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BEVERAGE INDUSTRY NEWS
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KAI VODKA
A SPIRIT-UAL
AWAKENING
K’ORUS WINES
Taking The Country By Storm!
COINTREAU
Can a spirit be both timeless and trendy?
CASTLE BRANDS’
Portfolio Reigns Supreme

TEQUILA • RUM • CACHAÇA • PISCO • NEW PRODUCTS • INDUSTRY NEWS • MARKETING INFO • AND MORE...
 A SPIRIT-UAL
AWAKENING
RARE YELLOW BLOSSOM RICE, SIX CENTURIES OF TRADITION,

A HIGHLY SPECIFIC MARKETING PLAN AND ENTHUSIASTIC TEAM PLAYERS

BRING ONE OF THE MOST COMPELLING VODKAS ON THE MARKET TO LIFE

Written by Elyse Glickman

2 BIN 2 0 0 8 • I S S U E 5
O
ne look and taste, even in a crowded field, and it
is evident KAI Vodka is clearly a different kind of
vodka experience. Certainly savvy distributors and
retailers do. And as for the consumer looking for something new,
Vietnam is closer than they could have ever imagined.
“What will make this brand get rooted and grow
into something of value for our customers is our
clearly defining the KAI story and positioning it
so people can understand how special this vodka
is,” says KAI founder and managing director
Marcus Bender. “There are so many European
vodkas circulating with similar claims and all
these messages about their wheat, traditions and
techniques. However, we actually have some-
thing truly special that a variety of demographics
can appreciate, something nobody else is doing
right now.”
Indeed, many things do set KAI Vodka and
KAI Lychee Vodka apart. Both varieties can be
positioned either as a sexy, exotic cocktail founda-
tion or as “cocktails” in a bottle as they are smooth
and sophisticated enough to enjoy on their own.
There is a built in Asian mystique, as well as
award-winning package design that is in tune
with a cross-generational demand for lifestyle-
driven products. Bender and his team are also
using high-tech methods such as an updated
web site and viral marketing (via Facebook
and other sites) to reach a wide cross sec-
tion of audiences. Although it is still very
new on the market, KAI’s industry acco-
lades have bolstered the brand into the
establishment. The flavor and packaging
have garnered awards at the Beverage
Tasting Institute and the San Francisco
International Spirits Competition…no small
feat as KAI was launched just a year ago.
FOUND IN TRANSLATION
As the first ultra premium to originate in
Vietnam, KAI has translated beautifully
to the American market, thanks to its
bottle and exotic origins. It also helps
that Asian-Fusion cuisine is here to stay,
especially in California. With the sophisticated
American palate adapted to Asian spices and fla-
vors, these adventurous consumers and the on-
and off-premise accounts that cater to them
demand something that will challenge consumer
taste buds and mixologist creativity. KAI
achieves all of this through its distinctive, refined
taste derived from the distillation of rare Yellow-
Blossom Rice. It is, according to Bender, a perfect
fit for this market whether enjoyed in its original
form or Lychee, on its own or in a cocktail.
Adding to KAI’s cache is the fact that this
special and rare form of rice is grown in small vil-
lages near the Cam Giang district, along North
Vietnam’s Red River Delta. Because of its delicate
nature, it is handcrafted in small batches using
techniques that have been handed down for
more than six centuries. The process of fer-
mentation and distillation used to create KAI
Vodka renders a distinctive-tasting vodka that
preserves the natural sweetness of the Yellow-
Blossom Rice. Furthermore, it takes almost
14 pounds of the precious grain to make
four liters of KAI Vodka. Although vodka
enthusiasts prize what is inside a bottle,
the sensual, visual and tactically appealing
bottle adds to KAI’s appeal. As a whole,
KAI translates into what may be the per-
fect vodka for a generation of adventurous
consumers.
“The word ‘kai’ has positive meaning
throughout Asia,” notes Bender, from his
Honolulu headquarters, “The word means
‘pleasure’ in Japan and ‘happy gathering’
in China. In fact the word has multiple
meanings even as one moves through dif-
ferent cultures of Asia. It’s a word that
unifies and brings people together, just
as a good spirit would. The feedback

KAI founder and managing director
Marcus Bender in rice fields near
the Cam Giang district, along
North Vietnam’s Red River Delta
“My hopes and expectations for the coming year is to expand
our footprint into key markets such as Chicago, New York,
Florida, Miami, Atlanta and other large vodka markets...”
KAI founder and managing director
from consumers is that they love its smooth,
unique taste and the fashionable bottle that
captures the east-meets-west spirit.”
