Bay State Beverage Guide by Bay State Beverage Guide

June 2010

Can America’s Most Iconic Winemaking Region Stay On Top?

also:

Experimenting with Cognac Cocktails Heaven Hill’s Max Shapira

THE SECRET TO OUR AWARD WINNING VODKA IS NEW ZEALAND (LUCKY NO ONE KNOWS WHERE THAT IS).

IT’S VODKA. FROM NEW ZEALAND. NEW ZEALANDERS AGREE: DRINK RESPONSIBLY. ©2010 42 BELOW AND THE 42 BOTTLE DESIGN ARE TRADEMARKS AND/OR REGISTERED TRADEMARKS. 42 BELOW IMPORTING COMPANY, CORAL GABLES, FL. VODKA – 40% ALC. BY VOL. -- 100% NEUTRAL SPIRITS DISTILLED FROM GRAIN. FLAVORED VODKAS - EACH 40% ALC. BY VOL.

june10

features 12 Family matters

Bay State Beverage Guide chats with Brad Rubin of Ruby Wines.

16 CHILE’S AFTERMATH

The Chilean wine industry finds its feet again after the earthquake.

20 GOLD RUSH

California, America’s most famous winemaking region, works to stay on top.

26 CAN COGNAC COCKTAILS COME BACK?

The respected brandy finds a modern spin.

30 SPEAKEASY: MAX SHAPIRA

Max Shapira, president of Heaven Hill Distilleries, discusses the future of bourbon and the industry.

34 TIMING IS EVERYTHING

Crane Lake appeals to budget-minded, eco-conscious consumers.

37 VIVA LAS VEGAS!

The 67th Annual WSWA Convention saw increased attendance and enthusiam.

20 6

14 Talkin' tech 38 on-Premise Persepective 39 VIEWPOINT 44 beer trends

departments 4 PERSONAL page 13 calendar of events 35 new products & Promotions

42 around town 45 Violations & Penalties

40 Insider's View

50 last call

COLUMNS 6 The Find 8 wine buzz 10 The connection

brand index 1a brand index of spirits, wines and beers 29a License Sales & Transfers

June 2010 BAY STATE Beverage guide 3

personalpage Bay State Beverage Guide Volume 2, No 6 Massachusetts Edition (ISSN # is 1947-7554) www.bevnetwork.com

Publisher Terence F. Connaughton Terry@BayStateBeverageGuide.com

Suffice It To Say There are odd times I’ll catch myself pondering some of life’s simple but meaningful lessons. My latest adventure was this notion of how the meaning of common, everyday “things” changes for people over time. For me, the month of June is one of those “things”. Obviously, the month itself has been around forever. But for me, and many I suspect, the month itself has come to mean different things over time. My earliest memories of the month of June were “birthdays”, which stands to reason because I have three siblings born in June. But then I met Sister Lucille and my association of “birthdays” in June quickly became synonymous with “the end of school”. And it stayed that way for a while. Until, shall I say, in and around my young adult years when June seemed to mean less about “the end of school” and more about “the beginning of summer”. It’s funny how that works. And not surprisingly, that phase lasted a while too; actually right up until I was advised by my first boss that June should be less about “the start of summer” and more about “the end of the second quarter”. I wasn’t happy about it, but I bought in. But then another boss somewhere down the line told me to “think bigger picture, think longerterm” and recommended I think of June as a time of “mid-year results”. Talk about lessons…

4 Bay state beverage guide June 2010

Well, truth be told, a married man and four kids later, what June means to me today is actually a little bit of all those “things”– birthdays, end of school, beginning of summer, you get the point. But there is one new “thing” these days that may mean more than anything else in June: Father’s Day. I was reminded about the importance of Father’s Day recently when I attended an exceptional retail trade tasting and wine dinner. On the drive home, it occurred to me that I had spent much of my time with not just one, but two separate father and son pairs. Suffice it to say, that all you needed was one look and five minutes speaking with them that they were proud of their business, proud of each other and proud to be partners. I know that look well because I’ve been there. I spent a few years working alongside my own father and when I did, wherever we went we had that same look and that same pride. And so for now, while June has meant different “things” over the years, June also means Father’s Day to me. And like the role of friends, or the meaning of June, my father has meant different things to me over time. Suffice it to say, that he meant a lot then, but he means a whole lot more now…

Editorial Managing Editor Kristen Wolfe Bieler Editor Alia Akkam Assistant Editor Cara McIlwaine Contributing Editors Dale DeGroff, Mary Ewing-Mulligan, David T. Kratt, Jeffery Lindenmuth, Ed McCarthy, Gregg Glaser, W.R. Tish, Jean K. Reilly

art & design Art Director Larry Lee Graphic Designer Josue Romero

advertising Terence F. Connaughton 617-864-1677 Terry@BayStateBeverageGuide.com

Bay State Beverage Guide is devoted to the interests and welfare of the retail spirits, wine and beer licensees of Massachusetts. Published monthly by Vinegar Hill LLC, D/B/A Bay State Beverage Guide, 84 Sherman Street, Cambridge, MA 02140. Telephone: 617-864-1677. Fax: 617-864-1655. Subscription rates are: United States - $60 per year; Canada - $75 per year; Foreign - $99 per year. Postmaster, please send changes to: Bay State Beverage Guide, 84 Sherman Street, Cambridge, MA 02140. Nothing June be reprinted or reproduced in whole or in part without written permission from the publisher. Contents copyrighted 2010 by Vinegar Hill LLC.

terence connaughton, publisher National Coverage, Local Advantage The Beverage Network Publications are serviced by Beverage Media Group, Inc., 116 John Street, 23rd Floor, New York, NY 10038. Telephone: (212) 571-3232 FAX Number (212) 571-4443. www.BevNetwork.com

REMIND HIM WHY YOU REMIND HIM WHY YOU’RE HIS FAVORITE.

COMPLIMENTARY

FAT H E R ’ S DAY ENGRAVING S E E R ETAI LE R F O R D ETAI LS JOHNNIEWALKER . COM / ENGRAVING

COMPLIMENTARY

FAT H E R ’ S DAY ENGRAVING S E E R ETAI LE R F O R D ETAI LS JOHNNIEWALKER . COM / ENGRAVING

Available Through United Liquors 800-862-4585

JWB_Engraving BevMedia Ad.indd 2

5/7/10 2:45:40 PM

THEFIND BEACHSIDE COCKTAIL Save the drive to the Hamptons with a beachfront excursion to the Allegria Hotel in Long Beach, Long Island. Here, the house cocktail is the refreshing “Allegria Sunset.” www.allegriahotel.com

THEFIND THE DINNER BEER Goose Island churns out elegant Chicago-made craft beers, including Belgian-style ales like the Juliet. Tart Juliet has a distinctively complex taste with plenty of dark fruit and spice—enough to stand up to any chicken hitting the barbeque grill this summer. www.gooseisland.com

Fill a Champagne glass with about a half inch of Fragoli, and then ﬁll to the top with Prosecco. Garnish with a lemon slice, not a wedge, so it appears as if the sun is setting over the drink.

TEAM GREEN Oregon wineries have always had a sustainable edge, but now 14 of them have set a new record: banding together to complete the “Carbon Neutral Challenge.” Representing 20% of Oregon wine production, the wineries, including A to Z Wineworks/REX HILL, Sokol Blosser and Chehalem, took on the challenge of measuring and reducing greenhouse gas emissions, by implementing eco-friendly practices like the installation of solar panels and replacing lawn mowers with goats and sheep. Led by the Oregon Environmental Council and the Oregon Wine Board, this is the ﬁrst and largest group of U.S. winemakers to embark on a mission of going fully carbon neutral as a bloc. www.cncwine.org

THE TASTE OF SUMMER Throw a pool party with style by serving the St-Germain Cocktail—St-Germain, Champagne and soda. The St-Germain Soirée Cocktail Entertaining Kit includes a bottle of St-Germain liqueur artisanale, a St-Germain carafe—with easy-to-read fill marks so you don’t go too heavy on the bubbly—a cocktail stirrer and fold-out poster featuring a dozen cocktail recipes showing off new ways to mix the elderflower liqueur. www.stgermain.fr

LIBRARY DATE

BREAD AND COCKTAILS

Downstairs at ZENGO, Richard Sandoval’s new Latin-Asian restaurant in NYC, over 400 bottles of Tequila and mezcal can be found in the seductively masculine La Biblioteca. Enjoy a ﬂight of agave tastes, sip a Tamarind Margarita, or head over on a Tuesday night when the library plays host to brand ambassdors from different distilleries (Milagro and Scorpion hit the bar this month) who guide guests through tastings.

As its name implies, BREADBAR in Century City, CA, is best known for the homemade treats coming out of the oven. However, its new monthly “Hatchi Mix” series invites curious imbibers to see cocktail creations made firsthand by talented Los Angeles bartenders, and taste them off a one-night-only $8 menu. Next up: Joel Black of downtown LA’s Caña Rum Bar on June 3rd. www.breadbar.net

www.richardsandoval.com photo credit: Melissa Hom

6 BAY STATE BEVERAGE GUIDE June 2010

WINEBUZZ Spreading the Word: Wines from Santorini If you’ve never heard of the Assyrtiko grape, hat could soon change. The beautiful island of Santorini has partnered with All About Greek Wine and Gregory White PR to kick off a first-ever promotional campaign to spread the word about their full-bodied, crisp white wines. One of the oldest winemaking regions in the world, producers here work with native white varieties, primarily Assyrtiko, to yield mineral-laden, citrusy white wines defined by distinct volcanic soils.

WINEBUZZ

Bag-in-Box Goes Upscale: The Octavin Home Wine Bar From alternative packaging innovators, Underdog Wine Merchants, comes a new international collection of three-liter wine “casks” at a SRP of $22-$24. A few of the wines in the new artisan collection are Monthaven (Central Coast); Silver Birch (New Zealand); Boho Vineyards (CA); and Big House Red and White. “Each has been crafted by an artisan winemaker to be true to their varietal character, country of origin and unique terroir,” says Adam Richardson, director of international winemaking for Underdog Wine Merchants. “You just do not see this kind of artisan approach to winemaking at this price point.” There’s also the added bonus of being environmentally-friendly: Compared with glass bottles, the bag-in-box cask reduces packaging waste by 92% and carbon emissions by 55%.

A New Generation for Soave: Rocca Sveva Wines Hit U.S. Market Winemaking in Italy’s Veneto region has been vastly improving for the last decade, and one of the more exciting innovators in the region, Rocca Sveva, has just released its wines in the U.S. “We see Rocca Sveva wines as the ambassadors of the Veneto region,” says Enore Ceola, managing director of Mionetto USA and MW Imports. “The wines highlight the rich, historic and distinct terroir of the region balanced with innovative technology to produce outstanding wines worthy of international attention.” Located in the Soave region, Rocca Sveva has introduced three wines: Soave Classico DOC ($14.99), Ripasso-Valpolicella DOC Superiore ($20.99) and Amarone della Valpolicella DOC ($60).

NEW BUBBLY FROM WOODBRIDGE

Doña Paula: Argentine Winery to Watch Since its first vintage 10 years ago, Doña Paula has proven to be one of the most exciting wineries in Argentina. This year, the winery’s 2009 Estate Malbec won the title “Best Malbec Under $20”— the highest award given at the Argentine Wine Awards. Doña Paula Estate Malbec 2009 was the only Malbec in the $10 to $20 price point awarded a trophy. Doña Paula belongs to the Clara Group; it’s one of the fastest-growing Argentine brands in the U.S. and is distributed by Vineyard Brands.

The fact that the domestic sparkling wine category grew almost 9% last year was not lost on Mondavi. To answer consumer demand, Woodbridge by Robert Mondavi just released a California Brut Sparkling Wine. It’s the first sparkling ever for the brand and will retail for less than $10 a bottle. Versatile, tasty and food-friendly, it’s perfect for everyday summer drinking.

A New Look to Inspire the Eye. New Grapes to Inspire the Palate. AT SEQUOIA GROVE, we’re proud to announce a new look for our Napa Valley Cabernet Sauvignon. And we’re no less proud of what that look stands for. Because our 2007 Cabernet Sauvignon now includes proprietary fruit sourced from our own estate vineyard on the fabled Rutherford Bench, it is even more expressive of Rutherford’s extraordinary terroir.

ALL OF WHICH ENSURES THAT OUR WINE NOT ONLY LOOKS GREAT ON YOUR SHELVES BUT ALSO TASTES GREAT IN YOUR CUSTOMERS’ GLASSES .

sgv_ad_Bev_media_0410r1.indd 1

Produced & Bottled in R U T H E R F O R D, C A L I F O R N I A

5/3/10 3:15:27 PM

THECONNECTION CuervoGames Since the excitement of the Winter Olympics ended, the sporting life’s been a little lackluster. Enter Jose Cuervo. The CuervoGames tour will hit cities across the U.S. this summer, with interactive activities like the Barrel Roll and Agave Airwalk. Adult teams of four are encouraged to enter on the Cuervo Facebook page to test their mettle and prove they deserve a place in Cuervo history. Fans can follow all the action there, too, and vote for their favorite teams to go on to regional ﬁnals. www.facebook.com/cuervo

THECONNECTION

NEW! iPHONE Apps

twitter.com/zoninprosecco facebook.com/zoninprosecco n

Q Guinness

Finder

Pub

Guinness has stepped in to help consumers ﬁnd the perfect pub, whatever city or neighborhood they happen to ﬁnd themselves in. The Guinness Pub Finder app includes listings for over 20,000 pubs in the U.S. Additional features include ad-ons like a gallery of fun print ads and commercials for Guinness through the years, and a guide to pouring the perfect pint of Guinness. www.guinness.com

Prosecco: *“UnZonin New Year’s” New Year’s often means dressing up and sipping Champagne, but bubbly is a great option year-round. In that spirit, Zonin Prosecco will unveil Un New Year’s on June 1st, with a countdown you can follow on both Twitter and Facebook. During the countdown Zonin Prosecco will provide recipe entertaining ideas for a casual, fun celebration. Make sure to follow them on Twitter and Facebook.

Q Velvet Vine Wine Pro App For those who are equal parts oenophile and tech geek, the Velvet Vine Wine Pro app, selected by VinTank as a top 5 wine app, is the perfect choice. Velvet Vine offers consumers advanced cellar management tips, tools for enhancing wine knowledge and a way to easily record tasting notes from memorable bottles enjoyed while out on the town. www.velvetvine.com

Q Jim Beam Bourbon and Kid Rock Offer Exclusive Music Downloads After a successful collaboration in 2009, when Jim Beam Bourbon sponsored Kid Rock’s “Rock N’ Rebels” tour, the two forces are teaming up again this summer. Consumers can check out special edition gift cartons of Jim Beam and Red Stag by Jim Beam to learn how to download Kid Rock’s latest songs, along with a limited collection of his greatest hits performed live in Detroit. www.jimbeam.com/kid-rock

www.bevnetwork.com SUPPORT IS JUST A CLICK AWAY 10 BAY STATE BEVERAGE GUIDE June 2010

BEAMBRANDFOCUS

Beam Global Offers the Perfect Canadian & American Whiskies for Summer Canadian Club Whisky Canadian Club Whisky proudly announces the return of Hide A Case. One of the longest-running promotional campaigns in history, the adventure campaign in which consumers from around the world searched for hidden Canadian Club Whisky cases in remote locales—Mt. Kilimanjaro to the Great Barrier Reef—returns to find a long hidden missing case, now utilizing online challenges, a video competition and a live treasure hunt. The 2010 resurrection offers consumers the first clues to find one of the missing cases hidden around

the world between 1967 and 1991. In addition to the online and social media program, Canadian Club will have online and out-of-home advertising and grassroots activation in the U.S. and Canada. Adventurous types, who are of legal purchase age, can register online at www.hideacase.com to vie for one of the coveted eight spots on the expedition and a chance to win $100,000. Get into the adventurous spirit with the Hiker’s Highball!

