Back issues
  • Champagne What lies beneath

    Roederer's watery wine cellar

    Lovers of champagne, snorkeling and scuba diving will be interested in Louis Roederer's latest experiment.

    The Champagne house has submerged several dozen bottles of its Brut Premier in 15 m of water off the Saint Malo coast , to test the suitability for storing wine.

  • Gadgets Reading between the lines

    Make a spectacle of yourself

    Creeping age and bad eyes. It comes to most of us: we need glasses. Most off-the-shelf spectacles make you look, at worst, bookish like a librarian, or at best, intellectual like a judge.

    Launched at the Tax Free World Association exhibition in Cannes back in October, the Maui Readers caught the eye. They are for people who need reading glasses but would like something stylish to hide the fact. These readers boast the patented glare and UV protection of the company's Polarised Plus lens technology.

  • Cocktails of the month

    Created for the winter season by Rod Nisbet,

    Miami International Mixology Championships

    World Bartender of the Year 2000-1, and now bar and restaurant manager at the Loch Lomond Waterfront's Osprey Rooms in Scotland

    Pamapple Pie

    5 cl Pama Pomegranate Liqueur

    2.5 cl Goldschlager

    7.5 cl hot apple juice

    Cinnamon and sugar to garnish rim of glass

    Method: Shake all ingredients without ice and pour into a martini glass, being careful not to disturb the garnished rim.

    Created by master mixologist Salvatore Calabrese, head of the Salvatore at Fifty bar in London St James's, in support of the Elton John AIDS

    Foundation event in November 2007

    Hot Flush

    5 cl Grey Goose vodka

    2.5 cl blood orange juice

    1 tsp Campari

    1 tsp maple syrup

    1 tsp pink peppercorns

    Method: Shake all ingredients in a cocktail shaker with plenty of ice. Strain through a fine sieve into a chilled martini glass and garnish with freshly ground pink peppercorns.

  • Book shelf

    • The Drinkless Mind

      Are you drinking to conform professionally or socially? Do you use alcohol as an emotional crutch? Do you often regret overdoing it? Have you ever resolved to get your drinking under control and yet never actually do? In an industry where most of us drink too much, the likelihood is that you will answer yes to at least one of these questions. So maybe this is a bedtime or airside read for you.

      Published by Able Publishing

      Price: £17.99
    • The Grappa Handbook

      Ever wanted to get to grips with grappa? Marcin Miller, who is described as a "spirits sensation seeker with 17 years' experience", has written and published the handbook in association with Nardini, the family-owned

      distillery behind one of Italy's

      leading grappa brands.

      The book is available gratis to bartenders and restaurateurs from [http://www.nardinigrappa.com]
    • Guinness: The 250-year Quest for the Perfect Pint

      San Franciscan beer writer Bill Yenne follows the story of how Arthur Guinness secured a 9,000 -year lease for his Dublin brewery.

      Published by Wiley.

      Price: £13.99/E18.80
    • The Single Malt Whisky Flavour Map

      The Single Malt Whisky Flavour Map aims to show where whiskies are located in terms of flavour profile. It aims to help consumers make an informed choice . The map is objective, showing brands in relation to two axes - light-to-rich and delicate-to-smoky - and has been endorsed by well-known whisky taster and writer Dave Broom.

      Published by Diageo

      Download from malts.com

  • The DI taste test South African Chenin Blanc

    Hazendal Bushvine Chenin Blanc 2006, Stellenbosch

    Abv 13.5; residual sugar 3.1g/l ; 30-year-old bush vines grown on sandy soil, no irrigation; grapes picked very ripe; yield 4-5 tonnes per ha; Ireland E11

    Honeycomb colour. Honeyed lemon and pineapple on the nose with hints of rosemary and oregano. Dry, full and pithy flavours. Lemon sherbet with a crisp, mineral tang mid-palate. Good with salads, crab, mussels or lobster.

    De Morgenzon Chenin Blanc 2005, Stellenbosch

    Abv 14; residual sugar 6.8g/l; debut vintage of King of Chenin Teddy Hall; barrel fermented; grown on 5ha planted in 1970; John Platter Guide 5*; UK £16.99

    Full, earthy, mineral aromas. Honeyed with nutty touches. Toasty and fleshy with pineapple and dried tropical fruits. Crisp acidity cuts through a pithy, lemon meringue finish. Shows real Vouvray-like qualities - one for the adventurous foodie.

    Raats Chenin Blanc 2006, Stellenbosch

    Abv 13.5; residual sugar 1.6g/l; John Platter Guide 4*; old vines on sandstone/decomposed granite soils; 91 points Wine Spectator; 1,300x12 bottles; UK £13.99

    Rich, honeyed touches on a nose of peach and orange blossom. Full, dry palate that kicks off with peach and really opens out through pineapple, more peach and ripe melon on the finish, all balanced by complex layers of flinty minerals and freshening acidity. Finely balanced and elegant - good match with Mediterranean-style starters, sea bass or tuna.

    Ken Forrester The FMC 2006, Stellenbosch

    Abv 14.5; residual sugar 9.7g/l ; wild yeast fermented in new 400l French oak; old bush vines on Clovelly soil (sand & gravel on clay); 1500x6 bottles; UK £16.95

    Deep burnt ochre/gold colour . Full, beeswax nose, baked lemon and stone fruits. Unctuous, toasty palate balanced by lively citrus acidity with orange mousse, apricot and vanilla . Residual sugar balanced by the effusive fruit and alcohol.

  • First to the bar

    • Largest jenever bar To celebrate its 25th anniversary, the Jenever Museum in Hasselt has built what it claims to be the largest jenever bar in Belgium. Museum coordinator Davy Jacobs invited all (57) existing Belgian jenever producers to celebrate the birthday. "For them, we are building a mega-bar in the Witte Nonnenstraat and surroundings. The aim is that the jenever distillers will bring all their jenever flavours to Hasselt," he said. At least 20 producers from Brussels, east and west Flanders and the rest of Belgium put in their products, with each producer, on average, producing between eight and 10 flavours. Jacobs was able to offer - on top of the 110 jenevers from the museum - about another 500 varieties. Hasselt is 70km from Brussels and guided tours can be booked through Tourism Hasselt on +32 11 23 95 42; Alternatively go to visitflanders.co.uk.
    • Dining near the Old Bailey

      Just opposite the famous Old Bailey law courts in the City of London, there has opened Terranostra Cucina Italiana, which is described as "an understated, well-priced restaurant that serves up some of London's finest Italian and Sardinian cooking ." Dishes include: traditional Sardinian pasta of hard wheat in a tomato sauce, and homemade charcoal-grilled Sardinian sausage with broccoli and potatoes. Contact +44 20 3201 0077 or visit terranostrafood.co.uk.
    • Genova comes out of the shell

      Il Guscio ("the shell") is the name of a new restaurant, pizzeria and aperitif bar in the centre of Genova. Designed by the Costa Group, the concept is to bring a cosmopolitan and elegant establishment to medium-to-high spenders. Contact: +39 010 3770086.

  • Keeping it in the family

    Buying trips to remember Ferrari farrago

    We do get to visit some wonderful places in our industry. Italy ranks high up the list for me. I've always been absorbed by the contrasting history, culture, society and geography of each region.

    Though visiting Sicily for the first time a few years ago, was a real eye opener. At the end of my visit, we had lunch at a restaurant that looked out across the sea. It was a glorious spring afternoon and the dining room was crammed full with happy, noisy people. We had no booking, but on our arrival words were exchanged between my host and the owner, and immediately the best table in the room was free for us to sit down. I'm convinced the table was occupied when we arrived.

  • The renaissance

    Italians are accustomed to leading the way in the fashion stakes, and now the nation's younger drinkers are discovering that beer is trendy. Tim Hampson reports

    There is something deeply compelling about the Italian beer market - it's in growth. And, according to figures from Brewers of Europe, the Italians' thirst for beer makes it the only European market where beer consumption is consistently increasing.

    The country might be better known for its wines but, domestically, beer is growing in popularity. In 2006, per capita wine consumption dropped to a record low of 46 litres, while beer reached new heights, according to figures from the country's beer trade association, AssoBirra.

    "Last year, consumption hit a new record of 30.3 litres per capita, against 29.9 in 2005," says AssoBirra president Piero Perron. And, while wine might be the tipple of choice for at-home drinkers, Perron is pleased that when people go out in the evening the sales of wine and beer are running neck and neck.

    "A growing number of Italians claim they are drinking more beer because they enjoy the genuine quality of its taste," he says. "Beer is now trendy and fits in perfectly with modern lifestyles."

    But the picture is not all rosy. Even though consumption is up, domestic production is relatively static at 12.8 million hl and while it is about 70 per cent of the national beer market, according to AssoBirra, it is in slow decline. The increase in consumption is almost entirely covered by a growth in imports, which rose from 5 .5 million hl to 5 .8 million hl ( up 10.6 per cent) in 2006 (see table page 48).

    More than 70 per cent of imported beer in Italy comes from Germany and Holland, and the volumes are growing. Italian brewers say it is hard for them to compete with cheaply-produced imports. "Imports grew, in particular, in the medium-low segment and therefore in the medium-low price range," says Perron.

    But despite the problems, AssoBirra maintains that the Italian beer market is in rude health. Currently, there are 16 significant brewing sites in Italy, which employ more than 20,000 people. Says Perron: "In 2006 Italy was confirmed the ninth-largest producer in the European Union, surpassing countries with strong beer-drinking traditions, such as Austria, Denmark and Ireland.

    "A further sign of the vitality of our national sector comes from the strong growth in the number of brands produced and/or distributed in Italy."

    Encouraging trends

    Results of research published in AssoBirra's annual report this year show a 3 per cent increase on 2005 in beer consumption in Italy. The number of beer fans in Italy is rising along with the popularity of drinking in bars and clubs.

    While the common perception might be that most Italians would rather have a Chianti than a Carlsberg, almost seven out of 10 Italians claim they drink beer daily. Indeed, Italian beer drinkers - who tend to be well-educated urban dwellers aged between 18 and 24 - show a great deal of sophistication and product knowledge, which must make the country the envy of the brewing world.

    According to the AssoBirra research, Italians view beer as both traditional and modern, a good alternative to wine made with healthy, natural ingredients, and drinkable everywhere. More importantly, it is easy to drink, suitable for women, refreshing and thirst-quenching. "Such positive images influenced consumption, and especially out-of-home consumption," the report states.

