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24 10 Diageo Supports the Fight Against Higher Hospitality Taxes The world’s largest drinks maker takes a stand. 12 The Beverage Network’s 10 Mixologists to Watch Find out who America’s savviest new bartenders are, and what trends they are setting. 22 Speak Easy with Kevin O’Neil Kevin O’ Neil, executive VP of sales, U.S. spirits at Diageo, talks about innovation, value and the growing ready-to-drink category. 24 Discovering Cachaça Brazil’s national spirit is now known for more than just its iconic caipirinha. 30 Blazing the Bourbon Trail After half a century, Maker’s Mark bourbon is still synonymous with American culture. 4 Publisher’s Page 6 Insider’s View 7 Retail Management By Jon Hurst 8 Off-Premise Viewpoint By Peter Kessel 8 On-Premise Viewpoint By Peter Christie features September 2009 BAY STATE BEVERAGE GUIDE 3 1A BRAND INDEX 25A ABCC DECISIONS 31A MASSACHUSETTS LICENSE SALES & TRANSFERS Brand Index departments CONTENTS 32 special report The French Evolution 32 Introduction by Kristen Bieler 36 Southern France: Found in Translation by Daina Paulin 38 Côtes du Rhône Villages: At the Intersection of Quality and Value by Roger Morris 40 Affordable Bordeaux: Values from the World’s Most Famous Region by Kristen Bieler 42 Red Burgundies: Our Quest to Find Value by Ed McCarthy 44 Beaujolais: Shattering the Myth by Alia Akkam 46 Champagne & Sparkling Wine: Bubbling Up All Over by Jean K. Reilly 48 The Spirit of France: From Apéritifs to Cognac by Jeffery Lindenmuth 53 French Beer Craft: Redefining the Image of French Beer by Daina Paulin 48 55 New Products & Promotions 57 Talkin’ Tech By Ian Griffith 58 Around Town 60 Newsfront

Sept 09 PDF Final

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10 Diageo Supports the Fight Against Higher Hospitality Taxes 42 Red Burgundies: 60 Newsfront 25a abCC deCisions 36 Southern France: 40 Affordable Bordeaux: 8 Off-Premise Viewpoint 24 Discovering Cachaça 30 Blazing the Bourbon Trail September 2009 bay state beverage guide 3 53 French Beer Craft: Our Quest to Find Value by Ed McCarthy 22 Speak Easy with Kevin O’Neil 55 New Products & Promotions 44 Beaujolais: 38 Côtes du Rhône Villages: 48 The Spirit of France: 4 Publisher’s Page

Citation preview

Page 1: Sept 09 PDF Final

24

10 Diageo Supports the Fight Against Higher Hospitality TaxesThe world’s largest drinks maker takes a stand.

12 The Beverage Network’s 10 Mixologists to WatchFind out who America’s savviest new bartenders are, and what trends they are setting. 22 Speak Easy with Kevin O’NeilKevin O’ Neil, executive VP of sales, U.S. spirits at Diageo, talks about innovation, value and the growing ready-to-drink category. 24 Discovering CachaçaBrazil’s national spirit is now known for more than just its iconic caipirinha. 30 Blazing the Bourbon TrailAfter half a century, Maker’s Mark bourbon is still synonymous with American culture.

4 Publisher’s Page

6 Insider’s View

7 Retail Management By Jon Hurst

8 Off-Premise Viewpoint By Peter Kessel

8 On-Premise ViewpointBy Peter Christie

features

September 2009 bay state beverage guide 3

1a brand index

25a abCC deCisions

31a MassaChusetts LiCense saLes & transfers

Brand Index

departments

contents

32

special report The French Evolution

32 Introduction by Kristen Bieler 36 Southern France: Found in Translation by Daina Paulin 38 Côtes du Rhône Villages: At the Intersection of Quality and Value by Roger Morris 40 Affordable Bordeaux: Values from the World’s Most Famous Region by Kristen Bieler 42 Red Burgundies: Our Quest to Find Value by Ed McCarthy 44 Beaujolais: Shattering the Myth by Alia Akkam 46 Champagne & Sparkling Wine: Bubbling Up All Over by Jean K. Reilly

48 The Spirit of France: From Apéritifs to Cognac by Jeffery Lindenmuth 53 French Beer Craft: Redefining the Image of French Beerby Daina Paulin

48

55 New Products & Promotions

57 Talkin’ Tech By Ian Griffith

58 Around Town

60 Newsfront

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4 bay state beverage guide September 2009

Bay State Beverage Guide Massachusetts Edition

Volume 1, No. 9

Bay State Beverage Guide is devoted to the interests and welfare of the retail spirits, wine and beer licensees of Massachusetts. Published monthly by Vinegar Hill LLC, D/B/A Bay State Beverage Guide, 84 Sherman Street, Cambridge, MA 02140. Telephone: 617-864-1677. Fax: 617-864-1655. Subscription rates are: United States - $60 per year; Canada - $75 per year; Foreign - $99 per year. Postmaster, please send changes to: Bay State Beverage Guide, 84 Sherman Street, Cambridge, MA 02140. Nothing may be reprinted or reproduced in whole or in part without written permission from the publisher. Contents copyrighted 2009 by Vinegar Hill LLC.

