Bulleit Launches New “Local Bar Sundays” Hospitality Mission at Tribeca Festival and Says “First Drink Is On Us”

Posted on June 10, 2021 by Joel Whitaker

Bars across the U.S. suffered mightily during the Covid crisis.  But only consumers who visit their favorite local New York bar or restaurant during the Tribeca Festival through June 20 will be reimbursed online for any Bulleit, Johnnie Walker, Crown Royal, Ketel One or Don Julio cocktail over $10 by participating in the “First Drink Is On Us” $50,000 virtual bar program.

Diageo plans on expanding the program across the U.S. in coming months, a spokesman told us.

New York consumers will be reimbursed $10 via Venmo for uploading a receipt to FirstsOnUs.com after purchasing a qualifying brand cocktail during the designated period. Participating consumers are encouraged to remember to tip their favorite bartenders.

“At the heart of every community is a gathering place – often in the form of a bar or restaurant,” said Sophie Kelly, SVP-Whiskey at Diageo North America. “As a brand focused on building community, we’re thrilled to bring our Local Bar Sundays initiative to New York in partnership with Tribeca Festival to help reignite excitement and encourage folks to get back to their local establishments that they know and love.”

As part of the Local Bar Sundays and Tribeca Festival programming, Bulleit will also take over New York City with an out of home and social media campaign, encouraging consumers across the city to make every Sunday a Local Bar Sunday with the “first drink on us” when they head to their local bars.

As the official Bourbon of Tribeca Festival, Bulleit will also have an on-site presence with a variety of touchpoints and activations including:

“Reigniting NYC: The Future of Hospitality in a Resilient City,” an official Tribeca Talk, moderated by American actor, writer and director, Colman Domingo, will unite innovative leaders and local New Yorkers in hospitality, spirits, and film to ignite conversation around the road to recovery for the hospitality industry and inspire the community to get involved as they discuss the path forward. The talk will take place on Sunday June 13. Festival-goers can reserve a ticket here to join the conversation.

Invite-Only: Italian Studies Film Premiere Official Afterparty: will honor the work of the creative cast and crew of the highly anticipated film, Italian Studies. The party will take place following the film’s world premiere on June 12.

Bulleit Frontier Whiskey Bar: ticket holders can enjoy bespoke Bulleit Bourbon and Bulleit Rye New York-inspired cocktails throughout the festival when they attend a Tribeca Talk, podcast premiere or immersive event.

Invite-Only Bulleit Frontier Whiskey Bar at the Diageo Cocktail Garden: Bulleit Frontier Whiskey will host actors, filmmakers and celebrities at the bar to enjoy cocktails throughout the festival featuring the brand’s award-winning Bulleit Bourbon and Bulleit Rye and Bulleit 10 Year-Old.

The Local Bar Sundays mission comes on the heels of the brand’s initial commitment of $250,000 to support the North American Hospitality Industry as part of the Bulleit Frontier Fund. This additional $50,000 pledge made by Bulleit Whiskey, Johnnie Walker, Crown Royal, Ketel One and Don Julio, Diageo brands, will continue to support industry recovery.

 

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Bill to Replenish Restaurant Revitalization Fund Introduced

Posted on June 10, 2021 by Joel Whitaker

There wasn’t enough money to take care of the restaurants harmed by the Covid pandemic.  That became clear when more than 362,000 eligible businesses applied for assistance from the $28.6 Restaurant Revitalization Fund Replenishment Act.

Yesterday (6/10) U.S. Rep. Earl Blumenauer (D-OR), US. Rep. Brian Fitzpatrick (R-PA), U.S. Senator Kyrsten Sinema (D-AZ), and U.S. Senator Roger Wicker (R-MS) introduced legislation to replenish the fund and to enable the Small Business Administration to continue outreach efforts.

“The extraordinary demand for the Restaurant Revitalization Fund shows that many more businesses still desperately need help,” Blumenauer said. “We must work quickly to replenish this critical relief program and ensure all local restaurants get the support needed to keep their doors open, pay their staff, and support the industry’s trillion-dollar supply chain that impacts every sector of our economy.”