    Even though most Italians buy their beer in supermarkets, beer is distributed through bars, hotels and restaurants by a network of 2,000 wholesalers. Carlsberg Italia marketing director Jakob Knudsen says: "In Italy the market is promising, as it is showing a moderate increase, even if the beer consumption is less than in northern Europe. Importantly, young people are especially interested in beer.

    "Carlsberg Italia's volume trend is rather satisfying - plus 2 per cent versus last year, due mainly to off-trade sales. Tuborg has been relaunched over the past two years and the brand shows a continuous growing trend."

    Crafty innovators

    For many, though, the biggest phenomenon in the Italian beer market is the swift rise of microbreweries and brewpubs. In the past 10 years the country has experienced something of a microbrewery revolution, with the numbers of small producers involved rising from 10 in 1996 to more than 150, according to brewing analyst Maurizio Maestrelli. Most are in the beer-drinking north but there also sites in Sardinia and Sicily.

    Among the first on the scene were Le Baladin in Piedmont, Birrificio Beba, Birrificio Italiano in Lombardia and Birrificio Lambrate in Milan. Teo Musso set up Le Baladin in 1986 as a pub and started brewing in 1996. A non-conformist, he specialises in interpretations of Belgian beer styles, but has recently started to brew ales - which he describes as "my rapture" - made using wine and whisky yeasts.

    Like many of the microbrewers he is exploring the boundaries of brewing style. "Nora is brewed with a Mesopotamian grain called kamut, ginger and myrrh," says Musso. "Xyauyù, weighs in at 12 per cent abv and is the result of extensive research on oxidation to obtain solera-type flavours used in sherry production."

    The craft beer movement in Italy has been encouraged by young Italian consumers, who are familiar with beers from Belgium, Britain and Germany. "The first microbreweries were really brewpubs, serving non-pasteurised beer," says Maestrelli. "Then they started to bottle and sell it across northern Italy. This trend is attracting even more entrepreneurs as they see that craft beer is a good business. This obviously means there is acceleration in the development of the microbreweries."

    The development of brewpubs came at a time when going out to a pub became a trendy thing for young people to do, says Maestrelli. "The image of beer changed in Italy at the beginning of the 1990s, with the development of Irish pubs, Belgian brasseries and, of course, German beer gardens. We are starting to see quality beers in very good restaurants, and even in places where you could [previously] buy just wine. Today, brewpubs are attracting people from 20 up to 45 years old."

    Many of Italy's craft brewers are pushing the boundaries of brewing and developing a unique Italian style. "One brewer uses flowers, another cinnamon, another uses Chinotto di Savona, a kind of orange protected by Slow Food in Liguria," says Maestrelli.

    "Lambrate in Milan produces a smoked beer called Ghisa, the dialect name of the traffic policeman in Milan. Bidu in Rodero, near Como, makes a kolsch-style beer, Panil at Torrechiara, in the Parma ham area, makes Panil Barriquée, a beer that ferments in an oak mash tun.

    "The brewer Renzo Losi is trying to make the first spontaneous fermentation beer in Italy. There's a lot of fantasy in the brewers' work, not everything is perfect but they try and try. Strong beers such as strong ales, trappist, bock and doppelbock , are proving popular with Italian consumers, who are looking for new tastes and aromas."

    Export drive

    Even though Italy is regarded by many as the birthplace of style, the Italian beer consumer perceives international brands to be better than locally-produced beer, according to AssoBirra's report. But SABMiller has found that Italian "pizazz " is something that really resonates with consumers around the world.

    The company relaunched Peroni Nastro Azzurro in March 2005 with a new look emphasising its heritage and craftsmanship, giving it an Italian style positioning.

    Company spokeswoman Victoria Greenyer says: "Peroni is now much more than a national brand - it is establishing a presence in many other markets around the world." Following a US$50 million promotion in 2006, Peroni Nastro Azzurro is now sold in Japan, France, Romania, Poland, South Africa, Puerto Rico, Colombia, India, Peru, Australia, the UK and US.

    "Building on this Peroni Nastro Azzurro is achieving universal appeal through its unique, clear and aspirational brand positioning," says Greenyer. "Peroni Nastro Azzurro's fresh approach and new style has what it takes to challenge people's traditional perceptions about the beer category and to reinvigorate the market."

    The Peroni relaunch has reaped rewards in its domestic market too. "Italy does still have the lowest per capita beer consumption in Europe and, although the market is increasing in size, this is largely driven by foreign imports," says Greenyer. "Following the relaunch Nastro Azzurro has enjoyed regular growth nationally in excess of 9 per cent each year - 11 consecutive quarters of growth."

    With burgeoning interest among Italy's young consumers, a dynamic and inventive craft brewing scene and a major international brand at the vanguard, the Italian beer market is much more than just "que sera sera ".

  • Wider horizons

    Geoff Adams attends a premier Cape wine competition
    and assesses the breadth of the South African industry

    South Africa's winemakers have unlocked their expertise and let loose their distinctive expressions on the world market since the nation shook off its colonial past and abandoned apartheid in 1994. So much so that South Africa today has more than 102,000ha of land under vine - up from 92,601ha in 1999 - and makes as much as three per cent of the world's wine.

    Although it has been reported that sales have suffered in the key UK market over the past

    18 months or so, particularly for some big South African brands such as Kumala, South African producers feel they are sitting on a gold mine. According to Philip Costandius, chairman of the Cape Winemakers Guild and cellar master at Stellenbosch producer Lourensford, they feel they are in a position to go head-to-head with the Australians in certain sectors of the world market, and are already competing well with Chile in the medium-price bracket.

    "The best export market for South African wine is still in the UK," says Costandius, "but Holland and Germany are fairly close behind, as well as some other European countries. The most difficult market for us, though, is the US. This is a market we really want to penetrate, considering the volumes of wine we want to sell."

    But the attraction of South Africa, he says, is not necessarily in the big-volume market. "We're certainly not going to try to imitate the Australians in this regard. Still, Australia is our main competitor in the world market - we're competing with them head on, especially because we've got lots of Shiraz and Chardonnay planted." And the future, adds Costandius, could lie in South Africa's mid-market and niche offering.

    "I think it's our wines in the medium-price range of around £5.99 that will help move our higher-end wines," he says. "We are putting a great deal of hope in these being able to encourage sales of especially those wines in and around our £8 price range.

    White wine in South Africa still dominates production. Roughly a quarter of all plantings are Chenin Blanc; but Sauvignon Blanc is still being aggressively planted and there's certainly plenty of Chardonnay around. However, following a couple of years of surplus supply, there is a discernable upswing in the popularity of South African red wine on the world markets.

    "The product we are supplying as bulk wine to Germany, for instance, is wine that we would normally put into our entry-level brands," says Costandius. "But the market is just not there for us right now, so we've got to move them somehow; therefore we're putting these pretty good wines into our bulk wines. And yes, that is probably hurting some of our competitors in this completely different market".

    The Pinotage quandary

    The Michelangelo International Wine Awards 2007, held in September, once again unashamedly highlighted much of the best South Africa has to offer. Judging at this competition and visiting some of the more quality-driven estates in the Cape afforded the judges the opportunity to sample a raft of the best wines from vintages that are either just hitting the shelves now or are on the verge of release - plus, of course, a few interesting older ones.

    It was the Cape and other red blends that most impressed most of the judges at the MIWA, but Shiraz also did very well on many scoresheets compared with other varietals. Much of the Cabernet Sauvignon on offer also drew favourable comments, and there were some fabulous examples of Pinotage.

    The subject of Pinotage produces very mixed responses from producers, but those Pinotage wines that were tasted on various visits to wineries impressed hugely, particularly those from the 2003 vintage.

    "Pinotage planted in the right area is important - you've either got the right location to grow it or you haven't," says Costandius. "But I can say to you that we here at Lourensford haven't had much success with this variety because we are in an area [Somerset West] that is too cool. It works well in the Swartland and one or two other areas. But I think producers are saying less and less that Pinotage is 'the' South African variety, the one which South Africa should put it's money on. It certainly provides a point of difference; but whether it provides the South African wine industry with a flag to fly, I would seriously question."

    Pinotage does seem to be getting a rough ride in the press at the moment. But according to Danie Steytler of Kaapzicht, just up the road from Lourensford, if Pinotage is handled correctly it can make great wine. "Pinotage is a very difficult variety to make wine with," he admits. "I have to manipulate it more in the cellar than any other red variety.

    "In the old days, during the 1970s, it used to be picked with lower sugar levels in the fruit, which gave the wines some bad characteristics [like acetone or spray paint]. But we now pick the grapes when they are much riper, giving us lovely sweeter cherry and sweet banana aromas, and on the whole much better results.

    Revealing some technical secrets, Steytler adds that harvesting riper gives juice with lower acid and higher pH, which is a favourable medium for bacterial growth. These bacteria, if not controlled by filtering out, can form a byproduct - acrolein - that gives the wine a bitter finish on the roof of your mouth. "The bitterness in some Pinotage is not a characteristic of this variety, but a result of bacterial spoilage in a badly made wine," he says.

    "We add tartaric acid for the amount of malic that is going to be lost during malolactic fermentation. This lowers the pH, which is then a less favourable medium for bacterial growth. We filter the wine clean if necessary, before putting it in the barrel. It is far less likely that I do this with Cabernet or Merlot, but this is the trick to not making a bad Pinotage."

    Steytler prefers using new French oak to give the wine a better tannin structure and a "nice dry finish". Other producers use American oak to give the wine more fruitiness and sweet vanilla aromas. This might be why the red wines enjoyed most by the MIWA judges, outside the environment of the competition, were the Pinotages tasted at both the Kaapzicht and Beyerskloof estates in Stellenbosch. And although a double-gold gong was awarded to the impressive Rijk's Private Cellar Bravado Red Blend, the estate owners assert that they feel far more pride in their Private Cellar Pinotage (winner of the Pinotage Trophy 2007) than anything else in their range.

    Varietal variations

    One problem highlighted at the competition was a general greenness within the tannins in Merlot wines, which managed to transcend even the good qualities of the other varieties within some Merlot blends. It's a generalisation, of course, but it is a worrying trend that caught the eye of just about every judge at the competition.

