Selling “Picks and Shovels”​ to Our Industry

Selling “Picks and Shovels”​ to Our Industry

I take part in monthly calls with an exceptional group of professionals in the spirits, wine, and beer space. The alcohol beverage industry is significant globally and extremely vibrant here in the United States. More on this call and our selling picks and shovels to our industry in a bit. Revenue in the Alcoholic Drinks market amounts to US $261.10bn in 2022. The market is expected to grow annually by 10.51% (CAGR 2022-2025). The market's largest segment is the segment Beer with a market volume of US $111.50bn in 2022. Market share of spirits/wine/beer Projections How might alcoholic beverage sales increase…
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Spirits brands know what they don’t know.

Spirits brands know what they don’t know.

Spirits brands know what they don't know. They just ignore the importance of that knowledge. The alcohol business is one of the few businesses that has no visibility on the end user of their products. Due to our three tier tax system, the tax collection and regulatory framework around liquor taxation and distribution, alcohol brands have little contact with their real customers. You know, the ones that drink their products. In our company's years of business, we have never seen a brand pursuing relationships with their end users. Massive resources are spent on retail, mass media, out of home, distributor…
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Bourbon Brand Owner Now Owns His Customers

Bourbon Brand Owner Now Owns His Customers

Bourbon brand owner now owns his customers. Sam is that bourbon brand owner who now owns his customers. Sam thought he owned his brand's customers. He didn't. He owned a relationship with his distributors. He owned a relationship with a portion of his restaurant and retail buyers. Those business owners taking deliveries from the distributors. In fact, he was 2 to 3 degrees away from owning the relationship with the customers who actually swipe a card and pay to drink the product sold by his "resellers". Agencies have been expert at talking brands and pros like Sam into thinking social…
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Jean’s a restaurant owner. She knows what her customer is worth.

Jean’s a restaurant owner. She knows what her customer is worth.

How does she know? There are a lot of factors and variables at play. One of the better write ups on the topic is from Toast. They happen to have considerable data at their disposal. There are numerous factors that contribute to CLV that should be considered before plugging numbers into your restaurant's CLV equation. Jean leveraged her tech to learn the following. Jean's a restaurant owner. She knows what her customer is worth. They are: Average ticket sizeAverage visits per yearAverage party sizeRestaurant profit margin The formula for calculating a restaurant customer lifetime value is as follows: Restaurant CLV…
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Redefining the Brand Ambassador

Redefining the Brand Ambassador

Shared Spirits is redefining the brand ambassador. Eddie Yoon, a prominent consultant in the world of CPG and previously part of Neilson, states this as the subject matter expert on Super Consumers. "Super consumers aren't random oddballs who buy in bulk. They're emotional buyers who base their purchase decisions on their life aspirations." Think about that. As a spirits, wine, or beer brand, would you rather have brand ambassadors out shilling your brand to people they don't know, don't have a relationship with or care about or would you prefer people who have made their love of your product and…
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Sampling Spirits and Wine. A Guide.

Sampling Spirits and Wine. A Guide.

Sampling spirits and wine. A guide. I recently ask a simple question to a marketer of bourbon. "Does the brand care whether or not it has a relationship with the customer who actually drinks its product?" He immediately said yes. They had set aside a boat load of money to work the direct to consumer market. The way this is currently done is via legal shippers and delivery companies. Examples may include Drizzly or some other company that has built methods to compliantly ship. In other conversations I have been asking, how much do you spend to get someone to…
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Marketing attribution for spirits, wine, and beer brands.

Marketing attribution for spirits, wine, and beer brands.

Marketing attribution for spirits, wine, and beer brands is considerably far behind other businesses. I am a fan of Sudipto Ghosh's definition of marketing attribution. The following definition is found this MartechSeries.com article. "Marketing Attribution is defined as the process of attributing the source and their outcomes in terms of ROI of conversions across multiple campaigns at different customer touch-points. Before getting started with attribution, marketers need to identify these touch points. Each touch point will have its marketing attribution model. These models determine how the organization endorses leads generated from campaign touch points."https://martechseries.com/mts-insights/staff-writers/everything-you-wanted-to-know-about-marketing-attribution/ Seems fairly clear doesn't it? In most cases, the…
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Angel’s Share will apply to alcohol related investments not just distiller’s barrels.

Angel’s Share will apply to alcohol related investments not just distiller’s barrels.

Angel's Share will apply to alcohol related investments not just distiller's barrels. 4% to 10% of unfinished bourbon in the barrel evaporates away. This is known as the angel's share. $1.25 billion has been invested in alcohol related startups up to October 31st, 2021. Why would I suggest that these investments may not perform as expected or hoped? Let's take a look at some details. Online alcohol sales jumped 234 percent year over year in the early weeks of the pandemic, global data analytics company Nielsen Corp. reported in 2020. Months later, many Americans said they were imbibing 14 percent more…
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Spirits and wine sampling should deliver relationships

Spirits and wine sampling should deliver relationships

Spirits and wine sampling should deliver relationships. If it doesn't, why not? Over the course of writing this post, we are asking ourselves, and you, some tough questions. As a spirits brand, are you building relationships that do not require distributor personnel? Are you doing anything differently from the competition to enhance relationships with your key on-premise accounts? Doing things better or leading on price is a non-starter. What are you doing that is different? When the marketing people say they know who buys your product, how do they really know? Sure they know the distributors who buy. They know…
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Sampling as a Service ROI

Sampling as a Service ROI

A wine supplier recently asked us about our Sampling as a Service ROI. We thought it an odd question given the ROI of any supplier spend is largely unmeasured. Ultimately, case counts are the only measure being considered by the spirits and wine industry. However, when you're launching a new category, in our case digital activation, you have to educate people to new language. We're using this post to layout an example of sampling as a service ROI. In the graphic below, you see a table featuring hard metrics, these are measurable metrics. Soft metrics are important and in this…
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