Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
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Gallo's E&J Brandy is the top-selling domestically produced brandy in the U.S., with sales of more than 3 million 9-liter cases nationally (a 0.5% gain last year). sure demand here is met first. While the Cognac drinker is difficult to switch to other brands, the brandy fan is more susceptible, especially to pricing, says BevMo!'s Carmon, and regionality is a consideration – in Northern California, Korbel does better while in Southern California and Arizona, it's E&J, for instance. E&J dominates its sub-category, com- manding about 40%, with E&J XO Brandy up 41% recently, says Gerard Thoukis, senior director of marketing, E&J Gallo Winery. Keeping the brands moving is based on halo brand positioning, since the distribution and consumer targets are similar, he says. "This has allowed us to become more efficient and targeted with our advertising and activation investments. It is important to note that despite a halo communication platform for the family, the individual tiers deliver distinct- ly different styles of brandy." But here, too, change is inevitable, he notes. "The retail environment, through new entrants and innovation, is changing frequently. Therefore, we place just as much focus and effort to remain relevant among our customers as we do our consumers," he says. Opportunity in Cocktails C ocktails present an opportunity for both brandy and Cognac makers, says Joanne Vinci, market- ing manager for Paul Mason. "There is oppor- tunity to take advantage of the current trends toward more premium spirits and expand our VSOP blend busi- ness. Additionally there is also opportunity to leverage the current cocktail renaissance and present new usage occasions for Paul Masson Brandy to an expanded audi- ence beyond our core consumer base." "Among brandy consumers specifically, we are focusing on the popular "mixability" theme that we hope will aid in opening up new usage occasions for brandy," agrees Thoukis. So important is cocktail culture to newer expressions that the latest Ferrand expressions, 1840, was created to mimic the style of Cognac more common in the late 19th century when Cognac-based cocktails were among the most important. Alexandre Gabriel, president and owner of the brand, engaged cocktail writer David Wondrich to develop the flavor profile. "Retail is extremely important to the Cognac business and Ferrand in particular, but it's still true today that bartenders and cocktail bars are an important place to build sampling and awareness of brands, whether from a large house or small." Even though D'Usse's initial product is a VSOP, Woodyer says breaking the brand via bars and cocktails is an important way to drive sampling and awareness, though retailers will get their chance to stock the stylish bottle. While brandy marketers hope that home consumers employ their wares in cocktails as well, keeping in con- tact with their base is crucial, marketers say. Like most Christian Brother Honey Brandy is one exam- ple of producers using flavor to inject more excitement into the category. brandies, Paul Masson is focusing on solidi- fying relationships with their core con- sumers – in their case, through social media and the Paul Masson Facebook page, with a fan base of more than 114,000. The strength of the Northeast and Upper Midwest for brandy brands means niche focusing, like Christian Brothers' efforts to connect with ice fishermen with retail dis- plays and promotions. Above all, keeping consumers interested at a time when the introduction of new spir- its is at an all-time high is essential, says Thoukis of E&J, "While our advertising and promotional investments remain focused within the four walls of the retailer, we have started to invest additional funds in digital to develop closer relationships with consumers. Additionally, we will continue to pursue local market activations through sports and music. As the market leader, it is imperative to continue to communicate with the consumer outside the point of purchase to ensure the brandy cat- egory remains relevant and top- of-mind." s Paul Masson Grande Amber Brandy remains the second best-selling domestic brandy in the U.S., with sales of 1.3 million 9-liter cases. Beverage Dynamics • www.beveragedynamics.com • November/December 2012 • 17