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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On the Road to Success

Checking in with Bom Bom Brands

A little over a year ago I wrote about the launch of this interesting new product and Kevin Mowers, the person behind it. You can find the story here.

I caught up with Kevin recently and asked him how it was going and what his experiences were as a startup brand.

What I did not mention in the original story is that the Bom Bom team consists of Kevin and his wife Eva Maria. Both bring different skills to the brand and, it turns out, that she played a crucial role in the brand’s development, as you will see. So, this interview was with both of them.

Kevin and Eva Maria

 

BB: How is it going? What were the highlights of 2016?

Kevin: Great – keeping busy!  We launched mid-year in CT and then branched out into MA, DC and NY (Westchester County and Long Island). Our distributors did a great job getting BOM BOM into retailers while we were focused on getting BOM BOM into consumer’s hands. We did this through a lot of in-store and in-bar sampling promotions as well as showing the product at larger tasting and charity events. One of the most important things for us was to make sure we keep having fun and celebrating every victory and every milestone, however small.

BB: What are the biggest obstacles or challenges you face? What have you done about them?

Eva Maria: The biggest challenge for us, like for any new brand, has been awareness. Since we are not national, the typical PR and marketing playbooks were not relevant for us, as we needed a more market-by-market, grassroots approach. We have pushed ourselves to really think outside the box, leave our corporate models behind, and leverage local PR, especially bartender contests, magazine profiles and social media. There is still much, much more to do. As we grow into more markets, we’ll be able to expand our PR outreach accordingly and that’s a top priority for 2017.

BB: Many new product entrepreneurs have told me that the single most important element in developing their brands has been in-store tastings, as you’ve just mentioned. I’m not surprised that this would be particularly true for Bom Bom.

Kevin: Indeed. We love doing in-store tastings as it allows us to engage with consumers. For us it has been just as much about getting feedback (and new drink recipes!) from consumers as sharing the BOM BOM story. BOM BOM Coco Mochanut recently received 94 points by the International Review of Spirits, which means it is the highest in its category. As such, we love seeing the excited look on people’s faces after they’ve tried it, especially when they themselves start selling it to complete strangers in the stores for us!

BB: I’ve known you for a few years and watched the development and launch. But I never wrote about how Bom Bom came about in the first place. What’s the brand’s back-story?

Eva Maria: Like a lot of today’s modern romances we were introduced by a common friend — Tracy — Who to this day takes credit for our awesome relationship and by association, BOM BOM.

Kevin had spent the better part of his career designing great tasting products for the industry’s top players and so of course tried to impress me with his extensive knowledge of luxury spirits. But it wasn’t really doing it for me as I was never really into alcohol…. this was both a disappointment and a challenge to Kevin… and good thing for me (and our BOM BOM fans) that Kevin happens to love a good challenge.

After a few dates, Kevin changed his game and mixed up something special just for me, made with my favorite flavors — coffee, coconut and of course CHOCOLATE! And BOM BOM was born!

I loved it so much that I started asking him to make it for friends and with time it was a standing order from friends and friends of friends…. We were making it all of the time and decided to go for it and formed the company “BOM BOM Brands” to share our fun with the world!

BOM BOM is all about the right mix of flavors, having fun and being authentic.  Our business partnership really is the same idea…. we have very different skill sets and so together we’re able to accomplish what neither of us would be able to do on our own.

And, to make the deal even sweeter, Kevin’s wooing is still going strong after three wonderful years of marriage….

BB: What does the future hold for the brand – line extensions, geographic expansion, etc. What do you think will be coming down the road? 

Kevin: BOM BOM is all about having fun and being authentic. As all small companies, we are excited to bring this fun to additional markets but also cautious not to dilute our efforts and grow too fast. From a new product perspective, we have a few new innovations in the mix. As with Coco Mochanut, all of our new products will be great tasting and in fun, fashion-forward packaging.

Kevin making cocktails at an event/tasting
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Over a Barrel

How home barreling of spirits changes everything

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It all started earlier this summer when I read a blog posting from my friend, Al Milukas. Al publishes a blog called Live the Live and I follow it avidly. It’s a great source of information on all matters of food and drink. This story, in particular, called Aging Spirits in Oak Barrels at Home, caught my eye and interest.

