Northern Lights: Canadian Whisky Aims to be the Next Big Thing

Catching in the Rye

American whiskey geeks and mixologists are starting to appreciate rye’s spicy dryness, and that segment is small but growing. That’s a plus for Canadian whisky, which has been synonymous with rye whisky, because that grain figures prominently in many blends.

“I love rye, which is why I like Canadian whisky,” says George Ryals, manager at All Star Wine & Spirits in Latham, NY. The retailer mentions Crown Royal Northern Harvest Rye among several examples.

Canadian whisky hasn’t seen the growth spurt that it should, Ryals says, but he appreciates the softer style of the whisky, which is a value buy. He also cites Seagram’s VO Gold. At All Star, there has been an upswing of popularity for Crown Royal. “We sell quite a bit, and a new, younger demographic is coming in looking for it,” he adds.

“Crown Royal Rye has done well here,” echoes David Jabour, president of Twin Liquors, an Austin-based, third-generation retailer. “It appeals to the traditional Canadian whisky drinker who is looking for something a little different.”

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“Crown Royal uses a number of mash bills to create different styles, which are blended together. Our master blenders have more than a million barrels to create their blends,” Morgan explains. More innovations are coming from the brand in 2016.

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Looking for Top Shelf

Much of the product innovation and growth is coming from the upper tiers of Canadian. Indeed, sales of high-end premium were up a healthy 10.9% in 2014, according to DISCUS, while the rest of the category was flat.

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“Super-premium is what’s driving the Canadian whisky category today,” says Heather Howell, brand manager for Collingwood Whisky. The Brown-Forman brand has been made at the Collingwood, Ontario distillery (which also produces Canadian Mist) for just five years. The liquid goes through an extra finishing step: the mature blends rest with heavily toasted maplewood staves. “Making for a full-flavored and complex whisky,” Howell says, great for sipping neat or mixing in cocktails.

“Messaging is critical. Bottles don’t yet leap off shelves into carts,” she quips. The message emphasizes that Collingwood is a distinct artisanal whisky made at Canada’s oldest continuously owned and operated distillery in the village of Collingwood, Ontario, on the Georgian Bay.

More sustainable packaging features a new bottle with a smaller cap; the name Collingwood “pops” more and “Toasted Stave Finish” is called out on the label. “Journey Forth” is the new positioning for this brand. “It speaks to the vigor and spirit of Canadian landscape,” Howell says. There will be a full range of marketing and advertising activity supporting the brand.

Flavor in Favor

“Like the other categories, Canadian Whisky is increasingly influenced by flavors, as well as a steady drive toward premiumization.  Both are likely to drive category activity and growth in the coming years,” Richards predicts. Sazerac has many different Canadian whisky brands at several price points. Rich & Rare Reserve offers consumers outstanding quality and value, he says. The Legacy brand is an upscale Small Batch Canadian Whisky blend that is a full-bodied, quintessentially Canadian offering. And Caribou Crossing Single Barrel, he adds, is a super-premium bottling created by Master Canadian Whisky Maker Drew Mayville.

“We’ve seen amazing results with flavored Canadian whiskies,” says retailer Jabour at Twin Liquors. Crown Royal Regal Apple, a brand introduced a year ago, is already selling at nearly half the original Crown Royal, he says. There is a proliferation of new Canadian flavors—maple, peach, pecan and more. “The success of Regal Apple may breed opportunities for other Canadian producers,” Jabour says.

Crown Royal also has a maple flavor. “Look for more flavor innovations in 2016,” Morgan promises.

Many predict Canadian will move into the world of whisky geekdom and wider interest. But the interest is already there, says Diageo’s Morgan. “People are more interested in the minutia of whisky production — the grain bills and the kinds of barrels. Our brand ambassadors get asked very nerdy questions.”

“Canadian whisky has the budget players, as well as high-end expressions and more flavored products,” Smith adds. “They are covering all bases.”

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