You produce great brands and are the sales and profit leader in the alcohol industry. According to press reports, you are about to acquire a large stake in Cuervo, which will be important to your future. Your global strategy of acquisition and growth in developing countries is second to none.

You are indeed the Emperor of the Booze World.

So, how come your senior management skills run from arrogant to stupid? Do you hire them that way or are they a product of a unique management development program?

Last week, at an industry event that you sponsored, the British Innkeepers Institute awards dinner, one of your executives created a hailstorm of criticism. It is hard to imagine a senior executive threatening to withdraw future sponsorship unless the award recipient (“feisty and independent brewer BrewDog”) was stripped of the title. As reported by Buffalo Trace Newsletter on May 9^th:

Independent Scottish brewer BrewDog, claimed that the drinks giant Diageo had brought undue pressure to bear on the organizers of the event to override the decision of the judges to give them an award, allegedly stating that ‘under no circumstances could BrewDog be allowed to win’.

What was that executive thinking? Not only was the action inappropriate but also that genius managed to provide sufficient fodder for a social media barrage that will last for some time.

Is arrogance a major component of your corporate DNA?

It wouldn’t surprise me. As I recall from my limited exposure to the company, you have your own language that is accompanied by a cult-like obedience to it. Are you still using such expressions as DWBB, Diageo Way of Building Brands, pronounced “dweeb?” Or, TCUT (Target Consumer Understanding Tool)?

Oh, and whose idea was it to be a funder of the Heartland Institute, the folks whose main raison d’être is to deny global warming. Good for you, you pulled your support recently. But, only after learning that the group was engaged in an ad campaign comparing people concerned about climate change to mass murderers and terrorists.

I have met many extraordinary people at Diageo over the years but have observed that sooner or later their talent and creativity is forced to give way to groupthink and an unhealthy dose of self-importance. That’s probably why the gifted players have moved to other companies in the industry.

Listen Diageo; you’re a leader in the industry. You should consider acting that way by setting the pace and tone for the business, not by flexing your muscles and pushing fingers in people’s chests.

Despite my opinions, Imperial Diageo continues to grow – in the marketplace and in the stock market. So, what do I know?

But, each time I read about your missteps and foibles, I can’t help but be reminded of the story “The Emperor’s New Clothes.”

Next: A closer look at Diageo “new” products.

By the time I got to Seagram, Boodles British Gin was an idea whose time never came.  As the saying goes, “She was dead when I got there, Officer.”

The brand was developed in the 1950s or 60s under a license from the Boodles Club in London, founded in 1762 by the Earl of Shelburne, later the Marquess of Lansdowne and Prime Minister. The club, which is 250 years old this year, was named after its headwaiter, Edward Boodle.

Get this — the licensing fee was the gin; use of the name in exchange for free goods.

To say that the brand languished at Seagram is an understatement. The fact is, while some gin aficionados felt it was a great tasting gin, Boodles spent many years in and out of the Seagram hospice companies. The problems – real or perceived – included concerns about the square package (too wide for a back bar) and loss of identity when placed sideways. The “oodles” of Boodles taunt by some consumers added to the death rattle, particularly in light of the awful marketing on behalf of the brand.

The coup de grace for Boodles was the price footballing by the different company divisions. At General Wine & Spirits, it was priced at the Beefeater/Tanqueray level. At Summit (the hospice) the brand was value priced, a euphemism for cheap. By the time the company reorganized and the brand was given a new lease on life, the trade resistance and annoyance to the pricing history was too hard to overcome.

So Boodles, great tasting gin notwithstanding, ended its days at Seagram in no-man’s land.

Boodles...then

Now…

I learned recently that Boodles has been acquired by Proximo Spirits, makers of 1800 Tequila, 3 Olives, Hangar 1 Vodka, Kraken Black Spiced Rum and many other up and coming brands.

To me, that changes Boodles’ future.

For one thing, the gentlemen running Proximo, Mark Teasdale and Elwyn Gladstone are, in my view, top of the game marketers and brand builders with a proven track record. While at William Grant & Sons, they were the creators of Sailor Jerry and, guess what, Hendrick’s Gin. They know how to build gin brands.

From the prototype packaging I’ve seen so far, they have kept the Boodles look and feel but updated it, introduced premium cues and cleaned up the packaging weak spots like the cap. They have already dealt with the branding issue by embossing the name Boodles on the sides of the package.

The real challenge will be the marketing – overcoming the trade’s negative memories, leveraging the Boodle’s name and positioning the brand as a world-class gin.

