Chocolate: The new trend in the Spirits Industry

Every year the spirit's market is creating new trends. For example last year was the trend of putting Gold chips in Vodka, Smirnoff just did a bit late, but this year sounds to be the one of Chocolate. It is a bit strange that nobody thought of this before, but in the same time it was difficult to imagine both products matching with each other.

This last month of August has been pretty intense for the launch of this type of spirits, starting with the famous Baileys liquor which legitimately after the blend of Coffee try to experiment the specificity of Cacao.

Baileys Chocolate Luxe

This is a big innovation from Baileys, which will excite numbers of chocolate fan in the world. Why that? Because it is real chocolate married with traditional Irish Whiskey. By real chocolate it means, chocolate from Cocoa Beans and not "false" chocolate issue from vegetable fat as compound.

The Chocolate is describe as "A luxurious blend of Belgian chocolate, cream and Irish whiskey which took three years to develop, the new expression was designed to replicate the experience of drinking melted chocolate"

It requires multiple experiment to find the final results, in order to find the right cocoa beans which will offer you the appropriate color and  consistency which is the key about  fine chocolate.

Stoli(chnaya) Chocolat Kokonut

If you don't already know, Stolichnaya has been the first brand to launch aromatised Vodka. To unlarge its Stoli's Indulgent range which also includes the Chocolat Razberi, Stolichnaya just launch in the UK the Chocolat Kokonut. 

For the mixigolist reading us "Stoli Chocolat Kokonut combines the natural flavours of coconut and chocolate with a smooth vodka with hints of vanilla and roasted hazelnut." This will probably influence you to propose a cocktail of the day or creat a new classic on your menu.

Mozart Chocolate Cream "R.G"

This is real discovery personnaly, before this summer I have never heard of Mozart Spirits which is an Austria-based distillery from Salzbourg. Their collection is already compose of 2 cream, 1 Liqueur and 1 Spirits.

Thanks to the  participation of chocolatier Dietmar Fadinger, Mozart create a new process which "specially developed a unique and elaborate maceration process for the liqueur, refining the cocoa macerate in Bourbon casks for at least six months."

The chocolate used is issue from Forastero and Trinitario cocoa from Ghana, recipe contain also Madagascan vanilla, cream, cocoa butter and alcohol. We can underline that using Forastero and Trinitario may be a good sign of quality, but at the end what really give the quality of a good cocoa are the know-how of the farmers and the environment of the plantation.

The final result is what Mozart Distillerie calls “a full and complex chocolate taste beautifully balanced with notes of vanilla and caramel, and a very delicate after-taste with a subtle kick of alcohol”.

Sure those differents innovations will be looked carefuly by their competitors, and we might expect from them to launch their own chocolate flavor.

Sources: spiritbusiness, baileys, mozartspirits, stolichnaya

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 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 Vodka Strategy to increase its sales in the United States

I begin this series of strategic articles by the brand Absolut Vodka, which after some difficult years, decide to react in the U.S. with an aggressive commercial strategy:

To revive a brand for which it has invested $ 8.3 billion, the French group Pernod Ricard has decided to lower its prices while pursuing a policy of premium brand.

To maintain the premium image, Pernod-Ricard has recruited a team of sales representatives who have the distinction of being young, handsome and blond. Their mission: travel to all major U.S. cities (Chicago, Miami, New York and San Francisco) and promote the famous vodka in trendy places, ie bars, nightclubs and hotels.

Their strategy: They offer a free-trip of one week in Sweden, where barmen’s and owners will discover the secrets of the famous grain alcohol. In exchange the VRP requires a good exposure of the brand in their establishments. As you might see the last time you have been clubbing or partying, you can see more and more, Absolut shelves behind the bar.

Finally, to support this new business strategy, the parent company to decide to reduce by 10% the price of his vodka, to become competitive with its direct competitors such as Skyy or Sobieski.

Result: Increased sales by 3% in 2011 after falling by 10% between 2008 and 2010. 

Next Article: The new marketing strategy

Source: Capital.fr

The Selection Criteria of the Consumer.

The first criteria for the purchase of an American wine is the grape variety, it must appear clearly on the label and be highlighted. Then it is the price, the brand, the esthetics of the bottle or label and origin. Since the publication of articles on the "French Paradox", the wine is considered as healthy and beneficial to human if it is consumed moderately. 

The image of French wine is good, France stay in Americans spirits as the "wine country". However, French wines suffer from an offer that still remains inadequate to the market and American taste. French wine to Americans is often an intimidating wine (when it is time to choose): they have a very little knowledge of the segmentation of wines, their labels and are often difficult to correctly pronounce the names of wines. The value of mid-range French wine is generally considered as "disappointing" compared to wines from other European countries or those of the New World. Regarding communication, wine’s industry professionals criticize the French actions which is qualify as “too scattered and brief”. They advise to better target field operations and reach out to more consumers (exposition, promotion, demonstration or degustation).

In summary, French wines retain a potential image that could be better exploited. However, U.S. consumers believe that France is the country that offers the best wines. These wines are synonymous with special occasions, friendliness and holidays.

That was my ultimate presentation of the U.S. Wine market, starting today I will focus on Marketing actions, release of new products and development of new Brands.

The U.S. Wine Market: Consumer Preferences

The consumption of wines according to grape variety and color is relatively balanced, Americans consume almost as many whites wines (44%) than red (45%). Women generally prefer white wine and rosé (11% of the total consumption of wine), while the choice of men is on red wine. On grape varieties, consumers prefer the Chardonnay (60% of consumption), Merlot (15%) and Cabernet Sauvignon (13%). But those recent years, American consumers are looking for new tastes, Australian wines; Chilean and Argentinian are becoming increasingly popular. The reasons for this success are varied: a label more attractive, easy drinking wines, the agreements signed between local producers and American distributors...

