Fact or fiction? Physiological or psychological?

What do you think?

I’ve been researching this topic lately and have been thinking about it ever since I got into the booze business.

When you talk to consumers, many have clear cut answers such as, “tequila makes me crazy,” “whiskey makes me angry,” “gin makes me sad, must be the junipers.” My favorite, that I found online, is… “I’m allergic to tequila. Last time I drank it, I broke out in handcuffs.”

Whether in focus groups or with friends, these beliefs are strongly held and generally tied back to a memorable occasion. Usually, it’s based on a particular episode of, ahem, being over-served or the maiden drinking voyage. But, misconceptions play a big role – there is nothing in juniper to lead to sadness and even if there were, the distillation process would eliminate it. Similarly, the agave plant from which mescal is distilled (tequila is a type of mescal) has nothing to do with mescaline.

Sorry folks, alcohol is alcohol. The differences one experiences from different types of liquor (and alcohol in general) have, in my opinion, little or nothing to do with the liquor itself. There are many other factors at work.

What about the congeners (the substance produced during fermentation of alcoholic beverages)? While red wine and dark spirits have the greatest amount, they are present to different degrees in white spirits. They also are more related to the morning after than getting you to slur, “I love you man” during an evening’s indulgence.

How about the mixers used as a possible explanation for the difference? Tequila is consumed as a shot half the time and with sugar laden margarita mixers the other half – do these play a role? Rum mixed with juices, sugar or cola can affect the impact. Maybe it’s the tonic in your G&T.

I think the culprit is the mood, occasion and situation you are in while drinking. If you’re planning to get hammered, or the situation calls for it, you will. If it’s been a tough day and you’re looking to unwind and mellow, what you choose to drink will have that result.

So, in effect, it’s in your mind rather than in your glass or bottle.

Here’s something that sums it up. I found it online at io9, a blog by Gawker media:

…The question of whether mixers or congeners affect our experiences with different alcohols seems almost inconsequential; if you wholeheartedly believe that a tequila is your one way ticket to Bedlam, there’s probably not a whole lot that can be said to convince you – or your body – otherwise.

What do you think?

Don Mateo Wines started with three global entrepreneurs, a passion for wine making and a vision to become world class.

So, what’s so special, you ask, lots of aspiring winemakers out there.

Yes, but how many have won four awards at the recent Wine and Spirits Wholesalers of America (WSWA) convention? And, how many have had a journey that began in China?

I first met the partners running Don Mateo Wines in late 2010 and was immediately struck by their business acumen, gained in global trading, and applied to the wine world. Their story is interesting.

Andy Lam and his brother Matthew were successful exporters of various products and commodities to Chile from China. Over the years, the currency exchange swings hurt their business and so they turned the ship around and began importing wine from Chile. Their passion about wine helped, and they began buying vineyards and wineries. Added to that was the patience and tenacity to develop top quality wines. They hit the Chinese wine market at the right point in time and the business flourished.

You can’t be a global wine player without the US market, so a third partner, Peter Loucks, entered the picture and applied his overall business skills to the wine business. Peter is smart and a quick learner so it’s not surprising that he soon realized that, unlike China, the supply of wine (Chilean and others) exceeded the demand. Consequently, growth here would be an uphill battle. Further, the mandatory wholesaler tier has become more and more difficult to deal with, as in “take on another wine brand, are you kidding?”

But, he knew that despite the hurdles, he had some key brand equities and assets. For one thing, Don Mateo is a memorable brand name for a Chilean wine and the brand symbol is both interesting and notable to consumers.

As you can see, the symbol/logo is the Moai (pr. mo-eye). These Moai are the monolithic statues of Easter Island, off the coast of Chile. According to their website “they reflect our commitment to discovery, craftsmanship and passion. These three elements have been the guiding principles for Don Mateo wines from Chile.” Might even stand for the three partners behind the venture. You never know.

If you asked the brand owners what is the single most important asset of their wines, their answer is most likely to be, the wine. Trust me folks, these are outstanding wines. But, in case you don’t believe it, think about the medals they won at the WSWA – three silver and a double gold.

Here’s the irony. Despite the entrepreneurial approach, despite their marketing and branding and, despite the high quality and good value, you would think wholesalers would be beating a path to their door. Instead, getting wholesalers to take on the line has been slow and difficult. Such is the state of the booze business and the plethora of brands on the market.

But, hey, the Moai on Easter Island have stood the test of time, so why shouldn’t Don Mateo Wines.

