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The warmer months offer drinks brand owners a chance to grow their profits. Joe Bates examines how companies can ensure they maximise this key trading period.
There are many reasons for the beverage alcohol industry to look positively on the summer months – from longer days, warmer temperatures and outdoor sporting events, to music festivals, family get-togethers and increased tourism, there are plenty of opportunities to boost sales. Yet, to derive the best results from this key trading period, a thorough understanding of the post-pandemic consumer mindset and the current economic climate is essential.
For Lucy Redman, head of marketing at The Ice Co, Europe’s biggest supplier of ice to the drinks sector, an appreciation of the inflationary environment in many markets is crucial. “Consideration for the cost of living crisis will be front and centre in most summer sales strategies,” she says. “This will likely manifest itself in the form of competitive and cost-conscious pricing and promotional discounts in order to position the services and products on offer as an affordable treat.”
Plan early for outdoor success
The operations director at UK-based brewery North Brewing Co, Fiona Moran, believes detailed and early planning is essential for on- and off-premise operators to maximise the potential of the summer months. “The best bars and retailers will already be geared up and have had their external areas open and operating by Easter,” she says.
“The social media, press and word-of-mouth coverage generated during this period is vital to the success of summer. Menus, campaigns, collaborations, furniture, branding and promotions are all crucial to generate revenue.”
Meanwhile, Dave Marsland, sales manager at Spiribam UK, whose portfolio includes rums and liqueurs from Martinique [Rhum Clément and Rhum J.M], St Lucia [Chairman’s Reserve, Bounty and Admiral Rodney] and Mauritius [Beach House], suggests that “eye-catching branding” is the key to successful outdoor promotions. “At our ‘Beach House Spiced’ terraces, use of our slushie machines with flavoured Daiquiris is the perfect response when you come across the bright colours, surfboards, beach hats and sand that encapsulate Mauritius. Offering an authentic yet unique approach is key to engaging for a long-term investment of the brand by vendors and customers.”
Finding an outdoor event to sponsor or sell at is a top priority for many drinks producers, but detailed planning and carefully selecting the right event are very important, warns Moran. “Maximising the commercial potential of outdoor events requires a combination of strategic planning, marketing and execution,” she says. “Consumers are increasingly demanding, requiring the best of everything. The best events are immersive and experiential; interactive elements that tie into the event are perfect and help to keep consumers engaged.”
Aligning with music festivals and sports events
Pernod Ricard’s Havana Club has a summer strategy that would tick many of Moran’s boxes. The rum brand has a busy schedule of summer events planned this year, many of them tied into Havana Club’s ‘Cuban Mode’ global multimedia campaign, which celebrates the “unique Cuban mindset and vibrant collective energy – described as La Cubanía”.
Global marketing director Anne Martin says: “We’ll have a presence at some of Europe’s biggest music festivals, including Glastonbury in the UK, Splash! festival in Germany, Big Sound in Spain, Rolling Loud in the Netherlands and South London’s City Splash.
“With a focus on hip hop, reggae or Afrobeat, each of these festivals is a hub of creativity and diversity – a place where Gen Z consumers of legal drinking age come together to connect, share ideas and party. As we continue to recruit new drinkers to the rum category, festivals closely aligning with our brand values and identity are a great way to drive awareness and build rapport with this socially and environmentally aware generation.”
While Havana Club has chosen to align with some of Europe’s top music festivals, Scotland’s Eden Mill Distillery has decided to partner with the more genteel world of lawn tennis. The company has recently launched a new gin, the summer berry-flavoured Wildcard Gin, in partnership with the UK’s Lawn Tennis Association. It also has the activation and pouring rights at several UK tennis events, such as the Queen’s Club Championships and the Eastbourne International.
“Choosing the right events that fit your demographic is key to maximising commercial potential,” says senior brand manager Hannah Ingram. “You need to make sure you’re putting your product in front of the right audience – as well as carefully selecting the products you serve at these events. RTDs have a strong role to play at these, because of their flexibility and convenience – one of the main purchasing drivers for RTDs – and consumers have been buying into concepts and flavours, with new products entering the market every month.”
Rise of sustainable packaging: RTDs move beyond convenience
RTDs certainly seem set to continue to be a hot ticket this summer and beyond – IWSR Drinks Market Analysis forecasts a 15% CAGR for the category in ten major focus markets over the next two years.
“With the warmer weather, we are already seeing a big uptick in RTDs, namely wine products and cocktails-in-cans,” confirms Annie Edgerton, sales associate at leading Manhattan-based liquor store Flatiron Wines & Spirits. “These consumers don’t necessarily engage with staff, asking questions about the items. Rather they are truly grab-and-go, so packaging seems to be key in conveying the style and flavours of the beverage. Cans are just huge right now.
“Another massive trend is screwcap whites and rosés that are in our fridge,” she adds. “People want no mess, no fuss – no tools needed, already chilled – and they’re sometimes a bit put out we don’t provide plastic cups as well. But, cans seem to appeal to people who want more portability, sustainability and ease.”
