Beach Whiskey Company Acquires American Harvest® Organic Vodka

Award-winning craft organic vodka highlights farm-to-bottle movement

I’m pleased to share our acquisition of American Harvest Organic Vodka from the Frank family. This is an incredible brand and we could not be more excited to add it to our Beach Whiskey Company portfolio. Our Beach Whiskey™ is taking off and we have had the most incredible reception from the trade including some of the most important national accounts in the industry. This is driving us to move faster and rollout nationally early. The addition of American Harvest fits perfectly with this effort as it was national and in most of the key national accounts under Sidney Frank Importing Company.

  

We believe the new branding (packaging) fits perfectly the farm to glass, sustainable nature of American Harvest. While the old packaging was unique, this new look, with American glass and recycled paper label, disclosing the source of all ingredients is on message. I hope you all like it.

I look forward to bringing both Beach Whiskey and American Harvest to market and to scale this year. Below is the official announcement:

The Beach Whiskey Company, a national spirits company, announced today its acquisition of American Harvest Vodka®, an American-made organic vodka, which merges the farm-to-bottle movement with the exploding craft spirits category.

American Harvest Vodka was created by the Sidney Frank Importing Company (SFIC) in 2011 and gained a strong national foothold by 2014. When SFIC was acquired by Jägermeister of Germany in 2015, the Frank family retained ownership of the brand. The sale of American Harvest to the Beach Whiskey Company returns the brand to one of its creators, Bill Henderson, now Chief Marketing Officer of Beach Whiskey.  Terms of the deal were not disclosed.

“Organic and craft spirits have shown significant growth over the past five years, and Double Gold Medal-winner American Harvest has already shown its ability to stand apart from other super-premium vodkas,” said Smoke Wallin, CEO, Beach Whiskey Company. “Now is the time for a national organic craft vodka, and American Harvest Vodka fits seamlessly into the Beach Whiskey portfolio while accelerating our national growth plans. Distributors who previously carried American Harvest are eager to have it back, and this is creating additional opportunities for the Beach Whiskey portfolio.”

American Harvest is handcrafted in small batches from American wheat and distilled with 100 percent certified organic ingredients to yield a distinctly smooth spirit with a crisp, clean and slightly sweet hint of real agave. The wheat is estate grown from a single family farm, and the water is from a protected source beneath the Snake River Water basin.
“American Harvest is a brand near and dear to my heart,” said John Frank, former Chairman of Sidney Frank Importing Company and new member of the Beach Whiskey Advisory Board. “We went to incredible lengths to ensure purity from farm to bottle in creating this truly American spirit.  I’m pleased to see American Harvest in the hands of Beach Whiskey’s very capable team, and I look forward to contributing to their portfolio’s exciting growth.”

“Acquiring American Harvest made perfect sense to all of us at Beach Whiskey as we look to create value for our investors and bring innovation and a great marketing to our trading partners, “ said Andrew McGinnis, co-founder and Chairman of Beach Whiskey Company

“While craft spirits have taken off, so too are consumers becoming increasingly focused on the provenance of their food. They want to know who raises their beef and from which farm their fruits and vegetables are sourced,” said Bill Henderson, Beach Whiskey CMO. “American Harvest Vodka was created because we believe the same can and should be true for spirits.”
American Harvest Vodka (40% ABV) will be returning to shelves across the country and is expected to regain its national footprint in 2017. SRP: $24.99/750ml.

Here is a video on the American Harvest brand story… (old bottle):

American Harvest Organic Vodka Full Video Story from J. Smoke Wallin on Vimeo.

About The Beach Whiskey Company
The Beach Whiskey Company is a disruptive brand innovator in the adult beverage space that is building a portfolio of rapidly growing national brands. The Beach Whiskey portfolio includes Beach Whiskey Bonfire Cinnamon™, Beach Whiskey Island Coconut™ and American Harvest Organic Vodka®.

Beach Whiskey™ is a reimagined take on traditional whiskey. A line of smooth, clear, naturally flavored American whiskies made for sun worshiping, moon chasing, fun seekers, Beach Whiskey offers day-drinkable flavor profiles presented in sea glass-inspired bottles. No matter where you are, our mission is to bring the beach—”your place in the sun” —to thirsty, fun-loving whiskey drinkers everywhere. Please sip and swim responsibly!

