It's easy to call yourself a top spirits company. Being one in the volatile, liquid, global marketplace of 2005 is another matter. It takes not only great spirits products, but a distribution strong arm with a long and steady reach. It requires constant innovation, as well as promotions and marketing and advertising. And more.
The proof is not just in the bottle — it's also measured by the millions and even tens of millions of case sales of a given brand or category — and in a given company's annual share of the multi-multi-billion-dollar on-premise spirits market.
Notably, small, unknown spirits purveyors today can become the burgeoning giants of tomorrow. When these suppliers reach this echelon of supplying, they earn the respect and resulting business of countless individual operators, but often, operators don't know much more about these companies beyond their brands. As an owner/operator, did you ever stop and ask yourself what drives these top spirits teams to compete, and what concerns and agendas they have for on-premise operations today?
To list and enlighten, for reference and for revenue, here are the industry's top guns at large, along with an insight or two on how and why they want on-premise profits to soar sky high.
Favorite On-Premise Promotion: "Most Exclusive Courvoisier VSOP Gentlemen's Tour" — a nationwide tour run in 2004 supporting Courvoisier VSOP, which was hosted by the brand's "Arbiter of Good Taste " — Fonzworth Bentley. The Hip-Hop entertainer and style aficionado toured the country with his Bentley Ladies, bringing luxury and style to on-premise events through VIP room gentlemen "step ups" (massages, manicures, style counsel), signature Mr. Bentley cocktails, contests and dance floor hi-jinks.
Push to Publicize for 2005: "One of our major marketing initiatives for 2005 will be a focus on the multicultural consumer, including Hispanics, African Americans, Asians and Gays & Lesbians," says Dave Karraker, vice president of communications for Allied Domecq Spirits North America. "We will be putting increased in-market support against these targets, who are already predisposed to enjoying such Allied Domecq brands as Sauza, Presidente, Kahlúa, Stoli, Midori, Courvoisier, Ballantine's and Malibu.
"In addition, you will see us increase our support of our super and luxury premium products, such as our single malts collection (Scapa, Laphroaig, Tormore, Glendronach), Stoli elit, Courvoisier XO, Sauza Tres Generaciones, and WET by Beefeater," Karraker says. "We have one of the most premium portfolios in the industry and intend to take advantage of this point of differentiation."
Key to Success: "The key to Allied Domecq's success is its 'First Choice' philosophy," Karraker says. "We want to be the 'First Choice Supplier' in the hearts and minds of our distributors, brokers and retailers. We do this through building mutually beneficial partnerships, where all parties have a vested interest in success and work together towards common goals. We have the 'First Choice Trademarks,' which we do through our portfolio of premium products, all supported through socially responsible 'smart marketing.' And finally, we want to be the 'First Choice Employer' — a challenging and rewarding place to work for talented, capable and confident people, who our partners really want to work with."
Quote for On-Premise Operators: "In most instances, on-premise is the first point of contact between our products and the consumer, " Karraker says. "Whether it be through a signature drink menu, a custom promotion or a staff recommendation, we rely on the partnerships we have with our on-premise operators. This is why Allied Domecq has placed such an emphasis on direct contact, product education and feedback when working with them. We believe this is the only way to build a partnership that drives profits for both parties."
Core Brands: Bacardi Rum; Dewar's Scotch Whisky; Grey Goose Vodka; Bombay Sapphire gin; Martini & Rossi Vermouth; and Asti; Bacardi Silver; Cazadores blue agave tequila
Newest Portfolio Additions: Grey Goose vodka; Corzo tequila; Bacardi Silver Low Carb Black Cherry; Bacardi Silver Low Carb; Bacardi Silver Low Carb Green Apple
Number of Personnel: 300
Ballpark Case Volume: Privately Held
Annual Sales: Privately Held
Favorite On-Premise Promotions: Summer of Rum and Mojito May. Also, Bacardi & Cola has made waves.
