Superbrands 2004 - Brand Autopsy

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Superbrands BRAND lion cases—a 19.8% increase. And Canandaigua Wine’s Arbor Mist Wine Blenders sold 600,000 cases in its first year. The latter broke a $10 million-plus ad campaign, via ML Rogers, New York last month. Long-running tag: “Can’t resist the mist” remains. As for the low-carb world, it is relatively virgin territory for beer, wine and liquor marketers. As a result, the Tax and Trade Bureau, which regulates alcohol ads, is taking a serious look at these activities (Brandweek, May 3). The bureau is currently rewriting its interim rules on low-carb and health claims in favor of a permanent one. Stricter regulations will likely discourage ads from implying any health benefits and demand more detailed labeling for spirits makers, which often rely on the aesthetic beauty of their bottles to sell product. Most liquor ads, however, still rely on image versus health claims. Diageo’s Smirnoff vodka is no different. The second best-selling liquor in the U.S., at 7.2 million cases behind Bacardi rum at 8.1 million, per Impact Databank, N.Y, and its line extensions (Smirnoff Twist, Ice and Ice Triple Black) all received bottle and logo face-lifts last year. A $150 million integrated campaign, dubbed “Neat,” via J. Walter Thompson, New York, supporting all three Smirnoff trademarks, got underway in October. Initial creative showed the new vodka bottle with an olive, a twist and a shot glass to convey that it could be enjoyed even without being mixed. Diageo, which owns four of the best-selling spirits brands in the U.S., spent nearly $200 million overall on ads in 2003, according to TNS/CMR. Its Captain Morgan Original Spiced Rum brand, which ranks fourth with 4.2 million cases, rolled out a new TV campaign that borrowed a tack from its failed Captain Morgan Gold malternative which asked: “Got a little Captain in you?” Grey Worldwide, New York, handles. Captain Morgan’s Parrot Bay rum also rolled new ads tagged: “The bird is calling” as well as mango and pineapple flavors to flank its original coconut offering. Allied Domecq’s Malibu Caribbean rum, which competes directly against Parrot Bay, launched a $12 million campaign last month plus pineapple and mango line extensions of its own. Its “Seriously Easy Going” campaign, via Publicis, New York, puts * Figures rounded to the nearest tenth Sources: Impact Databank Review & Forecast 2004 (sales in millions of cases); TNS/CMR (media); Harris Interactive/EquiTrend: QxFxPI=E (see key, page S18) S28 JUNE 21, 2004 COMPANY NAME, LOCATION BEER, WINE and LIQUOR people in situations that make them see the need to take life less seriously in two cable TV and radio spots now airing. Allied Domecq has been extremely active on the product innovation front, launching the Kahlúa Drinks-To-Go line of premixed cocktails with holiday ’03 TV spots, concocted by Publicis, London, under the brand’s “Unleash it” campaign. It also bowed its Kuya “fusion” rum with a $20 million “Do ya Kuya?” campaign across print, radio and outdoor. Wet by Beefeater also found its way to shelves, with photographer Helmut Newton shooting three print ads for Publicis, New York. Shooting for the super-premium vodka crowd, Absolut launched a new brand of vodka called Level, accompanied by a $10 million print and cable TV campaign via TBWA\ Chiat\Day, New York and the tag “One sip, you'll know a new level.” Finlandia, the imported vodka pioneer, created a new campaign last year called “Refresh,” which parent Brown-Forman hopes can help stave off copious competition. (Sibling brand Southern Comfort also got a new effort with ads that focus on M.W. Heron, the New Orleans bartender who created the spirit in 1874.) Other vodka entries are on their way, including Seagram’s Platinum Select 100 proof vodka from Pernod Ricard USA. The influx of new brands and extensions is a byproduct of the fast-growing category: U.S. sales of spirits grew 3% last year, per Impact, versus a 2.5% gain in 2002. One segment witnessing a resurgence is cognac, which has become a favorite of club goers