Whisky | KRG Hospitality

The Next Spirits Billionaire?

by David Klemt

A recent deal involving a whiskey brand is set to help welcome another member to the exclusive Celebrity Spirits Billionaire’s Club.

Three-division UFC fighter. Two-division champion. Entrepreneur. Billionaire? Conor McGregor may add another comma to his bank account.

Proximo Spirits and Proper No. Twelve Irish Whiskey will continue their relationship long-term after agreeing to a nine-figure deal.

The terms of the Proper-Proximo agreement are confidential. However, the consensus is that Proper No. Twelve is going to make MMA star Conor McGregor a billionaire.

Money McGregor

One detail that isn’t exactly confidential is the overall value of the Proper-Proximo agreement.

McGregor and his business partners sold their majority stake in the popular Irish whiskey brand. It’s believed the deal is worth up to $600 million, or nearly €500 million.

However, how much of that $600 million is going to McGregor is unknown at this time.

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A post shared by Conor McGregor Official (@thenotoriousmma)

To be clear, McGregor has a ways to go before he becomes a billionaire. Of course, he’s closer than most of us

Per reporting from The Irish Post, Proper No. Twelve is going to make McGregor the first billionaire Irish athlete.

“The terms of the agreement are confidential, however, the most important thing is Conor McGregor will remain a stakeholder of Proper No. Twelve, the brand that will make him a billionaire,” says Karen Kessler, a spokesperson for the former MMA champion.

Rapid Growth

It’s important to remember that Proper No. Twelve is just a few years old. That detail highlights the impressiveness of this deal.

Remember, Proper No. Twelve only launched in 2018. Since then, the brand has shipped over six million bottles. Proper No. Twelve is set to enter additional international markets moving forward.

Mike Keyes, president and CEO of Proximo Spirits, certainly seems to believe Proper No. Twelve isn’t “just another” celebrity spirits brand.

“It is rare to see a celebrity impact a brand the way Conor McGregor has Proper No. Twelve Irish Whiskey, and I have not seen many brands in the spirits industry catapult to this level of success in such a short period of time,” says Keyes. “This agreement is a vote of confidence in the incredible potential of this brand and a testament to the incredible work of Conor, Audie, Ken and the Proper No. Twelve team, as well as the efforts of Proximo and its distributors, who have all made this success possible.”

Celebrity Spirits Billionaire’s Club

Before proceeding, it must be mentioned that McGregor doesn’t consider himself a celebrity. According to him, “I’m not a celebrity. I break people’s faces for money and bounce.”

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Regardless, the face-breaker money-maker is among an elite group of celebs with stakes in lucrative spirits brands.

We’re all well aware of George Clooney’s success with Casamigos, the brand he and his business partners sold for $700 million. There’s another $300 million in it for them if the brand hits performance goals over the next several years.

Diddy’s collaboration with Diageo, which includes CÎROC Vodka and DeLeón Tequila, is pumping up the artist and entrepreneur’s net worth. It seems quite likely that when he reaches billionaire status, it will be in no small part to the success of the Diageo brands.

Like McGregor, Ryan Reynolds got involved in spirits brand ownership in 2018. Retaining his ownership stake in Aviation Gin may catapult the actor, entrepreneur and social media slayer to billionaire status.

Jay Z is a wildly successful entrepreneur. In 2019, the empire he built made him a billionaire. Ace of Spades (Armand de Brignac) reportedly made Jay over $300 million midway through June 2019. D’USSE scored him an estimated $100 million. Jay Z launched luxury cannabis brand Monogram, sure to add much more to his net worth.

Why Should You Care?

Operators, their employees, and their friends and families continue to struggle in 2021. Our industry has fought endless battles. America’s operators just began the process of receiving specific relief yesterday.

So, it can be difficult to discuss the net worth of celebrities given what people are going through. The topic can come across as insensitive. That is by no means lost on me.

Were any of the brands in this post reliant solely on celebrity endorsement, I wouldn’t bother including them. The fact is, the success of these brands relies on consumer demand.

Celebrity endorsement only goes so far—if the product sucks, the shine will wear off and consumers will move on. And today’s consumer moves on quickly. There’s always something shinier, always a celebrity name with more gravitas.

Proper No. Twelve, Aviation, Casamigos, DeLeón, CÎROC, D’USSE, and Ace of Spades are past the honeymoon phase of brand adoption. Consumers have spoken, and these are among the brands they want and expect to see on menus. Your menus.

