spirits

Glenfiddich Events, Ads Hit Major Metros

Glenfiddich

Single-malt Scotch brand Glenfiddich is launching a multimillion-dollar advertising and marketing campaign. The campaign, focused on a visual creative and the tag "One Day You Will," combines out-of-home, print and targeted online media buys with a series of events in key U.S. markets.

The creative, via London-based Leagas Delaney, features photography of scenarios that are intended to inspire awe around themes of exploration and achievement. The new positioning will include a series of billboards in New York's Times Square, as well as in central locations in Dallas, Los Angeles and Chicago.

Ads will appear in national and regional publications including major lifestyle titles, as well as non-traditional outlets whose editorial themes are about exploration and adventure.

Glenfiddich, a division of William Grant & Sons, which has a U.S. distribution arm, is also launching a dedicated online presence and a digital microtargeting campaign driving traffic to www.glenfiddich.com/explorers.

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Accompanying the ad effort will be high-end experiential programs in New York, California and Dallas hosted by Glenfiddich master distiller Brian Kinsman and brand ambassadors. The October launch will be rolled out nationwide throughout the remainder of 2010 and over the course of 2011, and will include events, brand partnerships and additional marketing activities.

A new study from market consultancy Mintel says sales of spirits will dip just under half a percent this year to $38 billion -- although the firm sees 15% growth, inflation adjusted, through 2015. Mintel says growth will come from retail sales, which represent 43.6% of total spirits sales this year. But consumers appear to be trading down.

The firm quotes data from the Distilled Spirits Council of the U.S., an industry group that reports that while value brands gained 5.5%$ in sales volume last year, sales of premium spirits fell by 3.5% and super premium by 5.1%. Among spirit drinkers, people over 65 -- 12% of the market -- are the most brand loyal and least likely to trade down, per Mintel.

Mintel sees Scotch rebounding this year, and says the segment is dominated by Brown-Forman Beverages, with 38.8% share in 2009. Beam Global Spirits & Wine -- at second place and the largest American whiskey supplier -- saw its total 2009 sales fall 0.4% while the company's market share slipped by 0.1 of a percentage point during 2008-09, per Mintel.

Brands could be hurt long-term by price competition, "particularly during the last three months," says the firm. "Savvy retailers are staging expert tastings, special events and mixology and food-pairing classes to introduce shoppers to new and high-end products," says the report, which notes that last year Brown-Forman started ramping up mobile marking.

"Diageo's spending on digital media in the U.S. will increase to about 21% of total marketing in 2010, up from 16% in 2009," says the report. New initiatives include an application for Apple's iPhone that allows the user to scan the barcode of a bottle of Smirnoff or Tanqueray gin and be shown cocktail recipes based on that liquor.

With NASCAR attendance and TV ratings down, Jack Daniel's and Jim Beam pulled their sponsorships, while Crown Royal is staying the course. Mintel says sponsorship costs range from $8 to $10 million.

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