PublisherTerence F. Connaughton

[email protected]

editoriaL

Managing EditorKristen Wolfe Bieler

EditorAlia Akkam

Assistant Editor Daina Paulin

Contributing EditorsDale DeGroff, Mary Ewing-Mulligan, David T. Kratt, Jeffery Lindenmuth,

Ed McCarthy, Gregg Glaser, W.R. Tish, Jean K. Reilly

art & design

Art DirectorLarry Lee

Graphic DesignerDana Buonincontri

Assistant DesignerJosue Romero

advertising

Terence F. Connaughton617-864-1677

[email protected]

publisher’s page

‘Never leave a meeting with-out booking the next one’ was a rule of thumb ex-plained to me in my early

days as a national accounts rep some years ago. Although I found the phrase itself very catchy, the underlying message didn’t come as much of a surprise. What did come as surprise to me, working this channel however, was the amount of time I would spend creating powerpoint presentations for meetings. I’m talking presentations non-stop—charts, graphs, logos—“the works”. Honestly, I would spend hours customizing presentations for a meeting that sometimes lasted less than 20 minutes.

I often tell the story of one of my first meetings with a buyer based in Florida. After a few last minute tweaks to my presentation on the plane ride south, I de-planed thinking my final product was nothing less than a work of art. I was sure to dazzle him and get the order. I arrived to the buyer’s office in one piece and the meeting got off to a great start. But in seconds, things turned sour when he decided to rip one of the stapled pages from the rest of the presentation. I was nearly reduced to tears but I managed a quick recovery. He then took the ripped page titled “beer category trends” and proceeded to turn it upside down. With a puzzled scowl he pointed to my very fancy chart, now upside down and said

“you know, the guy before you just showed me a chart saying these were the beer cat-egory trends”…..

And he may well have been right. Let’s face it, we all read industry-related ‘stuff” whether it’s certain publications or articles or industry experts because we all want to keep a pulse on what’s hot and

what’s not. But sometimes we can read so much that it seems lines get crossed and it all begins to blur. One report says cock-tails and high-end tequila, another article references organic wines, while another industry expert touts micro-distilleries as the next hula-hoop. While some trends are questionable depending on the source, there is one trend that none of us in this industry can dispute. Today’s consumer values choice and selection. Your customers expect to see your shelves filled with some of the latest and greatest brands, products, and packages that this industry offers.

And so the bottom line is that mak-ing practical business sense of all the trends we read about isn’t always easy. That is why, over the next few weeks you should take advantage of the numerous trade shows scheduled around the Bay State (see our calendar of events). Trade shows are a great way to see these new products and to learn all about the trends from local wholesalers and supplier rep-resentatives. Trade shows also serve as a great time to network with those of us who have chosen to make a career out of this industry—whether at retail, at wholesale or as a supplier.

All I ask is that if a sales rep pulls out a Powerpoint presentation, maybe cut him a little slack….

Terence Connaughton, Publisher

[email protected]

Power Points

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6 bay state beverage guide September 2009

ACROSS THE COUNTRY

NATIONAL: CONGRESS TO CONSIDER MANDATORY IGNITION INTERLOCKS The issue of ignition interlocks for first-time offenders is gaining traction in the U.S. as Congress is set to debate a bill on the sub-ject this fall, according to an article in USA Today. The latest federal transportation funding bill would require all 50 states to mandate the device for anyone convicted of drunk driving. If not they face losing fed-eral highway money, similar to when Wash-ington pressured states to change the legal drinking age from 18 to 21.

NATIONAL: U.S. HOUSE PASSES FOOD-SAFETY BILLThe National Restaurant Association praised members of the U.S. House for passing a wide-ranging measure to overhaul the Food and Drug Administration and address prob-lems with the nation’s food supply. The Food Safety Enhancement Act of 2009, or H.R. 2749, passed by a vote of 283 to 142. The measure is designed to strengthen the coun-try’s food safety system and respond to recent food poisoning outbreaks involving items like peanut products, peppers and spinach.

NEW YORK: NY DEMOCRATS REINTRODUCE WINE BILLDemocrats in New York state have re-intro-duced legislation that would allow wine sales in grocery stores. Recall that a similar bill was dropped from the state budget in the spring. The bill would also allow store owners to re-ceive licenses quicker; allow liquor stores to have ATMs and sell snacks and non-carbon-ated drinks; extend hours of operation for li-quor stores (8am-3am); and make ID checks more stringent. The bills are in committee in

the Senate and Assembly. The state is expect-ed to be called into special session later this year to address its budget deficit, and could review legislation such as this at that time.

SUPERMARKET SALE OF LIqUOR BILL GAINS STEAMState lawmakers are again reviving a mea-sure that would allow the sale of wine and hard liquor in supermarkets and drug stores. The bill, first proposed by Governor Da-vid Paterson as a way to bring in as much as $160 million in revenue to state coffers, was not included in the final fiscal year 2010 budget. However, Manhattan Sen. Liz Krueger recently reintroduced the measure with some caveats for liquor store owners. Sklerov said the new proposal will allow li-quor stores to sell wholesale wine and liquor to restaurants and catering halls in the dis-trict. Currently, only liquor wholesalers are allowed to do this. The new proposal has 11 co-sponsors, including Brooklyn Senators Martin Dilan, Carl Kruger, John Sampson and Kevin Parker. But Michael Correra, chair of the Metropolitan Package Store Association (MPSA) and owner of Michael Towne Wines & Spirits, located in Brooklyn Heights, said the organization he represents remains completely against the idea. The measure is expected to be debated when the legislature reconvenes in January.

