Follow up: The Captain Morgan Story

Things I overlooked

Booze Business is about to become five years old and throughout that time, no story or posting has elicited as much comment as last week. From emails to comments to the Booze Business Facebook Page to LinkedIn, the story has generated interest, memories and opinions.

Some of the feedback pointed out a few aspects that I missed. So, here are some additional elements to the story.

The People Behind the Brand

I referenced Alan Feldman and Sam Ellias, partly because of their role in launching the brand and partly because of the insights they provided when I interviewed them. But I didn’t set out to provide a list of all those who made it happen in the beginning. The story was about all the people at Calvert who defied the odds and overcame the negative expectation to make this brand happen.

If I had set out to provide awards or recognition, I certainly would have mentioned Marty Bart and Shelly Katz who ran the company and its sales team. For that matter, I should have mentioned, by name, all the people who worked long and hard in bars and stores. But this was about people collectively rising to an event.

The Legal Aspect

Before Captain Morgan came along the designation for such products by the BATF (the regulatory body at the time) required that if a brand was not “Rum” it had to be designated “Rum Liqueur” or “Flavored Rum.” The development team insisted that the legal folks push the BATF with the “Spiced” designation and to everyone’s surprise it went through. That designation, “Captain Morgan Original Spiced Rum”, meant that the flavor description could be used …

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The Captain Morgan Story

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How a Seagram orphan brand became an icon

Despite the problems the brand has encountered in recent years, Captain Morgan Original Spiced Rum changed the spirits industry in a number of ways. It was the first brand that managed to put a dent in the rum category powerhouse by the strategic use of flavoring. Further, the brand pioneered the important role of flavors, a phenomenon we take for granted today.

But it didn’t start out that way.

In the early 1980s, the new products group at Seagram was charged with filling gaps in the company’s portfolio. At the time, spirits sales were languishing in general and, unlike more recent times, whiskies were on the decline. So the gaps to be filled were in the so-called white goods arena with rum at the top of the list. The brands already in the stable were either price driven (Ron Rico) or weak and on life support (Palo Viejo). Myers’s rum, the upmarket brand, was (and still is) a small volume brand, limited to special occasion usage. In addition, the product is outside the traditional white, light rum taste profile.

Enter a consultant

The new products group engaged Kahn Associates, headed by Bernie Kahn, a former creative director at Grey. Mr. Kahn’s claim to fame was the slogan, Choosy Mom’s Choose Jif, a slogan that propelled the brand to number one in peanut butter.

The key issue behind the assignment: How do you go up against an 800-pound gorilla like Bacardi, which had an overwhelming share of the rum category?

Consequently, it was clear to everyone that the only viable pathway was a “value added” proposition. Unless …

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Diageo Innovations

Why do large companies suck at new products?

I get this question all the time and the answers are really quite simple. At the top of the list, it’s easier to buy than build. Why invest the time and effort and divert attention from the existing portfolio just to dig a dry hole?

More important is the simple arithmetic throughout the food chain. “How am I going to make my bonus/meet management’s expectations/reach my sales quota – you fill in the rest – if I divert my attention to a start up brand?”

So, if you’re a major player, you have a number of options when it comes to new products and brands.

First, you can bite the bullet and say, as I did at the outset of this posting, why bother? Let someone else build it, I’ll make an offer they can’t refuse. Mainly Diageo, but also others, fit this mode.

If you’re aggressive and smart, chances are, you’re also attuned to the marketplace (consumers and trade) and know how to create demand or capitalize on an opportunity. Just look at White Rock, Proximo, Beam, Campari and others.…

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