It definitely is not the advertising

I found Megan’s article on Constellation Brands in yesterday’s issue of Wine and Spirits Daily to be particularly interesting.

Here’s an excerpt:

Constellation may be one of the world’s largest wine companies, but its spirits brands had a phenomenal year.  Total spirits organic net sales grew 19% for the year, led by a 38% gain for its star Svedka vodka.  Svedka also recently launched it’s first-ever television advertising campaign “which marks an exciting milestone and serves as another example of how Svedka is setting itself apart in its quest to bring future fun to vodka lovers everywhere.”

The quote is from Constellation Chief Rob Sands who, in my opinion, is among the best executives in the business. Smart, knowledgeable and effective. But, obviously not an advertising maven.

Maybe it’s just me that thinks the ad campaign is ridiculous. It features a well-endowed, sexy, female robot (fembot) supposedly symbolizing the brand’s future achievements. If the marketing folks are looking to be more than a price driven brand and want to add image — keep looking.

Oh, and check out the TV campaign. I’m the guy who was there when Seagram and the industry decided to end the voluntary ban on broadcast advertising. This ad makes me think we made a mistake.

Svedka is a great brand built on hard work and smart marketing…excellent imported Vodka with high quality at a very competitive price. I’ve even been known to buy a 1.75L every now and then.

But its growth is not a function of the advertising. Its growth continues in spite of it.

Maybe mainstream advertising is not as important for brand building as it once was.

Just sayin’…

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Rookies, Amateurs and Tito’s

I saw this in Wine and Spirits Daily yesterday…

TITO’S HANDMADE VODKA, a Texas distiller, pleaded no contest to polluting an Austin, TX creek with production waste. Fifth Generation Inc. entered its plea Friday and was ordered to pay a $50,000 fine. The maker of Tito’s Handmade Vodka must also pay a neighboring landowner $11,728 for property damages and $1,120 to the state for sampling analysis.

Listen, the appearance of impropriety is as bad as the impropriety itself.

Love your cheap caps, by the way.

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Captain Morgan and modern day Caribbean battles

The Captain is a fascinating brand. When I was first introduced to it, as a marketer I thought, “a cartoon character on a liquor bottle?” I soon learned that its strong following among consumers set an industry standard for growth. In fact, between the time a million case celebration was planned and held, the brand had grown to 3 million cases.

The story behind the brand and its double-digit growth for so many years make it a wonderful case study about the industry and new products. (I’ll get into it some other time.)

It shouldn’t come as a surprise, therefore, to learn that I’m closely following the “battle” over the current brand owner’s decision to move the production from Puerto Rico to the US Virgin Islands. Lots of “volleys” back and forth via press releases, lobbying, congressional involvement…in other words, quite a skirmish.

I’m not sure I get it all but as in most business issues, it’s about the money.

Without taking sides, and hopefully in a nonpartisan way, I have a few observations.

First, a friend and colleague who was instrumental in the birth and upbringing of the brand recently mentioned that in the beginning, Rums of Puerto Rico (the island’s marketing arm) wouldn’t recognize Captain Morgan as a “legitimate” Rum. It wasn’t until the brand started to grow significantly that it was able to share in the marketing support dollars. They’re now fighting to keep it in PR. Ironic isn’t it?

Second, I always thought that when you change distillery locations the product changes. That’s what the production folks in Scotland always told me. More recently, some production friends have said “no way; we can replicate any taste anywhere.” Say it isn’t so…I still believe in the tooth fairy.

Finally and most ironic, despite having facilities in Jamaica, Seagram first began producing Rum in Puerto Rico in the 1950’s to take advantage of the economic incentives that were offered.

What goes around comes around.

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