Market Watch December 2016

Cognac’s Quiet Rise While whisk(e)y is still steaming ahead, another often-overlooked brown spirit is also achieving stellar growth: Cognac. Its rise has come from a smaller volume base, but Cognac is a rarefied, high-margin spirit that’s a retailer’s dream. At the 135-unit ABC Fine Wine & Spirits in Florida, Cognac sales are growing at a 20-percent annual clip, and that typifies trends nationwide. Cognac is often viewed as a very traditional category that doesn’t change much, but this perception isn’t true. The top Cognac players are continually innovating on the product, packaging and marketing fronts. The category has also been ahead of the curve in the mixology community, jettisoning Cognac’s after-dinner sipping image and successfully transitioning to the cocktail culture. Our Cognac cover story spots the latest trends—from big brands,…

Diageo Debuts Whiskey- Focused Retail Program…. Diageo North America is rolling out a new retail initiative intended to educate newer consumers about its expan-sive whisk(e)y portfolio. The “Whiskey 5” program, which debuted this fall, breaks the diverse category into five taste profiles— smooth, spicy, bold, sweet and smoky—from which shoppers can choose to receive recommendations on Diageo whisk(e)y products and cock-tail recipes. The Whiskey 5 program is currently in about 3,500 U.S. retail accounts, with a goal of 5,000 accounts. The push includes a mobile-enabled website that encourages sharing on social media, as well as in-store merchandising elements and displays. Diageo’s research shows that new users—including millen-nials and women—account for roughly a quarter of the whisk(e)y category’s recent growth. “We saw that new consumers were defaulting to price in their…

Rémy Cointreau has entered the U.S. market’s craft spirits segment, acquiring Westland Distillery for an undisclosed price. The Seattle-based Westland is known for its portfolio of high-end single-malt whiskies, including the flagship single malt, Peated and Sherry Wood expressions (all around $70 a 750-ml. bottle). This July, the distillery launched the inaugural whiskey in its limited-edition Native Oak series, Garryana ($125), which was matured in wood from quercus garryana, a rare species of white oak found in the Pacific Northwest. Westland was founded in 2010 by Matt Hofmann and Emerson Lamb, who left the company last year. Hofmann remains as master distiller. With single malt whiskies thriving in the United States, Rémy is aggressively building its presence in the segment. The French drinks group bought Islay’s Bruichladdich for $90 million…

Bibo Barmaid A new self-serve cocktail machine is avail-able for pre-order on Kickstarter this month. The Bibo Barmaid is a countertop appliance that allows consumers to mix drinks with the touch of a button. The three-part system includes proprietary Bibo alcohol pouches and Bibo cocktail mixer pouches, which are available in Cucumber Melon, Tangerine Paloma, Margarita, Appletini, Chocolate Peppermint Martini, Rum Punch and Malibu Mai Tai. Backers can pledge $179 to receive the machine plus six pouches. More flavors are planned to launch in 2017. For more information, visit Bibobarmaid.com. The Impossible Collection Of Wine Luxury book publisher Assouline released a new addi-tion from its Ultimate Collection in November. Written by Parisian sommelier and restaurateur Enrico Bernardo, “The Impossible Collection of Wine” is an oversized hardcover that celebrates “The 100…

SBE Adds High-Energy Nightclub In Los Angeles AngelesNamed for a tony neighborhood in Beverly Hills, California, Nightingale Plaza opened in October in a large and elegant space. The multifaceted club is operated by hospitality firm SBE and aims to attract Los Angeles’ elite with its modern interpreta-tion of the classic European courtyard. The 6,500-square-foot space features four distinct environments that each have their own social vibe—a main club room, an intimate porch bar, a secluded VIP area and an outdoor garden oasis. The main area boasts a large dance floor with tables and plush lounge seating alongside many high-tech lighting and sound elements. The venue features a variety of specialty cocktails ($16), including the Mezcal Penicillin, blending El Silencio mezcal, ginger and honey syrups, and fresh lemon juice, and the…

❖The team behind the meat-centric gastropub The Cannibal Beer & Butcher branched into the world of cocktails in October, opening The Cannibal Liquor House adjacent to its tavern in New York City’s Murray Hill neighborhood. The new bar features creative cocktails and adult milkshakes, along with vermouth on tap and upscale bar fare. ❖ An ode to whiskies, Commonwealth opened in late September in Miami’s South Beach. The bar boasts more than 100 whiskies for sipping neat, as well as a variety of whisk(e)y-based cocktails and high-end bar fare. The space features a steel-topped bar and a wall constructed from whisk(e)y barrels. ❖ Kimpton Hotels & Restaurants opened Dirty Habit in the Hotel Monaco in Washington, D.C.’s Penn Quarter neighborhood in October. Located in a 175-year-old building, the space has…