A Second Shot for Both Brands
“Diageo sells portfolio of brands to Sazerac,” read the headline of the press release. It went on to say that among the brands acquired were Seagram’s VO and VO Gold. I found this fascinating on a number of levels. First, you might say that these brands have seen better days and why would a company like Sazerac, with a full and lush portfolio, want these brands. On the other hand, Sazerac has done amazing things with brands they acquired from Seagram (think Eagle Rare and Fireball to name only two) so, a revival of the Seagram VO franchise would not be unusual or impossible.
It was under my watch at Seagram that VO’s decline accelerated and VO Gold was created. So, among others, I contacted John Hartrey and Art Peterson (both of whom you have met before on this blog) who played important roles with those brands, back in the day. I also spoke with Drew Mayville, who worked on the creation of VO Gold and was the 4th and last Master Blender at Seagram, and is now the Master Blender at Sazerac.
{By the way, as I write this, I’ve learned that Sazerac has introduced “Mister Sam” Whiskey — a Blend of Sazerac’s American and Canadian Whiskeys and a tribute to the Seagram founder, Sam Bronfman. The blend was created by Drew Mayville.}
The importance of VO to Seagram
Let’s start with the fact that the New York Stock Exchange symbol for Seagram was VO. That speaks volumes. Next, consider the fact that The Chairman (aka Edgar M. Bronfman) earned his stripes at the company working on VO.
It was always a great whiskey, a 6-year-old Canadian blend and the aspiration of Seagram 7 drinkers looking for more and, yes, better.
I recall, after taking over the position of U.S. marketing head, being summoned to a lunch with The Chairman in his private dining room. This was during the time that Edgar Jr was involved in Hollywood. I think, in retrospect, the purpose was to let me know that he was back in control and was in charge during this interregnum. Really? As though I didn’t know? All I recall from that lunch was that the butler asked me what I wanted to drink and I looked at him in amazement. With the exception of a special occasion, drinking at lunch was not for me. When I told him so, his look was beyond amazement as he said, “The Chairman generally has a VO before lunch… I’d suggest you do the same.”
Some believe that the term VO stood for “Very Own” and, according to the Master of Malt website, “It is said the blend was created after a post-prandial conversation (during or relating to the period after dinner or lunch) amongst the Seagram family; the letters “VO” might well stand for “very own”, as in, their very own blend…”
Art Peterson told me the following story about the family’s commitment to VO:
“When Edgar Senior and Charles (Bronfman) were running the Canadian operation, they learned that due to some production or maturation difficulties, the blenders were unable to match the character of the current VO production to the standard. So, Charles and Edgar made the decision to stop shipping the brand until they solved the problem. That meant that there were shortages in the marketplace, but they were determined that no shipments would be made until that problem was solved.” (Despite my griping about the owners, they were all about quality and doing the right product thing, no matter what.)
Most interesting to the VO story is the packaging, notably the ribbon on the bottle. I’ve been told that it was the racing colors of a Bronfman owned horse. More about that ribbon in a moment.
But tastes changed and the brand slipped
By the early 1990s, consumer liquor preferences had leaned to clear spirits in general and vodka in particular, so whiskies (with a few exceptions) suffered volume declines. At Seagram, Seagram 7 Crown was huge and a bar staple so its losses were manageable. At the other end, Crown Royal, whose appeal was to top shelf drinkers and strong regional support, actually grew in volume. In part, this was a result of an upmarket line extension — Crown Royal Special Reserve. Seagram VO was awash in red ink and, while it held its own against the archrival Canadian Club, you didn’t want to be the brand manager who presented the sales and marketing results when there was a Bronfman in the room. As in… “our sales are way down BUT, our market share is up.”
The central question became, “What to do about VO.”
Enter the Consultants
The owners of Seagram loved to bring in consulting companies such as McKinsey or Boston Consulting Group — you know, highly paid outsiders who basically ask for your watch so they can tell you what time it is. I couldn’t help but wonder why they chose to go around the company’s employees. I often felt they thought, how smart can our people be, they chose to work for us didn’t they?