DRINK RECIPE

Hiker’s Highball 1 part Canadian Club 6 Year Old Whisky 2 parts Ginger Ale Serve over ice in a tall glass

Knob Creek Straight Bourbon It’s been seven months since our newest batch of fully matured nine year-aged Knob Creek was released from barrels. Celebrate the continued fastgrowing demand of America’s native spirit with a summer cocktail fresh from Kentucky. The nation’s number one selling super-premium Bourbon ran short in the summer of 2009 due to high consumer demand and an unwavering commitment to the full, nine-year aging process that gives Knob Creek its rich, distinct character. Rather than rush production, Knob Creek stayed true to the ideals and standards of its originator, the late Booker Noe— grandson of Jim Beam—and let this batch, barreled in 2000, reach its full potential. Booker Noe, the sixth-generation Beam family distiller who ﬁrst hand-selected Knob Creek for production, invented more than a singularly rich, sweet, full-bodied Bourbon. In requiring nine-year, four-char barrel aging, Noe set the standard for an entirely new category: super-premium Bourbon, today among the nation’s fastest-growing spirits. What’s the magic in nine years? A number nearly unheard of in American whiskey? It’s fast evident ©2010 James B. Beam Distilling Co., Clermont, KY. ©2010 Canadian Club Import Company, Deerﬁeld, Ill.

that aging nine years in four-char barrels gives Knob Creek its richness and complexity, with distinct vanilla, oak and caramel ﬂavors. Copper to mediumamber in color; to the nose, maple sugar, toasted nuts, grain and oak. Knob Creek is bottled at 100 proof perfection and offers a long, glowing ﬁnish. It's worth the wait.

DRINK RECIPE

Knob Creek Mimosa 1.5 part Knob Creek Bourbon Chilled sparkling apple cider In a champagne ﬂute add Knob Creek Bourbon and then top off with chilled sparkling apple cider. Garnish with a thin slice of apple and slide it on the rim.

June 2010 BAY STATE BEVERAGE GUIDE 11

INDUSTRYPROFILE

Family Matters A Chat With Brad Rubin BY TERRY CONNAUGHTON

year after the passing of Ted Rubin, and in celebration of Father’s Day, Bay State Beverage Guide publisher Terry Connaughton sat down with Brad Rubin of Ruby Wines to see how things were going for him both professionally and personally.

TERRY CONNAUGHTON: The passing of your dad was a big loss to the industry. A year later how are you holding up? BRAD RUBIN: My father was the most important person in my life—a mentor in business and also my best friend. He was also a great husband, father, grandfather and golf partner. Not a day goes by that I don’t think about him and want to speak to him to update him about Ruby or with the kids. I don’t think that will ever change. TC: How is Ruby Wines' business holding up? BR: Our business is holding up extremely well as we continue to follow the path that Ted paved of excellence and integrity; we showed growth last year, in one of the most difﬁcult years that we have seen in the business. TC: Before we divulge into other things, tell us where the name Ruby came from? BR: My grandfather Irving shortened Rubin to Ruby Wines. He thought it sounded better and was easier to pronounce.

12 BAY STATE BEVERAGE GUIDE June 2010

ON THE JOB TC: Some people really think you may have the dream job, growing up in the family wine business; free wine, great wine, great restaurants, great food. Are they right? BR: Nothing is ever free! I would never trade what I am a part of and what I do— so in essence it is a dream job. Great wine, travel and creating relationships and friendships with people around the world is not as easy as people think. Being a part of a family business means you have to continue to prove yourself—sometimes twice when I was starting out—and be innovative. Ruby Wines is my make-up and culture, and consider everyone in our company an extension of our family.

ON THE INDUSTRY TC: Whether it’s a certain article, a rating, or a blog, the wine industry seems to be attracting an awful lot of publicity on many fronts. What’s your take on the ratings system? BR: Ratings are always used to our advantage, whether we are trying to sell

Brad Rubin

stores or restaurants based on a 95 point score. In turn, they turn around and sell to their customers based on the same press. If it helps promote sales or a pre-sell we hit it as hard as we can. The negative is that the following vintage of that same wine can get 89 points and it does not generate the same enthusiasm or sales.

ON BEST PRACTICE TC: You are in stores/restaurants that sell wine every day. What are some common themes you see practiced in the on-and-off premise? BR: The retailers that are seeing success today are selling wine through forms of media other than customers walking in the front door. Email blasts on a wine of the week, E-Newsletters, mailing lists, and Facebook are all changing the way wine is being sold. The consumer is more savvy on press and price. It’s not uncommon to see someone walking the shelves checking prices or scores on their iPhone or sitting at a restaurant table doing the same. They may also be on Twitter discussing their (hopefully positive) meal and wine. In store wine tastings with a winemaker, wine education classes and priority emails all help build loyalty with their customers.

EVENTS CALENDAR z Event z Location

z Time z Contact Information

June 2010 6th-7th better to be judged on what you say about others than what other people say about you. We are not for sale.

ON LEGACY TC: Our industry lost another stalwart in Mr. Tye recently. As you and the next generation of MA beverage alcohol distributor leaders emerge, what part of the past generation will you keep, and what will you do differently?

ON BRAD TC: Okay, suppose I was a dinner guest at the Rubin house next Friday night; what would my wine selection look like?

BR:: Mr Tye and my father did business on a handshake and trust. If they said something to a supplier or to our customers, they meant it and it would get done. They were both extremely well known around town, always out at restaurant openings and supporting the trade. In addition, they never missed stopping in to thank retailers during the busy holiday period. It’s that part of their legacy that I will try to uphold. My generation is an email and text generation—a bit more impersonal, which is unfortunate. My father never had to deal with voice mail, cell phone messages, emails and texts until a few years ago. Now, I can have 25 or more messages in four different ports after I get out of an hour meeting, all that expect to have an answer ASAP. TC: With all the consolidation that’s taken place in the MA marketplace, there are some industry insiders who think Ruby Wines is well-positioned to be taken over by a larger national wholesaler. What’s your reaction to that? BR:: People that know my uncle and I understand our commitment to the industry and Ruby Wines. I never get caught up in rumors; it’s always

BR:: Always start with a glass of bubbles, most likely Rosé—especially if my wife Annie has a bottle of Gosset left. Next will be a bottle of Trimbach Riesling Cuvée Frederic Emile or for you, maybe Clos St Hune. After that, we’ll go down to the cellar together for reds and the rule is we can open anything as long as it’s ready to drink. Start with a bottle of Burgundy, D’Angerville Volnay Clos de Ducs. TC: Tell us something about Brad Rubin we don’t know? BR:: I love being with my family, especially watching my three boys play hockey with my wife Annie, although we sit on different sides of the rink. It’s not uncommon to ﬁnd me in ﬁve or six different hockey rinks every weekend all over New England watching the boys.

z SKY RANCH 50TH ANNIVERSARY z The Lodge, Deadwood, SD www.skyranchfoundation.org

13th-15th z AMERICAN BEVERAGE LICENSEES

8TH ANNUAL CONVENTION z Marriott Hotel, Louisville, KY

18th-20th z A NEW ENGLAND FOOD

& WINE FESTIVAL z DCU Center, Worcester, MA

18th-20th z AMERICAN CRAFT BEER FESTIVAL z The WTC Seaport Boston

20th-21st z THE BAR & WINE SHOW z Jacob Javitz Center, New York, NY

28th z THE TED RUBIN MEMORIAL

GOLF TOURNAMENT z The International, Bolton, MA

September 2010 27th z M.S. WALKER 2010 FALL TASTING z World Trade Center, Boston, MA

28th z HORIZON BEVERAGE 2010

FALL TASTING z TBD, Boston, MA

TC: Thanks for your time today, Brad. Any parting thoughts?

October 2010

BR:: Yes. I truly appreciate everyone involved with Ruby Wines. Robert and I run a family business like it’s our family. From our senior managers Wayne, Bill and John to all of our DMs, salespeople, ofﬁce staff, warehouse employees and drivers along with our loyal suppliers—I admire the dedication and effort they put forth every day.

5th z IWSWA 2010 FALL TASTING z TBD, Boston, MA

6th z ANNUAL MASSPACK TRADE SHOW z Best Western Royal Plaza, Marlborough, MA

BAY STATE BEVERAGE GUIDE WANTS TO KNOW WHAT IS HAPPENING! Please inform us of upcoming events and tastings. Send upcoming events to: Beverage Media Group, 116 John Street, 23rd Floor, New York, NY 10038 Attention: Events or email at: info@bevmedia.com

June 2010 BAY STATE BEVERAGE GUIDE 13

TALKIN'TECH

Secure Your Future An Ounce of Compliance is Worth a Pound of Data Breach Cleanup BY IAN GRIFFITH

or most wine stores, their efforts to secure information against possible theft have been driven by banks and the card issuing companies. The Payment Card Industry (PCI) launched its campaign to deﬁne security standards in 2006, and has been largely successful in promoting these standards to retailers and their vendors. Now a new source of data security compliance is beginning to make its way into the vocabulary of retailers as local government begins to legislate for personal information security.

MA LEADING THE WAY The ﬁrst of these is a Massachusetts law, cryptically named 201 CMR 17.00, intended to protect the personal information of residents of the Commonwealth. Its direct impact should be limited for liquor store owners outside MA, given the restrictions on shipping wine into that state. However, this law likely signals an increased willingness by government to protect citizens from the “substantial harm or inconvenience” that results from unauthorized access to personal information. As such it is worth paying attention to the expectations of this law.

BUSINESS SPECIFICS The state of Massachusetts has written a risk-based law that looks at the size and scope of your business. For instance, it places fewer demands on a small business with a few employee records to protect versus an accounting ﬁrm that handles and stores client ﬁnancial records. Liquor stores typically handle a large volume of credit card transactions, so it is likely this law and others like it will require an audit of several areas of your business.

14 BAY STATE BEVERAGE GUIDE June 2010

A MASSACHUSETTS LAW SIGNALS AN INCREASED WILLINGNESS BY GOVERNMENT TO PROTECT CITIZENS FROM THE SUBSTANTIAL HARM OR INCONVENIENCE THAT CAN RESULT FROM UNAUTHORIZED ACCESS TO PERSONAL INFORMATION The primary task involved in complying with 201 CMR 17 is writing an Information Security Policy (WISP) that outlines your security audit. The requirements of this audit are deﬁned in the law and address the storage of personal information and any risks to the security of that information.

MERCHANTS RESPONSIBLE FOR VENDORS What is different about the MA law is the burden it places on the merchant to verify compliance by their vendors. A review of the information that the store presents to banks, merchant service providers, insurance companies, POS vendors and accountants then leads to a request for a compliance statement from that vendor where personal (not corporate) information is involved. If the store passes information to a vendor they have selected, and that vendor then fails to protect the data, a portion of the liability for that breach rests with the retailer. Massachusetts stores that have been through this process usually ﬁnd they have addressed the credit card security issues while preparing for PCI compliance. Nowadays most retailers accept signatures on capture pads where the card is swiped. For

stores with paper signature slips the receipt only shows the last four digits of the card, the authorization code and the transaction ID used by the bank. When the credit card is stored in the POS it is encrypted and PCI requirements for deleting the expiration date and the CVV code are commonplace.

SAFE KEEPING OF PERSONNEL INFO Personnel information also needs to be accounted for and secured which includes payroll statements, medical insurance form, and bank statements. For stores that accept personal checks either from customers or employees, copies of those checks or bank statements that include check images need to be secured. When sales staff receive a phone order and then copy down the card number before ringing up the order, a policy needs to be deﬁned for how this task is performed in a secure way. Few people actually enjoy auditing the data security of a store, but clearly the security of this information is becoming an increasing priority and should become common practice in your store. To comment on this column or to learn more about how Beverage Journal can help with a website for your store visit bevsites.com, contact Ian Grifﬁth at 617-864-1677; or follow us on twitter at twitter.com/bevsites.

Become A Sponsor or

Make A Donation The Ted Rubin Memorial Golf Tournament Ted was a wonderful person and his drive on the golf course, in business and his will to live â&#x20AC;&#x201C; will forever be etched in our hearts. It is with great honor that we hold PDEO PKQNJ=IAJP EJ DEO J=IA -HA=OA FKEJ QO EJ PDA Ĺ&#x201A;CDP =C=EJOP ?=J?AN =J@ I=GA = donation to the Ted Rubin Memorial Golf Tournament -NK?AA@O SEHH >AJAĹ&#x201A;P !N /E?D=N@ 0PKJAÂ&#x2020;O )AQGAIE= /AOA=N?D =P !=J= #=N>AN =J?AN &JOPEPQPA

Monday, June 28, 2010 at The International, Bolton, MA

Play Golf Â&#x160; Have Fun Â&#x160; Beat Leukemia

This event is expected to sell out quickly! -HA=OA AI=EH 'KJ /KOAJ>ANC =PÄĄ FNPN=JO=IÄ¤=KH ?KI KN ?=HH DEI =PÄĄ to request a registration/donation card. Any donation would be welcomed.

Sponsored By:

Metallic bins felled and damaged from vibrations transmitted by the the earthquake

INDUSTRYREPORT

Chile’s Aftermath The Chilean Wine Industry Regains Footing After Earthquake BY LAURA HOLMES HADDAD At 3:34 a.m. on February 27th, 2010, Chile was shaken by an earthquake that registered 8.8 on the Richter scale and lasted for 2 minutes. While the epicenter was in Chile’s southern region, the entire country was affected with a total of 723 deaths reported. The country’s infrastructure sustained $30 billion worth of damage to roads, bridges, buildings and ports. The Chilean wine industry— one of the top ﬁve wine exporters in the world—was also hit hard. In a country where wine is the second biggest industry after copper, damage to the wineries was a major concern. Wine exports in 2009 totaled 670 million liters, valued at $1.36 billion. According to Lori Tieszen, executive director of Wines of Chile USA, 68% of the wine produced is exported.

THE DAMAGE DONE The wineries in the southern regions between the Colchagua and Maule Val-

16 BAY STATE BEVERAGE GUIDE June 2010

leys were the hardest hit, while wineries in the northern regions—including Casablanca and Leyda—were largely unaffected. “We have between 90 and 100 wineries in the southern valleys and some were affected and some were not,” says Viviana Araneda, trade commissioner of Chile in Los Angeles. While some buildings and vineyards sustained minor damage, it was the barrels, tanks and bottles on racks that were the most affected. Christophe Salin, president of Domaine Baron de Rothschild, which owns Los Vascos in the Colchagua Valley, says the structural damage at Los Vascos was limited to leaking problems with the concrete tanks used to store wine, with no damage to the labeling equipment or other machinery. “We will lose 20% maximum of the wine we had at the winery in concrete tanks, wooden barrels or metallic bins,” says Salin. “The bins transmit the vibration [of the earthquake] and they fell down on each other or onto the barrels.”