NEW JERSEY: TAx INCREASENew Jersey’s tax also took effect August 1st, causing distributors to pay an extra 25% on wine and spirits but not beer. The extra tax is expected to raise about $22 million a year for the state and is charged by the gallon. For distributors, the new tax will amount to an extra 51 cents for a 1.75 liter bottle of whis-key, for example, and 3 cents for a standard bottle of wine. Jeffrey Warsh, executive di-rector of the New Jersey Wine and Spirits Wholesalers Association, said a $6.99 bottle of wine probably would be raised to $7.49 or even $7.99 from $7.02.

CONNECTICUT: POSSIBLE TAx HIKEConnecticut’s Gov. Jodi Rell proposed a $391 million tax hike last week on ciga-rettes, cigars, chewing tobacco, alcohol and businesses. She wants to raise taxes on alcohol by 10%, which her office claims would generate $8.4 million over the two years. Taxes in the state have not been raised since 1989. In response to the an-nouncement, Discus vice president Jay Hibbard said: “Instead, by simply allow-ing off-premise Sunday alcohol sales, the state can raise millions of dollars more, and avoid more cross-border sales and painful job losses. It’s unfathomable that in the middle of the worst recession in memory, they would not take a positive approach and give consumers a break.”

AROUND THE STATE

BOSTON: MA PACKAGE STORES MAY ASK VOTERS TO SHIELD ALCOHOL FROM SALES TAxJust days before the Commonwealth was set to start taxing alcohol sales, the Massachu-setts Package Stores Association said it is planning to file a ballot initiative to make li-quor exempt from sales tax. State lawmakers voted last month to increase the Massachu-setts sales tax to 6.25% from 5% and elimi-nate the longtime exemption for alcohol sold in liquor stores. Officials have estimated that taxing liquor will raise nearly $80 million for the cash-strapped state government. But the Massachusetts Package Stores Association predicts significantly lower revenue - about $50 million - and says that taxing alcohol in package stores will cause sales to plunge and cost the state hundreds of jobs.That’s because consumers will shop elsewhere, such as in tax-free New Hampshire, the group says. The group said its board of directors will decide whether to proceed with a ballot

Industry Legislation and Regulation

insider’s View

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September 2009 bay state beverage guide 7

initiative, which would include collecting signatures. The goal would be a new law that continuing to exempt alcohol sales in package stores from the state sales tax. The package store group has not proposed its own legislation in at least 15 years. In its last involvement in a ballot initiative, the group opposed an unsuccessful 2006 effort by supermarkets to expand the number of wine licenses for food stores.

Jon Hurst, president of the Retailers Association of Mas-sachusetts, said it is costly to run a ballot campaign and that liquor stores would need support from suppliers and others to mount an effective effort.Hurst said the retailers associa-tion would wait to see the effects of the tax increase before pushing forward with any repeal effort.Republican Charles D. Baker, who officially entered the governor’s race, has said he would try to lower the state sales tax if he is elected. In the meantime, state representative John Quinn is promoting a bill that would allow merchants to advertise that they will pay or absorb the sales tax on purchases. Current law prohibits retailers from making such claims but vendors think this type of advertising will increase retail sales, which will in turn in-creasing sales tax revenue.

BOSTON: CITY OFFICIALS SAY RED SOx MUST END OPEN BARDaniel F. Pokaski, chairman of the Boston Licensing Board, said the Red Sox will be told to “cease and desist’’ the practice of offering an open bar as part of $1,000-and-up packages for some of Fenway Park’s most coveted seats. But unlike other bars and restaurants that have temporarily lost their licenses for similar infractions of the state’s 25-year ban on happy hours and open bars, the Red Sox organization will not face further sanctions.

The all-you-can-drink Sox packages were available in the popular Green Monster sections above the left field wall as well as the right field pavilion and several premium seat sections. Prices ranged from $1,000 to as much as $32,000 for a package that included as many as 27 seats in the Green Monster’s section. The $1,000 “Ultimate Monster Road Trip Package’’ included a Green Monster ticket, a night at the Lenox Hotel, a limo ride to and from the park an on-field chance to watch batting practice. Unlimited Fenway food and beer, wine, and cocktails where also offered before and during the game.

HOPKINTON: $20,000 BOTTLE OF WINE STOLEN, RETURNED UNOPENEDThe $20,000 bottle of wine stolen from a Hopkinton li-quor store is back where it belongs. Boston Police recov-ered the bottle of 1945 Mouton Rothschild, which was stolen from Hopkinton Wine & Spirits. Store owner Clel-land Johnson said he was just happy to get the $20,000 bottle back unopened.

F our small business RAM members and I recently spent an hour on the phone with Governor Deval Patrick, Secretary Greg Bialecki of the Executive Office of Housing and Eco-

nomic Development (EOHED) and other key senior advisors to the Governor to discuss ways to keep the doors open for small employers across the Commonwealth.

The four RAM members were each family owned, independent retailers, with one to three locations—a pet and pet supply store, a furniture business, a bookstore and a shoe store. Each discussed in detail with the Governor their double digit premium increases of recent years and how those increased costs have affected their com-panies and their employees.

Governor Patrick was clearly concerned by the competitive dis-advantages small businesses and their employees currently face. He charged Secretary Bialecki to establish a plan of action by Labor Day to address the problem either by creating new competitive options for small business, or new regulatory oversight of the health insurers.

