opinion Archives - The Spirits Business

SB voices: Irish whiskey needs more transparency

Melita Kiely — Fri, 13 Sep 2019 11:25:43 +0000

Irish whiskey's soaring popularity is an extraordinary achievement for the category following its troubled past – but producers must be careful to ensure transparency across the board to protect the spirit's future success, says Melita Kiely.

Anyone who has been paying the slightest bit of attention to Irish whiskey’s increasing popularity will be aware of the category’s phenomenal growth over the last 10 years. A decade ago, take at trip to the Emerald Isle and you’d find just four distilleries there: Bushmills, Midleton, Kilbeggan and Cooley. Today, that number has risen to 26 – and will no doubt continue to rise over the coming years. This was by no means an overnight success. Category leader Jameson, along with the likes of Bushmills, Tullamore Dew and other established brands, must really be credited with paving the way for other producers to follow. It’s their high standards and perseverance that has created the consumer demand that has led to today’s growing distillery numbers. Such is the demand that Ireland is now attracting a booming tourism trade. Last year, more than 2.7 million made a beeline for Ireland to visit the island’s distilleries and breweries, according to the Alcohol Beverage Federation of Ireland (ABFI). Since 2016, visitor numbers to Irish breweries and distilleries have grown by 241,294, and there are at least 24 visitor centres in Ireland now, the ABFI reported. However, last month, a Tweet published by Blackwater Distillery said: “Here’s to the couple who visited us this week at the end of a three-week whiskey trip around Ireland. They decided against Scotland because there was ‘so much happening here’. So imagine their disappointment to find half of the whiskey distilleries they wanted to see didn’t exist.” It was the ignition for a piece on BBC Radio 4’s You and Yours programme earlier this week, which I was asked to take part in. The piece highlighted that there is still much work to be done to create a seamless understanding of the Irish whiskey category between brands and consumers. Several valid points were touched upon during the segment: why are some Irish distilleries selling whiskey that’s not, technically, their own? And why are others suggesting they are the product of a non-existent distillery? For those who work in the spirits industry, it may feel like common knowledge that existing Irish whiskey distilleries and brands outsource their liquid – and this could be for all manner of reasons: the astronomical costs that come with building your own distillery, the three-year minimum wait for Irish whiskey to mature, or a lack of facilities to produce grain whiskeys for blends. The practice is nothing new, and is an integral part of the Irish whiskey category’s infrastructure – and Scotch and American whisk(e)ys, too. But what last month’s Tweet demonstrates is that there is quite clearly a disconnect between industry knowledge and consumer understanding – and the responsibility of addressing this to create a truly transparent category rests on the shoulders of the Irish whiskey producers. There is evidently still much work to be done when it comes to consumer education. If producers are using potentially misleading labelling on their brands, such as those that refer to a ‘named’ distillery, which is actually non-existent, it will only be a matter of time before consumers connect the dots and, as our Tweet bode shows, feel a sense of disappointment in the category. Similarly, brands that source their liquid from a third-party supplier and then finish its maturation in another part of the country, must be careful to communicate the liquid’s provenance accurately and honestly. We’re all acutely aware that today’s consumer is more discerning than ever, and engages with brands that have heritage, provenance and a story behind them. But above all, consumers are seeking quality spirits with brand integrity. They won’t be duped by false tales dreamt up to fit current trends. The next few years will really give us an idea of the Irish whiskey’s potential as more brands come of age and hit the market. To safeguard the spirit’s longevity, it’s vital that brands do not fabricate a sense of provenance for the sake of an easy sale. It has taken decades to rebuild the Irish whiskey category – and breaking consumer trust now could all too quickly undo the industry’s hard work. Don’t take consumers for fools – honesty is always the best policy.

SB Voices: Improving through understanding

Owen Bellwood — Fri, 09 Aug 2019 11:58:36 +0000

After attending this year's understanding-focused P(our) Symposium, Owen Bellwood says the subject could solve more than just unappreciative patrons.

From the never-ending stream of bickering on Twitter to stories of outraged airline passengers and fights on tube trains, it sometimes feels like a little more understanding would go a long way. With people around the world focussing on their own personal struggles, it can be easy to forget the trials and tribulations faced by individuals from other walks of life. For a bartender on shift, daily issues could see them forced to skip a lunch break, stay behind the stick later than expected, make a last minute change to a cocktail during service or explain to a patron who's had one too many why they're cutting them off. While these annoyances seem problematic at the time, when you take a step back and look at the bigger picture, to some they could appear trivial. During this year's P(our) Symposium, a day for bartenders to get together and learn from each other, the subject of understanding brought a host of the world's larger issues to the fore. The day saw Laura Try speak about the physical and emotional challenges she faced when rowing across the Atlantic Ocean, and the assembled on-trade experts heard from Brigitte Sossou Perenyi about her experiences with repressive practices such as trokosi, which sees girls forced to live and work with priests in religious shrines as an offer of atonement. As well as a number of other speakers through the course of the day, the P(our) Symposium welcomed Narit Gessler, director of development at Free the Slaves, onto its stage. Gessler acknowledged that a presentation on slavery isn't something the day's guests may normally listen to, but used the platform to highlight areas of the on-trade that slavery may still be prevalent. Farming of ingredients to make spirits, mining for metals to make bar tools and sourcing the raw materials that can be transformed into staff uniforms were all highlighted by Gessler. Her talk served as a wakeup call to the assembled bartenders, as she highlighted that their choice of suppliers and products could impact the livelihoods of people around the world. The day was filled with speakers tackling some of the world's biggest issues, each striving to offer the assembled bartenders a better understanding of the challenges facing people today. While it wasn't a case of belittling the issues we in the developed world may face, the P(our) Symposium instead offered up ways that the actions we take can improve the lives of others. As the attendees from this year's symposium returned to their respective venues armed with a newfound understanding that they could use to affect change, it became clear that a better understanding of the world could be the solution to many of its current challenges. As Perenyi said while on stage: “Understanding is such an important topic because when we don't understand we become complacent, when we don't understand we become silent, when we don't understand we don’t see the relevance in taking action." To find out more about this year's P(our) Symposium look out for the August edition of The Spirits Business.

SB Voices: Mother’s Day marketing must be more mindful

Melita Kiely — Fri, 22 Mar 2019 12:00:43 +0000

International days of celebration are an important way for companies to generate greater awareness of their brands and bump up sales – but what about those occasions that hit a little too close to home? Marketing must be more mindful, says Melita Kiely.

Hardly a day goes by when a press release doesn’t ping into my inbox regarding a ‘national’ or ‘international’ day or month of celebration, from incredibly important global observations such as World Mental Health Day and Black History Month, to the more fun diary dates such as World Book Day, and the downright bizarre likes of National Pizza Day and No Trousers on the Tube Day (that’s a real, annual day, you know). The spirits industry also boasts its fair share of national and international celebrations. From World Margarita Day and World Cocktail Day to World Whisky Day and National Tequila Day, there is no shortage of dates dedicated to toasting your favourite tipples. Earlier this month, attention turned to International Women’s Day. Press releases came thick and fast in the lead-up to 8 March as brands fought tooth and nail to prove they were indeed pro-women and pro-equality. The effort to improve gender equality has been ramped up over the last year, making this day more significant than ever. But wouldn’t it be great to see this level of female celebration, and empowerment, all-year round? But 8 March has been and gone, and focus for many brands has now shifted to the UK’s upcoming Mother’s Day on Sunday, 31 March. Press releases suggesting gift ideas, mother-inspired cocktail recipes, Champagne-fuelled afternoon teas and gift packs have inundated the editorial team as brands clamber over one another to secure coverage. Then a different type of email landed from the team at online retailer The Whisky Exchange. It read: “Hello, “We appreciate that not everyone wants to be reminded of Mother’s Day. As such, you can now choose to opt out of any Mother’s Day emails we might send.” With a simple click of a button, anyone not wanting to be reminded of Mother’s Day could very easily avoid the bombardment of marketing materials. This is something I’ve seen discussed widely on social media recently – notably with comments from bloggers who have publicly spoken about losing their mothers, only to be approached by PRs to plug their Mother’s Day agendas. Surely a little research could go a long way to avoid causing them unnecessary distress. The spirits world is unquestionably bettering itself every day. Brands and businesses have made substantial improvements to create an environmentally conscious industry – one that’s been massively welcome and is imperative to our future. Nevertheless, it’s clear that more still needs to be done to create a wholly compassionate drinks industry, with human empathy deemed just as important as being eco-friendly. This includes everything from the eradication of gendered spirits, workplace harassment, and an equal ratio of male to female employees (including at senior levels) – to the seemingly simple act of taking the time to consider the feelings of the person on the receiving end of that marketing email. It doesn't end up in cyberspace – there's a living, breathing person at the end of the chain, and money in your pocket should not come at the cost of their emotional wellbeing. For while brands may see celebratory occasions such as Mother’s Day, and others like it, as a means to a quick sales boost, for others, it could be a painful date they may not want reminding about at all. It’s not OK to assume everyone has a mother – and in an era when social media feeds will be flooded with pictures and posts celebrating mothers on Sunday 31 March (and of course, they should be celebrated) a simple ‘opt out’ email could be just the olive branch some people need to know that their loss is not being overlooked in the search for sales. In a week when the world has seen great tragedy from New Zealand to Africa, compassion, in any form, must be welcomed – and mindful marketing is as good a place as any to start.

SB Voices: The dark side of hospitality

Nicola Carruthers — Fri, 08 Feb 2019 13:00:10 +0000

Staggering statistics and shocking stories have depicted the disturbing frequency of harassment in the hospitality industry. While movements and initiatives have started to bring the issue to the fore, there is still more to be done to combat abuse.

