All hail the cocktail, but be wary of the side effects - Comment

Let me take you back to the summer of 2009, a summer when the Black Eyed Peas’ ‘Boom Boom Pow’ and ‘I Gotta Feeling’ were topping the charts and Lady Gaga made one of her many fashion statements by donning an outfit made of stuffed Kermit the Frog toys. It was evidently a time of questionable choices and, unlike the array of superb summer drinks that we are faced with today, it seems that this extended towards drinks too.

It was at this point in time that I ordered my first-ever cocktail. I was barely 18, in a British-themed bar (as questionable as my three-quarter length shorts) in the holiday resort of Palma Nova and, perhaps Gaga-inspired, I plumped for what was called a frog splash. It was bright green, made my teeth hurt from the sugar and cost EUR3.50 (then-US$4.90).

My memory of that drink is as vivid as the drink itself was,, So too is my memory of the morning after one green drink turned into three, four or five.

I won’t go into detail, but it wasn’t pleasant.

Since then, I’d like to think my cocktail choices have become more sophisticated. The growth of cocktail culture globally and the omnipresent staples of negronis, margaritas and old fashioneds on menus means that one is never too far away from a great option.

However, much like the ill-effects of that fateful frog splash, there may be unintended and harmful consequences for spirits brand owners riding the cocktail tide.

At this point, I really need to emphasise that for every single brand – especially for spirits – an on-premise serve strategy is vital, and that, nine times out of ten, cocktails should play a part.

The growth of cocktails over the past decade has been one of the success stories of the alcohol industry, and one that’s been fundamental to spirits’ growth more broadly. Cocktails have been democratised and are now firmly established as a gender-neutral, go-to drink, suitable for all occasions – a shift from what was once seen as the premise of swanky bars or females alone – and spirits brands have reaped the rewards.

Indeed, Gen Z consumers are the first that we’ve ever seen who are just as likely to choose cocktails as they are to choose beer; a new generation of consumers are opting for cocktails as their primary choice.

However, in the on-premise channel, where brands are built and trusted, long-lasting connections between consumers and brands are forged, where does this swing towards an often-unbranded choice leave our products?

While previous generations of consumers developed relationships with spirits brands over years of bar calls and standard spirit-with-mixer serves, the newest generation of on-premise visitors are skipping this and instead reverting to names of cocktails as the ‘brand’.

Our products, therefore, are in danger of losing the additional rewards of equity, affinity and salience that is built in the on-premise, which is instead being transferred to those cocktail serves.

The risk here is evident. In a sales channel where value for money is the top priority to consumers when choosing their drinks, operators might be tempted to cut corners and maintain margin, opting for ‘me too’ or private-label cocktail ingredients – at the expense of brands, especially if guests are less likely to ask for specific labels.

Of course, some (but relatively few) companies have navigated this with winning cocktail serve strategies that retain and protect the brand: the Aperol spritz (or, indeed, the Campari spritz), for example, and, arguably, the sazerac. Many have tried either through menu listings with branded serves, or even through trademarked signature serves, such as the Dark ‘N Stormy (with one apostrophe), owned by Goslings.

How to navigate this vicious juxtaposition of the necessity of a cocktail strategy that could both damage long-term brand health and provide opportunities for lower-cost competitors?

It comes down to education and the touchpoints at which this education can be delivered. The great thing about the on-premise channel is that it’s filled with consumers eager to make more informed decisions, supported by learning manuals in the form of menus to help them, and bar staff keen to tell brand and serve stories to further assist them.

If you can communicate why your brand is perfect for that delicious cocktail, then you will create brand ambassadors for life – just make sure it isn’t in a frog splash.