Push to Publicize for 2005: Grey Goose and Bacardi Superior (newly repackaged)
Keys to Success: Passion and precision
Quote for On-Premise Operators: "Almost anything short of cola is open territory for us," said Celio Romanach, group marketing director vice president, in the August 2004 issue of Nightclub & Bar.
Core Brands: More than 185 brands are in Barton Brands' portfolio, including Black Velvet whiskey; Skol vodka; Barclay Vodka; Barclay Gin; Barclay Bourbon; Calypso rum; Montezuma tequila; Fleishmann's Gin; El Toro Tequila; Paul Masson Grande Amber Brandy; and Kentucky Tavern Bourbon
Newest Portfolio Additions: Mr. Boston Sour Apple Schnapps; Chi-Chi's Blue Raspberry Lemonade; Beachcomber Flavored Rums; Skol Blue Lightning; and Barton Blue Wave
Number of Personnel: Not Available at Press Time
Ballpark Case Volume: Not Available at Press Time
Annual Sales: Not Available at Press Time
Favorite On-Premise Promotion: Not Available at Press Time
Push to Publicize for 2005: Not Available at Press Time
Key to Success: Volume, competitive pricing, extensive production facilities and versatility of brand marketing
Quote for On-Premise Operators: "The key to success is the ability to make acquisitions and turn them around as we have done historically," said Ed Golden, president of Barton Brands Inc., in the October 2003 issue of Nightclub & Bar. "Brands that were less important to other suppliers have become important to us."
Core Brands: Jack Daniel's; Jack Daniel's Single Barrel; Gentleman Jack; Jack Daniel's Country Cocktails; Southern Comfort; Canadian Mist; Early Times; Appleton Estate Jamaica Rum; Tuaca Liqueur; Glen Moray Single Malt Scotch Whiskies; Finlandia Vodka; Korbel Champagnes; Fetzer wines; and Bolla wines
Newest Portfolio Addition(s): Not Available at Press Time
Number of Personnel: 6,700 employees in the United States and abroad
Annual Sales: Assets at the close of the 2003 fiscal year, $1.7 billion
Favorite On-Premise Promotion: Perhaps purchasing an entire usable and collectible barrel of Jack Daniel's? For example, each year bar owners in Sturgis, South Dakota, up their orders of the roughly $10,000 vessels.
Key to Success: Jimmy Bedford, Jack Daniel's master distiller, has raised awareness of the brand by traveling the world and educating consumers. Also, Brown-Forman's production diversity spurs sales — the Brown-Forman Corporation manufactures and markets (through Lenox Inc.) china, crystal and collectibles, and the luggage and leather goods of Hartmann, for example.
Newest Portfolio Additions: Pallini Limoncello; Gosling's Rum as of January 2005; Crazzberry Vodka
Number of Personnel: N/A
Ballpark Case Volume: More than 200,000 for 2004. The 2005 global sales goal is 350,000
Annual Sales: Privately Held
Favorite On-Premise Promotions: Boru stackable mini-bottles and "Find It" — The Search for Celtic Crossing
Push to Publicize for 2005: U.S. sales have more than doubled this past year and Castle Brands has expanded their global sales and marketing budgets and personnel to better serve their on-premise partners.
Key to Success: Innovative and creative marketing, as well as dedication to growth and increased success on-premise
Quote for On-Premise Operators: "A new phase for us is taking on selective agency brands with potential ... while growing our core brands," says Mark Andrews, CEO of Castle Brands.
Newest Portfolio Addition: Pravda, "The World's Smoothest Vodka"
Number of Personnel: 250
Ballpark Case Volume: 1,000,000 cases
Annual Sales: N/A
Favorite On-Premise Promotions: Chambord Invitation promotion — a classy, non-commercial and upscale way to share Chambord-inspired cocktails with target clientele, and La Vie de Chambord, Volumes I & II — two books about Chambord.