In the wake of KAI’s launch last sum-
mer, the brand has beaten the odds by rap-
idly establishing a niche in a very crowded
landscape of vodkas, where many “me too”
vodkas tapping into familiar things like
European roots and traditional ingredients
jostle for position. While consumer inter-
est in new premium unique products is
strong, KAI has won discerning audiences
over simply by being different, in its taste,
award-winning packaging and the fact that
it comes from Asia. However, Bender rec-
ognizes there are still challenges to come,
even with effective guerilla marketing—
expanding beyond California into major
markets throughout the US and the World.
RICE DREAMS
“My hopes and expectations for the coming
year is to expand our footprint into key mar-
kets such as Chicago, New York, Florida,
Miami, Atlanta and other large vodka mar-
4 BIN 2 0 0 8 • I S S U E 5
— Marcus Bender,
kets,” notes Bender. “That said, California is
still high priority for us as we have earned
our accounts and want to continue our work
with those who have embraced us and will
help us get traction because they understand
the perspective of our brand. California is a
country and universe onto itself, it is the
ideal starting point for a buzz that will find
its way into other states because there are so
many distinctive markets here.”
Early accounts that have helped the
brand gain national attention include a mix
of trendy Southern California hangouts
(The Abbey, Koi, Katana, Crustacean and
Nic’s Martini Bar), sophisticated Northern
California spots with foodie audiences (Le
Colonial, Three Seasons, I-Tapa) and popu-
lar, crowd-pleasing restaurant groups that
cross a lot of different demographics (Roy’s,
P.F. Chang’s). This, in part, has paved the
way for KAI to advance into Las Vegas, via
destination accounts such as Red Square,
David Burke’s, China Grill and The
Bellagio Hotel’s bars and restaurants.
“Las Vegas is like Hawaii in many ways,”
Bender reflects. “Both places are small in
size but big in terms of the impact our prod-
uct can make on new and old audiences for
KAI. While restaurants in Las Vegas are
where culinary and mixology trends take
shape for the entire country, we also have
the potential to reach consumers from
around America and the world who come
to Vegas to experience the newest and lat-
est things. Vegas is a place of discovery, and
being there has already helped us in terms
of validating us in other markets. After all,
consumers are key to the kingdom, and
with 30 million tourists coming through,
there are so many opportunities for this
kind of discovery.”
BevMo’s California and Arizona stores,
meanwhile, are also using their unique
niche in spirits retail to bring in adventur-
ous consumers. Thanks to KAI’s sales team,
in tandem with a variety of marketing
strategies (ranging from word of mouth to
“viral” marketing that takes shape in the
form of blogs, networking web sites and
internet magazines), Bender is confident
that this will help the marketing aspects at
the consumer level for the brand to take on
a life of its own. On-premise events in
Hawaii, L.A. and elsewhere, are also taking
advantage of celebrity-driven events and
high-visibility promotions to drive the
brand. At one recent even in Los Angeles,
for example, Tobey McGuire (of the
Spiderman movies) had the chance to sam-
ple KAI at a high profile gallery opening
with 400 of his closest friends, while actress
Jenny McCarthy’s autism fundraiser was co-
hosted by KAI and David Beckham was
recently spotted in at the W Hotel in
Honolulu discovering the vodka with the
assistance of KAI spokesmodels.
David Beckham with
KAI spokesmodels
W Hotel, Honolulu
THE “RICE” WAY
TO BE CREATIVE “Why just do a vodka when you can create something with a
David Nepove, a mixologist at Southern
Wine & Spirits in NoCal, like the other unique flavor profile that people will be talking about and
team members, has been so inspired by
the uniqueness of KAI Lychee Vodka that he ordering again and again?”
has set forth to invent new cocktails that will
add to KAI’s pre-existing appeal among — David Nepove
consumers and trade. Mixologist, Southern Wine & Spirits
“With an industry flooded with same
old same old, it is so great to be working
with an original flavor that works so well
with many cocktails,” Nepove muses. HEAVENLY HARVEST to bring a personal touch to the marketing
of the vodkas, they are spreading a very spe-
“Naturally, it is a perfect companion for BEGETS DIVINE DISCOVERY
cific message about how this vodka can
Asian and Pacific Rim foods. As it is a fla- The starting point for KAI Vodka and KAI
appeal to so many different people. While
vor many sophisticated people cannot wait Lychee vodka is fermentation with a tradi-
this vodka is an indulgence, it has its
to get their hands on, I also must say that it tional combination of 30 herbs, spices and
healthy side—the fact it is made from rice
is also a great fit for restaurants of all kinds, yeast that imparts this distinctive vodka’s
also makes it gluten free, which introduces
especially those with innovative bar menus. unusual character. However, rare and exot-
yet another audience into the mix and
Why just do a vodka when you can create ic rice is not KAI’s only sweet and seductive
another great reason to be on the market.
