LUXURY AND PREMIUM PRODUCTS FOR BACARDY AND DIAGEO

Last week, at the 42nd Annual Impact Marketing Seminar, Bacardi North America regional president Pete Carr discussed the group recent acquisition of Patron Spirits for  $5.1-billion, a deal that lifts Bacardi from the fifth-largest spirits company in terms of U.S. market share to the second-largest.

Moving forward, Carr noted, 75% the company’s business will center on three brands, split between Bacardi rum at 22%, Grey Goose vodka at 26%, and Patrón at 27%.
Turning to Bacardi’s core rum brand, Carr used the occasion to unveil a revamped and expanded upscale portfolio, with new Reserva Añejo Cuatro and Gran Reserva Diez expressions set to join Bacardi’s Reserva Ocho and Reserva Limitada. “We’re placing a huge bet on rum premiumization,” said Carr. “Rum is the last category to premiumize, and we think there’s a $550 million category opportunity.”

Carr went on to detail efforts on several other top-performing Bacardi brands, including Cazadores Tequila and D’Ussé Cognac, and explained the turnaround strategy for Grey Goose, concentrated on plans to hold price, focus on the on-premise, and attract younger LDA and multicultural consumers to the high-end vodka franchise.

Meanwhile, Javier Ferrán, chairman of Diageo, spoke on the topic “Marketing Luxury Spirits In A Changing World.” According to Ferrán, several factors are set to drive luxury spirits growth in the coming years, including a consumer propensity toward “drinking better rather than drinking more,” and the ongoing rise of the middle class in emerging markets like Asia and Africa. He estimates that more than 700 million new consumers in emerging markets will be able to afford international spirits within the next decade.

He also noted the importance of consistently maintaining—and taking—price. “A key driver of perception of quality is price,” said Ferrán. “Luxury goods brand-building is a long-term game.”

Source: ShankenDailyNews.com

INCREASE SHOPPING FROM MILLENNIALS THIS END OF THE YEAR 2017

 

Cognac News and Economy

While most consumers (54%) say they’re keeping their holiday spending about even with last year, young adults (18-24 years old) are likely to increase theirs, according to survey released last week by the National Retail Federation and Prosper Insights & Analytics.

• Barely a quarter (24%) of consumers overall say they’ll spend more this year, but nearly half (46%) of those aged 18-24 — which includes the oldest members of Generation Z — and 39% of those aged 25-34 years old, will spend more than they did a year ago.
• Many of America’s youngest consumers will also be heading to stores this season, according to a survey from Junior Achievement USA. Most (54%) plan to do much of their shopping at brick-and-mortar discount stores like Walmart and Target this holiday season. Less than half of teens (46%) said that they would be doing much of their shopping online, while about a third (34%) planned to head out to the shopping malls.

Source: RetailDive

HISTORICAL PERSPECTIVE EXPLAINING WHY PEOPLE CLING GLASSES

 

Clinging Glasses

When celebrating people cling glasses. Have you ever wondered why?

The original reason has been lost in history but there are 2 main theories.

===>Theory One:
When drinking all the senses are activated beside hearing. Hence, clinging allows people to taste and hear, not so much the beverages but at least the glasses.

===>Theory Two:
A long time ago a common manner of assassination was poisoning people. Hence, people prevented from this by clinging glasses against each other to spill across glasses and reduce the risks of poisoning intents.

===>Theory Three:
Originally people only used one glass and shared it among the guests. When people introduced more glasses they used the physical contacts between the glasses instead of the physical gesture of passing the one glass around.

CONSUMER RESEARCH AND BIG DATA MARKETING USED BY SPIRIT BUSINESSES

Big Data Logo

Big data and marketing are being used in every industry including the spirit industry now.

According to SmartBrief

"Many beverage companies connect geographical data and purchasing trends to individual stores, while others collect data on influencers and use that data to engage with them in the form of multichannel campaigns and promotions.

Data has also become a powerful tool for optimizing assortments, streamlining supply chains, analyzing trends that appear on social media and planning and executing brand campaigns...

Companies track purchasing decisions at the item level via physical, online and mobile channels, and that data can be applied to making decisions about merchandising, assortment and supply chain.

But at the end of the day, just collecting data isn’t enough. Companies have to take a step further and turn that data into a decision-making tool to help optimize their beverage business."

Source: SmartBrief

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DIAGEO'S RECENT ETHNOGRAPHIC RESEARCH ON CONSUMER TRENDS

Diageo Consumer Research

Diageo's report released this week presents research gathered by a team of professional cultural ethnographers into three key trends that will shape the way we socialise in 2017 and beyond. These trends can be seen in a wide range of activity around the world from the growing popularity of immersive entertainment to the advent of technology than can transform the home.

1. the growing desire for “exceptional” experiences among younger consumers,
2. the ongoing trend toward more at-home drinks consumption, and
3. and consumers’ desire to “optimize” their drinks repertoire with products tailored to a specific lifestyle or diet.

