That S*it Will Never Sell

A fascinating book on innovation in the alcohol industry

David Gluckman has spent 45 years in the drinks industry (the British phrase for the Booze Business) creating such outstanding products as Bailey’s Irish Cream (along with Tom Jago), Tanqueray Ten, Cîroc and scores of others. His book, whose title is the heading of this article, is a fascinating guide to what it takes to innovate and launch new products in this industry.

David was born in South Africa and came to the UK and began working in advertising. His accounts included such companies and brands as Procter & Gamble, Kerrygold butter, and several Unilever brands. In the late 1960s, he became a consultant to IDV (International Distillers and Vintners—a company that ultimately became Diageo), and entered the world of brand development.

As a new products/innovation toiler myself, I found the book to be captivating and a joyful ride on the sometimes-turbulent road of brand development.

A review by Paul Walsh (ex CEO of Diageo) put it nicely, “David Gluckman has a ‘one-of-a-kind’ approach to new brand development, but amazingly, it works. You will enjoy this book.”

I sat down (virtually) with David and asked him about his experiences.

You’ve spent most of your career on innovation and product development, what are the biggest obstacles you’ve encountered over the course of your career? Who are the innovation villains?

Somebody once asked me why we had such a high strike rate getting brands onto the market at IDV.  My answer “No marketing people.” No middle managers asking to see alternative ideas to go into massive research programmes.  I can’t imagine major players like Sidney Frank or Abe Rosenberg doing concept testing.  We had a very small team of like-minded individuals and the beauty was that we reported to top management.  I sold the idea of Smirnoff Black to Denis Malamatinas in under 10 minutes. And Aqua Libra to Tim Ambler in 5 minutes.  Well, that’s because I knew him better.

After leaving Diageo I did a project for a large drinks company.  The budget was huge and I worked in parallel with a global innovation giant.  I delivered my work a month ahead of schedule and I thought the solutions were really good.  I think it was a case of ‘budget allocated, budget spent, end of story’.  Nothing happened. I would be happy to go and re-pitch the ideas to the company tomorrow.  At no charge. I am confident the ideas would work.

Which companies (or individuals) that you’ve worked with were most welcoming or encouraging to new ideas?

IDV was a ‘one-and-only’ when it came to fostering new brand development.  Baileys took about 5 years to become significant and yet the company tolerated us (Tom Jago and me) even with the odd expensive failure. Adventure seemed to be built into the IDV culture.  When Jago left and Tim Ambler took over the rate of development accelerated.  I think of all the people I worked with, Tim was the most inspiring.  He really knew the business and he was on the main board and could make things happen.  IDV also formally introduced Tom Peters’ ‘brand champion’ idea so top management from all over the company were taking leadership on new ventures.

What’s the biggest regret of your career? What have you done or worked on that you wished you hadn’t?

When I parted company with Diageo in 2005 I got together with two ex-colleagues to develop Coole Swan, a super-premium cream liqueur.  The category made sense because there was nothing above Baileys and we felt there was an opportunity for a product with lower sweetness and more modern, sophisticated packaging which broke with the Baileys’ template. I was as proud of that brand as with any I developed for IDV/Diageo.  The problem for me personally was that it took me out of my comfort zone and into marketing and finance – not part of my skill set. I still firmly believe that it will be a great buy for a company out there with muscle and resources. But I should have negotiated a brand development fee and a small piece of the action and left it at that.

Thinking about all the new products or innovations you’ve worked on, which are you most proud and why?

It would be easy to say Baileys or Cîroc because they were so successful. But for me the two intellectual challenges which were most satisfying were Smirnoff Black and Distilled Guinness.  In the Smirnoff case, the brand was on its knees in the US.  The idea of a premium version to compete with Absolut and Stoli was scarcely credible. The solution came from a word more familiar in the brown spirits sector—we set out to achieve and perfected ‘the world’s smoothest vodka.’ And the product delivered. Hard-nosed New York 40-somethings really could taste the difference.  And even when I told them it was from Smirnoff they said they preferred it.

Distilled Guinness never got off the drawing board but the way the idea came together in my head was incredibly exciting. If you can have Jewish epiphanies, this was one. The discussion was about a Guinness Whiskey.  Should we take the brand into a new category?  On the surface, the only way was Irish and at the time (1998), Pernod-Ricard owned the market.  So, Guinness Irish Whiskey didn’t seem to make commercial sense.  Then out it popped.  The fruit of all those lengthy distillery visits.  Whisky starts life as a fermented product. A beer.  Then it’s distilled.  Why not simply distill Guinness? And call it that.  Distilled Guinness.  No SWA {Scotch Whisky Association}, no barrel-ageing, make it where you like and make it taste the way you choose.  We designed the pack the same evening and I was in a couple of focus groups a few days later. But it never happened.

