Beverage Dynamics

Beverage Dynamics July-August 2015

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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RTD Cocktails www.beveragedynamics.com July/August 2015 • Beverage Dynamics 47 prevalent within RTD marketing. With names like Buttery Nipple and Skull Crusher, Twisted Shotz and Double Barrel stand out from more traditional drinks. "I think part of the recent rise in RTDs is people's openness to new fl avors, and being irreverent with spirits," Heyworth says. "People like hav- ing a little bit of fun. They're not hung up on Old-World myths about how you're supposed to drink spirits." Twisted Shotz are diverse in fl avor and relatively low in ABV. This plays naturally into the sort of fun, shared experience popu- lar among Millennials. "They're a bit like a box of chocolate in our mix pack," Heyworth says. "You can compare who's had what and what they think about them. That's how women shoot. They say, 'This shot was deli- cious. You want to try one?'" Social media remains an ef- fective strategy for connecting with Millennials, partly because it appears indirect. "We try to be organic with our marketing, so that it feels like they're discovering it on their own terms," Vieira says. "Of course, with Millennials, you have to be on Instagram." Bauer agrees: "Millennials don't want marketing that tries to convince them that something is healthy. They want to be talked to straight. That's why we don't try to force our prod- ucts down anyone's throats. We really want people to come across our products organically. We just try to fi t in." To boost the online pres- ence of LIQs, Bauer buys local- ized ads on social media. "We do a lot of geo-targeting," he says. "We will fi nd a cluster of stores that all sell our products, and then we use that zip code for our Facebook advertising. That way, we can cater directly to our demographic. We will let them know what stores are doing tastings or having sales. It also drives sales at the stores themselves, which creates a nice win-win scenario." The connection factor is key on social media. "We try to en- gage with the customers and have them join into the conver- sation about our product," says Bauer, of VO|CO. "We hashtag (#) the product, and obviously we want customers to do so as well. You can create a one-on-one conversation that way. That's really important for us, because we're new to market, "I think part of the recent rise in RTDs is people's openness to new fl avors, and being irreverent with spirits. People like having a little bit of fun. They're not hung up on Old-World myths about how you're supposed to drink spirits." — Peter Heyworth, VP of marketing for Independent Distillers LEADING BRANDS OF PREPARED COCKTAILS (Thousands 9-Liter Cases) 12/13 Brand Supplier 2013 2014p % Chg Jose Cuervo RTD Proximo Spirits 940 905 -3.7% Jack Daniel's Country Cocktails Brown-Forman Beverages 753 805 6.9% Chi-Chi's Sazerac 375 376 0.3% Bacardi Party Bacardi USA 352 320 -9.1% Kahlua Drinks To Go/RTD Pernod Ricard USA 311 310 -0.3% BuzzBallz BuzzBallz LLC 138 277 ++% Captain Morgan Prepared Cocktails Diageo 355 265 -25.4% 1800 Ultimate Margarita Proximo Spirits 220 255 15.9% Skinnygirl Beam Inc. 364 150 -58.8% Club Cocktails Diageo 335 145 -56.7% Total Leading Brands 4,143 3,808 -8.1% Others 1,132 1,052 -7.0% Total Prepared Cocktails 5,275 4,860 -7.9% (++) Greater than 100%. Source: The Beverage Information & Insights Group. To learn more visit www.bevinfostore.com

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