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2 INDUSTRY INSIGHT

By Alan Forester, CPA, Attorney

4 INDUSTRY REPORT

THINKING INSIDE THE BOXBox wine's eco-chic packaging andbetter quality appeals totrendsetting consumers

6 INDUSTRY REPORT

FINDING EFFICIENCIES

IN SHIPPING

How are beverage alcoholcompanies coping with highertransportation costs?

12 CATEGORY FOCUS

IRISH WHISKEY

18 POUR OF THE MONTHFINEST CALL MIXERS

20 COVER FEATURE

SOBIESKI VODKA

THE TRUTH IS OUT THERE

Last year, Sobieskis less is morepositioning approach turned headsand won fans. This year, thewinning tactic gives it strongerfooting in an ever-changingmarket.

30 COCKTAIL CORNER

34 SPEAK EASY

AN INFORMAL CONVERSATION

WITH SIMON HUNTPresident, William Grant & SonsUSA and Managing Director,North America

38 COMPANY PROFILE

PROXIMO SPIRITS

40 INDUSTRY NEWS

44 NEW PRODUCTS & PROMOTIONS6

12

20

BINBINInsideInside

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2 B I N 2 0 0 9 I S S U E 3

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BINBeverage Industry News

VOLUME 97, ISSUE NUMBER 32FOUNDED IN 1934www.binonline.net

SEXUAL HARASSMENT BY A CO-WORKER

Generally Employers can be liable for act of their employees in furtherance of their duties.

However, employers should also safeguard their employees from harm including harm by sex-

ual harasser.In California, every two years an employer with 50 or more employees must provide at

least two hours of classroom or interactive training and education regarding sexual harass-

ment to all supervisory employees. New supervisory employees must receive such training

within 6 months after being hired.

This training should include information about the prevention and correction of sexual

harassment and the remedies available to victims of sexual harassment in employment. Also,

the training should include practical examples of workplace sexual harassment.

Just providing this training will not guarantee that an employer will not be held respon-

sible for sexual harassment of any current or former employee or applicant, but it will great-

ly reduce the chances of liability.

There are several theories on which an employer may be subject to liability for sexual

harassment in the workplace:

1) Harasser as Employer's Proxy: A supervisor with a sufficiently high position in

management may be treated as the employer's proxy, and so his or her abusive

conduct is automatically the responsibility of the employer.

2) Quid Pro Quo Harassment by Supervisors: The employer is vicariously liable

when a supervisor requests sexual favors in exchange for job benefits. The

employer cant avoid liability by claiming that they didnt know of the

supervisor's conduct or that the supervisor's conduct violated the employer's

announced anti-harassment policies.

3) Hostile Environment Harassment Created by Supervisors: Employers may also be

liable for sexual harassment by a supervisor that creates a hostile workplace

environment. The employer is subject to liability if a supervisor who had

authority over the employee created a hostile environment.

It should be noted that the employer is not vicariously liable for hostileenvironment sexual harassment created by the plaintiff's coworkers or

other non-supervisors.

But, the employer may be directly liable if it knows of the harassment

and fails to stop it.

The legal standard for evaluating the employer's efforts to prevent and correct sexual

harassment is whether its actions as a whole established a reasonable mechanism for preven-

tion and correction. Although proof that the employer had an anti-harassment policy and/or

complaint procedure wont completely insulate the employer from a lawsuit, it will be looked

at as very relevant to whether the employer exercised reasonable care to prevent the harass-

ment. Merely persuading known harassers to cease their activities may not be enough if the

employer takes no action to ensure that the harassment stops. Whether a complaint mech-

anism is reasonable may depend on the employees involved. For example, if your employ-

ees cannot speak English, a complaint procedure in English would not be reasonable.

Similarly, if you own a company that employs mostly teenagers, your policies and procedures

should be understandable by the average teenager.

Providing training, educating your employees about the laws and the companys policies

towards sexual harassment, and dealing with all complaints completely and quickly is the best

way to safeguard yourself against a sexual harassment suit.

Alan Forester is an attorney, CPA and an expert witness in Alcoholic Beverage Control

Law. For more information, please visit www.ABClawyer.com or call 800-464-1040. I

Disclaimer: This article is not to be construed as legal advice. Please check with an attorney before

taking action.

