SPIRITS SPOTLIGHT
28 MARKET WATCH | MARKETWATCHMAG.COM | JUNE 2019MGP Builds Its Brand Stable
The premier supplier for spirits brands has a rising branded portfolio of its ownR
enowned as a massive liquid source for American
whiskey brands across the price spectrum, MGP
Ingredients has recently been developing its own
portfolio of spirits brands. That effort is led by drinks indus-
try veteran Andy Mansinne—formerly of Brown-Forman
and Aveníu Brands, among other companies—who joined
MGP in 2016 as vice president of brands. “We want our port-
folio to be brand-centric, we want to build it right, and we
want to go narrow and deep, meaning we want to get the first
market right before we go to the second,” says Mansinne.
The move to assemble the branded portfolio was born out
of MGP’s long-term strategic goal of taking value share in
the spirits category, particularly in whiskey. But Mansinne
says the company is careful not to go head-to-head in the
market with its customers, which have included brands
like Bulleit, Redemption, Sagamore, Templeton, and High
West, among many others. “We won’t compete directly on
positioning, concept, or price with any of our customers,”
he explains. As a supplier to other brands, MGP’s premium
beverage alcohol sales rose 5.9% to $188.4 million last year,
including an 11% jump for brown spirits to $125.9 million.
MGP launched its first brand, Till American Wheat vodka
($18 a 750-ml.), in 2016, and it’s now available in 14 states,
counting top players like Republic National Distributing
Co. (RNDC), Breakthru Beverage Group, and Southern
Glazer’s Wine & Spirits among its distributors. Whilethe overall MGP portfolio currently derives
about 60% of its sales from the off-premise,
Mansinne notes that Till has an opportunity
to carve out a niche in the on-premise space,
targeting farm-to-table accounts.
MGP introduced its first brown spirits label,
George Remus Straight Bourbon, in 2017.
A high-rye Bourbon aged for an average of
five years and bottled at 47% abv, Remus is
named for a famous Prohibition-era bootleg-
ger and retails at $40 a 750-ml. The brand is
also present at the high end with the 50% abv
Repeal Reserve expression ($85), which rolls
out annually on December 5 in celebration of
Repeal Day.
Last year, MGP debuted a second whiskey
label, Rossville Union rye, in a nod to the
company’s Lawrenceburg, Indiana distillery,
which originally opened in 1847 as Rossville
Distillery. Rossville Union includes a 47% abv
expression ($40 a 750-ml.), typically aged
5-7 years, along with a Barrel Proof edition ($70) bottled
at 56.3% abv. Most recently, the MGP portfolio expanded
with the addition of Eight & Sand, a 44% abv blended
Bourbon ($30). A mix of Bourbon, rye, corn, and light
whiskies, Eight & Sand is a sweeter offering intended to
appeal to a younger and less developed whiskey palate.
Moving forward, Mansinne sees potential in adding a
gin to the range, noting MGP’s position as a top U.S. gin
distiller. Meanwhile, the company will gradually expand its
brand portfolio into more states. Up next is Texas, where
MGP has partnered with RNDC. “We’re taking a long-
term perspective with our brand portfolio,” Mansinne says.
While development of the branded portfolio is part of
MGP’s ongoing evolution, the company remains focused
on its core sourcing customers, and continues to fine-tune
its game in that area. Last summer, for example, MGP
lowered its order requirement for craft distillers, reducing
the minimum level to 250 barrels for proprietary mashbills,
compared to the previous level of 1,000 barrels. The company
announced it would allow customers to pool orders with
other craft players to reach that 250-barrel minimum. In
addition, MGP provides support to its customers by offering
customized entry proofs, the option of using either new or
used barrels, and the ability to store and age their products
in an MGP rackhouse. mw
Daniel MarstellerIn developing its own brand portfolio, MGP Ingredients debuted Rossville Union
rye whiskey last year in a nod to the company’s Lawrenceburg, Indiana distill-
ery (exterior above), which originally opened in 1847 as Rossville Distillery.