Monday, Jun. 06, 1977

Sweet Spirits

Ugh. That first shot of Scotch or bourbon--consumed, perhaps, during a surreptitious afternoon raid on Dad's liquor cabinet--tasted invariably like oil, or worse. For those who could not acquire the taste for the hard stuff, the answer was abstinence, beer or some sort of cocktail. Today, many liquor companies are gambling that there is a new category of American--those weaned on Tootsie Rolls, malts and Life Savers --who have been panting for something else: a souped-up soft drink.

Heublein (1976 beverage sales: $858 million) has become a leader in what the company describes as "the move toward light and flavorful drinks." Two years ago, Heublein introduced Hereford's Cows, a line of ready-mixed drinks made from neutral spirits and a nondairy-based milk simulant that is sold in seven vividly colored flavors. The mild-mannered, 30-proof Cows were an instant hit among such relatively "dry" groups as women, kids and elderly people. Some liquor men, though, have their doubts about the staying power of these milkshakes-with-a-kick. Says Vice President Paul Shuman of Louisville-based Glenmore Distilleries Co., which rushed out strawberry, banana and white-chocolate 30-proof Snowshakes to compete with the Cows: "The milk-type drinks have leveled off to a very flat position in the market." But Heublein executives contend that Cow sales could hit a milhon cases this year, up from 850,000 in 1976.

Other varieties of sweet booze are selling well. Sales of prepared cocktails rose about 21% last year, v. 0.6% for the liquor industry as a whole. Besides its "full-strength" (up to 75 proof) cocktails such as tequila sunrises and mai tais, Heublein is also marketing drinks with less punch (as low as 25 proof) but more in the way of vivid color: the Pink Squirrel, for instance, could be taken for Pepto-Bismol. Schenley is bidding for a share of the premixed market with a new line of twelve drinks--including an apricot sour.

Cordials, too, are increasingly popular. Sales of Seagram's Leroux liqueurs in 50 flavors are growing at a rate of 7%. The company's imported labels --Vandermint, Sabra--are also doing nicely. Hiram Walker, one of the largest sellers of liqueurs in the U.S., came out last year with its 30th flavor--Swiss chocolate almond. A subsidiary of Jack Daniel Distillery markets 27 flavors of Bols liqueurs; National Distillers' De Kuyper collection has 39 flavors.

Nifty Desserts. Versatility is key. Vodka is now the biggest-selling distilled spirit in the U.S., perhaps because it can be mixed with anything from pineapple juice to beef broth and be at once potent and incognito. Heublein's Arrow line of cordials (from 40 to 90 proof) includes vodka flavored with peppermint, cherry and three other flavors. Women looking for nifty desserts are fond of the sweet drinks, such as Boggs cranberry liqueur, because they are good over ice cream, in a mousse or in cakes.

Soft-core booze can be very profitable: a fifth of Cow--at 30 proof barely stronger than wine--can retail for $4. Americans still drink up 2.69 gallons of booze per capita annually and spend more than $30 billion a year on alcohol, but hard-liquor drinking appears to be declining. If yummy highs continue to be the vogue, liquor dealers' shelves should be loaded with creme de strawberry and tutti-frutti vodkas for some time to come.

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