth in the medium-term.
There is more confidence around duty free, which will remain the key driver of growth, with a predicted value CAGR of 10% to 2028. The US will also continue to expand steadily, at a value CAGR of 4%, 2023-2028. Less established status markets will also gain importance, including Australia, Malaysia, Nigeria and Vietnam.
Other key findings from IWSR’s Status Spirits Report 2024 include:
Scotch capitalises on Cognac’s downturn
Scotch was the driving force of status spirits in 2023, growing +17%, with malt/grain and blended Scotch combining to generate the greatest absolute value for the category. This growth is expected to continue, with IWSR forecasting a positive CAGR for both malt/grain (+5%) and blended (+10%) to 2028.
During this period, Scotch will add a further $2bn of value to the market. Much of this growth will come from duty free, though the US and emerging markets such as Nigeria and Vietnam are also expected to make significant contributions.
Innovation is a key part of Scotch’s success, with malt (in particular) and blended Scotch combining to launch over 340 new status products in 2023 – significantly more than all other spirit categories combined.
Cognac/Armagnac, by contrast, released the fewest new status products of all spirits categories in 2023, and has been steadily losing market share. In 2023 it was pushed into second place by Scotch for the first time.
Cognac has been particularly impacted in China, where high inventory levels have combined with an economic downturn to contribute to a value decline of -12%. Problems are likely to be compounded this year and next by the recent imposition of anti-dumping tariffs by the Chinese Ministry of Commerce. Conversely there has been a recovery in duty free, though sales remain below 2019 levels.
Agave makes headway
Agave’s growth as a status category has continued apace. Its growth in 2023 added $220m to the category. The vast majority of these sales were in the lower end $100-199 price band, with few products selling over $500. Tequila was the dominant product, though mezcal also grew fast (+73%) from a low base.
Currently, most sales of status agave are in the US, where growth has been explosive, with a CAGR of +35% since 2019 – mostly at the expense of Cognac and Scotch. There are signs that the agave status boom is slowing – sales were up +4% in 2023, compared to +25% in 2022. But other countries look set to pick up some of the slack. Status agave sales recorded double- or triple-digit growth in every market except Russia in 2023.
American whiskey drives forecast growth for the US
The US is a very diverse status spirits market, with several categories holding a significant value share. The increasing prestige and collectability of high-end bourbon, rye and US single malt has seen demand rise sharply in recent years, with the total value of the American whiskey category in the US growing by a CAGR of +17% from 2019-23.
As tequila’s growth slows down, American whiskey is now forecast to generate the greatest value growth to 2028. Tequila, will however, remain a key contributor of incremental value.
Baijiu dominates in China
Baijiu dominates the Chinese status spirits market, responsible for around 95% of the total value of status spirit sales in the country.
The drink remains an integral part of Chinese culture – both in social and business settings. While it is typically popular among older consumers, some top-end baijiu brands are launching innovative new editions to target millennial consumers.
As the Chinese economy has slowed, demand for the baijiu category as a whole has declined. Status baijiu has so far managed to sustain momentum, but the rate of growth is expected to fall in the near term with some downwards price pressure being seen during 2024.
India boosts Scotch
India is a country with both strong economic and demographic growth. Legal drinking aged Gen Z are expected to form a larger proportion of the country’s population by 2028 (27%) than in China (18%) or the US (21%) (source: US Census Bureau IDB), and the rise of an affluent middle class could offer a significant opportunity for status spirits.
Scotch, in particular, is hugely popular, and though the category’s potential has thus far been hindered by high tariffs, the UK and India appear to be making progress on a long-awaited Free Trade Agreement (FTA).
Wealthy Indians typically buy high-end drinks abroad or in duty free. But an FTA could provide a big boost in the domestic market for status spirits’ most important category.
A sluggish secondary market
The secondary market is crucial for status spirits, and this remained sluggish throughout 2023, with a combination of over-stocking after Covid and consumer uncertainty leading to softer demand.
With lower returns, ‘flippers’ were less inclined to speculate, and collectors held onto their stock, while higher interest rates diluted the appeal for longer term investors.
Rare and ultra-aged spirits were the exception, with products from the likes of The Macallan and Kodawari fetching record sums.
The IWSR Status Spirits 2024 Strategic Study is now available to all subscribing clients. For further information or to gain access, please email [email protected] . Current IWSR clients can contact their IWSR Account Manager.
The end of somms and bartenders? Tesla’s Optimus robots serve drinks
James Evison ?– 10/18/2024 – The Drink Business
Tesla CEO Elon Musk has already disrupted the automotive and social media sectors, but now he may be about to revolutionise hospitality.
At the latest Cybercab event, Musk unveiled the latest version of the Tesla Optimus robots, who walked amongst the audience, even speaking to them and showcasing their conversational skills.
Crucially, it also showed how robots could be used in the hospitality and drinks trade, with the products serving beverages to the audience present at the event – as hightlighted below.
The videos of conversations with the device, and considering Musk’s own development of AI through his Grok platform, it is easy to also imagine a world where a bar robot will be given a comprehensive, encyclopaedic knowledge of wines, spirits and beers, offering the customer a bespoke service in a venue.
Musk said: “The Optimus will walk amongst you. You’ll be able to walk right up to them, and they will serve drinks.”
According to Musk, who also showcased the Optimus robots delivering packages and watering paths in a video, the robots would be truly universal and able to “do anything”.
Other examples given by Musk included being a teacher, babysitting, walking a dog, even mowing the lawn. In addition, he added that he didn’t want the robots to be for billionaires or even multi-millionaires, and that it would be affordable to all.
Personal C3p0
He said: “We started out with someone in a robot suit, and we’ve progressed dramatically year-after-year.
“So, if you extrapolate this, you really will have something spectacular. Something that anyone can own. You can have your own personal (Star Wars characters) R2D2 or C3PO.
“At scale, this will cost $20,000 to $30,000. Probably less than a car, is my prediction, long term.”
“I think this will be the biggest product ever, of any kind.”
As a result of having their own robots, Musk predicts the costs of services will reduce and it will be “an age of abundance” unlike we have ever known, and “something special”.
Pulling drinks
Following Musk’s presentation, the live video stream of the event on social media showed attendees meeting and greeting (and getting selfies) with the robots.
One appeared to be pulling drinks from a tap into a glass and handing it to guests.
In terms of future plans for the robot, Musk said previously said that a device could be sold by the end of next year, although in his speech last night he was keen to stress that commerciality was “long term”.
The pace of development has also been impressive though. It was only in 2021 that Musk revealed a man in a robot suit, but two years ago an initial prototype was revealed, before this latest iteration.
Until the next newsletter!
Federico Hernández - The Rum Lab