What do you make of the craft (or small batch) product movement in the US and UK?

I never liked claims like ‘small batch’, ‘hand crafted’ which are all over the place these days. They are hollow claims, just hype. They don’t really mean anything.  I always liked brand claims that led to real benefits not stories. It was my advertising training working for Unilever and P&G.  Smirnoff Black was a palpably smoother vodka and Tanqueray Ten is made from fresh botanicals and has a fresher, cleaner gin taste. These are real product benefits. They could get drinkers to change their minds.

I’m not sure I agree with David on this last point inasmuch as the back story of a new brand must answer the trade’s question as to “why this and why now.” I think it’s the mix of what’s in the bottle together with the brand’s reason for being that often yields success.

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David Gluckman (L) and Joel Garner, a famous cricketer.

You can learn more about his book and buy a copy at this website.

It’s my second favorite book about the Booze Business. Can you guess which is the first? 😀

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Dad’s Hat Pennsylvania Rye Whiskey

A brand with a legacy

America’s first whiskey was made from rye, not corn, and Pennsylvania was where it was produced. In the late 18th century, pioneering farmers from Europe with distilling skills found that rye grain was easy to grow and made a very delicious spirit. The first American indigenous spirit was born.

(I’m far from a whiskey or spirits historian so for more detail I suggest you read some of the books and blogs by David Wondrich, Fred Minnick, Chuck Cowdery, Gaz Regan, and others.)

But, after Prohibition, the stills of Pennsylvania remained closed.

Starting in 2011, spurred on by Pennsylvania’s new distilling regulations, rye whiskey returned to the state and since has begun to flourish.

Enter Dad’s Hat

John Cooper and Herman Mihalich had known each other from their college days at Wharton. They kept in touch over the years as each pursued different careers—John as a sales person in tech and software areas and Herman in the chemical industry.

Along about 2006, each had grown tired of the corporate life and began thinking about “what comes next?” An article by Eric Asimov in the NY Times on November 29, 2006 pointed the way. It was headlined: All but Lost, Rye Is Revived as the Next Boutique Find.” They decided that they were going in to the booze business and, “bring rye back to where it belongs—Pennsylvania.”

Herman’s father owned a tavern (and at certain times, a speakeasy), so he felt right at home in the business. As Herman puts it,

“My Dad wore hats. Real hats. The kind you only see in old pictures or movies… Before he left the house each day, he’d carefully choose one from the rack and don it. The hat always seemed to fit his mood—or the occasion—perfectly. In those days, it was more than just fashion. A symbol of optimism. That we cared about quality, polish and finish. A subtle, personal signature. From an era when taking the time to do it the right way mattered.”

That became the credo and guiding principle for the distillery—to produce a rye that is true to its Pennsylvania roots and based on quality and a particular style.

So off they went to the Michigan State Artisan Distilling Program and by 2011 they were off and running.

I’ve met scores of startup and craft entrepreneurs and many (but certainly not all) subscribe to a philosophy that I call “build it and they will come”—meaning it’s all about the distillery, the process, and the end product. Only a handful think in terms of the drinker, the bar, the marketing, and sales.

For Herman and John, this broader view of the business means is that they have fully thought through the commercial and route-to-market issues. Take distribution for example. They don’t lose focus by opening markets indiscriminately (hoping to increase revenue) but by strategic expansion. They don’t over promise; they strive for consistency; and, believe that slow and steady growth is the way to go.

Herman Mihalich (L) and John Cooper (R)

The products—Local, sustainable, practical, and genuine

Dad’s Hat is a rye in the Pennsylvania Rye tradition. Period.

The rye comes from their close relationships with local farmers. The spent rye mash even goes back to the farmers to feed their livestock. Using high-quality ingredients, a grain bill of 80% rye, 15% barley malt and 5% rye malt yields a “flavorful mash that undergoes a week-long, controlled fermentation to develop complex flavor.”

The recipe was formulated at the Michigan State program over a two-year period and is based on traditional Pennsylvania rye whiskey.

The flagship is, of course, the 90-proof classic Pennsylvania Rye Whiskey, which, by the way, was recently awarded “Best in Class” by Whisky Advocate and named the Craft Whiskey of the Year for 2016.

There is a Straight Rye Whiskey (95-proof). Also, a Bottled in Bond 100 proof Straight Rye Whiskey aged four years.

But to me, their most intriguing products are the rye whiskies that are finished in vermouth and port barrels (also 94-proof). These came about when John and Herman were sitting around one day after work, drinking manhattans, and wondering about line extensions. The eureka moment was “what would happen to a Manhattan if the rye was aged (3 to 6 months) in a vermouth barrel?” I’ve tried it and, let me tell you, it’s amazing.