The Retailers Association of Massachusetts (RAM) has long supported legislation for Massachusetts small businesses to group buy and negotiate with the insurers in order to receive better rates. That ability was repealed over a decade ago for employers of 50 and under, and it is no coincidence that small business health insurance premiums have increased by double digits virtually every year there-after. While the state’s Group Insurance Commission (GIC) and the Mass Municipal Association’s group plan have both only seen low single digit increases for state and municipal employees in recent years, small businesses have seen consistent double digit increases and have been forced to raise co-pays and deductibles. Similarly, big businesses have been far more successful in controlling their premi-ums than their smaller competitors. And special deals allowing for certain groups to group buy and negotiate (such as banks and unions) only make the marketplace less fair and more discriminatory.

This discrimination in the health insurance marketplace has re-sulted in family premium plan differences of as much as $10,000 per year for small businesses versus big government and big business. In an environment in which employers must offer insurance and every-one must buy it this marketplace discrimination is economically and politically wrong.

RAM appreciates the Governor’s concern and interest in this vital issue, and his directive to make this an immediate priority to be addressed.

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

Raising Health Insurance Costs: A Big Issue for Small Business

operations management by Jon B. Hurst

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8 bay state beverage guide September 2009

W hile I imagine the snickering resonates loudest within the 10 mile borders surrounding our fair state, you don’t have to wait for a quiet moment in the middle of the night to

hear them laughing at us. Our neighbors are licking their chops like a rabid dog and welcoming our overtaxed and burdened residents with open arms. For New Hampshire and Rhode Island, it’s 24/7 and a big THANK-YOU to Taxachusetts.

While we endure the loss of business and re-examine our business and development plans, we still have arguments on both sides of the fence when it comes to the tax on alcohol. By now, most of you are aware that we have filed legislation to protect our right to move for-ward within the process of seeking that the tax on alcohol be put to a public vote in the form of a ballot question at the next election. The simplest of all solutions would result in the repeal of the sales tax and a return of the sales tax exemption for alcohol.

Within a broader discussion of the alternatives and in consid-eration of the state’s ongoing fiscal woes, should the hit on alcohol continue, there is still a debate of whether this is best accomplished by an increased excise tax or the collection of sales tax at the register. From a retailer perspective, the increase in excise tax is much easier administratively, allows us to raise the cost of the product, eliminates the collection hassles and allows us to try to remain as competitive as possible with our neighboring states. However, there most likely would be a floor tax imposed which I understand could amount to as much as a $10,000 minimum exposure to even a small retailer.

The flip side of the discussion reveals the elimination of the po-tential liability in the form of the floor tax but comes with added re-porting and collection responsibilities to the state DOR. Currently, your payment of taxes collected at the register is due by the 20th of the month following the collection month. There is a potential concern lurking out there that that this procedure might be changed to the current way tobacco is administered resulting in our paying the sales tax up front on delivery and resulting in considerable financial expo-sure from unsold floor inventory.

Personally, I believe the best option is none of the above and one that we don’t currently have. When we realize that currently, excise taxes makes up approximately 38% of the cost any given product, I can only imagine how this whole issue would have been changed turned and our competitive advantage restored if the public had the ability to read a simple, enhanced receipt.

Peter Kessel is the owner of THE WINExPRESS and the president of The MA Package Stores Association. The views and comments expressed above are personal and should not be con-strued to represent any opinions or official statement of any organization or entity.

“Sales vs Excise” Tax

off-premise Viewpoint by Peter Kessel

Ijust leased a car for three years. It’s a pretty simple process and it’s something that I have done for the past 15 years. I have had the same make all these years as I have found it

extremely reliable and safe. It’s a good product.So, this sounds like it should be easy, right? It should be,

but the lack of service that I have endured has made this a dreadful experience.

First, there is the dealership that I had used faithfully for all these years. I called the sales manager twice, got his voice mail, left messages and emailed him. He never returned my call de-spite having had known him for all these years. So, guess what I did? I went to another dealer.

The new dealer was great on negotiating the deal, but when I went to sign the papers and pick up the car the experience was absolutely awful. I have been in the dealership three times, spent over eight hours and spoken to practicly everyone in the dealer-ship. I was told by a salesman that something was broken only to have a technician tell me that he just didn’t know how to work it. Ugh!!!!

So, why is this relevant to you? Well, just like automobile dealers, your business has probably had its challenges over the past couple of years, and there are a ton of choices for the con-sumer to make. Secondly, your reputation and your customer loyalty are dependent upon satisfied customers. Thirdly, only a well-trained, front line staff can ensure your customer satisfac-tion regardless of your product and this requires training.

Car dealers have investments that run in the millions of dol-lars. Our operators make the same kind of investments in their businesses. If any of the actual owners of the dealership with which I have been working had any idea of the actual customer experience, they would have prevented it. I am willing to bet that they will never find out. But how many folks to you think I will tell about this bad experience?

Here’s the lessons learned: Business is tough enough out there right now. Don’t make it any tougher on yourselves than it need be. Make sure that your front line employees are trained, review service goals with them at every, single, pre-shift meet-ing. Train you managers to be observers and to encourage feed-back from customers. Don’t put your incredible investment in the hands of unskilled, front-line employees. If you help them get the skills that they need to succeed, your likelihood of suc-cess will improve proportionately.

I hope that this has been a helpful reminder for you. I know that I feel better!

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

Lessons Learned at the Car Dealership

on-premise Viewpoint by Peter Christie

Current Receipt Vodka $19.99 Sub-total $19.99 Tax $1.25 Total $21.24

Customer Informed Receipt Vodka $12.39 Sub-total $12.39 Excise tax $7.60Sales tax $1.25Total $21.24

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C urrently, beer, wine and spir-its are among the most heavily taxed consumer goods. The fed-eral government collects $8.1

billion in federal excise taxes annually on these products—$3.8 billion from spirits, $3.5 billion from beer and $667 million from wine. These figures don’t even include the additional $5 billion a year state and local governments secure on a yearly ba-sis. And now there is talk of spiking those numbers—forcing the consumer to spend more on affordable luxuries—even further to plug budget holes? Not as far as the industry is concerned.