You certainly don’t need to stock these or any other celebrity brands. Just don’t be surprised if guests become frustrated if they can’t get them at your restaurant or bar.

That goes for any brand. Listen to your guests and what they’re asking for from you. Charge your front-of-house team with doing the same and encourage them to report back to you what they’re hearing from guests. One of the easiest ways to inspire repeat visits and refresh your menu is to simply listen.

Image: Photo by Giorgio Trovato on Unsplash

Are You Ready for St. Patrick’s Day?

by David Klemt

St. Patrick’s Day is just around the corner. Operators need to make sure they’re ready for in-person, delivery and takeout guests eager to celebrate.

An interesting element for this year’s holiday is that many people will be celebrating at home. That makes themed delivery, takeout and pickup packages important.

Over the past 12 months, consumers have grown to correlate drinking occasions with drinking at home. That shift in behavior can make it more challenging to succeed with holidays.

Of course, challenges also present opportunities. Working from and drinking at home has made weekday day-drinking more common. Operators can leverage new behaviors to offer in-person, delivery and takeout packages starting earlier for St. Patrick’s Day.

Such packages can include Irish Coffees for the morning or early lunch, Irish beers for lunch or dinner, Irish whiskey and beer packages for dinner and late-night…you get the idea. Classic and modern riffs on St. Patrick’s Day food mainstays are also a crucial element. The key is to get creative with inventory and offers, attracting a combination of in-person and off-premise consumers.

To give you a helping hand, we’ve rounded up some of our favorite Irish, Canadian and America whiskeys. We’re including the standards but also focusing on innovative and single malt expressions that boost guest spends and overall revenue.

Irish Whiskeys

One thing all operators know when it comes to St. Patrick’s Day: Irish whiskey and high-visibility brands must be represented.

After all, according to the Spirits Business, Irish whiskey generated well over $1 billion for distillers last year in the United States alone.

Jameson, Bushmills, Tullamore DEW, Kilbeggan and Redbreast shine on St. Patrick’s Day. Proper No. 12 is just a few years old but is on its way to becoming a St. Patrick’s standard.

In markets that can bear it, premiumization can help generate more revenue during this year’s holiday.

There’s nothing wrong with OG Jameson but consider premiumization with Jameson Black Barrel or 18 Years, which is finished in first-fill barrels.

When it comes to Bushmills, the original expression is great. Rare Cask 01, however, is the distillery’s Cognac cask premium dram.

For the adventurous guest, Cider Cask Finish, XO Caribbean Rum Cask Finish, and Old Bonded Warehouse Release from Tullamore DEW will get their attention.

Operators who feature Kilbeggan would do well to consider premiumization in the forms of Single Pot Still and Small Batch Rye.

Redbreast 12 Cask Strength and Redbreast Lustau are undeniable elevations of traditional Irish whiskey.

Canadian Single Malts

When people hear or think about St. Patrick’s Day, they tend to immediately leap to Irish whiskey. However, this holiday can be a time to highlight whiskeys from other countries.

Central City crafts Lohin McKinnon Single Malt with “pure British Columbia” water, per their website. The distiller recommends adding a splash cold, filtered water, a tip you can share with your guests.

Another Central City single malt takes Canadian in an interesting direction. Lohin McKinnon Tequila Barrel Finished instills single malt with unique flavors.

Eau De Claire boasts the distinction of being Alberta’s first craft distillery and first single malt whisky producers. The distillery uses only Alberta barley and rye to craft their liquid.

American Single Malts

There are a number of superlative American single malt whiskeys to consider promoting on St. Patrick’s Day.

Westland produces American single malt in Seattle, Washington. The distillery’s Outpost Range—Garryana, Colere, and Solum—celebrates American tradition, innovation and Pacific Northwest provenance.

Westward aims to craft and bottle the spirit of the American Northwest. Westward Pinot Noir Cask and Stout Cask elevate the distillery’s American single malts.

Those searching for a Rocky Mountain single malt need look no further than Stranahan’s. Each of their expressions is thoughtfully crafted, so it can be hard to choose just one. However, Blue Peak is interesting because it undergoes high-altitude distillation and is also finished using the Solera Method.

Also hailing from Colorado is Deerhammer. The distillery’s American Single Malt mash bill can experience temperature swings of well over 40 degrees in a single day.

Image: Stéphan Valentin on Unsplash