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Independent Canadian Whisky Players Look To Move The Category Upscale

October 29, 2013

Shoppers seeking higher-end whiskies are far more likely to reach for a Bourbon or Scotch than a Canadian whisky, as the Canadian category has long struggled to move upscale. But a new breed of independent Canadian players aims to change all that.

John Hall, owner and whisky maker at Forty Creek Distillery in Ontario, has been the pioneer in this movement. Hall, who founded Forty Creek in 1991, offers Forty Creek Barrel Select ($25 a 750-ml.) as his primary brand, but last September he introduced a more rye-centric Copper Pot Reserve ($29). Boasting an even richer rye input is his new Forty Creek Heart of Gold—a limited release retailing at $70 a 750-ml. whose U.S. sales are limited mostly to Texas. A similar limited release, Forty Creek Port Wood Reserve ($70), launched last year and was a quick sellout.

A flock of boutique and craft players is following in Hall’s footsteps—perhaps 40 in all, mainly focused on rye. Van Gogh Imports, for example, introduced its Tap 357 Canadian Maple Rye ($30) early last year and now has distribution in 37 states. In February 2014, Van Gogh will roll out a new expression, Tap Port Finished Rye, made with rye aged up to eight years and finished in Port barrels. “The rye cycle has turned very quickly,” says Van Gogh chairman and CEO Norman Bonchick. “Stores have entire rye sections now. We haven’t seen that in 30 years or more.”

Two years ago, Sonoma-based The Other Guys (TOG) introduced a Canadian rye through its 35 Maple Street spirits division called Masterson’s Rye ($79), a 100% 10-year-old rye aged in white oak casks. Recently TOG released a limited-edition Masterson’s 12-Year-Old wheat whisky and 10-Year-Old barley version (both $79).

Some whisky companies such as Montreal-based Kruger Wine & Spirits, which owns the Spicebox label ($20), source supply from the giant Alberta Distillers Ltd. Others are distilling their own liquid. The fledgling Still Waters Distillery in Toronto, for example, last year released a blended whisky called Still Waters Special 1+11, retailing at $38. In April, Still Waters released its Stalk & Barrel single malt ($100). A more recent expression, Cask No. 5 ($95), at a potent 120.6 proof, started shipping this fall. Still Waters also expects to have an all-rye whisky ready within a year. A 100% corn whisky is also likely in 2014, according to owner Barry Bernstein.

The established players aren’t ceding the high ground, of course. At the start of this year, category leader Diageo North America launched a new advertising campaign, tagged “Reign On,” to bolster the entire Crown Royal portfolio—including Royal Black ($30), a Bourbon-scented expression launched in 2010, and Special Reserve ($45). Corby Distilleries Ltd, meanwhile, recently supplemented its core Wiser’s Deluxe ($17) with Wiser’s Rye ($23) and Wiser’s Spiced Vanilla ($23). Coming soon is Pike Creek Port Finish ($32) as well as Lot 40, a 100% rye retailing at $60.

Some Canadian whisky makers also are following U.S. craft distillers in releasing unaged white whiskies. Toronto Distillery Co.’s unaged Organic Ontario Wheat ($20) is listed at the single-location Schneider’s Fine Wines & Spirits in Washington, D.C. where spirits manager Richard Bobrow has been challenged in finding shelf-space for newer Canadian products. “Canadian whisky is starting to grow for us, and customers like the different taste distinctions,” he says. “We’ll try to stock as many as we can.”

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