The podcast explores the success of flavored spirits like screwball whiskey, the acquisition of high-end tequila brand Codego, and soft drink companies entering the alcohol business. It also discusses the industry's responsibility to address water scarcity, the importance of maintaining premium quality in flavored spirits, and the effects of COVID-19 on consumer behavior.
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Quick takeaways
Responsible water management plays a crucial role in combating climate change and reducing greenhouse gas emissions.
The spirits industry is experiencing a surge in flavored whiskeys, highlighting the importance of continuous innovation and meeting consumer preferences.
Deep dives
Optimizing Water Use for Climate Change
According to environmental reporting non-profit CDP, global water use, storage, and distribution contribute 10% of global greenhouse gas emissions. EcoLab, a company that helps optimize water use, states that with more efficient water management, industrial facilities could reduce water consumption by up to 44%, trim energy use by as much as 22%, and decrease corporate greenhouse gas emissions by up to 12%. This highlights the crucial role of responsible water management in combating climate change.
The Growth and Trends in the Luxury Alcohol Market
The global luxury wines and spirits market, driven by premium and unique products, organic and sustainable demand, and experiential popularity, generated over $229 billion in 2021. It is predicted to reach nearly $415 billion by 2031, with a compound annual growth rate of approximately 6.2%. The market remains dynamic and ever-changing, with consumers shifting preferences in response to different occasions and trends, making it essential for companies to continuously adapt and innovate their portfolios to meet consumer demands.
The Rise of Flavored Whiskey and the Importance of Innovation
The spirits industry has seen the emergence of flavored whiskeys, such as Screwball Whiskey, which has experienced tremendous success. Flavored whiskeys cater to the American taste for sweetness and offer unique and unexpected combinations. The success of Screwball Whiskey, a peanut butter flavored whiskey, showcases the importance of continuous innovation and meeting consumer preferences. The industry is witnessing a surge in both acquisitions and experimentation as companies aim to capture new profit pools and explore new growth opportunities in the evolving market.
Ann Mukherjee, CEO of Pernod Ricard North America, discusses the state of alcohol industry and expanding their portfolio in tequila and flavored whiskey. Hosts: Carol Massar and Mike Regan. Producer: Paul Brennan.