Page 27

DrinksTrade29JuneJuly2012

But liquor isn’t fashion I hear you cry. While this is true, all trends are lifestyle choices and people use the brands they drink and the places they drink them to define their persona. As detailed in SCOUT’s recentdrinks trade article, ‘Small Bar, Big Bar’, the on-premise market has experienced a growth phenomenon driven by consumers in search of luxury and a VIP experience. We expect this will continue to flourish, but certainly not because the drinks are cheap: “We usually all like hanging out somewhere nice and drinking great drinks. We may not be able to afford to do it often, but it’s worth it when we do.” The brands that can offer luxury within their target consumers’ frame of reference are the brands that will jump off the shelf. Trading up to a more luxurious is such a prevalent idea that SCOUT used its own unique research nocturnal experience is a trend model to test how consumers really feel about luxury products and that is definitely increasing across whether there’s a trend towards or away from them. Interestingly, society. The more influential what SCOUT noticed is that the concept of luxury is an important one people SCOUT interviews, the to the majority of our respondents, however everyone has their own more frequently we hear this idea definition of luxury from their own frame of reference. Consumers repeated, from high-end inner city do not need to be aware, nor do they necessarily care, about the venues to local RSL clubs. But categories that producers, distributors and retailers place brands into what about retail liquor sales? as long as they resonates with the consumers frame of reference: “I only drink bourbon “I started drinking craft beers like Moo Brew and Endeavour a and I only go top shelf while ago and now I can’t drink the standard beers anymore.” - Jack, or Turkey.” “I’m really into making bourbon sours at home “If I’m having a party right now, always made with Maker’s Mark.” I always buy vodka but I can’t buy the cheap brands. Ultimately, SCOUT’s research points toward a growing trend in the I usually buy Smirnoff.” search for luxury. Of course, we still hear about standard and value products on the shopping list but the desire for indulgence is influencing Premiumisation may not be purchase decisions more and more. Trading up is the goal for the majority a ‘real’ word, but there aren’t of our respondents and, as it’s a growing sentiment, premiumisation many brand managers that don’t is a solid strategy. The brands that can offer luxury within their target talk about it. Liquor companies consumers’ frame of reference are the brands that will jump off the shelf. believe that harnessing the So, if the brand strategists are on the right track, what do we think notion of luxury, especially within this all means for the retailer? SCOUT believes stores need their own crowded categories, is the key premiumisation strategy. On-premise is being driven forward by a thirst to building great brands. for decadence and retail stores should be thinking the same way. Working As Bernard Arnaul, the with brands that are premiumising also makes sense. Brand activities that chairman of LVMH, once said:“ shout, “I’m a luxury within your frame of reference,” will sate this growing Luxury goods are the only area desire and can only drive trade forward. That said, if we end up in a world in which it is possible to make where extravagance becomes the norm, I have to echo Charlie Chaplin and luxury margins.” Premiumisation consider ”The saddest thing I can imagine is to get used to luxury.” drinks trade 27


DrinksTrade29JuneJuly2012
To see the actual publication please follow the link above