• by Nina Lentini , June 12, 2007

In yet another nod to the growing popularity of spirits and the flat sales of suds, The King of Beers has become "master U.S. distributor" for a vodka made from maple syrup.

Anheuser-Busch will distribute Vermont Spirits' vodka made from maple syrup and milk sugar, Vermont Gold, Vermont Gold Vintage and Vermont White. Currently, the regional brands are available only in the Northeast. Now, Anheuser-Busch wholesalers in New England will begin distributing the brands, initially focusing on licensed states.

Vermont Spirits will continue to oversee marketing for the vodkas. According to president/founder Duncan Holaday, the company only recently began marketing its wares, with ads in Boston magazine and a northeast trade journal.

"Fine Art. In a Bottle"* headlines the full-page magazine ad that's divided in half, with the top showing a classic shot of New England fall foliage and the bottom showing product shots, press reviews and a web address.

Steve Johnson, who handles marketing for Vermont Spirits, says of future marketing: "Our plans haven't changed so much as they are now more easily accomplished. A-B's excellent wholesaler network will bring our vodkas to more consumers, and A-B is able to add a distinct vodka product to its portfolio."

"We've always relied on word of mouth," says Holaday, a Fulbright scholar who formerly taught anthropology and communications in Southeast Asia. "We do a lot of tastings to engage people." The product has been on the market since August 2001.

Vermont Gold is a super-premium, unflavored vodka handmade in small batches from pure maple sugar. Vermont White is inspired by traditional Tuvan milk vodka, triple distilled from pure milk sugar and Vermont spring water. Like Vermont Gold, Vermont Gold Vintage is distilled from maple sap. The use of early run sap from Vermont maple trees gives this vodka its distinct character, the company says.

Anheuser-Busch is testing a limited portfolio of premium spirits in targeted markets in the Northeast, and the deal gives Anheuser-Busch's distributors handcrafted, high-end vodkas to compete in the growing and profitable spirits market. Anheuser-Busch also recently completed an agreement with Margaritaville Spirits to distribute Margaritaville Tequila in Massachusetts.

Last month, the Wall Street Journal reported that Anheuser-Busch had applied for a federal trademark for the word "Pomacai," which it describes as a vodka. It was reported that A-B would likely test a product in limited markets to evaluate its prospects before jumping into a national rollout. "Pomacai" is thought to mean a fruit-flavored vodka involving pomegranate and açaí, a fruit native to South America.

Last year, A-B began distributing Ku Soju, a vodka-like product distilled from sweet potatoes and made by a South Korean company, in seven test markets.

In 2005, Anheuser formed a separate division, Long Tail Libations Inc., to develop, test and market distilled spirits. The unit is test-marketing its first product, a liqueur called Jekyll & Hyde, in more than 50 markets.

Vermont Gold and Vermont Gold Vintage are the only vodkas on the market that are distilled from maple sugar. Most vodkas are produced from grains like rye or wheat.

"Vermont Spirits is a great-tasting, high-end vodka distilled from pure, natural resources," says Dave Peacock, vice president/business operations at A-B. "Products like these distinctive, high-quality Vermont Spirits vodkas allow us to compete in this growing category in a limited way, while gaining a deeper understanding of distributing a liquor-based product through our wholesaler system."

Craft or micro-distilleries are an emerging trend in the United States, much like the craft brewers that have experienced increased popularity and success in the U.S. beer industry. The American Distilling Institute, a trade group for independent distillers, currently counts 95 distilleries in the U.S. and Canada, up from five in 1990.

High-end spirits are growing at a fast rate. According to the Distilled Spirits Council of the United States, the super-premium segment of the spirits industry was up 18% in 2006.

*Editor's note: The story was amended after publication to correct an error.