Move Over Bailey’s, Here Comes the Swan

According to Impact Databank, Bailey’s Irish Cream is a 1.5 million 9-litre brand in the US and grew 6.5% from 2018 to 2019. But after you read the story about Coole Swan Irish Cream Liqueur, you might wonder if Coole Swan, with the right resources, might just make a dent in those numbers.

The Back Story

David Gluckman, whom I’ve written about in the past, spent 45 years in the drinks business primarily in the new brand development area. Much of his career, 36 years to be exact, was with International Distillers and Vintners (IDV), the company that became Diageo. Along the way, he created Sheridan’s, Le Piat d’Or, Tanqueray Ten, Bailey’s Irish Cream, among others.

In 2005, he left Diageo and decided that, together with some former clients/colleagues, they would develop products for their own company. As he puts it in his book (That S*it Will Never Sell):

“When I think back, I was isolated from most of the tough stuff… working for a company. All I had to do was come up with ideas. Other people looked at production, finance and marketing. Now that I was working on a brand of my own, I came to realise how difficult things could be at the deep end.”

Among the products they developed was Coole Swan where they saw an opportunity for a product with lower sweetness and more modern, sophisticated packaging which broke with the Bailey’s template.

Currently, the brand is an independently owned family business run by husband and wife team Mary Sadlier and Philip Brady. Interestingly, Mary Sadlier’s background was in corporate finance at Diageo.

I’ll come back to her in a moment, but about now you’re probably wondering where the brand’s name comes from.

Coole Swan

As Mary put it, “the name Coole Swan was inspired by The Wild Swans at Coole, a poem written by one of Ireland’s great romantic poets; W.B. Yeats. In this poem Yeats writes about finding everlasting beauty in an ever-changing world – just like our wonderful Irish Cream Liqueur. Coole Swan, an eternal beauty, we just bottled it.”

According to David Gluckman, he and his associates had a hard time coming up with a name for the cream liqueur they invented. Either the name didn’t fit or was already taken. By chance, David was catching the last plane out of Dublin and looking for inspiration, picked up a copy of a book of Yeats’ poetry. He found one of his most famous poems, as he put it, “a wistful reflection on the passing of time called The Wild Swans at Coole,” a park near County Galaway.

(A link to the poem is here.)

About Mary Sadlier, the owner

Mary Sadlier, who with her husband Philip Brady, run the Coole Swan business, hails from Navan in County Meath. The Coole Swan company is based nearby in Tatestown near Navath in the same county.

Mary is an amazing businessperson and struck me as someone who is always learning, always growing.

As mentioned, she was in corporate finance at Diageo. In my view, after talking with her at length for this article, it was clear to me that she has a keen overall sense of all aspects of business, marketing and sales included. She has participated in Going for Growth a six-month part-time program, supported by Enterprise Ireland and KPMG, which assists ambitious female entrepreneurs to achieve their growth aspirations.

I found this quote from her on their newsletter:

“The Going for Growth program was of tremendous benefit to me. To be among so many brilliant women made me grow in confidence and allowed me to ‘lean-in’. The fellow participants are like really good neighbors – they are there with you when need them but not when you don’t,” says Mary.

What Mary and her company lack is the corporate resources to meet the challenge of Bailey’s and the dozens of Bailey’s knock-offs and wannabes.

About the product

The best way to describe the product is to compare it to Bailey’s:

Coole Swan is made with Single Malt Irish whiskey, Belgian white chocolate and fresh cream. It is only produced in Ireland. Bailey’s is made with Irish Whiskey and a propriety recipe of chocolate flavors. The company reports that it is made in both Dublin, Ireland and in Mallusk, Northern Ireland. But given its volume and widespread global distribution, I suspect it may be produced elsewhere as well.

The alcohol by volume is similar for both, around 16/17% AbV. The price points vary with Coole Swan selling for (roughly in the US) $29.99 and Baily’s at $25.

So long as we’re talking comparisons, I found this review from Common Man Cocktails:

“BAILEYS’ has a really deep nutty/chocolatey nose hitting your nostrils with a fairly potent ethanol all along whereas COOLE SWAN is far more tamed (with an actual cream thickness when swirled around the glass) with a lot more components coming through at once, not standing out or taking over one another but all having their say and coming out nicely…”

The Future for Coole Swan

The brand does around 10,000 9-litre cases in the US and currently is in New York Metro, Colorado, New Hampshire, Kansas, South Carolina and Massachusetts. Mary is smart enough to know the US market and is looking at LibDib (and other approaches) to expand into Wisconsin, Illinois, Florida, California, as well as Maine Vermont and New Jersey.

Globally, the brand is in Ireland (of course) and elsewhere in the UK, Germany, Australia, and Alberta Canada.

My takeaway

From a personal perspective, my wife and I have always been Bailey’s Irish Cream lovers, considering it as a special treat, upon occasion. However — and at the risk of offending my Diageo friends — Coole Swan is at an entirely different level of cream liqueurs. It is, as the label indicates, a “Superior Irish Cream Liqueur.”

I’m well aware of the trend toward low and no alcohol and one might wonder as to whether the drinking climate will inhibit the growth of all cream liqueurs. However, the sales data shows that the leading brands, have grown one percent recently — basically flat but not declining. With all due respects to the trend followers, not everyone buys into it (what’s the point of drinking a no-alcohol tequila) and, regardless, a bit of indulgence goes a long way these days.

The challenge Coole Swan faces is resources, and, to make the brand grow by expanding in current markets, adding meaningful and strategically important new markets, building awareness and trial, and the human resources to make all this happen.

