Five Springs Infused Bourbon is trying a different approach to flavored whiskey: naturally infusing bourbon with flavors like Honey Sage, Blood Orange, and Vanilla Maple with the aim of recruiting new drinkers into the category. Started by spirits industry veteran Lisa Sawyer Derman, who previously held senior executive positions for over 30 years with top brands including Stoli and Macallan before launching her own this year. We chatted with the founder about where she sees opportunity in bourbon, lessons learned at the industry’s largest companies, and how she hopes the industry will change.
Where did you see an opportunity in infused bourbon, and has the reality matched your expectations?
I’m originally from Kentucky, so I knew that I always wanted to create a bourbon brand. A couple of years ago I noticed interesting bourbon cocktails starting to appear on cocktail menus – not just the old standards. We started creating bourbon cocktails at home and at some point we thought ‘wouldn’t it be amazing if we could cut out one of these steps to make it easier to make cocktails we all loved?’ That was the start of the idea and after a year of perfecting our flavor profile we started marketing our infused bourbons to bartenders and new bourbon drinkers with the promise of a great bourbon to create easy and elevated cocktails.
You’ve worked for some of the spirit world’s larger companies, what key lessons have you brought into this venture?
I’ve learned a lot over my 30+ years in the industry and continue to learn new things every day. From my days as general counsel and COO, I had the privilege to work with many talented entrepreneurs and get up close insights into what it takes to create and launch a brand. I also worked with brilliant marketers and savvy commercial business men and women who taught me all about the best strategic ways to succeed in a complicated route to market space. The three tier system of the alcohol beverage industry makes it important to not only focus on key communications to the consumer but also clear and concise communication of brand strategy to the trade, such as the distributors and to the retail gatekeepers.
If you could wave a magic wand what would you change about the industry?
The answer to this could be a full-length article! Since I started on the legal side of the business, my mind naturally goes to waving a wand to have legal consistency across all states for labeling, marketing, and distribution. Most consumers don’t realize that in order to distribute a brand nationally, a supplier must have a separate distributor in every market and must meet the legal requirements set by each state. This makes it very difficult to launch a new brand because there are very few “national” distributors and the few that there are represent the vast majority of the larger brands, which makes it difficult for small brands to break into a market. And even for the larger brands having a different set of rules in each market makes it more difficult to have an efficient marketing plan. It would be great to see more consistency, even while honoring the three tier system.
What’s the biggest opportunity for you right now?
We see a huge opportunity to introduce new drinkers to the world of bourbon. American whiskey continues to be on the rise, but at the same time we see new consumers gravitating towards ready-to-drink. We see our brand as an opportunity to provide an “almost” ready-to-drink which gives consumers flexibility with our natural flavors. We’re at 70 proof which means less calories and also allows for a very smooth inviting bourbon forward drink. It was important for us to be made with real bourbon with only a touch of flavor, rather than an overly flavored product with a touch of whiskey.
What’s exciting to you in the spirits industry?
I’m intrigued by the expansion of e-commerce in the industry and will continue to watch where that goes given the difficulties of the three-tier spirits and also ensuring responsible drinking. As a woman owner and prior industry executive, I’m very excited to see the expansion of more women and minorities as owners of brands and in key leadership roles in the industry. With a product like bourbon, I’ve also loved seeing the breadth of consumers beyond what used to be considered a cowboy or three piece suit executive. It’s a reminder that this industry is all about celebration and bringing people together; it’s nice to see the marketing and distribution sides open up to a wider community.