Milton Pedraza’s Post

Embracing the Premiumization Trend As consumers become more discerning, the trend of premiumization continues to shape the spirits industry. People are no longer just looking for a drink—they’re seeking an experience, a story, and a product that represents quality and authenticity. At Monte Carlo Vermouth, we’ve embraced this shift by creating the world’s first luxury vermouth, blending artisanal craftsmanship with the finest ingredients sourced from Monaco, France, and Italy. Monte Carlo Vermouth captures the essence of Monaco’s iconic rose gardens, with the fragrance and botanical extraction process taking place in Grasse, the global capital of perfumery. Combined with the finest wines from Piedmont, this meticulous attention to quality and heritage results in a vermouth unlike any other. In an industry where consumers expect more than ever before, it’s the details like these that set premium brands apart. How has the demand for premium experiences impacted your business, and how do you see this trend evolving in the future?

Embracing the Premiumization Trend As consumers become more discerning, the trend of premiumization continues to shape the spirits industry. People are no longer just looking for a drink—they’re seeking an experience, a story, and a product that represents quality and authenticity. At Monte Carlo Vermouth, we’ve embraced this shift by creating the world’s first luxury vermouth, blending artisanal craftsmanship with the finest ingredients sourced from Monaco, France, and Italy. Monte Carlo Vermouth captures the essence of Monaco’s iconic rose gardens, with the fragrance and botanical extraction process taking place in Grasse, the global capital of perfumery. Combined with the finest wines from Piedmont, this meticulous attention to quality and heritage results in a vermouth unlike any other. In an industry where consumers expect more than ever before, it’s the details like these that set premium brands apart. How has the demand for premium experiences impacted your business, and how do you see this trend evolving in the future?

📉🍾 LVMH, the luxury giant, reported a significant drop in champagne sales in the first half of 2024. The company's CFO attributes this decline to fewer celebrations and festive events. With the global economy in flux, consumers are becoming more cautious with luxury spending. It will be interesting to see how LVMH responds to this challenge and what strategies they will implement to turn things around. 🔗 https://lnkd.in/gQFpFpjF #LVMH #luxury #economy #champagne #businessnews

50 Cent's recent visit to Capitol Hill highlights the ongoing disparities faced by black-owned luxury brands, particularly in the spirits industry. It's crucial that we engage in meaningful discussions and educate ourselves on the challenges within the luxury sector. Dive deeper into this important topic by reading my latest essay on Substack. #LuxuryIndustry #Diversity #BlackOwnedBusinesses

In the mid-1990s, Sidney Frank – an American businessman with a knack for crafting luxury brands – wanted to introduce a new premium vodka to the market, at the time dominated by established Russian brands and Sweden's Absolut. Targeting the affluent and aspirational, Frank leveraged American consumers' intuitive association between luxury and French goods by partnering with Francois Thibault, a cellar master, to craft what he'd decided to call 'Grey Goose' using traditional French techniques – distilled in Picardy and bottled in Cognac. With taste and production sorted, Frank turned to branding. Wanting his bottle to convey French provenance, Frank's design featured frosted glass for a premium edge and a small flag to denote its country of origin; delicate netting circles the body to mimic the region's fine wines, as does a replaceable cork. The product was placed in Sex and The City – a pinnacle of late 90s New York lifestyle – as well as donated to multiple society charity galas. Business boomed, and by 2004, just seven years after launch, Grey Goose was sold to Bacardi for $2 billion. By hiking pricepoint (at launch Absolut sat around $17 for 750ml, Grey Goose went on shelves for $30), Frank created a self-fulfilling prophecy. Everything about vodka is perception. It's colourless, odourless, even tasteless in a way. Yet by building visual, psychological and social associations between the product and perceptions of luxury, Sidney Frank set a new standard for the spirit market. Whilst the likelihood of Grey Goose lining the cellars of collectors is slim, its origin lends itself to the importance of perceived value. Fine wine and rare spirits are an increasingly credible asset class, with a global market value in the billions. More than that, owning products of high calibre possesses an intoxicating quality unmatched by other kinds of capital — whether investors drink it or not. Read more on how brands transform products into assets with perception via the link in comments. #MatterOfForm #FineWine #RareSpirits #Investment #Assets #Luxury #Alcohol #Branding #Design #Collectables #Innovation