Among other things the consultant contribution to the brand was to “take the goodness away,” by eliminating what they saw as ‘unnecessary’ packaging elements. You know… what we in marketing and sales call “brand personality elements.” Among the cost saving victims was the VO ribbon.
The Answer…
…came from the toilers in the company, not the consultants. In so doing, we broke what classic marketers call the rule of line extensions — don’t line extend from a weak brand. Nonsense.
There were many reasons why an upmarket VO line extension made sense, including increased margin, additional VO facings in stores, a new face in the brand’s franchise and lineup, and more. And, the success of Crown Royal Special Reserve, gave us the impetus to try that tactic on VO. What did we have to lose?
So, VO Gold was born and, with the thumbing of our noses at the consultants, we put all the goodness in packaging back into VO Gold. Including the ribbon.
But the strength of the brand came from the blenders and the marketers. Here’s how Art Peterson described what happened with the product formulation:
“Drew Mayville was part of the team and in on the creation of the brand. What happened was that VO Gold was just an idea. We knew it had to be some kind of a premium VO, but true to VO characters. We started by discussing, ‘What could we do to improve VO?’ Well, one idea, of course, is you can use older whiskeys. We decided that we would focus on eight-year-old whiskeys. And then, ‘What can we do to VO to make it different but still recognizably VO?’ We decided to go with a whiskey that would be brighter. Also, some of the characteristics in VO that we liked were the fruity characteristics, and that came from having certain yeasts that we used in our rye whiskeys in the VO blend.”
The proof of the blenders’ success came in a letter to Art from Charles Bronfman:
“I have tasted VO Gold and it’s just fabulous!!! Best damn VO I have ever tasted, and as you know, I have tasted an awful lot of VO over the years. Nice going, my friend.”
What I especially enjoyed about Seagram was the team spirit and, in this case, how marketing worked hand in hand with the blenders and production to bring this brand to life.
Led by John Hartrey, the marketing folks came up with a totally unique idea; never done before but used by others afterward. They ran a program that centered on “meet the blender.”
What they did was communicate, through advertising and point of sale, a series of dinners in five different markets. It was a contest whereby “you and 20 of your friends” could win a dinner with Art Peterson, followed by an expert tasting with him. It was a huge success and VO Gold was on its way.
About that ribbon
John reminded me of a great story about the VO ribbon. It was removed because it required special equipment and was expensive to produce. Little did the geniuses at the consulting firm (or many of us) know that it played a role in the Viet Nam war. According to John:
“When we removed the ribbon, we got a letter from a Vietnam Vet asking why the ribbon was removed. He told us that during the war, the VO ribbon was referred to as a “short timers’ ribbon”. The idea was that when someone had a short time left on their tour (probably 30 days), he put the ribbon on his uniform so that everyone knew to protect him and get him home.”
The story was corroborated here.
# # #
Seagram’s VO and VO Gold now have a second shot at success. The best part is that one of the blenders who worked on the original products, Drew Mayville, is the current Master Blender for the new owners (Sazerac) of the brand.
Drew used a great expression when we spoke that really resonated with me, “A lot of companies want to meet consumer expectations. At Sazerac, we strive to delight the consumer.”
I can’t wait for it to come on the market.
Thank you John, Art and Drew for taking the time to talk with me about this.
43 comments
Ah, interesting post! VO was a staple in my home in the 70s through 90s; my dad swore by it. When Canadian Club burst forth with the ‘Damn Right Your Dad Drank It’ campaign in roughly 2009 I was envious VO had not done that work. As an observer from the agency side, I’ve watched brown (or otherwise complex vs. white) spirits ebb and flow with a mood for masculinity or sometimes in response to challenging times (as vodka seemed to screech to a halt in 2008). It is unclear how any brand these days can convey premium without being ‘artisanal’ — though it would certainly be refreshing. Crown Royal has enjoyed the most rabid group of adorers one could imagine, and seemed to be able to be aspirational to folks that were not necessarily interested in bottle service at a club. How will VO get there? I don’t know but I will enjoy watching 🙂
Great story keep them coming! Always wondered what happened to VO
Thanks.
