Interview, Part 2: Stoli Group CEO Hugues Pietrini
July 19, 2018Coinciding with its move to set up its own global distribution network in recent years, Stoli Group has aggressively expanded its portfolio to include a number of small but promising brands from diverse categories, including Kentucky Owl Bourbon, Bayou rum, and Cenote Tequila.In the second part of our interview, global CEO Hugues Pietrini discusses efforts on those brands as well as where the company could fill holes moving forward.
SND: Stoli Group recently acquired full control of Bayou rum, which is currently in the midst of a $6 million investment in its Louisiana distillery and tourism facilities. How is the outlook for the brand?
Pietrini: On Bayou, the struggle is that the U.S. market is still too young in terms of high-end rum. It’s falling behind some markets in Europe in that category, but inevitably it will catch up. Today, the rum category doesn’t have a great image because it’s been linked to poor quality. But that’s not what Bayou is about. We have to make people understand that this is not another industrial rum. It’s a craft pot still rum, made with sugarcane from Louisiana, that we age in oak barrels. There’s a lot of work to do, but the vision is to build it at the high end of the category. We will be relaunching with a new brand strategy in the fourth quarter.
SND: How is your new Cenote Tequila brand faring in the early going?
Pietrini: The Cenote project started about 18 months ago when we acquired Fabrica de Tequilos Finos in Jalisco. Our master distiller, Arturo Fuentes, has 45 years of experience, and this is his baby. We really believe in the brand, and we have a strong price point based on the quality (Cenote retails from $45-$65 a 750-ml.). It has started very strong, but we won’t rush it. We’ll build it the right way, in the right accounts. Four months after the launch the brand has already achieved what we planned to deliver for the full year, and we’re on pace for 10,000 cases by year-end. There is a mezcal coming too.
SND: In Bourbon, Stoli is planning a $150 million distillery for the Kentucky Owl brand. What’s the update there?
Pietrini: Kentucky Owl is very important for us, and it’s going extremely well. We want to have a high market share in that $150-$200 price point in American whiskey. We have the right quality and the right spokesman (in founder and master distiller Dixon Dedman) to do it, and we’re continuing to build on the brand’s reputation. We’ve launched Batch #2 Rye and will soon be launching Batch #8 Bourbon, and with a potential third expression to come later this year, the brand could reach 10,000 cases in 2018.
SND: What other initiatives are on the horizon for Stoli Group?
Pietrini: We have high ambitions. We plan to focus our portfolio at the high end with products like Cenote, Kentucky Owl, and Stoli Elit, and we need to make sure that the core Stoli brand itself is really healthy. We’re expecting about 15% growth for Elit this year, boosted by our new Night Edition bottle, which has been popular in the on-premise, particularly with nightclubs and lounges. We also just launched Stoli Cucumber, which has had a good start. Soon, we’ll also be present in gin, targeting the mixology segment at the super-premium end of the category.
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