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

CUSTOMERS ARE ORDERING HIGHER QUALITY SPIRITS FROM BARS

 

I have ran across this article which is very relevant to today's economy and customer trends.
More updscale, more education, more choices ... essentially everyone needs to do more!

ON-PREMISE CONSUMERS ARE ORDERING BETTER QUALITY DRINKS MORE OFTEN
Source: Wine & Spirits Daily
https://winespiritsdaily.com/
March 5th

More consumers are consistently ordering beverage alcohol when they go out to eat. In fact, 84% of the 1,000 consumers surveyed in Next Level Marketing's annual report (conducted in February) said they are ordering alcoholic drinks nearly every time they go out, up 5% from last year's survey. With 87% of consumers surveyed ordering the same or better quality drinks, and just 6% saying they are ordering cheaper drinks.

The number of drinks consumers are ordering per occasion on-premise has consistently stayed around 2.2 drinks the last few years, and that number is a little higher among males and millennials. While consumers may not be drinking more per occasion, the number of occasions has increased. "People are drinking more often, better quality, but in the same amount each time," said Next Level Marketing's Mike Ginley at the VIBE Conference last week.

As for where they're drinking, casual dining chains are the most visited type of bars/restaurants among those surveyed, with local independent casual dining restaurants in second place. The main drivers of determining where to go are food quality, food and drink value prices and service. Beverage programs play a key role in determining where consumers want to spend their money on a night out.

WHAT MAKES A GOOD BEVERAGE PROGRAM?
The survey found that the top five key elements to a beverage program are: (1) good value prices, (2) happy hour specials, (3) great drink quality, (4) great beer selection and (5) drink specials and promotions. A bit lower on the list, you'll find great wine selection and great cocktail selection.

EXPERIMENTATION AND BRAND LOYALTY
Experimentation of new brands is "remarkably high" across beer, wine and spirits, with about 80% of consumers responding that they tried a new brand within the past 90 days, and about 60% tried a new brand in the past month, according to Mike. Though the general consensus is that consumers are less brand loyal these days, Mike suggested that many still are brand loyal based on the fact that consumers said they only consumed about 3 or 4 brands in total over the past 90 days across each category.

TRAINING IS IMPORTANT TO CREATE THE FUTURE GENERATION OF LUXURY CRAFTSMAN SAYS LVMH

 & EDU

On Monday, the LVMH group started its first Italian professional training programme in Florence, where it established a branch of the Institut des Métiers d’Excellence (IME), its vocational training institute. On this occasion, the French luxury group’s Director for Human Resources and Synergies, Chantal Gaemperle, spoke to FashionNetwork.com about the new needs of the luxury goods industry.

“…LVMH’s training is a way of passing on our expertise, of preserving crafts which risk being lost, and of educating craftsmen to deliver excellence…”

“…crafts people transmit not just the quality of their expertise, but also their pride in creating fine products…”

“…Working in the luxury industry means… embracing the uncertainty and ambiguity of things, because we are part of a creative process. The world of luxury is full of paradoxes and tensions…”

Source: UK FashionNetwork

GRAND MARNIER TO BOOST ITS ORIGIN WITH COGNAC

 

Grand Marnier, Cognac, Liqueur, 1880, Quintessence

Grand Marnier is said to go back to its luxury roots and emphasize its connection with cognac. As you may know, Grand Marnier is made with cognac, and it is originally a cognac brand which became much more famous for its liqueur.

I could even venture to say that they kind of gave up on cognac a while back.

Grand Marnier was still part of the Marnier-Lapostolle family until last year in 2016 when Campari acquired it for $760 million.

Campari intends to take advantage of the current cognac boom and join in with the cognac association to Grand Marnier, and probably getting back into the cognac category.

The USA is Grand Marnier’s biggest market after France with 77% of its international sales.

Here is an excerpt from Shanken Daily News:

..."To capture some of the buzz around the Cognac category, Grand Marnier’s message will highlight that the core Cordon Rouge expression is 51% Cognac and 49% distilled bitter orange. “On-premise will continue to be a particular focus as we work to increase trial and reintroduce Grand Marnier to a new generation, many of whom don’t realize that Grand Marnier is more than half Cognac,” Batchelor explains.

While core label Cordon Rouge ($39.99) makes up the majority of the brand’s depletions, Grand Marnier’s portfolio has broadened over the years to include high-end marques that offer higher Cognac content. The brand’s Centenaire ($199.99), Cuvée 1880 ($349.99) and Quintessence ($899.99) extensions all use older eaux-de-vie and tweak the Cognac ratio, going all the way up to 91% Cognac for the Cuvée 1880. Although Cognac’s popularity has reached such a height that some brands—notably Hennessy—are seeing shortages, Grand Marnier master blender Patrick Raguenaud isn’t worried about stocks running dry, citing century-long relationships with grape growers throughout the region. “We have a collection of 450 winegrowers who supply Grand Marnier,” adds Batchelor. “Those strong and genuine relationships are at the core of Grand Marnier’s commercial activities."..."

Source: ShankenDailyNews

KENYA IS THE NEW MARKET FOR COGNAC IN AFRICA

 

Cognac Hennessy in Kenya

After pushing hard in Nigeria, Hennessy is now starting to distribute its cognac in Kenya to take the opportunity of Africa’s second-largest luxury-goods market, with a market growth expected to be double digit.

In 2017, Kenya has 9,400 dollar millionaires, fourth-highest in Africa, and 17000 millionaires are expected in 2027.

Kenya was Africa’s second-largest market for luxury goods in 2016, with revenue of about $500 million, up 25 percent from a year earlier, according to a report by New World Wealth, a Johannesburg-based research group. The country ranked behind South Africa’s $2.3 billion market and ahead of Nigeria, it said. Brands like Hennessy are expanding their reach on the continent to tap into growing numbers of middle-class and rich people.