If anyone can do it, these guys can.

New Boodles packaging

Just another start up, you say. That’s right, but unlike most, these guys have the street smarts and entrepreneurial drive to break away from the pack and become real winners. For those of you who doubt it, as we used to say in Brooklyn, “Wanna bet?”

What they have in common with the other micro distilleries, microbrewers and the like is a presence in a part of New York City that’s conducive to new ventures and the sense to avail themselves of the state’s tax and fee incentives.

But Jack From Brooklyn has way more going for it.

Let’s start with the product. Unlike all the others, they are not producing an artisanal vodka or whiskey. Their product is a brand called Sorel and it’s a liqueur/vodka specialty. In a review in Wine Enthusiast, it was referred to it as, “A hibiscus-spiked liqueur that evokes Caribbean spice and sunshine.”

Here’s how JFB describes Sorel:

The natives of the Caribbean islands have long known the hibiscus plant to be a potent spice. Renown for its curative properties…they would ferment its flowers, and serve on festive occasions. Each island enjoyed slight differences in their recipes, relative to their indigenous horticulture.

It is with great respect for its traditional heritage we present a modern twist on an exotic classic:

The brightness of Brazilian clove. The warmth of Indonesian cassia. The heat of Nigerian ginger. The woody bottom of Indonesian nutmeg. The full, aromatic body of Moroccan hibiscus. Pure cane sugar.  The finest 100% organic NY grain alcohol.

I think it tastes great, both as an aperitif and in a cocktail.

The other interesting aspect of their venture is the smart way they have approached marketing and distribution. In New York, a supplier can get a wholesalers’ license for their own brand. So, instead of being one of a bazillion brands in a salesperson’s book, they are masters of their own fate. And, hooking up with a delivery company, they are freed up to do the marketing and selling without running all over the city. Told you they were smart.

Here’s the thing. I’ve asked the JFB folks if I can “follow” them and report about their venture on a periodic basis. What I have in mind is a reality TV show via my blog. They have agreed, so stay tuned for more about the Jack From Brooklyn journey.

Apparently, it’s quite common for winemakers to produce cannabis cuvées with bold reds such as Cabernet and Syrah.  The recipe is a pound of marijuana dropped into a cask of wine, which yields about 1.5 grams of weed per bottle. The article quotes the president of the Napa Valley Marijuana Growers who says the combination of alcohol and marijuana produces “an interesting little buzz.” “People love wine,” he goes on the say, “and they love weed.”

I think there are a number of good reasons for marijuana infused wine to be more readily available.

First, the restaurant industry will benefit as the amount of food consumed increases, particularly desserts. Second, the wine maven reviews will become more interesting and more fun. As in, “This unpretentious wine, with earthy notes, may have a skunky aroma but pairs exceptionally well with brownies.”

Let’s also not forget the great naming opportunities that will result such as Sensimilia Syrah or Ganja Valley Vineyards or even Good S**t Wines.

Mixing alcohol with marijuana reminds me of a Seagram story. While working in new products, the team came up with the idea of a flavored tequila called Coyote (see July 18, 2011 posting). The flavor was hot peppers and well, it was awful. Great name, undrinkable product.

My office at the time was down the corridor from The Glenlivet Tavern, a company run dining room where executives could have breakfast. On the few occasions when I stopped by I would always get into trouble. This one thought the market research was wrong, that one thought we needed to be more aggressive in new products. In short, it was a place to avoid.

I slipped up one day and went in to get a cup of coffee to take back to my desk and ran into one of the owners. He had heard about Coyote’s development and suggested that we consider adding the aroma of cannabis to the product. He thought it would enhance the macho and bad boy aura. I kind of liked the idea but realized that it couldn’t happen. I recall thinking, “No way the TTB approves the liquid. It’s a waste of time.”

I told him that we would think about it and explore the possibilities. We then totally ignored the idea. He never asked about it again.

So to all the wine-pot makers out there, I have some experience in this “emerging” category and will happily share my marketing plans.

As a public service to my blog readers, I have found just a few of the more interesting, and yes, wacky recent occurrences.

The Vodka for the Rich

Stoli is introducing a $3,000 a bottle of vodka from the Himalayan Edition of Stolichnaya’s Pristine Water Series. Only 300 bottles will be sold globally. Apparently what makes it so expensive is the type of water used, sourced from the Himalayan mountains, from an underground reservoir that has been pooling fresh melted snow. The water is then combined with 100% winter wheat harvested from Russia’s Tambov region. As an added bonus, it comes in a hand-blown glass bottle with a gold-plated decorative ice pick – perfect for your spouse to stick in your brain when he/she sees the credit card bill.