    "Merlot does have a problem with green tannins here in South Africa," admits Johan Joubert, winemaker at the excellent Kleine Zalze estate in Stellenbosch. "Some of the biggest problems we have are uneven budding, and Merlot vines in particular becoming over-stressed. Also, overcropping of Merlot vines that are 10 years or younger encourages these unwanted [green] characteristics within a wine.

    "I think if you get it right with your vineyard management, clone selection and irrigation, these are the three main factors which help produce better Merlot in our region. But in all honesty, Shiraz and Cabernet Sauvignon are doing much better here - their sweeter tannins and naturally ripe pluminess make them, for me, more successful here in South Africa."

    Conversely, among the biggest surprises to come out of the competition were four varietal reds made from Petit Verdot. Although winemakers in Stellenbosch are somewhat reticent with their opinions about this variety, one believing it to be "only a minor player from Bordeaux", the glorious fruit, tight sweet tannins and delicious concentration from these wines really impressed. It could be that Anura Vineyards, Franschhoek Vineyards, Zorgvliet Wines and Du Preez Estate have stumbled upon something that might prove very special for South Africa in the long term.

    These days, it's the cooler regions within the country that are having the most success with Sauvignon Blanc and Chenin Blanc, and the sheer quality and mind-boggling diversity of terroir evident in some of the MIWA entrants this year really stood out. Producers are constantly seeking out land at higher altitude towards the southernmost tip of Africa in a continuing search for cooler meso-climates, with the aim of retaining "fruit predominance" in their wines in the face of global warming.

    The area's best Chenins and Sauvignons are now displaying a complex, mineral/saline elegance of the sort commonly found in fine manzanilla sherry. "We [at Kleine Zalze] are very terroir conscious with our wines," says Joubert. "We use grapes grown in various locations, in different soils and vineyard orientations to make wines to suit a variety of international and home markets. We are particularly proud of our white Sauvignon and Chenin Blanc variety vineyards, which lie close to the sea and enjoy the benefits this has to offer. The exposure of the grapes to the sea air gives them typically fresh green fig, asparagus and green pea characteristics on the nose, and the sandy Westleigh sea soils advance the palate of the wine and leave a salty, earthy, long mineral finish."

    It has been said that South Africa - in terms of wine - has put one foot in the New World, while keeping the other foot firmly in the Old World. Other regions in both these camps would be extremely wise to keep a careful watch over their shoulder for the new wave of skilful terroir/quality-driven producers of the Cape.

    Judging regularly at wine competitions around the globe, Geoff Adams is a member of the Circle of Wine Writers and author of Greek Wine, A Comprehensive Guide ?

  • Status symbol

    In a category dominated by two global giants, premium blends are crucial to all major Scotch producers. Tom Bruce-Gardyne reports

    To appreciate how much deluxe blends matter to Scotch whisky, one has only to look at the two biggest players in the drinks industry. In each case, the flagship brand is a 12 Year Old blend - namely Johnnie Walker Black Label at Diageo and Chivas Regal at Pernod Ricard.

    These two brands account for 70-80 per cent of the total deluxe category and make important contributions to the bottom lines of their parent companies. Yet their importance goes way beyond sales volumes or profitability. In the words of Whyte & Mackay's master distiller Richard Paterson, Johnnie Walker is "the very lifeblood of Diageo".

    If the striding man of the brand's famous logo were to stumble, the whole corporation would start to shake as investor confidence ebbed away. Chivas Regal 12 plays a similar role at Pernod Ricard's Chivas Brothers. It has been the company's pride and joy since the day it was acquired from Seagram in 2001.

  • Local heroes call the shots

    Though hugely popular the world over as an everyday tipple, the brandy sector remains a regional entity, dominated by loyalty to locally produced brands. Andrew Catchpole reports

    Brandy is nothing if not a global drink. From Tierra del Fuego to Yukutsk by way of Athens, India and Azerbaijan, this soul-warming grape distillate is on target to surpass the 120 million

    9-litre case mark in 2007 (excluding Cognac), with close on 2.5 per cent year-on-year growth (see table). Its worldwide popularity may not quite match the runaway 600 million case vodka market, but consumption of brandy appears in rude health.

    The difficulty, though, for international brand-builders dreaming of world domination is that the category is highly fragmented, with regional markets typically either showing loyalty to home-grown brands or, especially in the case of non-producers, a similar tie to the brandies of countries where historically trade, language or regional proximity have linked the nations. There are exceptions, but this generally means that outside the rarefied world of Cognac, global brandy brands are thin on the ground.

    Take the brandy in Diageo's portfolio. This global giant's Cognac offering, Hennessy , boasts the US, Ireland, China and Japan as its leading markets, with penetration via duty-free, on-trade and upscale off-trade outlets ensuring its prominence around much of the globe. Switch to brandy, and the somewhat less well-known Bertrams VO fills the spot in the Diageo portfolio. Launched in 1980 into South Africa 's premium category, Bertrams VO has becom e number one in its premium niche in South Africa, Namibia, Swaziland and Botswana. But it clearly remains a regional player.

    A glance at the Drinks International Millionaires Club 2007 report confirms this regional bias, with the runaway success of Emperador (7.2 million 9-litre cases - all figures, 2006) in the Philippines followed by United Spirit's McDowell's No 1 in India (5.99 million cases), Gruppo Campari's Dreher brandy offshoot in Brazil (3.5 million cases), India's Monitor brandy from Shiva Distilleries (2.21 million cases) and Germany's Wilthener Goldkrone (2.19 million cases) as the leading players in terms of volume.

    Controversy over the classification as brandy is never far away, as some products, particularly in India and the Philippines, are produced using neutral molasses spirit and brandy concentrate - much to the chagrin of traditional grape brandy producers.

  • On the tail of a tiger

    Dramatic changes in Ireland's economy and its society have created clear winners and losers among drinks categories. David Longfield reports

    Much has been made of the successful "Celtic tiger" economy, which has been steadily on the rise since the late 1980s, driven by a variety of factors including EU subsidies, low corporate taxes, low wages and, until recently, the US economic boom. Then the Republic of Ireland switched to the euro on Jan 1, 2002, the Irish punt ceased to exist a month later and the country, it seems, has never looked back.

    A rapidly advancing economy inevitably leads to rapid changes in society and lifestyles, as the citizens of China and India would surely attest, and it's here that the challenges have emerged for the alcoholic drinks market in Ireland.

    As the economy has advanced, so the country's population has grown at a rate of 50,000-60,000 a year, reaching 4.5 million in 2006. Immigration has played its part, with the quarter of a million-strong Polish community, for example, now representing a significant proportion of the whole.

    But at the same time, says Kieran Tobin, corporate affairs director at Irish Distillers, one of the country's biggest distributors, there has been a growth in the adult population, and within that a "bubble" in the 18-to-25-year age group. "There has been a definite demographic change," he says.

    Given these conditions, it's perhaps surprising to see year-on-year figures (see table, opposite) for the overall alcoholic drinks market in Ireland as more or less static, if not in slight decline since 2001, with the exception of a growing wine sector. It's a reflection of opposing forces at work in the economy and society.

    "The overall market is growing a little," says Tobin, "but that means per capita consumption has declined a little." Since 2002, he says, consumption has fallen from 14.3 litres of pure alcohol per adult (aged 15+) to 13.5 litres in 2006 - still relatively high, with France at 12.7 litres in 2005 (INSEE), the UK at 11.3 (Institute for Alcohol Studies) and Australia at 9.8 litres in 2004-5 (Drinkwise Australia).

  • A head for quality

    Being the brewmaster of Stella Artois across the globe is daunting, but Paul Van de Walle has that zest for perfection. Nigel Huddleston meets him

    Spend some time with Paul Van de Walle and you'll never look at beer - and specifically lager - in quite the same light again.

    "It's the most complex drink in the world," he says, "much more challenging to make than wine.

    "Some might say it's just a yellow liquid, but to make a good beer you have to align more than 2,000 natural components, and you are working with liquids, gases and solids.

    " It's still a clear solution that looks great. Why would you not want to taste such a liquid?"

  • Attitudes to wine - the safe option

    Germany 48%

    Netherlands 46%

    Finland 42%

    Switzerland 35%

    Sweden 34%

    Denmark 32%

    Canada 32%

    Australia 30%

    USA 28%

    Norway 28%

    Ireland 27%

    UK 24%

    Attitudes towards wine: % of respondents who chose "I know what I like and I tend to stick to what I know" over other options: "I enjoy trying new and different styles of wine on a regular basis" and "I don't mind what I buy so long as the price is right".

    Base: Regular wine drinkers, Total: 13,289, all countries n>1,000 except Ireland and Switzerland n>500

    Source: Wine Intelligence Vinitrac Global March/September 2007

  • Opinions that shape the market

    Humans are creatures of habit, and if those habits happen to include buying your product, then you're in clover. If, however, you are not part of a habitual behaviour, you can be frozen out of a market. Therefore the flexibility of consumer behaviour can be an important factor in the attractiveness of a market for a new entrant. Every time we survey wine drinkers around the world, we ask a question about attitudes to purchase. Consumers decide which one of three statements best describes them:

  • Robert Humphreys

    honorary secretary

    All-Party Parliamentary Beer Group /The British Beer Club in the European Parliament

    Not without a lot more effort. The pressure of the new puritanism abroad in the high -taxing democracies of the industrial world is powerful and growing. As the new liberalism of post-war Europe moves into its third generation, the earlier legacy of self-control and conformity has dissipated and the excesses of unfettered capitalism have fed this degeneration. Public health considerations are delivering ammunition to the enemies of fun and the drinks industry has become too complacent. A new spirit of recognition is at last paying attention to the threats to the industry's freedoms.

  • Abigail Jones

    director communications

    Global Alcohol Producers Group

    Higher taxation is not the solution to reducing harmful use of alcohol. There is little scientific evidence to suggest that taxation changes problematic drinking patterns that are culturally based . Focusing on the blunt measures of increased taxes and bans on sales and advertising will not stop the minority of people who engage in problem drinking as they will simply switch to cheaper or illicit products, or pay the increased price. Countries such as Sweden that have imposed higher taxes actually show greater harmful patterns of drinking. What makes a real difference are programmes targeted to problematic drinking patterns. This is where governments can really make a difference.