The vineyards, however, suffered minor damage due to power outages. Some wineries in the southern region have their own dams for irrigation, some of which were damaged. “Some of our dams exploded because of the quake,” notes Salin. Alex Guarachi, president and CEO of TGIC Importers in California, which imports Montes and Santa Ema wine brands, traveled to Chile in April to survey the damage at the wineries he works with. He points out that the power outages also disabled several irrigation systems at some wineries in the southern region, leaving many vineyards without water for about one week. The wine that ﬂowed from broken tanks also affected surrounding land in the region. “Just outside one winery, in a surrounding parkland, the trees had died because the wine had seeped into the soil and the alcohol killed the trees,” says Guarachi. He noted that the stainless steel tanks he saw “looked like beer cans that had been squeezed with human hands. They were just crumpled.”

CONSEQUENCES TO THE WINERIES Wines of Chile, an industry trade group, estimates that 125 million liters of wine were lost, including bulk, barrel, and aged wine. That is equivalent to 250 million bottles and represents a total loss of 12.5% for the industry. The group states that the damage sustained by wineries affected 13% of the country’s 2009 harvest. Lapostolle, another winery located in the Colchagua Valley, lost less than 5% of its red wines that were in barrels, and “virtually nothing” in the Chardonnay. The 2009 vintage is “completely intact,” Helen Gregory of Gregory White Public Relations, who represents Lapostolle, said in a written statement. The bottle loss represented 20% of the total production of 2008; the bottling line was damaged but shipping resumed March 15th. At Montes Winery in Curicó, the entire production of one varietal was lost to the earthquake. “Montes was about to bottle a Carmenère and it was in tanks but it was destroyed,” says Guarachi. But fears of higher prices due to earthquake damage have been averted, at least at Montes. “Many wineries have excess

wine because of the economy but they have promised they won’t raise prices,” says Guarachi. “Our wineries might not be discounting or giving incentives but they are not raising prices, which I think is critical in today’s economy.” While there were no employee deaths reported at wineries, many workers lost homes when their adobe houses simply collapsed. Wineries worked to repair any damage to the winery but focused on the rebuilding of homes for their employees. “Everyone is really focusing on workers’ homes,” says Tieszen. “That is the immediate need because winter is approaching.”

WORKING TO REBUILD Miguel A. Torres, president of Bodegas Miguel Torres in Curicó, in the region of Maule, reports losing about 10% of production. “It will take one to two years to repair everything as it was. But at least we are operating.” As Tieszen describes, however, the loss of employee housing became the winery’s focus. “The ﬁrst thing we did was try to get them a new house,” says Torres. “It was difﬁcult in the beginning to get supplies but we turned our winery into a house factory and contracted people to buy the wood and everything we needed and even

started making parts that we needed.” Torres says that as of early May “almost everyone” who lost a house had a new one, and the program was so successful that he raised $100,000 to continue the building effort for the homeless that were not employees of the winery. In early May a team of builders came from North Carolina to help with the rebuilding. The winery also donated 50,000 Euros to the Curicó Council to assist those in need. Concha y Toro, Chile’s largest wine producer, also contributed to the rebuilding effort. The “Concha y Toro Helps Concha y Toro” campaign assists employees who lost their homes. And Banﬁ Vintners, the U.S. importer of Concha y Toro, raised $200,000 for Levantando Chile (Raise the Roof for Chile) for the home rebuilding effort, including a donation of $50,000 from distributors around the U.S., says Jane Kettlewell, director of public relations for Banﬁ. Concha y Toro lost 22.8 million liters of wine in the earthquake and shut down all 11 winemaking facilities for one week. The winery sustained structural damage at only one facility in Puemo. While the winemaking facilities emerged relatively unscathed, the ports did suffer damage, including the

Left: Many employee homes from Miguel Torres Winery were badly damaged Right: Pre-fab homes were soon constructed afterwards for housing

June 2010 BAY STATE BEVERAGE GUIDE 17

INDUSTRYREPORT A scene from Puente Alto Vineyard before the earthquake

San Antonio port used by Concha y Toro, which reopened March 3rd. “In the warehouse we were fortunate that the big shipments had left prior to the quake—200,000 cases. But in the warehouse 20% of the stock was damaged,” says Kettlewell, noting that all Concha y Toro shipments resumed March 8th and the 2010 harvest began that week. The earthquake occurred just as the 2010 harvest was about to begin. “Had it happened a couple of weeks later we’d be looking at something far more serious with the harvest,” says Kettlewell, pointing out that a naturally delayed harvest was also a lucky break for Chilean winemakers. But the 2010 harvest proceeded as normal despite fears that worker shortages existed. Concerns about labor shortages due to the housing situation proved to be unfounded, with wineries reporting a normal harvest and workforce. Winemakers credit the strict building codes that Chile enacted after the 1995 earthquake for preventing more damage. “After the terrible quake in ’95 they know how to build everything with seismic engineering in mind,” says Salin. “That explains why Chile had less damage than Haiti.”

OUR INDUSTRY RALLIES Fundraising efforts in the U.S. to assist victims of the earthquake began days after the news broke. In addition to the contributions by wineries, several importers and retailers in the U.S. got involved as well. In March, Southern Wine & Spirits of America, Inc. announced that they would make a “signiﬁcant donation” to a charity to aid earthquake victims. TGIC Importers donated a portion of the proﬁts from those brands through May; Guarachi set the minimum donation at $50,000 with

18 BAY STATE BEVERAGE GUIDE June 2010

a maximum of $100,000. The money was donated to Music for Relief, which works with Habitat for Humanity to rebuild houses for the 2 million people left homeless by the earthquake. “Key clients like Costco and Safeway have been supporting our cause,” said Guarachi. Napa Valley winery Quintessa, owned by Huneeus Family, which owns Veramonte winery in Chile, held a fundraiser on May 16th for Hogar de Cristo, which

HELP FOR CHILE To help the Chilean relief effort, here are three great relief organizations: LEVANTANDO CHILE FUND (Raise the Roof for Chile) http://www.nesst.org/give/levantandochile.asp MUSIC FOR RELIEF (Raise a Glass for Earthquake Relief in Chile) http://www.musicforrelief.org/proﬁles/ blogs/raise-a-glass-for-earthquake AMERICAN RED CROSS http://www.redcross.org

provides direct aid to Chilean earthquake victims. The hospitality industry also instituted relief efforts. More than 20 hotels and resorts of The Four Seasons properties in North America donated $10 to the Chilean Red Cross for each bottle of Veramonte wine sold, and a $2.50 donation for each glass of Veramonte sold. Smaller scale relief efforts in the New York metropolitan area also began almost immediately after the earthquake. At Gary’s Wine & Marketplace, with three locations in New Jersey, a minimum of $5 per case of Chilean wine sold in the month of March, was donated to the relief effort by owner Gary Fisch. In March, Puro Chile, a retail store in New York City that sells wine, artwork and food from Chile, held a $100 per ticket auction and raised $75,000 for Levantando Chile according to store manager Luis Rojas.

SWIFT REBOUND The Chilean wine industry moved quickly to recover from the earthquake but the investment in the rebuilding effort continues. On April 26th Concha y Toro announced it would spend $40 million in 2010 to replant new vines and construct new storage facilities. And on March 23rd the government of Chile announced a plan for “moderate” tax increases to pay for earthquake repairs, according to a statement released by Chilean Finance Minister Felipe Larraín. “Especially in the rural areas there are still a lot of people that need help,” says Torres. But the resilience and determination of the Chilean people is mentioned frequently. “I’m very impressed by the strength of the Chilean people,” says Salin. “These are very generous people and they are adamant about getting everything back to normal.” Q

Appleton Estate Extra 12 year old Rum ÂŠ 2010 Kobrand Corporation, New York, NY. Product of Jamaica. Imported by Kobrand Corporation, New York, NY. 43% ALC. BY VOL. Please sip responsibly.

SINCE 1749

appletonestate.com

Sunrise at Robert Mondavi Wines courtyard

Gamble Ranch, Beringer

California Grapes Bring Riches, But Can America’s Most Famous Winemaking Region Stay on Top of the Industry? BY ALIA AKKAM

ost oenophiles recall 1976 as the year that changed everything for California’s burgeoning wine industry. At the InterContinental Hotel in Paris, French food and wine elite gathered for a grand blind tasting. Much to their shock, after pitting four white Burgundies against six California Chardonnays, and six Cabernet Sauvignons against four red Bordeaux, Chateau Montelena’s 1973 Chardonnay and Stag’s Leap Wine Cellars’ 1973 Cabernet Sauvignon emerged the victors. California-made wines beating out those from France? After years of hard work, California finally received incredible worldwide recognition for its wines. Not only did the coveted title bring attention to America’s premier winemaking region, it also laid the foundation for building a poignant brand. 1976 is just one significant moment in California’s sweeping wine history, from the 1889 Paris Exposition, the less wellknown event where a California wine—

Charles Wetmore’s 1884 vintage Cresta Blanca dry white—was the first wine to outperform a French, to brothers Ernest and Julio Gallo starting a wine company in 1933 in post-Prohibition Modesto, to Robert Mondavi giving Sauvignon Blanc new life by positioning it as Fumé Blanc, to even the Merlot and Pinot Noir craze

To U.S. & Abroad

To U.S. Retail Value Only Shipped to U.S. (in billions, est.)

2009

237

197

$17.9

2008

240

196

$18.5

2000

187

165

$13.0

While total shipments of California wine are down slightly over the prior year, it remains more than 25% higher than shipments made in 2000. source: The Wine Institute

surrounding the 2004 release of the muchhyped wine flick, Sideways. Old World wines, with France and Italy leading the pack, have been the most sought after bottles through the years, yet it’s clear that early on California was in the midst of a revolutionary wine movement. Today, despite great and value-friendly wines being produced in Washington, Oregon, New York and Virginia, for example, California is still considered the pinnacle of American winemaking, with the neighboring regions of Napa Valley and Sonoma usually singled out as the most prestigious. What is it about California, the fourth largest wine producer in the world, responsible for 90% of American-made wines, that has kept it at the top of the domestic winemaking game, other than stellar weather in Napa and Sonoma practically ensuring consistent quality? More importantly, how has its messaging become so powerful that California is likely to remain one of the country’s top “brands?”

According to the San Francisco-based Wine Institute, which was established in 1934 to help rebuild the industry after the repeal of Prohibition, it’s a wonderful time for California wine. In 2008, California wine exports to 122 countries surpassed $1 billion for the first time. It produces $61.5 billion in economic value for the state of California alone, and generates $121.8 billion domestically. Talk about coming a long way.

portfolio has evolved with the tastes of our consumers, offering new wines and tiers for a variety of customers. We’re also known for a remarkable collection of vineyards—we farm over 6,000 acres in California that are some of the finest in the state, giving us the integral and quality foundation for our portfolio of wines.”

Bargain hunting

•

the plaYers

•

“More than anyone else, Robert Mondavi is the person who put California wines on the map,” says Oren Lewin, SVP of brand marketing, Constellation Wines U.S. “He had two visions—one was to put California wines in the company of great wines of the world—and the other was to produce an affordable wine in order to put a glass of wine on every table in America.” When Constellation acquired Robert Mondavi’s holdings in 2004, quality was not sacrificed at all; winemakers continue to make wines to his standards. “From a marketing perspective, the Robert Mondavi wines campaign focuses on all three tiers of Robert Mondavi wines—Woodbridge by Robert Mondavi, Robert Mondavi Private Selection and Robert Mondavi Winery. In order to carry forward this legacy, we want consumers—especially new ones looking for trusted brands like Robert Mondavi—to understand the impact he had on California and the entire wine industry,” explains Lewin, noting that this is accomplished through a combination of promotions, advertising and interactive events with “Robert Mondavi Discover Wine.” There are some other names, of course, in California wines—the players—that one hears over and over again, whose bottles fill retail shelves and attract customers: St. Supéry, Kendall-Jackson Wine Estates, Chateau Montelena. A recap of the California wine industry must always mention the entrepreneurial vision of E&J Gallo, and that’s because not much has changed in its approach since Ernest and Julio set up operations 75 years ago. “We have stayed focused

Gina Gallo, granddaughter of Julio, is the face of E&J Gallo

on wine, and we plan by generations to ensure the sustainability of our family winery,” explains Gina Gallo. “We have been able to create a scope of operations that touches many aspects of winemaking in California, and allows us the freedom to try different things, to build our knowledge base and increase our understanding of what wine can be and what it can mean in a life well-lived. We have always believed that this all begins with the land, the only resource absolutely necessary for making great wine. Without the land, the vineyards behind the wine, the name Gallo would mean nothing.” Beringer is another of California’s most fabled wineries. “We have a unique winemaking legacy—our winemaker Laurie Hook is only the seventh winemaker in 130 years,” says Barry Sheridan, VP of brand marketing. “The significance of this collective knowledge and history is greatly appreciated by our customers, as is the consistency in winemaking that it accounts for.” Sheridan continues: “Throughout the decades, the Beringer

Austin Hope, Hope Family Wines

According to the Wine Institute, during the recessionary 2009 economy, California vintners shipped 467.7 million gallons (196.7 million cases) of California wine to the U.S. wine market in 2009, up a modest 0.2% compared to the previous year’s volume. The estimated retail value of these sales was $17.9 billion, down 3% from 2008. Last year, Jennifer Frank and Tyler Senatore opened California Wine Merchants in New York City after falling in love with California wines. Frank, however, feels that the marketing hasn’t always been beneficial when it comes to pricing. “Reputation goes a long way in attracting vacationers and status-seekers but the notion of prestige can backfire in an economy where people are searching for value,” she says. “Customers erroneously think that California wines are expensive and, worse, overpriced. We’re trying to refute that image by bringing in excellent California wines that over deliver at every price point, from $10 to $100+.” Obviously, not all California wine costs big bucks. Take Fred Franzia, who spawned a California wine subculture with his Bronco Wine value portfolio. Perhaps best known for the extra-value Charles Shaw brand, nicknamed “Two Buck Chuck,” Franzia has proven that wine, for as little as under $2, can cost a customer less than a bottle of Evian. “It’s all about the combination of drinkability and affordability,” says Franzia, who has built his empire on “better wines at fairer prices.” Trinchero Family Estates is perhaps best known for its value-conscious Sutter Home portfolio, led by the innovative White Zinfandel. Not only did it make Sutter Home a recognized household name, it also introduced a new way of drinking premium wine to consumers.