If you work in the hospitality industry you may be no stranger to stories of being overworked, unfair pay, drug use, bullying, violence and sexual harassment in bars, pubs and restaurants. The prevalence of sexual harassment in our culture today is shocking. There have been plenty of studies in the last couple of years that have shown the unrivalled amount of harassment in the on-trade. Preliminary findings of the Not on the Menu survey by Unite in January 2018 showed that nine out 10 hospitality staff have experienced sexual harassment at work. Of those who reported that they were sexually harassed at work, more than half said the perpetrators were members of the public and another 22% said they were harassed at the hands of a manager. In the workplace, harassment can happen between two employees, but also between a customer and employee. As the face of the venue, bartenders and front-of-house staff are depended upon to provide a welcoming and friendly service, which can all too easily be misconstrued by patrons, who then exhibit unwanted attention and inappropriate behaviour. Just yesterday, I wrote about a new initiative from journalist Victoria Stewart and public relations officer Hannah Norris that seeks to address “toxic behaviour” in the hospitality industry, called Hospitality Speaks. Launching at the end of March, the non-for-profit platform will create a “safe online space” for hospitality workers to share their stories of bullying, harassment and discrimination, anonymously. The aim is to improve working conditions in the hospitality industry by engaging with employers and workers to identify abusive behaviours and practices, champion employers who are pioneers in staff welfare, and establish an industry standard for behaviour and ethics. Around the world, game-changing movements including Time’s Up and #MeToo have helped to instigate a wave of reaction throughout numerous industries, including hospitality. The #NotTheJob campaign was launched in October 2018 by Birmingham Yardley MP Jess Philips, calling for “zero tolerance of sexual harassment” in the workplace. Philips asked followers on social media to share their experiences of harassment while working as service staff across all industries, but it was those working in pubs and bars who were the most vocal. The UK government also recently announced a package of commitments to tackle sexual harassment in the workplace, which will include the introduction of a statutory code of practice on sexual harassment. Another prominent example in the UK is the Ask for Angela campaign, which aims to prevent violence and anti-social behaviour and to empower victims to make a decision on whether to report incidents. The campaign encourages visitors in bars, restaurants and cafes to ask for ‘Angela’, a code word to notify staff that they are in an uncomfortable situation and need to safely leave the premises. Meanwhile, education and training have also been critical to addressing and preventing threatening situations. Washington DC-based firm Safe Bars, which launched in 2016, holds two-hour bystander-intervention training for bar staff with the goal of creating a safer and more welcoming nightlife culture. Last year also saw annual New Orleans festival Tales of the Cocktail take a stand for sexual abuse and partner with Sexual Trauma Awareness and Response (STAR), a Louisiana non-profit organisation that provides support and education for those affected by sexual trauma. The festival also provided a 24-hour hotline to report sexual violence and held a seminar on the issue. Undoubtedly there is a great amount of work left for the bar industry to do in order to stamp out harassment. But it’s taking these small steps towards open discussion that can lead to a safer and more positive working environment. We need more education, open dialogues and a strict code of conduct in the industry if we’re going to make a change for the better.

SB Voices: It’s time for Japanese whisky to be braver

Amy Hopkins — Fri, 18 Jan 2019 13:30:51 +0000

Suntory’s new World Whisky Ao is a step in the right direction, but, Amy Hopkins argues, it’s time for bolder, braver moves to give consumers a truer understanding of Japanese whisky.

One of the highlights of my career as a drinks journalist so far is a trip I took to Japan in 2016. I was there to judge a cocktail competition, but arrived a few days early to travel to a number of distilleries and meet the people behind the brands. It was a fascinating and enlightening fortnight, and one I’ll always remember well. Before I headed east, I felt I had a decent grasp of the country’s whisky industry in terms of its stock shortages and price hikes, stemming from its booming popularity, which continues to this day. But on reflection, it was clear that as a relative newcomer to the world of drinks, the unique complexities of the Japanese whisky industry had thus far eluded me. Walking around some of the larger facilities I observed stills of all shapes and sizes – quite different to the Scotch whisky distilleries I had toured where, usually, still houses contained a uniform set of equipment built to create a consistent house style. With Japanese whisky so inspired by Scotch, why are its still houses so different? I was told this was because, unlike Scotch, there is no culture of buying or swapping whisky stocks to create blends. In addition to the unexpected rise in international and domestic demand for Japanese whisky, this competitive and closed ethos has surely augmented stock constraints. To my even greater surprise, I was told, quite casually, that to remedy shortages, many producers – even the big names – import whiskies from abroad to blend with their own liquid and bottle as ‘Japanese whisky’. Since industry regulations are loose and there is no Japanese whisky GI or equivalent, such practice is legal, and is even embraced as a core part of the industry. “It is one of the possible ways to create whisky with complex and interesting flavours,” one brand representative told me. Another producer said that since blends are more affordable for consumers, new malt whisky distilleries are left with no choice but to buy grain whisky from abroad due to an absent domestic third party market. For a long time, Japanese whisky was a niche product on the international market – something for educated drinkers and not widely accessible or understood. Now that it has assumed mass appeal, and at a time when consumers demand optimal transparency, uncomfortable questions are being asked. Step in the right direction Many industry stakeholders have called for the creation of stricter regulations for Japanese whisky, but opinion is divided over the likelihood of such action being agreed and activated. In the meantime, what is the solution to ensure consumer trust is not lost? For many, the answer is in labelling and truthful product descriptions, and Suntory’s new World Whisky Ao was largely seen as a step in the right direction. The product is a made using liquid from Irish, Scotch, American, Canadian and Japanese distilleries. Brand owner Beam Suntory owns distilleries in each of these countries, but the exact origin of the liquid used has not been confirmed. It has gained a lot of attention from the trade and consumers, and I agree it is certainly a smart move in the face of stock restraints and a growing interest in so-called ‘hybrid’ products that defy traditional categorisation. But does it signify transparency? In a way, yes – it identifies itself as a blend of whisky made with liquid distilled and aged around the world. It has also, consciously or inadvertently, sparked more conversations about transparency in Japanese whisky, and drawn attention to the fact that many ‘Japanese whiskies’ are, indeed, also technically ‘world whiskies’. But, Ao is branded as ‘world whisky’ that contains Japanese whisky, not a ‘Japanese whisky’ that contains world whisky. Now, I don't know if Suntory relies on imported whisky to bulk out its domestic supplies, but transparency would be exponentially aided if more brands that do so label their products accordingly. A very small number of producers, most notably Chichibu, have made such moves – Ichiro’s Malt and Grain lists the US, Canada, Ireland and Scotland as the origins of some of the liquid used in its final blend. It’s an understandable risk for Japanese whiskies to explain their complexity is often derived from international sources, but the long-term benefit of aiding consumer understanding will surely make it a risk worth taking.

SB Voices: Can Irish whiskey reinvent Scotch?

Melita Kiely — Tue, 08 Jan 2019 12:34:42 +0000

Irish whiskey’s popularity has grown at an astounding rate in recent years. But rather than stealing market share from its Scottish counterpart, could it help redefine Scotch whisky's image?

Yesterday (Monday), the tables were turned and I found myself in the hot seat being quizzed about Irish whiskey for BBC Radio 4 show You & Yours. As someone who’s much more comfortable firing questions, rather than being in the firing line, it was a nerve-wracking experience – but a reality check about how people outside of the spirits industry still perceive whisk(e)y. As is often the way in the media world, time was against us and the radio interview took a different turn to what I’d been expecting and prepared to answer. Thankfully, the written word isn’t quite as time sensitive as live broadcasting, allowing me to reflect in more detail on the programme's discussions. The show was interested in highlighting Irish whiskey’s growing popularity, which has enjoyed phenomenal success over the last few years. In 2013, there were just four operational distilleries in Ireland. This number had multiplied to 21 by November last year, when Waterford’s Blackwater Distillery switched on its stills. One of the questions I was asked during the You & Yours interview was whether Irish whiskey was adding to the market, or taking away from Scotch. From where I’m standing, and from interviews I’ve conducted myself in the past, Irish whiskey is definitely adding to the whisk(e)y scene and helping it thrive. I see no need why it has to be an ‘us versus them’, or ‘Irish versus Scotch’ rivalry; there’s room for everyone (provided products are of high quality) and there are benefits to be enjoyed by both sides – and other whisky styles as well – if Irish whiskey continues to flourish. Before I continue, let me be clear: I’m a big whisk(e)y fan (another talking point we had no time for on air). I love Scotch, I love Irish whiskey – I spent New Year’s Eve putting my Bourbon Old Fashioned-making skills (and drinking ability) to the test (results: questionable…) But Scotch has had a long-held reputation of being a drink for an older generation, ‘a man’s drink’ – again, something that was supposed to be explored in more detail during the programme, but was omitted due to time constraints. I know these historic notions are not something people like to hear about Scotch, but it’s also not helpful to anyone for us to bury our heads in the sand and pretend that these misconceptions don’t still exist. They do. It’s why the industry gets so excited about bartenders mixing Scotch in cocktails, why we need campaigns such as #OurWhisky to show people what the modern-day whisky drinker looks like – and no, they don’t all look like your grandparents, but that doesn’t mean there isn’t still a large section of society that holds onto this ideal. For whatever reason, Irish whiskey has managed to avoid being typified in the same way as Scotch – and if it is able to bring newcomers to the category because of that, it can surely only help Scotch in its fight to break down misconceptions about who whisky is for and how it can be enjoyed. And that’s why I don’t think it’s a case of Irish taking away from Scotch; there's a global behavioural shift towards whisky that still needs to happen, and if one part of the whisk(e)y category succeeds at this, there will be more opportunities for the wider whisk(e)y world to also benefit. Evidently, there’s huge work to be done if we are to really change people’s views on whisk(e)y. The vox pops that aired before my interview were fiercely against Scotch and in favour of Irish to emphasise the latter’s popularity. “It tastes like dirt,” quipped one interviewee, who expressed her disdain at peated expressions. Of course, we, within the industry, know that not all Scotch is peated. And if a person is a fan of Irish, they will most likely be able to find a Scotch whisky that’s also palatable to them. However, it’s very easy to get stuck inside the industry bubble. Yes, there is fantastic work going on across the sector to remove prejudice against whisky, to open up the category to more people, regardless of gender, regardless of age, regardless of class status – but more still needs to be done. We still have not reached a point where Scotch whisky is as approachable as we would like it to be, where it is as understood by consumers from all backgrounds and walks of life as we would like it to be. Change within the trade is great, and yes, change is also apparent among consumers. But I'm not convinced that it's at the level we like to tell ourselves it's reached. Your average consumer is still not as aware of the trends, styles and flexibility of the whisky category as those of us who are immersed in it on a daily basis. The vox pops that accompanied the interview are proof of this problem. The conversation about whisk(e)y needs to be louder, it needs to break through industry parameters and reach regular consumers on a relatable level. Only then will we start to see real change in people’s attitudes towards whisk(e)y and create a truly inclusive spirit.

SB Voices: Panic at Pernod Ricard?

Amy Hopkins — Fri, 14 Dec 2018 13:02:42 +0000

Pernod Ricard has an activist investor in its midst – Amy Hopkins asks what the move means for the French drinks firm, which is standing by its plan for long-term growth.