For you former Seagram folks out there… It might interest you to know that Jim Reichardt introduced me to them and their New Jersey wholesaler is Sam Ellias.

The Gibson Martini is generally made with gin (or vodka), vermouth and a few pickled onions referred to as pearl onions.

In the great debate as to how to garnish a martini – what type of olive, stuffed or plain, how many – the Gibson, known for pearl onions, has been somewhat obscured. While originally branded for the association with Gibson Gin, the Gibson is now identified for those cute little white things regardless of the booze used.

As a public service to drinkers everywhere, here is the Gibson story. Or, should I say, stories.

First, while martinis are found all over film, books and TV (think James Bond), the poor Gibson is kind of obscure. Best I could come up with was the occasional drink by Roger Sterling in Mad Men, Cary Grant in North by Northwest, a Frasier episode (Stoli Gibson with three pearl onions) and not much else.

What I find fascinating about the Gibson, are the stories about how the drink came about. I found three.

The most common one is linked to the 1930s and Charles Dana Gibson, the illustrator known for the Gibson Girl images. As the story goes, he challenged a bartender named Charlie Connolly at New York’s Players Club to create a “different drink.” The result was garnishing a martini with cocktail onions that became know as the Gibson.

Nah, I’m not buying it. Sounds like it came from some old school press agent.

The second one goes back 40 years prior to this. Mr. Walter D K Gibson is supposed to have had the first martini named in his honor at the Bohemian Club in San Francisco. Apparently, this gentleman didn’t like the way they prepared gin martinis so he specified the brand and had them add pearl onions. Also, he believed eating onions would prevent colds.

I’m not buying this one either.

The story I subscribe to came from a good barman friend and we all know that the stories told over a bar are more accurate than anything on the Internet, not to mention other sources.

As Adam D. tells it, a savvy businessman and banker in the 50’s and 60s often found himself out with clients for the proverbial three-martini lunch. Unable to function during and after the meal, he had the bartender serve him cold water so he could remain sober while his clients got shit-faced. The cocktail onion was used as garnish so his beverage could be distinguished from the others. The banker’s name was Gibson.

Now, there’s a story I can believe.

Wine and Spirits Daily

Is this hype or real?

Let’s take a close look. After all, this is a brand that has had 25 years of decline from 2 million cases in the 1950s and 60s to less than 150,000 recently.

What the brand has going for it is the recent movement to Remy Cointreau and their knowledge and focus on scotch. They should be able to push the brand as part of their scotch portfolio and have a vested interest in keeping the Edrington people happy. So check the box on leverage and clout.

A number of side benefits also come with the move to Remy. As a new brand with a full, strong portfolio behind them, they will fill distribution gaps and move into important brand building accounts.

But, wait a minute, isn’t it a bit early to declare victory on the path to a turnaround? From the data I saw, for the four-week’s performance to Feb 24, the brand grew in SymphonyIRI data by 3.2% compared to a -5% for the year.

1967 ad

What about the consumer? What are the motivations that Cutty Sark provides to get a call for it? WSD suggest that its occasional presence on Mad Men, and the retro drinking influence may be helping. That could be, but is it enough?

As I read the article, I became more and more puzzled by the empty pronouncements of success just over the horizon. I can’t figure out the basis on which young consumers are discovering Cutty Sark. Is there a cocktail or signature drink that’s driving the brand? We’re told that Cutty “was created to be easy-drinking, easy-mixing and not particularly challenging.” So is water.

Here’s my favorite quote and an example of world-class marketing BS – “For me, I’m not looking to take business {from} the Scotch category, I’m already seeing us take business in bars from the Irish category.” Really? Cutty Sark is taking business from brands like Jameson that is among the fastest growing brands in the country?

Cutty Sark is an excellent brand with an interesting history. Legend has it that it was Cutty Sark that helped to create the expression the Real McCoy. The story goes back to prohibition and I found it here.

“One man who regularly sailed between Nassau and Rum Row was Captain William McCoy, of Scots origin and living in Florida, who began running liquor in 1921 using a schooner named Arethusa. By this time suppliers and distillers were often meeting the immense consumer demand with very poor quality liquor, and McCoy decided to make his reputation by supplying high quality products, chiefly Scotch whisky. This strategy worked well, to the considerable financial benefit of McCoy, whose name entered the English language as a result of the reputation he acquired.”

“In particular, McCoy ran large quantities of Cutty Sark…”

So there you have it. A brand built on authenticity and known as the Real McCoy
 is the subject of hype and marketing BS today.

