Diageo acquiere cachaca Ypioca: A new step in a consolidated market

Diageo announced in late May, It has reached an agreement to acquire Ypioca Agroindustrial Limitada , the producer of cachaça Ypioca, for a total amount of 460 million dollars in cash.

"It allows Diageo to expand its presence in Brazil and have access to a growing number of consumers from the middle class, causing the growth of premium brands", says Diageo.

In volume terms, Ypioca is the third global brand of cachaça its annual sales totaled nearly 100 million dollars last year, behind Cachaca 51 which has 30% market share and Pitu Cachaca.

We can notice a consolidation of Cachaca brands in those recent months, Leblon cachaca recognized as the best because of the multiple medals acquired in different contest (Gold Medal Award Winner at the 2006, 2007, 2008, 2009, 2010, 2011, and 2012 at San Francisco World Spirits Competition)  , have sign a deal with Bacardi Martini who take a majority part of the company, and Pernod Ricard is looking for a major acquisition.

This type of acquisition allows major groups of wine and spirits to penetrate an emerging and festive market like Brazil, but also to be part of the significant growth of cachaca through one of the most popular cocktails The caïpirinha.

source: bloomberg.com

Who owns Cîroc Vodka? Surprise it's not Diddy

In 2002 Sean "Diddy" Combs asked Busta Rhymes to "pass the Courvoisier" But nowadays be advised that he might say that if you’re not drinking Cîroc vodka while you’re reading this article, you’re not reading it the right way.

Indeed when you heard or read about Cîroc Vodka, Diddy is related to this brand. Numbers of you may think the rapper from the Queens own this vodka, or at least a part of this; but this vodka is the total propriety of the world's largest producer of spirits, Diageo.

Diageo decided to launch its ultra-premium vodka in 2003 in order to compete with the new emerging vodka in this sector such as Belvedere or Grey Goose. In order to acquire credibility in this specific market and secure the quality of its new product; Diageo decides to produces  Cîroc Vodka in France.

The name is derived from the combination of two French words, “Cime” meaning peak or summit-top and "roche" meaning rock.

The Process

The grapes used for Cîroc vodka are "snap frost" grapes; Mauzac Blanc from the Gaillac region of France, and Ugni Blanc from the Cognac region. The juice extracted from these grapes is cold fermented.

In order to be pure this juice extracted has been distilled five times, to obtain 96% purification. The final distillation is performed in a traditional Armagnac style copper pot still.

Diddy’s role

In 2007, Diageo announced that Diddy would be taking on all brand management decisions for the company’s  Cîroc vodka. In exchange Diddy receive 50% of the profits from  Cîroc. Profits means after the production/marketing and any other cost associated with producing Cîroc.  

Combs said he wanted to work with Diageo because the company understood that "I'm not just a celebrity endorser, I'm a brand builder. I'm a luxury brand builder."

This is actually seen as an excellent decision, the sales increase by 500% in only five years, and the notoriety of  Cîroc is now International, even in place where it is not marketed.

Thanks to this success, the brand introduced three other flavored varieties Red Berry and Coconut in 2010 and Peach in 2011.

Source: Billboard, Cîroc and Diageo

Bacardi launch two new rum flavors: Wolf Berry and Black Razz

Rum-king Bacardi has introduced two advancements in flavor revolution, Bacardi Wolf Berry and Bacardi Black Raz

It is the first time for a rum producer to add this kind of flavors in a bottle of rum. The two new rums represent groundbreaking developments in ingredients never before infused with rum—Bacardi Wolf Berry with blueberry and wolfberry, and Bacardi Black Razz with raspberry and black sapote.

This is a huge step in the history of Bacardi product, by the past the brand born 150 years ago in Cuba, only created rum for only distinction its age: Superior (between 1-2 years), Gold (2-3 years), Reserva (5 years), Bacardi 8 años and the new spicy one Oakheart (3 years)

Before you taste it, here is a description of both innovations:

Bacardi Wolf Berry infuses blueberry and the exotic, sweet and tangy taste of wolfberry, also known as goji berry. The distinct combination creates a vibrant spirit, with a robust aroma and compelling taste. Bacardi Black Razz is raspberry flavored rum with the addition of black sapote, a type of persimmon, boasting a rich, chocolate-like taste that is both refreshing and sweet with a deep and bold flavor profile.

These flavors can be chilled and served as shot drinks or mixed with lemon lime soda.

In addition to this innovation, it’s also the launch of a new type of packaging, Bacardi has created unique packaging with an unexpected twist—breakthrough temperature and light activated bottles. When chilled, Wolf Berry reveals a red claw mark across the label and Black Razz unveils an enlarged brilliant red berry logo.

This is a big and interesting challenge for Bacardi; we can wish them the same success as the vodka actually known.

source: Bacardi INC U.S.A

Pernod Ricard has Havanista instead of Havana Club in the U.S.

Following the decision of the Supreme Court of the United States, which prevents Pernod Ricard to use the Havana Club brand in its territory, the French group chose to release the new brand Havanista.

Produced and bottled in Cuba, Havanista is a premium rum dedicated only to the U.S. market and will be sold the day the embargo against Cuba will ends, if it will one day. Let us remember the fact that the importation of Cuban products is prohibited in the United States since 1960, one year after Filder Castro took over the country.

If the embargo is lifted, Havanista would be the first authentic Cuban rum sold in this market by Havana Club International.

Jerome Cottin-Bizonne, CEO of Havana Club International, said "With Havanista, if the embargo is lifted, we are pleased to introduce to American consumers a genuine Cuban rum.

