Comparatively little competition in the vodka cooler sector has spurred the Aquilini Group to start producing a drink branded Bassano Hard Soda – a move inspired by low-carbonation, less-sweet sodas favoured by Italians during the prohibition era.
The sector is largely controlled by Vancouver-based Mark Anthony Group’s Mike’s Hard Lemonade, Diageo’s (NYSE:DEO) Smirnoff Ice, Bacardi’s Breezers and Constellation Brands Inc.’s (NYSE:STZ) Vex.
“Look at beer, wine and spirits and you’ll find deep, deep competition,” said Barry Olivier, who is president of Vancouver-based Aquilini Group’s Aquilini Brands division.
“One of the things we liked about the cooler market is that the field of competition is relatively small.”
Olivier is focused on the Canadian market, for now. Sales started in Ontario in March and in B.C. and Alberta on April 1. Sales in five more provinces will launch within weeks.
By 2012, he expects sales to launch in the vastly different U.S. market.
For producers of so-called alcopops, the most significant difference between Canada and the U.S. is that they are forbidden from selling spirit-based beverages in single-serving containers.
Mark Anthony Group owner Anthony Von Mandl described this challenge last year. (See “Von Mandl bets big on craft beer” – issue 1097; November 2-8, 2010.)
Olivier plans to follow Von Mandl’s lead by creating a malted beverage that tastes similar to its vodka-based Canadian counterpart and sell the product in the U.S.
“It might seem like a significant alteration to your recipe, but you can make it taste just like the original, even though it is considered a beer,” Olivier said.
Aquilini, which also owns the Vancouver Canucks and Rogers Arena, has pumped more than $1 million so far into the venture, which has six staff and production contracts out to Brick Brewery in Ontario. Vancouver’s Authentic Wine and Spirits will handle local sales.
Statistics from the British Columbia Liquor Distribution Branch show that annual domestic cooler sales in B.C. increased 1.6% to $100.4 million in 2010. Sales by volume increased 3.6% to 22.4 million litres.