something with a unique flavor profile that component. While other vodkas pride
As accounts like PF Chang’s offer gluten-
people will be talking about and ordering themselves on essentially being flavorless,
free menus, KAI contributes to that health-
again and again?” the delicate flavors in the regular and
conscious factor.
lychee variety add a fresh dimension to the
vodka drinking experience, whether it is
KAI-AGRA
being enjoyed straight or as part of an inno-
PARADOX FOUND
1.5 oz Kai Vodka A study in KAI’s quick rise is also, very
3.5 oz (energy drink) vative cocktail.
1/4 oz Blue Cuacao pointedly, a study in contrasts. While the
According to Bender, the overwhelm-
Shake ingredients in a creative message of the print ads and public
ingly positive early responses to KAI
Boston shaker and pour relations efforts is that “pleasure is the ulti-
into a Highball Glass. Vodkas in Hawaii and California was a sure
mate goal,” the product’s positioning is that
indication the brand would find success in
KAI LYCHEE MARTINI other markets, including Nevada and
KAI in itself is a bottle of contradictions.
3 oz. Kai Lychee Vodka For starters, the notion of “Asian
Shake and strain into a martini
Arizona. “Our real success in the early
vodka” is a paradox, as many people still
glass. Garnish with fresh stages has been based on getting people to
Lychee Fruit. associate the spirit with Europe. Vodka is
taste it in our off- and on-premise promo-
an ordinary bar staple since it has almost no
KAI-TINI tions and samplings. While we enabled
flavor or odor, but KAI vodka is extraordi-
3 oz. KAI Vodka consumers to ‘discover it’ in accounts like
nary as it has a very specific taste, aroma
Shake and Strain. BevMo (and are still doing so right now),
Garnish with an olive. and feel. Vodka popular for its simplicity,
we’ve also gotten the buzz going with staff
but KAI redefines the vodka spirit as both
KAI ASIAN DELICACY tastings at our bar and restaurant accounts.
an exotic and sensory luxury. It is exotic
1/2 oz. Simple Syrup* When the staff has expressed their enjoy-
3 Thai Basil Leaves because of its origin, yet very accessible,
ment, it has prompted management to take
1 Lemon wedge (1/8 lemon) because KAI’s team is making sure that this
Muddle Simple Syrup, Basil, that leap of faith in bringing KAI to their
message gets through in Hawaii, Arizona,
and Lemon Wedge bar and being a part of our themed promo-
1 1/2 oz. KAI Lychee Vodka California, Nevada and, later, throughout
tions. The bottom line, however, is that
1/2 oz. Green Tea Liqueur the States. In the end, the interesting com-
people can taste the difference, and we’ve
Shake and strain into a martini parisons not only help introduce KAI to a
glass. Garnish with fresh Basil gotten converts right away.”
widening audience, but also change peo-
leaf and a Lemon Twist. Additionally, Bender says emphatically
ple’s notions of what vodka is about and
that he is a big believer in staying small in
MISS SAIGON MARTINI how it can be enjoyed.
1 1/2 oz. KAI Lychee Vodka some ways to gain bigger traction, especial-
“This is a fitting way to do business
1/4 oz. Triple Sec ly as “specialness” for many audiences
1 lime wedge squeezed since in the market, you have two contrast-
means something that steers away from
3/4 oz. Cranberry Juice ing audiences—the people who want some-
Shake and Strain into a Martini
becoming too big and corporate. Even with
thing new and the others who know what
Glass. Float with 1 oz. his drive to get KAI into bars across
Champagne or Sparkling Sake. they like and are attached to it,” says
America, he is also intent on preventing
Garnish with a fresh Bender. “Once you understand that, you’ve
lime wedge.
KAI from becoming a “SKU in a portfolio.”
got what it takes to tap into the diverse psy-
While KAI brand ambassadors are trained
6 BIN 2 0 0 8 • I S S U E 5
ches of different ages and demos and being
smarter of how we go after the business. If
you don’t take that approach, all you are
doing is marketing in a way that is similar to
taking a shotgun and shooting at random
targets. Our approach with the paradox is
about bringing consumer interest to the next
level by making people understand what sep-
arates us from the competition.”
