|
The 12 Top Spirit Companies in the World
The wine and spirits industry was global long before global was
the overwhelming trend in commerce. To be successful at the level of
the world’s top 12 spirits and wine houses requires single malts from
Scotland; French Champagne and Cognac; American whiskeys; German,
English and Mexican beer; Swedish and Russian and Polish vodka; and
more.
As with the distribution side, beer, wine and spirits companies
with global gravitas continue to shrink in number, with truly big
players such as Diageo and Bacardi and Pernod Ricard gaining more
market share all the time. Yet phenomenal growth is presenting new
opportunities for players such as Beam Global Spirits and Wine, the
spirits industry’s latest superstar. And companies such as SKYY Spirits
are demonstrating the power of innovation over sheer size, even as
companies such as Moët Hennessy show the wisdom of going after the
high-end consumer.
For operators in need of help to lift their collective bottom
lines, the world’s dynamic dozen spirits companies stand ready to be of
assistance. Here’s looking at them. Being Bacardi
When you’re Bacardi, with its portfolio of mature premium and
super-premium brands –– Grey Goose vodka, Bacardi rum, Dewar’s Scotch,
Martini & Rossi vermouth, Cazadores blue agave tequila, Bombay
Sapphire gin –– the world is your oyster. And the Bermuda-based company
that is now the No. 3 spirits house in the world is poised to harvest
still more market share throughout 2007.
Bacardi rum –– the No. 1 spirit in sales worldwide –– continues to
lead the category with such experiential activities as the global
Bacardi B-Live platform, its content-rich Internet sites, and the
launch of the world’s first 3G radio “B-Live Radio.”
In the United States, Bacardi rum enjoyed a strong year in 2006,
with robust growth. The Mojito cocktail program –– seeded by Bacardi
USA years ago –– and the campaign highlighting Bacardi & Diet Cola
have been key drivers domestically. Bacardi Flavored rums, including
the new addition of GrandMelon, continue to show strong growth as well.
With a new president and CEO for Bacardi USA in John Esposito, the
former head of Moët Hennessy USA, Bacardi anticipates growth all around
them on the strength of brands such as its Grey Goose vodka, with sales
now said to be approaching the three million case mark. Bacardi Ltd.
also is acquiring new products into its premium brand portfolio, with
one of the most recent being the 42 BELOW company of New Zealand.
Barton Adds New Stars
The well and value brand segment of spirits still have the upper
hand in overall volume sales. And few companies are better suited to
take advantage of this economic fact of life than Chicago’s Barton
Brands.
The company brings both the longevity that reaches back to its
founding in 1897 and the reach of its merger with Fairport, N.Y.’s
Constellation Brands to bear to maintain its top 10 status among global
spirits. Its premier share of the price-value segment is underwritten
through such well-entrenched brands as Fleischmann’s, Mr. Boston, Skol,
Schenley, Inver House and Montezuma, as well as Barton Vodka Other
profitable performers in the Barton Brands portfolio — including
Canadian and American whiskies such as Black Velvet, Black Velvet
Reserve, Ten High Bourbon and Canadian LTD.
While another adult beverage giant might be content to be king of
bargain brands, Barton and Constellation also have gained entry into
the premium and super-premium end of the spirits trade. Imported Effen
vodka, Ridgemont Reserve 1792 Small Batch Bourbon and Meukow Cognac are
three of the higher-end brands that have been added to the Barton
lineup in recent years.
Beaming Up
It’s tomorrow already at the U.S. spirits enterprise formerly known
as Future Brands, and the vision of the company has been realized in
its new incarnation as Beam Global Spirits & Wine.
The name change reflects the Deerfield, Ill., company’s rise to the
No. 4 position in the global spirits hierarchy from No. 7, following
the acquisition of several of the Allied Domecq brands in 2005. Now, as
the largest spirits firm on U.S. soil, Beam Global Spirits & Wine
claims nine of the world’s top 100 premium brands, and it controls the
second highest case volume in the country — some 23 million in all —
through its Future Brands affiliate.
Beam Global long has been revered for its Jim Beam bourbons. Yet
other core brands also contribute mightily to Beam’s success, including
Absolut, DeKuyper Cordials and Schnapps, Sauza Tequila, Canadian Club,
Courvoisier Cognac, Level Vodka, Starbucks Liqueurs. Among its newest
launches are DeKuyper Pucker Strawberry Passion, DeKuyper Pucker Berry
Fusion, Absolut Ruby Red and Absolut Pears.
Beam Global Spirits & Wine has fostered notable success in its
affiliations with Future Brands and Maxxium, the U.S. and international
sales and distribution partners for Beam Global Spirits & Wine. The
highly successful introduction of Starbucks Coffee Liqueur exemplifies
the underlying strength of this strategy, with Beam Global’s
partnership with Maxxium increasing the company’s global presence and
effectiveness.
