2019-06-01_Market_Watch

(Chris Devlin) #1
Distributors Debut Digi-
tal Platforms....Southern
Glazer’s Wine & Spirits
launched Proof, a new digital
platform that allows customers
to search the wholesaler’s port-
folio, reorder, and discover new
offerings in late April. It
features product ratings from
Wine Spectator and Whisky
Advocate, as well as custom-
ized recommendations, food
pairings, and other informa-
tion. The initiative, which
also includes a new “customer
relationship management plat-
form” supporting the South-
ern Glazer’s sales team, is
currently available to custom-
ers in Indiana, Kentucky,
Washington, Florida, Oregon,
and South Carolina. Addi-
tional markets will be added
throughout 2019.
Meanwhile, Republic
National Distributing Co.
(RNDC) has also launched a
new digital platform. Known
as eRNDC, the platform gives
customers, suppliers, and sales

representatives
advanced digital
tools for ordering,
product search and
selection, order tracking,
and payments. Developed in
partnership with LibDib, the
eRNDC customer experience
initially launched in Georgia,
with more markets to follow.
The company will also add a
supplier experience featuring a
centralized portal for product
portfolio management, report-
ing, and analytics.

Hess Family Wine
Purchases Iron Corral....
Hess Family Wine Estates has
agreed to acquire the Iron
Corral Vineyard for an undis-
closed sum. Originally devel-
oped by Mildara Blass, Iron
Corral was most recently owned
by the Dallas Police and Fire
Pension System. Hess plans to
use fruit from the 420-acre prop-
erty—of which 186 acres are
planted, predominantly to
Cabernet Sauvignon—to

expand its luxury
portfolio. Situated
about two miles
from Hess’s Allomi
Vineyard in Pope
Valley, Iron Corral is expected
to form the backbone of the
company’s Lions Head Collec-
tion, and specifically the Lion
Tamer brand, as well as future
luxury products. Hess origi-
nally launched Lion Tamer
($45 a 750-ml.) with a red
blend and has since added a
Cabernet Sauvignon and
white blend to the range. In
addition to supplying its own
luxury brands, Hess will
continue to sell Iron Corral
fruit to other producers for the
foreseeable future.

Boston Beer Acquires
Dogfish Head....Massachu-
setts’ Boston Beer Co. has
purchased Delaware’s Dogfish
Head Brewery in an agreement
valued at $300 million. The
deal will fold Dogfish Head’s
portfolio and brewery into

Boston Beer’s larger corpo-
rate structure, including
putting Boston Beer’s sales
team in charge of Dogfish
Head. The deal, which is
expected to close near the
end of the second quarter,
will transfer more than
400,000 shares of Boston
Beer stock to Dogfish
co-founders Sam and Mariah
Calagione at $314.60 apiece.
Dogfish Head shareholders
will receive $173 million
from the sale, minus costs
associated with the deal. Sam
Calagione will join Boston
Beer’s board of directors, and
Boston Beer CEO Dave
Burwick will remain in his
role. The combined company
will remain an independent
craft brewery as defined by
the Brewers Association. As
of last year, Boston Beer is
the No.-2 craft brewery in
the U.S. and Dogfish Head is
the 13th, according to the
Brewers Association. mw
The Editors

mw
THROUGH

THE GLASS


JUNE 2019 | MARKETWATCHMAG.COM | MARKET WATCH 11

Marketing Giant Michel Roux Passes Away At 78
Michel Roux, who built Absolut Vodka into an icon, passed away
on April 30 at age 78. A native of France, Roux immigrated to the
United States in 1964 and started his career in hospitality. He joined
Carillon Importers in 1970, becoming president and CEO in 1981.
Carillon took on an obscure Swedish vodka brand called Absolut
in 1979; a year later its volume stood at 45,000 cases. Roux
conducted a revamp of Absolut’s packaging, and enlisted the
services of ad agency TBWA Worldwide. Together, they commis-
sioned artists—starting with Andy Warhol—to create what would
become the most successful spirits ad campaign in history. Running
for 25 years, the campaign made the Absolut bottle a cutting-edge
cultural symbol. Today, the Pernod Ricard-owned brand has global
volume of 11.25 million cases. Roux’s other big success at Carillon
was Bombay Sapphire—an upscale offshoot of the Bombay gin
brand that was entirely his own creation. Sapphire remains the
leader of the super-premium gin segment today, with U.S. volume
of around 1 million cases. After Absolut and Bombay Sapphire were sold, Roux left Carillon in 1998 and launched Crillon
Importers, focusing on high-end imports. “Michel had many friendships across the industry,” said Marvin R. Shanken,
chairman of M. Shanken Communications. “He was admired for his brilliant, individualistic style of marketing.”

Michel Roux (above with Marvin R. Shanken in 2015) made
a huge mark on the spirits industry, transforming Absolut
vodka into a global icon and creating Bombay Sapphire gin.

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