Hey, Mr. Global Head Honcho of Cutty Sark: you have a brand with a great story. Why not try to leverage that provenance instead of making empty claims?

Single malts have driven the Scotch category for more than a decade with steady and consistent growth. Brands like The Glenlivet, The Macallan, Glenfiddich and Glenmorangie seem to drive malts and, in turn, malts drive US scotches.

Blended whisky is still the backbone of scotch, but even brands like Johnnie Walker, Dewar’s and Chivas Regal can’t seem to stop the hemorrhaging of this segment.

What does this have to do with your father?

Well, back in the day, those in the booze business felt that given 1) the difficulty of overcoming the taste hurdle of scotch and 2) it’s lack of mixability — if you found a scotch drinker, then you can be sure that his/her father introduced them to it.

That’s a problem today since most fathers stopped (or never started) drinking scotch in the first place. Besides, “my father’s scotch” is right up there with Oldsmobile. So much for modern day mentorship as a motivator for drinking scotch.

Enter Dewar’s Highlander Honey, the subject of my last posting.

I gave many reasons why I see this as a success so I won’t repeat them. Scroll down and see for yourself.

However, since writing that post, I’ve had occasion to speak with Arvind Krishnan, VP Brand Managing Director, Dewar’s and to taste the product along with some friends and scotch aficionados.

First, the Dewar’s people have done a great job of blending the taste of Dewar’s with fantastic notes of honey. This stuff is not artificial tasting and, the honey and scotch combine to provide a whole new flavor. As a result, they have also combined experience and exploration – as in the experience of enjoying scotch and the discovery of how pleasant and desirable it can be.

Here are two thoughts on the flavored spirits world. The Huffington Post wrote this week about flavored vodka under the heading, Flavored Vodka Companies Continue To Debut New Flavors, But Why? You can find it here.

When you get away from the kiddie flavors in vodka, you come across serious flavored American whiskies that are growing rapidly. Just this week I read that Jack Daniel’s Tennessee Honey has sold close to 500,000 cases in just two years.

I predict that not only will Dewar’s Highlander Honey succeed but also there will be a host of others on the market in the not too distant future. You can bet on it.

Oh, and that taste test?

It’s best summed up by the statement one non-scotch drinker made, “I had no idea scotch could taste so good.”

Good Idea

The flavored whiskey category has been on fire with brands like Wild Turkey American Honey, Jack Daniel’s Tennessee Honey, and Jim Beam Red Stag among others. Now the folks from Dewar’s Scotch (owned by Bacardi) are entering the flavored whisk(e)y category with Highlander Honey, a scotch infused with honey.

Imagine, they have the audacity to try to break down the stuffiness and out-of-date sacred walls of the blended scotch category. Never mind that blended scotch growth has been declining to flat in the past decade while other whiskies (including malts) have been growing. It’s not about adapting to changing tastes, it’s about a stiff upper lip refusing to swallow change.

Check this out. The Diageo head of whisky outreach (huh? I think that’s a way of saying, ‘can I buy you a drink?’), was quoted as saying Scotch has too much “integrity” and “authenticity” to get into flavors. Diageo and integrity in the same sentence? My word! Also, the Scotch Whiskey Association is not very happy about it. Better to go down with the ship, eh, what?

Hey, it’s a good idea for the reasons I shared with Wine and Spirits Daily,

“It’s a terrific idea and well worth trying,” long-time industry exec Arthur Shapiro told WSD. ” First, the blended scotch market is declining and this could be a shot in the arm. Second, the flavored whiskey (US) brands have ‘greased the skids’ so consumer acceptance would be easier than it might have been before these brands came on the market. Third, it adds contemporariness to the scotch area and removes the stuffiness. Fourth, probably makes for a good mixed drink. Finally, I like the ‘seriousness’ of scotch and the fun of a flavored scotch product.”

Put that in your copper still and cook it.

You gotta be kidding me

Pernod Ricard, who until recently earned my respect for terrific innovations and new products, has launched what seems to be an April Fool’s joke.

They are introducing a line of new products under the Hiram Walker name called Mama Walker’s breakfast liqueurs. Apparently it’s intended to “tap into the comfort food, sweet and savory flavor combinations” trend (or is it fad?) not to mention the confectionary/cake vodka flavors. This breakfast of champions is available in Maple Bacon, Blueberry Pancake and Glazed Donut.

Come on folks, are you serious? Next thing you’re going to tell us is that they hardly taste artificial.

Can’t you just see the ad campaign?

