Market Watch, April 2016

Tecate DiabloHeineken USA extended its Tecate beer brand with the spicy Michelada offshoot Diablo last spring Made with tomato juice lime and spices Diablo around 275 a 24 ounce can is geared toward Mexican American consumers and is currently making major gains in Hispanic markets like Houston Phoenix and Los Angeles as well as across the Sun Belt region Tecate Diablo is tapping into the broader Mexification of America trend thats currently happening notes Gustavo Guerra Maza brand director for Tecate and Tecate Light He adds that the U S markets Chelada Michelada segment has doubled in value to 124 million over the last two years according to Nielsen data This year Diablo will debut new packaging ahead of the key summer season and increase its abv from 36 percent to 41 percent The brand is also extending its Born Bold campaign It recently unveiled a new multi year partnership with Oscar De La Hoyas Golden Boy Promotions and an endorsement contract with boxer Canelo Alvarez who will wear Tecate branded gear during marquee fights this May and September mwChristina JelskimwFIRST BIRTHDAYSI W Harper BourbonIn March 2015 Diageo relaunched the historic I W Harper Bourbon range in the United States The brand features two vari ants I W Harper Kentucky Straight Bourbon 3499 a 750 ml bottle and I W Harper 15 year old Kentucky Straight Bourbon 7499 and is performing well in high volume off premise accounts and premium whiskey focused on premise venues according to Jeff Parrott brand director for American whiskey development at Diageo I W Harpers core 41 percent alcohol by volume abv Kentucky Straight Bourbon currently accounts for around 73 percent of the business and is gaining significant traction in markets like Tennessee and California The brands 43 percent abv 15 year old variant is showing promise in Kentucky and Florida Diageo has backed the brand with a variety of style centric activations including partnerships with Esquire magazine bloggers and social media influencers The company has also held launch events in markets where the I W Harper brand has historic relevance like Kentucky Chicago and Portland Oregon and it plans to continue sampling efforts in key markets this year Bacardi Gran Reserva Maestro de RonBacardi unveiled Gran Reserva Maestro de Ron in May 2015 According to Nadine Iacocca North American brand director for rum at Bacardi Gran Reserva Maestro de Ron 2499 a 750 ml bottle has helped introduce Bacardi to a broader audience Double matured in white oak casks the 40 percent abv entry aims to combine the versatility of a white mixing rum with the complexity of an aged spirit and targets drinkers in their mid to late 20s with an interest in cocktails At this early stage weve focused on the off premise Iacocca says Longer term we believe this product will gain attention in the on premise and be well received by mixologists Bacardi has supported Gran Reserva Maestro de Rons rollout with print and digital activations focusing primarily on the holiday season and gifting occasions The company has also partnered with the James Beard Foundations Taste America program to hold key events throughout the United States Gran Reserva Maestro de Ron marked the second expression to join Bacardis upscale Gran Reserva range which also includes Gran Reserva Ocho Años Tenshen WhiteGuarachi Wine Partners extended its Tenshen brand with the launch of Tenshen White last March Limited to just under 5000 cases for its inaugural 2014 vintage Tenshen White 20 a 750 ml bottle sold out in less than six months Demand for the product in year one was tremendous says Guarachi Wine Partners founder Alex Guarachi Weve seen tremendous growth of red blends taking market share away from red varietal wines over the past few years and Tenshen White is reaching consumers in a similar way Created in collaboration with winemaker Joey Tensley Tenshen White is a Rhône style blend made with Viognier Roussanne Grenache Blanc and Chardonnay grapes sourced from Santa Barbara County Though Guarachi Wine Partners has invested little in traditional advertising thus far the 147 percent abv entry has benefited from the buzz created by Tenshens original red blend which debuted in 2014 Tenshen Red was such a huge success right off the bat this is a perfect example of a successful word of mouth brand Guarachi adds Tenshen is distributed in independent on and off premise accounts with off premise business accounting for around 60 percent of sales 26 MARKET WATCH MARKETWATCHMAG COM APRIL 2016MW0416_