INDUSTRY INSIGHT

BYALAN FORESTER, CPA, ATTORNEYWWW.ABCLAWYER.COM 800-464-1040

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THE BRASS DOORA San Ramon Landmark since 1955

In 1946, Howard Shorty Schlesinger opened the 8/5 club (hisfavorite odds at the track) in San Ramon, population 100. This wasa six-stool bar and twenty-person dining facility, featuring steam

beer and fried chicken. In 1955, Shortys son, Mickey and a localdairy farmer, Dick Basso, bought the 8/5 Club and named it TheBrass Door. They expanded the facility five times in the next 15

years to its current size, a 20-stool bar and cocktail lounge seating160. With Dick and Micks retirement in 1974, Dicks son Dannytook over the restaurant and has been operating it to this presentdate. In April 1994 a fire completely destroyed the building and itwas rebuilt and opened again in December of that year.

The Brass Door features USDA Choice, Midwestern, Corn FedBeef, fresh seafood, spectacular salads, and fresh pasta.Some of the favorites of the house include the Slow

Roasted Prime Rib of Beef au Jus (12 oz), and theBlackened 14oz Ribeye Steak. For a lighter fare,try the Shellfish Saut with Pan seared Prawns andScallops, Sauted with garlic, tomatoes and freshherbs. Or, maybe the Poached Salmon Salad, withcreamy mustard sauce, assorted field greens, grapetomatoes, and Mediterranean kalamata vinaigrette.

At the Bar, The Brass Doors mixes of Choiceare Finest Call which feature a complete line ofsuperior mixes from Sweet & Sour, Grenadine,Pomegranate syrup, Bloody Mary mix, the

Strawberry, Raspberry and Mango Purees to thepremium Cosmopolitan Martini, Sour AppleMartini and Mojito mix.

As Owner Danny Basso says, This is a placewhere generation after generation of families havecome to meet family and friends, and we alwaysoffer them the best quality in the restaurant andat the bar. And, that includes Finest Callmixes, which are the best.

The Brass Dooem is located at 2154 Sanramon Blvd., San Ramon, CA 94583. I

POUR OF THE MONTH

FinestCALL

BartenderMichaelDickersonshowsofftheFinestC

all.

FinestCALL

POUR OF THE MONTH

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Chester Brandes,

President and CEO

of Imperial Brands, Inc (left)

and Timo Sutinen,

Vice President of Marketing

and Business Development,

Imperial Brands, Inc. (right)

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Last year, Sobieskis less is more positioning

approach turned heads and won fans. This year, the

winning tactic gives it stronger footing in an ever-

changing market.

Its hard to believe that at this time last year, the

Vodka category was booming. From 2002-2008,there was an unprecedented number of new

vodka launches that underscored how enduring

and versatile this spirit category was.

Furthermore, cocktail culture was coming of age

from coast to coast, and vodka was one of the

spirits that drove its popularity. It was also safe

to say that a number of entrepreneurs had found

many ways to reinvent that wheel.

In the midst of vodka-mania, Polands

Sobieski Vodka was launched in the U.S. in

2007, under the auspices of Imperial BrandsCEO/President Chester Brandes and Marketing

and Business Development VP Timo Sutinen.

Both individuals have a long history of experi-

ence in the industry selling and marketing pre-

mium brands which include, among others,

Stolichnaya and Finlandia Vodkas, Amaretto di

Saronno, Remy Martin Cognacs and Cruzan

Rums. However, in a category where celebrity

endorsements, designer glass bottles and high

tech distillation claims abound, Brandes and

Sutinen dared to take the road less traveled and

launched Sobieski Vodka with a then-controver-

sial proposition: a truly great vodka could bepriced reasonably, and be free of all the extra

bells and whistles!

The vodka boom may be cooling, and the

outlook for some high profile brands has chilled

during this wintery economic period. Palm

Beach Gardens, Florida-based Imperial Brands,

however, is just warming up and shifting their

successful Truth in Vodka story into a higher

gear. Though the media campaign was initially

launched in summer 2007, it is now being exe-

cuted in an economic environment where tradeand consumers are ready to embrace the truth

and see the light.

FIRST A BIT ABOUT US

Sobieski proudly stands apart from the lack of

substance embraced by so many vodkas today,

says Brandes. We offer a superior product at a

superior value-the leading premium vodka brand

in Poland, vodkas birthplace-and we wont try

to generate appeal with contrived or empty gim-

micks. Our story is about real vodka thats

SOBIESKI VODKATHE TRUTH IS OUT THERE!

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22 B I N 2 0 0 9 I S S U E 3

meant to be enjoyed, not worshipped, and we have and will contin-

ue to share our point of view with the world. We are a brand with

nothing to hide, and the confidence (and humor) to talk about our-

selves in simple, straightforward and black and white terms.

