Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
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Local, though, has many meanings among craft fans. "We've just gotten some of the larger West Coast brands—New Belgium, Lagunitas, and Oskar Blues. Now the local craft drinkers are expand- ing their horizons," says Edward Mulvihill, director of sales and marketing at Peco's Liquors in Wilmington, Del. Still, in its craft beer section, the store has a cooler door dedicated to local brews. On the spir- its side, "We have three craft distilleries in Delaware. People are into the 'drink local ' movement, and when they see us support- ing local distilleries, with better placement than the macro stores, that looks better for us." "People want to support local busi- nesses," agrees Karen Hamilton, regional marketing manager for Lagunitas Brewing Company. "But what does local mean? For some people that means buy American or buy in my region, and for some it means buy in my town. And local means different things for different products." Hamilton makes the point that craft aficionados are thirsty for variety, and sticking to just local producers may not satisfy that yen. Furthermore, craft brewers and dis- tillers often source raw ingredients from far away. That "local" brew may contain barley grown in Russia and malted in the U.K., and hops from Germany or New Zealand. "Commodities used to make beer and spirits are global," notes Shellhammer. American farmers are experimenting with growing and malting grain and raising hops because they believe there is a demand for local ingredients, he adds, but with the small scale remains issues of quality and, more important, price. The Question of Quality Just as with the idea of local, some con- sumers believe craft automatically connotes quality. That's not always true. "You are more likely to find a poor- quality craft beer than a poor-quality macro," says Shellhammer. Large producers have the sourcing clout, high-tech equip- ment, and controls to consistently ensure quality product. "Many people getting into the craft business are either not prepared or experienced enough." "Not all producers are making great beer, and some will be forced out," agrees Pat Fahey, content manager for the Chicago- based Cicerone, a certification program for beer expertise. (The certified cicerone is to beer what the sommelier is to wine.) "Ultimately, that will be good for the con- sumer and for the industry." TRENDS IN CRAFT SPIRITS I n America, Prohibition put a wrench into the micro-distilling industry; only the large corporate ventures survived and revived. "Craft distilling is about 20 years behind craft beer in terms of development," says Pennfield Jensen, executive director for the American Craft Spirits Association. But craft distilling is growing at a steeper rate than craft beer in a comparable period, thanks to the term craft already establishing a connection to quality. "Craft beer has paved the way, in many respects, for craft distilling," Jensen says. Still, the craft spirits market is a small 500 distillers, compared with craft beer's 3,200 breweries. "There is a stronger growth potential for craft spirits," he adds. With that growth potential, here are three rising trends in the spirits category. Gin revival. For many micros, vodka was the first choice because the clear spirit is relatively easy to make and, since it doesn't require aging, it can be sold right away, meaning quick cash flow. But, notes Edward Mulvihill, of Peco's Liquors in Wilmington, Del., "gin seems to be the spirit the consumers flock to. At Peco's, that's our biggest craft spirits category right now." Craft gin makers are "working with various botanicals," explains Jensen, "doing interesting variations on genever, Old Tom, and London dry gins." Matured browns. As the microdistilling industry continues to mature, so does its stock of spirits. Many producers have been laying down whiskey in barrels for the past five or six years. "Now it's time to start tapping those barrels," says Jensen, who predicts an influx of craft whiskeys will be hitting the market. "That's where craft spirits are going to be hot in terms of sales." "Brown spirits are king—bourbon and other whiskeys," echoes Peter Boutsikakis, co-owner of Riverside Foods in Chicago. He also sees a growing interest in rye whiskey. "Western and Midwestern distilleries are making some great ryes." Small bottles go big. Although the 750-milliliter bottle is standard for spirits, a number of craft distillers are packaging in the half-size 375 milliliter. "With the smaller format, my customers can try more different styles," notes Boutsikakis. Because craft can be expensive, the smaller bottle also allows for a smaller price. "It's not as big a barrier to a sale," says Mulvihill. 22 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com