Not to be outdone, there is a company I believe is based in Hong Kong, selling (or about to launch) Royal Dragon vodka from Russia. There are three editions, but the Emperor Vodka will be made from rye and only 888 bottles will be sold.

From their website:

This masterly hand blown Dragon caged within a pristine glass bottle is crowned with an exquisite high-end piece of jewelry. The exclusive Dragon pendant of 18-carat gold is set with perfectly shaped certified diamonds.

“Honey, I bought you some jewelry for your birthday.”

Bad Taste Department aka “What are they thinking?”

A vodka company is planning to sponsor a party promoting a book, which discusses the experiences of two tennis stars that survived the sinking of the Titanic. The brand? Iceberg Vodka. On their website they say, “In 1912 the ‘unsinkable’ Titanic found that out all too tragically, we do not take our Icebergs lightly.” This weekend (April 15, 2012), marks the 100th anniversary of the sinking of the Titanic.

In Kazakhstan, a vodka branded with the Arabic word Allah has caused uproar in the predominantly Muslim country. The Imams in the country are outraged and rightfully so. A representative of the company that produces the vodka denied intentional blasphemy, insisting the labels and caps are manufactured in Russia. Sure, blame the Russians.

Finally in this category, we come to Van Gogh’s Peanut Butter and Jelly Vodka. Enough said.

New Uses for Vodka

You may have seen something like it before, but a website called Business Insider had a posting called Awesome Ways To Use Cheap Vodka Around The House. My favorites: getting rid of mold; air freshener when mixed with water and sprayed; preventing flowers from wilting (and making them happier); polish and shine (as a replacement for window cleaners). The best: treat dandruff by mixing one cup vodka with two teaspoons crushed rosemary, then strain the mixture through a coffee cup filter and let it sit for two days before applying it to your head and letting the solution dry.

The key is to use inexpensive vodka, unless you can afford a $3,000 bottle of Stoli.

By the way, does the Stoli come with someone to serve the vodka?

While TV advertising for spirits has become widespread, it came about through the leadership of Seagram, but not without some ups and downs along the way.

The article is available on this blog with the permission of Bishan Kumar the publisher of Spiritz. To read it, simply click on the words, “Spirits Ads on TV” at the top of the column on the right.

If you are getting this posting via email, please go to the actual site here and follow the instructions as above.

I hope you enjoy it.

Post Script: Not mentioned by name in the article geared toward Indian readers and for those of you who remember the events, there were two key players in this story. Phil Boeck (now with Republic NDC and then with Block Distributing) was the wholesaler who helped us get the initial ad on TV. T. Frank Smith Jr., station owner of KRIS-TV Channel 6 (NBC Affiliate) in Corpus Christie, Texas was the brave man who unhesitatingly took our ad. 

Georgia is a sovereign state (ex-Soviet Union) in the Caucus mountain region on the border between Europe and Asia. It seems that they have been pushing hard to attract tourists to the city of Batumi, an up and coming party town on the Black Sea coast. Past attraction efforts have included wedding cake buildings, Dubai-style glass towers and an upcoming aerial tramway. The new venture is a fountain that dispenses local booze.

The Mayor of Batumi (who I picture sounding like Borat) had this to say about it, “Once a week, for 10 to 15 minutes, Chacha will flow from this fountain instead of water. Tourists will have an opportunity to taste the traditional drink.”

In case you didn’t know (I sure did not) Chacha is a clear strong liquor made from grape using the pomace — grape residue after making wine — or what I like to think of as seeds and stems. In other words it’s like Grappa.

My research on Chacha revealed that it is a term used in Georgia to refer to any type of moonshine made of fruit, although it mainly refers to grape distillate. But here’s the best part – many Georgians claim it has medicinal properties. Among other things it’s said to help remedy “ear blockages” and indigestion. Also, Chacha is supposedly a cure for stomachaches by “applying to the abdomen.” I’m not sure if that works best before or after drinking the booze.

Let’s get back to the fountain. It will be part of a minaret-like tower that will also house an observation deck and a pool, which unfortunately will not be filled with Chacha. At least, not for now.

I wonder how tourists will drink from this fountain? Do you bring a cup or do you buy one at the site? Can you just stick your head under the flowing Chacha? Is there a time limit per person or can you drink for 10 to 15 minutes?