The Dangers of Excise TaxesExcise taxes on beverage alcohol are particularly re-gressive, making it unfair for lower income families who are faced with tax burdens much higher than those making over $200,000. Further, it has been proven that, over time, an increase in federal excise taxes can lead to the destruction of jobs and lower tax revenues. In both 1985 and 1991, the last time excise taxes were raised, tens of thousands of jobs were destroyed, lead-ing to the loss of tax revenue at all levels of government. During a turbulent time, where the nation’s hospitality industry is already

shaky and derives much of its profit from the sale of beverage alcohol, imple-menting these measures can only mean that small, independent businesses will continue to suffer from the burden of gov-ernment-imposed taxes.

Taking a StandTo raise awareness of this pivotal issue, Diageo started sponsoring the website, www.axetaxesnotjobs.com, earlier this year. The national grassroots site is meant to edu-cate consumers, the hospitality industry and

the general public about all the threats as-sociated with beverage alcohol tax increases

and the negative impact they can have on their local communities. Through the site, visitors can connect with their local represen-tative, and let them know they don’t want more taxes.

Another interesting component of the site is the application of a tax calculator which allows consumers to find out how much of the average retail price of a 750 ml bottle of Smirnoff vodka is devoted to taxes in their state.

According to Guy L. Smith, executive vice presi-dent, corporate relations,

Diageo North America, “Alcohol is the highest taxed consumable product in the country. Data shows that further tax in-

creases will mean lost jobs and reduced tax revenue due to lost sales. It makes no sense to further penalize consumers who are already paying outrageously high taxes.The jobs lost are mostly at retailers and at bars and restaurants. These are most often minimum wage jobs held by those who are already vulnerable like a single mom work-ing two jobs. Most members of Congress want to do the right thing. And, they will listen to their constituents. But they have to hear from everybody. I urge anyone con-cerned about outrageously high alcohol taxes to visit www.axetaxesnotjobs.com and make sure their voice is heard by their elected officials.”

During the 2009 New York Bar Show in June, Diageo successfully signed up more than 700 people to the site while they sampled Jeremiah Weed Sweet Tea at the Jacob Javits Convention Center; bar owners were sent back to their establishments with axetaxesnotjob.com materials.

Diageo Supports the Fight Against Higher FederalExcise TaxesBy Alia Akkam

At the 2009 New York Bar Show, Diageo successfully attracted the trade in learning about www.axetaxesnotjobs.com

“It makes no sense to further penalize consumers

who are already paying outrageously

high taxes.”-Guy L. Smith

executive vice president, corporate relations,

Diageo North America

*AVERAGE

source: www.axetaxesnotjobs.com

WHAT PERCENTAGE* OF YOUR SALE IS GOING TO PAY TAXES?

INDUSTRY REPORT

Stop Tax Hikes

DiageoTax_NY_v2.indd 1 8/14/09 11:50:02 AM

10 bay state beverage guide September 2009

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September 2009 bay state beverage guide 55

new products & promotions

1

4

2

3

5

parrot bayis adding two new flavors to its line of

flavored rum

6

1 Parrot bay exPands with two new fLavors Parrot Bay is adding two new flavors to its line of flavored

rum. Parrot Bay Strawberry is wild strawberry rum filled with hand-picked berry flavor, while Parrot Bay Orange is a zesty orange rum with sweet, fresh and juicy flavors. Both new flavors are available in 50ml, 750ml, 1L and 1.75L sizes.

Visit www.captainmorgan.com

2 Panther rock wine Company LaunChes Motos Liberty CeLLars Motos Liberty, a new wine brand from Panther Rock Company,

has made its national debut. Decked out with a carefree motor-cycle-themed label, California-made Motos Liberty is available in two white wine varietals, the 2008 Pinot Grigio and the 2008 Chardonnay, and three red wines, the 2007 Merlot, 2008 Pinot Noir and 2008 Cabernet Sauvignon. Contact: 707-265-4050 or visit www.motosliberty.com

3 smirnoff exPands its Line with two new fLavors Smirnoff has added two new fruits to its diverse line-up of

flavored vodkas. Smirnoff Pear captures the flavor and aroma of a freshly picked pear, while Smirnoff Pineapple gives consumers a fresh and zesty pineapple taste. Both new flavors will be available in 50ml, 375ml replica, 750ml, 1L and 1.75L sizes. Visit www.smirnoff.com

4 Cabo wabo sPorts a new Look After more than 10 years on the market, Cabo Wabo Tequila

has received a makeover, giving the brand a fresh new look. The vibrant new design features clean lines and clear glass to showcase the color, brilliance and quality of the hand-crafted 100% Blue Weber Agave tequila. The four styles of Cabo Wabo, Blanco, Reposado, Añejo and Cabo Uno, will showcase the new packaging and will be available nationally.

Visit www.cabowabo.com

5 Jefferson’s reLeases its PresidentiaL seLeCt bourbon In 1991, Louisville’s renowned Stitzel-Weller Distillery closed

its doors. Seventeen years later, Trey Zoeller of McLain & Kyne stumbled upon a reserve bourbon, which the company is now bottling as Jefferson’s Presidential Select. This rich spirit, aged for 17 years, is available in extremely limited quantities to select markets and retail outlets.