Alexandre Ricard didn’t – I feel pretty certain – ask Santa for a headache this Christmas, but a headache he has gotten. The CEO of the world’s second-largest drinks group was forced to defend Pernod Ricard’s profitability after it was called into question by activist hedge fund Elliott Management Corporation. Earlier this week, news broke that New York-based Elliott had built a 2.5% stake in Pernod over a number of months. The investor, known for its aggressive lobbying of company boards, accused the Jameson and Martell maker of failing to deliver best value to shareholders. According to Elliott, Pernod’s profit margins have been disappointing, while its M&A strategy – particularly its €6 billion purchase of Absolut in 2008 – has fallen short of expectations. The group also picked fault with Pernod’s corporate governance, which it believes has been driven by a blinkered and insular approach with little outside perspective. Alexandre Ricard hit back with a statement that offered a taste of things to come. With a dollop of diplomacy, the CEO said his firm "values constructive input from its shareholders", but added a caveat that left little room for ambiguity: Pernod's strategy "is working" and "is the right one" to enable “long-term value creation”. He said Pernod’s consumer-centric model – implemented by Ricard when he became CEO in 2015 – was “yielding results”. The strategy means the group is now structured around “moments of consumption”. Speaking to The Spirits Business last year, Ricard explained: “[This strategy] allows you to have a much more clinical approach from a strategic point of view, from an allocation of resources point of view, and from a route-to-market point of view as well. “It allows you to activate the right portfolio of brands at the right time in the right accounts. That’s a pretty massive shift. Organisationally, our marketing teams are no longer ‘white spirits’ or ‘brown spirits’ – no, ‘moment of consumption’.” The CEO also continued the cost-cutting work started by his predecessor Pierre Pringuet, which saw a 5% reduction in Pernod’s global workforce. Since the operational efficiency programme – dubbed Project Allegro – Ricard told SB his company is now “very clear” and “disciplined” from a “structure cost point of view”. US muscle But, according to Elliott, the work was not enough, and “successive operational improvement plans have failed to generate operating leverage”. The group wants to see Pernod “close the profitability gap with competitors” and has even suggested that it should “remain open” to the possibility of merging with another large spirits player, according to some reports. Elliott may have a track record of aggressive persuasion tactics, but Pernod Ricard is proudly French and its founding family still owns the largest stake in the business – 16% – with 22% of voting rights. Belgian firm Groupe Bruxelles Lambert, which is Pernod’s second-largest shareholder with a 7.5% stake, has also reiterated its support for the group’s management, while the French government has issued a statement claiming it "wants big French companies to have stable and long-term shareholders". Elliott’s 2.5% may not be enough for it to muscle in change, meaning a more diplomatic approach will be needed. The two have expressed a desire for constructive dialogue, but eyes will be turned to Pernod Ricard to see how the new partnership plays out in the new year. Alexandre Ricard is not one to shy away from challenge or change, but this will surely be one of the biggest upheavals in his short tenure as CEO.

SB Voices: Appreciating the industry

Owen Bellwood — Fri, 30 Nov 2018 10:00:19 +0000

SB’s Owen Bellwood recently travelled to Mexico for the final of Altos Tequila’s Tahona Society Collective Spirit competition. What he saw made him think, do enough people appreciate their bartenders?

At some point in their career, every bartender will be asked if they're going to get a “proper” job. While many are able to shrug off this rude question, I think it’s time the on-trade turned to these people and showed them what makes the industry so great – and infinitely more rewarding than many “real jobs”. Which brings me onto my time in Mexico, where I met some of the most inspirational bartenders working in the industry today. I traveled to the home of Altos Tequila for the final of its Tahona Society Collective Spirit, which was originally launched as an advocacy scheme and Margarita competition. Today, the competition is a chance for bartenders to create a new sustainable initiative, project or event that could improve the on-trade and their community. Over the course of four days in Guadalajara, Mexico, 15 teams of bartenders were given mentoring sessions on pitching, finance and creating business plans – have many people in regular nine-to-fives ever had to go through this? They then had to pitch their businesses to a fierce panel of experts, made up of Altos Tequila co-founder Dré Masso; Pernod Ricard House of Tequila vice president Christophe Prat; Shark Tank Mexico executive producer Kirén Miret; and co-founder of design studio Agenda 28 Valerie Kramis. I don’t know about you, but I wouldn’t be too confident pitching to that crowd. All this is an impressive achievement before you even consider the businesses these bartenders were concocting. Loga Raj, from Singapore, was there to pitch Life After Bars, a charity that aimed to help ex-convicts find work in the hospitality industry. The UK’s entrant, William Campbell-Rowntree, had created Wstd Soul, a business that would collect waste plastic from London’s bars and repurpose it into useful items for the on-trade. There were also schemes to end homelessness, businesses that would use food waste to create cocktail ingredients and a company that aims to reduce water waste in cocktail bars. Then, there were the winners. Alex Black and Makenzie Chilton triumphed with their business, Mind The Bar – a mental health resource, information and support system for the hospitality industry, which focuses on the major issues of depression, anxiety, addiction and workplace harassment. Black gave a heartfelt pitch that showed how essential support like this is to the on-trade, before the pair walked away with US$50,000 – which they say will help them to make a real difference in Vancouver and the rest of Canada. I understand that a lot of other people have taken steps to do their bit to save the planet and its people. But I think there are few people who would expect this kind of action from their local bartender. It's about time that the world's drinkers began to realise the talent of the people serving them, and competitions like this could be the first step to achieving this.

SB Voices: The Scottish rum boom

Nicola Carruthers — Fri, 16 Nov 2018 12:40:43 +0000

Scotland is becoming known for something other than its signature whisky as a number of rum producers fire up production. Nicola Carruthers takes a look at the brands stirring the category.

While Scotland is of course well known as a producer of quality whisky, it now seems that another Scottish libation is gathering pace: rum. Scotland is thought to have connections with rum dating back to the 17^th century when a sugar boom led to Glasgow’s ‘golden age’ of sugar. Between 1650 and 1750, the city was a hub for rum production. This month has seen the opening of what is thought to be the first rum distillery in Glasgow in 300 years – Wester Spirit Distillery. The site is inspired by the city’s “heritage, reputation and strong connection in distilling rum”. Rum may be more commonly associated with the tropical islands of the Caribbean than the rugged British Isles, but in 2015, rum distillation came to Scotland for what was thought to be the first time since the 18th century. Dark Matter Distillers, based in the Aberdeenshire town of Banchory, created its first product – a spiced rum – using imported sugarcane molasses. Then there’s SeaWolf – launched in November 2016 – the “first” white rum to be distilled on Scottish soil from the team behind renowned Edinburgh bar Bramble. At the time, co-creator Mike Aikman said: “British rum is about to have its time in the spotlight and we aim to be at the forefront of this.” Meanwhile, Scotland-based NB Gin made its debut in the rum category last year with the launch of a white rum, a white “fruity” rum and a “London Dry spiced” rum. Another new player to move into the Scottish rum category is Matugga Distillers, which last month opened a new site in Livingston – thought to be the first rum distillery in central Scotland. The company produces Matugga Golden Rum and Matugga Spiced Rum, which were originally produced in England before moving production to Scotland. Matugga has also unveiled a crowdfunding campaign to raise £30,000 (US$38,600) to support its “ambitious expansions plans”. While it hasn’t peaked the interests of any of the big players just yet, if other spirit sectors are anything to go by, it may only be a matter of time before the industry goliaths want in on the action.

SB Voices: Non-alcoholic ‘spirits’ need transparency

Melita Kiely — Fri, 12 Oct 2018 11:26:39 +0000

As the popularity of low- and no-alcohol drinks starts to show longevity, it’s time for those so-called non-alcoholic ‘spirits’ to be more open about their products.

We’re in the midst of a behavioural shift towards alcohol, spearheaded by generation Z and millennials, so we’re told. As monthly campaigns such as Dry January and Go Sober for October gain traction, the low- and no-alcohol trend has also been taking hold. Earlier this week, a new study published in the medical journal BMC Public Health showed a clear decline in alcohol consumption among the under-25 demographic, with 29% of 16- to 24-year-olds choosing to abstain from alcohol in 2015 – up from 18% in 2005. But it’s not just young people opting to take a healthier approach to alcohol – the study revealed “almost all sub-groups” were demonstrating a greater number of non-drinkers, suggesting non-drinking is becoming “more mainstream”. And as time passes, it's becoming more apparent that a lower alcohol intake is a long-term lifestyle choice, rather than a passing trend. As an industry that has been pedalling a mantra of ‘drink less, but better’ for years, to finally see this message catching on has got to be a welcome achievement for all. We are all aware of the harmful effects that can arise from alcohol, but also how enjoyable, social and delicious it can be when enjoyed in a responsible manner. The rise of abstention and low-alcohol interest has also created an offshoot “spirits” category – that of the non-alcoholic distilled “spirit”. Seedlip was the first brand to really captivate an audience with its inaugural product Seedlip Spice 94, followed by additional expressions Garden 108 and Grove 42. The aim of the brand was to offer a “sophisticated alternative” to alcoholic drinks. Since Seedlip’s launch, others have ventured into the non-alcoholic distilled spirits sector, including most recently Ceder’s, which gained distribution in the UK through Pernod Ricard earlier this year, and Stryyk, launched by the founder of Funkin cocktail mixers this summer. Each brand has disclosed details about botanicals and distillates used, whether they be orange peel, juniper, rosemary, cloves, cucumber or camomile – all flavours commonly seen across alcoholic spirit brands. Though as of yet, the nitty-gritty details about how non-alcoholic ‘spirits’ are made have been kept under wraps. “The botanicals are distilled,” we’re told – but distilled how, with what? Water? Neutral grain spirit (NGS)? Something else? A spirit is alcoholic, so to attach this word onto the end of a zero-proof product could be misleading, particularly if no further details about how the liquid is manufactured are disclosed – and even more so if no alcohol was ever present to begin with in the production process. I recently spoke to brands including Seedlip and Ceder’s, which do use NGS at the start of production to macerate their botanicals, which are then distilled individually to remove the alcohol, leaving behind a non-alcoholic distillate. But for those brands that put water and botanicals into a still – which is essentially a kettle in simplistic terms as I’ve been told on many a distillery visit – are consumers being duped into buying a very expensive flavoured water that’s simply been heated up in fancy apparatus, condensed, bottled and then sold under the guise of a ‘distilled spirit’? The cynic in me does wonder. And if this non-alcoholic, low-abv trend is really here to stay, consumers deserve the same level of transparency as they would with any other ‘spirit’.

SB Voices: Could travel retail’s boom soon be bust?

Amy Hopkins — Fri, 05 Oct 2018 12:16:03 +0000

The global travel retail (GTR) sector overcame numerous hurdles to post solid growth in 2017 – but internal fissures could cause it to rupture, says Amy Hopkins

On the surface, GTR is in rude health and continues to bounce back from a shock decline in 2015. According to Generation Research figures revealed at the TFWA World Exhibition & Conference, total duty free and travel retail sales for the year grew by 9.5% to US$69.3 billion. Wine and spirits sales in the channel increased by 8.5% to US$11.3bn. This growth was not easily gained – as an industry that depends on consumers’ ability to both travel and spend, GTR is affected by numerous geopolitical, economic and social factors. In his last public address as president of the TFWA, Erik Juul-Mortensen noted that the channel has “never before faced so many challenges to its operating environment on a global scale”. In addition to external hurdles, GTR faces a direct threat: e-commerce. As such, the industry is increasingly activating digital strategies to appeal to a constantly connected and price-conscious audience. During the TFWA Conference in Cannes, Dufry CEO Julián Díaz González said that GTR is the “only channel that can combine a physical and digital presence”. Arguably, the speed of this digital evolution needs to be accelerated. The panel discussion during the conference – which also included Claus Heinemann, co-owner of Gebr Heinemann, Dag Rasmussen, chairman and CEO of Lagardère Travel Retail, and Susan Whelan, senior executive vice president of King Power International Group Thailand – also acknowledged the dangerous risks inherent within GTR’s business model. Juul-Mortensen issued a rallying cry for the industry to “find a solution” to problems inherent within its ‘trinity’ model of landlord, retailer and supplier, which he said fails to share costs and rewards appropriately. Díaz González said retailers have “not been able to convince the landlords that we are not a sustainable business. They do not know what the answer is because they see the short-term. We need to convince the landlords that this is a collaboration and not a fight”. The model is becoming ever more compressed, with suppliers bearing the weight. A number of brands have already left the channel completely due to its rising costs, and many more may follow suit if a solution is not found. The panel agreed that the current model is problematic, but also acknowledged that action to rectify it has been limited. The buoyancy of global travel retail cannot be taken for granted, and the channel must continue to evolve if it is to maintain its reputation as the ‘sixth continent’ for consumer goods industries.

