business isn’t as sexy, but when you look
at the volume, it’s enormous both on- and
off-premise.”
Delivering high quality at low prices
has long been M.S. Walker’s stock and
trade. “People have been brainwashed
across all industries, not just ours, that the
more you spend, the better the product
will be,” says Allen. “But our spirits are of-
ten better than the higher priced spread.”
For their value-priced cordial line, M.S.
Walker works with six different flavor com-
panies to achieve the best possible tasting
line extensions.
Take M.S. Walker’s tequila, Old Mex-
ico, for example. It contains the highest
percentage of real agave of any U.S.-
bottled tequila—80% versus the standard
51% (
U.S.-bottled tequila is not permit-
ted to be 100% agave). “We knew that we
couldn’t enter the tequila business with a
me-too product; it had to be different and
it had to taste great, though it’s priced the
same as our competitors,” says Shaw.
The well business is a critical compo-
nent for the company. “Licensees have
two areas of concern,” Shaw continued.
“
They want to offer the national brands
for their image, but they want to stock
their well to enhance their bottom line.
They fight hard for what is in that well
and keeping their costs in check. Our
niche is to help them in this area by giv-
ing them a very high quality product.”
While it’s statistically correct to say
that premium products are making a
comeback, says Shaw, the numbers don’t
tell the whole story because that segment
was hit so hard. The commodity segment
might not be posting high growth num-
bers, but the category is still very relevant.
“
People continue to look to value more so
than ever,” says Shaw. “Consumers turned
to value wine and spirits and they really
have not left.”
Looking for Holes
“
We are similar to a football team,”
says Allen. “We look for holes to run
through—that is how we score points.”
Today, M.S. Walker is innovating beyond
the commodity sphere. “The low-margin
commodity business hinges on geogra-
phy,” says Brody. “Once you ship outside
your region, you can start to lose money
because of freight.”
Targeting the single malt drinker,
M.S. Walker has big plans for its newly
acquired Grand Macnish. “In between the
blended whisky drinker and the high-end
single malt drinker there is a big gap,” says
Shaw. “There is a market that would like
some age and smoothness to their scotch”
so the company is introducing several
older expressions with cask-specific fin-
ishes (the Sherry-finished 15-year old, for
example). Though not inexpensive, they
are far more competitively priced that
comparable products: “We can offer aged
product at very reasonable prices as few
others are doing that.”
The chocolate wine craze has also bred
a flurry of new products, but M.S. Walker
sought to bring a spirit-based version which
is richer and thicker in texture. In addition
to importing wines through its Grapevine
Imports division, M.S. Walker develops its
own brands, like “Oh… Schist!” Riesling
referring to the shale soils in which the
grape thrives in Germany.
Where to From Here
M.S. Walker’s new brands have practically
doubled their production. “We went
from running 400,000 cases of vodka on
our lines to 700,000 overnight,” shares
Brody. But heavily investing in facility
upgrades was the easy part, says Allen.
The real challenge now is to “become
a marketing company as much as a
selling company.”
With many packaging upgrades, a
newly hired marketing team and beefed
up national sales team, the family-owned
business feels ready to do just that. “We
previously did business in 42 markets, but
we never had any real leverage and now
we do,” says Allen. “What happens next
is up to us.”
■
“
The Champagne of Maine”
The Allen’s Success Story
Many are surprised to learn that the
#1
selling spirit in Maine is not—as in
most markets—a vodka. What’s downright
extraordinary is that the state’s overwhelming
best-seller—at 100,000 cases a year with
14%
market share—is a coffee-flavored
brandy called Allen’s, which most people
outside of Maine have never even heard of.
Even the M.S. Walker executive team is unable
to fully explain how this happened, chalking it
up to a combination of New England’s love of
coffee, the uniqueness of the Maine market,
and the undeniable quality of the product
(
nicknamed, “The Champagne of Maine”).
“
Allen’s Coffee Brandy is the purest
coffee-flavored product on the market,”
explains Shaw. “It isn’t weighed down with
heavy sugars or vanilla flavoring like so
many others.” In the summer, Mainers mix
it with milk over ice and in the winter, they
pour it in coffee. “Twenty years ago we took
over the #1 spot in Maine and we are very
proud of the loyalty in that market.” Not
content with #1 alone, M.S. Walker now
owns the second best-selling spirit in the
state too, Orloff Vodka.
