Archive

Archive for April, 2011

Mommy Wine?

April 25th, 2011 1 comment

There have been a few reports in the press recently about a trademark dispute over the use of the word “mommy” in conjunction with a wine brand.

You read it right – Mommy. As in a wine brand called Mommy’s Time Out and another called Mommy Juice. It gets even more interesting (perhaps a bit bizarre) since they are in court fighting over the trademark rights to the word Mommy. I wouldn’t have thought that you can trademark that word, but I guess it’s for the court to decide.

I don’t know what to make of it.

On one hand, it’s a brand name that reflects a usage occasion. As in, after a hard day as a mom and the kids are in bed, relax and have a glass of wine. In fact, one of the brands suggests on their website “you deserve a break, take a mommy timeout” and the other says, “…so tuck your kids into bed, sit down and have a glass …because you deserve it.”

I suppose too, that in a world of cluttered wine choices where the supply seems to overshadow demand, an interesting brand name allows a product to stand out. Which is why we have such clever, thoughtful and aptly named brands like Fat Bastard, Cleavage Creek, a rooster on a bottle called Big Red Pecker, Oops and, my favorite, Le Vin de Merde (if your French is not too good, you might want to translate it).

So I get it.

But I wonder what consumers think? Are they saying something like, “Oh, here’s an interesting wine that actually gives me permission as a mother to have some when I’m off duty.” Or, are they saying, “If I want a glass of wine to relax after a hard day as a multitasking mother, I’ll find my own wine, thank you.” Perhaps they’re saying, “Hey, wine is wine and that one is cute and worth a smile…I’ll buy it.”

Some might even suggest that a mom is never off duty and a product that carries these names are not appropriate. Neither is the usage occasion.

I have no idea and the real test will come in the stores. The fact that there are two brands suggests that the suppliers know something I don’t know.

One thing is clear to me. The moment they co-pack the wine with a Sippy cup, I’m going to hurt someone.

India

April 21st, 2011 No comments

“India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. Our most valuable materials in the history of man are treasured up in India only!”

Mark Twain

Last month I was contacted by Mr. Bishan Kumar the Group Editor of an Indian magazine focusing on the liquor trade called Spiritz. Mr. Kumar is my type of editor/publisher, someone with a passion for his publication and his readers. We hit it off from the outset and the next thing you know, I’m writing a monthly column called Booze Abroad.

It made me think how little most Americans know about India. From an alcohol industry perspective, India is the subject of many misperceptions and, until recently, you could have included me in that criticism.

Things you might want to know about India and why I’m thrilled to have an audience there  –

Their spirits business is the 3rd largest in the world (236 million cases) and ahead of the US, which is # 4. The industry is dominated by brown spirits and growing at the rate of 18 to 20% per year.

United Spirits Limited (USL) run by Dr. Vijay Mallya, is the major company in the market. It’s the second largest spirits company in the world…and growing. Lookout Diageo.

The dominant factor in the market is Indian Made Foreign Liquor (IMFL) and all the major global players have a presence in the country. In fact, the # 2 player in the market is Pernod Ricard India Ltd, which had an 8% volume share of spirits in 2010. (By the way, that company was previously Seagram India Ltd. Enough said.)

The future outlook for spirits is quite good based on a number of factors — rising income levels and a growing middle class; a youthful population; international travel and exposure to premium products. All that is fueling a demand for imported products like tequila/mezcal and bourbon/other US whiskies. Currently, whisky, vodka and rum dominate the market.

Oh, and it’s not just about liquor. Beer is flying off the shelves and the wine business, while still small, is growing.

All in all, it’s a fascinating country with a robust and interesting booze industry. With all my international travel, I’m sorry to say I’ve never been to India – a situation I hope will soon change.

What were they thinking?

April 15th, 2011 No comments

I was troubled on many levels today when I saw a story in USA Today (April 15) about two restaurant chains accidentally and mistakenly serving drinks to toddlers that had alcohol.

Here’s the lead:

This week, two of the nation’s largest casual dining chains — Applebee’s and Olive Garden — found themselves very uncomfortably trying to explain how alcohol ended up in kids’ drinks.

Tuesday, at an Applebee’s in Madison Heights, Mich., a 15-month-old boy’s sippy cup was supposed to be filled with apple juice but was filled with margarita mix and alcohol. On March 31, at an Olive Garden in Lakeland, Fla., a 2-year-old was served alcoholic sangria, not orange juice.

At one level, as a part of the alcohol industry, I recognize that these are extremely rare occurrences. But, as a consumer and grandparent of a toddler, even one in a billion or trillion is too much.

What were the servers thinking? Are they so bored, uninterested or lazy that they didn’t look carefully at what they were serving? How about the managers at the restaurants, is this how they train their staff?

Another part of the USA Today story got me further annoyed:

Leaders at Applebee’s, Olive Garden and the National Restaurant Association all declined interviews on Thursday, deferring to public relations departments and statements. Applebee’s cited pending litigation.

Come on, I know that corporate lawyers rule, but this is a moral and public confidence issue. Instead of hiding behind PR and counsels, senior management needs to be out there explaining what happened and what it intends to do to prevent this in the future.

This is not the first time. In 2006, a New York City Applebee’s admitted to accidentally serving a 5-year-old a Long Island iced tea instead of apple juice. A California restaurant experienced a similar incident to the one in Detroit in 2007.

So my advice to the brass at these chains is to forget about “damage control” and hiding behind the lawyers. Kick some butt and regain public confidence. The food service business is rebounding, why do you want to shoot yourself in the foot?

For those of us in the alcohol industry, the accidents (or acts of carelessness) add another arrow in the quiver of the anti-alcohol forces.

The US Census

April 6th, 2011 No comments

This week’s Ad Age had a story and insert about trends from the 2010 census. I found the information and learning interesting as a snapshot of the US market in general and my favorite industry in particular.

If you look closely at Ad Age’s analysis and spend some time with the census results itself, the “story” is about the shifting population. Not a new trend, by any means, but some interesting twists and turns that continue to affect marketing.

First, it should come as no surprise that the US is becoming more diverse — the minority populations grew 8 times faster than the majority white, non-Hispanic population.

Interestingly though, the news about Hispanics is that the population and growth is concentrated, with nearly half of all US Hispanics living in just two states – you guessed it – California and Texas. And, three quarters live in just eight states.

The Asian population is growing even faster and is more highly concentrated. Since 2000, the population has grown by 43%. New York and California have the largest concentrations.

Among African Americans, the Census data reported by Ad Age indicates, “many are moving to the suburbs and to the South…a sign of better job prospects and increasing affluence.”

I think the implications of these shifts are clear. The consumer and the spirits and wine marketplace is anything but homogeneous. Strategies, plans, brand building and related marketing/sales factors that don’t take this into account are simply worthless.

I also think that as affluence and acculturation take hold, the old rules of who drinks what need to be re-examined. As demographics change, over time, so do attitudes, life styles and purchase behavior.

Oh, one more piece of information from Ad Age caught my eye that I wanted to share. In an analysis of Boomers sponsored by AARP, it seems that older Boomers (55 to 65 years) spend as much on alcohol as the general population. But, younger Boomers (45 to 55 years) spend 15% more than the population in general.

No surprise to me…I used to think it was because the empty nest means more entertaining and food and beverage occasions. I now know better. It is not because of the empty nest – it’s more drinking because the kids have come back home.