SB Voices: Behind the stills

Owen Bellwood — Fri, 21 Sep 2018 10:46:09 +0000

'Craft' spirit producers are great, but with an increasing focus on smaller brands it's easy to take for granted the impressive work carried out by the world's biggest producers.

Here at SB towers, it seems that rarely a week goes by without the emergence of a new fledgling brand, supposedly produced in a shed by a team filled with entrepreneurial spirit. Alongside these crafty start-ups, we're often told that millennial drinkers are more interested in the origins and story behind a brand than they are in the products themselves. While I think it's great to hear of people paying attention to history and provenance – it really is – sometimes we need to recognise the incredible infrastructure and operations undertaken by some of the world's biggest brands. There's few who would doubt Diageo's position as one of the world's most important producers of spirits – its globe-straddling brands such as Smirnoff Vodka, Gordon's Gin and Johnnie Walker blended Scotch whisky are recognised the world over. The company is also the largest producer of single malt Scotch whisky, operating distilleries such as Lagavulin, Talisker and Clynelish. It's clear then, that producing this many brands requires a slick operation. Last week, I travelled to Scotland to learn more about the company's production process, taking a look inside every aspect of its whisky-making empire – save for its maltings. After travelling from its Glenkinchie distillery in the lowlands of Scotland to its site in Leven, home to production of Gordon's and Smirnoff, maturation warehouses and Diageo's bottling plant, the scale of its operation blew me away. There was also a chance to look round the Abercrombie coppersmiths and see inside Diageo's archive, which further opened my eyes to the huge infrastructure that keeps a global company, such as Diageo, running day in and day out. This stark contrast from rural distillery to industrial bottling hall is not something many people are able to experience, but one thing that stood out to me was the breadth of skills required across the whole operation. Coppersmiths and whisky blenders train for years to hone their skills, while the bottling hall utilises experts to spot any issues as they arise and includes a team of craftspeople to produce bespoke bottles and one-off decanters. Throughout my time in Scotland, staff were eager to talk about the company. At the distillery, there was a palpable excitement about Diageo's investment in the region; at the bottling hall, team members were excited to show off their one-off creations; and at the coppersmith, the prospect of creating stills for a brand new distillery, Roe & Co in Ireland, seemed to have the facility in a buzz. This brand passion is something many people may not think of, and it's easy to forget the number of people behind your bottle of spirit. Even though there's no arguing that Diageo as a whole is a million miles from the grocery store John Walker owned when he blended his first Scotch, I was surprised to learn of the skills required and the roles filled across the production of vodka, gin and whisky. I was also impressed by the amount of pride from many of its staff, which would rival that of any 'craft' distilling start-up.

SB Voices: Thanking the on-trade

Nicola Carruthers — Fri, 14 Sep 2018 11:00:57 +0000

Hospitality can be a tough and challenging career – but there are some brands rewarding and supporting the on-trade with interesting initiatives and events.

Can we just take a moment to appreciate the hard work that bartenders put into making our drinks and providing a welcoming experience? Whether it’s a late-night club, a swanky hotel bar, or an all-day drinking and dining destination, the on-trade puts the hard graft in at all hours of the day. More brands than ever are showing their support for the on-trade, with some of them spending their time and money on education. Bombay Sapphire is achieving success with its Glasshouse Project, a bartender brand advocacy initiative that is now being taken global. While Maker’s Mark is doing something similar with its bartender engagement programme across the UK. Last year, Bacardi Brown-Forman Brands launched Jigger, Beaker, Glass – a UK-wide tour comprising workshops and seminars with talks from noted bartending experts. There are also brands that are finding a way to reward the hospitality industry with fun-filled activities at no expense. One example is William Grant & Sons-owned Scotch whisky Glenfiddich, which this week hosted the Glenfiddich Festival Experimental #2 opposite its Speyside distillery as a way to thank the on-trade. The event, which initially launched last year for the Scottish on-trade, opened its doors to the bartending community across the UK for the first time this year. On Sunday, I, along with 700 bartenders landed in Dufftown for two days of live music, whisky tastings, and distillery tours. The free event provided drinks and food tokens for pop-up Scottish vendors, whisky cocktails and a first-hand tasting of the new Glenfiddich Fire & Cane – a smoky Scotch whisky finished in rum casks. The packed programme included a lengthy list of Scottish music acts along with headliners Razorlight, Twin Atlantic and Example, comedy acts, silent discos, and yoga sessions. A number of free tours of the Glenfiddich Distillery were also held throughout the event, taking in the warehouses, stills, bottling hall and culminating in a blending masterclass. The festival was a great way for likeminded individuals, both experienced and new to the industry, to come together and celebrate after a hot summer of slinging drinks and ahead of the usual busy Christmas period. William Grant & Sons plans to make the event an annual pilgrimage for the industry – and other drinks companies may well follow suit with similar events. While showing its support and gratitude to the industry, the event is also an extremely effective way to get bartenders talking about the Glenfiddich brand and encourage them to promote and use it at work. It’s not just the brands that need to thank the people behind the drinks. A bit of appreciation for the industry by saying a simple thanks or giving a tip for excellent service can go a long way.

SB Voices: Is alcohol the enemy?

Melita Kiely — Fri, 24 Aug 2018 12:45:44 +0000

With so much information available regarding "safe" levels of alcohol consumption – much of it contradictory – is ditching booze altogether really the best option to lead a long, happy and healthy life?

It’s been one of those weeks in the spirits sphere when numerous reports have been released condemning alcohol consumption in one way or another. Over the years, SB has reported on dozens of health studies into the effects of alcohol – and the pattern appears to be that as soon as one is published another emerges with contradictory findings. For example, in 2015 the National Institute for Health and Clinical Excellence (Nice) advised there was “no safe level of alcohol consumption” and that middle-aged people should cut down on their intake to reduce their risk of developing dementia. A couple of years later in August 2017, the findings of a 29-year study, published in the Journal of Alzheimer’s Disease, claimed men and women who drank one alcoholic beverage a day were more likely to reach the ripe old age of 85 without dementia. But roll into 2018 and the advice alters again. In February this year, alcohol was branded a “major risk factor” for early-onset dementia amongst heavy drinkers. That brings us to the latest global study published in the Lancet journal this week, which claims there is “no safe level of alcohol consumption” (a worrying sentiment for someone who works around booze). The Global Burden of Disease analysed levels of alcohol use and its health effects in 195 countries, including the UK, between 1990 and 2016. Participants were aged between 15 to 95 years old, and those who abstained from drinking were compared to those who had one alcoholic drink a day. The findings revealed that out of 100,000 non-drinkers, 914 would develop an alcohol-related health problem such as cancer, or suffer an injury. However, an extra four people would be affected if they drank one alcoholic drink a day. Double your intake to two alcoholic drinks a day, and an extra 63 people were struck down with an ailment. Increase this to five drinks a day, and there was a spike of 338 people who developed a health problem. Argument for abstention “This widely held view of the health benefits of alcohol needs revising, particularly as improved methods and analysis continue to show how much alcohol use contributes to global death and disability,” the study concluded. I’m in absolutely no denial that there are myriad health issues related to alcohol consumption – heart problems, liver cirrhosis, cancer, weight gain (and the uncountable issues that can subsequently arise). “Our results show that the safest level of drinking is none,” the study urged in its final conclusion. However, just last month, a study cautioned that going teetotal in midlife was linked to a higher risk of dementia (45%) compared to those who consumed between one and 14 units per week, the current recommended guideline in the UK for men and women. Who should we listen to? There was an interesting post published in response to the study by Professor David Spiegelhalter, chair of the Winton Centre for Risk and Evidence Communication at the University of Cambridge, in which he wrote this thought-provoking point: “The paper argues that their conclusions should lead public health bodies ‘to consider recommendations for abstention’. “But claiming there is no ‘safe’ level does not seem an argument for abstention. There is no safe level of driving, but government do not recommend that people avoid driving. “Come to think of it, there is no safe level of living, but nobody would recommend abstention.” Nobody with an iota of knowledge about the potential negative effects of alcohol opts to drink wine, beer or spirits in the hope of leading a healthier lifestyle. But alcohol can be fun. A glass of wine with dinner, a gin and tonic after work on a Friday, a cocktail on a Saturday night – alcohol is a social lubricant. It brings people together and, ultimately, so much of it is utterly delicious. Yes, there are innumerable risks to people’s health if it’s not enjoyed in a balanced and responsible manner – only fools would argue otherwise – but life is for living. If we abided by every cautionary word of advice to not eat this particular food or consume that particular drink in order to live a long and healthy life, is that really living at all? I’m by no means arguing that we should ignore studies such as the one published in the Lancet today altogether. But as cognitive beings we should be capable enough to take the information that’s out there and make individual, informed decisions about our own health and well being.

SB Voices: A world of discovery

Amy Hopkins — Fri, 17 Aug 2018 12:36:00 +0000

After an encounter with Steven Soderbergh’s Singani 63 brand, Amy Hopkins wonders what other ‘undiscovered’ spirits are out there.