The Distilled Spirits Council of the U.S. (DISCUS) was quick to endorse the measure. “The hospitality industry has been devastated by the pandemic, and the path to recovery is far from over,” said Christine LoCascio, DISCUS  Chief of Public Policy. DISCUS previously advocated for the inclusion of distilleries with tasting rooms as an eligible entity in the original RESTAURANTS Act in 2020 and the initial funding provided through the American Rescue Plan Act earlier this year.

“This legislation provides much-needed support to restaurants, bars and distilleries as they work to get back on their feet. We applaud Reps. Blumenauer and Fitzpatrick as well as Sens Sinema and Wicker for their continued support of our nation’s hospitality industry and for their introduction of the Restaurant Revitalization Fund Replenishment Act. We urge Congress to move quickly to enact this important legislation,”  LoCascio said.

“Arizona restaurants fuel jobs across our state, and these employers need support now more than ever. Our Restaurant Rescue Plan is getting Arizonans back to work and ensuring local Arizona restaurants can keep their doors open, and more resources are needed as we continue fueling a full economic recovery,” said Sinema.

“The Restaurant Revitalization Fund provided a lifeline for America’s small and independent restaurants,” Wicker said. “Our restaurants are now beginning to recover from a year of lost revenue, but many establishments are still hurting and have not been able to access aid for which they are eligible. Replenishing this fund would help restaurants, their staff, and the broader food supply chain as they continue to get back on their feet.”

“The Restaurant Revitalization Fund is a vital, financial lifeline for our independent, local restaurants that were hit hard by the COVID-19 pandemic,” said Fitzpatrick. “Due to the overwhelming demand for relief, Congress must work together on a bipartisan basis to replenish the Restaurant Revitalization Fund as soon as possible. The mom and pop diners and delis on Main Street all across America still need our help, and we must act urgently to save our local restaurants.”

The Restaurant Revitalization Fund was enacted as part of the American Rescue Plan Act. It provided $28.6 billion in grants to help restaurants, bars, food trucks, caterers, tasting rooms, and taprooms recover from the COVID-19 pandemic.

Within three weeks of the program’s opening, SBA received more than 362,000 applications requesting more than $75 billion in funding – nearly triple the available funding – leaving nearly $50 billion in outstanding need. Now, the lawmakers are working to quickly pass the Restaurant Revitalization Fund Replenishment Act to ensure that all eligible restaurants can get the help they need.

The U.S. restaurant industry has suffered a quarter of all job losses during the pandemic and restaurants and bars have lost more than $280 billion in sales. More than 90,000 restaurants have permanently closed, while hundreds of thousands more have significantly scaled down their operations.

Even with months of positive job growth, restaurant and bars are still nearly 1 million jobs below their pre-pandemic averages. Dining restrictions remain in more than 20 states and consumer hesitancy threatens to prolong the hardship with 36% of diners saying they won’t resume their regular dining behavior until at least after September 2021.

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NABI: Harm from Retaliatory Tariffs Becoming Readily Apparent

Posted on June 10, 2021 by Joel Whitaker

National Association of Beverage Importers President Robert M. Tobiassen highlighted the ever-growing number of signatories to statements opposing these punitive tariffs on unrelated products since before the imposition of the Airbus dispute tariffs in October 2019, and the steel and aluminum tariffs in June 2018.

“The realization of the widespread harm done to economies, jobs, consumers, and all levels of the manufacture, trade, import, distribution, and retail of a vast number of products and commodities has become readily apparent,” said Tobiassen and “the repositioning of the U.S. trade pillars to include a worker-centric theme to protect and create jobs is dead-on consistent with removing the tariffs on unrelated sectors.”  Moreover, NABI pointedly noted in its letter, dated July 7, 2020, on proposed tariffs in the French Digital Services Tax (DST) investigation:

“There are multiple principles and precedents in trade disputes for limiting trade remedies to the same sector as that of the underlying violation, nullification, or impartment was found.  These include Article 22.3 of the WTO Dispute Settlement Understanding and the Trade Act of 1974 requirement that a retaliation list include reciprocal goods.  The Trade Act of 1974, 19 USC 2426(b)(2)(F), also focuses on reciprocal goods.  More specific to wine, we note that the World Wine Trade Group of which the United States is a member and the U.S delegation is headed by a USTR agricultural official has adopted a position that wine should be not targeted for retaliation in a trade dispute involving products other than wine.”