In our first full calendar year, Sobieski depletions reached 255,000

cases in the U.S, says Brandes. Moreover, were setting our sights on

being the fastest new vodka brand to achieve sales of one million

cases, an ambitious but achievable milestone. From distributors to

retailers, Sobieski Vodka has received outstanding support, which hasmade our initial success possible. In addition to Sobieski, Imperial

Brands has recently taken over the representation of Marie Brizard, the

worlds leading premier line of cordials and liqueurs. In spite of a not

so favorable economy, we are convinced there is tremendous potential

to develop Marie Brizard in the States. There is no preemptive, premi-

um line of cordials doing significant volume in this market. Most pro-

fessional mixologists will tell you that when it comes to quality, Marie

Brizard is heads and shoulders above the competition. We need to

retell and educate a generation of consumers and the on-premise trade

about the virtues of this great brand, a challenge we gladly accept.

Imperial Brands is in the process of launching a line of premium

(Tcherga) and Estate wines (Katarzyna) from Bulgaria. Again, this is

an education process, Bulgaria has a winemaking tradition dating back

some 3,000 years. The Belvdre Groupe has extensive viticultural

holdings in Bulgaria and up until recently quality entries from Bulgaria

were not available in North America. Based upon the accolades our

wines have received from prominent writers thus far, there is no reason

why Bulgaria cant become the next exciting new world wine pro-

ducing country. Finally, we have new and innovative products in our

pipeline that we believe will continue to shake up the exciting world

of wine and spirits.

BACK TO BASICS

While Sobieski Vodka is carving out a place for itself in the crowded

vodka market with a classic bottle and a simple promisegreat quality

and valueThe Imperial Brands team is out there presenting the trade

and consumers alike with just the facts, but in a warm and humorous

way that strips away the hype that defined the category and brings their

audience back to Earth. Truths that draw upon Sobieskis noble origins

and the fact that it is both the #1 premium vodka in Poland and one of

the worlds bestselling and fastest growing vodka brands. They alsomake no bones about the fact that Sobieski Vodka, produced at the

Starogard Gdansk Distillery, founded in 1846, is made exclusively from

the revered Dankowski rye, the grain of choice for most premium

Polish Vodkas. Moreover Brandes notes, Christophe Trylinski, CEO

of our group and the father of Sobieski vodka is the man who created

both Belvedere and Chopin vodkas, no small accomplishment!

Backing up Imperial Brands claims, meanwhile, are many indus-

try awards and accolades. In the fall of 2007, Sobieski Vodka, in a

blind tasting by the Beverage Testing Institute of 108 brands in the

premium vodka segment (the largest review of vodka in its history),

earned a Double Gold Medal and Best Buy Award. Sobieski also

ranked #1 in a blind-tasting of 25 major international vodka brands

conducted in Paris by La Revue du Vin de France, one of Frances

top wine and spirits publications.

I think the Chicago Beverage Testing Institute results prove

our point about consumers not having to pay a kings ransom to get

great vodka, points out Brandes. In this competition, Sobieski

scored 95 points, coming in second place to a vodka brand that

retails for $60/bottle! As our retail is around $10-11/bottle, it rein-

forces what weve been saying all along about our positioning. You

can pay $60 for a great vodka, but you certainly dont have to!

SOBIESKI VODKA continued

...Our story is about real vodka thats

meant to be enjoyed, not worshipped,

and we have and will continue to share

our point of view with the world. We

are a brand with nothing to hide, and

the confidence (and humor) to talk

about ourselves in simple, straightfor-

ward and black and white terms.

Chester Brandes,Imperial Brands CEO/President

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24 B I N 2 0 0 9 I S S U E 3

A CLEAR AND PRESENT WAGER

As consumers and trade are in the midst of shifting their spending

priorities, and now generally steering clear of excess expenses,

Sobieski Vodkas suggested retail prices of $10.99 for a 750 ml bottle

and $19.99 for a 1.75 liter bottle are now more seductive than ever.

While Sutinen and Brandes acknowledge that even recession-proofareas of commerce feel the effects of change, they are prepared to

ride the wave on their own terms, no matter how stormy the seas get.

We are pretty much sticking with our strategy as it has worked

extraordinarily well, affirms Brandes. The fact that there was a

meltdown in the economy is something nobodys happy about. On

the other side of the coin, however, were in a unique position to

capitalize on that in terms of customer and demand for a high quali-

ty vodka at an affordable price. It is important to reiterate that

when we launched Sobieski in the U.S. in 2007, for all intents and

purposes, the economy was normal. Our original strategy was the

same: you did not have to pay $30 a bottle to get great vodka. We

intend to remain consistent with our message, even though times

have changed. In many respects, there is no doubt that the current

economic climate has helped us in terms of our competitive price

positioning.

