EXCLUSIVE: White Rock’s Coulombe Discusses Pinnacle Phenomenon
January 5, 2012Lewiston, Maine-based White Rock Distilleries has risen to the fore as one of the U.S. spirits market’s top brand innovators, particularly in vodka. After selling its fast-growing Three Olives vodka to Proximo Spirits in 2007, it quickly reloaded with a new vodka label, Pinnacle, sourced from France and selling for $14 a bottle, down a price tier from Three Olives. Pinnacle grew from 265,000 cases in 2008 to 1.4 million cases in 2010. But last year it nearly doubled to 2.7 million cases—according to Impact Databank—riding the wave created by its Whipped flavor extension. Launched midway through 2010, Pinnacle Whipped, at 750,000 cases in 2011, is already the largest-selling flavored vodka in the U.S. (adding offshoots Cherry Whipped, Orange Whipped, Key Lime Whipped and Chocolate Whipped, the line had volume of around 1 million cases last year). Shanken News Daily recently spoke with White Rock CEO Paul Coulombe to get his take on the company’s progress and plans for the future.
SND: Pinnacle was way out in front on the dessert-flavored vodka trend last year. How did unusual flavors become its specialty?
Coulombe: We’ve always believed in flavored vodka. It represents about 25% of vodka overall, which makes it nearly as large as the entire rum category. I think you have to assume it will keep growing over the long term. Pinnacle’s early flavors were traditional ones like orange, citrus and raspberry. But the category is extremely crowded with those me-too flavors and it was hard to get penetration, particularly in the on-premise. We needed something innovative and creative that would capture buyers’ attention. Our first original flavor was Strawberry-Kiwi, and that had a pretty good response, but nothing like Whipped, which has generated a whole new interest around the brand.
SND: Where did Pinnacle draw new consumers in 2011?
Coulombe: The 21-to-25-year-old consumer gravitates toward flavors, and I think we’re drawing females to flavored spirits who may in the past have favored wine or beer. That said, it’s becoming clear that flavors are attracting a much wider consumer profile than we initially imagined.
SND: What’s next on the flavor agenda?
Coulombe: We’re going to keep innovating. We’ve just created one that’s had a great reception—it’s called Gummy, and has a Swedish fish flavor profile. We’re not sure it’ll be another Whipped, but we’re seeing up to 50% of the volume of Whipped in the early markets. Our brand new Cookie Dough flavor is also doing very well.
SND: What kind of growth are you projecting for Pinnacle in 2012?
Coulombe: I certainly anticipate the brand will have at least 50% growth this year. One new thing we’re doing is airing TV commercials behind Pinnacle, beginning in February on cable networks like Bravo, Oxygen, E!, InStyle and others. That campaign has a budget of $7 million.
SND: Are you concerned with heightening competition in the dessert-flavored vodka segment, particularly from Diageo’s new Smirnoff flavors, Whipped Cream and Fluffed Marshmallow?
Coulombe: Diageo copying you is the highest form of flattery. They really resisted doing Whipped, but at a million cases even they have trouble ignoring it. We’re monitoring them on a daily basis market by market. The Smirnoff dessert flavors are relatively new and haven’t garnered much market share yet, but I expect them to grow. Sub-premium brands, however, like Heaven Hill’s Burnett’s, have made gains down the pricing ladder from Pinnacle. Smirnoff is line-priced with us for the most part; for that reason it may be more difficult for Diageo to steal share.
For the complete interview with Paul Coulombe, see the February 1&15, 2012 issue of Impact.
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Tagged : Pinnacle, spirits, vodka, White Rock Distilleries