Above all, as a marketer, I wonder why countries don’t understand the concept of branding. Georgia is a brand whose equities can be marketed in a number of different ways to increase tourism but also overall economic development. A fountain of booze is a tactic not a strategy.

But, then again, I read that Georgia has cancelled visa requirements for Russian citizens and expects an influx of tourists from that country. Booze from a fountain may cause a friendly invasion.

Here’s the building that will house the fountain.

 I picture the actual fountain as one of these:

For instance, people in the 1960s drank Canadian Whisky, Blended Scotch and Vodka began its ascent. In fact, Gin was already passé and in 1967, vodka sales surpassed it, no doubt with an assist from James Bond.

So far as vodka vs. whiskey was concerned, here is a memo from the late 1960s reportedly from J. Walter Thompson senior management. JWT was arguably the leading ad agency at the time…

“To all employees: If you must drink during lunch, please drink whiskey. It is much better for our clients to know that you are drunk rather than think you are stupid.”

The obvious stupidity of this ad is only the beginning of this tale. Why would an advertiser want to associate their brand with an image showing sexual assault? Especially, an alcohol product. What were they thinking?

The question becomes, who authorized the ad and who decided it should appear on Facebook and Twitter?

The agency of record is Arnell, and their CEO told Ad Age, “We are their agency…but we did not do that ad.” I firmly believe that Arnell did not produce the ad, which raises another question; you have an agency of record and you go around them and produce, what, a rogue ad? An insane rogue ad?

So, our eyes turn toward Belvedere management for an explanation. Right after the s**t storm of protest, the ad was pulled from both social media sites and this lame explanation/apology was issued by the company.

“We sincerely apologize to any of our fans who were offended by our recent post and related comments. As always, we continue to be an advocate of safe and responsible drinking.”

That ridiculous comment got people even angrier and made things worse, because many felt it didn’t address what they believed was the reference to rape.

The company later released another apology.

From the Daily News:

“The post is absolutely inconsistent with our values and beliefs and in addition to removing the offensive post we are committed to make sure that something like this doesn’t happen again,” Jason Lundy, the company’s senior vice president of global marketing, wrote on its Facebook page.

The company’s president, Charles Gibbs, added later that they were making a donation to an American anti-sexual violence organization, RAINN.

“It should never have happened. I am currently investigating the matter to determine how this happened and to be sure it never does so again,” Gibbs wrote. “The content is contrary to our values and we deeply regret this lapse.”

I’m left with a number of questions and partial answers.

Who authorized the production and running of the ad? Was it you, Mr. Lundy? If not, does Belvedere often run ads you do not authorize? I suspect you thought it was clever. Or, your marketing department is out of control.

Mr. Gibbs, you are investigating how this happened? You’re joking, right? Although it’s nice of you to make a donation to RAINN (Rape, Abuse & Incest National Network), had you ever heard of it before the PR people told you to buy your way out of a jam?

I may never get answers to these questions but I’m beginning to understand why a great brand like Belvedere isn’t doing better in the marketplace.

Ever see one of these before? Ever use one?

According to data I found online, in an August 2011 poll, almost 60% say they are NOT familiar with QR codes. QR stands for quick response.

Here is how it works…you’re walking down the street and you see a bus shelter or other outdoor medium. Off in the corner is one of these doohickeys. Or, maybe you’ve seen them on a print ad or business card or, even, an envelope.

In any event, if you have a camera and QR Reader on your smart phone (the reader is a free app) you click on the reader and hold it over the QR Code until – presto – it takes you to wherever the person who created it, wants you to go. That’s usually a website but I’ve seen it used to provide contact information on business cards for ease of access.

For the booze business I like it mainly for wine. If I try a new wine and want to remember it, I either need to photograph the label, write down the name (do you always have a pen with you?) or try to remember (which depends on how much wine was consumed). The QR Code is quick, easy and provides the opportunity to learn more about the wine via a website link.

QR Codes are used for advertising, special offers and discounts and a host of other stuff that a marketer wants to communicate in detail. While their use doesn’t change the world of marketing or advertising, they are convenient adjuncts providing more information easily. But naturally, some ad folks get carried away and think that the convenience is the message.

Look at this use – do they really think people are going to stop, wait and aim their phone cameras into the sky?

Oh, and let’s not forget t-shirts.

By the way, if you haven’t already done so, hold your phone up to the code at the top. Guess who?