Often synonymous with good-value California wine is Blackstone. When Constellation snatched it up, Blackstone co-founder, Derek Benham, then launched Purple Wine Company in Sonoma, offering well-priced wines with varietals that often have jacked up prices. Take, for instance, the Rock Rabbit Shiraz and Mark West Pinot Noir. “In most cases it doesn’t matter whether it is from CA, WA, OR, or another country. It has become even more critical with this global competition to have a real price/value proposition for the customer,” shares Purple Wine’s Dennis Carroll. James Stewart, GM of Napa’s Stewart Family Cellars, founded by his father, also rolled out Slingshot Wines, devoted to great tasting wines with reasonable price points—usually a challenge. “Napa at $19.99 is really hard to do. We look at other wines that are under $30 and it’s either because the winery’s had the property a very long time and doesn’t have high land costs or, the wine gets watered down,” explains Stewart. “You can’t just make wines over $80 a bottle—unless your production is very low and you’re not having cash flow issues.” He says this is why many of the big companies offer multiple brands to suit different demographics. What has proven to be a boon for many California wineries is its ability to straddle both prestige and value brands. Take Constellation, for example. “Our portfolio offers a value at all price points, so we benefit regardless of the shifts. Woodbridge by Robert Mondavi retails around $6 a bottle while we also have luxury wines such as Robert Mondavi Winery, with retail prices of over $100,” notes Lewin. Gallo, synonymous with accessible price points, also flaunts the William Hill portfolio, featuring rich, elegant wines made with Napa Valley grapes from Silverado Bench and Carneros Vineyards. “Led primarily by Gallo and their strength of global distribution, the value CA wine segment has exploded internationally,” says Amy Hoopes, chief marketing officer of Wente Family Estates in Livermore. The real opportunity to showcase California’s value wines lies not in Napa and

sales people, plus myself, and we are always traveling and showing the wines to everyone from consumers to distributors.”

on the list

•

James Stewart, Stewart Family Cellars and Slingshot Wines

Sonoma, but in the state’s up-and-coming regions, like Lodi and Temecula, where wineries such as Klinker Brick and Callaway have managed to carve successful niches and bring awareness to California’s more under-the-radar regions with quality wines. “Our customers are definitely interested in discovering wines from other areas,” says Frank. “In fact, the perception that there are better values available from lesser known regions only adds to the allure.”

keep it coming

•

Beyond Napa and Sonoma, these other California winemaking regions seem big on taking risks, especially the Central Coast, where Rhône-style wines are favored. Winemaker Austin Hope of Hope Family Wines in Paso Robles, which includes the brands Treana, Liberty School, Austin Hope and Candor, sees the promotion of the Central Coast as an opportunity, not a challenge. “Napa and Sonoma’s story has been told,” he says. “We are fresh and emerging, so people are excited to learn about our region. We have 14 Laurie Hook, Beringer's seventh winemaker

As consumers decided to dine at home more often, and business travel was curbed during the recession, wineries reliant on restaurant accounts found that onpremise sales were off 6%-9%. Mark Bright, sommelier at Saison in San Francisco, sells 50 different California wines by the glass, and did not notice a huge difference when the economy struggled: “There were many high-end sales that dropped but the $40-$80 range on the wine list was great. I think that $100+ buyers moved to $80 and the $70-$90 moved to $40-$60.” And what about those value wines from the up-andcoming regions? Do those become more attractive when Napa and Sonoma wines seem out of reach for customers? Not so much, says Bright. “There are wines in the same price point from Santa Barbara, Sonoma and Mendocino which produce higher quality more balanced wine on a consistent basis due to climate and aggressiveness, so I rarely work with wines from those two regions,” he points out. Recently, Franzia has made an impact on the on-premise as well: “We have a standing offer to work closely with restaurants to put $10 wines on their list. In the current environment, this idea has been gaining even more traction.” For Stewart, however, the off-premise is a priority. “It’s hard to get Napa Valley Cabs to hit the list at $12 or under,” he notes. “Those brands that everyone knows are going to be on wine lists, and customers rely upon existing brand awareness—it’s not exactly brand building time.” Stewart prefers the off-premise because retailers are loyalists—once they find something they like, they hold on to it. “A retailer can take a customer over and say ‘you’ve never had this, you should try it’. People kind of forgot about the retailer along the way, but they were always the people to be friends with.”

HornitosTM Plata Tequila makes the perfect chilled shot.

100% PURO AGAVE TEQUILA

Wente Vineyards

Gallo Vineyards

green future

in the lead

Across all realms, going green is a major focus of any business plan, and the California wine industry has embraced it wholeheartedly. Earlier this year, the new statewide Certified California Sustainable Winegrowing (CCSW) program was introduced to help identify the concept of sustainability, giving the term as much weight as those other buzzwords, organic and biodynamic. Independent auditors will visit wineries and growers to confirm that environmental practices are in place. One such proactive winery is Wente, a candidate for certification. “Being family-owned and farming nearly 3,000 acres of estate vineyards, the Wente Family has been ‘farming for the future’ each harvest, for the past 127,” explains Hoopes. “We are excited to see so many wineries follow suit in their commitment to sustainability. By keeping the emphasis on these critical factors of winegrowing, the CA wine industry will continue to flourish.” Even wineries not eager for certification have become more eco-minded. Franzia has introduced a unique biodegradable cork for its Crane Lake wines; for each bottle sold of Trinchero’s Trinity Oaks brand, a tree is planted as part of its “One Bottle, One Tree” initiative; and Constellation just launched its first wine made with organic grapes, Mendocino Vineyards.

California remains ahead of the class, but it can’t go unnoticed that South American wine—value-friendly and enjoying a buzz of its own—offers some New World competition to beloved CA wines. “If I make a $40 bottle of wine, is it going to be better than a $20 one from Argentina,” asks Stewart. “Yeah, it’s competitive, but I have noticed recently that Napa Valley is all in this together, offering helping hands and avenues of openness in how to sell wine and share and work on pricing.” Product innovation is a must. Trinchero is not just relying on the recognition of Sutter Home but forging ahead. For instance, it’s a leader in Tetra-Pak packaging, and its Newman’s Own line has been successfully repositioned. Over at Constellation, Woodbridge has added sparkling and Moscato line extensions. Marketing creativity is also a priority. “We have several programs this year to help drive our brands within the marketplace. We have a good mix of developing new campaigns as well as enhancing legacy promotions that consumers continually ask about,” says Steve Sprinkle, VP domestic sales, E&J Gallo Winery. “One new promotion that we are excited to deliver to the retailer this year is our ‘Holiday Entertaining/Home Wine Tasting’ featuring our Commercial Premium portfolio (Mirassou, Ecco Domani, Red Rock, Dancing Bull and Alamos). This promotion features a home wine bar

•

mass display, wine tasting wheels, tasting placements and carton riders. The concept is to encourage the consumer to host an in-home wine tasting event. This promotion will allow the retailer to display several brands, while driving trial on the consumer end. Technology's another important new forum. Take the Liberty School WINE DJ app for the iPhone, in which Hope Family Wines is reaching the coveted Millennials. Or Beringer’s Great Steak Challenge, encouraging home cooks to submit steak recipes for a chance to visit the winery. Overall, though, Frank would personally like to see more variety. “When you walk in to wine stores and see the same California brands over and over again, it does nothing to showcase the amazing depth and breadth of wines the region has to offer. By diversifying away from just the big brands and making consumers aware of the excellent small producers and great values available, demand for CA wines will grow,” she explains. In that spirit, Gallo thinks her family’s formula of quality and value will remain successful: “We have always made wines that ‘drink better than the price, I think we can do a better job of showing more people how wine can add new dimensions to their meals and lifestyles.” But Hoopes’ vision for California staying in the lead, is perhaps most poignant: “Winemakers and marketers alike need to remember that once a brand is launched, the consumer owns it. Continuing the ongoing dialogue with them is a must.” ■

2%!$9 4/ $2).+ #/#+4!),3 2%!$9 &/2 35--%2¬&5. 2EADY¬FOR¬WHATEVER¬SUMMER¬ MAY¬BRING ¬THE¬#OCKTAIL¬#UBE¬FITS¬ PERFECTLY¬IN¬A¬COOLER¬FOR¬""1 S ¬ TAILGATING ¬PICNICS¬AND¬MORE %ACH¬CUBE¬CONTAINING¬ABOUT¬ ¬SIX OUNCE¬COCKTAILS¬IS¬COMPACT ¬ LIGHTWEIGHT¬AND¬NON BREAKABLE 0LUS ¬AIR TIGHT¬PACKAGING¬KEEPS¬ COCKTAILS¬FRESH¬FOR¬ ¬WEEKS¬OR¬ LONGER¬SO¬THEY¬CAN¬BE¬ENJOYED¬ ALL¬SUMMER¬LONG

#RUZAN ¬-OJITO¬s¬3AUZA ¬3TRAWBERRY¬-ARGARITA¬s¬3AUZA ¬/RIGINAL¬-ARGARITA Sauza® Premium Original and Strawberry Margarita, 9.95% alc./vol. ©2010 Sauza Tequila Import Company, Deerfield, IL. Cruzan® Mojito, 9.95% Alc./Vol. ©2010 CRUZAN International, Deerfield, IL USA

Hennessy Sidecar

“The Hornets”

CAn CognAC CoCKtAILS Come bACK?

The Revered Brandy Finds etting some of the world’s best-known A Modern Spin bartenders to cooperate on a drink By Jack Robertiello recipe is no small achievement, so for that alone the people in charge of promoting Cognac around the globe should be congratulated. As part of its 2010 Cognac Summit, an “Cognac wasn’t one of the things that I intuitively reached event held in France in late January, the organization brought for on a regular basis when making cocktails,” says Jeffrey Morin dozens of bartenders from the United States, England, Gerganthaler, drink blogger and bartender at Portland, OR’s Clyde many and the rest of Europe to tweak classic cocktail recipes Common. Since then, and after some staff training supplied by originally made with the French brandy. With egos mostly in a Cognac importer, he’s added the first Cognac cocktail to his check, the bar stars (including the UK’s Salvatore Calabrese bar’s menu. and New York’s Sasha Petraske and Julie Reiner) turned out Cognac’s recent downturn can be ascribed mostly to the relaquite tasty twists on the Sazerac, Sidecar and Stinger. tively high prices the spirit commands, as well as its association Whether bars and restaurants will soon start serving the drinks with luxury living and nightlife among an urban demographic. that emerged is unknown, but watching committees of bartenders For the past few years, major Cognac suppliers have been fo(whose profession usually prizes individuality) at their cooperative cusing on establishing extensions selling retail for $500 (Hennessy enterprise was instructive. “The Summit” cocktail, created at the Paradis Extra), $1,500 (Rémy Martin Louis XIII), even $5,000 inaugural meeting in 2008, hasn’t made much impact yet. But the (Courvoisier L’Esprit). Rémy recently unveiled an even rarer ofexercise has gone a ways to correct what has become a problem for fering—Louis XIII Rare Cask—called the most exclusive Cognac the business: the rarity of Cognac-based cocktails.

COGNAC COCKTAILS

Clockwise from right: Mojito VSOP; Mixologist Joseph Biolatto, Le Forum, Paris demonstrates a “Cognac Blazer”; The Rémy Martin Chill Zone campaign promoting new ways to enjoy Cognac by hosting over 300 tastings across the U.S.

wouldn’t use them with more than slight modification in cocktails,” Appel notes. “I think the problem has more to do with the image of Cognac served in a snooty snifter or with Coke in a nightclub— both of those things may have limited Cognac’s access to other markets.”

SKILLS

Even though Cognac is faced with a brace of on-premise challenges, bartenders have found some creative ways around the price problem. Some are incorporating Cognac into drinks via a rinse, swirling a glass with a splash to gain just a hint of grapey florality and acid, a technique especially useful with white spirit-based drinks. Others have stumbled on a variation of the classic punch recipe, which traditionally had both rum and brandy, and have introduced spirit mixing back to their methodology.

go ng promo i

Price often keeps bartenders from developing Cognac-based drinks, but as more than one bartender has recently mentioned, a few popular vodkas and Tequilas are priced at or near Cognac. Indeed, the New York City nightclub Blvd charges the same for a bottle of Hennessy as it does for Grey Goose, and it’s not alone. Cost isn’t an issue for Todd Appel, a fan of Cognac in cocktails, especially when made with fresh fruits like peaches and cherries. Appel tends bar at Chicago’s Crimson Lounge, where the “Crimson Manhattan” is made with Hennessy VS in tribute to the upper Midwest habit of drinking Manhattans and Old-Fashioneds with brandy. “If you’re talking about XO Cognacs, I agree they are expensive, but most people

IXI NG

Forget About the money

on the market, and priced at $15,000 for a 750ML decanter, with only 30 bottles available to the U.S. As America retreats from its recent spending habits, the “halo” value of these expressions seems to be diminishing, however.

Village Whiskey, a casual drinking and dining establishment opened in Philadelphia last year by chef Jose Andres, is a good example. On a menu filled with whiskey cocktails, Andres included the classic Philadelphia Fish House Punch, made with peach brandy, Cognac, dark rum, tea, lemon and spiced sugar. Morganthaler says using Cognac as an accent or modifying spirit works well— the drink on his menu currently is two ounces Dolin vermouth with ¾ ounces Cognac, just enough to provide flavor. “Another good way is to do half and half —let Cognac split the duty with another spirit, like rye; let a less expensive spirit do some of the lifting,” he points out In the summer, Appel steeps fruit in Cognac before adding them to his Sangria: “I want the sangria to have a little more of a kick, and Cognac goes great since it’s grape-based to begin with.”

Cognac is considered by its fans to be the most mixable of spirits—smooth, rich and subtle. But few broad based initiatives have been launched in the past few years to bring consumers or bartenders to Cognac cocktails. There’s been other activity from major brands: Last fall, Courvoisier launched a consumer version of its trade education program, “Le Nez,” in which brand ambassador Stephanie Mills led participants through the aromatic and taste profiles of

COGNAC COCKTAILS

BEAMIXOLOGIST

From Bobby “G” Gleason, Beam Global Master Mixologist Left: “Alexander III”; Below: Julie Reiner of Flatiron Lounge and Clover Club, NYC shakes the “Aloha” from Jarnac

Hot Cocktails ■

Ginger Sting

1 part Courvoisier® VS Cognac 3 parts Ginger Ale Serve in a tall glass with ice, garnish with a slice of orange

■

Side Car

1 part Courvoisier® Exclusif™ Cognac 1 part DeKuyper® Triple sec A Splash of Lemon juice Shake with ice and serve in a martini glass with a sugared rim

Cool Tips ■ Cognac’s heritage as the perfect mixer is picking up momentum as the cocktail culture continues. Try Courvoisier Exclusif in your favorite cocktail instead of vodka. ■ When consumed neat, Cognac is best enjoyed at room temperature. Simply cradling the glass in your hand for a few moments provides more than enough heat to gently raise the cognac to room temperature. ■ Before taking a sip, leave one minute between pouring and drinking—we call this the La Minute Mystique. ■ FUN FACT: Courvoisier has a rich history dating back to the Napoleonic era and is the only house to receive the Prestige de la France, France’s highest award for excellence.