What Mary and her team have going for them, and why I believe in the growth potential of the brand, is tenacity, passion, intelligence, and strategic thinking. They need that and more to make a dent in the category and Bailey’s sales.

I love a good David vs. Goliath story. Don’t you?

A fascinating book on innovation in the alcohol industry

David Gluckman has spent 45 years in the drinks industry (the British phrase for the Booze Business) creating such outstanding products as Bailey’s Irish Cream (along with Tom Jago), Tanqueray Ten, Cîroc and scores of others. His book, whose title is the heading of this article, is a fascinating guide to what it takes to innovate and launch new products in this industry.

David was born in South Africa and came to the UK and began working in advertising. His accounts included such companies and brands as Procter & Gamble, Kerrygold butter, and several Unilever brands. In the late 1960s, he became a consultant to IDV (International Distillers and Vintners—a company that ultimately became Diageo), and entered the world of brand development.

As a new products/innovation toiler myself, I found the book to be captivating and a joyful ride on the sometimes-turbulent road of brand development.

A review by Paul Walsh (ex CEO of Diageo) put it nicely, “David Gluckman has a ‘one-of-a-kind’ approach to new brand development, but amazingly, it works. You will enjoy this book.”

I sat down (virtually) with David and asked him about his experiences.

You’ve spent most of your career on innovation and product development, what are the biggest obstacles you’ve encountered over the course of your career? Who are the innovation villains?

Somebody once asked me why we had such a high strike rate getting brands onto the market at IDV. My answer “No marketing people.” No middle managers asking to see alternative ideas to go into massive research programmes. I can’t imagine major players like Sidney Frank or Abe Rosenberg doing concept testing. We had a very small team of like-minded individuals and the beauty was that we reported to top management. I sold the idea of Smirnoff Black to Denis Malamatinas in under 10 minutes. And Aqua Libra to Tim Ambler in 5 minutes. Well, that’s because I knew him better.

After leaving Diageo I did a project for a large drinks company. The budget was huge and I worked in parallel with a global innovation giant. I delivered my work a month ahead of schedule and I thought the solutions were really good. I think it was a case of ‘budget allocated, budget spent, end of story’. Nothing happened. I would be happy to go and re-pitch the ideas to the company tomorrow. At no charge. I am confident the ideas would work.

Which companies (or individuals) that you’ve worked with were most welcoming or encouraging to new ideas?

IDV was a ‘one-and-only’ when it came to fostering new brand development. Baileys took about 5 years to become significant and yet the company tolerated us (Tom Jago and me) even with the odd expensive failure. Adventure seemed to be built into the IDV culture. When Jago left and Tim Ambler took over the rate of development accelerated. I think of all the people I worked with, Tim was the most inspiring. He really knew the business and he was on the main board and could make things happen. IDV also formally introduced Tom Peters’ ‘brand champion’ idea so top management from all over the company were taking leadership on new ventures.

What’s the biggest regret of your career? What have you done or worked on that you wished you hadn’t?

When I parted company with Diageo in 2005 I got together with two ex-colleagues to develop Coole Swan, a super-premium cream liqueur. The category made sense because there was nothing above Baileys and we felt there was an opportunity for a product with lower sweetness and more modern, sophisticated packaging which broke with the Baileys’ template. I was as proud of that brand as with any I developed for IDV/Diageo. The problem for me personally was that it took me out of my comfort zone and into marketing and finance – not part of my skill set. I still firmly believe that it will be a great buy for a company out there with muscle and resources. But I should have negotiated a brand development fee and a small piece of the action and left it at that.

Thinking about all the new products or innovations you’ve worked on, which are you most proud and why?

It would be easy to say Baileys or Cîroc because they were so successful. But for me the two intellectual challenges which were most satisfying were Smirnoff Black and Distilled Guinness. In the Smirnoff case, the brand was on its knees in the US. The idea of a premium version to compete with Absolut and Stoli was scarcely credible. The solution came from a word more familiar in the brown spirits sector—we set out to achieve and perfected ‘the world’s smoothest vodka.’ And the product delivered. Hard-nosed New York 40-somethings really could taste the difference. And even when I told them it was from Smirnoff they said they preferred it.

Distilled Guinness never got off the drawing board but the way the idea came together in my head was incredibly exciting. If you can have Jewish epiphanies, this was one. The discussion was about a Guinness Whiskey. Should we take the brand into a new category? On the surface, the only way was Irish and at the time (1998), Pernod-Ricard owned the market. So, Guinness Irish Whiskey didn’t seem to make commercial sense. Then out it popped. The fruit of all those lengthy distillery visits. Whisky starts life as a fermented product. A beer. Then it’s distilled. Why not simply distill Guinness? And call it that. Distilled Guinness. No SWA {Scotch Whisky Association}, no barrel-ageing, make it where you like and make it taste the way you choose. We designed the pack the same evening and I was in a couple of focus groups a few days later. But it never happened.

What do you make of the craft (or small batch) product movement in the US and UK?

I never liked claims like ‘small batch’, ‘hand crafted’ which are all over the place these days. They are hollow claims, just hype. They don’t really mean anything. I always liked brand claims that led to real benefits not stories. It was my advertising training working for Unilever and P&G. Smirnoff Black was a palpably smoother vodka and Tanqueray Ten is made from fresh botanicals and has a fresher, cleaner gin taste. These are real product benefits. They could get drinkers to change their minds.

I’m not sure I agree with David on this last point inasmuch as the back story of a new brand must answer the trade’s question as to “why this and why now.” I think it’s the mix of what’s in the bottle together with the brand’s reason for being that often yields success.

~~~~~~~~~~~~~~~~~~~~