“A bit hung over from a hard night of drinking? Looking for something to smooth out the rough edges? Forget about the all night diner and the bacon, eggs and pancake special. Try some of Mama Walker’s breakfast liqueurs… we’ll perk you right up with our original comfort booze. Just remember… your Mama knows best.”

Or:

“Tired of the same old breakfast? Cereal, eggs or fruit can be soooo boring… Start you day off right with Mama Walker’s breakfast liqueurs. What a great way to face the stress of what awaits you. Boss on your back? Kids on your nerves? Mama can help…Comes with or without a brown paper bag… But, remember, don’t eat breakfast and drive!”

Any thoughts on either product?

Anyone who has been in the booze business knows that it’s the men and women behind the bar who build brands, invent drinks and are the backbone of the business. Let’s face it; it wasn’t a suit that created the Cosmo or any other top drink, it was a barkeep.

I first met Ray back in the day at Seagram when everyone talked about the fuzzy navel and credited him with coming up with the idea. More importantly, of all the publishers and sales reps who called on me, he was among the very few who understood the business and was a key to the important on-premise trade.

In the intervening years, he has continued to reach over 100,000 bartenders in Bartender Magazine and hundreds of thousands on Bartender.com. Along with his wife Jaclyn, they’ve been running the magazine for over 30 years. Together they’ve created the Bartender Hall of Fame and run a foundation to provide scholarships for bartenders and their children.

Ray has written dozens of books, including Bartending for Dummies. A perfect title for an outspoken, take-no-prisoners, ex-Marine who hates BS and some of the changes he sees in the bartender profession. But, I’ll let you in on a secret – deep down he’s a kind and gentle man who speaks his mind but carries no malice.

Let’s take the phrase ‘mixologist’ for instance. Here’s a quote I found in New Jersey (where the Foleys reside) Magazine, “A mixologist is a person who really doesn’t know how to tend bar but has the money to get a PR agent.” He told me pretty much the same thing when I interviewed him for this posting but went on to say that he really has no argument with the phrase and much respect for the serious mixologists. But, it’s those who are all ego and no skill, that get his Irish up. So if you call yourself “The Bar Guru” or “Mr. Mojito” stay out of his way.

Ray comes from the school where a good bartender is partly a person who serves drinks and mainly a person who does so with personality and customer service.

When I was running new products and we needed a signature or other drink to make the brand take hold, I learned two important things from Ray. The first was to let the drink idea come organically from behind the bar – the bartender or (forgive me, Ray) the mixologist. In other words, let the professionals do it and keep the marketing suits out of the kitchen.

The second was, in order for a drink recipe to take hold, keep it simple. According to Ray, “Creating a drink with avocado juice and lemongrass doesn’t impress me…how many bars have those ingredients?”

Of all the thousands of people who read Booze Business, I generally think about Ray when I do a posting. He never hesitates to let me know what he thinks and generally, the emails from Ray have been helpful and positive.

Except when I use the dreaded ‘mixologist’ word.

What about cognac vs. brandy? Simple — all cognac is brandy. But, not all brandy is cognac. Brandy can only be labeled as cognac if it is produced in the designated growing areas in the Charentes region of France. To me, the cognac appellation means that the product has heritage, provenance and a unique production process behind it.

Okay, how about Tequila? All Tequilas are Mezcals, but not all Mezcals are Tequilas. Tequila must be made from at least 51% Blue Agave and come from the tequila region of Mexico. Anything less, or outside of the tequila region is known as a Mezcal.

Which brings me to Champagne vs. sparkling wine.

Robert Klara from Adweek interviewed me last month about an ad from the Champagne Bureau USA. You can find the article here.

The champagne people, in an effort to recapture lost ground to such sparkling wine products as Prosecco, Cava, Moscato, Sekt and of course, California Sparkling Wine, have run an ad letting consumers know that only Champagne comes from France. Leaving aside the silliness of the ad’s execution, I believe they simply don’t get the consumer’s interest in bubbly wine regardless of the appellation.

They have reason to be concerned. Sparkling wine as a category outsells Champagne by more than 10 to 1, and has grown much faster over the last five years.

I’m a Prosecco fan. It’s bubbly, dry, pleasant tasting and fun. Is it a replacement for Champagne? Sometimes, but I’m also a Moët & Chandon fan. For me, the difference is mood, occasion and situation. While I might serve Prosecco at a party, only Champagne would meet the drink needs of a wedding. A sparkling wine would be great at a picnic but only Moët Vintage Champagne would be right for celebrating opening night for one of my plays (sigh, if only).