Though many of the spirits Sutinen had worked with in the past

had a lifestyle-driven or status-conscious message, experience has

taught him that there are sound principles that work for marketing

spirits, no matter what economic conditions are like. And in the

case of Sobieski, they promise to be even more effective.

We are pointing out the spirits origins very clearly, notes

Sutinen. It was especially important for us to address and explain the

Polish origin because many consumers and trade clients place valueon the fact that Poland is the birthplace of vodka. That is important

to us in all of our communications and messages. Furthermore, the

Truth in Vodka campaign clearly resonates with consumers and crit-

ics alike and differentiates Sobieski from the competitive set. Sobieski

Vodka is all about outstanding quality and taste. And though the

whole industry is suffering from the effects of the downward economy,

we do not suffer as much because of our brand positioning; we will

continue to spread the truth to an even wider audience and help

them overthrow the tyranny of overpriced vodka.

Though these messages are successfully hitting their targets, the

biggest challenge facing the brand lies in building on the momen-

tum established since Sobieskis U.S. debut. The company is betting

that maintaining/increasing the level of spending and commitment

to the three-tier system theyve had in place for Sobieski Vodka

since its U.S. inception will pay off. We have made promises to

the trade and it is critical to our and the brands credibility that we

keep them!! reiterates Brandes.

IT IS NOT ONLY ABOUT THE MARKETING!

It takes more than a great marketing campaign to build a brand in

todays highly competitive environment. The effects of consolida-

tion on a new companys ability to successfully launch a brand are

challenging to say the least, remarks Chester Brandes. We are very

fortunate that the Belvdre Groupe has made the U.S. market its

top priority worldwide. As a result, sufficient resources have been

made available to successfully launch and sustain Sobieskis growth

in the States.

Under the direction of Bob Reider, industry veteran and our VP

National Sales Manager, we have been able to assemble a team of

experienced sales people capable of hitting the ground running,

says Brandes. Unlike many companies that are cutting back on

their sales force, Imperial Brands has added eight additional full time

people in 2009 making a total of 23 people in the field. In

Northern and Southern California alone we have added three per-

manent positions in the past year. Our major focus in California

this year is in increasing chain distribution; this can not be accom-

plished without dedicated, committed manpower in the state. Webelieve, however, that based on the short but highly successful histo-

ry weve had, Sobieski is garnering awareness and credibility

amongst the buyers in this all important segment of the market

which should facilitate our ability to get listings on the brand. On-

premise, meanwhile, is important, especially in trendy cutting edge

cities like San Francisco. Weve just put a salesperson in the Bay

Area, not only to help with Sobieski, but our other products with

high on-premise potential like Marie Brizard.

IMAGE, PURE AND SIMPLE

Brandes and Sutinen will be the first to admit that even withSobieskis initial success against all the odds, it is not enough to sim-

ply have a great vodka on the market with nice packaging and

value. The third piece of the puzzle is popular support for what the

brand stands for. In Sobieskis case, its about simplicity and honesty.

You need to create a personality for your brand, says Brandes.

Thats key to this whole thing. When you cultivate a consumer

following, it is so important to give customers a reason to associate

themselves with a brand. When we first saw the Truth in Vodka

campaign, that was itwe knew that was the message that con-

sumer and the trade wanted to hear. The reality is that consumers

and the trade are confused about the all the myths and misconcep-


Starogard Gdansk Distillery, founded in 1846

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26 B I N 2 0 0 9 I S S U E 3

tions in the category. Vodka made from

grapes? A bottle from the hottest designer?

A race to distill one more, two more, five

times more than the next guy? A hefty price

tag that magically transforms so-so vodka

into something more special? Are these

things that make vodka truly superior? We

beg to differ. The timing was right for us to

launch a quirky and fun campaign aimed at

reinforcing the fact that consumers did not

need all the extra stuff to have a vodka they

could truly appreciate.

Adds Sutinen, With Sobieski, we took a

different route than the other brands weve

worked with, in that when we introduced

our brand, we stressed the importance of get-

ting back to basics, especially in these eco-

nomic times, where it means something to

our customers to have a super premium qual-

ity vodka with a great price point. We want-ed to strip away all the gimmicks and claims,

and educate people on what vodka really is

and what it takes to make a great vodka

ingredient-wise and quality wise, and ulti-

mately premium vodka does not have to cost

that much. And look at the Sobieski bottle;

it does a terrific job of containing the pure

excellence of a great vodka. And it's not

bad to look at either.

Sutinen goes on to explain that to keep

Sobieskis now famous marketing and adver-

tising up-to-date, they are investing signifi-

cant money in a number of different areas.