How many of you have heard of Singani? I knew nothing about the spirit until news emerged in 2015 that American director Steven Soderbergh, of Ocean’s Eleven and Sex, Lies, and Videotape fame, had launched his own iteration of the Bolivian spirit in 2015. The brand, titled Singani 63 after the filmmaker’s birth year, is produced at the Casa Real distillery and recently made its debut in the UK. I attended the launch event earlier this summer and after tasting the spirit – whose character is most similar to pisco – my interest was truly piqued. It’s soft, dry, bitter, savoury and a little sweet all at once. Its complexity and story have already grabbed the attention of top bartenders Ivy Mix of Leyenda and Alex Day of Death & Co, who champion Singani 63 in their cocktail lists. During the event I was told that Soderbergh fell in love with Singani while filming Che in Bolivia, after hearing about the history and unique, artisanal production of the spirit. According to Jonathan Brathwaite, chief operating officer at Singani 63: “The quality to be Singani is more finite than any other spirit category in the world.” Under its appellation of origin, Singani must be distilled from Muscat of Alexandria grapes, and these grapes must be grown and distilled in particular areas of the Bolivian Andes at certain altitudes. Popular in its native Bolivia, Singani is yet to make its mark on the international drinks landscape, but Soderbergh’s Singani 63 is hoping to change that, and bring the category to curious international audiences. To build a ‘national’ spirit category outside of its domestic market is no easy feat and requires not only the right contacts in the right places and an ambassadorial team of industry influencers, but the success of an international educational mission. For Singani 63 to enter the cocktail canon, the brand must first ensure bartenders and consumers understand what exactly Singani is – after all, its specificity is what makes it so interesting. Other categories have set the same task, with some more successful than others. Pisco (whether from Chile or Peru) has been aided by the popularity of its namesake Sour, while cachaça has spent years trying to expand beyond its native Brazil – but even after hype around the 2014 World Cup and 2016 Summer Olympics, the category hasn’t managed to become ‘the next big thing’. Aguardiente has barely stepped outside of Colombia’s borders. Over the other side of the world, there’s a host of insulated categories still largely undiscovered by international bartenders and spirits fans. Soju and shōchū shift enormous volumes in their domestic Asian markets, but are relatively unknown by wider audiences. Similarly, the international reach of Chinese spirit baijiu is mostly limited to expat buyers. However, important steps are being taken. Earlier this year, baijiu maker Kweichow Moutai Company signed an agreement with the Wine and Spirit Trade Association (WSTA) to build a “strategic” partnership between the UK and China. Moutai, the world’s leading baijiu brand, is aiming for 10% of its total sales to come from international markets by 2020. Meanwhile, spirits giant Diageo has thrown its weight behind baijiu and is seeking to increase its stake in Shui Jing Fang. Bacardi acquired super-premium Leblon cachaça in 2015, and one year later Brazil and Mexico signed an agreement to “recognise and protect” Tequila and cachaça. Now the team behind Singani 63 has hired the same lobbyists as Leblon to petition the US government to officially recognise the appellation of Singani. While undoubtedly difficult, the potential for these national spirits to enter the international realm is there, particularly as drinks trends become more global and consumers more curious and educated than ever before. Whether their ambitions will be hindered by at tit-for-tat trade fracas is another question all together.

SB Voices: Spirits, beer and lessons to be learned

Owen Bellwood — Fri, 10 Aug 2018 12:09:43 +0000

The craft movement has taken over the world of drinks. As the number of artisan producers rises every week, could spirits learn a thing or two from their lower abv partners in the beer world?

Call it what you want, small batch, artisan or craft, there's no doubt that the movement is taking over the spirits industry. From locally-produced gins to artisanal rums, today’s spirits market is flooded with products we’re told are created by avid drinks fans in their shed or kitchen. With the craft movement's prosperity in recent years, now may be a good time to take stock and consider how the industry can grow and improve before it risks running out of steam. If it hopes to develop further, I think it could be time for spirits to take a look at its seldom mentioned cousin – the world of craft beer. The beer industry, quirks aside, is made up of a wonderful community of producers, and taking inspiration from them could help drive the spirits world forward even more. There are three things the beer world does really well that spirits could learn from. First up, there's the collaborative brew, which I think is one of the greatest things about the beer industry today. These one-off bottlings are a chance for breweries from across the world to come together and share ideas, knowledge and brewing practices, while creating some amazing libations and bettering any future products from the brands involved. Why doesn’t the spirits world do this? Just imagine if fledgling brands lacking a little finesse could partner up with a more developed producer. They could create a killer one-off product and both brands could learn from each other and improve any subsequent releases. There’s also the range breweries offer. Beer geeks lose their minds over one-off batches and seasonal releases – and we've seen similar enthusiasm from limited edition spirits launches, but compare the numbers between beer and spirits and the disparity is clear. Let's keep this excitement over experimental spirits going, let's see more coming to the fore. Experimentation should be the selling point of the world's small-batch producers, those who remain unshackled by sky high sales targets. In short, doing something different should be what makes smaller, independent spirits producers different. Finally, there’s the beer festival. Festivals, such as the Great British Beer Festival taking place this week in London, are a wonderful thing. They are an opportunity for consumers to meet producers and for brewers to meet other brewers. Consumers can become more educated, interested and passionate about the category, while producers can search for answers to their queries and discover techniques that could make their brews better. The spirits world may have industry-focussed trade shows like Bar Convent Berlin, but the wonderful thing about beer festivals is that they're fun and focus on tasting, education and entertainment, and it's shows like this that the spirits industry needs. The small batch spirits world should be an exciting category full of new, innovative products intent on shaking up the market. Small scale producers shouldn't be locked in their sheds adding one extra sweetness part per million, they should be out meeting consumers and meeting producers and showing off their unconstrained innovations. This is what the inquisitive drinker wants, a point of difference, and if spirits producers can't provide this, they may be forced to move elsewhere.

SB Voices: A socially conscious era

Nicola Carruthers — Fri, 03 Aug 2018 10:09:52 +0000

In today’s cocktail culture, leading bartenders from around the world are driving change with progressive initiatives.

Socially conscious bartenders have stepped up their efforts with increasing effectiveness and productivity. It's an impressive movement and one that invites society at large to do even more. It's important for the community to come together to discuss and tackle issues that are permeating the industry. There are a number of different events that are bringing bartenders from around the world together to share their ideas with one another. From P(our), a non-profit bartender collective that explores issues in the drinks industry, to Tales of the Cocktail (TOTC), a six-day New Orleans cocktail festival that includes seminars covering discrimination, mental health and harassment. The representation of women in the industry has come to the fore with the likes of Lynnette Marrero and Ivy Mix, who founded female-only cocktail competition Speed Rack to raise money for breast cancer charities. TOTC also celebrates the work of women with its Dame Hall of Fame, which inducts notable women from the spirits and cocktail industries. Meanwhile, there’s been a new wave of mixed drinks that could save money, time, and resources for bartenders. The sustainability message is being championed by the likes of bartending duo Trash Tiki, New York-based consultancy project Tin Roof Drink Community and bars such as London’s Scout and Singapore’s Native. Hospitality is a career that’s often known for its ‘churn and burn’ attitude, and with the normality of the post-work drink and strange shift patterns that disrupt usual sleeping hours, it's easy to see how the industry can neglect its health. Tackling this widespread issue is Healthy Hospo, an initiative launched by former Bulleit brand ambassador Tim Etherington-Judge (pictured above left) that seeks to improve the health and wellness of the industry. The project incorporates a website providing free-to-use information, advice and support, events including practical workshops and seminars on health and wellness, and a consultancy that will work with employers to improve the health of the workplace. Chad Arnholt, co-founder of Tin Roof Drink Community, says bartenders are “investing in conscious decision making”. “The thought leaders and industry influencers are in a really prime position to be able to set trends that hopefully the industry at large will follow." The on-trade has never been in better shape – we’re seeing more and more industry leaders contributing to making a difference for the bartenders and drinkers of the future. I’m excited to see what this ‘modern’ bartender will look like in 2030.

SB Voices: Spirits and cannabis – a joint venture?

Melita Kiely — Fri, 27 Jul 2018 12:11:31 +0000

There’s a new psychoactive player working its way into law – cannabis. But does the spirits industry have what it takes to survive against this never-before-seen competition?

Weed, grass, skunk, hash – call it what you want, but the fact is that cannabis is giving the spirits industry a run for its money. By the end of 2018, the legal cannabis market is forecast to hit US$11 billion in the US alone – and more than double to US$23bn by 2022. At this point, the industry is expected to be worth a cool US$32bn worldwide, according to The State of Legal Marijuana Markets, Sixth Edition released by Arcview Market Research in partnership with BDS Analytics. Big bucks are at stake should the legal cannabis market really take off. But has this new psychoactive rival got spirits producers running scared? Has it heck – though it has certainly got the cogs whirring for damage control. Uruguay was the first country to kick-start the legal cannabis movement in 2017, and just last month Canada confirmed it would become the second country to legalise the drug in October this year. North America’s largest drinks distributor, Southern Glazer’s Wine & Spirits, wasted no time to become the first drinks distributor to move into cannabis distribution. The group created a dedicated subsidiary exclusively for the representation of cannabis in Canada, called Great North Distributors, and has already struck a deal with cannabis producer Aphria to distribute its goods nationwide. The US is also making moves towards a potential legislative U-turn as legalisation creeps across the country from one state to another, though prohibition remains at a federal level. Eight states and the Washington DC have already legalised recreational use of the drug, and 30 in total now permit medicinal use. With the taboo surrounding the drug lessening, and a growing number of markets now producing and selling cannabis, the drinks industry has been looking to cash in on this new endeavour, before they’re potentially cashed out of the market space. The trend is already taking shape, and the lines between alcohol and cannabis are already being blurred. Last November, Seattle-based company Tarukino introduced six cannabis-infused beverages to its range of products – but it was not the first. Marie Brizard Wines & Spirits released Shotka in 2014, a cannabis-flavoured vodka. And there are other beverages with THC or CBD cannabis compound infusions and flavourings coming to the fore. The biggest drinks producers in the business have been a bit more coy about the situation. Earlier this year, Beam Suntory’s CEO said the group is “keeping a close eye” on the cannabis market in the US, and Diageo toed a similar line this week at its financial media briefing. Careful consideration Legislators are, understandably, also taking great caution when it comes to legalising recreational cannabis use – and rightly so, as there should be with any psychoactive substance. But if alcohol is legal, then why not cannabis too? However, this is too simple an argument. Yes, alcohol is widely available to adults, but it also comes with myriad problems, some of them potentially fatal: addiction, poisoning, liver cirrhosis, cancer, the list goes on. For all the drinks industry’s endeavours to encourage a ‘drink responsibly’ and ‘drink less, but better’ culture, troubles remain – and so does its legal status (for the majority of markets). Is cannabis any better or worse? That’s for science to determine. Research so far points to potential harms including tobacco-related ailments such as cancer and heart disease, mental health issues, memory problems, increased risk of stroke. It would be imprudent not to take these factors into account when assessing its credibility for legalisation. But for all its possible pitfalls and problems, the lucrative attraction of a legal cannabis market is there – and so is an apparent billion-dollar audience ready to embrace its offerings. Leading analysts, such as Spiros Malandrakis, industry manager, alcoholic drinks, Euromonitor, have long warned of the threat of cannibalisation of the spirits industry when, not if, cannabis takes off – and encouraged producers to make their moves into these new realms quickly, but carefully. “Cannabis cannot be stopped. It will not be stopped,” Malandrakis told me earlier this month. And with the pace cannabis legalisation is now moving across the western world, his statement rings true. “We’re looking at a fundamental core change of the entire industry here, a radical change after centuries,” he added. It’s an enormous change for a sector that has, until now, been monopolised by alcohol. In a few years time, will consumers be choosing between cocktails and cannabis? Spirits or spliffs? This newfound era feels like the start of a cannabis versus spirits revolution – and the race is only getting started.

SB Voices: What does the Brexit white paper mean for spirits?

Amy Hopkins — Fri, 13 Jul 2018 12:19:09 +0000

If one certainty has come from the publication of Downing Street’s Brexit white paper, it’s that uncertainty continues to pervade the UK’s impending departure from the EU.