If the Champagne people want me to drink more of their bubbly and less Italian or California sparkling wine, they need to understand consumer needs and wants and align their product offerings accordingly.

After all, I’m not drinking ‘imitation’ Champagne; I’m drinking real Prosecco.

I first met Dale back in the day when he was tending bar at some great places, most notably the Rainbow Room. From that point on, he was at the forefront of what’s been described as the gourmet (or mixologist) approach toward cocktails, particularly the classics.

I suppose that’s why he’s known as King Cocktail, although I think of him as a booze business equivalent of Wolfgang Puck – a celebrity barman (but without an accent).

The man has a list of awards, including the James Beard Award for Wine & Spirits and has written a number of books about cocktails. But wait, there’s more – he’s a partner in the bar training program called Beverage Alcohol Resource (BAR, get it?) and founding president of The Museum of the American Cocktail. He also tours the country with a one-man show called “ON THE TOWN! A Tribute to Bars, Speaks, & Legendary Saloons.”

You’d think that would be enough to keep him busy, right? Wrong. Dale has recently launched his own brand of bitters called Dale DeGoff’s Pimento Aromatic Bitters. It’s designed to be very similar to Pimento Dram, an ingredient Dale often used, but is no longer available. He joined forces with Ted Breaux, of recent Absinthe fame, to produce it.

I think that before I go any further, we should talk about bitters and their use in cocktails. If you’re a booze maven, you probably know this but indulge me anyhow.

According to Wikipedia (my go to information resource), bitters is an alcohol beverage (DeGoff’s is 90 proof) flavored with a range of herbs and spices. He uses select botanicals and allspice, which is made from the pimento berry (not to be confused with the little red things stuffed in olives). Adding a little bit of bitters to cocktails and you won’t believe how it enhances the flavor and taste.

Check out these recipes from his website .

So, Mr. DeGoff jumps over the bar and joins the ranks of other bar personalities and companies making commercial bitters, including Gary Regan (Regan’s Orange Bitters No. 6), Angostura, Peychaud and others.

Welcome to the producer’s side of the bar, Dale.

Maker’s Mark is an iconic brand with fiercely loyal consumers and, thanks to social media, they’re not afraid to speak up (make that holler) when the company decided to mess with the brand.

Last week, the company announced that, to “meet demand” they would lower the alcohol content. They explained it to Wine and Spirits Daily by saying that the brand is encountering shortages and among the solutions (including lowering the age, raising the price) they chose lowering the proof from 90 to 84. The outcry among their consumers was deafening with “watered down” the rallying point.

This week they announced that the decision would be reversed.

Maker’s and Beam made a number of errors. First, their explanation of lowering the proof to meet demand was seen as BS, with industry cynics shouting that their real motive was taking the tax savings (approximately $1.5 million) to the bottom line. I don’t buy that. It’s not worth it for a million case brand to take the “goodness” out for a buck. They either should have had a better rationale or spent more time than they did talking to their consumers about the decision.

So, they made a PR mistake.

The brand sells about a million cases and has been growing by double digits for some time. It’s an iconic brand; of course it will grow steadily. Yet, the supply did not keep up with the demand.

So, they made a planning and investment mistake.

The “powers that be” didn’t realize that their fiercely loyal consumers would rebel and post anti-Maker’s comments all over social media. Come on folks, we’ve all seen this movie before – company blunders, consumers express outrage and, company backpedals. See, we have this new fangled thing called social media where consumers talk to each other en mass. They can build a brand or destroy it.

So, they made the mistake of under estimating consumers and the impact of social media.

What could they have done? A Forbes article reported by Buffalo Trace Newsletter put it succinctly. “Maker’s Mark could have used their looming shortage as an opportunity to make their brand stronger. If they encountered sporadic shortages for a period of years, they could raise prices and leverage the scarcity to take the brand up a notch in prestige.”

With all these mistakes, I applaud their quick and meaningful action to reverse the decision. They woke up quickly, smelled the coffee and took meaningful action. I think they positioned the reversal well enough to regain whatever ground they may have lost.

Ad Age reported today that the reversal drew over 15,000 likes and 2,400 comments, mostly positive. One fan said, “This is how a company should be run!! Love you guys even more now.”

No question but that this will blow over and be forgotten soon. The widespread exposure and the turning of a negative into a positive was achieved with the simple words — “You spoke. We listened. And we’re sincerely sorry we let you down.”

Lessons learned: Plan before you act and anticipate the downside of an effort. As David Ogilvy once said, “the consumer isn’t a moron…”