The original framework of the campaign has

been expanded to encompass all aspects of

integrated marketing including advertising,

events, promotions, outdoor, trade activities,

consumer magazines and digital. The

Imperial Brands team, meanwhile, is keeping

their finger on the pulse of industry trends,

current events and pop culture to infuse new

life into the basic message of the campaign.

The nice thing about the brand posi-tioning and maintaining the continuity of

our messaging is that we are also open and

flexible, says Brandes. Whenever some-

thing topical surfaces, like an election, the

downturn of the economy or perhaps one of

our competitors coming out with a new out-

rageous quality claim about their product,

this provides us with fresh material to create

new executions while at the same time

always remaining consistent with the basic

message of the campaign. While I dont

anticipate a plethora of new vodka introduc-

tions as we have seen in the past, even in the

present economic environment there will be

a limited number of new brands entering dis-

tribution channels. And when they do arrive

and start making crazy claims, we will be

there to alert the consumer to beware!

On the public relations side, Sobieskis

Truth in Vodka campaign was deemed so

effective that it was named a finalist by the

authoritative trade magazine PR Week for the

best Consumer Launch Campaign of the Year.

Brandes is quick to point out that Sobieski is

the only spirit brand that is in the finals of

this prestigious competition. Sutinen, mean-

while, notes that in 2008 Sobieski was the

recipient of Impact Magazines coveted Hot

Brand Award as well as a Growth Brand

Award from Beverage Information Group.Brandes says the fact that the industry has

recognized Sobieskis performance validates

our belief that consumers are much less will-

ing to open their wallets for gratuitous bling

and presumed status on items that dont live

up to their overblown price tags. Moreover,

based upon the brands outstanding sales

results to date, there is no question we are get-

ting a great response through the entire three-

tier system.

GETTING WHAT THEY PAY FOR

Awards aside, Brandes expresses that the key

to Sobieskis overall success is that consumers

are getting what they pay for - a real brand of

vodka that not only offers quality for a great

price, but is differentiated and legitimized by

being the top selling premium vodka in its

country of origin and vodkas birthplace.

Brandes then goes back to repeat very

pointedly that the strategy for Sobieskis con-

tinued success is to do more of the same in

2009, which encompasses increasing theinvestment in advertising, marketing and PR

while continuing to hammer home the same

message and strategy that has worked thus far.

If you look at our packaging, it is clean,

classic and simple, continues Brandes. It

is not Belvedere or Grey Goose. It is

Sobieski, and we knew we could not price

ourselves in the $30 range, even though

many of the new entries in the category

were chasing Grey Goose and Belvedere at

RECIPES FOR SUCCESS

HOT MAMACreated by Tad Carducci

Ingredients:

2 oz. Sobieski Vodka

3 oz. tomato juice

1/2 oz. fresh lemon juice

4 dime-sized slices of fresh ginger

8-10 fresh cilantro leaves

1/2 oz. soy sauce

Dash of Sriracha sauce (Thai spicy sauce)

or your favorite hot sauce

Dash of salt and pepper

Technique:

Muddle cilantro and ginger. Add remaining

ingredients. Shake over ice and strain into mar-

tini glass rimmed with equal parts coarse salt,

black pepper and chili powder. Garnish with

Asian pickled cucumber.

BROKEN LAWNMOWERCreated by Tad Carducci

Ingredients:

1-1/2 oz. Sobieski Vodka

3 oz. chilled beef bouillon

2 dashes Worcestershire sauce

2 dashes Tabasco sauce, or to taste

1 dash habanero sauce (optional)

1 oz. fresh orange juice

1/2 tsp. chipotle powder

Juice of 1/2 lime

Spicy Salt (equal parts coarse salt, black pepper,

chipotle or regular chile powder and lime zest)

Technique:

Moisten rim of highball glass with lime. Roll

outer lip in a saucer filled with the spicy salt

mixture. Shake all ingredients thoroughly.

Strain over ice into the pre-rimmed highball

glass. Garnish with a lime wedge and a pickled

hot pepper.

GREEN CONCEPTCreated byFrancesco LaFranconi

Ingredients:

1-1/2 oz. Sobieski Vodka

1/2 oz. Marie BrizardTriple Sec

4 wheels of Cucumber(leave skin on and cut them 1/4 thick)

1/2 oz. fresh squeezed Lime Juice

Top-up with 3 oz. lemon-lime soda

Technique:

Place the cucumber wheels in a rocks glass with

the lime juice and muddle for just few seconds.

Add ice cubes and Sobieski vodka with Triple

Sec. Top with lemon-lime soda. Stir and serve.


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the high end. In terms of volume, however, it is important to

remember that of the 52 million cases of vodka sold in America,

the majority are not sold at the $30/bottle level.