It Was a Very Good Year
Like its fine Tennessee whiskies, it has been another vintage year
for Louisville Ky.’s Brown-Forman. The spirits house that Jack built
posted a record $2.4 billion in sales during the last fiscal year,
bettering the previous period’s milestone by $200 million dollars.
The company’s iconic Jack Daniel’s brand still is its main squeeze
in terms of revenue-generating potential. Yet, the bourbon side of
sales has been sweet as well. Woodford Reserve marked its 10th
anniversary as a leader in the small batch bourbons segment with 80,000
cases sold. And its No. 2 Southern Comfort bourbon brand also
witnessed a spike in sales through the introduction of SoCo Lime. Its
premium Finlandia Vodka hit the 2.2 million-plus case sales mark in
2005 to become the world’s 6th largest vodka. B-F recently positioned
itself for further growth and expansion with the purchase of Chambord,
the French liqueur, and the forthcoming purchase of Herradura Tequilas.
Ruling the Spirits Realm
The sun never sets on the domain that is Diageo. As the largest
beer, wine and spirits company on the planet, Diageo is truly a global
spirits giant with a commercial reach that extends to more than 180
countries. Diageo and its Diageo North America division produce and
market some of the leading beverage brands, including No.1-selling
Smirnoff, Captain Morgan, Crown Royal, Jose Cuervo, Baileys, Guinness,
Sterling and Beaulieu Vineyards wines. Sales of Diageo spirits topped
$13.4 billion in 2006 with its most profitable American segment
contributing some 40 percent ($4.6 billion) of a grand total that
accounted for almost 50 percent of the world’s leading beverage alcohol
brands. The company’s underlying success and preeminence in the
industry is driven by both its strong consumer marketing focus and
innovation such as its independent distribution network. Diageo
believes strongly that today’s adult consumers are driven by a desire
for new products, tastes and beverage experiences in the retail
channel, and the company goes the distance in searching out new ways to
please them.
Beyond Bourbon
Bourbon brands such as Evan Williams, Old Fitzgerald and Elijah
Craig have been mainstays for Bardstown, Ky.’s Heaven Hill. Since the
1970s, however, the company that is largest independent and
family-owned spirits house still doing business in the United States
has sought to compete across the full range of spirits categories.
And it is proving to be one of the more innovative companies in the
spirits business with the organic development of Bernheim, the lone
wheat whiskey in distribution, as well as PAMA Pomegranate Liqueur, the
largest portfolio of flavored vodkas in the industry and Rittenhouse
Rye Whiskey and Two Fingers Tequila flavors. The major sales success of
these new brand launches on a global scale has taken Heaven Hill a long
way toward reaching its goal of cosmopolitan commerce. Core brands such
as HPNOTIQ, Christian Brothers and Burnett’s Vodka only further extend
Heaven Hill’s reach and diversification.
The Global Approach
The global leader in the lucrative Cognac category, Moët Hennessy
USA is making inroads in other spirits categories as well. The company
has launched its first-ever non-vintage rose with the release of Veuve
Clicquot, along with The Rare Vintages. And Moët & Chandon made a
big splash by introducing its newly packaged line, including the most
sought-after Champagne in America, White Star, to a star-studded crowd
at a recent Statue of Liberty celebration. Moët’s Glenmorangie launched
the highly acclaimed Margaux Cask Finish Vintage 1987, and Ardbeg
recently released Airigh Nam Beist.
These releases enrich an already highly cosmopolitan portfolio of
spirits that includes Moët & Chandon, Hennessy Cognac, Terrazas de
Los Andes, Veuve Clicquot, 10 Cane Rum, Krug, Domaine Chandon,
Belvedere Vodka, Dom Perignon, Chopin Vodka, Grand Marnier, Ceretto,
Monsanto, Capezzana, Glenmorangie, Ardbeg, Casa Lapostolle, Cape
Mentelle, Livio Felluga, Navan, Green Point, Cloudy Bay, Cheval des
Andes, Marques de Grinon, Chateau La Nerthe, Cheval Blanc, Chateau
d’Yquem.
The New York spirits wine and spirits company reported $1.2 billion
in sales last year on the strength of its core brand standouts such as
10 Cane Rum and ultra-premium Belvedere Vodka.
McCormick Distilling Co.
Weston, Mo.’s McCormick Distilling Co. posted sales of better than
$150 million in 2005 to make it the eleventh largest spirits house in
the world. The company’s flagship McCormick vodka is the No. 2
best-selling vodka in America. McCormick’s extensive spirits portfolio
also includes McCormick gin, tequila, rum and brandy, Montego Bay Rum,
Ron Rio Rum, Saratoga Dark Full-Bodied Rum, Cambridge Distilled Gin,
Royal Gentleman Blended Whiskey and a flavored vodka line that
encompasses Peach, Raspberry, Orange, Vanilla and Apple. The McCormick
brand also includes rums, tequilas, American blended whiskey and
blended Scotch whisky, Tequila Rose Strawberry Cream, Tarantula Azul
RTDs, Sgt. Peppermint, Tequila Rose Java Cream, Polar Ice imported
vodka, KeKe Beach, McCormick Irish Cream and Wisers Canadian.