Turbulence in the UK Government came to a head last week with the shock resignations of David Davis, Brexit secretary, and Boris Johnson, foreign secretary and face of the maligned Leave campaign. While Davis said prime minister Theresa May’s proposed Brexit policy would make “supposed control by parliament illusory rather than real”, Johnson said the proposals were akin to “sending our vanguard into battle with the white ﬂags ﬂuttering above them”. Prime minister May’s proposed policy, which was outlined during a Cabinet meeting at her Chequers estate earlier this month, has now been solidified and expanded on in a Brexit white paper, titled The Future Relationship Between the United Kingdom and the European Union. The prime minister said it delivered “a principled and practical Brexit that is in our national interest, and the UK’s and the EU’s mutual interest”. However, many others have echoed the concerns of Davis and Johnson of a perceived “soft Brexit” – US president Donald Trump even said it would “probably kill” a trade deal with his country. The document is sizeable, and requires careful digestion, but there are some headline points that can be gleaned by the spirits industry. Whether the sector has a broadly positive or negative reaction remains to be seen, and I am sure views will be expressed in the coming days. There are key elements that will impact all UK and EU industries with a focus on exports – such as the establishment of a “common rule-book” for the free-trade of goods, including agri-food. Commentators have suggested this will create a remarkably similar relationship between the EU and UK as that in the single market for goods. The paper states: “In designing the new trading relationship, the UK and the EU should therefore focus on ensuring continued frictionless access at the border to each other’s markets for goods.” In the words of Ed Conway, economics editor for Sky News: “In short, the idea is to stay in the single market for goods, but not services.” With regards to customs, the UK Government wants to implement a new relationship with the EU in the form of the Facilitated Customs Agreement, which would “remove the need for customs checks and controls between the UK and the EU as if they were a combined customs territory”. This would allow the UK to control its tariffs for trade with the rest of the world, while also collecting tariffs on the behalf of the EU. Another key point of the white paper is the government’s reiterated ambition to “avoid a hard border between Northern Ireland and Ireland”. Prime minister May has also promised to maintain a frictionless border between Northern Ireland and the rest of the UK. Irish spirits producers have previously expressed concern about how cross-border supply chains could be hit by a hard border. It remains unclear what that future holds for all-island GIs for Irish whiskey and Irish cream liqueurs when one part of the island will be in the EU and the other outside of it. The white paper also made clear that the free movement of people between the UK and EU will end. This of course has implications for all companies and sectors that rely on foreign workers. But for our industry, concern has already been expressed over the impact this could have on the on-trade. Many bartenders, waiters and other hospitality professionals are skilled individuals who hail from across Europe. The Brexit dossier does, however, state that there could be a “reciprocal” agreement with the EU that would allow skilled workers to come into the UK to do "paid work in limited and clearly defined circumstances" without visas. Nevertheless, there remains a risk that new talent coming into the nation could in some way be obstructed, whether they are given preferential access or not.

SB Voices: Collaboration feeds creativity

Owen Bellwood — Fri, 29 Jun 2018 12:23:02 +0000

Cocktail competitions, bartending conferences and symposiums all bring the brightest minds in hospitality together – and it’s precisely these opportunities to collaborate that are pushing the industry forward, says Owen Bellwood.

Collaboration can bring together different ways of thinking, new ideas and alternative ways of using the ingredients found behind a bar. In today's cocktail culture, a number of different events and gatherings are bringing bartenders from around the world together to share their ideas with one another. Bartenders in attendance can then travel back to their venues with an array of new skills in their arsenal that they can use to advance the cocktail making prowess of their bars and home city. Guest bartending shifts offer one of the simplest forms of collaboration – one bartender travels to a different bar in a new location and shares their cocktails with the staff and customers. It's a great chance for drinkers to try something new and for staff in the host venue to see how things can be done differently. Then, there's cocktail competitions, such as this week's Chivas Masters, which encourage bartenders from an international spectrum to work as a team and share ideas. On top of this, events such as the P(our) Symposium in Paris provide a platform for speakers from different disciplines to share their ways of thinking. As a result of each of these learning opportunities, trends once reserved for a niche style of bar – such as house-made distillates, infusions and home-made tinctures – as well as more sustainable and seasonal bartending practices, are spreading through the industry. The uptake of these trends is all down to the passion of the world's bartenders. Gone are the days of a grumpy, bearded bartender in a beanie hiding behind beer taps. Now, bartenders stand proud, excited to tell you about the processes behind making their drinks, excited for imbibers to try something new and always eager to learn more themselves. This is what has been driving the industry forward in recent years. While the classics will always be classic, young, ambitious bartenders are at the top of their game striving to invent their own creations, drinks that could become household names over the coming years. If a bar menu seems daunting because it includes ingredients such as tears, curried pineapple, grass, birch water or jet black soda, ask the bartender and get them talking. If you do this, you'll be able to find out what goes on behind the scenes – and then you'll have the ammo to put anyone in their place who says cocktails are overpriced. With a host of trade fairs and celebrations such as Tales of the Cocktail and Bar Convent Berlin just around the corner, it’s exciting to think what these melting pots of creativity will teach our local bartenders to shake up in the months that follow.

SB Voices: Give grain whisky a chance

Melita Kiely — Fri, 22 Jun 2018 11:00:01 +0000

It's surely only a matter of time before consumers catch on to the greatness of grain whisky – and when they do, they're in for a treat, writes Melita Kiely.

“Grain whisky is hugely overlooked,” laments Brian Kinsman, master blender at William Grant & Sons, as we’re chatting all things whisky during a brief visit to the Girvan Distillery in Scotland this week. Those clued-up on the whisky industry know the significance of grain whisky – the blended category wouldn’t be the global phenomenon it is today were it not for its grain whisky backbone. And while grain does appear to have been gaining greater traction in recent years, sadly it still sits in the shadows compared to blends and malts. There are some extremely successful grain whisky bottlings already available and leading the category: Hedonism from Compass Box, William Grant’s Girvan Patent Still, Diageo’s Haig Club – and even Irish whiskey is showing a thirst for grain expressions, with the likes of Pernod Ricard’s Method and Madness Single Grain and Teeling’s Single Grain whiskeys. So what exactly is stopping grain whisky from enjoying similar popularity enjoyed by blends and malts? “Flavour-wise, it ticks all the boxes; I think as an interesting drink it ticks all the boxes,” explains Kinsman. But like so many categories within the spirits industry, grain whisky’s success will be heavily reliant on consumer education – something Kinsman is not entirely sure they’re ready for. After all, confusion still abounds regarding the differences between malts and blends. “As a drink I’m absolutely confident grain whisky could be a genuinely mass drink,” Kinsman adds. “It’s about education – it’s another thing to know and it’s just going to be a slow burn. But I genuinely believe by the time I retire, single grain, or grain, will be significantly bigger than it is today. It’s almost a no-brainer because the flavour absolutely works and it’s just about letting people know what it is.” How grain whisky is marketed to appeal to this mass-market audience will take time for producers to figure out. How do you position it on a back bar, in a liquor store? How do you entice consumers to take a chance on a category they know very little about? Success doesn’t happen overnight, but with so much potential locked in the grain whisky category it’s great to see brands taking tentative steps towards figuring this all out with the new launches we’re seeing come to market. “If you get it into people’s hands, it will sell,” asserts Kinsman. And if endeavours pay off, grain whisky will undoubtedly be an enthralling whisky sub-category to watch.

SB Voices: Rise of low-abv spirits

Nicola Carruthers — Fri, 15 Jun 2018 09:33:36 +0000

As the low- and no-alcohol craze continues its unstoppable rise, Nicola Carruthers looks at the recent products tapping into the trend.

Signs of health and wellbeing have dominated the industry with increasing frequency. From all-natural ingredients to low-abv and zero-proof serves, consumers are clearly gravitating toward ‘healthier’ drinking experiences. Alcohol consumption declined for the second consecutive year in the US, according to a recent report by the IWSR. The drop was attributed to the “slow-building trend of moderation or not drinking at all”. In the UK, the first ever alcohol-free drinks festival took place last year, called The Mindful Drinking Festival. The event featured craft beers, wines, lower-sugar sodas, infusions and non-alcoholic ‘spirits’ all served-up by expert mixologists. And when it comes to spirits, there are a whole host of lower-alcohol options for consumers. Gruppo Campari’s Aperol has led the way for low-abv drinking, particularly with the popularity of its Aperol Spritz. The brand attributed its growth to the trend, rising 17.6% to four million nine-litre cases, according to recent Brand Champions data. Earlier this year, also saw the launch of a zero-abv spirit that “mimics the aromatic profile and complexity” of gin. Surendran & Bownes Edition Zero: Labdanum, the organic and vegan-friendly alternative to alcoholic drinks, was created in collaboration with Surendran & Bownes distillery as part of the company’s Distillers Development Programme. And even Diageo and Pernod Ricard are showing an interest in the trend and innovating in the category. Diageo took a minority stake in Seedlip in 2016 and also recently unveiled its Ketel One Botanical range. The ‘first-of-its-kind’ Botanical range is bottled at 30% abv with no artificial flavours, no added sugar and no artificial sweeteners, containing just 73 calories. Pernod Ricard’s Absolut vodka also introduced two flavoured vodkas into the UK market. Made from fruit juice, the expression have been created to appeal to the “increasingly health conscious who favour brands with natural ingredients.” The range has been designed to pair with soda and other sparkling mixers. And it seems there’s more to come from zero-alcohol spirit Seedlip. Head of new brands Clare Smith-Warner told The Spirits Business earlier this year that they are working on three new “standalone” brands for 2018 as well as a new Seedlip for the permanent range. As for the trends that appear to be emerging around non-alcoholic drinks, a number of bars are already catering to the growing need and dedicating ample menu space with flavourful and well-balanced no-alcohol drinks. What is clear is that for spirits producers to keep up with changing consumer demands and expectations, a non-alcoholic offering should be made available. The industry needs to adapt in order to survive.

SB Voices: Celebrating a milestone moment

Amy Hopkins — Fri, 08 Jun 2018 11:36:37 +0000

As The Spirits Business releases its 100^th issue, Amy Hopkins looks at all that has changed in the 11 years since the magazine’s launch.