We knew immediately that in Sobieski Vodka we had a unique

opportunity within the category in terms of quality and positioning,

interjects Sutinen. It is such an easy product to sell and I am

thrilled to be associated with this brand.

SIMPLE PLEASURES

Likewise, there is a fan base of mixologists across the country whoare also happy to be a part of the Sobieski Vodka less is more revo-

lution, and are showing their appreciation by developing recipes for

the brand.

Recently, we updated the brands web site to include some fan-

tastic recipes from noted mixologists throughout the United States,

affirms Sutinen. Junior Merino, Tad Carducci and Francesco

LaFranconi are all members of our great mixologist stable. Because

the cocktail culture is so strong in the U.S., and people are still up

to trying new drinks, we are working closely with them to develop

new recipes.

Brandes, like Sutinen, has received similar feedback from profes-

sionals who have commented on Sobieski Vodkas crisp, clean and

pure flavor. They know it is a versatile vodka thats got a lot of

integrity, especially as the grain we are using is authentic and pre-

ferred among connoisseurs and other vodka makers. Because of the

products neutrality, professionals know Sobieski Vodka is an ideal

base for any kind of cocktail. You dont get a strong aftertaste, and

that makes it extraordinarily mixable.

While classic Sobieski Vodka is continuing to ride high because

of its versatility, Brandes and Sutinen coyly mentioned that there

are flavored varieties in the works and a tentative launch date has

been set for late spring 2009. Though the flavors are for now a

tightly guarded secret, Brandes and Sutinen assure their trade and

consumer fans that the new additions to the Sobieski family will

remain true to the standards set in the Truth in Vodka campaign.

The flavors that we are perfecting right now will be of the high-

est quality, and will add to our mixologists toolkit facilitating the

creation of new cocktails, assures Brandes. Though the originalSobieski Vodka is a perfect platform for many cocktails, we know

from mixologists that sometimes the ingredients needed to achieve a

certain flavor profile are not necessarily available in a non-alcoholic

format. Therefore, we are addressing that issue with the assortment

of flavors that we will be launching. What will remain the same,

however, is that our new Sobieski flavors have to be better quality

than what our competitors are putting out there. This is what drives

the brandperiod! Whether it is a neutral or flavored spirit, what

we do has to be unparalleled, with all natural ingredients.

Flavored vodka got a lot of attention, especially because the

media likes all those stories of how exotic things come into being,

concurs Sutinen. Over the years, flavored vodkas have had a

strong presence in the retailer sector. However, knowing what we

know about vodka consumption from our years in the business, fla-

vored vodkas total maybe about 15% of overall sales. It is not very

big, as the popularity of neutral, unflavored vodkas is much larger,

because pure vodkas like Sobieski are easier to mix and make into

good cocktails. However, we will have flavors, because there is a

demand and we want to show the consumer that we can produce

excellent flavored vodka as well.

Although there is great anticipation and excitement among the

Imperial Brands staff, especially with more landmark sales records

and innovative flavored vodkas on the horizon, Brandes andSutinen acknowledge that their greatest sense of accomplishment

thus far was launching a vodka that figuratively and literally went

against the grain to find its niche in the category and the spirits

world at large. They take special satisfaction in having created a

personality for the brand that is proud, independent minded, not

easily labeled or categorized and, most importantly, doesnt take

itself so seriously.

I could talk all day long about how great Sobieski Vodka is, but

the reality is that a brand is not truly great until other people start

telling you so, says Brandes. We have had the good fortune to be

able to start this company from inception enabling us to create a

persona and strategy for Sobieski in the most competitive category

in our industry; it is a once in a lifetime opportunity. Couple that

with an incredibly supportive parent company and a highly motivat-

ed and dedicated team of professionals at Imperial Brands and its no

wonder that our strategy is working! There is an enormous sense of

satisfaction in seeing all of this unfold, Ive been fortunate in my

career to have had pieces of that feeling with former companies and

brands, but nothing as whole or complete as this.

For more information about Imperial Brands and Sobieski

Vodka, visit www.vodkasobieski.com. I

...Sobieski Vodka is all about outstanding

quality and taste. And though the whole

industry is suffering from the effects of the

downward economy, we do not suffer as

much because of our brand positioning; we

will continue to spread the truth to an even

wider audience and help them overthrow

the tyranny of overpriced vodka.