  • Jamie Fortescue

    director general

    Confédération Européenne des Producteurs de Spiriteux

    The pressure to take a more restrictive regulatory approach towards alcohol policy has often been driven by northern European countries, as witnessed by the recent media attention in the UK. In late 2006, with the adoption of its communication on alcohol -related harm, the EU took a more realistic approach to alcohol policy. By recognising the problem is not alcohol but alcohol misuse, the EU is signalling to the rest of the world that it acknowledges that higher taxation and limited availability - which target all consumers as opposed to the minority who misuse - ha s not worked and it's time for something new.

  • Jeremy Beadles

    chief executive

    Wine & Spirit Trade Association

    The drinks industry has prove d to be a successful partner with the government in reducing under-age consumption and encouraging moderate drinking. Through Drinkaware and Challenge 21 we are educating people about sensible drinking, preventing the sale of alcohol to the under-aged and discouraging under-age drinking.

    Punishing the majority of responsible drinkers for the sins of a small minority - with higher taxation and regulation - will not tackle the deeper social and lifestyle problems that lie behind excessive and under-age drinking. Instead, we should continue to build on successful partnerships and tackle these underlying problems.

  • Will more taxes and rules reduce abuse?

    Are draconian government and health authority proposals really a solution to excessive drinking?

  • Cutting against the grain

    It's classic market economics: a crisis in grain supply coupled with soaring global demand is giving the spirits industry a headache. Tom Bruce-Gardyne reports

    Back in the early days of making spirits, the price and availability of grain was the critical factor facing any distiller. In Scotland, for example, the size of the local harvest had a direct effect on how much whisky was produced at the local distillery - whether legally or not. Whenever the harvest failed, the government of the time was apt to ban distilling altogether to try and preserve what little grain there was for food. As the spirits industry came of age, the link between raw ingredient and finished product grew further and further apart, as grain became a globally traded commodity. If the UK wheat used to produce Gordon's gin or Smirnoff vodka was in short supply , then brand owner Diageo would simply look abroad.

    That dynamic has not changed, of course, but the age-old bond between the land and the drink made from it has recently been brought back into focus - following the dramatic rise of grain prices. "If you are making alcohol from cereal, around 60 per cent of the manufacturing cost is the raw materials," says David Ward, general secretary of the Neutral Alcohol Producers Association in the UK.

    The impact on the distiller depends on the type of spirit, the type of grain - be it wheat, maize or barley - and, crucially, the price at which the particular spirit is sold. Clearly the retail price of a premium brand of vodka - such as Absolut - has far more to do with tax, retail margin and marketing spend, than the cost of the winter wheat used to produce it. There is also the factor of age to consider - whether it is a white spirit sold virtually hot from the still or a dark spirit like Scotch that has to be matured for a minimum of three years. That said, Scotland's whisky distillers will still have to try to cover the unforeseen price increases in the grain bought this year with the Scotch being sold now.

    Of course, next year's harvest could be back to normal, but no one is really expecting grain prices to fall back to where they were three years ago. Given increased demand from many sources - from biofuel to cattle feed - it seems spirits are already caught up in the general food inflation trend that has affected everything from Mexican tortillas to Chinese pork. Growing biofuels has stirred up a debate on the ethics of ethanol and whether it is right to use food for fuel.

    Distillers could switch production methods from, say, wheat to sugar beet in the case of white spirits. As the EU Commission confirmed last year, vodka can be made from any "ethyl alcohol of agricultural origin". Yet Ward predicts no change. "People who have made gin and vodka from grain will continue to do so because they don't want to change either the real or perceived quality of their product."

    Maize

    The principal grain for bourbon enjoyed an "excellent harvest with good yields and the total acreage under grain the highest it has been in the US for many, many years ", according to Max Shapira, chief executive of the Heaven Hill Distilleries in Kentucky. Despite this, the price of maize has risen by around 60 per cent from US$2.25 to US$3.50 a bushel (56lb or 25.4kg) in the space of a year. According to Shapira that equates to a 20-30 cents rise in the cost of a proof gallon and about the same increase on the retail price of a US$10 bottle of bourbon. For those brands forced over this important price point, the impact will clearly be greater than the 2-3 per cent increase would suggest. As ever, the extent to which any increase is absorbed before reaching the end consumer depends on who holds the balance of power between supplier and retailer.

    The price hike is down to a whole new market for US maize - namely biofuels. Until recently, the US government's willingness to promote the production of ethanol to blend with gasoline ebbed and flowed according to the political calendar. At election times it would be trumpeted as a sop to farmers in the corn belt, only to die away once the votes had been gathered in. Now with concerns over fuel security - of wanting to limit reliance on unstable and unsavoury regimes in the Middle East - coupled with a desire to limit carbon emissions, it is right back on the agenda. Especially now that the price of crude oil is sailing towards US$100 a barrel.

    Tax breaks and subsidies have encouraged venture capital to flow out from Wall Street. In fact, there are now 129 distilleries making fuel-grade ethanol in the US, with another 80 under construction to meet ambitious government targets. The biofuel gold rush was sparked off by the 2005 energy law, which set a mandatory target to double the amount of ethanol mixed with gasoline to 7.5 billion gallons by 2012. The New York Times talks of farm prices being the highest in a generation and of "farmers making high-performance moonshine from amber fields of grain ". The newspaper even quoted one ethanol distillery in Minnesota making traditional moonshine, or rather a high-end brand of vodka, alongside several million gallons of transportation fuel.

    Perhaps this is the logical conclusion of a business simply trying to extract maximum value from its production. Quite how consumers would react if they realised that the premium spirit in their vodka martini was also being used to power their 4x4 SUV, is unclear. It would certainly be a marketing challenge. When told of the Minnesota plant, Graham Bateman of the UK's Gin & Vodka Association, is unimpressed. "It would tend to backfire ," he says. "There isn't a single company in the UK who are trading in both - they are either producing ethanol or potable alcohol." And yet the giant US agribusiness Archer Daniels Midland has been doing it for years - not that it has come close thus far to producing its own brand of spirits.

    But as Shapira says, the biofuel boom has now fuelled a glut. "The fact is, that while still huge, there are some cracks developing in the ethanol business here in the US as the price has gone down and squeezed margins substantially." As of late September the spot price for ethanol had fallen 30 per cent since May. Back in Europe, US maize is not really an option for distillers - at least those pledged not to use GM crops. An alternative would be French maize, but here too, prices have risen steeply . This is partly because they track the US market, but mainly because of the weather causing a 15 per cent reduction in this year's harvest compared to 2006.

    Wheat

    Extreme weather pushed world wheat prices to their highest levels in more than a decade. According to the UK's Home-Grown Cereals Authority , there has been a movement of US$205 a tonne in just over six months to reach a peak of US$390 in early September. At the time of writing, it had fallen back a little to around US$330. The first warning signs came just over a year ago with news of serious drought in Australia. Forecasts from this major exporter have grown progressively worse since, and Ward says latest estimates are now 50 per cent down on normal.

    Population growth and increased affluence have ramped up the global demand for wheat, as has the demand from the biofuels industry - though the HGCA believes this has been overplayed by the media. As a result, stocks were already tight when this year's harvest in Europe came in short, both in quantity and quality. Provisional estimates by DEFRA put wheat yields in Britain at 7.3 tonnes per h a , the lowest since 2001. The fact this was only 9 per cent below average hardly mattered since prices are global, meaning UK distillers were paying double whether they wanted their wheat home-grown or from elsewhere.

    Barley

    Scotland's distillers habitually buy their grain for malt whisky on the forward market, making up the difference on the spot market according to need.

    For the HGCA, the problem this year has been that farmers tended to fix the price early. When the latest harvest came in short, prices shot up, causing quite a number to default on their contracts. Maltsters found themselves in the unenviable position of having to buy very expensive barley to meet demand. At the time of writing, the price of barley was still at a record high of US$450 per tonne delivered from the farm. This represents a 150 per cent increase on two years ago.

  • Patrón plans to spread its wings

    John McDonnell, a key figure behind the Patrón Spirits' success story, talks to Nigel Huddleston

    When the founder of the Patrón Spirits Company, John Paul DeJoria, made his first batch of 1,000 cases of ultra-premium tequila in 1989, there was a particular vision that it would become a global luxury brand that would alter consumers' perceptions of Mexico's native spirit. He was happy to give spare bottles away to his celebrity friends if it didn't work out as a business.

    Eighteen years down the line, the Las Vegas-based company he co-founded with Martin Crowley is selling 1.5 million cases of tequila, and seeing annual sales of its Citró nge and XO Café liqueurs double, while the Pyrat ultra-premium rum brand is one of the best sellers in the States in the over-US$25 category.

    Now extending into the lucrative vodka territory, the company announced its purchase of the global distribution rights to the ultra-premium Ultimat brand portfolio in October.

    Chief operating officer John McDonnell admits that 95 per cent of the company's tequila sales are in the US market, but that's changing rapidly.

    Two years ago, the Caribbean islands of St Maarten and St Thomas were Patrón's only export markets. Now, its tequila is sold in more than 60 countries and new distributors are signing up at a considerable pace.

    The tequila is backed by a global ad campaign that uses local market twists on the same theme of "simply perfect", and links with high-profile events such as the Korean version of the Oscars. In the US, DeJoria's contacts book helped Patrón get into the hands of Clint Eastwood, Peter Fonda and Dan Aykroyd.

    Overseas distributors range from the big-hitting Brown-Forman in Taiwan to the niche Brinkman Beverages in Ireland. McDonnell says distributor philosophy matters more than size.

    "We look for people to work with who know the luxury spirits market and are used to dealing with the right accounts and doing high-end promotions in hotels, restaurants and bars," says McDonnell.

    The reasoning behind this DI profile is that Patrón isn't a tequila just for slamming , but for sipping on the rocks or putting into cocktails - serves that McDonnell estimates account for roughly a 50-50 split in the brand's consumption.

    That's not too surprising for a brand that models itself as the "Dom Perignon of tequila" and sells for just short of £50 in the UK, with comparable prices in other markets. The tequila is made with only the highest-priced Weber's Blue agave and hand-packed in a hand-blown bottle, decked out with natural cork and ribbons. The "super ultra-premium" Gran Patrón Platinum comes in a "violin-quality, curly maplewood box".