and urban consumers. Allied Domecq’s Courvoisier, an early winner of shout-outs by rap artists, added Fonzworth Bentley, the alter ego of dancer and comedian Derek Watkins, to its ad lineup, via GlobalHue, Southfield, Mich. Straight shot: Absolut goes Pernod Ricard, also opportunistically unfurled super-premium with Level. its new “Rise Above” campaign, via Brand Architecture International, New York, last September to give its stagnant Martell brand a boost. The company also rallied behind Chivas Regal with a $40 million global effort called “The Chivas Life” that targets a more mature consumer with aspirational messages. And one last nod: to cognac mixers. The segment got a shot in the arm last month as Alizé followed the success of Heaven Hill Distilleries’ Hpnotiq by bowing Alizé Bleu. B LEAD AGENCY, LOCATION LIQUOR 1. Bacardi Bacardi USA, Miami Davidandgoliath, LA 8.1 $12.5 6.87 77% 6.54 54.3 2. Smirnoff Diageo N.A., Stamford, CT J. Walter Thompson, NY 7.2 10.5 6.65 69% 6.31 51.0 3. Absolut Absolut Spirits, NY TBWA\Chiat\Day, NY 4.5 33.0 7.07 58% 7.12 58.0 4. Captain Morgan Diageo N.A., Stamford, CT Grey, NY 4.2 15.1 6.76 46% 6.59 52.4 5. Jack Daniel’s Brown-Forman, Louisville, KY Arnold, St. Louis 3.9 18.7 6.89 71% 6.17 51.7 6. Jose Cuervo Diageo N.A., Stamford, CT Arnell, NY 3.2* 11.4 6.95 55% 6.42 52.5 7. Crown Royal Diageo N.A., Stamford, CT Grey, NY 3.2* 22.5 6.96 57% 5.90 48.8 8. E&J E&J Gallo, Modesto, CA In-house 2.9* N/A 6.50 17% 6.22 49.3 9. Jim Beam Jim Beam Brands, Deerfield, IL BBDO, Chicago 2.9* 5.6 6.62 63% 5.55 45.5 10. Seagram’s Gin Pernod Ricard USA Brand Architecture, NY 2.8 2.0 6.37 48% 5.47 43.4 TOTAL SALES (cases) MEDIA EXPENDITURES (millions) QUALITY FAMILIARITY PURCHASE INTENT EQUITY www.brandweek.com
Superbrands BRAND Colas Stuck in the Middle, As Alternatives Wring Sales By Kenneth Hein Another year, another cola gimmick. Staving off declining cola sales is taking a good deal of creativity these days. Last year, it was the battle of the vanilla contenders. This year, it’s the clash of the mid-calorie colas. The fact that cola sales are declining is unavoidable; however, the biggest players believe that growth isn’t hard to find—if you continue to innovate. That’s why most of the buzz currently surrounds Pepsi Edge and Coca-Cola’s C2. Some serious jockeying has taken place in an effort to be first to market. Pepsi initially prepped for an August launch. But Coke outmaneuvered its rival, launching C2 this month and forcing Pepsi to step up its own timetable to June. Pepsi Edge ads are being handled by BBDO, New York, while Berlin Cameron/Red Cell, New York, is responsible for C2. Both are winning media budgets in the $30 million range. Coke spent $23 million to roll Vanilla Coke in 2002 vs. Pepsi’s $27 million outlay for Pepsi Vanilla, per TNS/CMR. Mid-cal Dr Pepper and 7 Up entries are being mulled by Cadbury Schweppes, which also is toying with a vitamin-added soda dubbed 7 Up Plus. Coke is looking at a mid-cal Fanta. The mid-market mania is aimed at capturing consumers who don’t like the calories of regular colas, nor the taste of diets. Analysts question the long-term viability of such a strategy, noting that most consumers will be defecting from exist- ing brands, as well as the fact that Pepsi tested a similar offering a decade ago with little success. That the cola giants are looking to dieters comes as no surprise. Nearly every food category has been affected by the low-carb trend. Soda is no different, as diet drinks continue to greatly outperform regular colas. Coke Classic volume dwindled 3% last year while Pepsi-Cola dipped 4.5%, per Beverage Digest, Bedford S30 JUNE 21, 2004 COMPANY NAME, LOCATION BEVERAGES Hills, New York. Classic still reigns in the cola wars, owning 18.6% of carbonated soft drinks compared to Pepsi’s 11.9%. Meanwhile, Diet Coke and Diet Pepsi grew 5% and 6.1%, respectively. Diet Coke remains the third best-selling soft drink with a 9.4 share vs. Diet Pepsi’s 5.8 share. Hoping to add to that momentum, Diet Coke kicked off new “It’s a Diet Coke thing” ads last month, via FCB, New York, starring sexy actress