Let’s remember that Havana Club International is known around the world for its famous Havana Club rum, now distributed in over 120 countries. Havana Club sales have also been multiplied by 10 over the last 18 years and this year should reach the 4 million 9-liter cases. Its main markets are Germany, Cuba, Spain and Italy.

For some culture, the main distillery in Cuba of Havana International was the former Bacardi one, before to offshore the production to Puerto Rico, in order to protect its know-how before the communist wanted to take over it.

Bacardi Rum Building in Havana

source: just-drinks.com

Bourbon and Cachaça now protected in Brazil and the U.S.

The United States announced Monday, April 12 an agreement with Brazil for the two countries protect appellations "Bourbon", "Tennessee whiskey" and "cachaça", distilled spirits characteristics of the two countries.

U.S. Foreign Trade Representative Ron Kirk said he had made ​​that commitment with the Brazilian Foreign Trade Minister, Fernando Pimentel.

Starting this date, the bottles sold under the label "sugar cane liquor" or "Brazilian rum" in the United States will now be marketed under their real name, cachaça, while Brazil will officially recognize Bourbon and Whiskey Tennessee  alcohols as specifically American.

The United States protects the names on a bilateral basis only. That’s why; the conflict with France under the "California Champagne" is still permissible.

For the occasion, find some ideas for cocktails, made ​​with base Bourbon or Cachaça:

Bourbon Jack Daniel's

Made from Cachaca:

The “Caïpirinha” is Brazil's official cocktail: mix of lime, sugar cane and cachaça

 The “Pearl Button”: combination of lime and Lillet

The “Amazonia ": consist of lime, apple juice, sparkling wine and mint leaves

Based on Bourbon:

“Mint Julep”: fresh mint, sugar and crushed ice

The “Boulevardier”: Campari and sweet vermouth

Cocktail Caïpirinha

source: infosbar.com

Bacardi and Jay-Z unveiled a new cognac named: "D'usse"

The success of Sîroc, famous vodka distilled in France and owned by Diageo and the Rapper-producer Diddy has made some ​​envious.

Indeed the group Bacardi and the other hip-hop star of New-York Jay-Z, announced May 9, the launch of a new cognac, ultra premium under the name of D'usse (pronounced Dew-Say).

This cognac will be only available in the U.S. in September. The price of the bottle will be run around $45 per 750-ml bottle.

This brand aims to compete with other prestigious cognac like Hennessy, Remy Martin and Courvoisier.

Cognac is not one of the most famous alcohols among young consumers, but a trend is happening around that spirit. Indeed we can remember the performance of Kanye West at the MTV Video Awards 2009, bottle of Hennessy in his hand.

This is certainly a test before a launch in the Asian region, where consumption of cognac is much more popular, in particular in the promising Chinese market.

We can expect blatant product placement in the next video clips of Jay-Z, as in those of different Def-Jam artists, and why not become the official cognac of the new NBA team, the Brooklyn Nets . It may be noted the experience of the Brooklyn rapper in this domain after the promotion of Ace of Spade champagne in collaboration with Armand de Brignac, and charity concerts organized in partnership with Absolut Vodka (Pernod Ricard).

Bottle of D'usse

source: xxlmagazine.com

Absolut's Marketing Strategy in the U.S. Market

To support its business strategy, Pernod Ricard has decided to refresh the brand Absolut Vodka. Indeed Grey Goose, Bacardi group, won the heart of consumers compared to the Swedish brand. Often placed with celebrities and Hip Hop music videos , Grey Goose has become the most famous Vodka in consumers mind.

 

To become more "trendy", Absolut looked in the past. Andy Warhol and Helmut Newton had signed some of its old commercials, nowadays more famous than before, the brand decided returned to the arts. The target? New York City, where everything "DOPE" come from. The Swedish Vodka  has also partner a huge charity concert held by rapper Jay-Z at Madison Square Garden, to benefit families of firefighters and police officers disappeared in Sept. 11, 2001.

Another notable initiative: the inauguration last year, of "Thirty Days New York", a gallery open to the public where ephemeral thirty artists - painters, musicians, videographers ... - presented their work online. Nearly 70,000 New Yorkers have been visited this gallery and 15 million "followers" have followed the various performances on Twitter.

 

This repositioning in terms of image has been matched by a commercial shift to 180 degrees. To adapt to new behaviors,  more Home consumer-oriented  than going out, Pernod Ricard has launched a massive publicity campaign called "Cocktails Perfected" combining display, print campaign and television commercials.

 

A free application for iPhone and iPad, Drinkspiration, offering 500 recipes for cocktails, has also emerged. A success : it totals more than 500,000 downloads since 2009.

Absolut gondolas were even installed in the middle of the Fruit section of some supermarkets where hostesses were serving fresh cocktails. The Sales Representative did not have great difficulty in imposing these animations to sign because they had regular new flavors to offer. Brazilian açai berry, black tea, elderflower, coffee almond: the brand, which usually release only one novelty per year, has significantly expanded its range in only few months. Besides limited editions as Absolut Brooklyn (taste apple and ginger), designed by director Spike Lee, or Absolut San Francisco (papaya, dragon fruit, grape), concocted, among others, by Kevin Rose, founder of social network Digg.

Recently, the brand also tested Absolut Elyx, a luxury vodka of 35 dollars, distilled in a copper still and presented in a square bottle. Sold actually in Canada, Mexico, Greece and Turkey, it is not yet available in the United States. But it will be release soon, to compete with the queen of the segment: Grey Goose.