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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44 Beverage Dynamics • November/December 2015 www.beveragedynamics.com Brandy/Cognac LEADING BRANDS OF BRANDY & COGNAC, 2013-2014 (9-LITER CASES) '13/'14 BRAND ORIGIN SUPPLIER 2013 2014 % CHG E & J USA E & J Gallo Winery 3,150 3,135 -0.5% Hennessy France Moet Hennessy USA 2,390 2,575 7.7% Paul Masson Brandy USA Constellation Brands 1,345 1,560 16.0% Christian Brothers USA Heaven Hill Brands 1,135 1,156 1.9% Remy Martin France Remy Cointreau USA 621 626 0.8% Courvoisier France Beam Suntory 412 440 6.8% Korbel USA F. Korbel & Bros. 325 298 -8.3% Coronet Brandy USA Heaven Hill Brands 88 88 0.0% Salignac France Beam Suntory 104 87 -16.3% St. Remy France Remy Cointreau USA 87 80 -8.0% TOTAL LEADING BRANDS 9,657 10,045 4.0% OTHERS 1,038 1,025 -1.3% TOTAL BRANDY & COGNAC 10,695 11,070 3.5% Source: Liquor Handbook 2015. For more information, visit www.bevinfostore.com. MORE! For more value-added packaging examples, see the Holiday Merchandising Guide in this issue. "We don't see much of an uptick in sales be- cause of the holidays." "Brandy is not as seasonal as people think," opines Heron at Copper & Kings. Sales are spread out fairly evenly across the year, he says. "We do not focus on special occasions. We focus on the consumption opportunities from seasonal mixology–like highballs in summer, Corpse Reviver for Halloween or Jack Rose for fall." "We do not do any specifi c holiday pro- motions on a national level, but maintain a consistent brand presence throughout the year," says Vicky Arcos, brand director at Paul Masson. "Paul Masson Grande Amber Brandy has maintained a consistent pres- ence in the domestic brandy segment and has been very consistent in sales throughout the year as the number-two brandy, with a 21% share of the domestic brandy category. So while the fourth quarter is important, our sales are not reliant upon holidays." ENCOURAGE THE SPLURGE Consumers are primed to spend during the holidays; the trick is to get them to open their wallets in the store. For retailers, that means start early, taking advantage of VAPs and other tools from producers and distrib- utors, refreshing shelves and displays and creating a festive atmosphere in the store. Take advantage of sampling to gain trial and, most importantly, educate and moti- vate staff to hand-sell. "Right now we are fi guring out what's going to be on the fl oor and how to dress it up to look attractive and festive," Kres- ton says. He is also deciding about his pricing strategies and printing up shelf talkers rather than relying on hand-written sig- nage. Early on in the season, Kreston's will run a few one-day sales for customers who are already in the mindset to buy for the holidays. "They can drink their purchases right away or save them for the holidays; wine and spirits never go bad," he notes. Beyond the fl oor displays, a number of brands offer installa- tions (where legal) to help retailers spruce up for the holidays. For example, each year E&J Brandy offers a holiday-focused dis- play piece, Thoukis says. This year it is a fi replace that "fl ickers" when customers walk by. When it comes to gift packs, be sure to offer a range of price points to fi t every pocketbook. Not just the fancy bottle of XO, but VSOP and VS, as well. Special services can be a bonus too. Kreston offers free gift wrapping. And Hennessy has extended its engraving program nationally, allowing customers to person- alize their Cognac gifts. "Hand-selling is key," says Herlofsky at Liquor Boy. Most customers are not used to spending $75-$100 for a bottle of Co- gnac. "They want to know that they are getting their money's worth and feel comfortable with their purchase," he explains. It is also a situation for upselling—if the salesperson can clearly ex- plain the difference between, say, Cognac blends from Grande Champagne versus Borderies. "The staff has to be knowledgeable and stores have to make an investment in education," insists Herlofsky. "You need to make that personal connection, which oftentimes is what keeps customers coming back." BD THOMAS HENRY STRENK is a Brooklyn-based freelance writer with over 20 years experience covering the beverage and restaurant industries. In his small apartment-turned-alchemist-den, he homebrews beer kombucha, and concocts his own bitters and infusions. Brandy/Cognac Brandy/Cognac