Market Watch March 2018

While some high-profile vodka brands have had their struggles, the vodka category isn’t quite the sob story that some people make it out to be. Since 2000, vodka consumption in the U.S. market has more than doubled—from a huge base—rising from 37 million cases in 2000 to a whopping 77 million cases last year. Even in more recent times, the pie has steadily expanded. Since 2010, volumes have increased by 15 million cases, and last year vodka logged a very respectable 1.5% gain, adding over 1 million cases. No other spirits category comes close to matching vodka’s 77 million-case scale. Bourbon, for example, passed the 20 million case mark in 2016 for the first time in three decades—to much and well-deserved fanfare. But all the whiskies in the U.S. market…

Treasury Shakes Up U.S. Distributor Profile…. Treasury Wine Estates (TWE) revealed significant changes to its distributor lineup, including switching to a direct sales and distribution model in California and Washington for its largest retail partners. For the on-premise and smaller retailers, TWE has appointed Classic Wines of California and Vehrs Distributing in Washington to handle its brands. With the move to self-distribution in California, TWE joins a number of other key players that handle their own distribution in the Golden State, among them E. & J. Gallo, Jackson Family, and Foley Family Wines. In Florida, TWE is implementing a hybrid distribution model where it will directly manage relationships with its largest retail partners in collaboration with Breakthru Beverage Group. Breakthru will operate a full service distribution model for the remainder…

Actor Ryan Reynolds has taken an ownership stake in Davos Brands’ Aviation gin. As a partial owner of the brand, Reynolds will play an active role in Aviation’s day-to-day business and oversee its creative direction in an effort to introduce more consumers to the brand. He will also appear in the brand’s marketing. Originally owned by Portland, Oregon-based House Spirits, Aviation gin was an early leader in the emerging market for American-style gins, which tend to emphasize citrus and fruit flavors over traditional juniper notes. Davos Brands—founded in 2014 by Ty Ku sake founder Andrew Chrisomalis and Svedka founder Guillaume Cuvelier—first partnered with Aviation several years ago and helped the brand expand distribution nationwide from its base in the Pacific Northwest. Davos acquired Aviation outright in late 2016, although House…

Located in Manhattan’s Garment District in a building once occupied by kids clothing company Bo-Peep Manufacturing Co., Bo Peep Cocktail & Highball Store pays homage to the 1940s and ’50s. Owned by Fox Lifestyle Hospitality Group, the subterranean lounge and piano bar opened in January. Beverage director Evan Hawkins created Bo Peep’s cocktail menu, drawing inspiration from the mid-1900s and offering drinks in categories like Tiki, Swizzled & Crushed; Sours, Flips & Fun; and Stirred, Boozy & Serious. Standouts include the Jalisco Switchblade, made with Milagro Reposado Tequila, house-made spiced carrot tincture and smoked pineapple syrup, lime juice, and torched rosemary, and the Tunisian Toddy, blending Old Forester Classic Bourbon, Old Overholt rye, house-made Moroccan spice tincture, lime juice, and mint tea (cocktails are $14-$16). Bo Peep also boasts a…

Following the $31 million renovation of San Francisco’s boutique Hotel Kabuki—a Joie de Vivre Hotels property—comes a chic new lobby bar that celebrates Japan. The Bar at Hotel Kabuki opened in January, helmed by beverage director Stephanie Ann Wheeler. Her Japanese-inspired cocktail menu offers specialties like the Sakura, made with St. George Terroir gin, Peychaud’s Aromatic bitters, lemon juice, house-made hibiscus tea syrup infused with sakura blossom, and egg white (cocktails are $13-$23). The venue also boasts luxury cocktails made with high-end spirits and tea-based cocktails designed for sharing. These join a roster of Japanese whiskies ($14-$96 a 2-ounce pour), sakes ($9-$13 a draft pour or cup; $25-$200 a bottle), beers ($6-$11 a draft pour or bottle), and Japanese-influenced snacks and sandwiches ($6-$14).…

• The team behind Floyd’s Pub in Chicago’s Bucktown neighborhood opened Wooden Nickel in January in Lakeview. Offering several dozen beers on tap and in bottles and cans, the venue has a rustic interior interspersed with elements of local sports teams. Along with beer, Wooden Nickel also serves classic cocktails and upscale bar fare, from burgers to steaks. • Inspired by movies like “Old School” and “Animal House,” Delta Haus opened in January in Downtown Boston. The bar’s drinks menu evokes fraternity life by highlighting lower-priced beers, and serves college- and movie-themed cocktails like the Jack Daniel’s-based Zero.Point.Zero. • The ping pong-focused bar Spin made its Seattle debut in January. The concept—which also has locations in New York City, Chicago, San Francisco, and Philadelphia—has a bustling bar program, along with…