After 150 years in the spice game, The Watkins Co. announced last week it is taking the leap from food flavorings into spirits with two flavored bourbon releases.
The Minnesota-based maker of spices, flavorings and extracts is aiming to leverage its historic brand and flavor expertise to make a splash in the flavored whiskey category, which has experienced small growth in recent years. While 2022 year-end data placed flavored spirits down -5.0% overall, flavored whiskey (+4.1%) continues to be a category growth driver, according to SipSource data.
Made in partnership with Minnesota-based Prestige Beverage Group, the Kentucky bourbons come in Cinnamon Apple and Spiced Orange. By extending into flavored spirits, the company is aiming to target a younger audience.
“Our fastest growing demographic is their mid-20s and mid-30s, mainly because of their discovery of flavor,” said J.R. Rigley, president of The Watkins Co. “And I mean that across not only alcohol but in terms of their cooking, in terms of their cocktails they’re more involved, more engaged, and want to be more educated.”
Flavored whiskey consumers tend to trend younger than the average share of people who use Drizly, according to BevAlc Insights, with Gen Z an especially notable group. To compete with flavored options from Jim Beam, Jack Daniels, and other brands such as Screwball peanut butter whiskey, The Watkins Co is increasing its social media presence on Instagram, TikTok and working with influencers.
According to Rigley, flavored bourbon’s appeal aligns with that of ready-to-pour cocktails or blended spices: simplicity. The spiced orange expression, for example, gets an at-home drinker closer to an old fashioned with less steps, he added.
“In the spice world, a lot of what we do is create one-step blended solutions to flavor steaks or fish or whatever,” he said. “People want to be engaged and they want customization, but they do want to eliminate some of the steps, and I think that’s what we’re also trying to do not only in our traditional flavoring space, but also in the cocktail and mocktail space as well.”
This is not The Watkins Co’s first foray into the beverage space, and likely not the last. Two years ago the company again partnered with Prestige Beverage Group to distribute two bitters expressions. Learnings from that collaboration helped direct the trajectory towards flavored spirits. Ready-to-drink mocktails using the bitters could be up next.
The bourbons will retail for the suggested price of $24.99 and will be available in select states this month with national roll-out expected in April.