To learn more about Cognac and its mixability, check out www.courvoisier.com Service Provider: Beam Global Spirits & Wine, Inc.

the brand’s different marques at such operations as Brandy Library in New York. Hennessy has been busy backing the launch of Hennessy Black, the brand’s first major new product since 1961. Designed to be “the premium mixed spirit of choice,” the launch was accompanied by cocktail recipes for what is said to be a lighter and fresher expression than standard Hennessy. Rémy Martin recently introduced Rémy Chill in several locations, including the St. Regis in Aspen, CO. The concept is to chill Rémy VSOP to zero degrees, making it a bit smoother and enjoyable for consumers as a sipping drink or in cocktails with fruit juices. The “chill box” dispenses Rémy at 0°F. They’ve also been promoting Rémy 1738 as an apéritif straight up or on the rocks, as well as the “17:38 Speakeasy Sampling” program, encouraging consumers to enjoy Rémy 1738 at 5:38 PM (or 17:38) for “happy hour.” At Camus—the fifth largest producer in the world, and the last independent family-owned house—the style has always been inherently cocktail-friendly, says Cyril Camus: “We really limit the use of oak and use older, less aggressive barrels to achieve more floral, aromatic Cognacs. We want our Cognacs to be crisp and fresh. The trend 15 years ago was toward masculine, dark, heavily-oaked Cognac. Cognac should bring aromatics to a cocktail, not overwhelm the other ingredients.” Making its Cognac even more cocktail-friendly, Camus redesigned their package in 2006, replacing the cork closures on the VS, VSOP and XO with screwcaps which double as one-ounce shot measures. “We wanted to make it easier for bartenders to use our products by getting rid of the

corks, as well as adding the shot measure, which makes cocktail preparation faster and more convenient,” Camus explains.

gettIng An eDuCAtIon Guillaume Lamy, vice president of sales for Cognac Ferrand USA, says bar-to-bar education is the way to make an impact on-premise: “People didn’t really understand what Grand Champagne Cognac is, and these bartenders really do want more knowledge they can share.” Once bartenders know more about the spirit, it’s easier to get them away from selling it only as an after-dinner drink or solely in a snifter. Lamy admits he spends some time working with distributors to get price breaks for key accounts he’s trained, and flies in on short notice to educate a staff, as he did recently for Morganthaler. While Ferrand is still a relatively small Cognac brand in the U.S., its approach seems to be working. Last year, Lamy says, the brand grew 58% on-premise, 11% off, at a time when Cognac was generally suffering. Just another sign that despite the struggles in the restaurant industry, bartenders can still be a spirit’s best friend. ■

E H T R O F T N THE HU

E S A C T LOS HIDEACASE.COM

Canadian Club is searchingusforon 8 fearless adventurers to join . Did you the expedition of a lifetime o, know that over 40 years agde A Case CC started the original Hi were contest where 25 cases of CCations hidden in extraordinary locre found across the globe? Most we but 9 cases still remain! ®

Be sure to tell your consumers about this exciting contest. $100K and the Trip of a Lifetime could be theirs by joining the hunt. NO PURCHASE NECESSARY. MUST BE 21+ TO ENTER. VOID WHERE PROHIBITED. SEE HIDEACASE.COM FOR COMPLETE RULES. ® Canadian Club® Blended Canadian Whisky, 21%-50% alc./vol. ©2010 Canadian Club Import Company, Deerfield, IL.

speakeasy now have single-barrel releases and bourbons with different age statements; it is a category with great tradition and heritage, and now even quite dynamic in its offerings.

B : Where do you think the future opportunities lie for bourbon? MS: The prospects for the future are extraordinary, particularly outside the U.S. Bourbon is the number one distilled spirit in New Zealand—proof of just how broad ranging the appeal of this spirit is! Also encouraging is that young people have adopted bourbon as their whiskey of choice. All that said, of course, if you stay at any hotel in Paris, and ask for whiskey and water, you get Scotch. But that’s the good news: if we can begin to change that, just think of the opportunities for growth we could create.

on consumers

Max Shapira N

President, Heaven Hill Distilleries, Inc.

B : How does the economy factor into the consumer’s desire to experiment and taste quality products?

Heaven Hill president Max Shapira discusses the future of bourbon, flavors and the changing patterns in consumer behavior.

Max Shapira: Bourbon is a stand out category—both domestically and internationally—for several reasons. First, there is the continued interest in the cocktail culture, and a growing group of younger

the Beverage network: The bourbon category is quite robust, having fared the recession better than many other categories. Why do you think this is the case?

on bourbon

consumers that want to taste products they haven’t experienced before, which has benefited American whiskey. With the revival of drinks like the Old Fashioned and the Manhattan, bourbon has once again become a fixture on the back bar of every major on-premise establishment, and that was absolutely not the case even a decade ago. In many ways bourbon’s growth has been an industry-led phenomenon: After shooting themselves in the foot for 50-odd years, suppliers finally got serious a few years ago and started investing in innovation and creativity. We

MS: The consumer today is looking for great tasting, unique and out-of-the-ordinary products. But they have also had their psyche badly damaged. For the next several years, consumers will likely continue with the buying habits of the recession, not unlike my father’s generation who went through the Depression. This will benefit many of the brands in our portfolio. For example, Evan Williams answers this call very well: It has a great package, a terrific taste profile and a very reasonable price. Growth on this brand is accelerating—Nielsen numbers show the brand is up doubledigits—and it’s the second-largest selling Kentucky bourbon in the U.S. today. B : Another product with those same characteristics would be Lunazul, your 100% agave Tequila.

A conversation With Industry Professionals MS: Exactly. The 100% agave tequila category has seen a huge number of new product introductions, most with beautiful packages and $50 price tags, all with the goal of being the next Patrón. We wanted to develop an outstanding product at a reasonable price point to give consumers the opportunity to experience the 100% agave category. We positioned Lunazul slightly above the leading U.S. mixto product hoping that for a couple of dollars more—rather than $30 more—the consumer who is interested in trying a 100% agave Tequila will upgrade. It is still in the premium segment, but represents great value in that segment. It has been about 18 months since our launch and so far, we are very pleased with the way consumers have responded. tBn: What do you see for the superpremium segment of the business, particularly in the Tequila category you referenced? Will they be replaced by value brands? MS: I think we will see a large shake-out of many premium and ultra-premium brands that have been introduced in the last several years. Tequila and vodka are the two primary candidates. That said, I hate the word value. I think it gives consumers the wrong idea—people think it means cheap or inferior, but I think there can be ‘value’ at every tier.

on FLAVors tBn: Looking at your portfolio and many of your new releases, it’s clear you’re committed to the ﬂavor category. Where do you see that headed? MS: Flavors have been driving the industry for the last decade, whether it’s rum or vodka. Now we’re seeing this move into the bourbon category, with products like our own Evan Williams Honey—which just rolled out—as well as Jim Beam’s Red Stag, which is performing well. It is really helping bring new consumers into the category.

Spiced rum is another flavor segment we see growing. We have watched this category for a long time, and wanted to add something new and different, so we recently launched Blackheart, a high-proof spiced rum. tBn: Speaking of ﬂavors, Heaven Hill has several high-proﬁle cordial products, which are outperforming the suffering cordial category. How are they doing that? MS: There are really two different categories within the cordial world. The traditional category—which includes entire lines of products like sloe gin, rootbeer schnapps or blackberry brandy—has lost tremendous market share to flavored vodkas. Then there are products

“YounGer consumers Are GeTTInG THeIr FLAVors In neW WAYs; THeY Are LooKInG For ProDucTs WITH ImAGerY ALL To THemseLVes.”

like Pama or Hpnotiq which are standalone brands. Both take their cue from the cocktail culture, and are on the cutting edge of the way consumers are drinking today. Younger consumers are getting their flavors in new ways; they are looking for products with imagery all to themselves. tBn: On the contrary, the rye whisky category—a traditional category which had all but disappeared—is on ﬁre right now. How do you explain the renewed interest? MS: This is a case of what was old is new again. Rye was the original American whiskey. The famous whiskey rebellion during George Washington’s presidential term was led by the rye whiskey distillers of Pennsylvania. Rye has a spicy, sharp taste profile, compared with bourbon, and it’s wonderful in cocktails, which is why the mixology community began to embrace it. We find the flavor profile comes through best at a higher proof, so we distill our Rittenhouse Rye to 100-proof. Until about four years ago, no one was paying attention to rye, but today the growth is incredible, and it’s not just an on-premise phenomenon, which is interesting.

on DIVersITY tBn: What advice do you have for retailers right now? MS: Be open-minded about having a broad range of different types of products in your store. You can’t do business from an empty wagon. I think retailers have done a great job of answering consumer demand; the bourbon category is just one example. Following the model of the way the retail community helped build the single malt Scotch category, I see retailers stocking a dozen or more different expressions. They are allocating more shelf facings to different bourbon expressions, and consumers are reacting.

The new portfolio look of DEWAR’S® Blended Scotch Whiskies features the same award-winning Scotch with an authentically modern style that embodies the design, artistry and craftsmanship that’s made DEWAR’S the # 1 selling premium Scotch in the U.S.* From the added wave inspired by the rounded liquid to the gold icons representing the brand’s many awards, the new DEWAR’S packaging is so extraordinary, it deserves to be shot by worldrenowned photographer Danny Clinch. Discover more at dewars.com.

DANNY CLINCH PHOTOGRAPHER

*Adam’s Liquor Handbook 2009 ENJOY RESPONSIBLY.

BRANDp ofile r

Timing is Everything Crane Lake’s Steep Values and Breadth of Offerings Appeal to Budget-Minded Consumers i

in 2009. “These are everyday prices for good, quality wines,” says Leonard. “We are trying to connect with the consumer via the retailer, and they have voted in favor of our lower prices.”

Retailers have some leverage when it comes to shelf talkers, too. Crane Lake has been scooping up awards, including the 2010 Impact Hot Brand Award and Gold Medals for its 2007 Malbec and 2009 Cabernet Sauvignon at the 2010 Jerry D. Mead New World International Wine Competition. l

though economy i at the core of the company' tream ined bu ine mode , rane Lake u e top grade cork and ightweight g a , a oppo ed to nonbiodegradab e p a tic .

Strategy to Succeed In this environment, oversupply, often negatively referred to as grape glut, gets positively redefined by Crane Lake. “It really means the winemaker doesn’t have to take any marginal wines,” Leonard points out. “He has better choices and fair prices.” A new Crane Lake ad, with the headline: “Watch Sales Soar With Crane Lake” calls out its new Pinot Noir. Currently, Crane Lake offers 19 different wines in its portfolio, including Chardonnay, Pinot Grigio, Merlot and Cabernet Sauvignon, each of which sold over 100,000 cases

forward hinking There is another reason retailers are talking about Crane Lake, and it’s because of the company’s forward-thinking approach to green design. Their new Crane Lake [Down Under] light weight glass bottles are designed to impact positively on the environment. In addition to being recyclable, the lighter weight also helps to reduce the number of truckloads required for delivery. For every million cases of these lighter bottles ordered, almost 200 less trucks have to go out on the road. Even more interesting is Crane Lake’s implementation of biodegradable wine corks. Although economy is at the core of the company’s streamlined business model, Crane Lake uses an easy-to-use top grade cork that costs 10 cents, as opposed to the 4 cent, non biodegradable plastic corks favored by competitors that are often difficult to place back into opened bottles of wine to boot. “We are one of a few wines in our price range that don’t use plastic. If we did, we could save over $4 million a year,” Leonard says. The Crane Lake cork has a rounder shape on the lower half, which means maneuvering it back into bottles is simple. The packaging is also consumer-friendly, because the capsule has a pull-tab that does away with the necessity of using a knife, typically true of most capsules. Just consider it another innovative approach to value. n T

ast year, Crane Lake Cellars in Napa, CA, released the 2008 [Down Under] by Crane Lake, a super-value Chardonnay made with grapes from Southeastern Australia, and packaged in a lightweight glass bottle with natural cork and recycled paper labels. This quality/price ratio is the hallmark of Crane Lake, part of Fred Franzia’s value-oriented Bronco Wine Company portfolio. “These days, customers are not seeking out $60 wines for an evening at home,” says Daniel J. Leonard, Crane Lake Cellars’ president. “They want a wine that they can drink every night— something accessible and meant to enjoy with friends over dinner without feeling guilty about spending too much money. Crane Lake’s price points provide that while at the same time over-delivering on quality.”

NEWPRODUCTS&PROMOS

BEEFEATER GIN INTRODUCES LIMITED EDITION SUMMER GIN

PANTHER WINE CO. INTRODUCES COTTONWOOD CREEK CELLARS

BELVEDERE LAUNCHES PINK GRAPEFRUIT VODKA

Beefeater Gin has released a limited edition Summer Gin in a lighter style specially designed to reflect the more relaxed style of summer drinking. The Summer Gin was created with three special botanicals: hibiscus, black currant and elderflower, and is available all summer. SRP: $19.99 www.beefeatergin.com

CottonWood Creek Cellars, a new value wine brand made from 100% certified organic grapes, was released on the 40th anniversary of Earth Day. This first release—a white table wine with fruit aromas and floral notes—is packaged in a lightweight bottle with natural recyclable cork and recycled paper wine labels. SRP: $6.99 www.cottonwoodcreekcellars.com or call (707) 265-4060

Belvedere Vodka is introducing a new addition to its successful vodka portfolio: Belvedere Pink Grapefruit. This vodka is distilled from whole Argentinean pink grapefruits then combined with fresh ginger and Spanish spring lemons to create a citrusy finish. SRP: $29.99. www.belvederevodka.com/ collection/belevedere-pink-grapefruit

ARDBEG CORRYVRECKAN NEW FROM SCOTLAND

DALMORE INTRODUCES THE DALMORE 18 YEAR OLD

Ardbeg has recently released Ardbeg Corryvreckan, named for Europe’s largest and the world’s second largest whirlpool, which lies beside the Hebridean isles of Islay and Jura off Scotland’s west coast. This Scotch whisky is matured in French oak, with sweet black fruit notes complementing a tantalizing spicy character. SRP: $84.99. www.ardbeg.com

The Dalmore 18 year old is the newest addition to the Dalmore portfolio. This recent winner of a double gold medal at the 2010 San Francisco World Spirits Competition is blended in imitable Dalmore style, aged for 14 years in American oak and finished in sherry casks, with chocolate, clove and citrus notes. SRP: $150. www.thedalmore.com

CLASSIC MARKETING COMPANY INTRODUCES PASSIONNE DI FIORE PROSECCO Classic Marketing Company adds Passionné di Fiore Prosecco to its lineup, including Fragoli wild strawberry liqueur. This sparkler is a great addition for summer and pairs well in cocktail recipes with Fragoli. Dry and lemony, this Prosecco is made from 100% Prosecco grapes from the northern Veneto region. SRP: $12.99. www.passionne.biz

June 2010 Bay state beverage guide 35

NEWPRODUCTS&PROMOS

PSAGOT EDOM 2007 SHOWCASES ISRAELI WINEMAKING

LAURIER AND NAPA RIDGE WIN GOLD*

ARTESA INTRODUCES ELEMENTS BY ARTESA

Psagot Edom 2007 is a blend of 75% Cabernet Sauvignon and 25% Merlot varietals aged for 14 months in Judean hillside caves that date to Biblical times. This wine won a Gold Medal at the Terravino Wine & Spirits Challenge, and has notes of vanilla, cherry and black currant, along with silky tannins and a robust finish. SRP: $31.99 www.psagotwines.com

Laurier’s 2007 Los Carneros Pinot Noir and Napa Ridge’s 2008 Napa Valley Chardonnay won gold medals at the 2010 Dallas Morning News Wine Competition. Marketed by Antares Wine Co., Napa, CA; www.antareswine.com or call 707.265.4050

Artesa, known for small-lot, ultra-premium wines, has introduced Elements by Artesa, a portfolio of three red blends. The debut features the 2006 Elements of Artesa Cabernet Sauvignon, 2006 Elements of Artesa Merlot and 2006 Elements of Artesa Red Wine, all made with grapes grown on prime Napa and Sonoma sub-appelations. SRP: $19.99. www.artesawinery.com

SKYY SPIRITS REINTRODUCES ESPOLÒN TO U.S. MARKET

HOUSE JAM INTRODUCES NEW VARIETALS

SLANE CASTLE CELEBRATES NEW YORK WHISKEY LAUNCH

Skyy Spirits is bringing the super-premium Espolòn back to the U.S. This 100% Weber Blue Agave Tequila has a new look, but the same award-winning liquid. Two marques are available in select U.S. markets: Espolòn Tequila Blanco and Espolòn Tequila Reposado. The new decorative labels pay tribute to Mexican artists and capture Mexico’s authentic spirit. SRP: $24.99. www.tequilaespolon.com

House Jam introduces two new varietals to its wine lineup, hj Cabernet and hj Chardonnay. Both of these wines are light, fruity and fun. These are wines that are perfectly designed for summer enjoyment. SRP: $8.99. www.housejamwine.com

Slane Castle Irish Whiskey recently debuted in New York. The whiskey is carefully selected by three generations of the Conyngham family and is a balanced blend of malt and grain Irish whiskey, aged and matured in American oak bourbon barrels. The malt content and barrels give the whiskey a depth of character and subtle sweetness on the palate. SRP: $28. www.slanecastle.ie

36 Bay state beverage guide June 2010

* Editor’s Note: In last month’s New Product & Promos, we inadvertently referred to the Laurier Los Carneros Pinot Noir as Domaine Laurier

INDUSTRYEVENT

Viva Las Vegas!