One example of how Diageo is targeting the “experiential” piece is through its foray into virtual reality programming with The Singleton brand, in which consumers are virtually transported to the Scottish Highlands region where the whisky is produced.

Meanwhile, it’s catering to the at-home entertainment trend by partnering with delivery services like Drizly in the U.S. and Deliveroo in the U.K., and with the recent launch of a new Johnnie Walker “digital mentorship” program leveraging digital platforms to encourage consumers to further their whisky knowledge from within their own homes. On the specialty product front, Diageo touts the potential of recent offerings like dairy- and gluten-free Baileys Almande and low-carb and zero-sugar Smirnoff Spiked Sparkling Seltzer.

In conclusion:

Exceptional becomes the rule.
Solutions right at your Home.
Taking control of our choices.

Sources: ShankenDailyNews.com, DIAGEO

SCOTLAND GIN TRAIL IS SUPPORTING CRAFT DISTILLING

If anyone is to grow and compete against Scotch, Irish and Bourbon whiskys, a huge education job lies ahead. Education is key to consumer support.

“That’s why we started our academy down at Midleton,” says Anna Malmhake, CEO of Irish Distillers. “We run courses for the trade from all over the world on Irish whiskey history, its production, what makes it unique and so on. In a year at least 1,000 people have gone through it, and of course these are people who go back home and write about it and talk about it.” (The Spirit Business).

For the longest time, I have said that we need a 'Cognac Trail' like the so famous and successful "Scotch Whisky Trail'.

I guess the Scots are beating us to it again with the first 'Scotland Gin Trail' just launched this month by The Wine and Spirit Trade Association (WSTA).

UK, Scotland, London Gin Trail, i.e., The UK Gin Trail

This launch follows the earlier launch of the London Gin Trail.

“From premium brands, such as Hendricks, to craft distillers such as Crossbill, this new trail captures the variety and diversity of UK gin making, ... There has never been a more exciting time for the industry with the UK being the biggest exporter of gin in the world ... I want to harness the ambition of our Scottish gin-trepreneurs, helping them to grow the UK’s reputation for quality gin both here and abroad. I want to see it up there with Scotch whisky in terms of global sales" says Environment Secretary Elizabeth Truss.

This is real support from the government and strong organizational skills.

“The flourishing UK gin industry is being driven by the hard work and ingenuity of distillers and we're proud to be working with WSTA to promote Scottish gin throughout the UK and abroad... Our distillers are creating some really unique gins through experimenting with techniques from the whisky industry and using new blends of local botanicals – it’s exciting to see such innovation within the great British tradition of gin distilling" says David Mundell, Secretary of State for Scotland.

I wonder what they are going to do next? Succeed?

Source: WSTA

The 1800s Perhaps Had Lighter and Fruiter Cognacs

Cognacs were not always dark, heavy, and woody after-dinner sipping spirit says Tony  Sachs in his recent article from The Huffington Post on Food and Drink.

<A>www.huffingtonpost.com/tony-sachs/drinking-the-past-new-spi_b_1066859.html</A>

He particularly review and discuss Cognac Ferrand's latest addition "Pierre Ferrand Cognac 1840 Original Formula" which is blended as a replica of cognacs from the 1800s.  Ferrand focused on creating a lighter and fruitier cognac which is also meant to be mixed for the enjoyment of cocktails.

I cannot more agree with him but how can one change people's habits? I recently went to a cognac promotion in a large liquor store. I was amazed by the number of people who said that they liked brand X better and it was the best, and at the same time who admitted that they had never tried any other brands. Every time I wondered how would they know? It is like a person saying "I like pizza marguerita and it is the best" when they never had any other food in their life - how would they know. Cognac is like many other things in life, the more one knows the harder it becomes to have only a single favorite.

Learn - try - learn - even change your mind ... Personally, I like a lot of different cognacs for different reasons and perhaps for different times. There are some cognacs I can drink all the time and some other for special occasions. There are even a number of cognacs I keep for breaking my routines, I do not specifically like them but there are so different that they make a nice change in my classic cognac sets.

That reminds me. Who is the most famous woman in the world ...? [silence ...] I give you a tip she turned 125 years old last week.

Not sure! Another tip she is the symbol of freedom, liberty, equality, ... democracy, and of Amercia. Yes - that 's right - that is the Statue of Liberty in NY celebrated 125 years saluting the entry of New York harbor last week. She was a gift from France to participate in the centennial International Exhibition to celebrate the 100th anniversary of the signing of the Declaration of Independence in Philadelphia in summer 1876. The Statue of Liberty was design by Frederic August Bartholdi and engineered by Alexandre Gustave Eiffel who made himself famous by the tower he engineered in Paris soon after.

Feel free to experience your independence and try new cognacs. They may be not new to the world but new to you.

Photo: (c) 2011 Elcobbola, Wikimedia Commons.