Thanks Jennifer. And, thanks for reading the blog.
Diageo focused on Crown Royal after purchasing the Seagram brands and degraded VO by putting it in a clear bottle (in Canada) and reducing the quality of the blend. It was Mr. Sam’s favourite. Best wishes to Sazerac
Thanks Gene. And, thanks for reading the blog.
Just for the record, leading the Fireball development team in Canada we quickly discovered that the Fireball flavour system tasted best with…. you guessed it…. a 6 year old VO part blend. It was launched using this VO Whisky component as its base. I firmly believe the quality Whisky base enabled some early wins in the Canadian market with both seasoned Canadian Whisky drinkers and the Shooter crowd. VO even when deconstructed tasted great !
Interesting story. As a long time Seagram’s drinker, I’ve always liked Crown Royal best, 7 next, and VO last. I recently bought my first bottle of VO in many years, and I love it! I will be using the rebate to stock up…
My only drink of choice is V.O. neat. I’ve never swayed, always have a bottle on my bar for guests. At the holidays I fill ornaments with screw tops and hang them on my “bar tree” for my friends to enjoy at their leisure.
I do miss the the ribbon on the bottles because I used to save them up to top of each ornament and hang them on the tree, always a nice finishing touch.
Thanks Victoria. Glad you’re a reader of my blog.
A number of years ago I was a rabid drinker of Canadian Club until they changed the label and more importantly the taste. After years of trial and error taste testing I found VO Gold to be a great replacement. My complaint is the relative scarcity here in Northwest Indiana.
I think this will change in the future
It is Mar 2020. Covid-19 has taken over the world. A Seagrams VO, still sealed from 1979 caught our attention. Just had the best swig together. Yes our VO,very own time in isolation.
Love it.
Hello! Would someone please help me to distinguish between these two whisky products: Seagram’s V.O. and Seagram’s 7.
Interestingly enough, Seagrams VO was originally a 13-year whiskey with a very different bottle design. I think the design changed in the 1930’s and the age had already dropped to 6 years. I have two bottles of the 13-yr dated 1922, and given Canadian tax strips they were bottled in 1935. I read that the brand was launched in 1913.
Kathleen, Seagrams 7 is/was made from American whiskey unlike VO’s Canadian heritage and is blended with GNS (Grain Neutral Spirits, i.e. vodka). To my knowledge it’s never been a premium product, while VO was definitely marketed that way in the past.
You’re definitely right.
Not only in Vietnam. In a small base in Sinop, Turkey, we became short timers when we had 69 days left on “the hill”. We would go with our buddies to the NCO Club, and the short-timer would drink the entire fifth of VO, then wind the ribbon around his watch band.
Thanks for sharing this story Jim. And thanks for reading my blog. All the best in 2021!
I sold Seagrams products for over 35 years. Great company to work for. Seagrams V.O. was always the top of my list to drink on a night out. V.O. Manhattan first with dinner and then a V.O. Stinger after dinner. It was amazing how many customers followed my drinking example If you never tried a V.O. STINGER you will love the taste and the flavor. GOOOO V.O.
Thanks for sharing this Michael. And thanks for reading the blog.
Arthur, thanks for that great story. I am sitting here watching golf at “happy hour” and just poured a double of VO with a mixer. As far as whiskey drinking goes, I tend to sip bourbon or Midleton.
However, some years ago, I went to the ceremonial closing of my barber shop of over 45 years. My barbers (two brothers; a Marine and playboy) were in my childhood neighborhood, and although my dad got his frequent haircuts there, my mom prohibited me from going. It was not a place for boys; it was for men.
Anyway, in the 1970s they began cutting my long hair the way I wanted it, not my dad’s idea of a haircut. They knew that, because they were between our ages they would have me as a customer long after my dad would not need a barber.
Once I became a regular, I was invited to their Christmas parties, which became much more subdued as they got older (at one of the first I attended, there was a priest — collar and all– in a crap game in the corner).
