Market Watch, November 2019

26 MARKET WATCH MARKETWATCHMAG COM NOVEMBER 2019mwBRAND WATCHPatrónAmid a boom in luxury priced and aged Tequilas Bacardi owned Patrón has unveiled a new barrel aging facility that will double its total capacity for aging spirits to over 20000 barrels The new space a nearly 17000 sq uare foot extension named for master distiller Francisco Alcaraz will feature a tasting area for brand education and an underground bar for VIP entertaining called La Cava The expansion dovetails with the consumer interest in upscale marques and more varied Tequila consumption In the past Tequila was just shots says Antonio Rodriguez Patróns director of production Then suddenly people grew more interested in whats behind Tequila While Patrón isnt selling all the aged Tequila it can make its planners are following internal forecasts Rodriguez notes that the brand wants to have enough capacity to supply the core line remain ahead of the growth curve and let the Tequila achieve the right age and experiment Indeed the recent release of Patrón 10 year old 350 a 750 ml is intended to demonstrate what the brand can do with longer aged Tequilas when given the chance to play While Patrón faces greater competition it remains the dominant force in the luxury segment and continues to expand at a healthy clip averaging growth of about 100000 cases annually over the past three years In 2018 the brand reached 25 million cases including its Roca Patrón offshoot according to Impact Databank Shane EnglishBreckenridgeColorado craft player Breckenridge Distillery is in the midst of a multi million dollar expansion project as it looks to meet increasing demand for its flagship Breckenridge Bourbon 45 a 750 ml a blend of Bourbon whiskies distilled in house and sourced from Kentucky Tennessee and Indiana This past summer Brecken ridge unveiled an additional 7000 barrel warehouse at its home base to accommodate rising production That project followed last years move to install a 40 foot column still with doubler and 10000 gallon mash and fermentation tanks which operate alongside its original pot and alembic stills Since 2016 Breckenridge has been ramping up its physical footprint opening the Breckenridge Distillery Restaurant that spring and later bringing on chef Daniel OBrien to helm the kitchen On the new product front Breckenridge is planning to launch a group of three malt whiskies early next year joining its existing Dark Art Malts offering 450 a single malt whiskey aged for four years in a combination of new American oak and used Bourbon casks The newcomers will retail at below 100 a 750 ml Company founder and CEO Bryan Nolt says the distillery will sell about 75000 9 liter cases this year across its 49 state distribution footprint In addition to its core Bourbon the Breckenridge lineup also includes the Reserve Blend Port Cask Finish PX Cask Finish and single barrel Bourbons among other whiskies as well as spiced whiskey spiced rum and gin expressions mwDaniel MarstellerBöenAfter selling his Meiomi brand to Constellation in 2015 for 315 million Joe Wagner and his company Copper Cane Wines Provisions created their first brand Böen The label whose name means the farm is a testa ment to the Wagner familys farming roots Böen started with a Russian River Valley Pinot Noir in 2015 and added Santa Lucia Highlands and Santa Maria Valley offerings with the 2016 vintage all 35 This past August Wagners non compete agreement with Meiomi expired and hes now released wines blending the three regions of Sonoma Santa Barbara and Monterey to create the new Böen Tri County Pinot Noir and Chardonnay labels Both are positioned similarly to Meiomi at the 25 price point Copper Cane initially released a small amount to the on premise and now its taking the new labels into the broader market For their first year Wagner expects the new releases to hit around 40000 cases Theyre the first wines on the market to feature Gualas eWak closure technology A medallion on top of the screwcap contains an NFC chip that when tapped with a smartphone brings up the Böen Farmhouse with different rooms and sections that offer education and information about the wines One section is the Veranda which allows people to communicate with Copper Cane and each other about the wine Theres also the Pantry focused on food pairings and the Wine Cellar where customers can catalogue what theyve been drinking Daniel MarstellerMW1119_