FROM THE PLANTING FIELDS
TO THE PLAYING FIELD
Even with KAI being just a year old, Bender
and his multi-faceted team of industry veter-
ans and mixology innovators felt there was
no better time to reposition the brand using
a unique formula of interactive marketing
technology and carefully selected people
who understood the uniqueness and paradox
messages of KAI so thoroughly they could
bring it to a wide variety of audiences.
Dan Lyons, a 20-year beverage industry
veteran from Southern Wine & Spirits
recently came over to assume the position of
Vice President of the Western Region. Dana
Black, meanwhile, is the dynamic force
behind the sales and marketing efforts that
have made such a huge impact, while James
Stevens (a 35-year veteran who made a
name for himself in beverages via bringing
Perrier to the US in the 1970s, a long stint
at Coca-Cola and his highly successful J. M.
Stevens & Associates, Inc. consulting firm)
is exhibiting leadership as the company
Chairman who is keeping the sales, market-
ing and promotional arms of KAI on track.
California sales reps Gina Johnston,
Dean DeAngelis, Jessica DoVan and Las
Vegas Brand Ambassador Matt Kurzrok,
meanwhile, are setting a great example for
the rest of the US market with their focused
efforts to put KAI in the hands of trade
clients and consumers. Richard Turner, who
Left to Right: Richard Turner - Director, Dana Black - VP Sales & Marketing
Marcus Bender - Founder, Managing Director, James Stevens - Chairman
had a successful career as the director of
Allied-Domecq, another member of the
Board of Directors, is based in the UK and
has been an important in helping KAI
define its place in the world market, espe-
cially in establishing relationships with dis-
tributors and other key clients. Southern
Wine & Spirits, meanwhile, has provided
exceptional support for KAI in the Hawaii,
Arizona, Nevada and California markets.
“Kai Vodka is the kind of product that
excites me,” says Stevens enthusiastically. “It
has a real point of difference and a reason for
being in the crowded landscape of tradition-
al vodkas. Kai has several firsts that allow
you (as a retailer or restaurant) to stake out
a new segment and call it your own. Kai
Vodka is new news.”
On the creative side of things, San
Francisco’s Gershoni Creative Agency is
working closely with Bender and his team to
rebrand KAI completely and communicate
the revised and refreshed vision through a
rich, full-scale brand re-launch. This re-
launch involves a more thorough and engag-
ing marketing approach, which includes a
more polished internet/web presence. The
overall focus thoroughly covers the brand’s
attributes, benefits and mystique in a fresh
new way.
“We felt now was a good time to rethink
the way we are presenting KAI’s attributes,
benefits and uniqueness,” says Bender. “We
want to play up the fact that KAI is sensory
and can take diverse audiences to a new
place in terms of a flavor experience KAI
mood, since all the customers we’re looking
at have certain types of education, values
and desire to engage in cosmopolitan activ-
ities. The web is just one of the many ways
the KAI message will be reaching our
diverse and adventurous consumer and
trade audiences.” ■
LYCHEE—NOT JUST THE
FLAVOR OF THE MONTH
In a world where there are as many fla-
vored vodkas as there are personalities,
what makes the KAI personality unique is
that the brand offers only one flavor—
lychee. Although Bender had experiment-
ed with new flavor concepts, he ultimate-
ly decided to stick with one defining flavor
so marketing efforts could run deep rather
than become so broad that some products
are cannibalized in favor of others. As
KAI is the only distiller producing a Lychee
flavor, that distinction adds extra weight to
the marketing team’s efforts to emphasize
the brand’s specialness over all. And yes,
there is another engaging paradox to be
found….KAI’s one flavor of vodka has a
multifaceted nose and palate with notes of
spice, rose, orange blossoms and honey.
“KAI Lychee Vodka is very much about
‘discovery,’ while both formats are about
revealing a secret to conoisseurs that has
existed for over six centuries in Vietnam—
Ruou--which is Vietnamese Rice Wine or
Rice Vodka,” says Bender. “Rice is King &
Queen in Asia. We want to let audiences
know in a variety of demographics that
what they will experience, especially with
the Lychee, is that what’s simple can also
be exceptional. Furthermore, because
California is a melting pot of many ethnic
restaurants, bars and clubs, we believe
Californians will embrace the uniqueness
of KAI Lychee Vodka in 2008.”
By keeping the focus just on one flavor
and the original, Bender believes there is
less of a risk of distracting from the brand’s
intended message or becoming too
dependent on gimmicks. In other words,
if a product is special enough that it does-
n’t need a crayon box of flavors to prove
itself, that kind of confidence says a lot.