Maker's Sales Growth

[theglobalguy]

When they had their proof change head fake, they reported what looked to be at the time a massive spike in demand. Shocking thing is now post proof change, they're still showing 18% jump in demand on the Maker's line. I fully expected it to head back down.

http://www.kentucky.com/2013/08/08/2756428/beam-inc-reports-strong-q2-sales.html

I'm not a huge consumer of Beam, but two things jumped out:

- Basil Hayden was up 34 percent.

• I've not even tried that particular product, but wow...anything growing at that rate has got to be outstripping supply?
  

- But the action, Shattock said, is in bourbon. To capitalize on it, Beam officials said they plan to implement selective price increases in premium whiskeys and bourbon, including Maker's Mark.

• I may dislike the increase in prices, but i'd be shocked (and lots of their staff would be fired) if it didn't happen.
  

I'm glad the industry is booming...just don't like the pricing outcome when it does

Edited August 8, 2013 by theglobalguy
text colour fixed.

[suntour]

When they come for OGD, there will be consequences.

[Restaurant man]

Basil Hayden is a gateway bourbon. It's also an indicator that there is a new crop of consumers heading into the bourbon market. Didn't the just have a NAS label approved in cola?

[theglobalguy]

Basil Hayden is a gateway bourbon. It's also an indicator that there is a new crop of consumers heading into the bourbon market. Didn't the just have a NAS label approved in cola?

Yes, actually let me defer to the master:

http://chuckcowdery.blogspot.com/2012/08/basil-hayden-growth-confuses-bourbon.html

Hadn't remembered the story before searching just now. So Chuck's feedback at the time was watch for consecutive Q's. looks like here we are.

[squire]

When they come for OGD, there will be consequences.

Dire consequences . . . strong letter will follow.

[cowdery]

Although Old Grand-Dad is not particularly fashionable, it's a much bigger brand than Basil Hayden volume-wise, so fears of OGD stocks being pilfered to supply BH are probably as unfounded as the similar concerns about Weller and Van Winkle. On the other hand, they did cut the proof of OGD from 86 to 80 not long ago. They said it was to better support the Bonded and 114, but you can probably add BH to that list, as it's the only other brand in Beam's portfolio that uses the OGD recipe.

On a related matter, keep your eye on what Janet Patton writes in the Lexington Herald Leader. (See link at the top of this thread.) The paper has made a decision to get serious about covering bourbon and she is their lead reporter on that beat. She has made a serious effort to learn the business and she's not just reprinting press releases like some media folks. (Although she did in the case of the story above.)

[p_elliott]

Although Old Grand-Dad is not particularly fashionable, it's a much bigger brand than Basil Hayden volume-wise, so fears of OGD stocks being pilfered to supply BH are probably as unfounded as the similar concerns about Weller and Van Winkle. On the other hand, they did cut the proof of OGD from 86 to 80 not long ago. They said it was to better support the Bonded and 114, but you can probably add BH to that list, as it's the only other brand in Beam's portfolio that uses the OGD recipe.

On a related matter, keep your eye on what Janet Patton writes in the Lexington Herald Leader. (See link at the top of this thread.) The paper has made a decision to get serious about covering bourbon and she is their lead reporter on that beat. She has made a serious effort to learn the business and she's not just reprinting press releases like some media folks. (Although she did in the case of the story above.)

Chuck Dumb question of the day. What is the point of having 2 OGD 80 proofs ( Basil Hayden and OGD 80) and no OGD 86 ?

[theglobalguy]

Although Old Grand-Dad is not particularly fashionable, it's a much bigger brand than Basil Hayden volume-wise, so fears of OGD stocks being pilfered to supply BH are probably as unfounded as the similar concerns about Weller and Van Winkle. On the other hand, they did cut the proof of OGD from 86 to 80 not long ago. They said it was to better support the Bonded and 114, but you can probably add BH to that list, as it's the only other brand in Beam's portfolio that uses the OGD recipe.

On a related matter, keep your eye on what Janet Patton writes in the Lexington Herald Leader. (See link at the top of this thread.) The paper has made a decision to get serious about covering bourbon and she is their lead reporter on that beat. She has made a serious effort to learn the business and she's not just reprinting press releases like some media folks. (Although she did in the case of the story above.)

Actually to her credit, she included more data and quotes than the other places i saw this posted. Glad one of the "home team" newspapers is treating this more like an industry and less like a tourism PR campaign pass along.

[mbroo5880i]

I have actually been seeing MM at lower prices in the Indy area recently.

[cowdery]

Chuck Dumb question of the day. What is the point of having 2 OGD 80 proofs ( Basil Hayden and OGD 80) and no OGD 86 ?

The typical consumer doesn't know there is any connection between Old Grand-Dad and Basil Hayden. Also, BH is older.