    Many other spirit firms would be happy to save on the costs and build in a little more margin.

    "We're privately-owned, and we choose to focus on quality not quantity," says McDonnell. "We can control how we get to market, but when you're publicly-owned you've got to answer to shareholders."

    In the short time Patrón has had a European presence, Ireland and Greece have been particular success stories, buoyed by the high numbers of American tourists visiting those countries.

    "We're very pleased with the growth we've experienced in Canada and the international cruise ship business has been extremely surprising," says McDonnell. "Pyrat rum has really had a lot of support on menus in that market."

    One of the biggest successes has come in World Duty Free at UK airports, where there's been a year-long rolling promotional campaign.

    McDonnell adds: "We launched in Japan earlier this year. It's a key market for us because it's all about high-end space and we're investing a lot of time in that market." Hong Kong and Singapore are other focus markets in the Far East.

    Latin American business is concentrated on the central region, with Costa Rica "the shining success". He adds: "We're gradually expanding out into Panama, Nicaragua and Honduras."

    The Mexican market itself is confined to a couple of small towns. "It's all about finding the right partners for distribution. We're not going to go to the market for the sake of ticking a box, but we're doing extremely well in duty-free on the Mexico-US border."

    And still to come? "We haven't scratched the surface in the Middle East or eastern Europe just yet. The next big one I'd like to get into is Russia, which is a huge opportunity, and we're looking to increase our activity in Korea. Those would be the big two we're looking at."

    Looks like the celebrities will find the freebies a little harder to come by in the future.

  • Brand review - one year on

    Deluxe range relaunches Cutty Sark under full sail

    Product

    Cutty Sark Scotch whiskies

    Critique by

    Gemma Leech, brand manager

    Charteredbrands

    Product

    Around the same time last year that the tall ship Cutty Sark embarked on a phase of conservation and restoration, the blended Scotch whisky brand Cutty Sark was also being rejuvenated. Four of its aged premium blends were been relaunched as Cutty Sark's deluxe range. The 12, 15, 18 and 25 Year Old now all feature in the range as the premium variants to the classic Cutty Sark brand, first created in 1923 by Berry Bros & Rudd and now jointly owned by Berry Bros and the Edrington Group.

    Packaging

    The purpose of the deluxe range was to coordinate the presentation of the aged variants. Shorter, bell-shaped bottles were used across the mix for a premium differentiation to the mainstream pack, yet the labelling retains the strong brand identity and heritage of the Cutty Sark original. Colour coding distinguishes each vintage. The presentation is simple in design, keeping a traditional but fresh look that is sympathetic to the brand's core offering and successfully houses the premium offering together.

    Positioning

    This new range was introduced to appeal to the discerning whisky consumer. Rather than promote separate stand-alone offerings, Cutty Sark has rebranded its diverse vintage blends as a luxury collection. The vintage variants are brought together to provide choice and selection to a broader market where, from a unified platform, consumers are encouraged to cross-purchase and explore the range.

    Pricing

    The relaunch of the range enabled Cutty Sark to review and adjust its pricing . The pricing was increased across the range to reflect the products' quality and exclusivity. The range starts at about e20 euros for the 12 Year Old and goes to e270 for the 25 Year Old. This is a quite broad stretch in terms of price for such a range. But the premium-end pricing appears to be justified given the high taste ratings all products have scored with the critics, particularly the flagship product in the deluxe range - the 25 Year Old - which was rated highest in a comparative tasting by Whisky Magazine.

    Overall

    For Scotch enthusiasts who like to appreciate the subtleties in taste between blends, the Cutty Sark deluxe range is a proposition that collectively should encourage consumers to trade up and explore. With this range, Cutty Sark International has made a positive stab at strengthening its brand in a crowded market. Although sales of the 12 Year Old remain flat, both the 15 and 18 Year Olds are up by 20 and 40 per cent, respectively. The rebranding has made a positive impact on the range of Cutty Sark aged blends, which have fortunately fared better than their namesake clipper that was hit by a blaze during restoration.

  • Education, education, education

    Puritanical anti-alcohol lobbying is gathering momentum with increasing demand for more taxation and regulation of the drinks industry. But will more restrictions really make a difference? I think not.

    We asked four industry experts this question (see page 27), and their general consensus was that a change in social attitudes through communication

    and education was the more likely solution.

    The threat of more restrictive trading, however, has at least made our industry sit up and take action and the results so far have been positive. According to a report by Britain's Ofcom and the Advertising Standards Agency ( asa.org.uk), fewer young people are indulging in under-age or irresponsible drinking.

    The report is testimony to the positive contribution of the drinks industry in ensuring its products are promoted sensibly. It is also evidence that through carefully channelled communication with target groups, social attitudes to alcohol can be changed for the better.

    Despite this, the newly formed Alcohol Health Alliance, a coalition of 24 health groups led by professor Ian Gilmore, president of the Royal College of Physicians, has called for higher taxes plus fiercer warnings on labels.

    And last month, the UK prime minister Gordon Brown called a meeting with alcohol producers, as well as retailers, doctors and academics. Brown challenged drinks manufacturers to do more to tackle alcohol abuse or "face the penalties".

    High taxes may benefit governments' pockets, but there's plenty of evidence around the world to prove it does little to curb problem drinking. And rather than calling for health warnings, which would be water off a duck's back to heavy drinkers, could not the health authorities do more to advise people? After all, don't those who enjoy drinking in moderation lead healthier lives than those who drink excessively or not at all? Cheers!

    PS: Keep up with the daily news at drinksint.com

  • Harveys Bristol Cream

    Brand owner Beam Global

    Spirits & Wine

    Produced in Spain

    Size 75cl

    Price £7.49

    A bv 18

    Markets Worldwide

    Contact: lynne.garrett@beamglobal.com


    Beam Global Spirits & Wine has unveiled new packaging for Harveys Bristol Cream, the best known sherry brand in the world - a bottle is sold every six seconds .

    The new look - hailed as the most radical change in over a decade - features a metallic label with an H logo.

    The company carried out research among more than 2,000 35-to-45-year-old women, the target audience for Harveys. Drew Munro, general manager for Beam Global UK , said that in 12 years of drinks marketing he ha d never known such feedback: 94 per cent, against a normal average of 60 per cent.

    Bristol Cream is a blend of finos, aged amontillados, olorosos and Pedro Ximenez, aged in the solera system. It is matured in American oak barrels for at least three years.

  • Chang Beer

    Brand owner International Beverage Holdings (InterBev)

    Produced in Thailand

    Size 330 & 630ml

    Price £1- 1.50, E1.95- 2.25,

    US$5-6

    A bv 5

    Markets Asia, Australasia, Europe and North America

    Contact roger.barry@interbevgroup.com

    Chang, Thailand's best -selling beer, has been launched in the UK as part of a global roll -out.

    The beer is imported directly from Thailand by Chang UK, a new company created by the InterBev group.

    It is to be positioned as a premium quality beer and is described as full-bodied with light citrus notes that complement Thai cuisine.

    Chang, which means elephant in the Thai language, is initially being aimed at Thai restaurants, specialist Oriental and Asian supermarkets, wholesalers and cash and carries.

    It is packaged in 24x33 cl and 12x64 cl bottles at prices comparable with other premium imported beers.

  • Berrys' Good Ordinary Claret

    Brand owner Berry Bros & Rudd

    Produced in France

    Size 75cl

    Price £7.20

    Abv 13

    Markets UK, Ireland and

    Hong Kong (in 2008)

    Contact: bbr.com


    Since its introduction by Christopher Berry Green in 1974, Good Ordinary Claret has remained Berrys' most popular wine. Although this classic drink has hardly been altered after all these years, the brains at Berry Bros & Rudd felt it was time to shake things up a bit.

    The new blend com es from the outstanding 2005 vintage and is made by major Bordeaux producer Dourthe . This "new" Good Ordinay Claret is a blend of 60 per cent Merlot and 40 per cent Cabernet Sauvignon.

  • TØZ Rum

    Brand owner St Lucia Distilleries

    Produced in St Lucia, the Caribbean

    Size 70 cl and 50 cl

    Price EC$45, US$23

    Abv 40

    Markets Domestic and international

    Contact: andre.francis@saintluciarums.com

    St Lucia Distilleries launched TØZ Rum at this year's St Lucia Food & Rum Festival in November.

    The brand name TØZ was inspired by the troy ounce - the traditional measur ement when weighing precious metals.

    This boutique Caribbean distillery produces a wide range of medal -winning rums and rum liqueurs, including Bounty, Javalatté, Element Eight, Chairman's Reserve and Admiral Rodney.

    TØZ is a blend of 2 to 7 Year Old premium St Lucian rums, distilled in copper alembic pot and continuous stills, then aged in American white oak barrels before a final polish in vintage port casks. The result is a red-gold rum with a clean, slightly sweet raisin, vanilla and nut character. It is elegant and well balanced for sipping or mixing.

  • Ardmore Traditional Cask

    Brand owner Beam Global

    Spirits & Wine

    Produced in Scotland

    Size 70cl

    Price £24.99 , E35.83

    Abv 46

    Markets UK and travel retail (launching this year in the Netherlands, Germany and Australia followed by the US in 2008 )

    Contact: ardmorewhisky.com

    The new single malt Scotch whisky by Beam Global Spirits & Wine, Ardmore Traditional Cask, is described as "rich and peaty" and is for Scotch drinkers wanting to move from mainstream malts to those which are more complex. Ardmore is already one of the major malt whiskies in the Teacher's blend, but Traditional Cask is a double -matured single malt. First put in ex-bourbon barrels , its second maturation is in handmade quarter casks, similar to those used 200 years ago. The second stage is said to give a well-rounded flavour with a peat smoke richness and a delicate sweetness.

  • Jameson Rarest Vintage Reserve

    Brand owner Pernod Ricard/Irish Distillers

    Produced in Co Cork, Ireland

    Size 70/75cl

    Price E400, US$400

    Abv 46

    Markets Worldwide and travel retail

    Contact: irishdistillers.com

    Ireland's biggest whiskey export has added a fourth blend to its Jameson Reserve range. Launched in October, Jameson Rarest Vintage Reserve joins Jameson 12 Year Old Special Reserve, Jameson Gold Reserve and Jameson 18 Year Old Limited Reserve, and contains the oldest and rarest whiskies stored at Irish Distillers' facility near Cork.