The reason I tell this convoluted tale is because when they closed, the surviving brother gave me a bottle of VO from their bar. It has been gathering dust until I read your story. Thanks to you and my late barbers, I am enjoying my first glass.
Tom, what great story. Thanks so much for this.And, thanks especially for reading my blog. Cheers!
My father also liked his V.O. I still have a bottle of his, unopened from 1961 with the box it came in. My question is, is this whiskey good to drink, and does it have any value
Sorry for the late reply. The whiskey will be okay. As to the value, I have no idea. You might want to check with eBay or some other online vendor.
The last thing my father requested as it turns out on his deathbed was a shot of VO over ice when I came back in the evening.
Wow. Quite a story.Thanks for sharing and thanks for reading my blog. Arthur
I have been enjoying VO since 1979. The casinos I go to only serve Crown Royal. I prefer VO. I drink all whiskey on the rocks. Please do not change VO for the next 25 years. I don’t think I will make it to 100 but I want to enjoy VO till then.
I share your love of VO. Stay with it and thanks for reading my blog.
My late father-in-law introduced me to VO in 1971; I have been enjoying it ever since.
Excellent. thanks for the feedback.
I have an unopened bottle of VO that has a Canada Excise tax label dated 1959. Are there many of those still around?
I’m not sure. I kind of doubt it. You might check on eBay. Thanks for reading.
I found a bottle of VO in an estate wine cellar and have been drinking it on the rocks for the last week or so. It’s so tasty I started reading about VO online, and that’s when I realized the bottle is probably from the 90s. Long story short, I bought a new bottle of VO to compare and it’s sadly nowhere near as good. I thought it might be due to the age difference, but the new bottle has has also lost its age statement in addition to the ribbon. It’s sad when companies cut costs in response to the decline of a brand.
I would try VO gold, but it doesn’t seem to exist in California.
You’re right — as a brand loses its consumers, there often is a move toward cost cutting which causes more consumers to abandon the brand and so a vicious cycle begins.
In the VO case, the brand also was sold and the priorities shift to less focus.
Here’s the good news, VO is now owned by Sazarac and I expect a total change in the focus on the brand.
Thanks for reading the blog.
Louisiana has always had an ample supply of VO for my husband to buy, however; in recent months it has been difficult to find. Most of our grocery stores are out. I don’t know if Hurricane Ida had anything to do with the short supply, but we have never had this problem before. Is there some reason for this particular shortage in my area?
I don’t know for sure but perhaps because VO has changed owners that might have something to do with it. I would talk to the store managers and ask them to order it. The other thing might be to write the company. here’s the website
https://www.sazerac.com/our-brands/sazerac-brands/seagrams.html
Thanks for reading the blog!
Back in Vietnam 1970, we couldn’t wait to get our bottle of VOmand proudly wear the shortimers ribbon. Wish they would bring it back.
I agree with you. It started in Korea and was used in Nam. Probably removed to save money. Not a smart move.
Very late to this VO party, but glad I arrived. I started drinking it in 1980. My bartender friend suggested I learn to drink “neat” or on the rocks, rather than “call” for a brand and mixer … cuz unethical bartenders might sub a well whiskey and charge me for premium. (He would know.)
I thought the bottle with the ribbon was the grooviest, so tried it on the rocks. Bingo! Until VO disappeared. Never enjoyed VO Gold, but went up to the purple bagged Crown Royal.
Here’s why I landed on your blog: I was watching Feast of the Seven Fishes (Netflix). It takes place in 1983. One of the Italian brothers asks for VO, and when another brother brings a bottle, there’s NO ribbon! It’s the only inconsistency in an otherwise perfect 1983 movie set. I know; those were the glorious ribboned VO days!
Great story. Thanks for sharing. The absence of the ribbon was a (foolish) mistake brought about by people without vision.
Was just gifted a bottle labeled 1959. Thanks for the read!
That’s a rare bottle. Enjoy! Thnaks for reading the blog.