Follow the leader

This week’s issue of Advertising Age has a story about flavored whiskey with the headline “Brown liquors get shot of flavor as distillers look to broaden audience.” The sub headline – “Can cherry bourbon and Tabasco SoCo woo women without scaring off men?”

Right off the bat, a few things bothered me. Brown liquors? Careful Ad Age, your bias is showing.

As to the appeal to women, I suppose that’s correct but the real story is innovating the whiskey category to broaden its appeal – to all audiences, not just women – and to expand usage occasions as well.

Ad Age also forgot the brand that created the category in the first place – Wild Turkey American Honey that was launched in 2006 and has been a big seller since then.

Here’s my view on the flavored whiskey category.

When Beam introduced Red Stag by Jim Beam (Black Cherry), many people (myself included) didn’t think it would work. But I at least gave them credit for a brand extension rather than a line extension. What’s the difference? As my friends at Absolut used to say, if you add an extension, it must feed the brand not eat the brand. Extend usage and consumers without cannibalizing the core franchise.

Launched in 2009, Red Stag sold 100,000 cases that year and 190,000 in 2010. I’m told that by the end of 2011 the brand will have sold 500,000 cases since the launch. Further, according to Nielsen data, Red Stag accounted for 15% of all the growth in the Bourbon category in 2010. That, my friends, is feeding the brand.

The attractive thing about Red Stag is that it’s “Kentucky Straight Bourbon Whiskey Infused with Natural Flavors.” At 80 proof, it’s whiskey not a liqueur. It’s the only one on the market that’s whiskey according to the regulations.

Based on the success, the race is on.

Brown Forman has two entries in the market both interesting, but more whiskey specialty and liqueur than Beam’s entry. Jack Daniel’s Tennessee Honey is a 70 proof product, has great reviews and is more expensive than Red Stag. Gutsy pricing move.

Even gutsier is the Southern Comfort entry – Southern Comfort Fiery Pepper. It’s a liqueur (like the base brand and the Lime extension) at 70 proof. As the name suggests, it’s certainly not fruity and is co-branded with Tabasco hot sauce.

The Evan Williams folks (Heaven Hill) introduced Evan Williams Honey Reserve and are launching a Cherry Reserve. Both at 70 proof, they are classified as liqueurs.

In addition to brands, the race seems to be between cherry and honey.

Which brings me to the Seagram’s 7 Crown entries – Dark Honey and Stone Cherry. (Can someone tell me what a stone cherry is? How is it different from a cherry without a stone? Sounds like a brand manager hoping consumers will add a “d” to the word stone.)

This one is worthy of some further comments, as though I could resist.

First, it’s probably a good idea – what do they have to lose and 7 Crown could use the face-lift. Second, the brands are 71 proof, not 70. That’s probably because the flavorings have alcohol and those amounts are not taxable. I think it’s called draw back credit. Third, it sells for $19.99 or about the same price as Red Stag. That’s more than gutsy — that’s chutzpah.

Flavored whiskeys could be just the ticket to revise and grow the whiskey market. It changes perceptions, increases usage and brings non-whiskey drinkers into the mix.

Somewhere, Mr. Sam (founder of Seagram) is spinning in his grave.

 

Leave A Comment

Drinking in China

I came across an article from The Guardian (via Mark Brown’s Buffalo Trace Newsletter) with the headline – The Rise of Binge Drinking in China. The sub-headline was even more intriguing:

Binge drinking is increasingly common for Chinese professionals – often it’s even in the job description.

We’re not talking about people in the booze business either.

It reminded me of my brief sojourn as head of marketing for Asia Pacific/ Global Duty Free.

The assignment was, as they say, good news and bad news. On the one hand, it was my first head of marketing position, global in scope and in a new frontier – Asia. A dream come true, what’s not to like?

Plenty.

While there were offices throughout Asia, headquarters was in New York. No relocation, but when you travel to the markets you’re not going for a week at a time. No… more like 2 to 3 weeks (and weekends) a month away from home.

The guy running the operation was a smart executive but very strange. Let’s leave it at that, for now.

Two strikes but easily offset, at least initially, by the terrific people and the excitement of the new frontier. The drinking was another matter. Let’s go back to the article:

Drinking to develop and cement relationships has a long history in China. “When one drinks with a friend, a thousand cups are not enough,” runs one traditional saying.

I would not have put it so elegantly when I was there. For me it was fear of the words Yam Sing that literally mean, “Dry your cup” or “Bottoms up.” Oh, how I hated those words!

The big push in China at the time was Martell Cognac recently acquired by Seagram. The presence of Cognac in the portfolio, then as now, is important for business development in China. And, man oh man; our people loved their Cognac. At dinners, we had Cognac as cocktails (straight) with dinner (no wine) and of course after dinner. Every glass was accompanied by those two dreaded words – Yam Sing. Someone would stand up, raise a glass, say some words in Mandarin or Cantonese and end with the fearful Yam Sing. It was bad face not to drain your glass/tumbler even if it had been filled to the brim. No sniffing, no swirling, no gazing at the golden hues – just down the hatch.

Don’t get me wrong, I like Cognac in small amounts, in a snifter, maybe by a fireplace on a cold winter night after an exceptional meal. Down the hatch or bottoms up are not the ways in which I enjoy it. After a few weeks of this, the migraines set in.

I asked my colleagues in the region why Cognac before and with meals. The answers were not helpful. They ranged from “strong food needs a strong drink,” or “Cognac is very western and very masculine,” and the all time favorite (said with a wink of the eye) “excellent aphrodisiac.” All the time I was thinking in response to each reason 1) Chinese food is best with good beer 2) western and macho means cowboys and whiskey and 3) what good is an aphrodisiac when you have a throbbing headache.

Finally one day the solution occurred to me.

At most dinners I made it a point to sit near a potted plant, pretend to take a drink when no one seemed to be looking and down the hatch was the plant’s problem. Must have destroyed more plants than any disease had ever done. Hey, I’m not proud of it, but it was either a headache or the plant.

Fortunately, a few months later, the US head of marketing position came up and it was Joi gin from this Gwailo.

 

Leave A Comment

Bill Bernbach

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.”

Leave A Comment