When the first issue of The Spirits Business was sent to print almost 11 years ago, the world was a remarkably different place. Since then, wars have ended, governments have formed and dissolved, new technologies have made an indelible mark on the international marketplace, and economies have crashed, only to rise once more. Little could readers have guessed in October 2007, when SB made its debut, that Donald Trump – then seen as a famous property magnate with an eccentric hairstyle and presenter of the US version of The Apprentice – could become the world’s most powerful politician. And not even the most trusted of crystal balls could have foreseen the UK’s shock exit from the European Union or the prospect of peace between North and South Korea. One need only flick through our inaugural magazine to see that the spirits industry is also much changed today. In 2007, commentators were still reeling over Sidney Frank’s jaw-dropping US$2 billion sale of Grey Goose to Bacardi, and one feature in SB considered what the brand builder extraordinaire’s next move would be. While the US group had certainly created a spirits titan in Grey Goose, it didn’t make another transformative acquisition or sale, and was swallowed whole by one of its own partner brands – Jägermeister – in 2015. The issue also featured interviews with whisky veteran Sandy Hyslop, who at the time had recently become master blender for Ballantine’s, and the late Jack Daniel’s master distiller Jimmy Bedford, who sadly died less than two years later. Fast forward to February 2008 when SB ran an interview with the now disgraced Vijay Mallya, discussing his empire and plans for United Spirits’ newly acquired Whyte & Mackay whisky business. Much has changed for Mallya and USL, now controlled by Diageo – and it seems fair to assume that 2008 was a simpler time for the Indian tycoon. He did, however, predict that “India will be the biggest market for Scotch whisky in the next five to 10 years” – a sign of the unpredictability of spirits markets. Today, India is the fourth largest market for Scotch by volume, and the 13th in terms of value – discussions about the market’s 150% import tariff for spirits are as pertinent now as they were 10 years ago. The rapid growth of gin over the past decade is one of the biggest spirits success stories in recent history. Once seen as outdated and boring, gin has now been appropriated by that most coveted of demographics – millennials – and has assumed a whole new identity. In the UK, annual gin sales hit £1.4bn in 2017, the equivalent of nearly every British adult buying a bottle of the spirit. Its soaring popularity is in part to do with consumer interest in locally produced, provenance-led goods – that is, the boom in all things ‘craft’, ‘artisan’ and ‘handmade’. At the birth of SB, it was the big brands that were feted, but a swathe of successful smaller producers means very different market dynamics are now at play. The resurgence of spirits such as gin and Bourbon is also largely owed to the on-trade and its international network of classic cocktail bars. By going back to traditional values of craftsmanship, choice ingredients and impeccable service, the on-trade has ushered in a new era of high-quality bartending, which can be seen everywhere from Los Angeles to Leeds. The significance of the on-trade to the trends that have shaped the wider spirits industry cannot be underestimated. While change has indeed been staggering, many topics are seemingly locked in an echo chamber. In the editorial comment for the very first issue of SB, the imbalance of supply and demand for old Scotch whisky was lamented – a familiar story still relevant to today’s market. Similarly, the premiumisation of rum and Tequila was a hot topic. Looking back on our portfolio, it’s clear to see the magazine’s own growth, too, with production increasing from a handful of issues per year to one every month. And as demand for quick and easily digestible news grew, so did our online presence. Today, SB dedicates significant time and resources to making our news provision one of the best in the business, with an extensive daily newsletter and social media presence. Our magazine has also grown in size, covering a vast array of topics, regions and categories, with a much-enhanced focus on the on-trade. Each of the 100 SB magazines serves as a time capsule for the industry to look back on its remarkable journey, learn from past mistakes, recognise achievements and celebrate peers and friends, some of whom are no longer with us. With so much transformation over the past decade, one can only imagine what we will be writing about in 2028. The June 2018 edition of The Spirits Business magazine will be out soon.

SB Voices: Trendsetters

Owen Bellwood — Fri, 01 Jun 2018 11:59:21 +0000

The first six months in a new job can be overwhelming. Owen Bellwood says there are some amazing things to discover as a young drinks writer.

It's been just over six months since I joined team SB, and what a six months it has been. With an interest in on-trade stories and a, perhaps naive, ambition to visit as many of London's best bars as I could, my first six months as a drinks writer have been quite eye-opening. Having worked behind the bar for several years, albeit not the most trendsetting bar ever, I was aware of some cocktail trends and had heard rumours of the workings behind some of the world's best bars. However, seeing these techniques in action has been brilliant. The amount of bars producing their own ingredients, in London alone, is incredible. Everything from the cranberry shrub used in Three Sheets for its signature Cosmo to a fennel, orange and pepper vodka made by the bar team at Rake's for The Mad House cocktail. This practise has blown the world of cocktail ingredients wide open, and with a finite number of spirits produced, bartenders are able to create an infinite number of flavour combinations – mind blowing stuff. Scarfes Bar at The Rosewood Hotel has definitely created the most intriguing example of this. The team there created a cocktail menu inspired by famous faces and events from the last 18 years, with one cocktail inspired by Sir David Attenborough. To make his cocktail, the team made their own distillates from compost, grass and flowers, imagine that! I've also noticed that along the way to creating these ingredients, bars are increasingly looking at ways to use any waste products they create. Reducing waste in cocktail bars has never been more important, with bars around the world striving to use every part of an ingredient, such as the juice, skin and flesh from a lemon, lime or orange. Bartending duo Trash Tiki told me all about the steps they take to reduce waste behind the bar, which includes making cordial from watermelon skin, boiling down citrus husks to make a stock to use in mixed drinks and making an orgeat syrup out of toasted avocado stones, which are wasted by all those pesky millennials eating avocado toast every day – when will my generation learn! The high-pressure environment of the world's biggest cocktail competitions is also encouraging bartenders to use waste products and make their own ingredients. At the recent UK final of the Southern Comfort Southern Showdown competition, Thomas Hay-Owens, from Seaside Boarding House in Dorset, finished in the top three with a cocktail that used a home-made blackberry infusion and was topped with a sherbet made from the very same blackberries. While Charley Carrington, of Last Chance in Nottingham, created a twist on a Whisky Sour that used an egg white substitute made from lemon skins. I still have no idea how this worked but it was impressive. While there aren't a lot of bars that can spend upwards of £2,000 on distillation equipment, things like infusions, syrups and bitters can be attempted by any experimental bartender. I think this is one of the most exciting things I've noticed, while at present these techniques are reserved for the world's best bartenders, it's definitely something any bartender can attempt, I've even tried a few myself over the last six months, with wildly different levels of success.

SB Voices: Celebrating young writing talent

Amy Hopkins — Fri, 25 May 2018 12:26:22 +0000

Talent among young journalists in the drinks industry shone in the Alan Lodge Young International Drinks Writer of the Year competition, writes Amy Hopkins.

There are many ways to enter journalism, spanning traditional and less obvious routes. Myself and many other drinks writers I know came in through the door of mainstream news, others fell into the occupation by chance, and some pursued a passion for the industry through writing. Whatever their background, there’s no denying the talent among the journalists of the drinks world. There are top drinks writers who have been in the game for years, and others who are relatively new. What struck me when I joined The Spirits Business back in 2013 was the nurturing, friendly and even complimentary environment of drinks journalism – a starkly different attitude to the competitive and oftentimes unsupportive arena of mainstream news, at least in my experience. As with all industries, new talent is essential to keep drinks journalism vibrant and exciting, and I was heartened to learn of journalists from around the world who are producing excellent work through the Alan Lodge Young International Drinks Writer of the Year 2018 award. Launched in memory of Alan Lodge, the late deputy editor of The Spirits Business, the award celebrates both the memory of Alan and the work of ambitious young writers. This year, our judging panel selected New York-based drinks writer Dan Q. Dao as the winner, praising the wonderful colour, structure and flow of his work. Though I wasn’t a judge, I was thoroughly impressed by Dan’s broad portfolio and clear ambition. The calibre of entries was extremely high, so selecting a winner wasn’t an easy task, and the panel was inspired by the writing they assessed. Awards such as this can be transformative for both a journalist’s confidence and reputation, and I would encourage anyone – particularly young writers – to throw their name into the hat. Whether it’s the Alan Lodge Award or the Spirited Awards, it can’t hurt to enter. And the rewards can extend beyond the accolade itself – they catch the attention of editors, such as myself, hoping to expand their freelance contacts list. There’s no better feeling than recognition from one’s peers, and this is one of the things I love most about our industry.

SB Voices: Community spirit

Melita Kiely — Fri, 11 May 2018 11:28:45 +0000

Camaraderie is prevalent throughout the spirits world – and long may industry members continue to build each other up, says Melita Kiely.

“Bourbon is a unique industry, we are all legitimately friends and enjoy each other’s company,” says Fred Noe, Jim Beam’s great-grandson and seventh generation master distiller for the world’s leading Bourbon. He’s currently on a European tour, covering London, Vienna, Hamburg, Rome and Paris, but has spared some time to meet with me in London before his next stop. “You never hear negative protests with Bourbon, we never speak down on each other’s work,” he continues. “In the end we are all making Bourbon and we all love what we do. If one of our buddies has a problem, we will step up and help them.” And there have been times when Kentucky’s distillers have had to step up. Noe recalls the Heaven Hill fire of 1996, which ravaged the distillery’s warehouse, fuelled by 75mph winds throwing flames 350 feet into the air. More than 90,000 barrels of Bourbon were lost, though thankfully no fatalities were reported. “When that happened, we all rallied together, “ recalls Noe. “We helped make Bourbon for Heaven Hill, store barrels, whatever they needed. We’re a small-knit community, we help each other out.” He also recounts a special bottling made by all the distillers in Kentucky for the late Heaven Hill master distiller Parker Beam, a grandnephew of Jim Beam, who fought a long battle with amytrophic lateral sclerosis (ALS). “All the distilleries, we all came together, brought Bourbon and made a Unity bottle [Master Distillers’ Unity], which was sold at auction and we gave all the proceeds to the ALS foundation. It was a really proud and sad moment for all of us. For Parker, he knew there was no cure for his debilitating disease. Doing something for [Parker] before he passed away with every distillery in Kentucky was very cool, but it was also a really sad moment for all of us.” Speaking with Noe really highlighted a sense of community in Kentucky, the “band of brothers” focused not only on building their own brands, but bolstering those around them. It’s not an ‘us versus them’ mentality – everybody is working to collectively better the Bourbon category and contribute to its global growth. And the longer you work within the spirits world, the more you see how that camaraderie attitude is rooted in the industry – and it certainly doesn’t begin and end with brands. Bar owners have also long understood that there is strength in numbers and innovation is pouring out of collaborations. This week's pop-up at Dandelyan provides just one example. The acclaimed bar launched its World Botany Series by partnering with Svartklubb, the recently launched cocktail bar pop-up from Swedish restaurant Faviken, to create a bespoke Dandelyan x Svartklubb by Faviken cocktail menu for the London bar. The concept brought together different techniques and ingredients from two leading on-trade forces, both with a shared ethos of using carefully sourced produce. The final cocktails were undeniably clever, creative and, perhaps most importantly, tasted superb. Jim Beam’s Noe is also well aware of the power of the on-trade – so much so that the brand launched a series of “American college-themed” classes for bartenders in the UK this month to help them gauge a greater understanding of the brand. And he’s constantly on the lookout for further ways to “buddy-up” and get creative in the industry. “I’m very open minded, I’d love to work with other whisky producers from around the world, or wineries or breweries,” he adds. “The only way we can grow as a Bourbon brand, as a category, is by sharing ideas and inspiring each other.” Long may the industry's community spirit continue.

