Absolut Truth

This is the time of year when we used to meet with distributor management to discuss the previous year and how we looked over the holidays. It reminded me of a story about a candid assessment of a new vodka product from V&S (Absolut owners at the time) called Sundsvall.

Let me set the stage for you.

In the late 90’s it was clear that high end, connoisseur and, for some, “badge” vodka products were on the ascendency. From a day-to-day marketing and sales standpoint, it was also clear that Absolut was becoming a middle brand, flanked by the top shelf entries above and the value priced vodkas below.

We requested, pleaded and ultimately begged our Swedish partner to supply a brand that would compete with Ketel and Grey Goose. Unfortunately, the gentleman who ran the brand at V&S was totally disinterested. His intractable position was that Absolut was the best and to have a more expensive and presumably higher quality entry would belie their proposition.

No amount of cajoling could change his mind. We tried to explain that the analogy was in the scotch market — single malts are not better than blended scotches, they’re different. He ignored his own people, those of us in the trenches and even the owner.

Finally, out of the blue, we were informed that a top shelf vodka brand would soon be available. I suspect that the owner went to the top of the V&S feeding chain or, for all I know, the King of Sweden to get it done. We didn’t care so long as we had a viable brand.

Ah, viable, what a good word. Like the cliché, it’s in the eye of the beholder.

The good news was that the proposition made good sense and was indeed viable including differences from Absolut in ingredients and distillation process. The up charge of $3 to $4 higher than the other super premiums was well justified in terms of the resulting taste and initial reactions.

There were two main problems. First, V&S wanted no association between Sundsvall and Absolut, even going so far as to bypass Absolut’s longtime agency (TBWA) in favor of an agency in Boston. There was no reference to Absolut anywhere in the marketing material. No opportunity for synergy or leverage.

The bigger problem was that the package did not live up to the super premium expectation or price point. It was, at best, blah. I couldn’t find a photo on the Internet so you’ll have to take my word for it. But I remember research that indicated that servers and distributors liked the taste but felt the packaging “too plain” and “too discreet vs. competition.” Someone described it as “a clear barrel with an orange shrink wrapped top.” Those are the most positive things we heard.

No surprise that after a strong initial push the brand just languished.

The scene now shifts to the Seagram Advisory Council at some offsite location and serious winter watering hole. Don’t be fooled, the invitees were the best and brightest distributor management people in the business. While the afternoon and evenings were fun, the 5 or 6 hour work sessions were grueling. This was an occasion where the supplier was on the chopping block and got to hear about strengths and weaknesses versus competition. No BS, no holds barred, all straightforward and candid remarks.

Occasionally, there would be moments of reticence where the distributors kind of hemmed and hawed, not wanting to offend. That’s what happened when the subject of Sundsvall came up. Lots of looking at the floor.

I knew why but needed my management to hear the problems first hand from our customers who obviously didn’t want to offend or appear negative.

Question after question was lobbed and the answers were platitudes and fluff. Finally, I pushed and said, “Why is Sundsvall doing so poorly?”

One very senior manager from a very large wholesaler operation had the courage to call it like it was. He told the Absolut Truth and said, “Arthur … it’s simple —  the baby is ugly.”

A few months later the brand was gone. What a relief.

To this day I believe that the V&S senior manager who never wanted an up market brand in the first place, did all he could to sabotage the effort. It wasn’t the only mistake he made.

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How old is alcohol?

A few items in the news caught my eye recently.

In the January 11 issue of Mark Brown’s Industry News Update there is a reprint of a WSJ article titled, Perhaps a Red, 4100 B.C. Here’s the story lead:

Scientists have discovered the world’s oldest known winery, secreted amid dozens of prehistoric graves in a cavern in Armenia…

Outside a mountain village still known for its wine-making skill, archaeologists unearthed a large vat set in a platform for treading grapes, along with the well-preserved remains of crushed grapes, seeds and vine leaves, dating to about 6,100 years ago—a thousand years older than other comparable finds.

The article ends by providing a “prehistory” of wine and indicates archaeologists have found traces of a fermented rice wine from a village in northern China dating back 9,000 years. Wow — alcohol use goes back 9,000 years!

But wait, there is more.

Last month the newsletter reprinted an article from the LA Times called Prohibition, online. The opening paragraph:

In most states, ordering a gun online is perfectly legal. As is ordering pornography, cigarettes and ammunition. A bottle of merlot, though, could land you in jail.

So, tell me, where do Neanderthals come from? 

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What does website design and spirits manufacturing have in common?

Two different worlds, right?

Maybe not.

Like most people I’m on the Internet constantly — learning, exploring, researching, being entertained, buying stuff and on and on. More often than not, I get to a website and wonder, “What the hell were they thinking when they put this up? Why is it so hard to move around and find what I want?”

It’s fairly obvious that the problem lies in the “manufacturing” of some websites. They are either over designed or put up on the fly with low cost as the driving force. That’s part of the reason.

I think a more important factor is that the webmasters or designers are thinking of the “product” or what it takes to make it happen and don’t consider the user or the “consumer.”

They’re thinking manufacturing not marketing.

I once paid a visit to one of our main plants and spent a day or two explaining what marketing was up to and why our needs can sometimes be difficult to execute. At the same time, I wanted to learn how the products were made and “walk in the shoes” of the manufacturing people.

At lunch one day I got into a conversation with the plant manager. “You know, if you got rid of the embossed seven with the crown on top (Seagram’s 7 bottle), we could produce a hell of a lot more per day. Those things on the back sometimes knock up against each other, break and we have to stop the line to clean up.”

I pointed out that the brand was falling badly and the last thing we wanted was to mess with the heritage, identity and packaging. He explained that his mission was to provide the best quality product while keeping the cost of goods in line.

We got to understand each other’s agenda and from that day on, we worked in partnership matching consumer expectations with manufacturing excellence.

Above all, he was a consumer himself and understood brand equity from an end user’s standpoint. The same is true for many web designers. But, I believe there are also many who probably never visit the site they create after it’s up.

Maybe it’s just the ones I go to.

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