WSWA’s 67th Convention Boasts Increased Attendance and Positive Change

Photographs by Dave Smith (http://davesmithphotographer.com)

early 2,000 Wine & Spirits Wholesalers of America (WSWA) members and wine & spirits suppliers were in attendance at the Annual Convention & Exposition, held in Las Vegas, April 6th-8th. After Opening General Session remarks from keynote speaker Sarah Palin, WSWA president Craig Wolf introduced John Baker from National Wine & Spirits in Indiana, who serves as the current chairman of WSWA, who used his speech to remind people that “we are an industry that provides 800,000 jobs, and keeps the $137 billion American wine & spirits industry operating at peak performance.” Citing the many challenges the industry faces, he detailed some of the achievements and setbacks of the prior year, and listed goals for the future. In the closing session Craig Wolf addressed attendees, advising guests to embrace positive change, and social media guru Erik Qualman expressed the importance of social media communication. From the supplier side, Robert Sands, president and CEO of Constellation

Brands, spoke about the changes taking place at his company, as well as the industry as a whole: “In the past decade, our strategy at Constellation was centered on building depth and breadth in our portfolio, and we became well-known for making acquisitions. Now that we have the well-defined premium portfolio we set out to build, our focus is on creating profitable organic growth.” He also discussed the ways that suppliers and wholesalers must work together: “Consolidation can not become an excuse for each tier of the system to try to leverage the other.” Ray Herrmann, chairman of The Charmer Sunbelt Group in New York, was presented with the WSWA Lifetime Achievement Award. “Our honoree, recognized for his integrity, and as one of the industry’s true gentlemen, was instrumental in creating a culture of total transparency at the firm he currently heads,” said Wolf. “This was all part of his business philosophy and goal of becoming the distributor of choice for his suppliers and customers.”

Jim Bareuther, executive VP for global business development at BrownForman, was awarded the WSWA Sidney Frank Award, and a $10,000 contribution will be made to Share Our Strength on his behalf. An exciting addition to this year’s convention was the mixology competition. Mixologists Marcos Tello, Jim Romdall, Jonathan Pogash, Aidan Demarest, Joe Brooke and Jeffrey Morgenthaler selected three cocktails from over 30, which were then entered into a final competition during the WSWA Taste of the Industry, where attendees voted Leblon Cachaça’s “Leblon Brazillionaire” the winner. Next year’s WSWA Convention will take place on April 10th-13th at Florida’s Orlando Grande Lakes Resort. ■ 1. Craig Wolf, WSWA President and CEO 2. John Baker, WSWA Chairman 3. Constellation’s Robert Sands 4. Sarah Palin 5. Mixology Competition 6. Craig Wolf with Lifetime Leadership Award winner Ray Herrmann, The Charmer Sunbelt Group 7. Sidney Frank Award winner Jim Bareuther, Brown-Forman

June 2010 Bay state beverage guide 37

On-premiseperspective

POS Systems Beverage Journal has built integration to the following POS systems to varying degrees. The codes with each vendor correspond with the integration points noted below: AIM

➊➍➎

Atlantic systems, inc. (ASI - Spirits 2000)

➊➋➌ ➍➎ ➊ ➍➎ ➌➍➎ ➊➍

CAM Data COMCASH computer perfect Creative Information System innovative computer solutions (ICS - VISION)

➊➋➌ ➍➎

KBA SPIRITS (Ken buch) LSTAR Magstar MERCHANT SOFTWARE -LiquorPOS MICROBIZ Microsoft retail management system (RMS) PERVASIVE

➌ ➍ ➊➋➌ ➍➎ ➊➌➍ ➊ ➊➌➍ ➎

Smart LIQUICK

➊ ➊➋ ➊ ➊➋ ➍ ➊➍

tiger Pos

➌➍

WINE SOFT

➊

POS Anywhere POS-IM QUICKBOOKS RCS

➊ Website inventory updates ➋ Web order importing ➌ Price file integration ➍ eOrders sales history ➎ eOrders purchase orders For information about any of these POS companies, please call 201-489-5888, ext 231

Learn about Selling Wine Online Sign up for our next Webinar on June 15th at 10am EST. See how a store uses the BMG eCommerce system to maintain and promote products on a website. For more information visit: bevnetwork.com/retailweb

Meet Your Candidate

Take the Opportunity to Get Industry Messages to First Time Candidates By Peter christie

his election cycle is not “politics as usual.” Of the 200 members in the Massachusetts state legislature, we could easily see between 50 and 65 seats turn over this year. I think a lot of this had to do with Scott Brown winning the U.S. Senate race against Attorney General Coakley. Six months before the election, none of the pundits would have given him a chance of winning. But he ran on his principles and he ran hard. The electorate seemed unhappy with the status quo and wanted real change. His centrist position was appealing to voters on both sides of the aisles and to the many independents in our state. This win has had resounding effects throughout the Commonwealth and, indeed, throughout the country. In Massachusetts, there are many firsttime candidates who have been positively motivated and influenced by the Brown win, and are running hard. There are also many of our elected leaders who have decided not to seek re-election and there is an incredible ripple effect of open seats as a result. What does all this mean to you? What does it mean to our industry? In my opinion, you and I have never had a better opportunity to get our messages heard. These new candidates are anxious to learn about your industry and your business. They are uninfluenced by the forces that presently exist and are

open minded to learn more. What can you do? The answer is simple: Get Involved! You should learn about the various candidates and their positions that you will be asked to support in November. Meet with them and tell them about your concerns. Tell them about misinformation and give them facts and figures. Let them know how your business operates, the people that you employ and the challenges that you face. The MRA is developing a few simple surveys that we will be using to poll various candidates on issues that are important to us. We will be sharing the results with our members and posting them on our web site. We encourage you to use this information as part of your decision making process. In closing, you have an opportunity of editing the “job descriptions” of your elected leaders. You should make sure that your wishes are addressed. If they are, try to support them to the best of your ability. If they are not, you would be better off seeking someone who does support your positions. The power of the ballot box has never been stronger. Please don’t waste it. Real change is possible; Just ask U.S. Senator Scott Brown! n

38 Bay state beverage guide June 2010

Peter Christie is a veteran of the restaurant industry. He is currently president and CEO of the Massachusetts Restaurant Association, a position that he has held for the past 20 years. Prior to this, he owned and operated three restaurants with his family.

VIEWPOINT

Redefine Independent Contract Law

Changes to the Independent Contractor Law Continue to Threaten Businesses in the Commonwealth By jon b. hurst

AM continues to work with a coalition of partners trying to amend a six year old law that in name, was intended to further regulate public construction, but in practice, brought chaos and confusion to the employer community as a whole. At issue is the use of independent contractors. According to an advisory issued by the Attorney General's office, the changes to the Independent Contractor Law “excludes far more workers from independent contractor status than are disqualified under the traditional state and federal law tests, including the 20 Factor Test set forth in the Internal Revenue Service (“IRS”) Revenue Ruling 87-41, the Fair Labor Standards Act (“FLSA”) and the Massachusetts common law.” RAM has advocated in support of H.1844 which redefines the circumstances under which an individual is considered an independent contractor. We continue to work with the committee and coalition on this important legislation. Since the change in the law took place as part of a public construction reform, there was no debate or proper deliberation as to the widespread impact this change would have on every industry and every employer in the Commonwealth. The Legislature’s intent may

have been to address misclassification issues where employees were improperly being treated as independent contractors, however, the far reaching application of the new law has brought about significant ramifications on honest law abiding employers who operate under legitimate business models.

Virtually every business in Massachusetts that previously hired independent contractors and every individual that worked as an independent contactor have been negatively affected by the change in the law Virtually every business in Massachusetts that previously hired independent contractors and every individual that worked as an independent contactor have been negatively affected by the change in the law. From the franchisee owner who operates independently from the franchisor, to the interior decorator hired to design a store layout, to the maintenance company hired to clean or repair equipment in a store. Many of our members, especially the small business owners, rely upon the expertise of indepen-

dent contractors and the flexibility of hiring workers on an as-needed basis. Particularly troubling to franchises operating in Massachusetts is the recent decision granting summary judgment to the plaintiffs in Awuah v. Coverall North America, Inc. In his decision, Judge William G. Young asserts that there is no distinction between a franchisor’s business and that of its franchisees. The standard franchise model has allowed millions of American’s to own their business. Entrepreneurs make a conscious decision to not be someone’s employee. The decision based on the 2004 changes to the law clearly threatens the franchise model. It is time we all work together to send a message to Beacon Hill – please fix the mistake that stands to threaten every honest business owner in Massachusetts. Now is the time to encourage growth and employment opportunities. Please stop punishing hard working employers in a misguided attempted to take down a few “bad actors”. n

Jon Hurst is president of the Retailers Association of Massachusetts (RAM). As the chief executive officer of the 2,000 member statewide trade association, Hurst manages the staff, business affairs, member services, public affairs and governmental affairs of the organization. He also serves as chairman of the board of directors of the Massachusetts Retail Merchants Workers Compensation Group, Inc., a self insurance group organized by RAM in 1991.

June 2010 Bay state beverage guide 39

INSIDER'SVIEW Around the Nation Sen. Kerry introduces bill that would ease brewers tax burden

Hoping to give the country’s 1,500 small beer makers a tax break, Sen. John Kerry introduced a bill to the Senate recently that would reduce the excise tax for small breweries from $7 to $3.50 per barrel for the first 60,000 barrels of beer produced each year. For every additional barrel up to 2 million, the bill would lower the excise tax from $18 to $16. Massachusetts is home to 40 small beer manufacturers including Sam Adams, the country’s largest small brewery. Republican Senators Mike Crapo of Idaho and Olympia Snowe of Maine and Democratic Sen. Ron Wyden of Oregon are co-sponsoring the bill. Reps. Richard Neal, D-Mass., and Kevin Brady, RTexas, introduced the bill in the House in December. The small brewer tax rate hasn’t been updated since 1976. Bottlers fight push for federal water tax

Congress has long recognized the problem, that the country faces crumbling water systems in many cities but lawmakers have struggled to find a funding source as deficits balloon. But the catastrophic Massachusetts Water Resources Authority rupture in Weston on May 1, which affected 2 million people in Greater Boston for three days, could reshape the debate in Washington by highlighting the urgent need to find new ways to pay for improved pipelines, pumping stations, and backup systems. As a result, Rep. Blumenauer (D-Oregon), along with co-sponsor Rep. Bill Delahunt (DQuincy), introduced legislation recently that would raise $10 billion annually — including $3.5 billion for drinking water systems — through a tax on bottlers and other water-dependent industries. The efforts to spend tens of billions of dollars to fix the nation’s aging water systems is facing stiff opposition from soda and bottled water companies say-

40 Bay state beverage guide June 2010

ing the cost of upgrading such components as reservoirs and aqueducts should be shared more broadly. The American Beverage Association, which represents big soft drink companies, said they are opposed to the legislation. The proposed tax would exempt juice, milk, and alcoholic beverages. Representative John F. Tierney, Democrat of Salem, also joined Delahunt as a cosponsor of the bill.

Karyn Polito and Jason Lee

Around the Region NH: Senate considers liquor store privatization

New Hampshire state senators are considering leasing the state’s liquor operation to a private entity as a potential way of generating a revenue windfall for the next budget cycle and continued income in subsequent years. State Senate President Sylvia Larsen, D-Concord, confirmed recently that “a private entity” she declined to name has expressed an interest in having elected officials consider following the lead of Maine, which leased its operation to the Martignetti Companies, under the name of the Maine Beverage Company, in 2004.

Around the STATE MA: Polito seeks industry support in bid for State Treasurer

In her bid to become State Treasurer, State Representative Karyn Polito (R – Shrewsbury) met with members of the Massachusetts Package Store Association recently to better understand their business issues and regulatory concerns. The treasurer, one of the state’s six constitutional officers, oversees the state’s Alcohol Beverage Control Commission (ABCC) as well as state investments, the public employee pension fund, the Lottery, and the school construction authority. A long-time advocate for small business, Polito is a graduate of Boston College and New England School of Law. She spent three years as a Shrewsbury selectwoman and a year on the State Lottery Commission before running for the

Legislature. (Polito is pictured here with Jason Lee, owner of South Liquor Mart in Plainville, MA and current chairman of MassPack’s Legislative committee.) MA: Clerks Busted In Undercover Lottery Sting

WBZ's Chief Correspondent Joe Shortsleeve is at it again. Shortsleeve went along as state lottery investigators put their own agents to the test in Framingham and Waltham recently. One 16year-old who has been working undercover for the Massachusetts State Lottery Commission said it's "pretty easy" to buy lottery tickets. In addition to buying everyday food items, the 16 year-old checks to see if store clerks break the law by selling him a few lottery tickets. The lottery tests about 70 to 80 agents each year. and estimate are that anywhere from ten to twenty percent fail. If a store owner fails then it's up to the state lottery commission to dish out a punishment ranging from suspension to loss of license.

Around TOWN Quincy: Nightclub Under Fire after Shootings

The Quincy police chief wants the city’s licensing board to take action against the owner of a Quincy night club, outside of which two Boston men were shot in early May. Chief Paul Keenan said that authorities are particularly concerned about an entertainment company that the owners of Club 58 on Ross Way, hired to promote an event the night of the shooting.

