COMMENT: Allied Domecq freezes out the competition
Allied Domecq has unveiled a new marketing campaign for Stolichnaya vodka in the US.
Allied Domecq's popular Stolichnaya premium vodka brand is embarking on an aggressive new marketing campaign. The multi-million dollar "Frozen" promotion targets the young, male consumers most sought after by beer companies. As younger consumers increasingly choose spirits and sweeter drinks over beer, brewers may yet find themselves catching a cold from the likes of Stolichnaya.
The spirits and wine giant has announced a new, multimillion-dollar marketing campaign for Stolichnaya, its premium vodka brand. Dubbed the "Frozen" campaign, the promotion features a series of print and radio advertisements, billboards, and point-of-purchase materials implying that the vodka is best served at frosty temperatures. The promotion serves as a reminder of the liquor's Russian heritage, and further positions the brand as an upscale beverage for savvy, young, male consumers.
The new ad campaign coincides with a steady shift in the alcoholic beverage market. Datamonitor research shows that beer volumes in the US increased only 0.2% in 2003, compared to a 2.4% growth for spirits. Brewing companies are seeing sales flatten with consumers showing increasing preference for sweeter, more "refined" spirits to beer. Flavored vodkas with hints of vanilla, raspberry, orange and other fruits are gaining ground, while sweetened, energy-boosting mixers such as Red Bull and "malternative" beverages have met with similar success. Indeed, since its acquisition by Allied Domecq in 2000, Stolichnaya itself has seen strong growth.
But breweries are putting up a fight to keep beer on top. Anheuser-Busch recently announced the introduction of a new, fruit-flavored beer. Dubbed "B-to-the-E," the beverage also contains caffeine, ginseng and guarana. The new drink will be aimed at consumers aged 21 to 27, and will be packaged similarly to Red Bull. The sweetened, energy-boosting drink will not be officially released until November.
With its "Frozen" campaign, Stolichnaya is embarking on an aggressive marketing strategy to reach out to younger consumers and take advantage of spirits' current momentum over beer. Indeed, "Frozen" print ads will run in magazines such as FHM, Maxim and Playboy, whose readerships are mostly males ages 21-29 - one of the strongest demographics for beer drinkers. As Allied Domecq targets the brewers' typical demographic, it looks as if beer may be left out in the cold.
Conflicting reports circulated this weekend over whether Bacardi International is looking to form a counter-bid for Allied Domecq....
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
Pernod Ricard and Fortune Brands are hoping to buy Allied Domecq for around 670p per share, according to press reports....
LVMH has said it is not looking to buy Mumm Champagne from Allied Domecq....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Diageo is to launch a new global advertising campaign for Smirnoff Ice. The first ad in the global campaign, 'Garden', launches in Great Britain on April 11th on terrestrial and satellite TV. ...
Fideuram Wargny has upgraded its rating of Pernod Ricard to 'buy' from 'hold'. Its analysts argue that the merger talks with Allied Domecq is a catalyst for share growth....
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Focus - Pernod Ricard's Q1 sales by brand
- Time for Heineken to make a European break
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Whisky downturn slows Diageo's Scotch spend
- Pernod Ricard sees sales lift in Q1