SB Voices: Distillers’ City Debate 2018

Nicola Carruthers — Fri, 04 May 2018 12:57:01 +0000

A panel of esteemed speakers went head-to-head to debate the benefits of family ownership in the spirits industry versus publicly-listed companies. Nicola Carruthers reflects on the key arguments raised.

At the annual Distillers' City Debate, held yesterday evening (3 May) in London, the motion of the debate, organised by The Worshipful Company of Distillers, was: "This house believes that family companies think about the long-term, publicly-listed companies focus on the now." It was a strong statement to put forward and one that raised multiple thought-provoking arguments from both sides. Chaired by Trevor Stirling, liveryman and managing director of European beverages, Bernstein, the panel consisted of Lizzy Rudd, chairman of Berry Bros & Rudd; Colin Gordon, former strategy and business development director, IDV; Victor Jerez, global business development director, William Grant & Sons; and Tristan van Strien, equities analyst, beverages, Redburn Partners. Arguing in favour of the motion was Rudd and Jerez, while Gordon and van Strein put forward their cases against it. Taking to the stand, Rudd said: “We don't just think about the next three-to-five years. We’re thinking about the next generation and we're thinking in decades. Whereas publicly-owned companies are driven by short-term financial results, they have to be because their shareholders demand it. Luckily our shareholders are patient and not driven by financial returns." She summed up four key factors where “long-term thinking makes a huge difference in family business” – long-term leadership, long-term strategy, lasting culture and values, and lasting relationships. Meanwhile, Gordon said that family-owned companies faced greater pressure when it comes to short-term performance, far greater than publicly-owned companies. He cited three “significant” advantages for publicly-owned companies, citing that they benefit from broader portfolios, “greater geographic spread” in the face of changing fashions and economic difficulties and “have better access to the capital markets”. He concluded: “Culture is the most important feature to defining a business's attitude to long-term investment, those with a market-led, innovation-based culture take the long-term view, irrespective of ownership. Ownership is not a factor that discriminates between long- and short-term thinking.” Speaking in favour, Jerez said that family companies focus on the long-term because they are “rooted in the most basic of humans needs, providing security, and opportunity”. He continued: “It's the most basic of instinct to protect what is yours that drives the long-term orientation which is the bedrock of family companies’ success.” Family-owned companies “consistently frame day-to-day decisions and look at the consequences they will have on the next generation”, he said. He also added that the family-owned firms benefit from the “perseverance stemming from the personal success of the founder or from the next generation's appreciation of the founder's legacy and success coupled with the expectation of leaving one's own mark on the legacy.” Arguing against the motion, van Strein said that the survival rate of family-owned companies is low, and that those who do survive have “one common factor” – access to public markets. “The public capital markets allowed these companies to stop thinking about survival,” he said. “To think about the long-term, companies need to have the financial freedom and capacity to suffer. “They need to have the ability to withstand the inevitable headwinds. The public markets have allowed the alcohol markets to do this very well, whether in beer, Cognac or Scotch. Not surprisingly, 85% of the Cognac sold today is by public companies such as LVMH.” At the start of the evening, the audience voted in favour of the motion, but minds had been changed once the debaters left the podium. While I initially voted in favour, the strong views presented throughout the discussion were close to swaying me against the motion come the end of the evening. Nevertheless, the consensus across the audience and panellists concluded that a number of factors including innovation, strategy and company values can lead to long-term growth for both publicly-owned and family-owned companies – it doesn't have to be a case of 'either...or'.

SB Voices: The secret to drawing a crowd

Owen Bellwood — Fri, 27 Apr 2018 11:51:57 +0000

With almost every new distillery comes a new visitor centre. Owen Bellwood takes a look at the visitor experience to see how brands can bring people back time and time again.

The spirits industry is going through a development boom at the moment, with seemingly no end of news about expansions and openings. In the last week alone, Elixir Distillers announced its intention to build a distillery on Islay, Bardstown Bourbon Co revealed plans for further expansion and Old Forester confirmed the opening date for its new Louisville distillery. In each of these announcements, pictures were painted of gleaming new stills, cavernous maturation warehouses and, of course, the all important visitor centre. With news from owner Diageo that it plans to invest a staggering £150 million into Scotch whisky tourism, including plans to open a new Johnnie Walker experience in Edinburgh, there’s no denying the fact that whisky tourism is now a massive industry in its own right. With an established brand like Johnnie Walker, the visitor centre will have a lot to cram in. There's the history of the marque, varying production techniques, the maturation processes, blending and bottling all to consider, and each has to engage an audience that may be hearing about it for the first or 15th time. This is a challenge faced by both new and old distilleries alike – how do you make an experience that appeals to both the casual drinker and the hardened spirits enthusiast? Once you've ridden the educational barrel ride at the Scotch Whisky Experience, you may hop across the sea and enter Ireland, home of the Midleton Distillery and the Irish Distillers portfolio of brands. The distillery's owner, Pernod Ricard, recently reopened Jameson's historical Bow Street site as a fully immersive visitor experience, which I had the chance to visit this week as the brand launched its first cask strength expression. The site in the centre of Dublin, which was recently named the most visited whiskey attraction in the world, has taken its own approach to mass appeal. Jameson Bow Street provides an insight into the brand's history and explains the production process in an innovative manner – which includes a chance to sniff the difference between pot still and column still new make spirit. While this background information is all very interesting, it's the additional experiences on offer at Bow Street that I found most engaging. There's a chance to gain a deeper understanding of each expression through an extended whiskey tasting, while visitors can draw spirit direct from a maturing cask and blend their own Jameson expression. There's even a workshop dedicated to Irish whiskey cocktails – which, let's be honest, is how many people are introduced to whiskey today. Although the site is no longer a working distillery, its design is well thought through and engages consumers in the history of the brand from the moment they step through the gates. If other distilleries hope to draw in the crowds, and keep them coming back, they need to offer more than just a taste, a wander round the still room and a video about floor malting.

SB Voices: Scotch has never been so accessible

Melita Kiely — Fri, 20 Apr 2018 11:43:31 +0000

Investment plans and an affordable, experimental approach to Scotch whisky are creating opportunities for new drinkers to access the category – more than ever before, says Melita Kiely.

Long-time followers of the spirits industry may recall Diageo’s grand Scotch whisky expansion plans of 2012. The Johnnie Walker owner intended to splash a staggering £1 billion on Scotch whisky production over a five-year period. But in an unfortunate turn of events, currency volatility, political instability and austerity measures in China brought the programme to an abrupt halt in 2014. Global demand for Scotch stalled and exports to China plummeted 30% in 2013 to £51m, according to figures from the Scotch Whisky Association (SWA). Today’s picture looks drastically different. At the start of this week, Diageo announced the “biggest single investment” in Scotch whisky tourism the industry has ever seen. The Lagavulin producer will spend £150m (US$215m) on an extensive upgrade of its Scotch whisky visitor centres, as well as a new Johnnie Walker experience in Edinburgh, phased over the next three years. Glenkinchie, Cardhu, Caol Ila, Clynelish, Lagavulin, Talisker, Glen Ord, Oban, Dalwhinnie, Blair Athol, Cragganmore and Royal Lochnagar – each distillery will see its visitor centre upgraded. It is hoped the investment will appeal to the ever-growing number of tourists who flock to Scotland every year. Diageo’s Scotch whisky distilleries welcomed 440,260 visitors last year, an increase of 15.2% compared to 2016, while the SWA forecasts another positive year for whisky tourism in 2018. Developing these tangible points of access to Scotch whisky brands is sure to garner even greater intrigue in the category – and entice a new generation of whisky drinkers. Scotch has worked hard to shake off its ‘stuffy’ image of gentlemen swilling Scotch whisky glasses while smoking cigars in dark, leather-clad rooms. And as it’s grown, Scotch has evolved to become vastly more accessible to a younger, more diverse consumer base – and those on tighter budgets. Just look at brands such as The Famous Grouse, which are spearheading this part of the market. The blended Scotch brand unveiled a new collection of experimental expressions last week. The Cask Series aims to be an “everyday premium” range of blended Scotch whiskies and an “affordable” way to allow curious consumers to experiment with new whisky styles. Though I’m yet to try the inaugural release – The Famous Grouse Bourbon Cask – at £19 a bottle, it certainly lives up to its affordable aims. Scotch whisky is, at last, viewed as a spirit for all demographics – and it’s crucial its accessibility is enhanced even further to maintain momentum. There’s a stark change in confidence in the category compared to several years’ prior – and huge cause for optimism in Scotch whisky’s potential.

SB Voices: Could Irish gin be the new Irish whiskey?

Nicola Carruthers — Fri, 13 Apr 2018 11:00:16 +0000

Following soaring consumer interest in Irish whiskey, are we about to see an explosion in Irish gin? Nicola Carruthers takes a look at gin producers electrifying the category.

While Ireland has become well known for producing whiskey, Guinness and poitín, it now seems that another Irish libation is gathering pace: gin. At a showcase of Irish drinks producers held by Irish food board Bord Bia in London last month, I was surprised to see such a huge amount of Irish gin producers in one room. The explosion of the gin market in recent years has seen the launch of more than 30 different Irish gins in all parts of the country – and more than 130,000 cases of Irish gin were sold around the world in 2017. According to trade association the Alcohol Beverage Federation of Ireland (ABFI), while 2017 “marked a breakthrough in terms of exports” for Irish gin producers, with shipments more than trebling in the year, 2018 will see Irish gin “go global” and grow exports to the US, Canada, UK and Germany. The Irish Spirits Association also recently noted that gin producers in Ireland are hoping to triple sales over the next four years, targeting five million annual bottle sales by 2022. Smaller distillers are entering the category through innovation with interesting flavours – a prime example is milk-based gin Bertha's Revenge. Meanwhile, Shortcross Gin maker Rademon Estate Distillery announced a £2.5 million (US$3.5m) distillery expansion. The distiller installed a 10-plate copper column still system for gin production – said to be the “most advanced gin still in use in Ireland”. The small batch gin is made with local spring water and distilled with local botanicals, including clover, apples, elderflower and elderberries, as well as juniper and coriander. Then there's Ireland’s The Shed Distillery, which launched its Gunpowder Irish Gin back in 2016. The producer uses a Medieval copper pot to distil the liquid before it’s blended with oriental botanicals, Gunpowder tea and local Irish ingredients. Authenticity is also playing a key role. Glendalough Distillery in County Wicklow, which claims to be Ireland’s first craft distillery, produces poitín and whiskey in addition to gin. The distillery produces four seasonal gins in order to reflect the way that the Glendalough valley grows and evolves over the course of a year, which was followed by an “all-seasons” gin that came to market last year. The gins are made with seasonally foraged Irish botanicals, including Alexander seeds, Hawthorn berries, sloe berries, ground ivy, sage, Rowan berries and rosehips. Clearly, proof of origin continues to be important to distillers and consumers alike. While it hasn't peaked the interests of any of the big players just yet, if other spirit sectors are anything to go by it can only be a matter of time before the bigger drinks groups want in on the action. Whether that's through acquisitions or the creation of their own products, well, we'll have to wait and see.