Push to Publicize for 2005: Jacquin's main objective for the new year, says Robert Cooper, vice president of marketing, is to demonstrate that Pravda vodka is the first super-premium vodka to prove it is the smoothest vodka in the world.
Key to Success: High quality. "Our brands dominate their respective categories in terms of quality," Cooper says.
Quote for On-Premise Operators: "Chambord Liqueur should be the starting point for ALL of your gourmet cocktails — AND taste Pravda Vodka in a blind comparison to ANY other super-premium, and you, too, will know Pravda is the smoothest vodka in the world!"
Cruzan Ltd.
Company: Cruzan Ltd., a division of Todhunter International
Core Brands: Cruzan Estate Light and Dark Rums; Cruzan Estate Diamond 5 Year Rum; Cruzan Single Barrel Estate Rum; Cruzan Coconut, Pineapple, Raspberry, Mango, Banana and Orange Rums
Newest Portfolio Additions: Hine Rare VSOP Cognac; Hine Antique XO Cognac; Hine Triomphe Cognac; Hine Vintages; and Hine Talent
Number of Personnel: 30
Ballpark Case Volume: 557,779 9-liter cases
Annual Sales: Privately Held
Favorite On-Premise Promotion: Cruzan Confusion cocktail, a Kenny Chesney favorite. Also Cruzan Mango Mojito and Cruzan Voodoo Juice.
Push to Publicize for 2005: Cruzan Rum's sponsorship of Kenny Chesney's 2005 Concert Tour
Key to Success: Cruzan President Tom Valdes says he attributes the company's success to pioneering efforts in launching better-tasting tropical rums (flavors), and the company's efforts with attractive packaging.
Quote for On-Premise Operators: "Come to the Cruzan Islands for exciting new rum drink ideas," Valdes says, adding, "Better-tasting rums make better tasting rum drinks."
Newest Portfolio Additions: Smirnoff Twisted V flavored malt beverage; Smithwick's Irish Ale; Smirnoff Signatures (pre-mixed cocktails); Coal Ila and Clynelish single malt whiskys; Johnnie Walker Green pure malt whisky; Captain Morgan's Parrot Bay flavors Mango, Pineapple and Coconut; Smirnoff Watermeon Twist vodka and Smirnoff Strawberry Twist vodka.
Number of Personnel: 2,500 employees in the United States
Case Volume: Approximately 27 million 9-liter cases annually
Annual Sales: Net sales Diageo North America for fiscal year 2004 were $4,077 million, or $4,077,000,000
Favorite On-Premise Promotion: Captain Morgan's Keys to Adventure
Push to Publicize for 2005: Reminding consumers about the importance of responsible drinking.
Key to Success: Promoting responsible drinking, providing great drinking and shopping experiences for adult consumers, establishing great relationships across the industry and consistently delighting consumers with innovative products and first-choice brands.
Quote for On-Premise Operators: "The on-premise is where we build loyalty to your outlets and our brands," says Zsoka McDonald, director, trade communications and media relations, Diageo North America. "We can learn faster in the on-premise; it's dynamic, trends start here and it's a setting in which consumers are open to trying new drinks and having new experiences.
"Diageo's ambition is to become the on-premise supplier of choice through an approach of 'we will help you build your business' rather than 'we sell you products.' We are putting resources toward the on-premise to build on our expertise in this area. We're working with you to understand your business needs and link this to consumer insights and understanding. We thank you for your support — keep up the great work!"
Newest Portfolio Addition(s): Not Available at Press Time
Number of Personnel: Not Available at Press Time
Ballpark Case Volume: Not Available at Press Time
Annual Sales: Not Available at Press Time
Favorite On-Premise Promotion: Not Available at Press Time
Push to Publicize for 2005: Imported Stock Vermouths are the No.2-selling vermouth in America. Imported Stock '84 V.S.O.P. Brandy is consistently among the top five imported brandies in the United States.
