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Whither Whisky?

November 6, 2011 1 Comment

I was meeting with my favorite, most knowledgeable wine and spirits guy the other day and we got to talking about the state of the whisk(e)y market. We decided that the world is changing for brown spirits except for the products from Scotland.

According to the Scotch Whisky Association, scotch grew in value and volume in the first half of 2011. But if you look closely at the data provided by Shanken News Daily, of the top brands, only Johnnie Walker and The Glenlivet showed growth.

When I look at other whiskies, I see real sustained growth. Jameson in particular, and the Irish whiskey category, in general, is on fire. I think it’s based on the imagery of the brand, the absence of the smoke/peat taste of blended scotch and, of course, its use in cocktails and as a shot.

Looking at American whiskies, the emergence of flavored products speaks to new users and new usage occasions. I think it will attract a new generation of consumers and contribute to growth in the long run.

To be fair, Scotch distillers have tried to innovate their products by increased aging and changes in barrel storage. While this may be of appeal to the current market, it is probably not likely to bring in a new cohort of drinkers. Although, what I like about Last Drop Distillers is that they have taken the age route to the ultimate with over-age products. Not just aged scotch and cognac but products that reflect category heritage.

If you go to an event or tasting involving scotch, you always see some distillers dressed in kilts. It’s like a metaphor for being trapped in a time warp and reluctance to contemporize the category.

However, two recent news reports show that there are people out there looking to take new approaches to scotch. Wine and Spirits Daily reported last week a company “will start selling single grain and blended Scotch whisky aged 3 years, in a can.” I’m not sure if it is aged in the can or aged then packaged in a can. But don’t worry; the can will be recyclable aluminum. That will attract new scotch users who are environmentally conscience.

Or how about this one: According to the Daily Mail via the Buffalo Trace Newsletter, a company has developed the world’s first “halal whisky” made without alcohol designed to appeal to non-alcohol drinking consumers. The SWA is, not surprisingly, upset. The taste of scotch without the alcohol sounds to me like all pain, no benefit.

Scotch in a can and halal whisky do not fit my notion of innovativeness and contemporizing the category. Better off sticking to kilts.

By the way, that reminds me of something I heard while in Ireland at a distillery some time ago. One of the plant managers, over a few drinks, told me the following:

“You know, the Irish taught the Scots three things – how to make whiskey, how to play bagpipes and the wearing of kilts. But… we forgot to tell them that the last one was a joke.”

Social Media and Booze

August 21, 2011 No Comments

Unless you’ve spent the last ten years in a cave, you’re aware of social media and it’s impact. You may not be a fan or use Facebook, Twitter and the like, but it certainly has changed the way we communicate and interact. In marketing, social media can readily build or damage brands.

My friend Joan Treistman of The Treistman Group alerted me to an interesting piece of market research dealing with the importance of brand discussions on social media. I think it’s worth sharing.

A study sponsored by a company called Performics and reported in the Center for Media Research, indicates that 52% of those surveyed believe that voicing opinions on social networking sites can influence brand or company business decisions.

More importantly, the survey goes on to describe the influence of social media on consumers in various product categories. For example, nearly three quarters of respondents who purchase entertainment products discuss them on social networks.

The influence of social networks on alcohol is strong as well – 43% discuss purchases on social networks; 15% claim to have actually made a purchase as a result of social network content. The reasons for discussing alcohol beverages are based on brand loyalty (36%) to compare prices (25%) and to give advice (18%).

Most interesting of all, the reasons for following the alcohol beverage category, among half of the respondents, is that they are loyal customers of a particular brand.

I couldn’t find a single major brand of spirits that didn’t have a Facebook page created by the brand and/or consumers. But presence is not the same as impact. If you Google Top Facebook Pages and Why They’re Successful, you won’t find a booze brand but you will find Red Bull, Coca Cola and even Jones Soda.

Obviously the industry has to deal with audience age composition issues that may put it at a disadvantage versus other brands. But who said it was easy? It’s called creativity.

Bill Bernbach

August 14, 2011 No Comments

Last week most of the advertising industry trade magazines had articles about Bernbach on the centennial of his birthday. I thought I would contribute by relating the story of him, Edgar M. Bronfman and Chivas Regal.

Before I do, however, for those of you who are unfamiliar with him, here is some background on the man who revolutionized creativity in advertising – no, make that brand and product selling.

Bill Bernbach’s style of advertising changed brand communication. He was the anti “Mad Men” focusing on compelling messages that broke through the clutter and resonated with consumers. “The difference between the forgettable and the endurable is artistry,” was how he put it. So think about such ads as Avis “We Try Harder” or Volkswagen “Think Small” or “You don’t have to be Jewish to love Levy’s real Jewish rye bread.”

His effort on behalf of Chivas Regal is an interesting story as described by Edgar M. Bronfman in his book Good Spirits, and by Paul Pacult in A Double Scotch – How Chivas Regal and The Glenlivet Became Global Icons.

In the 1960’s after the acquisition of Chivas, the brand began to languish in the face of competition from such lighter scotches as Cutty Sark and J&B Rare. Edgar managed to convince his father that changes needed to be made to stem the sales declines. These included product reformulation, new packaging and a new ad campaign. Enter Bill Bernbach.

As the story goes, when Bernbach showed the new ads to Edgar there was one ad at the bottom of the pile that he kept hiding. When pushed by Bronfman to reveal it, Bernbach pointed out that it was intended as an introductory ad for the new package and that he was concerned that Edgar wouldn’t dare run it.

The headline read “What Idiot Changed the Chivas Regal Package?” To his credit, Bronfman saw the benefits of the brashness and self-mocking tone and, to make a long story short, the ad ran.

The team at Doyle, Dane and Bernbach went on to change the brand’s fortune by understanding consumers and reaching them through challenges and taunts that were fun and resonated well. My favorite – “If you can’t taste the difference in Chivas Regal, save the extra two dollars.” And, the classic, “The Chivas Regal of Scotches.”

In addition to the central print campaign, the agency created a cartoon campaign, which picked up on the theme. A particularly memorable one showed a ship leaving the dock with a case of Chivas left behind. The caption read, “They’ll be back. They forgot the Chivas.”

Did the creativity translate into brand sell? According to the Pacult book, when DDB took over in 1962, the brand was selling around 135,000 cases. By 1979, sales had risen to 1.1 million.

All I can close with is a rewording of another great Bernbach ad – “Mama Mia, that’s effective advertising.”