Canadian wines and spirits agency Wine Classics International has announced an important new agreement with Suntory Global Spirits.
The recent FDFA Convention was the kickoff for the partnership in which Wine Classics International becomes Suntory’s duty free agent in Canada, although the collaboration has been in the works for a while, Wine Classics President Jonathan Hemi confirmed to Travel Markets Insider’s Michael Pasternak at the FDFA Annual Convention last month.
“We signed the agreement in July, but we didn’t really get going until now. Suntory will be our biggest partner,” says Hemi.
“Working with Suntory Global Spirits is a significant addition to our portfolio of suppliers, and we have some great ones,” says Sherri Gidney, Wine Classics International Sales Director.
Wine Classics now has supplier partnerships with Suntory Global Spirits, Crystal Head Vodka, Signal Hill Canadian Whisky, Edrington, Bottega S.p.A., Iceberg Inc., Garrison Brothers Bourbon, Tromba Tequila, Keeper’s Heart, Heaven Hill, and Konzelmann Wines.
This addition has filled a gap in the Wine Classics International portfolio, says Gidney.
“We now have a very well-rounded portfolio of brands. Suntory is the number one American whiskey and Japanese whiskey supplier in the world. In addition we now have all these great single malts: adding Laphroig and Bowmore, which is even larger in Canada than it is in the U.S. Plus a wonderful portfolio of tequilas.”
“I think we’re well positioned in almost every category now, except cognac. But in every other category, we have premium and value,” says Hemi.
Wine Classics and Alexander James
Wine Classics International are duty free specialists in the Canadian wine and spirits duty free market. Gidney and her team are experts with the complexities in the Canadian market due to the government liquor boards. The Suntory news is just the next step in the company’s growth and evolution, which included merging with wine and spirits distributor and cruise specialists Alexander James & Company, right before COVID-19 stopped the duty free and cruise industries in their tracks.
“Wine Classics is the majority owner of Alexander James. We kept the companies separate. Ned Carpenter and Ignacio Melero built that company, and I thought it’d be valuable to keep the name people know. Then COVID hit 52 days after we bought it. And then cruises were shot for two and a half years. We did the right thing. We kept as many people as we could. And now cruises are back stronger than ever.”
Between Wine Classics and Alexander James, the business now covers Canada, the United States, and Latin American airports as well as land border stores and cruise lines.
“I think one of the things that works well between the two companies is some of our brands are supplied by us on both sides of the border,” says Gidney. “An example of this is Garrison Brothers bourbon whiskey, which has been another huge addition, that is distributed with both Alexander James and Wine Classics. Working with Avolta North America with both Wine Classics and Alexander James has been a wonderful partnership with Catherine West and her local team building the business on both sides of the border.”
Having operations in both the U.S. and Canada is a huge advantage, says Hemi.
“Wine Classics offers a really interesting advantage for suppliers, because we can offer both sides of the border,” says Hemi.
“Between the two companies, we sell to almost every single customer in travel retail North America, so it gives us a lot of insight into what’s happening on both sides of border.
“Avolta is a perfect example. Because we already have a U.S. operation, Sherri covers Avolta for North and South America. It becomes so much easier, much more fluid for brands, from pricing, from logistics, for everything. It makes it much easier than if you just hire a Canadian agent.”
Wine Classics is more than just an agent, says Gidney.
“We are an agent, but ultimately, when it comes down to it, we are also a consultant when it comes to pricing, marketing, logistics, etc. with a lot of our suppliers. As some know there are complicated markets, and Canada is one of them.”
“I think we’re unique in the industry, just because we operate on both sides of the border. And we sell to everybody. We warehouse in Canada, we warehouse in the U.S., and not a lot of agents in Canada do any warehousing,” says Hemi.
The Canadian duty free business has begun to recover from the COVID-19 pandemic, especially in airports, says Gidney.
“The airports are definitely getting close to back to where they were, with some passengers still missing in certain airports, but those hopefully will keep going in the right direction. The land border depends on the border it’s been tough to get travelers to stop. I think a lot of it really has to do with employment, and not having the staffing at the borders,” says Gidney. “The Canadian dollar is at a five-six year low, and that is a good thing for duty free operators in Canada.”