Timo Sutinen,

Marketing and Business Development VP


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The launch of the Cherry and Root Beer fla-

vors to Three Olives Vodkas already prolific

and colorful collection has already generated

excitement among creative mixologists, savvy

restaurateurs and adventurous cocktail-drink-

ing consumers. However, Proximo recently

announced the U.S. launch of an ambitious

multi-million dollar advertising campaign for

the Three-O family of vodkas that asks con-

sumers, Whats Your O-Face? The brand has

a bold new package---sleek, frosted bottles and

bold graphics that represent the flavors inside.

Set to debut in the March issues of leading

U.S. magazines such as Maxim and Us

Weekly, Three Olives campaign features aseries of models showing surprise at the stun-

ning array of Three-O Vodka flavors.

Additionally, a major online campaign invites

consumers to upload their picture and profile

with the chance to win a cash prize of $10,000

and a photo-shoot with a leading publication

as the new face of the product.

Three-O has carved a niche out from our

stuffy competitors with a message of being

seriously fun, remarked Gino Luci, Proximos

Senior Marketing Manager. In a market

where the traditional brands are declining, we

are seeing very high, double-digit growth for

Three-O. Consumers and the trade demand

something fresh within the most important

spirits category and Three-O is delivering.

On the tequila front, Gran Centenario is

revealing the spirits more romantic side via a

national launch of its newest tequila, Gran

Centenario Rosangel, touted as first-ever hibis-

cus-infused tequila. The fragrant new variety is

being positioned to become a tequila of choice

for mixologists and customers looking for

imaginative ways to update classic cocktails

yields a complex, perfumed nose with ripe fr

and floral notes, plus hints of vanilla. T

palate holds flavors of dried fruits, which le

to a smooth and gentle finish.

We are very excited to expand our G

Centenario Tequila portfolio to include

offering that adds a sophisticated twist to

ultra-premium line-up, said Miche

Sanders, Senior Marketing Manager, Proxim

Rosangel speaks to both womens and me

palates, and is superb when enjoyed neat,

the rocks or mixed into cocktails.

Proximo has also moved forward with

launch of the new tequila brand AZUL, from

house of Gran Centenario. Noted as Mexi

fastest growing Tequila in the 100% Agave s

tor, Azul represents a revolution for the categ

with its sleek packaging and content sour

from family-owned ranches. Tprice, $19.99 per 750 ml, represe

great value for a quality product.

This is the perfect Tequila brand

the current economic climate, asse

Elwyn Gladstone, Marketing Director

Proximo Spirits. People are looking

brands that offer exceptional value and qu

ty. Everything we do at Proximo must be d

unique and highly differentiated.

believe the superb packaging and incre

ble liquids will be some of the stand out

2009 in the beverage world. I

PROXIMO SPIRITS

The Next Big ThingsProximo starts 2009 with the introduction

of new, flavorful variations on their top

selling Three Olives Vodka, Gran Centenario

and Azul Tequila products

By Elyse Glickman

BRAND PROFILE

}

Chocolate Covered Cherry1 oz. Three-O Chocolate Vodka

1 oz. Three-O Cherry Vodka

1 oz. White Crme de Cacao

Shake with ice and strain into a martini glass

& garnish with a cherry

Rock Star Root Beer1 oz. Three Olives Root Beer Vodka

1 oz. Three Olives Vanilla Vodka

4 oz. Ginger Ale

Mix in a glass filled with ice &

garnish with a cherry

}

Proximo Spirits has taken the in with the new theme to

new heights with several exciting product launches as well

as a landmark ad campaign and a sales milestone this spring.

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INDUSTRY NEWS

TSINGTAO BEER APPEARS ON "TODAY SHOW"

WITH CHEF MARTIN YAN

Tsingtao Beer played a supporting role alongside celebrity chef Martin Yan during a recent appear-ance on the "Today Show". Master Chef Yan appeared with hosts Kathie Lee Gifford and Hoda Kotbon the popular morning news program, where he prepared Asian recipes using Tsingtao Lager.

Tsingtao Lager and Tsingtao Pure Draft are leveraging the popularity of Chef Yan during ChineseNew Year, and via sponsorship of his year-long "Yan Can Cook" Road Show tour, where he willmake appearances at both trade and consumer events in major markets through out the U.S., target-

ing culinary schools, cooking demonstrations at professional tradeshows, supermarkets, and festivals.A "Cooking with InspirAsian" national consumer sweepstakes featuring Chef Yan will run in chaingrocery stores in June and July, with two winners flying to one "Yan Can Cook" Road Show host cityas Tsingtao VIPs and joining Chef Yan on stage to cook one of his signature dishes.

HEINEKEN USA PRESENTS KOZOL BROS. AND HARBOR

DISTRIBUTORS WITH SECOND ANNUAL 1864 AWARD FOR

RESPONSIBILITY

Reinforcing the companys commitment to encourage the responsible consumption of beveragealcohol and to support its customers shared commitment to that goal, Heineken USA todayannounced the recipients of its annual 1864 Award for Responsibility Kozol Bros. from Joliet, Ill.and Harbor Distributing of Southern Calif.