American Harvest Organic Vodka® is proudly handcrafted in small batches from organic American wheat, certified organic ingredients and Snake River water.
For more information, please visit:
www.facebook.com/americanharvestvodka

Evolving Drinks Brands

Evolving Drinks Brands banner

I recently read and shared an article in Forbes by Patrick Hanlon called, “Why Brands Must Evolve” that is so spot on that it has led to a number of interesting conversations in the past week with some of my clients and partners who own brands in beer, wine and spirits. As one who spends a lot of time thinking about new brands, as well as igniting established brands in new ways, Patrick’s thoughts really resonated with me. I don’t think there is a better industry than beverage to illustrate his points about what is going on with brands. Brand proliferation is happening across the board making “breaking through the clutter” ever more difficult. At the same time, the reason this is happening if fundamentally that there is demand for new brands. As I wrote in “RE: Is Craft Beer In A Bubble”, there is a big and growing market for new brands in beer, but also in wine and spirits. Not everyone will succeed and in fact many new brands will fail. To the big brand manager, the fundamental challenge has also never been so big – how do you keep a loyal following when your following gets gigantic. I think about an Iconic brand like Patron Tequila. I was a distributor for Patron as it passed between different sales companies and was a very difficult sell. Five years from the time it launched, Patron was doing about 55,000 cases. Now that is a nice little brand, but nothing would have screamed, “This brand is on fire!” Then, it did catch on fire and became the very symbol of luxury. Check out Patron case sales for the first 10 years:

Patron sales first 10 years

Patron is an amazing brand and continues to outsell all of the other super premium tequilas (and frankly all other spirits brands at $40/750ml bottle and higher). They have a huge and loyal following. However, as brand manager for Patron today, the things one has to do to market the brand are quite different than in the early years. How does one keep the “cool” factor going when you are the largest brand in your category. There are dozens of new entrants who are going after their market and have the advantage of being smaller (think Avion, Casamigos, Don Julio) and bringing a new “cool” factor to the market. Clearly there are many that succeed at this but being true to your brand and your audience while changing things up can be quite difficult. Absolut Vodka was THE luxury brand of the late 1980s and early 1990s. It was the “it” brand among the “it” crowd.

Andy Warhol Absolut IMG_6541

Pernod Ricard paid over $8 billion to acquire the brand a few years back. How does Pernod now manage a giant brand that was formerly the top luxury vodka in a market with such massive proliferation of brands that the high-end vodka category has experienced. I’m told there are 800 vodkas in the Beverage Media New York book. Pernod recently announced a new bottle. Absolut is one of those brands that defined itself by its bottle.   Changing the bottle is a big move even in subtle ways. Adding the big A is a pretty big move. Large companies don’t usually make big moves, but staying relevant in a crowded market sometimes requires big moves.    Pepsico made an even bigger move a few years back with their Gatorade brand. I thought at the time, it was fairly risky, but it appears to have paid off (does anyone know details?).

gatorade new gatorade old label

Patrick’s article certainly cites a number of great examples of big brands that have managed to evolve over time and keep or even build on their past successes. “…the challenge for brands has evolved from creating awareness to creating meaning.” How do you keep creating meaning at scale like Nike, Apple and Disney have successfully done.  They each connect to their consumers and continually create meaning.

The wine market has evolved so dramatically, that I have to look up many of the brands on the grocery shelf today and I have been involved in selling $100s of millions of wine over the years. Why? New brand proliferation to attract the millennial consumers.

barefoot wine logo Meiomi wine

Take a look at the top 10 domestic “Hot Brands” put out by Marvin Shanken’s Impact Databank:

  1. Barefoot
  2. Black Box
  3. Bota Box
  4. Liberty Creek
  5. Boggle
  6. Apothic
  7. 14 hands
  8. Barefoot Refresh
  9. Gnarly Head
  10. Meiomi

Four of these are Gallo Brands, but none say Gallo. All have interesting, contemporary labels. To succeed in this hyper-competitive market, every brand must have a number of things. Great branding is vital, without it your brand is lost and has no chance. Great liquid that fits the taste of your target market is key, without it they won’t buy a second time. Distribution is essential, a brand cannot become relevant if consumers can’t find it. But how does a brand build a real following of consumers who care? That is, how do we create meaning? That is the question every new brand team needs to answer.

 

To quote Patrick again: “We want the added value of believing in something. The added value of belonging to something: being a part of something that hard-wires us to a larger community of “people like me””

 

Seth Godin in his fantastic book “Tribes” articulates this concept well.

“Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.” Brands have to figure out how to reach their tribes and how to engage with them. Notice, I did not say create their tribes. This is an important distinction. I believe tribes are discovered not created. Brands who overtly try to create one typically struggle. If a following is not organic, today’s savvy consumers sense it.   I think brands can make themselves relevant and worthy of a following and then as that following begins to show signs of life can play a role in fostering and accelerating it.

 

I’d love to hear your stories of brands you think are doing this right.

 

Cheers,

 

Smoke

 

Paddington Brands Launches 90+ Rated Agostón Spanish Red Wines Nationally Through Walgreens

Indianapolis, IN – July 12, 2011 – Paddington Brands announced today that it has launched its Agostón wine brand through Walgreens, the nation’s largest drugstore chain.  Bodegas Virgen del Aguila, the Spanish wine cooperative, confirmed Paddington Brands as the exclusive U.S. importer of Agoston wines.

