Things have changed since McCormick Distilling Co. began producing whiskey 150 years ago for its patrons in the Wild West; the company weathered Prohibition by distilling medicinal liquor thereby making it the “oldest continuously operating distillery in the United States.” Although McCormick still makes whiskey—along with bourbon, gin, rum, brandy, tequila and cream liqueurs—its main business these days is vodka.

McCormick’s latest creation, 360 Vodka, looks directly to the future. “This is a green product,” says Jim Zargo, the company’s president. From production to packaging, 360 Vodka is produced using environmentally sound solutions.
And as a privately held company, McCormick can make a decision and move quickly. For instance, the company came up with the concept for 360 Vodka only six months before it was launched in April.

“The high-end vodka drinker who enjoys a premium upscale vodka is our target,” says Vic Morrison, vice-president of marketing. “What 360 Vodka gives that person is a way to also help with the environment and improve on his or her green lifestyle. We developed a quality product that’s in a closed-loop, as close as we can get it, leaving a minimal footprint on this planet.”

For example, the carbon dioxide released when the grain is fermented is captured for use in carbonated beverages. When the mash is extracted, the spent grain is taken to huge dryers to extract the water, which yields high-protein dry grain that’s sold for animal feed. All of the emissions, the volatile organic compounds (VOCs), are burned off, and the water in the cooling processes is recycled.

The McCormick team also built the package for 360 Vodka from scratch, which is environmentally friendly, sustainable and reusable. The natural color of the bottle is a luminous bluish-green with some impurities visible in the glass, and an unusually thick base.

“The bottle is made from 70 percent post consumer recycled glass and 15 percent in-house cullet,” says Zargo. “It’s the highest you can find and still maintains molecular integrity.”

The label is on 100-percent recycled paper by New Leaf Paper Co., and the inks are environmentally friendly and water-based. The company provides eco-audits telling McCormick exactly how many trees, energy and gallons of water it saved by using recycled paper.

The swing-cap closure also allows the bottle to be re-used—for liquid soap, oil, even homemade beer—adding sustainability. “Or send us the swing cap and we’ll make a donation into an environmental organization, and we’ll reuse it,” says Morrison.

The company also regularly makes donations to environmental causes. “Our Florida-based program presented an initial donation of $30,000 to the Coastal Conservation Association last month, along with $20 from every case of 360 Vodka sold in that state,” Morrison says.

McCormick’s 360 Vodka joins a roster of best-selling American-made vodkas (only Smirnoff sells more), which includes Viaka, Congress, Hussar, Nova, Prince Alexis and the premium brand Polar Ice. The company also produces McCormick Family-branded vodka that comes in original and five additional flavors: Peach, Raspberry, Orange, Vanilla and Apple.

McCormick’s latest production innovation has been in the works for two years—a handle for the McCormick Vodka 1.75 PET bottle. “We’ve developed a process with Amcor in which the handle is inserted by a robot during the blow process, and the plastic forms around it,” says Zargo. “Ocean Spray fruit juice has a handle on one of its gallons, but nobody’s done it for liquor. It will help distinguish the McCormick Family brands. We should be nationwide with it in a couple of months.”

McCormick Distilling products are sold in all 50 states and 38 foreign countries. “We’ve always been in the international market, but in the past seven years the real growth internationally has been in our premium products,” says Zargo. “Tequila Rose has been selling big in Canada, the UK, Sweden and Finland.”

Tequila Rose is the No. 1 imported strawberry flavor cream liqueur and tequila. The marketing of Tequila Rose includes McCormick’s partnership with Curb Records duo, Bomshel, supporting their “Wicked Women of Tequila Rose” tour. “The personality behind the brand is beautiful and dangerous, cream and strawberries with a tequila base,” remarks Morrison. “Tequila Rose tastes like a strawberry shake.”

Line extensions to Tequila Rose came out last year, including Tequila Rose Cocoa and Tequila Rose Java. Also last year, McCormick’s Tarantula Tequila, a pre-mixed margarita line, came out in two new flavors—Reposado, which is aged in choice oak barrels, and Plata, which has the distinctive taste of agave. Other flavors include Lime, Orange, Strawberry, Banana Colada and the original pale blue Tarantula Azul.

The line extensions coincided with some production advances, including a new custom-built labeler that can apply pressure sensitive and wet glue labels for McCormick’s extensive line of products. “We feel we get that pop effect of a silkscreen label with the custom feel, but with pressure sensitive you can also get some really great graphics,” says Zargo.

McCormick originally started by distilling whiskey and today it offers several brands: Canadian Woods, Stillbrook, Royal Gentleman, as well as B.J. Holladay Private Keep Bourbon, named for its founder. Ben Holladay was involved in the founding of the Pony Express and his brother David Holladay ran the company until 1894.

Passing through a number of private owners over the decades, McCormick was purchased by Ed Pechar and Mike Griesser in 1993. They have overseen its growth from 35 employees and $50 million in sales in 1992 to 186 employees and $150 million in sales in 2006.

VITAL STATS
McCORMICK DISTILLING CO.
PRESIDENT: Jim Zargo
HEADQUARTERS: Westin, MO, with offices in Dallas, TX
’06 CASE VOLUME: 3.6 million
EMPLOYEES: 165
GOALS: Proving that premium products don’t have to be expensive.

From Beverage World August 15, 2007