The awards name recognizes the year Gerard Adriaan Heineken founded the Heineken com-pany, based on the ideas of moderation and responsibility.

The belief in moderation and responsibility is inherent to the Heineken organization and webelieve we have an important role to play in addressing the real issues associated with alcohol. Weare grateful that our distributor partners across the country have worked with us on programs thatensure the responsible consumption of our products, said Don Blaustein, president and chief exec-utive officer, Heineken USA. That is precisely why we created the 1864 Award for Responsibility

to recognize our distributors for taking responsibility beyond a message and putting it into action.Kozol Bros and Harbor Distributing are two such partners.

Harbor Distributing Taking a Stand Against Driving Under the Influence

Part of Reyes Holdings, Harbor Distributing is the second largest individual distributor in HeinekenUSAs network. The company maximized its reach within the southern California community to cre-ate greater awareness and prevention of underage drinking. In a series of partnerships with region-al police departments, Harbor Distributing created and distributed a public service campaign dur-ing the holiday season to remind their neighbors about the dangers and legal implications of drink-ing and driving. They also expanded the reach of the Health Alliance on Alcohol, empowering stu-dents from the local state university to create their own PSAs that would educate their peers aboutthese important topics.

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INDUSTRY NEWS

KNOB CREEK BOURBON WHISKEY PROFESSORS HONORED AS

WORLD AMBASSADORS OF THE YEAR BY WHISKY MAGAZINE

The Knob Creek Whiskey Professors were honored with Whisky Magazines 2009 World Icons ofWhisky Award for Ambassadors of the Year at a ceremony in London, England February 28, 2009.Whiskey Professors Steve Cole, Bernie Lubbers and David Mays were recognized for their passion andknowledge in spreading the gospel of Americas Native Spirit across the nation in new and innova-tive ways.

The Knob Creek Whiskey Professors were honored with the American Icons of Whisky award for

Ambassadors of the Year in October 2008 out of nominees from Brown-Forman (Chris Morris), JimBeam (Fred Noe), Bulleit Bourbon (Tom Bulleit) and Wild Turkey (Jimmy Russell). Winners of all region-al Icons Awards were finalists in the World Icons Awards. The ceremony was held in Hurlingham Club,London and marked the opening of Whisky Live London, the U.K.s premiere whisky tasting event.

The Knob Creek Whiskey Professors spend their days (and nights) presenting Knob CreekBourbon to bartenders, bar and restaurant owners, and consumers by teaching label reading class-es, guiding tastings across the United States, and spearheading two major initiatives for BeamGlobal moderating The Great Whisk(e)y Debates and hosting bourbon dinners. The merits ofScotch whisky and Bourbon whiskey are deliberated at The Great Whisk(e)y Debates throughout thecountry, allowing the audience to choose if the whisk(e)y with or without the e is better. The teamof three also hosts bourbon dinners across the country at restaurants such as The Palm and MortonsSteakhouse to educate consumers on Bourbon and food pairings.

TRU ORGANIC SPIRITS LAUNCHES BARMADE BITTERS

CHALLENGE AT TALES OF THE COCKTAIL 2009

Tales of the Cocktail and TRU Organic Spirits announced the first ever Barmade Bitters Challenge, a

forum to showcase the worlds best aromatic bitters at this years Tales of the Cocktail in New OrleansJuly 8-12. The Bitters Challenge offers a ONCE-IN-A-LIFETIME opportunity for bartenders to have theirbitters recipes produced, packaged and sold nationally by TRU Organic Spirits. The winning bartenderswill not only have his or her name on the final product, garnering the visibility of a national audience,but will also share in profits from the total sales of the bitters.

Inspired by artisan bartenders, the contest will include three categoriesfruit, spice and herb. Fivefinalists per category will be invited to present their aromatic bitters personally at this years Tales of theCocktail in New Orleans, where judges will select one winner per category. Theres volcanic poten-tial in bartenders, says Melkon Khosrovian, co-founder and spirits maker at TRU Organic Spirits. Cantwait to see what theyve got. Khosrovian will work with all three winning bartenders to formulate andproduce their aromatic bitters for commercial sale. Each bitter will be produced as an organic productas an extension of the TRU Organic Spirits line of organic vodkas and gin.

Rules and more information please visit www.truorganicspirits.com/bitters.html.

The Whiskey Professors David Mays, Bernie Lubbers and Steve Cole.

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BIN March 09

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