    Only 13,000 9-litre cases of Jameson Rarest Vintage Reserve were produced.

  • The high-flyers

    This year's DI Travel Retail Awards saw premium products, innovative packaging and creative concepts battle it out for their respective crowns

    The duty-free and travel-retail business may only generate a small part of drinks companies' overall turnovers, but it has always punched above its weight. It attracts a diverse, affluent and knowledgeable customer base, and has proved time and again it is a fantastic brand shop window, as well as the ideal place to sell super-premium products and test new launches.

    The US$5 billion trade faces undoubted challenges, not least the aviation security restrictions on liquids, which have done so much to damage consumer confidence in duty-free shopping in the past year. Yet the duty-free sector is buzzing with new ideas, creativity and dynamic individuals, who are doing their utmost not only to move the business forward, but to protect it from external threats.

    The inaugural Drinks International Travel Retail Awards 2007 honours a business, which despite its many problems, continues to have a bright future.

  • Tiger widens in-flight distribution amid growth

    Tiger Export PTE , the global distributor of Tiger Beer, has reported encouraging growth for its in-flight pouring business in Asia-Pacific and Europe.

    Tiger Export, a wholly-owned subsidiary of Asia Pacific Breweries , has benefited from the boom in low-cost air travel in both Asia and India, picking up listings with new carriers such as JetStar Asia. There has also been increased demand from existing customers such as Singapore Airlines, leading the company to try and improve global supply to in-flight accounts.

    In Europe, Tiger Export has managed to secure its first major in-flight listing for Tiger beer with Irish national carrier Aer Lingus. The brand is also available on a limited number of bmi and MyTravel flights.

    "We want to build on this [Aer Lingus listing]," said market development manager for Asia, Middle East and duty-free, Hoshang Mehta. "Tiger is positioned in Europe as a premium import and we are seeing fantastic results in our distribution and market coverage in domestic markets. "

    Back in Asia, Tiger Export PTE is experiencing good growth with airport retailer DFS Group at Singapore Changi airport. "We offer DFS a complete portfolio of beers ranging from popular local premium to import premium brands," said Mehta.

    "We are also going to be launching an exclusive hand-crafted range of beers there, which I believe will be a first in the industry."

    Despite these promising developments, Mehta believes that too many travel-retail operators fail to see beer's potential.

    "We think beer can be profitable, especially for import brands such as Tiger, and we wish that travel retail would be more open and experimental to try something beyond the ordinary.

    "The same goes for airlines," he added. "Most seem to carry one to two beer brands only and the tender award is often given to the lowest-priced and most internationally available mainstream brands."

  • WDF adds exclusive: Pinky vodka

    UK airport retailer World Duty Free has expanded its white spirits offer with the exclusive UK launch of Pinky vodka.

    The brand, which is produced with 12 botanicals, including violet and rose petals, giving it a bright pink colour, sold 300 bottles priced at £19.99 each in the first five days of being on the shel ves.

    Commenting on the launch, WDF head

    of category for liquor, Fraser Dunlop, said: "We are delighted to offer yet another WDF exclusive and, in this instance, such a beautiful one.

    "With a broad range of world-class brands, along with our many exciting exclusives, we

    are encouraging passengers to arrive early to take advantage."

  • Craft beers enjoy US airport boom

    HMS Host, the largest airport food and beverage operator in the US, has reported strong sales of imported and craft beers.

    "We see people ordering higher-end beer," said HMS Host vice-president concept development, Stan Novack. "They are bypassing premium brands such as Budweiser, Miller and Coors to order craft beers such as Sam Adams and Gordon Biersch.

    "Imported brands such as Heineken and Corona are doing well too . These days it seems having a discerning taste for beer is as important as having a discerning taste for wine in the US."

    Sales of premium light beers are up too. Best sellers in this segment include Heineken Premium Light, Amstel Light and Michelob Ultra.

    In recent years HMS Host has started to work with local breweries to operate region-specific airport bars. "In Oregon we have worked with Shipyard Brewing, while in California, we have worked with Karl Strauss, Redondo Beach Brewery, Manhattan Beach Brewery and Pyramid Ales," said Novack. "Gordon Biersch and Sam Adams are available at our [airport] bars throughout the US and, of course, we're still working with national distributors like Budweiser."

    HMS Host is also doing more to promote beer as an accompaniment to food. "We have created specific tasting promotions, where we have paired certain beers with certain foods," he added. "For instance, we matched Sam Adams beer with Crab Louis salads and crab cakes."

    Part of Italian travel catering giant Autogrill, HMS Host operates outlets at 19 of the US's 20 busiest airports.

  • Survey scotches price obsession

    Recent consumer research undertaken by Diageo has cast doubt on whether price is a key consideration for duty-free spirits buyers.

    The research challenges one of the cornerstones of the industry - that the channel must offer a significant price saving over the domestic market.

    The research consisted of interviews with more than 600 spirits buyers travelling through Singapore, Frankfurt and New York JFK airports. Half of the respondents were residents in the respective countries and half were foreign visitors.

    One of the research's key findings was that more than 80 per cent of travellers think travel retail is either "good value" or "very good value". Fifty per cent of respondents' total spirits purchases were made in travel retail and more than 40 per cent bought spirits every time they travelled .

    Another surprising find is that 65 per cent of buyers had no expectation of how much money they were going to spend on liquor before arriving at the airport. Moreover, half of respondents couldn't recall what price they paid in the duty-free store they had just visited.

    Global Travel & Middle East commercial director, Peter Jacobson, said: "In this industry we have an obsession with price as the main driver of purchases.

    "However, although purchasers will always say price is important to them if asked directly, our findings show that price is not the be all and end all of every decision."

  • ETRC welcomes EU support for its security label concept

    The EU Aviation Security Committee has given its backing to the European Travel Retail Council's proposal for a "unique identifier" label. The idea will allow liquids and gels bought by transfer passengers at approved non-EU airports to be officially identified.

    At present stringent EU aviation security rules mean that transfer passengers, who started their journeys from non-EU airports, risk having their liquid duty-free purchases confiscated by security staff.

    ETRC president Frank O'Connell described the security committee's decision as a "significant breakthrough for the travel retail industry. "With the backing of both the industry and the EU Aviation Security Committee we can now take the last steps to ensur e that transfer passengers from approved third-party countries can travel freely with their duty-free liquids. I would therefore reiterate our call to the industry to work with their national governments across the world to secure recognition from the EU."

    Although the exact design of the "unique identifier" label has yet to be finalised, D I understands it will be placed separately inside sealed, tamper-evident bags along with the goods. It will also be time sensitive, becoming inactive a round 36 hours after the purchase is made.

    The label will be ready for use by the end of the year and Singapore is expected to become the first country to get its aviation security regime officially approved by the EU.

  • Edrington releases 21 Year Old Highland Park exclusive

    The Edrington Group has released a new aged travel-retail exclusive reference for its fast-growing Orcadian single malt whisky Highland Park.

    The new 21 Year Old expression joins five other variants in the brand family, slotting in between the 18 and 25 Year Old references. Priced at US$99, the new 47.5 per cent abv whisky has already been listed with Pan-Asian duty-free retailer DFS Group and UK airport shop operator World Duty Free.

    Edrington's area director for global travel retail, William Ovens, said: "The introduction of the 21 Year Old extends our range of aged variants to six, so Highland Park has the widest range of aged expressions of any single malt brand in the channel."

    Duty free is the second biggest market for Highland Park after the UK.

    Sales grew year on year by 15 per cent - only bettered in the single malt sector by The Macallan .

  • Duty-Free

    • Duty-free distributor Haleybrooke International has struck a deal with Cognac Louis Royer to distribute Gold Flakes Supreme vodka in the Americas and other selected duty-free markets. The four-times distilled, US$55 French vodka, which contains 24- carat gold flakes, is launching simultaneously on the US domestic market.
    • Distilleria Bottega is to distribute two new Italian wine brands in duty-free in addition to its own range of grappas, liqueurs , sparkling wines, Cantine Al Bano Carrisi from Apulia and Lombardy-based Fratelli Berlucchi.
    • Heineken duty-free and travel retail global account manager airports, Melvin Broekaart, has left the company.
    • Erstwhile director of travel retail at Whyte & Mackay, Andy Lane, has been been given the same position at Ian Macleod Distillers. Lane had been working with Ian Macleod for the past six months as a freelance consultant to help shape the company's new travel-retail strategy.
    • The Glenrothes has launched a super-premium travel-retail exclusive reference. The Glenrothes 25 Year Old will be available at leading duty-free retailers priced at £180 per 70cl bottle. Only 2,400 bottles have been released.
    • Balblair Highland Single Malt Whisky has introduced a 1986 vintage exclusively for travel retail. Matured in American oak ex-bourbon casks this unchill-filtered malt is available in limited quantities. Rrp £55 for 1-litre duty-free.

  • Movers & shakers

    Following the retirement of Tim Braithwaite, Maxxium Global Travel Retail has appointed Laurent Cosson as commerical director and Jeremy Chapman as financial director. Both will report to president Erik Juul-Mortensen. Cosson was previously marketing manager for MGTR Europe South and Middle East .

    Patrick Ricard of Pernod Ricard has resigned his executive duties. He will continue as chairman of the board of directors and has recommended that managing director Pierre Pringuet becomes chief executive officer. Also retiring is Edward Demery, chairman of Justerini & Brooks, after 41 years.

    Lodovico Antinori has made Peter Ferguson international sales and marketing director of its new venture Campo di Sasso Distribuzione - a joint venture between the Antinori brothers Piero and Lodovico. Ferguson has worked at Veuve Clicquot, Mentzendorff, Robert Mondavi, MCD, Champagne Lanson's sales and distribution company and Jess Jackson's wine estates.

    Yalumba, Australia's oldest family owned winery, and the Institute of Masters of Wine have announced Joe Fattorini - wine educator, wine writer and all-round wine enthusiast as the winner of the Yalumba Scholarship.

    South African wine maker Danie de Wet has been elected chairman of the board of directors of KWV, the SA wine and brandy producer.

    Anthony Collet is the new international marketing manager for the major French wine producer Groupe Castel. Formerly with the London-based Spanish wine company United Wineries, Collet is based in Paris.

