Surprising things often happen at the TFWA World
Exhibition for the duty-free industry – and so it did this year for Bacardi. Executives at the Bermuda-based
liquor group met the event's 2014 keynote speaker and former US Secretary of State
Colin Powell, who stopped by the Bacardi stand on October 27. He met Aude
Rocourt, regional director of Global Travel Retail Europe, and shared his
admiration for the Bacardi brand and family despite his Jamaican heritage and
natural affinity with rum brand Appleton.
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| Bacardi's Aude Rocourt meets Colin Powell |
Later in the week, Bacardi shared its whisky know-how
with a group of journalists during a tasting of the group’s growing portfolio.
See the journalists in action below, savouring brands such as Dewar’s, Aberfeldy,
Glen Deveron, Craigellachie and Aultmore (all documented on the MJ Rabbit blog).
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| Bacardi hosts a whisky tasting at the TFWA World Exhibition |
In addition, Bacardi’s travel-retail chief Mike Birch laid
out his plans for whisky category growth in the channel. Here’s what he said:
“Last year, Bacardi Global Travel launched its category
strategy for growth. This was underpinned by huge investment into bespoke world-class
traveller research targeted at unlocking barriers to purchase. We developed a
specific category vision against traveller missions to understand the biggest
opportunity areas. We then aligned all of our brand/portfolio initiatives with
a clear platform to grow the category and to unlock new shoppers and new
occasions. Premiumisation, advocacy and enhanced visibility across our core
categories are the pillars to our ambition.
Vodka - Grey Goose drives growth
“Vodka is the second-largest driver of spirits and
growing vodka will deliver total spirits growth. In 2013 vodka grew three times faster than
spirits and three times more than its fair share. It delivered $17m year-on-year in turnover.
Super-premium vodka grew the category 30%. The main driver of this growth was
Grey Goose, delivering over two-thirds of all vodka growth.
Gin - Bombay Sapphire the number one brand
“Gin is a relatively small category with 3% value share.
However, it is growing three times more than total spirits and is growing more
than four times its fair share. Bombay Sapphire is the number one brand
in value and volume, delivering over 42% of the category growth.
Rum - leading through premiumisation
“Rum is performing behind the domestic market, where it is
the third-largest spirits category, representing 12% globally. However, rum only
has 5% share of spirits in global travel retail. Additionally, 16% of sales are
high-value/premium and over, compared to 70% of the total spirits market [in
travel retail as a whole]. As market leader we will lead the category into
growth through premiumisation and shopper education and communication.
Whisky - number three Scotch whisky player
“Bacardi is a sleeping giant in whisky with a strong
ambition, supported by significant aged inventory, growth capacity and market-leading
shopper research investment. Our ambition is demonstrated by our credentials:
Number three Scotch whisky player globally with our portfolio
of Dewar’s/William Lawsons/Malts (Source: IWSR 2013 sales by value);
Number one Scotch brand in US domestic (Dewar’s White
Label, sales by volume);
Number one Scotch whisky company in Russia domestic (sales
by value) with William Lawsons and number 1 whisky in Russia domestic (sales by value)
– the fastest-growing whisky brand worldwide;
Number four malt producer worldwide (on a production capacity
basis).
Malt whisky consumer research
"Over the past two years we have heavily invested in
shopper and consumer research to understand the growth potential of the
category. We know that many shoppers are moving into the second stage of luxury,
wanting lesser-known brands with strong quality cues for their whisky choices.
Stage one is still important in offering the well-known brands. However, stage two is where the incremental growth can come from.
"Malts supports the emerging second stage of luxury trend,
with discovery malts growing twice as fast as mainstream, and we estimate that
by 2015 half of the Scotch growth will come from malts, particularly discovery
malts.
"There are three drivers that these second stage luxury
shoppers need:
1 – Age statements
2 – Assured quality standards (e.g. Gold award for Aberfeldy)
3 – Engaging brand stories for them to share with friends
at home i.e. ‘’did you know…’’
Unlocking category growth
"The Bacardi portfolio will unlock this incremental
category growth in three ways:
1 – Activating the second stage of luxury through
permanent merchandising: The John Dewar & Sons Fine Whisky Emporium;
2 – We will launch innovation, bringing you additional
age statements in 15yo and 30yo as well as additional craftsmanship in 12yo. We
will launch the last of the great malts through five brands: Aberfeldy, Glen
Deveron, Aultmore, Craigellachie and Royal Brackla;
3 – We will drive advocacy and engage shoppers with the
John Dewar & Sons portfolio, through a tasting flight experience of
different ages, which is guaranteed conversion of a higher age statement.”
Innovation will accelerate in 2015
Summing up the category vision, Birch concluded:
"It's an immensely exciting time for Bacardi in travel retail right now. This
year, we've already launched a stronger stream of innovation than ever before
to further drive our performance across the category and we have further
original launches to come.
“Everything we do is inspired by our insight programme
and is not simply about creating ‘new news’ for the sake of it but is designed
to deliver genuine change and growth for the category, actions that truly
resonate with the consumer. The results seen so far from this strategic
approach have been stunning and we're especially proud of how Grey Goose VX and
the single malts are performing, particularly as customers and shoppers have
responded so enthusiastically and are eager to see more from us.
“Innovation in its broadest sense will accelerate in 2015
with our range developments and new products, including further consolidation
of our rejuvenation of the whisky category. We'll be delivering creative retail
and advocacy solutions for airports and other markets, including cruise, to
deliver category growth as we engage with shoppers and educate them by sharing
the unique personality and engaging stories behind each of our brands,
especially in complex categories such as rum and malts.
“The John Dewar & Sons Fine Whisky Emporium is a
prime example of how we can bring the brands and consumer together in a new way
with an experience specifically tailored to consumer needs.”
