Diageo’s Buchanan’s Bidding To Transcend Scotch Whisky Category

Propelled by a strong following within the Latino community, Buchanan’s is currently the fastest-growing Scotch whisky brand in the U.S. market, having expanded by 55% since 2012, according to Impact Databank. After a 7% bump to 455,000 case depletions last year, the blended Scotch label is within striking distance of the half-million-case mark for 2016. Growth is being led by the core Buchanan’s 12-year-old DeLuxe ($32), as well as the brand’s Special Reserve 18-year-old ($75), notes Brian Cox, Diageo’s director of Scotch whisky for North America.

“Buchanan’s momentum is increasing this year. We intend to break some significant milestones in the next 12 months,” Cox tells SND. “Buchanan’s lives and breathes within a unique brand territory, which we call ‘energetic luxury’. (It has) the vibrancy and edge of super-premium Tequila and luxury vodkas.” Backed by a new “Es Nuestro Momento” (It’s Our Moment) campaign and fueled by favorable demographic trends, Cox says Buchanan’s “could one day transcend the Scotch category, just as other successful brands have transcended the Canadian whisky, Cognac or Tequila categories,” such as Crown Royal, Hennessy and Patrón.

With the Es Nuestro Momento campaign, Buchanan’s is doubling its media spend this fiscal year to capitalize on the favorable conditions, Cox adds. The campaign, which rolled out this fall, stars Grammy-winning musician J Balvin. It encourages younger Latinos to embrace their heritage and highlights the increasing Latino influence on mainstream culture in the U.S. The push includes both English- and Spanish-language spots and is running across TV, digital and out-of-home channels.

“We’re increasingly recruiting new young adult male Scotch drinkers in the older Millennial age group in top markets like California, New Jersey, New York, and Florida,” Cox explains. “And while the brand has long been adored by Mexican-Americans, we’re seeing a huge rise in popularity among U.S. consumers of Puerto Rican and Dominican descent, as well as second-generation, bi-cultural consumers of Mexican descent.”

To further boost growth, Buchanan’s is adding smaller package sizes like 200-ml. and 50-ml. bottles, which are key for certain occasions in urban multicultural markets, and attacking the on-premise with new initiatives including Casa Buchanan’s feature nights and bottle service programs. Additionally, the brand recently underwent a repackaging effort aimed at delivering a more contemporary, premium feel.

Wine Spectator Kicks Off Top 100 Countdown

Each year since 1988, Wine Spectator has released its Top 100 list, where the magazine’s editors select the most exciting wines from the thousands reviewed during the course of the year. This week, the top 10 wines of 2016 are being unveiled, culminating with the naming of the Wine of the Year on December 2.

Number 10: Hartford Family, Zinfandel Russian River Valley Old Vine 2014 (which received a score of 93 points from Wine Spectator and retails at $38 a bottle)

Number 9: Château Smith-Haut-Lafitte, Pessac-Léognan White 2013 (96 points/$106)

The rest of the Top 10 will be revealed over the course of this week at http://top100.winespectator.com/ and the full Top 100 list will be released on Monday, December 5.

News Briefs:

•Chilean winemaker Concha y Toro enjoyed 7% revenue growth in the first nine months of 2016, but foreign exchange fluctuations hampered the group’s third-quarter progress, resulting in flat sales and a 15% drop in net income for three-month period ending September 30. Still, operating income grew 7% over the first three quarters of the year, owing to a strong first-half performance. In the U.S., the group’s Fetzer subsidiary in California saw Bonterra (+4%), Anthony’s Hill (+16%) and 1000 Stories Zinfandel (+407%) drive a 5.7% sales increase over the first three quarters. But the group’s South American export volume to the U.S. slipped 6.7% over the same period.

Craft Brewing and Distilling News:

•Dutch brewer Bavaria NV has acquired Latis Imports, a Connecticut-based importer focused on Belgian craft brews. Latis was founded by David van Wees, a former InBev marketing executive. As part of the deal, van Wees will join Bavaria as managing director of U.S. operations. Latis is currently the U.S. importer of the Palm Belgian Craft Brewers (PBCB) range, which was purchased by Bavaria earlier this year.

•Michigan’s New Holland Brewing is entering the Oregon and Washington markets, bringing its distribution reach to 34 states. The craft brewer and distiller has partnered with wholesaler Columbia Distributing, which will bring the New Holland portfolio to Pacific Northwest on- and off-premise locations beginning next month. New Holland’s flagship, year-round Dragon’s Milk Bourbon Barrel Stout will debut in those markets, followed by other offerings in the coming months.

•Chicago-based Burnt City Brewing is releasing Freight Handler Milk Stout as its newest seasonal offering. The 5%-abv beer joins the company’s three flagship offerings—Dick The Butcher Pale Ale (5.3% abv), Face Melter Hibiscus IPA (7% abv) and Balloon Boy Farmhouse Wheat Ale (5% abv). Freight Handler will be available in six-packs of 12-ounce cans for about $10, as well as kegs throughout the Chicago area and Alabama.

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