    The Boston Beer Company has appoint ed Gregg Tanner as an independent class B director. He is executive vice president and chief supply chain officer of Texas-based Dean Foods.

    Percy Fox has made Christina Cavender its brands activation manager for Vranken-Pommery Monopole in the UK.

    Terlato Wines has unveiled Michelle Pae as its new director of national accounts. She directed beverage strategies for Olive Garden Restaurants and is president of the Millennium Group .

    Argentinian wine producer Gustavo Arroyat is Trapiche's new export manager for the UK. Prior to joining Peñaflor, which owns Trapiche, he worked for rivals Familia Zuccardi.

    UK retailer Waitrose has appointed a new spirits buyer - Michael Simpson-Jones. He replaces Giles Fisher who has become central buyer for beers, spirits and tobacco.

  • Diary

    • Wine+

      January 16-17 2008

      Olympia, London

      wineplus.co.uk
    • Millésime Bio

      January 28-30

      Perpignan, France

      millesime-bio.com
    • Salon des Vins de Loire

      February 4-6

      Angers Expo Congrès, France

      salondesvinsdeloire.com
    • Climate Change & Wine Conference

      February 15-16

      Hesperia Tower Hotel, Barcelona

      thewineacademy.com
    • Vinisud

      February 18-20

      Montpellier, France

      vinisud.com
    • Alimentaria

      March 10-14

      Fira, Barcelona, Spain

      alimentaria.com
    • Prowein

      March 16-18

      Düsseldorf Exhibition Centre, Germany

      prowein.de
    • Vinitaly

      April 3-7

      Verona Exhibition Centre, Italy

      vinitaly.com
    • Duty Free Show of the Americas

      April 6-10

      Fort Lauderdale, Florida

      iaadfs.org
    • World Whiskies Conference

      April 15-16

      SAS Raddis on, Glasgow

      whiskyconference.com
    • VDP Weinbörse

      April 27-28

      Rheingoldhalle, Mainz, Germany

      vdp.de

  • Face to face: Monika Reule

    Managing director at the German Wine Institute

    What concerns you most about the industry?

    The increasing number of regulations it is facing, especially with regard to the ongoing discussion in Brussels on advertisement restrictions and labelling of alcoholic beverages. Bans and warning labels are not the right way.

    What one up-and-coming trend do you think is important?

    It would have to be lower-alcohol wines . I think that there is increasing demand for wines with less alcohol.

    What do you think of the EC plans to reform the European wine industry?

    The whole German wine sector is unanimous in the protest against the suggestions of the EU Commission. The current plans would lead to competitive disadvantage for the German wine industry and this to us is unacceptable.

    How does the institute intend to make wine drinkers aware of regional differences?

    In export markets it is our primary concern to raise awareness of Germany as a wine -producing nation. Our communication will focus on German grape varieties.

    W e will help with information about the typical local grape varieties and regions, as well as tourist information .

    What is your main priority at the institute?

    We have just recently adopted our new strategic guidelines for 2008-2012. The next step will be the development of promotional campaigns to implement these strategies .

    With the exception of Riesling, what is the next most exciting German grape variety?

    Over the next five years we will focus on Pinot Noir . Germany is the third-biggest producer of Spätburgunder in the world.

    What is your favourite German wine and food combination?

    I find myself turning more and more to our noble sweet wines paired with a really sweet dessert.

    What do you do to relax ?

    I enjoy reading and listening to classical music. On the more active side I enjoy hiking, American square dancing, riding my motorbike and skiing.

  • US Briefs

    • Russell's Reserve Rye Whiskey, a 6 Year Old small-batch rye made by Austin Nichols, master distiller Jimmy Russell and his son, Eddie Russell , has entered the super-premium market. Much of the new interest in rye is driven by bartenders who like its complexity in various cocktails, such as the Manhattan . Pernod Ricard has also rolled out Wild Turkey American Spirit, a 15 Year Old 100 per cent proof bourbon, also made by Jimmy and Eddie Russell.
    • Sanford & Benedict, a classic California vineyard, has been purchased by the Terlato Wine Group. The vineyard is considered one of the top Pinot Noir vineyards in the state. Terlato is a wine production and marketing group based in Chicago that already owns Sanford & Benedict winery.
    • Paul Dolan, former winemaker for Fetzer vineyards and pioneering grower of organic grapes, is launching his own range of organic and biodynamic wines . The organically grown Sauvignon Blanc, Zinfandel, Cabernet Sauvignon and Chardonnay are from Mendocino County. The line will expand as more organic vineyards come into production.
    • Imported wines continue a strong run in the US, with imports up by 7 per cent in August . The value of imports was up by 12 per cent.
    • Although the final numbers have not yet been crunched, it appears that the 2007 California wine harvest will be smaller than predicted . This could lead to lower bulk wine inventories for some varieties.

  • Success for inaugural festival

    The first Independent Spirits Festival was held in the US in October and sponsors have already announced plans for a second next year.

    The aisles at Hotel W in San Francisco were crowded with dedicated spirits enthusiasts, eager to taste exotics such as Black Truffle Vodka from Modern Spirits Distillery, Blood Orange Vodka from Charbay Distillers and Desert Juniper Gin from Bend Distillers.

    Allison Evanow, the founder and chief executive of Square One Organic Vodka, who was there offering samples of her trendy spirit, said : "What was most striking was the level of genuine interest from the consumers. They were there to learn about the spirits, not just have fun .

    "We were one of the few tables serving cocktails. We enjoyed being able to showcase the vodka the way most people drink it. It was a hugely engaging upscale consumer event."

    The 2008 Festival will also be held in San Francisco and sponsored by CelticMalts (celticmalts.com).

    CelticMalts also sponsors the Whiskies of the World Expo which is scheduled for San Francisco in April.

  • Doubts cast over food matching

    Forget about port and Stilton and think malt whisky - that was the message at a single malt and cheese tasting held at the Cheese School of San Francisco.

    It was the first such tasting held in the US and tasters were somewhat sceptical.

    Cheese authority Laura Martinez (left), author of The Everything Cheese Book, argued that whisky actually partners better with cheese than wine does.

    The s ceptics were left unconvinced, but all agreed it was an intriguing concept with more work needed on individual pairings. The cheeses, all from California were certainly bold enough to link with the malts, but they seemed to stand apart, rarely complementing one another.

    Martinez said she expected the tasting to open the way for further exploration of cheese and spirits pairings.

    The tasting was sponsored by Ladybank, a members-only distillery, as part of a series of events to attract members.

  • Wine role for Newman's range

    Film legend Paul Newman decided there was something missing from his 100-plus Newman's Own product range, so he's adding wine to the mix.

    The deal is currently being kept under wraps, but we did learn that a Newman's Own Cabernet Sauvignon and Chardonnay will be unveiled early next year.

    The wine will be made by Rebel Wine , a joint venture between Three Thieves and Trinchero Family Estates, both based in Napa. As with all Newman's Own ventures, all after-tax profits will go to charity.

    One of Newman's first products, a wine vinegar, was packaged in old wine bottles.

    "We have come full circle," the actor and philanthropist said in a statement. "We 've gone back to wine bottles, but this time we are filling them with a wine that will complement my salad dressing and pasta sauce. Wine was the only thing missing at dinner time - now the meal is complete."

    A spokesperson for Trinchero, one of California's largest wineries with annual production of a round 10 million cases, said the bottle labels " won't be released until January."

    Rebel Wine is known for the innovative packaging of its Three Thieves wines. They were the first Napa wines to be sold in a 1-litre screwcap jug and sold in a TetraPak.

    The spokesperson confirmed the wines would be sourced from "premium coastal vineyards" and would not, at least in the beginning, be organic. Many of Newman's other products are organic. The wine will sell at US$16 for a 75 cl bottle.

    Newman's venture into the wine business follows the news that E&J Gallo will market a Martha Stewart line of wines next year - a venture that is most decidedly "for profit".

    Since the launch of Newman's Own in 1982, the company has donated a round $200 million to various charities.

  • EU providing extra e500m for wine reform

    Wineries across Europe are set to receive e510 million over the next year to adapt their vines and production methods to better meet consumer demand, the European Commission has announced.

    The provisional funding plan forms part of a restructuring programme within the EU's annual wine budget. France, Spain and Italy, as the largest producer countries, will again take the lion's share of the e510 million - e162 million, e110 million and e101 million, respectively.

    The funding comes this year as the commission prepares to push through major reform to make the EU wine sector more competitive. A similar amount of funding - around e500m - is currently used to collect and distil EU wines that won't sell, as policy critics, such as agriculture commissioner Mariann Fischer Boel, would like to see stopped.

    Fischer Boel has repeatedly said she wants more money to be directed at improving Europe's wine quality and marketing. These were central tenets of the commission's wine reform proposal, released in July, alongside a more controversial plan to "grub up" 200,000ha of vines to curb overproduction.

    "Improving the quality of the wine is a top priority if we are to fend off the challenge of New World ," Boel said.

  • Bacardi building new plant for Dewar's Scotch

    Competition is hotting up in Scotch whisky after Bacardi said it had finalised a deal to buy land in Scotland in order to build a new facility.

    The Bermuda-based drinks group said it had signed a deal to buy a 43ha stretch of land in central Scotland, set to be developed for second maturation, blending and storage of its portfolio of Dewar's Scotch whiskies.

    Many Scotch makers are eyeing expansion on the back of rising exports and high anticipation over India's agreement to lower import tariffs on wine and spirits.

    Bacardi's planned new facility is to be based in South Lanarkshire and will form part of the its US$250 million (£118.7 million) Scotch sector expansion over the next 10 years. It is a direct response to growing demand for Dewar's in Asia and other emerging markets, the group said.

    Construction on the new facility is not expected to be completed until 2018, but the first part of the plant is planned to be operational by 2009 - capable of handling around one million casks.

    Bacardi's announcement follows a similar statement by fellow drinks maker Diageo last month, after local councillors cleared the group's proposed £40 million malt distillery. Diageo has its own £100 million expansion plan for Scotch whisky.

    The Scotch Whisky Association said India's commitment to lower import tariffs is driving expansion among both large and small distillers.

  • Fortune divests of wine

    Fortune Brands has strengthened its hand in the race to buy Absolut vodka by selling off its American wine business to Constellation for US$885 million (£428 million).