 

Agoston Tempranillo Cabernet from Spain - now available at ALL Walgreens

“When we first tasted Agostón, we knew this was a wine that would appeal to American consumers,” said J. Smoke Wallin, chairman and CEO of Paddington Brands. “Year after year Agoston has been receiving 90+ points in the Penin Wine Rating Guide, which is Spain’s equivalent to Robert Parker ratings. We have worked with Walgreens in order to bring this savory wine to the United States at an affordable price.”

 

In April Paddington launched both a syrah/garnacha and a tempranillo/cabernet blend in more than 4,000 Walgreens stores. The wines, priced at $5.99 a bottle in most states, have become one of the drugstore chain’s top selling imported wine brands.

 

“Agostón is a great addition to Walgreens wine selection as our first Spanish wine,” said Dex McCreary, Walgreens divisional merchandise manager. “We look forward to working with Paddington Brands to promote this brand and make this quality import a success.”

 

Agoston Garnacha & Syrah

“We were immediately impressed with the knowledge, drive and ‘can do’ approach of the entire Paddington team,” said Jose Maria Andres, CEO of Bodegas Virgen del Aguila co-operative. “We are proud to work with Paddington to launch this wine with such an important retailer like Walgreens, a company that will advance the development of the Agostón brand.”

 

About Agostón

Agostón is named after the wild Spanish boar and is made by the Bodegas Virgen del Aguila co-operative. Located in the great wine-producing area of northern Spain we´re lucky to have a climate and terroir ideal for making quality wines full of character. Here we have 2,200 hectares of vines, planted with a good range of grape varieties, including the native Tempranillos and Garnachas, as well as international varieties, such as Cabernet Sauvignon and Syrah. Our oldest vines date from the year 1906 and help create wines of superb intensity, such as our Agostón range.

 

Our vineyards are located in the scenic foothills of the Ibérico mountain range and we have a wide variety of landscapes and eco-systems within our demarcated area. Under half of our land is taken up by vines, the rest being undisturbed areas of rocky outcrops and forested mountain slopes, dry river beds, wild-flower margins and old almond groves. This makes it and its surrounding area a zone of high biodiversity and an ideal wildlife haven, something that we’re committed to safe-guarding.  The winery produces close to 10 million litres of wine a year, with a full range of styles, including young fresh whites and rosés, intense aromatic reds and complex oak-aged “Crianzas” and “Reservas”. The winery is modern, and fully equipped and the underground maturation cellars have 13,000 oak barrels.  

 

 

 

 

About Paddington Brands
Paddington Brands (www.Paddingtonbrands.com) manages a portfolio of owned and agency premiere import & craft beers, artisanal spirits and fine wines.  Paddington’s team and partners have extensive experience in the global beverage and consumer packaged goods industries. Paddington owns the Napa Smith Brewery & Winery and 3 Amigos Tequila.  Paddington is headquartered in Metro-Indianapolis, IN, with offices in the United Kingdom and Napa, CA and a sales team covering the U.S. market and select international markets. Join us on Facebook http://www.facebook.com/pages/Paddington-Brands/220043258012149 and Follow us on Twitter @Paddingtonbrands

 

About Walgreens

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2010 sales of $67 billion. The company operates 7,733 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.

Pelican Brands & SOI Wines Announce a Long Term Strategic Sales & Marketing Agreement for the US Market

Pelican Brands will Import and Drive the National Rollout of Barking Sheep Wines from Argentina, the first Brand to be Launched Under this Agreement

Carmel, IN, USA – December 20, 2010 – Pelican Brands and Schwartz Olcott Imports, LLC (SOI Wines) jointly announced today the formation of a long term strategic agreement to launch Barking Sheep wines from Argentina following a successful limited test market in 19 states.

Barking Sheep wines are produced in Mendoza, Argentina, and are styled for the U.S. market. The launch will include a beautiful classic Malbec and a fresh clean fruity Chardonnay.

Barking Sheep wines are produced at Las Perdices by chief winemaker Carlos Muñoz, from high altitude vineyards 1,000 meters above sea level towards the Andes Mountains producing full bodied classical fruit.

During a one year limited test market at a major national chain Barking Sheep was the #1 red wine of all new featured red wines.

Norman Schwartz, Co-Founder & Chairman of SOI Wines said, “There are many fine importers who do a great job with established brands; however, without brand builders like Smoke Wallin and the Pelican team it’s impossible to build a national brand franchise.  With Pelican sharing our enthusiasm for Barking Sheep we are well positioned to rollout nationally and to launch other brands together”

J. Smoke Wallin, Chairman & CEO of Pelican Brands said “The Barking Sheep brand further expands the Pelican Brands wine platform to Argentina.  These wines offer the consumer great value with a fun attitude.  We have high expectations for their national rollout.”  Wallin continued, “Norman has created some incredible brands over the years.  We are very excited to begin our long term strategic partnership with The Barking Sheep brand.”


NOTE: I’m very excited to be working with Norman and the team.  Look for more exciting developments as we pool our resources!… Smoke

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