Kentucky Business Network

Kentucky Bourbon Emerges On The Russian Bar Scene

10/08/09 | Kentucky Business Network

Kentucky bourbon becomes a top contender in emerging markets.

Vodka has historically been the most desired alcoholic beverage among the Russian population. Recently, the Jim Beam Party Crew has decided to challenge this century-old tradition.

A wave of Kentucky bourbon enthusiasm has been emerging on the bar scene in Moscow. Jim Beam “ambassadors” have been touting the Jim Beam brand at local hot spots, convincing customers to experience the unique flavor of Kentucky bourbon. The Jim Beam Party Crew has been seen carting around plungers, hammers, as well as other contrivances in an effort to promote their product, and educate Russians about the American tradition of drinking bourbon.

The promotional efforts undertaken by Jim Beam have begun to have an impact on foreign markets, especially Russia and China. The change is partly attributed to young citizens achieving more economic stature and gaining the ability to pay for spirits imported from the United States.

The Louisville-based producer of Jack Daniels, Brown-Forman Corp., has been exporting whiskey for decades to the more developed markets abroad.  Primarily their spirits sales have focused on Great Britain, Australia, and Germany. However, they are currently attempting to seize the attention of the rapidly expanding middle classes of emerging markets.

Overall, whiskey sales from the United States comprise a small yet rapidly growing portion of spirits sales in emerging economies, especially as whiskey producers focus their marketing exploits on Russia and China. Last year, Russia alone experienced a 48% sales increase of nine-liter cases of Jim Beam. In 2006, Jack Daniel’s whiskey sales in Russia more than doubled. Brown-Forman has increased its profit from foreign alcohol sales 13% by the end of the fiscal year. The increase is partly attributed by demand in China, Eastern Europe, and even South Africa. Sales in International markets have ballooned from 30%, to a new record 52% of its net sales.