NEWSFRONT CORPORATE WINE AND SPIRITS GUILD OF AMERICA MEETS IN PORTLAND

The Wine and Spirits Guild of America will hold its 2010 summer meeting on July 17th at The Nines Hotel in Portland, OR. The Guild is an invitation-only organization with approximately 43 members representing 500 stores and $2 billion in sales. For suppliers and others in the trade who wish to make a presentation, please contact Barbra Owen at bowen@pkm. com. For more information, please visit www.wineandspiritsguild.com. THE CHARMER SUNBELT GROUP CREATES PSA FOR PARENTS THIS PROM SEASON

The Charmer Sunbelt Group has launched a comprehensive schedule of public service announcements to raise awareness of the dangers of underage drinking and drunk driving. In New York, these public service announcements are airing during baseball games on Yankees Radio Network stations and CBS. Senator Charles Schumer joined Charles Merinoff, CEO and vice chairman of The Charmer Sunbelt Group, to deliver a message urging parental involvement in children's prom and graduation activities. This PSA was made possible through support from Empire Merchants and Empire Merchants North. BEAM GLOBAL AND NATIONAL CENTER FOR DWI COURTS HONOR TEXAS LAWMAKERS

Beam Global Spirits & Wine, leaders of promoting social responsibility, and the National Center for DWI Courts, awarded Rep. Jerry Madden and Sen. Kel Seliger the NCDC Community Safety Award for their work to pass House Bill 530 in Texas. The bill requires a DWI Court in all counties with 200,000 people or more, and passed unanimously in both the state House and Senate, being signed into law in June 2007.

E & J GALLO HONORED WITH DALE CARNEGIE TRAINING LEADERSHIP AWARD

E & J Gallo, one of the world’s largest wine producers, was recently honored with the Dale Carnegie Training Leadership Award, which recognizes industry leaders committed to employee development and training. Gallo is the first honoree in the wine & spirits category to be selected. GEMINI ACQUIRES RIGHTS TO MARGARITAVILLE

Gemini Spirits & Wine has acquired worldwide rights to produce, distribute and market spirits brands from Margaritaville Holdings. The Margaritaville portfolio includes Tequila, flavored Tequila, rum, ready-to-drink Margaritas and Mojitos. The sales and marketing team at Gemini has taken over responsibilities from the Margaritaville spirits team, and shortly production and administrative duties will transfer from Luxco to the Sazerac company, which wholly owns the autonomous subsidiary, Gemini Spirits & Wine. GRIFFIN GROUP ESTABLISHES ANCHOR BREWERS & DISTILLERS

The Griffin Group, the investment and consultant company focused on beverage alcohol brands, has announced its acquisition of Anchor Brewing Company, including its award-winning portfolio of craft beers and artisan spirits. Through this acquisition, The Griffin Group will also assume control of Old Potrero Whiskey, Juniper Gin and Genevieve Gin.

SPIRITS THE GLENLIVET OFFERS SPECIAL GIFT PACKAGE FOR FATHER’S DAY

The Glenlivet has released a special gift package in time for Father's Day: a bottle of The Glenlivet 12 Year Old and two branded rock glasses in a distinguished box that has the look of a Scottish Tartan. The Glenlivet 12 Year Old Scotch Whisky has a delicate nose with

summer-like florals and a hint of exotic pineapple. Starting this month, the pack is widely available for $39.99. CAPTAIN MORGAN LIMEBITE DEBUTS ZESTY NEW ADVERTISING CAMPAIGN

Captain Morgan has debuted a new comedic advertising campaign for Captain Morgan Lime Bite, the newest addition to the Captain Morgan family, with a silver-spiced lime flavor. The campaign, “Delicious Pours,” developed by Grey New York, features three 15-second spots: “Cry for Help,” Deliciouser” and “Sleepy”, scheduled for heavy rotation during sports programming on ESPN, TBS and TNT. The spots will also have a digital presence on Yahoo! Sports and as an NBA playoff sponsor. TEQUILA PARTIDA CELEBRATES 200TH ANNIVERSARY OF MEXICAN INDEPENDENCE

Tequila Partida is hosting a Facebook contest for fans in celebration of the 200th anniversary of Mexican independence. Contestants are entered after liking the Partida page on Facebook, and sending an entry email. The contest is running through August with two randomly selected fans chosen each month in five major markets to receive two passes to this year’s September 15th celebrations at select restaurants in New York, Los Angeles, San Francisco, Miami and Dallas. ADMIRAL IMPORTS APPOINTED EXCLUSIVE IMPORTER FOR PISA LIQUEUR

Admiral Imports has announced an agreement to become the exclusive U.S. importer for Pisa liqueur. Pisa Liqueur invokes the flavors of almonds, hazelnuts and pistachios, which have grown around Pisa, Italy for centuries. The distinctive bottle leans like the famous Tower of Pisa. Pisa Liqueur has recently changed ownership, and is now part of the newly formed Liqueur Pisa International BV of the Netherlands.

June 2010 Bay state beverage guide 41

AROUNDTOWN

Blanchards HOLDS Spring Grand Wine Tasting 1

On April 28th, the recent Spring Grand Wine Tasting at Blanchards in West Roxbury gave their customers a great opportunity to taste and learn about many different wines in a fun and intimate setting. From the history, to the climate right down to the vintage, Blanchards Spring Grand Wine Tasting gave guests the perfect chance to discover some of Napa Valley’s favorite’s including Silver Oak, Caymus, Duckhorn, Shafer, Stags Leap and many more highly rated and allocated wines.

1. Laurette Cossaboon, Charles River Wine Company 2. Nick Cobb, Vineyard Road 3. Kevin Trainor and Kevin McCalla of Blanchards Wine & Spirits 4. Debra Pecce, Masciarelli Wines 5. Dave Button, M.S. Walker 6. Steven Chevalier, deal Wine & Spirits

6 Drew Bledsoe Back in Town to Promote His Doubleback Winery

42 Bay state beverage guide June 2010

Former Pats QB Drew Bledsoe was back in town recently to pitch his new 2007 Cabernet Sauvignon, the inaugural harvest from his Doubleback winery in Walla Walla, Wash. Along with their own team from his distributor partners at Carolina Wine & Spirits, Bledsoe and wife Maura, held a private showing of his new wine at Tastings at Patriot Place before heading out to the retail trade. Even former teammates Tom Brady, Kevin Faulk, and Max Lane showed up to check out the fine wine. 1. The Bledsoe’s (center) pictured with Martignetti Companies’ Carolina Wine & Spirits team. From left: Jay Harmon; Sue Nordberg; Mary Fowler; Ronnie Pollara; Shawn Horgan; Jim Taker; Chris Swinning; Terry Fitzgerald; Drew and Maura Bledsoe; Peter Colettis; Dan Sheils; Aimee Cronin; Todd O'Connell; Nick Bourke; Dexter Lawson; Frank Bomba; Ken Ochs; and Brian Keeping 2. Patti Martin, Tastings, Foxboro; Drew Bledsoe; Maura Bledsoe; and Bill Martin, Tastings, Foxboro 3. Nick Bourke, Carolina W&S; Drew Bledsoe, Doubleback

aroundtown BOKX 109 American Prime Wine Dinner featuring Newton Vineyards On April 30th, BOKX 109 American Prime hosted an evening of exceptional wines from Napa Valley’s acclaimed Newton Vineyards. The event included some wonderful culinary creations by Executive Chef Evan Percoco while guests also had the opportunity to meet and dine with Dr. Su Newton, founder of Newton Vineyard.

1. Dr. Su Hua Newton, Founder of Newton Vineyard; Davide Crusoe, BOKX 109 American Prime; Meghan Agnew, Daily Candy; and her husband Dan Tobin 2. Lori Percoco; Tarry Hrovatin, Hotel Indigo; Todd Hall; and Vanessa Percoco

Oregon Wine Invasion at Blue Ginger On May 13th, at Ming Tsai’s Blue Ginger in Wellesley, MA, five Oregonian wineries came together to showcase some of the finest wines from the great Northwest. In addition to their commitment to quality and regional expression, the wineries including Elk Cove Vineyards, Andrew Rich Winery, Montinore Vineyards, Argyle Winery, and Domaine Drouhin Oregon are among the most dedicated to the environment. Along with many senior representatives from Carolina Wine & Spirits, invited guests couldn’t have asked for a better experience.

1. Aimee Cronin, Martignetti Companies with wine blogger Bob Dwyer, Wellesley Wine Press 2. Kirk Avedisian, Jackson’s Omni Foods; Chris Swinning, Carolina Wine & Spirits; and Suren Avedisian, Crushed Grapes & More 3. Ming Tsai, Blue Ginger with Gaetano Michael Taranto, Nine Acre Wines and Tom Taranto, Nine Acre Wines 4. Matt Stein, Carolina Wine & Spirits

“Hoppy Hour” with Dogfish Head Craft Beer at Morton’s The Steakhouse in Back Bay On May 12th, Morton’s The Steakhouse in Back Bay welcomed Boston beer enthusiasts to sample offerings from Dogfish Head Craft Brewery, the celebrated craft brewery based in Milton, Delaware. Guests enjoyed four carefully crafted Dogfish Head beers at Morton’s including Midas Touch IPA, Raison and Palo. Each beer was paired with a delightful selection of fine cheeses, alongside other signature Morton’s hors d’oeuvres.

1. Representing Marlo Marketing & Communications, the organizers of the successful event were: Amy Sutton; Haley Rose; and Abby Steinbock 2. Dogfish Head fans Twiggy; Brian; and Gregg

June 2010 Bay state beverage guide 43

BEERTRENDS

Spaced Out for Beer By Michael Kuderka

he basics of retail space are simple: clearly define the size and location of each department, offer obstacle free traffic flow, maximize exposure and access to products, and create a convenient, comfortable shopping environment for customers. When you combine the boom in craft beer with 30 year old retail space designed to sell wine and liquor, many stores resort to ignoring all the basic rules of retailing. Instead they opt to retro-fit their floor space in a scramble to capitalize on the continuous growth of the craft beer segment (sales rose 7.2% in 2009). Retailers who carefully planned out their wine space 20 years ago, investing in staff training and carefully labeling all of their shelving, are erecting craft beer racks wherever space will allow.

Don’t do this to your beer We visit a number of retail stores across the country and see many retail no-no’s when it comes to selling beer. Because beer generally moves quicker than wine or spirits, retailers should be realizing ROI (Return On Investment) more rapidly and therefore increasing cash flow. Anything that doesn’t make beer easy to access or convenient to find works against the value of beer. Retailers who do not provide simple pointof-purchase information are potentially sabotaging their own business.

Retail space reality The next three case studies will give you better examples of why foregoing planning of an expanded craft beer section could be a bad idea. In all three cases, the retailers have rec-

44 Bay state beverage guide June 2010

ognized increased store traffic and greater consumer interest in craft beer and have taken steps to capture this business. Unfortunately, in all three instances, we think each store could have achieved greater success if they had stuck to the retail basics.

Case A: How best to hide that you sell beer When we went into this store, we actually didn’t think that they even sold beer; it wasn’t in the name of their store and the inventory was well hidden. Initially this local wine retail chain had a smaller beer selection which was limited to the Beer Cold Box pictured on the back wall. As beer became more popular, racks were placed in front of the Beer Cold Box, effectively blocking the existence of this section from just about any other part of the store.

Case B: Spreading out the beer selection This second case is interesting because when we went into this store, there was no way to miss the long Beer Cold Box along the back wall. The problem was that the cold beer was not that interesting. It wasn’t until we were leaving in disappointment that we caught the large craft beer rack out of the corner of our eye in the back corner of the store. In this case, instead of disrupting any of the other retail space, this store created craft beer racks on the opposite side of the store. The challenge is that consumers could easily leave the store believing that this retailer had an awful selection of beer, which was not the case.

Case C: Beer, beer everywhere Our final case is a great example of what happens to an older retail space when the business model changes. In dated, smaller spaces it isn’t easy to change shelving and traffic flow as in-store construction can significantly disrupt business. In this case, the whole store is the beer section. Beer is in so many places throughout the store that a customer could easily miss the brands they are looking for or injure themselves tripping over cases of beer stacked in the middle of the aisles.

TAKE AWAYS Final tips for creating a craft beer section. Stick to the retail basics: n Clearly define the size and location of each department (Craft Beer, Beer, Wine, Liquor) n Keep the beer selection together (don’t spread throughout the store) n Use beer shelf talkers or POS to increase turns n Offer an obstacle free traffic flow n Maximize exposure and access to products n Create a convenient, comfortable shopping environment for customers n Define the business objective for the space, and plan your display before you start stocking the shelves How innovative is your store at selling beer? We would like to know. If you have promotions that go beyond refilling the cold box, we would like to hear from you and share your “out-of-the-box” thinking with our fellow Bay State Beverage Guide readers. n E-mail me at mkuderka@mcbasset.com with your successful ideas for selling beer, along with your contact information. If we write about your program in our column we will send you a free copy of The 3rd Edition of The Essential Reference of Domestic Brewers and Their Bottled Brands.

VIOLATIONS & PENALTIES AMF Taunton Ten Pin, Taunton. Underage possession. Commission issued warning. Avedisian’s, Saugus. Appeal of action denying annual renewal of All Alcoholic Beverages Common Victualer License. Commission disapproved action denying renewal of license. Commission remands matter to Local Board with recommendation that license be renewed effective Jan. 1, 2010, nunc pro tunc, and issued within 10 days from date of receipt of decision. Barry’s Fine Wine & Spirits, Inc., New Bedford. Underage sale. Clerk is TIPS certified. Clerk checked identification. Clerk reasonably relied on driver’s license provided. Based on evidence, Commission finds licensee did not violate law. Charlie’s Cape Ann Liquor Chest, Gloucester. Gloucester Liquors, Inc. purchased alcoholic beverages from Wine and Beer @ the Andover’s, LLC (Wine & Beer), whom holds an all alcoholic Massachusetts General Laws chapter 138, §15 license. Commission issued warning. El Centro, Lawrence. Permitted illegality on licensed premises, to wit: M.G.L. chapter 138, §34C: Person under age of 21 in possession of alcoholic beverage (two counts) and 204 CMR 2.16(1): Failure to post cover charge or issue printed receipt. Commission finds licensee violated 204 CMR 2.16(1): Failure to post cover charge or issue printed receipt and issues warning. Commission further finds the licensee violated M.G.L. chapter 138, §34C: Person under age of 21 in possession of alcoholic beverage (two counts) and suspends license for nine days, held in abeyance for period of two years provided no further violations of Chapter 138 or Commission Regulations occur. Liquor, Wine & Beer at the Andovers, North Andover. Sold large quantities of alcoholic beverages on 41 different

dates to Gloucester Liquors, Inc. On all 41 transactions, Gloucester Liquors, Inc. paid for alcoholic beverages by bank check. Commission suspends license for four days with four days held in abeyance for period of two years provided no further violations of Ch. 138 or Commission Regulations occur. Mee King Garden, Bridgewater. Underage possession, two counts. Commission issued warning on first count and suspends license for period of three days, held in abeyance for one year on second count. MIC, Inc., Chicopee. Alleged violations of Massachusetts General Laws chapter 138, §77 – Ceasing to Conduct the Licensed Business; 204 CMR 2.01(8) – All applications shall be made under the penalties of perjury and any false statement contained in any application shall be cause or ground for refusing to grant the license or permit or for suspending, canceling or revoking a license or permit already granted (two counts); Massachusetts General Laws chapter 138, §64 – License issued under this chapter by the local licensing authorities in violation of §16 A or any other provision of this chapter (two counts). Commission canceled license. Quarrystone Convenience, Malden. Appeal of action denying application for Wine and Malt Package Store License. Local Licensing Board’s decision denying Wine and Malt Package Store License is Affirmed. Raffi’s Place, Lynn. Appeal of 14 days suspension based on violation of Local Rules and Regulations for premises and lack of management control. Board found that there was no control of license premises as drug transaction was allowed to occur on premises. Commission approved action of Board. Appeal of action that Raffi’s violated Board’s Local Rules and Regulations and provisions of Massachusetts General Laws chapter 138. Allowed illegality to occur on premises and violated Local Rules by not calling police. Board also found licensee allowed employee to commit illegality on premises (possession with intent to

distribute) and lacked management and control of premises. Commission remands matter to Board with recommendation that no modification, suspension, revocation or cancellation of license be ordered by Board. Commission found it unnecessary to determine reasonableness of penalty imposed by Board since disapproval would render any sanction by Board discrepant with out decision. Transfer of privilege of a license without proper approval; chapter 138, §23- Sale of alcoholic beverages other than those purchased from a licensee under §18 or §19 or from holder of a special license under §22A (48 counts); chapter 138, §2Illegal importation of alcoholic beverages without a permit, to wit: Ch. 138, §22 (42 counts); 204 CMR 2.05(2)- Permitting an illegality on the licensed premises, to wit: chapter 140, §177A(1)- Failure to have automatic amusement devices licensed (two counts); chapter 138, §64License issued under this chapter by the local licensing authorities in violation of §16A or any other provision of this chapter (six counts); and, 204 CMR 2.01(8) All applications shall be made under the penalties of perjury and any false statement contained in any application shall be a cause or ground for refusing to grant the license or permit or for suspending, canceling or revoking a license or permit already granted (six counts). Commission revoked license. T-Bones Roadhouse, Plymouth. Intoxicated patron. Commission suspends license for five days, held in abeyance for two years provided no further violations of Chapter 138 or Commission Regulations occur. The Center Cafe, North Reading. Appeal of action denying Common Victualler/Wine and Malt Beverage License application. Commission remands matter back to Local Board to issue within 10 days from receipt of this decision subsidiary findings upon which it made its decision denying application for wine and malt beverages license. Applicant may request further hearing before Commission to present oral argument and legal authority on denial by Local Board based on subsidiary findings to be issued.