Visit www.castlebrandsinc.com

6 george duboeuf LaunChes new Line of varietaL wines Les Vins George Duboeuf has released Patch Block, a line

of varietal wines from the Languedoc region of France. The wines, priced under $10, are blends of several patches or “blocks” of vineyards that each offer distinct qualities. The varietal line includes Sauvignon Blanc, Chardonnay, Pinot Noir, Merlot and Cabernet Sauvignon, each available in

750ml and 1.5L bottles, and will soon include Viognier and Rosé. Visit www.duboeuf.com

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56 bay state beverage guide September 2009

1 Zacapa xo CaPtures a new fLavor of ruM Zacapa XO is a special blend of rums created to commemo-rate the new millennium. This Guatemalan rum is distilled from only the sweetest first-crush sugarcane. The blended rums are aged between 6-25 years in a solera system consist-ing of barrels which previously held robust bourbon, delicate sherries, fine Pedro Ximenez wines and Cognac.

2 franzia family LaunChes Panther roCk wine CoMPany

Panther Rock Wine Company, a new wine company, has been created by the fourth generation descendants of the Franzia family who have produced wine in California for over 100 years. The new Napa, CA-based company launches with the release of three national wine brands: Masked Rider ($9.99), Motos Liberty ($8.99)

and Wild Hare ($6.99). All prices are SRP. Visit www.maskedriderwinery.com or www.motosliberty.com

3 ed hardy exPands wine Line-uP with new sParkLing wine Ed Hardy by Christian Augigier, known as the godfather

of the modern tattoo, is bringing its energy to the world of wine with a portfolio that includes Cabernet Sauvignon, Chardonnay, Rosé, Sangria, Pinot Grigio and new spar-kling white and rosé wines. Available through Luneau USA Inc., 203-222-7733

4 Joseph drouhin exPands its sCrew toP PortfoLio Beginning with the 2008 vintage of Saint-Véran wine,

Drouhin is implementing user-friendly screw-tops. The Saint-Véran line of wines, priced at $15.99 per bottle, joins the company’s Laforet Chardonnay and Laforet Pinot Noir screw cap offerings. Joseph Drouhin wines are imported by Dreyfus, Ashby & Co., in New York City.

Visit drouhin.dreyfusashby.com

5 fire island beer Company LaunChes Lighthouse aLe Lighthouse Ale, Fire Island, NY, is a new beer brewed at

the Olde Saratoga Brewing Company. It is a golden to amber American-style ale produced from four types of

malts and three varieties of domestic hops. Visit www.fireislandbeer.com

6 square one organiC sPirits introduCes square one botaniCaL

Square One Organic Spirits, known for its Square One Vodka and Square One Cucumber, has unveiled Square One Botanical, a certified organic neutral grain spirit made with 100% organic American rye and infused with eight organic botanicals: pear, rose, chamomile, lemon verbena, lavender, rosemary, coriander and citrus peel. SRP: $40 Visit www.squareonevodka.com

1

34

5

2

6

zacapa xois a special blend of rums created to commemorate

the new millennium

new products & promotions

Page 9: Sept 09 PDF Final

September 2009 bay state beverage guide 57

by Ian Griffith talkin tech

New Directions in Wine Writing

I t is sad to watch the demise of prom-inent local newspapers as they strug-gle to respond to the threat of the Internet. With newsstand sales and

subscriptions way down, Rupert Murdoch announced plans to generate revenue by charging for online access to his newspa-pers, effectively hiding his content from search engines. In a similar move the As-sociated Press has recently suggested that any website that displays an article title and link to one of their stories should have a licensing agreement with them. In con-trast, Reuters has emerged as a champion of the “link economy” and is encouraging aggregators to link to their stories.

Reuters seems to understand, and the AP and Newcorp have not grasped, that linking makes their content valuable on-line. Indeed, there is a significant shift underway in the newspaper business as information becomes more widely avail-able than ever before. As a result there are very few sources of content that can draw an audience by themselves. It is only when a story has been linked by bloggers and news aggregators that an audience arrives.

The Influence of BloggingA version of this paradigm shift is also playing out in the wine press. After briefly attempting a subscription model, a promising online publication is calling it quits. Appellation America couldn’t support the cost of paying writers to generate reference material about wine regions.

When Robert Parker started The Wine Advocate in 1978, a print newslet-ter was the platform an independent en-thusiast used to find a following for his opinions. In the age of the Internet, the new generation of enthusiasts can start a blog with much less effort and invest-ment. Wine writing has become democ-ratized and there are now legions of blog-gers who review and recommend wines. Whereas critics depend on subscribers to pay for unique content, bloggers list their reviews for free and generate a modest income from ad sales. Vintank’s social

media report estimates that the top 20 wine bloggers have a larger audience than the Wine Spectator online. This rep-resents a significant audience and shows the potential that the best bloggers have to influence the purchase of wines.

The role of retailers has been to pro-mote the ratings of prominent critics to sell their wines online yet publications that think in terms of limiting access to their content have been reluctant to support the maintenance of these rat-ings against a retailer’s inventory. As the influence of bloggers continues to grow, it may soon become feasible for retailers to reference blogger reviews against their inventory online. By mak-ing their reviews more readily accessible to retailers, bloggers have an opportu-nity to take further market share from the established critics.