The next thing I know, I am the proud owner of a one-litre barrel from Red Head Oak Barrels and spent the next few months experimenting and aging liquor. But first, let’s talk a bit about barreling and aging spirits.

Wood, Time and Magic

Among the websites I visited about the effects of barrel aging included this with an article on the Science of Barrel Aging. As they simply put it, “Aging softens the ‘burn’ of the ethanol while smoothing out flavours and adding even more pleasant ones. The question is: what exactly is happening inside that barrel?”

They go on to talk about the effects of time, air, temperature, the role of different types of barrels (especially oak), barrel char, and humidity.

To be totally candid, I know very little about the science of barreling. Hey, I barely got through high school chemistry, so if you want to know more, I suggest you either look it up or talk to someone who knows. All I care about is the impact on my favorite libations.

Meet Red Head Oak Barrels

red-head-logo-sign

Following the advice of my friend Al Milukas, I ordered a 1-litre barrel from Red Head Oak Barrels and went to work.

The company is owned by Steve Mayes who was born in Baton Rouge, LA and now lives and works in the Dallas area. After playing around with the barrel and doing some experimenting (more about that in a moment), I gave Steve a call to learn more about him and his company. He started the company in 2013, is a Navy veteran, has a background in Internet marketing, and knows a good idea when he sees one. He’s also a very nice guy and could teach most major companies about customer service.

Here’s an example. In addition to my nonscientific knowledge, I’m also world renowned in my lack of mechanical and manual dexterity skills. (Just ask my wife who often calls the building’s handymen to change a light bulb.) Anyhow, I had some difficulty  assembling the barrel (putting in the spigot) and contacted Read Head Oak Barrels for some help. The problem was solved immediately. I was struck by how they handled and resolved my minor issue.

When I talked to Steve we spoke about his customer service philosophy and he told me they believe in “lagniappe,” an expression in Louisiana that means “a little extra.” It’s his way of saying that they specialize in over delivering and delighting their customers. There are many companies out there selling barrels, and in fact, some are resellers using Red Head’s barrels. But, I doubt if any have Steve Mayes’ attitude and business practice.

I had the barrel I bought engraved with the Booze Business logo (of course). It arrived shortly after I ordered it with very detailed instructions and appropriate paraphernalia.

The idea behind home barrel aging is pretty clear. Distilleries usually use large 53-gallon oak barrels to age their products because they need the large volume to satisfy their customers. But for home use, you need much smaller sizes. In fact, home barrels come in 1, 2, 3, 5, 10 or 20 liters and age the product inside much faster. That’s because of the ratio of wood to liquid is greater in a smaller barrel so it takes less time. That also means the taste and flavor is enhanced more quickly.

2-liter KY Bourbon kit
2-liter KY Bourbon kit

And now, the results of my experiments

I started simply and poured some mid-price rye whiskey into the barrel, waited two weeks and it was the smoothest, most flavorable rye I’ve had in a long time. Hmm, what would happen if I used an inexpensive rye? So, Old Overholt Straight Rye Whiskey went in next for about ten days and I could have made a fortune betting my friends what they were tasting was 10-year-old rye.

Gin followed and I ended up with batch after batch of outstanding barrel aged gin whose taste, color and smoothness was unbelievable. In effect, I had a barrel with complex flavors of rye, gin, and even rum.

But the coup de grace was a gin cocktail – my new favorite – the Negroni.

Last year my wife and I spent a long weekend in Santa Barbara and had dinner at the Stonehouse restaurant at the San Ysidro Ranch. We ordered Negronis before dinner and were asked if we would like a barrel-aged version. It was unbelievable.

That idea became my favorite experiment. I mixed a liter’s worth of Negroni (with Koval gin, a decent vermouth and Campari, of course), aged it for a little more than a week, removed it from the barrel into a bottle (to stop the aging) and it was great. I’ve since played with the recipe, brand of vermouth, and time in the barrel. It gets better and better.

My do-it-yourself barreled gin
My do-it-yourself barreled gin

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I could end this post with any number of clichés about barrels. But I won’t. After all, I covered the subject lock, stock and barrel.

Please stop groaning.

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