Imported Gran Gala Triple Orange Liqueur is the second-largest selling triple orange liqueur in the U.S.A and imported Grappa Julia is the largest-selling grappa in America.
Key to Success: Not Available at Press Time
Quote for On-Premise Operators: Not Available at Press Time
Future Brands LLC
Company: Future Brands LLC
Located: Deerfield, Ill.
Core Brands: Jim Beam; Jim Beam Black; Absolut; Absolut flavors; Level vodka; Knob Creek; DeKuyper
Annual Sales: Privately Held
Favorite On-Premise Promotion: Knob Creek Poker program and Level vodka bartender event in South Beach, Fla.
Push to Publicize for 2005: More than 90 brands.
"When Jim Beam Brands Co, and The Absolut Spirits Co. created the joint venture called Future Brands LLC, the result was a strategic organization built around customer service and driven by a world-class product portfolio," says Cynthia Andrada, events coordinator and public relations executive for Jim Beam Brands Worldwide.
Key to Success: Partnership. "The key to success is partnership with the distributor tier and the retail tier," Andrada says.
Quote for On-Premise Operators: "Continue to look for profit-generating premium and super-premium offerings, such as Level and Starbucks Coffee Liqueur, from your Future Brands sales force."
Core Brands: Hpnotiq; Evan Williams Bourbon; Christian Brothers Brandy; Whaler's Rum; Burnett's Gin; Burnett's Vodka and Flavored Vodkas; and Dubonnet Aperitif
Newest Portfolio Additions: Burnett's Cherry, Mango and Watermelon Flavored Vodkas; Evan Williams Single Barrel 1995 Vintage Bourbon; and Isle of Jura Superstition Single Malt Scotch Whisky
Number of Personnel: 400
Ballpark Case Volume: Privately Held
Annual Sales: Privately Held
Push to Publicize for 2005: The following brands will receive increased on-premise support, according to Heaven Hill: Hpnotiq; super-premium bourbons; Whaler's Rum, Burnett's Vodka and Flavored Vodkas; Isle of Jura Single Malt Scotch Whisky; and Christian Brothers Brandies
Key to Success: America's largest independent, family-owned distilled spirits marketer — a full-line supplier with relationships spanning generations.
Quote for On-Premise Operators: "Heaven Hill offers brands that today's in-the-know consumer is looking for," says Heaven Hill Director of Corporate Communications Larry Kass. He cites Hpnotiq, Whaler's Rum, Evan Williams and Elijah Craig Bourbons and Isle of Jura Single Malt Scotch as examples.
Core Brands: McCormick's array of core and family brands includes Montego Bay Rum; Ron Rio Rum; Saratoga Dark Full-Bodied Rum; Cambridge Distilled Gin, Royal Gentlemen Blended Whiskey; McCormick Vodka (80, 90 and 100 proof), diluted vodka (42 proof) and flavored line including Peach, Raspberry, Orange, Vanilla and Apple; McCormick Gin (80 and 90 proof) and Diluted Distilled Gin (42 proof); McCormick rums, tequilas, American Blended Whiskey; Blended Scotch Whisky; Tequila Rose and Tarantula Azul.
Newest Portfolio Additions: Recently released was a spirited, classically blended eggnog for the holiday season. Also, McCormick anticipates the success of their newest product — Sgt. Peppermint — a secret but spectacular product, they say.
Number of Personnel: 155
Ballpark Case Volume: 3.7 million
Annual Sales: $150 million
Favorite On-Premise Promotion: October, Breast Cancer Awareness month, has many fundraisers throughout the United States for this very worthy cause. McCormick says they were proud to be able to team up with one of the events in Sheridan, Wyo., called "The Pink Flamingo." McCormick donated their Tequila Rose product and some time and effort. The goal was to sell Tequila Rose "Blooming Rose" drinks and shots with all proceeds going back toward Breast Cancer Research as a donation. This also was an all-women event. More than 400 women paid $50 to attend this extravaganza, and McCormick was able to set up a Tequila Rose display, hang banners, table tents, hand out tattoos, sell drinks, and promote all evening. They also teamed up with the biggest liquor store in Sheridan, Star Liquor, to publicize Tequila Rose in newspaper advertising. McCormick also provided $1-off Tequila Rose coupons to draw these ladies back to the liquor store after the event was over.