A retailer’s content includes its product listings and prices, but more valuable for generating links are unique wine reviews and stories about wine. In the same way bloggers comment on each others’ posts, retailers need to leverage their content by broadcasting it online using blogs, Facebook and Twitter. These links will drive an audience to your web-site that will lift your online business. Established critics still drive a reliable volume of sales for online wine stores, but retailers who seek out new content partners will stand out from the crowd and find a loyal following online.

To learn more about how the Beverage Media can help with a website for you store, contact Ian Griffith at 617-864-1677, twitter.com/griffiti, openwineconsor-tium.org/profile/IanGriffith or visit www.bevnetwork.com/retailweb.

Vintank’s social media report estimates that the top 20 wine bloggers have a larger audience than the

Wine Spectator online.

EvENTS CALENDAR

bay state beverage guide wants to know

what is haPPening!

Please inform us of upcoming events and tastings. Send upcoming events to:

Bay State Beverage Guide, 84 Sherman Street,

Cambridge, MA, 02140 Attention: Events or email at:

[email protected]

Learn about seLLing wine onLineSign up for our next Webinar on Thursday, September 17th, 2009

at 10am EST. See how a store uses the BMG eCommerce system to maintain and promote products on a website.

For more information visit: bevnetwork.com/retailweb

SEPTEmBER 2009

14th Ma restaurant assoCiation faLL dinner Tavern on the Water, Charlestown, 6-9pm

23rd horiZon beverage faLL tastingTop of the Hub, Boston

29th M.s. waLker’s annuaL faLL tasting trade show Seaport Hotel, Boston, 2pm-7pm

OCTOBER 2009

8th new Ma wine & sPirits whoLesaLers’ faLL tasting Westin Hotel, Waltham, 3pm-7pm

13-14 u.s. drinks ConferenCe Helmsley Park Lane Hotel, NY www.usdrinksconference.com Phone: 860-676-7900 $795 for two-day access to all sessions.

14th Ma PaCkage store assoCiation annuaL trade show Best Western Royal Plaza Hotel & Trade Center, Marlborough

Page 10: Sept 09 PDF Final

58 bay state beverage guide September 2009

DEWAR’S CALLAWAY LONGEST DRIVE CHARITY COMPETITIONNearly two dozen Boston charities including the Boston Firefighters Burn Foundation Massachusetts SPCA, Greater Boston Food Bank and American Red Cross of Massachusetts Bay, competed in the Dewar’s Callaway Longest Drive Charity Competi-tion recently. Despite the poor weather conditions, winner Jonathan Nahas drove the ball 330 yards and received a $5,000 check to the charity of his choice along with a new Diablo driver from Callaway and a bottle of Dewar’s 18 Founder’s Reserve.

Glenn Lawler, Horizon Beverage; and Nicole O’Neill Bacardi USA’s Justin Sullivan, Jim Whelan and Mike Basile

around town

BACARDI’S B-LIVE CONCERT AT THE HOUSE OF BLUES BACARDI B-LIVE rocked the House of Blues in Boston recently. Part of an innovative global con-cert series touring the United States and with perfor-mances from some of the most sought after musical acts and DJs, the B-LIVE concert mixed today’s hot-test music with the very best in BACARDI cock-tails. In addition to turning up the volume on the music scene, BACARDI B-LIVE donated proceeds from the events to the VH1 Save the Music Foun-dation. This nonprofit organization is dedicated to restoring instrumental music education programs in America’s public schools.

Erin Henderson, Callaway Golf; Brandy Rand, Bacardi; and winner Jon Nahas

Chris Morris, Binding Braueri; Evan Deluty, Stella Restaurant; Mick Carlyle, Somers Pubs of Boston; and Steve Pitrowski

Doug Epstein, Horizon Beverage; Chris Myers, Via Matta, Radius, Chang & Myers; and Chris Gifford

RED SKY RESTAURANT & LOUNGE ANNIVERSARY CELEBRATION Downtown Boston’s Red Sky Restaurant & Lounge celebrated its three year anniversary on August 12th. Located near Faneuil Hall, Red Sky was founded in 2006 by long time friends and industry veterans Russ Demariano and Ed Brooks. The award-winning lounge has become one of Boston’s best places to eat, drink and enjoy good friendships. Family, friends and customers of Red Sky were treated to a great night of fun, food, drinks and entertainment.

Mary Van Meter, Russ Demariano, owner Red Sky; and Agnes McDonnell

Nicole Wagner, Danielle Burke, Lanie Donlan and Maria Cerquiera

Chris and Jess O’Rourke Jaime Devoe, John Murray, Deidre Fay, Jen Moore and Erin McDonough

Page 11: Sept 09 PDF Final

MRA POOLSIDE RECEPTION AT THE COLONNADE HOTEL The roof of the Colonnade Hotel, downtown Boston’s only rooftop hotel, provided networking opportunities for both MRA members and industry friends alike.

Nancy Jones; Rovert McGovern, Packard’s; Peter Christie, MRA; and Darryl Settles, Beehive

Frank Kosiba, Capture Code; Joe Piantedosi, Piantedosi Baking Company; and Jennifer Buzzato, Capture Code

Heather Carneiro, MRA; Nick Spidalieri, MRA; and Janine Harrod, MRA

The entire Green Briar staff

Peter Walsh, Irish Emigrant, presents check to Jill Gigante, Briar Group

Margaret and Austin O’Connor Sr.