    The group said it was a strategic move to focus more on the spirits sector of the drinks industry, in which it sees itself as a long-term global rival to Diageo and Pernod-Ricard.

    Chief executive Norm Wesley said: "Positioning our business for higher returns is a key part of Fortune Brands' strategy to maximise shareholder value. Because the wine industry is lower margin and more capital intensive than spirits, it's naturally a lower return segment relative to our spirits business."

    The sell-off signals to rivals that Fortune is serious about its global spirits role, and improves its financial clout in the forthcoming battle for Absolut firm Vin & Spirit, which is being sold off by the Swedish state monopoly.

    Absolut would be a boost for the Fortune portfolio, which includes Courvoisier, Laphroaig and Jim Beam, but is arguably light in white spirits.

    "The sale increases our financial flexibility," said Wesley, "and will enable us to more sharply focus resources on the higher return premium spirits segment of our business."

    The deal will reinforce Constellation's position as the biggest single player in the US and global wine markets, giving it brands such as Clos du Bois, Geyser Peak and Wild horse .

    The combined sales of the brands in the sale topped 2.6 million cases in 2006, with revenue of US$214 million, and strengthens further a US wine portfolio that already includes Paul Masson, Robert Mondavi and Echo Falls.

    Fortune - which said it received multiple offers for its wine business - is to retain its Harveys sherry and Cockburn's port business.

  • Russian beer dispensers to sell globally

    A Russian company has created a device that it says allows retailers to more easily sell draught beer from stores.

    Pegas, from Novosibirsk-prodmash, has been available in Russia for the past four years and is now being launched internationally. The dispenser is said to succeed where others may have failed because it does not produce foam and fills bottles three times faster.

    "Excessive foaming means extra time for customers, extra energy for staff and significant beer wastage, and this makes selling draught beer unprofitable," said Olga Zobova of Novosibriskprodmash.

    The device can be installed into a beer column with or without a standard beer tap and can also be connected to a beer chiller or a beer line.

    It is designed for use with plastic bottles, which the company says are lighter, stronger and cheaper than glass. See [http://www.beerinnovations.com].

  • Deals

    • Rémy Cointreau USA has signed an agreement to import wines from Tuscan producer Barone Ricasoli, based near Siena in the Chianti Classico denomination.
    • Tennessee Police have found 2,400 bottles of Jack Daniel's whiskey hidden in storage houses, including one bottle dating back to 1914 - thought to be worth up to US$10,000. The stash has been valued at US$1 million.
    • Australian family-owned winery Yalumba is the Australia and New Zealand winner of the International Green Apple Award for environmental best practice.
    • McWilliam's Wines is to take over Australian winemaker Evans & Tate's Margaret River business, which went into receivership in August. McWilliam's has been distributing the company's wine brands, including Margaret River Classic, Gnangara and X&Y, while bids were considered .
    • Russian vodka producer, Synergy has announced its intention to float on the Russian stock market. The company, whose brands include Beluga and Russian Ice is planning an initial public offering to raise funds to develop existing spirits brands and make further acquisitions .
    • Pernod Ricard Italia is to sell its Canei semi-sparkling wine brand to distributor Baarsma Wine Group Holding so it can "concentrate on brands in its portfolio". Pernod Ricard Italia will continue to produce the wine in Canelli, Piedmont, while BWGH will distribute Canei worldwide through its company Winetracks International.

  • US vodka to play Trump card in Russia

    The vodka named after US entrepreneur Donald Trump is being launched in Russia.

    Brand owner Drinks Americas has signed a deal for a minimum annual order of 50,000 cases of Trump super-premium vodka with Russian distributor Recolte.

    The first 10,000 cases, worth US$1.5 million, will begin shipping in January.

    Recolte is owned by Alexander Timofeev, a former director general of Kristall, one of Russia's largest distillers.

  • Czech brewer Zatec plots western front

    Czech brewer Zatec is looking west to ramp up the contribution exports make to its business.

    Brewery director Martin Kec said the company wanted to build on its existing sales for its premium lager in the UK - which accounts for 85 per cent of its 30,000 hl of production through Coors Brewers - and in the US, where it signed a distribution agreement with Washington State-based Merchant du Vin in February.

    The brewery also exports to Australia, Sweden and Finland and is looking to expand its presence in each.

    "At the moment 90 per cent is sold in the Czech Republic and only 10 per cent in exports, but we hope to reach 50:50 over the next three years," said Kec.

    Imported beers have consistently outperformed rather stagnant markets in both the US and the UK over the last couple of years.

    Kec said Merchant du Vin had been chosen in the US because of its experience in niche products such as Belgian beer. "They're in all the US states and are very focused . It's good news for us - getting the beer into markets where we want to be.

    "We want to be in the expensive part of the market, such as good restaurants and bars . We're proud that it's one of the most expensive beers on the market and people want to try it because of that."

  • Moldovan wine returns after 20-month ban

    Russia has allowed Moldovan wine to be sold on the country's shelves once again, ending a 20-month import ban.

    Wine imports from Moldova and Georgia, both former states of the Soviet Union, were halted in 2005, after Russian health officials said the wine was not fit for consumption.

    But both countries saw the ban as a political move after Moldova and Georgia cultivated relations with the European Union.

    The lifting of the ban is a huge boost for the Moldovan wine industry, which in 2005 sent 80 per cent of its exports to Russia.

    The loss of trade in the intervening period is believed to have cost the industry about US$200 million.

    The ban has created a shift in the wine market in Russia, Moldova and Georgia.

    Russian wine consumers were forced to look to new markets, trying wines from Europe and the New World, while Moldova and Georgia have succeeded in securing new international markets.

    Meanwhile, Russia continues to block imports of wine from Georgia.

  • SABMiller agrees to buy Grolsch

    SABMiller has agreed a deal to buy Dutch brewer Grolsch for €816 million, as consolidation across western beer markers gathers pace.

    SAB said it would offer Grolsch shareholders €48.25 per share, an 84 per cent premium on the Dutch brewer's average closing price.

    The move is the latest in a new round of brewing industry consolidation, following last month's merger between Molson Coors and SAB in the US, and the proposed takeover of Scottish & Newcastle (S&N) by Heineken and Carlsberg.

    Both SAB and Grolsch boards said they supported the deal, in marked difference from the increasingly ugly battle over S&N.

    Grolsch has a strong position in western European beer markets, but SAB said it wanted to expand the brand into emerging markets such as Latin America and Eastern Europe.

    Graham Mackay, chief executive of SABMiller, said the deal would build on Grolsch's 400-year heritage by establishing "new positions in the most important emerging beer markets around the world".

    Ab Pasman, Chief Executive of Grolsch, said: "When we were asked to consider SABMiller's proposal, the key question was if greater value could be achieved .

    " This appeared to be the case. We believe SABMiller's intended offer delivers benefits to all our stakeholders."

  • Hardys plans centralised winery

    The Hardy Wine Company has announced plans to move winemaking and packaging to one central winery, as part of an efficiency drive by owner Constellation Brands to save US$5 million a year.

    Winemaking will move from the Buronga winery to Berri Estates, the largest winery in Australia, for the start of the 2008 harvest. Packaging will move in May 2008.

    Some jobs are expected to be lost , but some staff will remain at the winery to support local grape growers and continue grape processing there.

    Rob Sands, Constellation Brands president and chief executive, said: "Given the ever-changing global marketplace, we continuously review our operations around the world to ensure maximum asset utilisation and to better assure that we are well-positioned for ongoing long-term growth and value creation."

    The company said it was expecting to incur costs of US$16 million for the move, but would save US$5 million annually by the end of the 2009 tax year.

  • Czech brewer creates 21 per cent abv beer

    Czech brewer Drinks Union has launched what it describes as the country's strongest beer, with an alcoholic content of 21 per cent. The dark amber brew will be on sale in Germany under the label Doppel Doppel Bock, and there are plans to export it to the US market.

    Daniel Vasha, the brewery's technical director, said Drinks Union was the only one among the country's seven major breweries to produce beer of such strength. "You could describe it as a liqueur beer," he said. Based in Usti nad Labem in the north-west, Drinks Union is the country's fourth-largest brewery.

  • French fraud office in rosé brand battle

    Arguments between winemakers over a new rosé wine brand in Provence have forced France's national fraud office to intervene.

    Provence's largest AOC union, Côtes de Provence, has accused local firm PGA Domaines of "stealing" the region's name for its new Rosé de Provence wine. Rules prevent wine brands in France from using any part of an existing AOC name.

    The feud is the latest example of a power struggle between France's wine appellations and a new wave of brands, as the sector battles to regain ground in foreign markets.

    Quarrelling over the PGA Domaines brand became so bad that French fraud police, more accustomed to handling high-level corruption cases, were called in to investigate the dispute earlier this year.

    They have since sided with PGA Domaines, but lawyers for Côtes de Provence remain on standby to sue the group if France's national appellation body, INAO, refuses to accept the Rosé de Provence brand.

    James de Roany, head of PGA Domaines, told Drinks International: "If INAO was not to agree on our brand, we will not stop using it."

    Surging rosé wine sales in the key UK market have heightened competitive tension in Provence, where 80 per cent of wine produced is rosé, according to union figures.

    De Roany said he would have no problem with other regional wineries printing "rosé de Provence" on their labels to simplify their offering for foreign consumers.

    " Provence rosé wines are far too weak in export markets and that they are not profiting enough from the boom in this category of wines," he said.

    "Provence producers claim that they are the 'world leading rosé producers', but this is not true if they only export 10 per cent of their production."

    Plans to launch Rosé de Provence in the UK are under way, and de Roany said feedback from distributors had been very positive.

    But Marc Rolley, head of Côtes de Provence, said he was determined to stop the brand. "We have to respect the consumer and it seems to us that this brand is not being very honest with consumers," he said.

    "The appellations AOC de Provence or Rosé de Provence do not exist and have never existed, but this brand suggests they do."

    Many see the dispute as part of a long-running debate over the creation of one regional AOC to cover the whole of Provence. The Côtes de Provence union has traditionally opposed this, because it fears losing power.

    But some of Rolley's colleagues have openly supported PGA Domaines in internet chat rooms . So too have other AOCs in Provence. And DI now understands that Côtes de Provence may compromise by allowing all regional wine firms to use "rosé de provence" on labels in export markets.

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