"These types of events are very successful for targeting a perfect Tequila Rose consumer base — 25-50-year-old women in middle/upper class," says McCormick National Accounts Executive Michelle Nouvel. "The response is always very favorable."
Push to Publicize for 2005: Tarantula Azul, Tequila Rose, Sgt. Peppermint
Keys to Success: Extensive portfolio, strategic pricing range, on-premise support
Quote for On-Premise Operators: "Treat every account as if you owned it."
Core Brands: Chivas Regal; Wild Turkey; Wild Turkey Rare Breed; Wyborowa vodka; The Glenlivet; Jameson Irish Whiskey; Bushmills; Jacob's Creek
Newest Portfolio Additions:
Number of Personnel: 12,250 including all 72 facilities
Ballpark Case Volume: N/A
Annual Sales: Pernod Ricard reported 2004 9-month cumulative sales (excluding duties and taxes) of Euros 2,375 million for its Wine and Spirits business, up 6.4 percent over the same period last year on a constant exchange rates and group structure basis.
Push to Publicize in 2005: Jacob's Creek presently is Australia's leading export, and it realized a 6 percent positive sales volume growth 2003-2004 (year-to-date in November 2004). Look for its on-premise popularity and profitability to increase more in 2005.
Keys to Success: Strong corporate ethics, global positioning and networking and increasing advertising and marketing reach
Quote for On-Premise Operators: "We believe the outlook for the on-premise is extremely favorable," says Scott Moore, director of national accounts for the United States. "People continue to drink less and drink better ... we believe this trend will continue — people will continue to drink premium. Pernod Ricard USA is very positive for the prospects on-premise and is committed to growing close partnerships with our on-premise customers."
Core Brands: "All of our brands are core to our business," says George Di Benedetto, managing director of Shaw-Ross. "We import 32 brands of wines and spirits and each one is a mainstay in our portfolio."
Newest Portfolio Additions: Newest additions include Ducaroso Chianti, Long Neck Wines from South Africa, Brugal Rums from the Dominican Republic and Frïs Red Apple Vodka
Number of Personnel: 100-plus nationally and at headquarters
Ballpark Case Volume: 2 million
Annual Sales: $110 million
Favorite On-Premise Promotion: N/A
Push to Publicize for 2005: Selection of core brands
Key to Success: "The key to Shaw-Ross' success is the company's attention to detail, hands-on management and thorough follow-up," says Di Benedetto. "We still believe in relationships, as it was years ago, as long as that still remains Shaw-Ross will always excel."
Quote for On-Premise Operators: Di Benedetto says, "Shaw-Ross has a straightforward approach. We work with our sales teams and wholesaler national accounts departments across the country to develop successful promotions and features for our clients. Operators should demand a lot from their suppliers because as an on-premise operator they can still build brands.”
Core Brands: Jägermesiter liqueur, Tequila Corazon de Agave, Gekkeikan Sake
Newest Portfolio Addition: Sidney Frank Collection — a collection of wines developed by Sidney Frank which include the Genofranco Wines imported from Sicily and wines from California
Number of Personnel: About 150 full-time employees
Ballpark Case Volume: 3.9 million cases for 2004 (this figure includes Grey Goose sales. Without Grey Goose, which was recently sold to Bacardi, case sales ballpark at 1.8 million.)
Annual Sales: $350 million for 2004 / Ballpark $200 million without the recently sold Grey Goose line
Favorite On-Premise Promotion: Jägermesiter parties hosted by world-famous Jägerette promotional models, "continue to be a driving force behind Jägermesiter."