In particular, McCormick has witnessed strong sales of its Tequila Rose liqueur as well as its Tarantula Azul brand.
Double Shots of Success
The integration of great brands and talented people from Allied
Domecq doubled the size of Pernod Ricard in the United States. Pernod
Ricard reported 2005/2006 fiscal year sales of Euros 6,066 billion or
$7,792,077 for its global wine and spirits business, up 68 percent
compared to the 2004/2005 fiscal year.
The Allied acquisition further enhanced Pernod Ricard’s premium
portfolio and filled critical gaps in attractive categories, such as
super-premium, imported vodka (Stolichnaya authentic Russian Vodka);
rum (Malibu, the leading Caribbean rum); liqueurs (Kahlua, the world’s
leading coffee liqueur, and the diverse Hiram Walker line); Champagnes
(the classic Perrier Jouet and G.H. Mumm); and wines (the premium Mumm
Napa, Brancott and Campo Viejo, among others) while adding to the
company’s existing strengths in the gin (Beefeater, the only premium
imported gin still distilled in London), whisky (Ballantine’s, which
has a strong franchise in Asian-American communities) and Cognac/Brandy
(Don Pedro and Presidente, two brandies popular with the exploding
Hispanic community) categories.
Current key growth drivers among ex-Allied Domecq brands are Malibu
and Stolichnaya, while Seagram’s Gin, Jameson and The Glenlivet lead
the way among Pernod Ricard historical brands. Success also has been
achieved with such upper marques as Martell XO and Cordon Bleu, Chivas
Regal 18 and Stolichnaya elit.
True to Its Roots
Based in Miami, Shaw-Ross began operations in 1969 as a small
boutique importer specializing in the sales and marketing of niche wine
and spirit brands. Since then, Shaw-Ross has evolved into one of the
leading import companies in the United States with approximately 1.8
million in case volume sales and annual dollars sales of approximately
$110 million.
Shaw-Ross’s portfolio is comprised of a range of spirits and wines
that are uniquely positioned to meet the ever-changing needs of the
consumer. For instance Shaw-Ross represents a comprehensive range of
premium rums, including Flor de Cana, Brugal and Pusser’s, and a luxury
tequila in Espolon –– two segments that have seen rapid growth in the
last few years. More traditional brands also are showcased, such as
Glengoyne single malt scotch, Raynal French Brandy and the No. 1 Solera
Gran Reserva from Jerez, Cardenal Mendoza.
Shaw-Ross continues to carry niche products, which it believes can
grow into mainstream brands. Examples of its successful import strategy
include Barsol Pisco from Peru and Capel from Chile and Cristal, the
leading Aguardiente from Columbia.
The company also believes in developing brands for the future. It
has introduced and is representing Redcliff, America’s premium liquor,
which is steadily gaining popularity across the country.
Go to the Head of the Class
Savvy can count for just as much as size in the global spirits
trade, and no spirits entity has proven to have more savoir-faire than
New York’s Sidney Frank Importing Co.
The company that gave the world Grey Goose vodka is determined to
bring the next great spirits sensation to the on-premise market as
well. And with a track record for global successes that include such
spirits winners as Jägermeister, Corozon Agave Tequila, Gekkeikan Sake,
Plum Wine, Gekkeikan Haiku and Genofranco Wines, as well as Grey Goose
Vodka, who’s to say that lightning won’t strike twice? The company
posted a highly successful performance in 2006 with the launch of two
new brands. With its eye on the red-hot Irish whiskey segment, Sidney
Frank introduced Michael Collins Irish Whiskey, along with JC Cognac
VSOP.
Even without Grey Goose, which the company sold to Bacardi for just
under $2 billion dollars in 2004, Sidney Frank posted sales of better
than $275 million last year. And it expects to do even better in 2007
with new releases such as its just-launched Tommy Bahama Rum.
Gruppo Compart's American Subsidiary Takes off
The near stratospheric success of this wholly owned subsidiary of
Milan, Italy’s Gruppo Campari has made Skyy Spirits worthy of its
high-reaching name. Skyy has transformed itself from a single product
startup company to a spirits house with a broad-based portfolio in
relatively short order.
In 2006, sales are expected to exceed the two million case mark for
a line of premium vodkas that now includes flavors such as Skyy Orange,
Melon, Berry, Vanilla and Citrus, as well as its newest ultra-premium
Skyy90 launch. Some 700,000 in case sales have been added to the
spirits subsidiaries’ bottom line via acquisitions of former Allied
Domecq brands. These include Carolans Irish Cream Liqueur, Irish Mist,
Tullamore Dew, and Suntory added Midori, Zen Green Tea and Yamazaki.
Overall, Skyy Spirits-generated revenues represented 21 percent of the
810 million euros reported by Gruppo Campari in 2005.
|