Source: Bloomberg

EXPERIENCING LUXURY WITH PORSCHE EXPERIENCE CENTER

Experiencing and consumer experiential marketing are becoming the big words in business these days.

I ran into the Porsche Experience Center in Los Angeles (USA), which just opened in February 2017. What an experience! If you are into cars, sportscars and more so into Porsche, you need to check this place.

Porsche Experience Center

There is another Porsche Experience Center in Atanta (Georgia-USA), which is older.

Porsche Experience Center

The Porsche Experience Center offers driving lessons in the current Porsche for sale in their catalog, so you get to really test drive the car before you buy it. There is also sort of a museum of older race cars which you can see and touch, versus some behind a glass window being worked on as you would buy. There is also a boutique with Porsche accessories such as neat watch, clothing, books, etc. and 2 restaurants: one for a quick bit and a gourmet seat down style.

Porsche Experience Center

I cannot wait for them to open their doors for people to come with their Porsche to drive on the track!

Source: Porsche

THE DALMORE NEW 50 YO SCOTCH WHISKY FINISHED IN CHAMPAGNE CASKS

Whyte & Mackay (part of the Group Emperador, largest brandy producer) brand The Dalmore is marking master distiller, Richard Paterson's, 50 years in the whisky industry by releasing a 50 year old single malt, finished in Domaine Henri Giraud champagne casks.

cognacdailynews-thedalmore-50-champagne

This is not the first 50 years old scotch whisky for The Dalmore. Perhaps, the 3rd I would say.

The Dalmore 50 year old has been crafted in partnership with four other luxury houses:

1) Domaine Henri Giraud: cask finished from craft champagne producer.
2) Baccarat: glass bottle maker.
3) Linley: packaging maker.
4) Hamilton & Inches: silvering.

The artisans at French crystal house Baccarat have created crystal decanters, each of which will be held within a presentation case designed and crafted by the accomplished furniture makers at Linley.

With up to 50 decanters released, hand-filled on order, The Dalmore 50 has been matured in American white oak, Matusalem oloroso sherry casks from the world renowned Gonzalez Byass Bodega and port Colheita pipes from the Douro region of Portugal, before undertaking a final finesse for 50 days in champagne casks from Domaine Henri Giraud.

Each decanter will be adorned with a solid silver stag, created by silversmiths Hamilton & Inches, holder of The Royal Warrant.
Richard Paterson, master distiller at The Dalmore says: “This is a special year for me so I chose to finesse this whisky in a champagne cask, as this magnificent drink is synonymous with celebratory occasions.

The 5 steps of The Dalmore 50 Year Old:

1) 1966: The Dalmore new make spirit began its journey in American white oak ex bourbon casks

2) 2003: The maturing whisky is transferred to Matusalem oloroso sherry casks

3) 2012: The whisky is transferred to port Colheita pipes

4) 2016: In January of this year, the spirit was transferred to bourbon barrels as it reached its desired taste profile, prior to finessing.

5) November 2016: The whisky was finessed in Domaine Henri Giraud Champagne casks for 50 days before bottling.

Source: The Drinks Report

Mr MARANDI INVEST IN COGNAC WITH A LUXURY HOTEL

Built in the 19th century, 'Chez Monnet' is in the heart of the quite town of Cognac. Originally, it was the childhood home of Jean Monnet, one of the founding fathers of the European Union, with its cellars from 1845.

Not so long ago it was sort of abandon but was recently purchased by British investor Mr Marandi. Now he is personnally investing €60 million to transform the site into a 15,000m2 luxury hotel, spa, restaurant and retail boutique complex.

Last October 2016 the first construction stone was set.

Hotel and resort is planned to be completed in Spring 2018.

(left, architect) Didier Poignant, Mr Marandi, Michel Gourinchas (Mayor of Cognac)

Source: HotelDesigns.net

BURBERRY IS RAISING THE BAR FOR LUXURY MARKETING

Burberry is celebrating its 160th anniversary this Christmas with a short film telling the story of Thomas Burberry, the man behind the iconic trench coat.

Burberry Pattern

Directed by Academy Award winner Asif Kapadia, this short film has the scope and scale of a blockbuster movie trailer, indeed.

After watching the 3.30 minutes I was looking all over the Internet for more story of this soon to come movie ... to find out this was just a commercial.
Well done!

Spectacular. Burberry has just raised the bar for luxury brand marketing.

Source: Youtube

MY LUXURY MARKETING BOOK IS NOMINATED FOR BEST BUSINESS BOOK OF THE YEAR

The creation and consumption of luxury brands is one of my favorite interest.

I am very inspired by luxury artisans and the craftsmanship necessary in making authentic luxury products.

Last year in 2014, I was able to co-author a business book titled "Marketing du Luxe: Stratégies innovantes et nouvelles pratiques" which is a book written in French about the management of luxury companies. I wrote the chapter about the creation and maintenance of luxury brands.

Luxury Marketing Book published in 2014, Marketing du Luxe

I am happy to report this book was recently nominated for the "Prix Académique de la Recherche en Management" which prize is recognizing the best business books of the year written in French.

The book is available at:

http://www.amazon.fr/Marketing-luxe-Stratégies-innovantes-nouvelles/dp/2847695761

http://livre.fnac.com/a6863376/Eugenie-Briot-Marketing-du-luxe

http://www.editions-ems.fr/livres/collections/regards-sur-la-pratique/ouvrage/320-marketing-du-luxe.html

Enjoy this video which illustrates how Christian Dior crafts a handbag. A real wonder, Astonishing!

https://youtu.be/ixBYyTYZvYQ