“Simply put” said Tobiassen “what we are asking for is consistent with international agreements and U.S. trade laws.”  He added “if 113 organizations on both sides of the pond can reach agreement on a basic principle of appropriate trade sanctions, then why should it be that hard for the United States, the European Commission, and the 27 Member States of the EU to conclude the same?”

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Even Cranberry Growers and Nutritionists Want Tariffs Removed on Sectors Not in Trade Disputes

Posted on June 10, 2021 by Joel Whitaker

Some 113 organizations — including the American Cranberry Growers Association and the Council for Responsible Nutrition — joined in a joint statement calling for the permanent removal of tariffs on sectors unrelated to the ongoing transatlantic trade disputes.

The statement says the organizations would like to see the tariffs removed before July 11.  But if more time is needed for negotiation, “our sectors request advance notice that the tariffs will not return, even if there is a need for additional time to negotiate, to account for shipping times between the EU and the U.S.

Bev/al organizations signing the statement include American Beverage Licensees, American Craft Spirits Association, American Distilled Spirits Alliance, American Distilling Institute, American Single Malt Whiskey Commission, Arizona Craft Distillers Guild, BNIC – Bureau National Interprofessionnel du Cognac, Colorado Distillers Guild, Connecticut Spirits Trail, Distilled Spirits Council of the United States, Distillers Association of North Carolina, Drinks Ireland, FEVS – Fédération des Exportateurs de Vins & Spiritueux de France, Florida Craft Spirits Association, Idaho Distillers Association, Illinois Craft Distillers Association, Iowa Distillers Alliance, Kentucky Distillers’ Association, Louisiana Distillers Guild, Maryland Distillers Guild, Michigan Craft Distillers Association, Montana Distillers Guild, Napa Valley Vintners, National Association of Beverage Importers, National Association of Wine Retailers, NY Wine Industry Association, Ohio Distiller’s Guild, Oregon Distillers Guild, Oregon Wine Council, Pennsylvania Distillers Guild, Tennessee Distillers Guild, Texas Distilled Spirits Association, The Maryland Wineries Association, U.S. Wine Trade Alliance, United States Bartenders’ Guild, Virginia Distillers Association, Washington Wine Institute,  Willamette Valley Wineries Association, Wine & Spirits Wholesalers of America, Wine and Spirits Shippers Association, Wine Institute, and WineAmerica.

 

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Marketers Should Focus More on Long-Term Brand Building, Study Says

Posted on June 10, 2021 by Joel Whitaker

Nielsen has come out with an interesting report that sheds some light on balancing brand building and quick sales.  It notes that when Covid burst upon the scenes, marketers of all sizes (including Coca-Cola) cut back on brand-building seeking quick sales through conversion marketing.

“Conversion-oriented marketing has been the marketing industry darling for some time. It’s attractive because it drives sales in this quarter, not the next—and immediate gratification carries weight,” the report says.  But it goes on to add:

“Conversion-dominated strategies stand in opposition to numerous academic studies that claim upperfunnel marketing is the best path to growth. The Ehrenberg-Bass Institute, for example, has long argued that awareness (or “mental availability”) is the best path to customer acquisition, which is in turn the only true path to growth. Some brands have learned the value of awareness the hard way. A wide range of companies across categories have made public acknowledgments of missteps in forsaking brand building in the name of  increasing focus on activation. Gap Inc., Adidas, TripAdvisor and Booking Holdings (formerly Priceline) are just a few of the organizations that came to these realizations, citing the need to do more to create and maintain long-term equity.”  Among Ehrenberg-Bass’s sponsors:  Diageo.