Austin O’Connor Jr. , Jill Gigante, and Dessie Kerins

GREEN BRIAR CELEBRATES 2OTH ANNIVERSARY Long known as one of Boston’s friendliest Irish pubs, the Green Briar Restaurant & Bar recently celebra-ted their 20th anniversary. To thank their custo-mers for two decades of loyal patronage the Green Briar Restaurant hosted a weeklong celebration of music, entertainment and other special events. The week culminated with a live performance featuring music from The Bare Knuckled Boxers. The entire O’Connor family, well-known and well-respected throughout the Boston Irish community, were on hand to thank all the staff, customers, and vendors who helped make the Briar what it is today, some twenty years later.

Monica McCandless, Rewards Network; and Karen Ostromecki, KO Interior Design

Rhonda Kallman, New Century Brewing; and Peter Christie, MRA

around town

Page 12: Sept 09 PDF Final

60 bay state beverage guide September 2009

newsfront

PERNOD RICARD DRIVES BARTENDER EDUCATION WITH BARSMARTS PROGRAM

Pernod Ricard USA recently concluded the spring sessions of its BarSmarts Ad-vanced bartender training and education program. The program, which targets bar-tender protegées, was concluded on the BarSmarts LIVE day—a full day of written and practical exams. The closing day was hosted by the BAR, LLC partners Dale DeGroff, Steve Olson, Doug Frost, F. Paul Pacult, Andy Seymour and David Won-drich. The BarSmarts Live program will expand this fall to reach bartenders in New York, San Francisco, Los Angeles and Las Vegas. The company is also preparing for the launch of BarSmarts WIRED, an on-line program that targets a broader range of bartending professionals through a web-based education and certification program offered exclusively through the BarSmarts WIRED site.

CONSTELLATION ANNOUNCES DISTRIBUTOR REALIGNMENTConstellation Brands has signed multi-year distribution agreements with Southern Wine & Spirits, Republic National Distributing Company, National Wine & Spirits and Johnson Brothers Liquor Company. The new agreement, which constitutes over half of Constellation’s U.S. business, will result in new appointments for 19 states in the U.S. Each distributor has the exclusive rights to sell Constellation’s brands in their respective market. Southern Wine & Spir-its has exclusive rights to Constellation in nine markets: Arizona, California, Dela-ware, Florida, Hawaii, Illinois, Kentucky, New York and Pennsylvania. Republic National Distribution Co. will distribute Constellation in eight markets: Colorado,

Louisiana, Maryland, Nebraska, Oklahoma, South Carolina, Texas and Washington D.C. Na-tional Wine & Spirits will have exclusive distribution rights in Indiana and Johnson Brothers will have exclusive distribution rights in Iowa.

WINEBOW FORMS NEW AUSTRIAN PORTFOLIOWinebow, Inc. has added a new Austrian portfolio to its collection of international wines. The portfolio, which will be part of the recently formed Emerald Wines division, will include artisanal distillery Schnapsbrennerei Alois Gölles and nine properties from Austria’s most prominent wine growing regions: Weingut Fred Loim-er, Weingut Stadt Krems, Weingut Rudi Pichler, Weingut Prager, Weingut Wien-inger, Weingut Heinrich, Weingut Paul Achs, Winzerkeller Neckenmarkt and Sektkellerei Szigeti.

NEWCASTLE LAUNCHES SUMMER ALENewcastle’s latest release for the warm months is its new Newcastle Summer Ale, a limited release seasonal offering. The ale recipe uses Golden

Promise and Optic Malts to provide a hoppier taste that is light in color. For the launch of its newest addition, New-castle has created Newcastle Sum-mer Ale glassware, designed to ac-centuate the beer’s hoppy aromas for

on-premise accounts. Summer Ale will debut as a draught beer in 50L kegs and will be available in select markets through mid-September.

CUCA FRESCA LAUNCHES NORTH AMERICANMIxOLOGY CONTESTCuca Fresca Exports has created a North American mixology contest to find the best Cuca Fresca cocktail. Cuca Fresca’s panel of spirits experts will choose four

finalists and a fifth “People’s Choice” finalist will be de-termined by the recipe that receives the highest number of votes through the Cuca Fresca website. The winner of this competition will be flown to Brazil for a private distillery tour courtesy of Cuca Fresca. To be eligible for the “People’s

Choice” nomination, the cocktail must be on the drink menu at the contestant’s place of employment. Recipes for the panel must be submitted by September 15th; the dead-line for the People’s Choice cocktail is Oc-tober 31st. For more information, and to include your cocktail in the competition, visit www.CucaFrescaSpirit.com/contest.

HEINEKEN LAUNCHES “GIVE IN GOOD TASTE” HOLIDAY PROGRAMHeineken, Heineken Premium Light and Amstel Light unveil their “Give in Good Taste” Holiday retail and on-premise pro-gram. For off-premise accounts, Heineken will offer Heineken and Heineken Light DraughtKegs, available in festive holiday packages. Mass “Give in Good Taste” displays and other POS materials will be available to support retailers during the holiday season. In the on-premise, the group has created “Waiting for You” message boards and complimentary POS items including table tents and pennants.

The program will run November through December in retail outlets and select on-premise bars throughout the country.

AMSTEL LIGHT UNVEILS INVENTIVE RETAIL PROGRAMAmstel Light has unveiled its summer “Unlock the Taste of Amstel’s Amster-dam” program, inviting participants to win an Amstel Light experience in Amsterdam.The program will include a national under-the-cap sweepstakes supported through a variety of materi-als and initiatives. Participants in the sweepstakes will have the opportunity to win via in-store POS materials, through mobile texting or online through amstel-light.com. In-store POS includes tuck-in cards and cooler decals.

Page 13: Sept 09 PDF Final

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62 bay state beverage guide September 2009