RTDs may be the summer must-buy this year, but consumers are increasingly conscious of the need for sustainable portable packaging. According to IWSR’s research, 48% of US alcohol drinkers say their purchase decisions are positively influenced by a company’s sustainability or environmental initiatives. This can also be seen in the on-premise, where canned cocktails are being promoted as a way for venues to meet their sustainability goals.
Fort Lauderdale-based Splash Beverage Group, for example, recently launched Pulpoloco Sangria: a range of three imported Spanish sangrias packaged in paper cans.
“The ‘CartoCan’ is 30% more eco-friendly than aluminium or PET, uses 30% less total raw materials to create, and the raw materials come entirely from renewable sources,” says Splash CMO William Meissner. “Made from 70% recycled paperboard, the can’s lining is made from a thin layer of aluminium to preserve the quality and taste of the beverage. This eco-friendly packaging alternative is fully recyclable and reduces carbon emissions by up to 80%.”
Simon Rolfe, director of UK-based Sea Change Wine, believes aluminium cans are also a sustainable option for alfresco drinking. “It was really important to us that consumers didn’t have to choose between convenience and sustainability,” he says. “Small-format options (such as PET bottles) produce plastic waste and do not provide an acceptable environmental solution. That’s why we chose aluminium cans for the Sea Change range as they’re infinitely recyclable with no loss of quality.
“We’ve gone a step further in making our cans more sustainable too,” Rolfe adds. “Their labels are made from natural, plastic-free paper sourced from certified sustainable forests and made partially from grape waste – we don’t use shrink sleeves. Look closely at the hand-drawn illustrations on each can and you’ll notice the marine animals impacted by plastic pollution. Like the rest of the Sea Change range, we’re helping to protect our oceans with a donation to our marine charity partners with every can sold.”
While certain styles and flavours are evergreen when it comes to summer – think white spirits, fresh fruity flavours and cocktails – the move towards more sustainable packaging for outdoor drinks is a more recent summer trend that shouldn’t be overlooked.
Brands give ‘winter’ drinks a summer makeover to drive sales
Not every spirit on the typical backbar is synonymous with the summer months. Cream liqueurs, brandy and whisky/whiskey are more commonly associated with cold winter nights in front of the fire than backyard barbecues and outdoor music festivals.
Would anyone pack an eggnog for a picnic?
Many producers of wintry spirits are determined to try to ensure sales don’t slump in the warmer months, though. Kyrö Dairy Cream co-founder Miika Lipiäinen always wanted the Finnish cream liqueur [made with rye whisky and lactose-free] to play in a different space than category behemoth Baileys. “We wanted to go in new, different ways,” he explains. “Finland is quite a weird country; we’re a cold country up north, but we’re also No.1 in per capita consumption of coffee and No.2 in ice cream. Coffee and ice cream are both fantastic occasions for a cream liqueur.”
During the summer months, Lipiäinen says the company actively promotes serves such as Piña Colada Slushies and evergreen classic cocktails with a twist, such as the Flat White Martini. “We are also partnering with a Swedish electric motorbike company where you can have an electrically-powered cold box on the tail of the bike,” he says. “So we can have chilled cream liqueur and go out to parks and serve up some ice cream and dairy cream.”
Danish whisky Stauning is also taking an unconventional approach in an effort to drive year-round sales. The brand owner has partnered with leading Copenhagen bar Ruby, a popular summer venue, to promote whisky-based cocktails. “For years, Stauning has advocated for whisky highballs with a twist, not just soda-based,” says co-founder Hans Martin Hansgaard. “An added seasonal element can appeal to many. Try making a Stauning Smoke-based highball with ginger beer and a touch of heather honey.”
Abby Martinie, brand ambassador at Four Roses Bourbon, which sponsors summer events such as the famous Kentucky Derby horse racing festival and the Louisville-based whiskey and music festival ‘Bourbon & Beyond’, believes lighter cocktails are ideal for warmer weather. “Our Bourbon is very approachable, so a classic Highball or Kentucky Mule is great on a warm day,” she explains.
“Making sessionable drinks by adding refreshing juices or quality mixers is also a simple way to enjoy cocktails over a longer period of time during those endless summer celebrations.”
Liam Belton, lead at the on-premise wholesale division of UK drinks e-tailer Master of Malt, is another fan of championing brown spirits in summer. “By innovating longer serves, you can create a year-round spirit,” he says. “Things like a classic Rum & Ginger can be modified by swapping the dark spirit for another (whisky/whiskey instead of rum). Elevating classic serves and offering a twist on them is also a great use of those lesser-used spirits. Some inspiration we’ve found includes a Brandy Old Fashioned.”
Gallicus Beverages, a company committed to blending the styles of France and Italy in its range of spirits, has given the dark French apple brandy, Calvados, a summery spin by mixing it with Italian lemon-flavoured liqueur limoncello. “Gallicus No.1 Calvados & Limoncello … blends the rich flavours of Calvados, crafted from the red apples of Normandy, with the unmistakable taste of limoncello, renowned for its refreshing and tangy profile,” explains COO Jérôme Boiron.
“From refreshing Spritzes to fruit-infused cocktails, this versatile [product] adds a touch of sunshine to every sip.”
This article has been available to Global Drinks Intel subscribers since June. For details on how to join them, click here.