Push to Publicize for 2005: "We will concentrate on all our brands," says Deirdre Maher, director of corporate communications. "We will continue to update our Jagermiester promotions, keeping them on the cutting edge of on-premise promotions. We are very excited that Jägermeister will exceed sales of 2 million cases in 2005. Tequila Corazon de Agave will be introduced to more and more on-premise accounts with new POS items and tools that will peak customers' interest and get them to indulge in the world's best tasting tequila."
Key to Success: "The key to our success has been our ability to listen to the consumers and constantly come up with fresh ways to entice them and let them know that when they are enjoying Sidney Frank Importing brands, they are enjoying the best brands the world has to offer. Our sales people are in the field every day, listening to consumers and hearing what they want. We pride ourselves on our ability to hear what the customer wants and act on it quickly. This tradition comes from our chairman, Sidney Frank, who is constantly looking to the consumer for his next big idea. He never rests on his laurels; instead, he continually comes up with new ideas for products and creative ways to promote those products."
Quote for On-Premise Operators: "Sidney Frank Importing will continue to come up with imaginative ways to promote our brands while bringing new products of unparalleled quality to the market," Maher says. "We strive to support on-premise operators because we know they are our most important alliance in making the sale and pleasing the customer."
Favorite On-Premise Promotion: SKYY Purity Promotion — reminding people about the fact that SKYY has the fewest impurities among leading super-premium brands
Push to Publicize for 2005: "We will continue to talk about our great tasting flavors and the proven exceptional quality of SKYY Vodka," says Sue Hearn, director of public relations for SKYY. "We will introduce exciting new products in 2005 based on consumer demand with style and quality."
Key to Success: "SKYY Spirits is a dynamic, leading-edge marketer of quality spirits," Hearn says. "Innovation and our entrepreneurial roots allow us to move to market fast and create innovative communications, setting us apart."
Quote for On-Premise Operators: "SKYY Spirits would like to thank you for making us one of the fastest growing spirits companies in the world," Hearn says.
White Rock Distilleries
Company: White Rock Distilleries
Located: Columbus, Ohio with production facilities in Lewiston, Maine
Core Brands: Three Olives Vodka, Cabana Boy Rums, Baja Rosa, Bowmore Single Malts, McClellands Single Malts, Tortilla Gold, Desert Island Tea, Ryans Cream, Kapali Coffee, Samballa Sambuca, Pinnacle Vodka
Newest Portfolio Additions: Three Olives Chocolate Vodka, Three Olives Green Apple Vodka, Pinnacle French Vodka, Martinis Tropical
Number of Personnel: 225
Ballpark Case Volume: 2.4 million
Annual Sales: $140 million
Favorite On-Premise Promotion: Three Olives Cherry Bombs
Push to Publicize for 2005: Three Olives Vodka
Key to Success: Quality products with outstanding packaging that appeal to American palate
Quote for On-Premise Operators: "It pays to keep an open mind when looking at spirits brands," says Bill Dabbelt, vice president of White Rock Distilleries.
Core Brands: High-end portfolio includes Cabo Wabo Tequila; Baffert's Gin; Casa Noble tequila; and Zaya Rum
Number of Personnel: Close to 80
Ballpark Case Volume: Not Revealed.
Annual Sales: Not Revealed.
Favorite On-Premise Promotion: Sammy Hagar and the Waboritas
Push to Publicize for 2005: Wilson Daniels' Tenimenti Angelini wine was among the 100 Wineries of Year in Wine & Spirits Magazine' 2005 Buying Guide
Quote for On-Premise Operators: 'If you want to build brand awareness, you've got to stomp the sidewalks," says Ray Ramos, regional manager, Hispanic division, Wilson Daniels Ltd.
Lonnie Charleson, senior vice president and director of sales and marketing, says, "Wilson Daniels' strategic approach is not to be all things to all people, but to target the individual brand strength to a specific channel of consumers."
