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Deep Eddy’s Ascent, Part 2: Eyeing The On-Premise Space

April 8, 2015

While Texas-based vodka Deep Eddy has ridden a traditional flavor line to explosive off-premise growth, Deep Eddy Spirits tells SND that it’s now enhancing its focus on the on-premise as well, including an expansion into national accounts.

In the coming weeks, Deep Eddy will launch nationally in Outback Steakhouse, which will see the brand placed in between 3,000-4,000 outlets. Only about 30% of the brand’s business is currently done in the on-premise, but the company says it’s gaining traction in that space, with a trend line of over 200% growth currently in on-premise channels.

Sampling and special events have comprised much of the marketing activity behind Deep Eddy’s rise. The company says word-of-mouth and bartender support have been key in building awareness outside the brand’s home market. Out-of-home, print and digital, which make up 35% of the brand’s advertising budget this year, is also being implemented.

Deep Eddy’s marketers note that despite its triple-digit growth rate, they still see a lot of white space for expansion, as the brand is in less than 10% of the overall accounts in the U.S. “Our focus right now is getting to 1 million cases,” says Deep Eddy CEO Eric Dopkins. “Over the next year, we’ll work toward entrenching distribution and awareness and let the brand do what it does.”

Meanwhile, this past October, the company opened a new 30,000-square-foot distillery in Dripping Springs that has a maximum capacity of 2 million cases, to support ongoing growth. With tours available FridaySunday, the new distillery, which features a 20-foot column still, has seen about 1,000 visitors on average each weekend.

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