This idea also led to port barrel finished rye with an interesting taste. Both products use barrels from the Vya-Quady winery in the San Joaquin Valley of California.

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Dad’s Hat Pennsylvania Rye Whiskey sells for roughly $40 for a 750ml. The distillery and warehouse is located in Bristol PA in Bucks County and just across the river from New Jersey. There are tours which are held on most Saturday afternoons and well worth the visit.

Finally, a big shout-out to my friend Cliff Oldfield with whom I fought the Mongolian wars a few years ago. Cliff introduced me to John and Herman. He runs their sales in the NY-NJ region and is among the most effective salespeople I know these days.

Gentlemen: My hat’s off to all of you. (Please… I can hear you groan.)

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France, Submarines, Underwater Explorers… and Rum

SPYTAIL™ Black Ginger Rum enters the premium rum category

I ran into my friend Elwyn Gladstone a few weeks ago and asked him what he was up to. His answer was surprising, but, then again, everything Elwyn does is unique and extraordinary.

I’ve known Elwyn for a number of years and wrote about him last year when he launched Malfy Gin. He is a smart businessman, an astute marketer, and a successful product innovator. As I mentioned in my earlier post about him, he was instrumental in the development and launch of brands such as, Hendrick’s Gin, Sailor Jerry, Kraken Rum, Stranahan’s Colorado Whiskey and others.

The company he launched, Bigger & Leith, has this description on their website:

Biggar & Leith owns a small portfolio of fine spirits from established, family-owned distilleries who are dedicated to innovation and quality. We search the globe for brands whose bottles transmit the personality and stories of the people who make them.

With that in mind, let’s take a close look at SPYTAIL Black Ginger Rum.

Submarines and rum

SPYTAIL Black Ginger Rum is produced by La Compagnie Bathysphere. It is Caribbean Rum aged, spiced, blended and bottled in the Cognac Region of France. It’s based on the French tradition of aging rum with fresh ginger.

SPYTAIL’s story celebrates the French deep-sea pioneers whose underwater efforts are renowned both in fact and fiction—from Jules Verne to Jacques Cousteau. The name “SPYTAIL” was discovered by their distillers stamped on an old engineering plan for a submarine in the local maritime archive. They also discovered that, while submarines sailed along the bottom of the Charente River, ships laden with rum and ginger followed the same route from the Caribbean.

Voila—an inspiration emerged. Barrels of rum filled with fresh ginger roots and aged until the liquid turned almost black.

Why stop there? The packaging inspiration

Elwyn and his distilling partners decided that to fully acknowledge the product, the history of the region and French submarining, an appropriate package needed to be created.

The SPYTAIL bottle shape is based on a Bathysphere (a primitive form of submarine) with a porthole embossed on the front and back. Hidden within the embossing are the co-ordinates of the final resting place of Jules Verne. The navy blue and orange striped label, based on a French Navy signal flag, is adorned with engineering details from original submarine designs.  The heavy stopper is crafted from metal and embossed with the words “Voyages Extraordinaires” – a nod to underwater pioneers.

It’s a fun product with an interesting back story.

But what about the taste and the product itself? I’m glad you asked…

The liquid

Black ginger rum is a terrific idea and a strong entry in the growing premium rum category. In addition, ginger has become a seriously popular flavor among cocktail consumers – Moscow Mules, Dark & Stormy, ginger beer, and more.

I’m not a spirit’s reviewer— just a booze business guy who enjoys cocktails and trying new products. So, here’s a layperson’s observation.

I tried it on the rocks with a twist of orange peel and with ginger beer. I also used it in a hot toddy instead of whiskey. The rum and the ginger really complement each other and it’s enjoyable and unique.

On the rocks
With Ginger Beer
The Nautilus: 4 pts SPYTAIL, 2 pts Amaro, 1 pt vermouth, allspice and bitters

Product details

SPYTAIL Black Ginger Rum is produced and bottled in France and imported by Biggar & Leith. It’s 40% alcohol by volume and a 750 ml sells for under $25. In addition to the U.S., SPYTAIL is also available in Canada, France, U.K., Japan, Australia, New Zealand, and South Africa.

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I very much look forward to my conversations with Elwyn. He has a unique grasp on the booze business and incredible insights. Beyond that his product offerings are top notch, creative, and based on his in depth understanding of today’s drinkers’ need and wants.

Malfy Gin is doing quite well and the early indications are that SPYTAIL is getting good reviews by the trade.

Here’s to continued success, Elwyn. Cheers!!

The press packet presentation of SPYTAIL.
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