June 2010 Bay state beverage guide 45

CROSSWORDPUZZLE

This month features clues about Cognac

45 48

54 58

36 38 40 41 43 44 45 46 48 51 53 54 56 58 61 66 67 69

52 56

47 53

Central Time Tree gem Bad (prefix) Dismantle Norwegian Jar Asian nation Sharpshoot Location Bird home "Star Trek"'s Spock's race Whiz Flightless bird Haze Representative Chest muscles Negative battery terminals

1 4 9 12 14 15 16 17 18 19 21 23 24 25 28 31 34

Across

69 72 75

Nix Official canine registry (abbr.) Cognac Abhors Three Clever Stretch to make do Called Visionary Creative work Smell Car speed Unrefined Cognac Cognac Don City American Civil Liberties Union (abbr.)

46 Bay state beverage guide June 2010

70 71 72 73 74 75

Visionary Caffeine pill brand Combine Compass point Saw logs Compass point

Down 1 2 3 4 5 6 7 8 9 10

Baby bed Dress Despot Cognac Seller Soft cheese Clairvoyance Put through a hole Artist Chagall Afloat

11 13 15 20 22 25 26 27 29 30 32 33 34 35 37 39 42 43 47 49 50 52 55 57 58 59 60 61 62 63 64 65 68

Tend Last Treasure Animal house Official Cuts __ Carlo Poem of praise Enroll Desert Monte __ Snow slider Expression of surprise That girl Lysergic acid diethylamide Fish Also known as (abbr.) Little bit American state Nail filing board Revolutions per minute Quake Religious songs Cognac Beautiful bird Adolescent Unusual Pedestal part Mayan language Pros Evils Au naturel Cation

Solution

S A R I

C R I B

M A L V A S E A R E A L C A N U E C S A K C T R I O A L E D D O R

S A N H I A P S

M A I N A C L U M E L D S S E

A M B E R N O R S E S N I P E A G E V U C E E M R E P P S N I L H A T E S E K E D I A R T O H R A W Y D E L A M I A M I N O D O Z S N O R E

T Z E A N R D C A M O G O D E N E T E E R M P R E M A R R Y E

T E E N

S W A N

SHOPPING NE TW ORK

SHOPPING NETWORK For More Information Contact: The Beverage Network 116 John Street, 23rd floor, New York, NY, 10038 Jody Slone 212.571.3232, Ext. 101 E-mail: jslone@bevmedia.com

&86720 281&( 3,/61(5 */$66 %((5 08* 6$03/(56 Made of durable acrylic plastic. Many other glass styles available.

1-800-233-0828

ATMs & ATM deals! FIVE (5) YEAR WARRANTY! PARTS, LABOR, PAPER*

100%

Surcharge Is Yours! (you keep it all)

NEW ATMs from $1,995

(Free Delivery/Install Extra)

Need Service Repairs/Parts? Need Free Processing? Upgrade Your ATM?

FREE ATMS

(if you qualify)

800.499.1068 ext.101

Since 1996 weâ&#x20AC;&#x2122;ve been delivering what YOU expect! * The above is subject to availability, credit, bank and ATM contract(s). ATM minimum transaction volume restrictions apply. Texans: add sales tax

SHOPPING NETW ORK

Franco’s® Cocktail Mixes

Phone: (954) 782-7491 ★ ( 800) 782-4508 ★ Fax: (954) 786-9253 e-mail: francocktl@aol.com

www.francoscocktailmixes.com

The Beverage Network, 116 John Street, 23rd floor, New York, NY, 10038 Jody Slone, 212.571.3232, Ext. 101, E-mail: jslone@bevmedia.com

SHOPPING NETWORK

SHOPPING NETW ORK

NEWLY updated

PROFESSIONAL WINE REFERENCE SIMPLE. ACCURATE. INFORMATIVE.

“I Gotta Guy” Drinkware s Barware s Corkscrews Tee Shirts s Hats s Tooters Shakers s Golf Balls s Bottle Bags

“Where Experts Go for Answers… …a boon for both novices and collectors”

I.D. Bracelets s Stir Rods s Cups Any Promotional Item s Dealer Loaders Display Enhancers s Sales Incentives Printing s Event Tickets Travel s Gift Certificates On Premise s Off Premise

– The New York Times H. Goldberg

Published by Beverage Media Group, Inc.

Now “You Gotta Guy”

$19.95 plus $4.00 (S&H) Resale Programs and Quantity discounts available Make check payable and send to: Beverage Media Group, Inc. 116 John St., 23rd Fl New York, NY 10038 Call (212) 571-3232, ext. 117 or visit our website www.bevnetwork.com

www.businessgiftfinder.com 973-376-2270

LASTCALL

Ringo By Gabe Rosen BIWA, PORTLAND, OR

Ingredients: 3 oz. extra dry sake 2 oz. apple cider 1 oz. Maker’s Mark Splash lime juice Method: Stir ingredients, strain into Zombie glass and float with Maker’s Mark

50 Bay state beverage guide June 2010

1IPUPHSBQI CZ )FBUIFS )BXLTGPSE

Despite its autumn-appropriate ingredients – apple cider, bourbon – the “Ringo” served up at Biwa, was inspired by a cocktail that one of the restaurant’s cooks sipped at a NYC sake bar (Decibel) and is extremely refreshing. Biwa, known for its homestyle Japanese food, is the natural setting for customers to enjoy sake. Some of these guests, however, are curious to sample Japan’s iconic beverage in cocktail form. “Sake is always number one in beverage sales at Biwa, but cocktails are close behind,” says owner Gabe Rosen. “Sake cocktails have the potential to be lower proof, which can be nice, especially if you are going to have a cocktail and then switch to sake. Sake can be a challenging ingredient, because it is delicate, overwhelms and doesn’t have many direct analogues. That said, sakes express a surprising range of flavors and can bring an amazing soft roundness to a drink that can set big, distinctive ingredients in an interesting light. I’m always pleased to see sake served in non-traditional venues like cocktail bars and haute restaurants—it’s a good drink.”

TS E K C TI SALE ON

! W NO

JULY 21 – 25, 2010 This summer the international cocktail community will converge on a city where spirits live 24/7. Shaken from their slumber within the bottle, the spirits will take on a life of their own in New Orleans at Tales of the Cocktail 2010. New Orleanians looking to partake in this summer’s festivities can sample the best of Tales of the Cocktail with the Native Spirits package. For $135, this package gives locals access to four of the festival’s most popular events and includes signature Tales of the Cocktail 2010 merchandise.For more information on the Native Spirits Package and to reserve your place at this summer’s spirited events, visit www.TalesoftheCocktail.com

OUR GENEROUS ANNUAL PARTNERS:

Tales of the Cocktail salutes the generous spirit of their sponsors: 10 Cane Rum, 360 Vodka, 4Orange Vodka, 42 below Vodka, Absolut Vodka, Absolut 100 Vodka, Akvinta, Aperol, Appleton Estate Extra 12 Year Old, Appleton Estate Reserve, Atmosphere Movers, Averna, Bacardi Cordials, Bacardi Select, Bacardi USA, Balcones Distilling, Balvenie, Banks 5 Island Rum, Bar Business Magazine, BarProducts, Bar Smarts, Barefoot Bubbly, Bärenjäger, Barq’s Rootbeer, Barsol Pisco, Basil Hayden’s, Batiste Rum, Beam Global, Beefeater Gin, Belvedere Vodka, Benchmark Bourbon, Benedictine, Beverage Media Group, Bitter Truth Bitters, Bluecoat Gin, Boca Loca Cachaça, Boiron, Bols Genever, Bols Liqueurs, Bombay, Bombay Sapphire, Brugal Rum, Buffalo Trace Bourbon, Bureau National of Cognac, Cabana Cachaca, Café du Monde, Campari, Captain Morgan Rum, Cardenal Mendoza, Caribou Crossing Single Barrel, Casa Noble Tequila, Catdaddy Carolina Moonshine, Chairman’s Reserve Rum, Chartreuse, Château du Busca, Chateau Montifaud, Chateau Paulet, Cheers Magazine, Chef Wear, Cherry Heering, Cherry Heering, Cheryl Charming, Chinzano, Chivas, Chivas Regal 12 Blended Scotch Whisky, Citadelle Gin, Classic & Vintage, Clement Sirop de Canne, Coca Cola, CocktailTimes.com, Cointreau, Coole Swan, Corazón Tequila, Corzo Tequila, Courvoisier, Crescent School of Gaming & Bartending, Crop Organic Vodka, Cruzan Black Strap Rum, Cruzan Rum, Culinary Concierge, Darroze, Del Maguey Mezcal, Dewar’s Scotch Whisky 12, Dewar Scotch Whisky 18, Diageo, Dirty Sue Olive Juice, Domaine de Canton, Don’s Mix, Don’s Spices #2, Don Q Anjeo Rum, Don Q Cristal Rum, Don Q Rum, Drambuie, Drink Me Magazine, Drinkupny.com, Driscoll’s Berries, Dubonnet, Eagle Rare 10 year old, Effen Vodka, El Tesoro Tequila, Fee Brothers Bitters, Fentiman’s Botanically Brewed Beverages, Fernet Branca, Fever Tree Products, FIJI Water, Fireﬂy Sweet Tea Vodka, Forgotten Casks, Four Roses Bourbon, Frapin Cognac, Fre Alcohol Removed Champagne, Funkin Puree, Galliano, Geranium Gin, Glace Luxury Ice, Glenﬁddich, Gonzalez Byass Lepanto, Gran Gala, Grand Marnier, Grey Goose Vodka, G’Vine Gin, Hayman’s Old Tom Gin, Heaven Hill Whiskies, Hendrick’s Gin, Herbsaint, Illegal Mezcal, Hubig Pies, Imbibe Magazine, In the Mix Magazine, Jameson Gold Reserve Blended Irish Gin, Herbsaint, Hubig’s Pies, Illegal Mezcal, Imbibe Magazine, In the Mix Magazine, Jameson Gold Reserve Blended Irish Whiskey, Junior Johnson’s Midnight Moon, Kahlua Coffee Liqueur, Karlsson’s Gold Vodka, Kerry Gold, Kold-Draft Ice, Laird’s, Laird’s Bonded Apple Brandy 100pf, Laphroaig, Leblon Cachaça, Lemon Hart 151 Demerara, Leopold Absinthe Verte, Lillet, Los Amantes, Lucid Absinthe, Lunazul Tequila, Luxardo, Luxardo Maraschino Liqueur, Magnum Music Group, Mahiki Rum, Maker’s Mark Bourbon Whiskey, Malt Advocate, Mandarin Napoleon, Margaritaville Rum, Marie Brizard, Martell Cognac, Martell XO Cognac, Martini & Rossi, Mathilde Liqueur, Mekhong, Meukow Cognac, Meyers Dark Rum, Michter’s Whiskey, Milagro Tequila, Mount Gay Rum, Mud Puddle Books, Mutineer Magazine, Navan, New Orleans Convention and Visitors Bureau, New Orleans Magazine, Nightclub & Bar Magazine, NIKKA Whiskey, Noilly Pratt, Nouvelle Orleans, Nouvelle Orleans Absinthe, Old New Orleans Rum, Olive It, Oronoco Rum, Oxley Gin, Pages Parfait Amour, Pages Vedrenne, Palm Bay, PAMA Pomegranate Liqueur, Pampero Aniversario, Paula’s Texas Spirits, Perfect Puree, Pernod Absinthe, Pernod Ricard, Pernod Ricard USA, Piedmont Distillers, Pierre Ferrand Cognac, Plymouth Gin, Pommery POP Earth Champagne, Preiss Imports, Pyrat Rum, Rhum Clément, Rhum Clement Creole Shrub, Rhum Clement Premiere Canne White Rum, Rhum Clement V.S.O.P., Rhum J.M Blanc, Rhum J.M Paille, Rhum J.M., Ricard, River Parish Disposal, Ron Abuelo, Ron Viejo de Caldas, Rouse’s, Royal Canadian Small Batch,Rum jumbie, Russian Standard Vodka, Rye One, Sagatiba, Sailor Jerry Rum, Saveur, Sazerac, Sazerac Rye 6 yr old, Scapa 14 Single Malt Scotch, Seven Tiki Fijian Spiced Rum, Smith & Cross Traditional Jamaican Rum, Sobieski Vodka, Solerno, Sombra Mezcal, Square One Spirits, St. Germain, Stoli Vodka, Sunkist Growers Association, Tabasco, TAG BAR Tools, Tanqueray, Tasting Panel Magazine, Tenneyson Absinthe, The Dalmore, Tipsy Texan, Tito’s Handmade Vodka, Tobacco Free Living, Tommy Bahama Golden Sun Rum, Tommy Bahama White Sand Rum, Torani, Trader Tiki Exotic Syrups-Cinnamon, Orgeat, Treaty Oak Rum, TY KU, Über Bar Tools, UGO & Spirits Ltd., USBG National, Van Gogh Gin, Van Gogh Vodka, VeeV, Veridian Spirits, Vieux Carre Absinthe, Vita mix, Voxx Vodka, Vya Vermouth, Weddings in Style Magazine, William Grant & Sons, William Grant & Sons Scotch Portfolio, Wine and Spirits Wholesalers of America, Yamazaki, Yellow Tail Wine, Zacapa Rum and Zubrowka Bison Grass Vodka. .

a great restaurant wine

marketed by domaine napa wine co. www.domainenapa.com COASTAL VINES CELLARS

u SONOMA, CA

707.265.4060