[camduncan]

Slightly off topic, but also related..... Bill Samuels will be in Australia next week to launch Makers 46 here, so I'd say they're going to see a spike in sales growth here as well. But, of particular interest is that they are launching it at a few retail outlets of a large nation-wide chain, but it won't be available there as it will only be sold by boutique retailers. Makes me wonder if they have supply issues and wouldn't be able to meet the demand of said nation-wide chain. RRP will be $80 (compared to $45 for our 80 proof MM version)

[P&MLiquorsEric]

Slightly off topic, but also related..... Bill Samuels will be in Australia next week to launch Makers 46 here, so I'd say they're going to see a spike in sales growth here as well. But, of particular interest is that they are launching it at a few retail outlets of a large nation-wide chain, but it won't be available there as it will only be sold by boutique retailers. Makes me wonder if they have supply issues and wouldn't be able to meet the demand of said nation-wide chain. RRP will be $80 (compared to $45 for our 80 proof MM version)

I bet that chain stepped up a while ago and committed to buying X number of pallets in return for exclusivity for a certain time period. Beam/Makers simply allotted that amount into future forecasts. No spike occurs because it was already in forecasts. Reordering quickly might be a problem but I am sure the quantity initially ordered is fairly large. $80 bottles of products not named van winkle are not swift movers.

[camduncan]

$80 is an interesting price point in our market. It puts it well above the likes of Elijah Craig 12 and Eagle Rare 10 ($68 each), Rare Breed ($71) and just below Bernheim, Bookers and JD Single Barrel (all $85 each). I expect it'll be snapped up by bars, clubs, and Makers fans as well as people looking to give it as gifts, but I can't see it being a regular buy for most drinkers. Maybe it's by design though. It'll slow down the re-ordering process until the typical Christmas buy outs occur.

[mbroo5880i]

Of course, Basil is Old Grand-Dad. At least, on the label.

[squire]

And in spirit as well.

[tmckenzie]

I can tell you one thing, I ordered in a bunch of used markets barrels, for a whiskey we put in used barrels, our Irish style. Had some four roses in the mix too. I enjoy getting used barrels because there is always some whiskey left in each one. I have got a fifth out of wild turkey barrels before. So here come the makers barrels, I get set up to capture the forgotten nectar I knew was there. Boy was I sad, they had sucked those babies dry as a bone. I have never seen that. At least I got some out of the four roses. So makers must have their new extraction system in place.

[MyOldKyDram]

Whiskey Extraction Team. I wanna apply.

[bjbronwyn]

Slightly off topic, but also related..... Bill Samuels will be in Australia next week to launch Makers 46 here, so I'd say they're going to see a spike in sales growth here as well. But, of particular interest is that they are launching it at a few retail outlets of a large nation-wide chain, but it won't be available there as it will only be sold by boutique retailers. Makes me wonder if they have supply issues and wouldn't be able to meet the demand of said nation-wide chain. RRP will be $80 (compared to $45 for our 80 proof MM version)

[TunnelTiger]

Slightly off topic, but also related..... Bill Samuels will be in Australia next week to launch Makers 46 here, so I'd say they're going to see a spike in sales growth here as well. But, of particular interest is that they are launching it at a few retail outlets of a large nation-wide chain, but it won't be available there as it will only be sold by boutique retailers. Makes me wonder if they have supply issues and wouldn't be able to meet the demand of said nation-wide chain. RRP will be $80 (compared to $45 for our 80 proof MM version)

If you had 46 before you've got to get at least one bottle. It is fabulous!

[squire]

Sucked 'em dry eh? That's impressive.

[camduncan]

More info please Cam, what smaller sellers are you referring to? what chain store also? Look forward to trying this bourbon, the 80 proof version we have is only middle of the pack in my opinion!

This is the link to one of the release notices: http://www.urbansociety.com.au/urban-insider/giveaways/makers-mark-vip-competition/

[theglobalguy]

This is the link to one of the release notices: http://www.urbansociety.com.au/urban-insider/giveaways/makers-mark-vip-competition/

Is it normal for the distiller visit in AUS to be such an event? I don't imagine they get over there that often.

[camduncan]

We generally have someone visiting from one of the distilleries each year. We're a pretty big market for bourbon - I think I heard once that we are 4 or 5 in the world..... and we are number 1 in the world for RTD's (Ready to drink pre-mix cans/bottles) :skep: I also think I read on here once (from Chuck maybe) that we are a bigger bourbon consumer per capita than the US...

[squire]

I also buy Bourbon in a ready to drink container though mine's glass.

[theglobalguy]

Although Old Grand-Dad is not particularly fashionable, it's a much bigger brand than Basil Hayden volume-wise, so fears of OGD stocks being pilfered to supply BH are probably as unfounded as the similar concerns about Weller and Van Winkle. On the other hand, they did cut the proof of OGD from 86 to 80 not long ago. They said it was to better support the Bonded and 114, but you can probably add BH to that list, as it's the only other brand in Beam's portfolio that uses the OGD recipe.

On a related matter, keep your eye on what Janet Patton writes in the Lexington Herald Leader. (See link at the top of this thread.) The paper has made a decision to get serious about covering bourbon and she is their lead reporter on that beat. She has made a serious effort to learn the business and she's not just reprinting press releases like some media folks. (Although she did in the case of the story above.)

Man, you weren't kidding.

Great series of articles in there today (link to one of them below). Shipment volumes up 13% over a 5 yr run, revenue up 28% in same time period. Yikes. Each and every brand trying to fill in both the entry level flavored/low-shelf and the super premium. Laughing all the way to the bank.

http://www.kentucky.com/2013/08/10/2760399/the-spirit-of-kentucky-selling.html