The Nielsen report notes that marketing accounts for 10%-35% of a brand’s
equity. Equity also comes from visibility, such as seeing a product on the shelf or signage on a storefront, as well as regular product usage, such as the subtle reminder about an auto brand every time you drive your car. Brand owners often take these non-marketing sources of equity for granted, but today, that’s a risky proposition.

One problem is that fewer people are seeing your logos inside stores, because they aren’t driving to stores and shopping inside them as often.  Another problem is that the online “shelf” is infinite, which makes it really hard for your product to stand out.  Finally, supply chain disruptions are having an impact on brand equity.

In the U.S. consumer packaged goods (CPG) market, consumers say that
4.3% of their brick-and-mortar purchases involve a brand they had not purchased before, according to Nielsen Commspoint. For online purchases, the metric jumps to 12.1%. The increased rate of new brand purchase is entirely at the expense of brands that consumers use regularly, the Nielsen report says.

That presents marketers with a quandry.  For example, the report notes that consumers “believe television is among the best channels for becoming aware of a brand. Yes, TV is, on average, one of the most effective channels for driving long-term sales lift, but every campaign is different—and so is the effectiveness of TV across them. We found that in 25% of Nielsen marketing mix studies, TV was in the lowest quintile of all channels in producing long-term effects. In a separate 25%, it was the very best.”

To add to the quandry, Nielsen found that “lower-funnel messaging has a higher short-term impact than upper-funnel messaging, but it doesn’t deliver
much additional value in the long term. Upper-funnel messaging delivers slightly lower short-term results, but it delivers meaningful additional
value in the long term.”  In other words, you may be damned if you do, and damned if you don’t.

Some research suggests 60% of your efforts should be devoted to long-term brand building and 40% to short-term efforts.  But Nielsen you shouldn’t focus on that, but rather “assess their brand-building efforts and ensure that they insert a balanced share of voice in both upper- and lower-funnel messaging.”

The study is fascinating, and, in our opinion, worth reading and pondering.  You can access it here.

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For 1st Time in 26 Years, an Alcohol Brand Tops IRI’s Food, Beverage Pacesetter List

Posted on June 9, 2021 by Joel Whitaker

Bud Light Seltzer was named IRI’s No. 1 New Product Pacesetter for the entire food and beverage category.  It’s the first time a bev/al product has earned that position.

One trend in this year’s Pacesetters is notable consumer interest in carbonated beverages, including sparkling waters and hard seltzers. Of the top 25 food and beverage Pacesetters of 2020, IRI said, 10 are beverages. Bud Light Seltzer, which launched in January 2020, took the No. 1 spot, followed by Truly Lemonade and Mtn Dew Zero Sugar. All of the top three food and beverage Pacesetters generated more than $100 million in sales in IRI’s measured multi-outlet markets.

Beverage alcohol products accounted for eight of the 27 beverage Pacesetters and generated a massive $547 million compared to last year’s six that brought in $198 million, IRI said. In 2020, beer, wine and spirits reigned supreme as consumer celebrations and entertaining moved in-home. New product launches in this space made a huge splash, generating a combined 44% of Pacesetter beverage dollars compared with 17% last year.

Bud Light Seltzer launched in January 2020 – two months before the pandemic set in. The brand had to adapt to an extremely fluid environment and find new ways to connect with fans across the country with new marketing tactics such as virtual livestream concerts and gaming competitions, and lean heavily in connecting with fans via social media channels. 

As one example the company cited, in August 2020 Bud Light Seltzer announced via Instagram they were hiring the first ever CMO aka ‘Chief Meme Officer.’ The brand received an incredible response from fans getting nearly 3,000 submissions for the role in less than 48 hours, Bud Light Seltzer said. It was a fun and unique way to engage the current Bud Light fan base while also attracting approximately 2,000 new followers to the Bud Light community on Instagram as a result.

Innovative, fun flavor offerings such as the wildly popular limited-edition Ugly Sweater Pack release around the holidays (featuring Peppermint Pattie flavor), the limited-edition Out of Office Pack launched this spring (featuring Watermelon Mojito flavor), and most recently, the limited-edition Retro Summer Pack keep consumers heading back to the shelves to enjoy new seasonal offerings, brand officials say.

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