Kate Beckinsale and Oscar winner Adrien Brody. Diet Coke, which will increase its spend this year, saw $5 million in support in 2003, per TNS/CMR, compared to the $24 million allocated for Diet Pepsi. To ensure its diets aren’t losing out to flavored options, Diet Coke with Lime rolled nationally in January with radio, outdoor and POP, via Grey, Atlanta. Over in lemon-lime territory, troubled Sprite got an influx of energy from a new 10-inch-tall spokescharacter, Miles Thirst. The smart-mouthed puppet, developed by Ogilvy & Mather, New York, stars in ads with NBA phenomenon LeBron James and serves as the centerpiece of an eight-month under-the-cap “Thirst Out” promotion, where consumers can win Blockbuster rentals and music downloads. Sprite’s biggest success, however, was its Remix flavors, which sold 55 million cases last year—and more than made up for the core brand’s losses; a Diet Sprite to be repackaged as Sprite Zero is also being considered. Sprite’s woes are partially owed to Pepsi, which opened the spigots for plenty of “Yeah, it’s kind of like that” ads for Sierra Mist from BBDO, Will Miles add up?: Sprite’s new New York. In its second year of nationwide avail- spokescharacter must deliver ability, and powered by $47 million in media last year (up from $25 million), Mist gained traction as a solid lemonlime answer to Sprite and 7 Up. Sierra Mist, which grabbed a 1.4 share of the category, passing 7 Up’s 1.2%, should also benefit via a tie-in with DreamWorks’ Shrek 2 this month as it did LEAD AGENCY, LOCATION GENERAL 1. Coca-Cola Classic Coca-Cola, Atlanta Berlin Cameron/Red Cell, NY $1,889.4 $107.7 7.21 99% 8.19 70.9 2. Pepsi PepsiCo, Purchase, NY BBDO, NY 1,210.3 89.9 7.02 97% 7.87 67.6 3. Diet Coke Coca-Cola, Atlanta FCB, NY 950.5 4.9 6.58 89% 6.53 55.9 4. Mountain Dew PepsiCo, Purchase, NY BBDO, NY 638.7 37.0 6.49 90% 6.41 54.5 5. Sprite Coca-Cola, Atlanta Ogilvy & Mather, NY 598.5 19.9 6.86 95% 7.79 64.7 6. Diet Pepsi PepsiCo, Purchase, NY BBDO, NY 586.0 24.0 6.49 85% 6.39 54.2 7. Dr Pepper Cadbury Schweppes, London Young & Rubicam, NY 573.7 66.8 6.83 92% 7.15 60.4 8. Caffeine Free Diet Coke Coca-Cola, Atlanta FCB, NY 171.7 N/A 6.28 74% 5.89 48.3 9. Sierra Mist PepsiCo, Purchase, NY BBDO, NY 140.2 46.6 N/A N/A N/A N/A 10. 7 Up Cadbury Schweppes, London In review 126.3 24.7 6.92 97% 7.67 64.2 TOTAL SALES (cases) MEDIA EXPENDITURES (millions) QUALITY FAMILIARITY PURCHASE INTENT EQUITY Sources: Beverage Digest (sales in millions of cases); TNS/CMR (media); Harris Interactive/EquiTrend: QxFxPI=E (see key, page S18) www.brandweek.com
Page 1 and 2: A SPECIAL REPORT nD Bra s r su u pE
Page 3 and 4: Superbrands EDITOR’S NOTE Heeding
Page 5 and 6: www.brandweek.com JUNE 21, 2004 S7
Page 7 and 8: Superbrands decline of the departme
Page 9 and 10: Superbrands attire rowing a mahogan
Page 11 and 12: Superbrands BRAND Sales Struggle as
Page 13 and 14: Superbrands BRAND In Tight Market,
Page 15 and 16: Superbrands BRAND ascension to Merc
Page 17: BEER, WINE and LIQUOR the wall. Mil
Page 21 and 22: Superbrands BRAND Microsoft Tries t
Page 23 and 24: Superbrands BRAND Amid Changing Dem
Page 25 and 26: Superbrands BRAND A Latte with That
Page 27 and 28: ENTERTAINMENT of the class,” said
Page 29 and 30: Superbrands BRAND Say Goodbye to
Page 31 and 32: Superbrands BRAND Crowded Low-Carb
Page 33 and 34: FOOD The Atkins backlash, meanwhile
Page 35 and 36: Superbrands BRAND Crest Gaining on
Page 37 and 38: Superbrands BRAND In a Rather Dirty
Page 39 and 40: Superbrands BRAND Gas Companies Ble
Page 41 and 42: PHARMACEUTICAL/PRESCRIPTION DRUGS D
Page 43 and 44: RETAIL to open as many as 100 store
Page 45 and 46: TOBACCO Consumption Down Slightly A
Page 47 and 48: TRAVEL Low-Fare Airlines Rule Skies
Page 49 and 50: WORLD WIDE WEB Web Players: Let’s
Page 51 and 52: RANK/ BRAND America’sTop 2000 Bra
Page 53 and 54: BRAND INDEX America’sTop 2000 Bra
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BRAND INDEX America’sTop 2000 Bra
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Superbrands 2004 - Brand Autopsy

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