💡 In my outreach last week, I called out a very specific stat that often had nothing to do -directly- with the brand I was speaking to: Champagne sales were reportedly down by 9.2% in 2024. (Source: Decanter) The recent dip in global champagne sales reflects a broader trend observed across the luxury market. As highlighted by Vogue Business at the end of last year, luxury brands are seeing a slowdown in consumer spending, with around 50 million consumers pulling back on their purchases. Why? Economic uncertainty, a loss of trust in some brands, and changing consumer values are all contributing factors. For brands, this signals a crucial opportunity to rethink how they engage with customers. 🚨 It's no longer enough to rely on premium pricing alone; a more thoughtful, value-driven approach is necessary to regain consumer confidence and maintain relevance. 🚨 The key takeaway: In a world where even luxury goods are being scrutinized, understanding what truly resonates with the modern shopper will be key to staying afloat in 2025.

Champagne sales historically drop 30-50% during a recession. What Does This Mean for the Luxury Market? We’ve all heard the news: Champagne sales are down for the second consecutive year. The Robb Report article details a trend that’s likely to raise eyebrows in the luxury and hospitality sectors. But is this a fleeting dip, or does it signal a broader shift in consumer behavior, particularly within luxury markets? This news brings with it more questions than answers. We know that consumer sentiment can shift quickly, but the luxury market is often viewed as the last bastion of economic resilience. The decline in Champagne sales—especially among higher-income buyers—could be a signal that even the elite are reevaluating their spending habits. While the decline in Champagne sales may seem like a niche concern, it may be indicative of broader consumer hesitance. If the wealthy are scaling back on indulgences like Champagne, what else might they be reconsidering in their purchasing decisions? Is it a temporary response to inflationary pressures, or is there a deeper change happening? For property investors, this may be a critical signal. The luxurious experience once reserved for high-ticket items like Champagne may be less of a priority, prompting more thoughtful investments in value-driven luxury—experiences that are tangible and rooted in utility, rather than sheer extravagance. From a revenue management standpoint, the trend of shifting priorities among high-net-worth individuals challenges how we think about pricing strategies. The luxury market, long insulated from broader economic shifts, may now be showing signs of moderation. In such an environment, how should we approach our pricing models? Perhaps it’s time for a recalibration of value vs. extravagance. As consumer behavior evolves, the demand for ultra-luxury experiences may plateau, but an uptick in demand for high-quality, value-driven offerings could emerge. For hotels and resorts, this could mean revisiting pricing structures that focus on creating exceptional, more memorable experiences rather than leaning solely on high-end status symbols. As critical thinkers, it’s vital to understand that shifts like this in the luxury sector aren’t necessarily a cause for alarm—they’re an invitation to rethink. This is a crucial moment to assess how your offerings align with evolving consumer preferences. Luxury is not disappearing, but it is transforming. Those who can adapt and offer new, innovative ways to cater to this change will not only survive—they’ll thrive. Ultimately, listen closely to our customers, and to pivot when needed. What are your thoughts? Are you seeing similar trends in your markets? How are you adapting? #luxury #recession #hotel

Dive into the intersection of style and taste! Discover why fashion retailers are stepping into the culinary world with their own brand cafés and restaurants. Have you explored any of these stylish gastronomic havens?

What does rare whisky have in common with the S&P? They both have appreciated over the last 10 years, with whisky coming out on top. This article illuminates the shifting trends and values within the luxury market, offering a fascinating exploration of consumer preferences and market dynamics. Discover how the landscape of luxury has transformed over the last ten years and gain valuable insights into the factors driving these changes. It's an interesting read! https://lnkd.in/g_g9_RqM

Champagne’s Golden Decade: A Market on the Rise! A toast to a decade of growth in the champagne market! 🍾 Premiumization and rising demand are driving this sparkling sector forward, showing resilience and a thirst for luxury that continues to grow. Discover what’s shaping the future of champagne! #ChampagneMarket #LuxurySpirits #AlcoholIndustry #MarketTrends #ChampagneLovers #PremiumChampagne #BeverageInsights #GrowthTrends