In terms of packaging, 96% of Americans prefer glass bottles. Nevertheless, the country is open to intense competition; new formats have emerged as the Bag-in-box 3 and 5 liters. In recent years, sales of bag-in-box 3-liter increased significantly. This is due to the fact that the bag-in-box is cheaper to produce than the bottles and can have an area of information on the packaging ten times larger than a conventional bottle. Once opened, the packaging keeps the wine fresh for several weeks. This advantage makes it possible to attract new consumers. Tetra-Pack packaging also offers brick, other than the bag-in-box. Cans of wine are also available, but sales of these two types of packaging are marginal.

Wine and Spirits: U.S. Consumer Profile

In the United States, 9% of American wine consumers drink wine daily and 29% consume it several times a week. 

Women's consumption represents 57% of the total consumption of wine. Proponents of wine rely mainly in the generation of 50 years and older which represent 50% of wine consumers in the United States. However, a new consumer trend appears in the new generations age drinking, which will continue to support wine consumption in the coming years.

Over 80% of the wines are still consumed by White-American, the remainder divided roughly equally between the Hispanic consumer, and the Afro-American. Americans do not know the designations of origin and focus more attention on the varieties.

Concern for the well-being are increasingly important in American society, so the marketing team emphasizes more on the "good" virtues of wine for health.

Because of the crisis, the home (Houses or Apartments) returns gradually to be the center of wine consumption: in uncertain economic times, the moments of conviviality with family or friends are more at home, a less expensive solution than hanging out. The younger generations are more open to tasting wines and in particular French wines in informal circumstances.

The wine is removed from its  "niche" product positioning- although it is always in competition with other beverages (especially beer) - to attract less than 45 years. This new generation of fans, who discovered the wine at a younger age than their parents, is also more mobile, more informed and curious, due  to the globalization.

Another factor to consider is the growing diversity of the population of the United States, particularly the growing number of citizens of Hispanic origin (16% of U.S. adults). There is greater demand, for example, for sweeter wines  and less alcoholic such as Moscato. Currently, 46% of regular consumers (around 37 million) drink wine more than once a week. Wine Intelligence predicts that by 2020 this figure will reach 50%. Casual fans, who drink wine once a month, up 36% of the market, will also see their numbers increase during the next decade, bringing the total to 100 million regular consumers of wine in 2020.

Consumers looking for a weekly varied range of products in terms of variety, style, and country of origin, especially in a price range between 15 USD (10 EUR) and 20 USD (14 EUR). Occasional users tend to focus on brands with a reliably value . The products with a strong reputation and which project an image of "great value", sold between 10 USD (7 EUR) and 12 USD (8 EUR) per bottle, should attract this group, whose surging consumption becomes also more common.

source: Credit Agricole of Aquitaine

Consumption of Wine in the U.S.

The wine market in the United States is a market of 206 million potential consumers among the population aged over 21 years.

This is a still below from the annual consumption of country such as Italy which are close to 50L/cap. The U.S. has overtaken France in 2010 to become the biggest market for wine consumption from all sources, accounting for 330 million boxes, up 2% compared to 2009 and a market value estimated at 30 billion USD.

Annual wine consumption per capita in 2007 according to FAO (Food and Agriculture Organization): 
- More than 30 liters: France, Andorra, Luxemburg, Italy, Portugal, Slovenia, Croatia, Switzerland, Spain, Argentina, Austria, Uruguay.
- 15 to 30 liters: Australia, Chile, Germany, Hungary, Denmark, Romania.
- From 7 to 15 liters: USA, Canada, South Africa, Norway, Suezia.
- From 1 to 7 liters: Russia, Brazil
- Less than 1 liter: Other Countries

The market for wines and spirits in the United States is booming. Indeed, not only wine consumption per capita increases, but in addition, with a population growth of 2 million people a year, the number of consumers is also increasing.The market does not suffer from a lack of confidence, but because of the crisis, consumers change their consumption habits because it is difficult for them to maintain the same level of expenditure. Wine sales in the segment located 20 USD and more, have registered a fall of 20% to 30% in 2009, while sales of wine costing less than 6 USD a bottle rose of 5% over the same period. However, this decline has been halted and prices started to increase in 2011. The crisis has also had positive effects on domestic consumption, since the weak dollar boosted the prices of imported wines and encouraged consumers to buy American wines and they become more competitive. 

Even if its increasing, the share of wine in total consumption of alcoholic beverages remains marginal, representing less than 10% of the total volume consumed. Beer still dominates the market for alcoholic beverages with more than 82 liters of beer consumed per capita. However, beer consumption tends to decline and, over the years, the wine is gradually gaining market share. The American wines are dominating the domestic market. It accounted for 72% of the total wine consumption in the country in 2010.

Wine sales exceeded of the French market (330 million cases against 320.6 million). The introduction of less known varieties such as Muscat, a sweet white wine whose popularity has exploded in the U.S. is a factor in this rapid increase in consumption. Similarly, champagne and other sparkling wines have experienced an increase of 10%.

Americans tasted more and more wine and the recent economic crisis has not changed their habits. In 2009 U.S. consumption of wine has increased by 0.8%, representing a total volume of 297 million cases of 12 bottles. While most Americans prefer domestic wines, some foreign countries come to take their game such as Chile, New Zealand or Portugal. According to some experts, U.S. consumption of wine should reach a volume of 310 million cases of wine in 2014. 


Source: Crédit Agricole of Aquitaine