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With its Regal Apple extension soaring to lofty heights, Canadian whisky brand Crown Royal continues to bet big on the flavored segment. Brand-owner Diageo is currently launching Crown Royal’s latest extension—Crown Royal Vanilla–across the U.S. market. The rollout is being promoted with a TV ad campaign featuring comedian J.B. Smoove from “Curb Your Enthusiasm.”
Crown Royal Vanilla (70 proof) retails for $22-$27 a 750-ml., along with the core brand and flavor extensions Regal Apple, Maple and Honey, which was introduced this past summer.
Crown Royal carried the Canadian whisky category for years, achieving strong growth as the overall field lagged in the U.S. market. From 1995-2008, Crown Royal’s sales more than doubled while the Canadian whisky market contracted by nearly 10%, according to Impact Databank. Crown Royal’s market share rose from less than 12% to nearly 28% during that period. Its dollar share growth was far greater, as it retails at more than twice as much as most competitors.
However, Crown Royal lost ground amid the economic downturn, and only made modest progress in the years after. Aiming to reinvigorate the brand, Diageo entered the flavored segment in 2012 with Crown Royal Maple. Maple got off to a fast start but quickly fizzled, as consumers appeared far more interested in cinnamon-flavored whiskies like Fireball. In the latter part of 2014, Diageo unveiled Regal Apple, which rocketed to growth and hasn’t looked back.
After selling around 250,000 cases in the last few months of 2014, Regal Apple soared to 1.25 million cases in 2015—a remarkable achievement for a spirits brand in its first full year on the market. Regal Apple’s sharp rise has continued this year. The brand was up by 26% in control states through the first seven months of 2016, according to NABCA, and enjoyed a 27% bump in IRI channels for the 36 weeks ending September 4. That growth has occurred even as a flood of apple-flavored whiskies have entered the market, aiming to capitalize on Regal Apple’s success.
Meanwhile, the core Crown Royal brand continues to struggle. Its volume fell by 3% last year, dipping below the 4-million-case threshold for the first time in nearly a decade. In 2016, it’s down by 1%-2% in both IRI channels and control states. But given Regal Apple’s surge, the Crown Royal franchise is among the healthiest in the U.S. spirits market. Diageo is hoping to get similar results from Crown Royal Vanilla.
Casa Cuervo, which had been planning an initial public offering for this month, has decided to postpone the IPO until after the U.S. presidential election, according to Reuters, which cites sources familiar with the matter.
Cuervo is holding off on the IPO, which had been planned for October, because of market volatility around the November 8 election, reports Reuters. The company didn’t respond to requests for comment from SND.
Cuervo, the 250-year-old Tequila giant owned by the Beckmann family, filed a prospectus for the IPO late last month. The Beckmanns are aiming to float as much as 15% of the company on the Mexican Stock Exchange, looking to raise $1 billion. The company said it plans to put much of the proceeds toward acquisitions, while the Beckmanns have also made clear their long-term intention to transform the town of Tequila into a tourist destination like Kentucky’s Bourbon Trail.
•Francis Coppola is planning to open a third Bay Area restaurant, slated to debut in November. The new eatery will join Coppola’s casual full-service restaurant Rustic, located in Sonoma, and his Café Zoetrope brasserie in San Francisco’s North Beach neighborhood. Further details about the new launch have yet to be released.
•New York-based importer Biagio Cru Wines & Spirits is set to launch Mexico’s Mezcal IBÁ in the U.S. Produced in Oaxaca, the Mezcal IBÁ range features three varieties, including 40 Organic ($65), 55 ($85) and 40. The three mezcal offerings will be available nationwide. Mezcal IBÁ joins Sloane’s Premium Dry Gin and Miodula Honey Vodka in Biagio Cru’s existing spirits stable.
•Bronco Wine Company is unveiling new “helix” packaging for its Red Truck wine brand. Said to be the first of its kind to roll out in the U.S. wine market, the helix packaging features a twist-open, recloseable cork stopper that works via an internal thread built into the neck of the glass bottle. The technology was developed by Amorim Cork and O-I. Red Truck ($11 a 750-ml.) will bring its new helix bottle to market beginning in January.
•Michigan has gained approval from the Alcohol and Tobacco Tax and Trade Bureau for its fifth American Viticultural Area. It’s called Tip of the Mitt and encompasses 2,760 square miles within a six-county area in the northern part of Michigan, in a region bordered by water on three sides. The Straits Area Grape Growers Association had applied for the designation in November 2013 after two earlier, unsuccessful attempts. The area, too cold for vinifera grapes, is home to newer hybrid varieties including Frontenac Gris, Marquette and La Crescent, which thrive in its sandy soils. Michigan’s first AVA, Fennville, was established in 1981 in the southwestern part of the state, followed by Lake Michigan Shore and Leelanau Peninsula. Its last AVA to be approved before Tip of the Mitt was Old Mission Peninsula in 1987.
•Louisville, Kentucky-based Copper & Kings has extended distribution for its brandy and absinthe portfolio to California and Michigan. Southern Glazer’s will distribute the lineup in California, while Republic National Distributing Company (RNDC) will handle it in the Michigan market. Copper & Kings’ lineup includes American Craft Distilled Brandy ($35), American Butchertown Brandy ($60), Un-Aged Apple Brandy ($30), Floodwall Apple Brandy ($40), Immature Brandy ($30) and Absinthe Blanche ($55). Copper & Kings’ footprint now spans 28 markets.
•Oregon’s Portland Cider Company is introducing a Passion Fruit cider to its year-round lineup. The 6.7%-abv offering will be available in 22-ounce bottles. Portland Cider is also rolling out a new packaging design across its 22-ounce bottle range, which also includes Kinda Dry, Sorta Sweet and Pearfect Perry. The new look includes clear glass bottles with labels depicting the fruit used in the cider on a white background. Portland Cider has two taprooms, one in Portland and one in Clackamas, Oregon.
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