Unlocking Success in the Alcohol Beverage Industry: Insights from an Experienced Executive

For small or medium-sized distilleries and wineries, aspiring to reach the heights of renowned brands like Johnnie Walker, Absolut Vodka or Chateau Lafite can be both a motivating aspiration and a daunting challenge. While the vision of achieving such acclaim and success is compelling, the reality of limited budgets and resources often poses significant obstacles along the way. 

Moreover, your agency may not have the necessary expertise to market your product, potentially leading to a costly learning curve that eats into your marketing budget. However, despite these constraints, there are several strategies and approaches that smaller players in the alcohol beverage industry can leverage to carve out their own niche and cultivate a dedicated following. Yet, the question remains: where does one even begin?

In search of answers, one may turn to case studies and industry analyses to gain insights into the methods employed by the leaders in the industry. Typically, information about the success of a spirits or wine brand is shared through various channels:

• Articles on websites or in trade publications
• Social media posts 
• Features in the business sections of media outlets
• Newsletters or comments on annual business results

While these sources may offer some insight, these stories often lack crucial details that might interest you: they may overlook information on budgets or media/touchpoint allocations, fail to specify the brand's life stage, and may even present numbers that exaggerate success. Some of these stories may not even represent genuine success stories but rather passing trends destined to be forgotten. 

Consequently, they may offer little in the way of actionable insights, instead serving as mere vehicles for self-promotion. Whatsmore, they very rarely discuss their failures - what did not work and why it failed - instead focusing on triumphs and congratulating themselves. Yet, failures can be incredibly instructive. Unfortunately, the reluctance to acknowledge failures stems from various factors, including the desire for promotion, peer approval, positive PR, and improved share prices for listed companies.

Marketing Challenges for the Alcohol Beverage Industry

The evolving landscape of technology poses additional challenges for the alcohol beverage industry. The advertising industry has a tendency to hype up the latest trends, whether it's AI, virtual reality, NFTs, the metaverse, programmatic advertising, or personalisation. While these trends may sound cutting-edge, they often come with hefty price tags. Companies may invest significant resources in adopting these technologies, hoping to impress stakeholders and stay ahead of the curve. However, in many cases, these investments fail to yield the expected return on investment. Despite the initial excitement and buzz surrounding these trends, their practical applications and effectiveness in driving tangible results for businesses are frequently overstated.

The absence of comprehensive case studies within the alcohol beverage industry further hampers informed decision-making processes. Without detailed analyses of successful strategies and their outcomes, businesses are left to navigate uncertain terrain with limited guidance. This lack of concrete evidence can lead to a sense of ambiguity and hesitancy in adopting new approaches or refining existing ones.

In certain markets, stringent media restrictions force marketing departments to explore alternative, often less transparent avenues known as "dark market" solutions. While necessary for compliance, these strategies present a unique set of challenges, including limited visibility and reduced ability to track the effectiveness of marketing efforts. Consequently, marketers must find innovative ways to reach their target audience while operating within these constraints, further complicating the decision-making process.

Adding to these challenges is the issue of unreliable research data. Traditional sources like Nielsen may overlook crucial segments of the market, such as the on-trade sector, particularly premium outlets. As a result, businesses may lack accurate insights into consumer behaviour and market trends, leading to misguided strategic decisions. Similarly, reliance on self-reported data by organisations like IWSR can introduce inaccuracies and misinterpretations, further clouding the picture for decision-makers.

The cumulative effect of these challenges is that businesses often find themselves allocating resources to expensive yet ultimately ineffective tactics and plans. Despite their best intentions, the lack of reliable data and comprehensive case studies leaves them vulnerable to making costly missteps. In hindsight, they may regret not having access to more robust insights before committing their financial resources.

The Power of a “Business Doctor”

So, if you are a small or medium-sized distillery and winery, what will you do? Well, think of it this way: your business health matters just as much as your personal health. When you're feeling unwell, you typically have two choices: scour the internet for potential diagnoses and treatments or consult a doctor. 

While online advice may provide some assistance, especially for minor issues, it can also exacerbate problems by misidentifying issues and suggesting ineffective solutions. In contrast, seeking medical attention from healthcare professionals is the best course of action. Although it may entail higher costs, the investment is more than justified when it comes to your health.

Consider applying the same principle to your business. As you rely on a medical professional for personalised care, your business can benefit from a specialised "business doctor" who comprehensively understands your industry and offers tailored recommendations. This expert guidance can help overcome these challenges, optimise strategies, and ultimately safeguard the health and prosperity of your business.

Allow me to introduce myself—I'm Corneliu Vilsan. I bring over two decades of invaluable experience in the spirits and wine industry, offering your business a thorough check-up and effective remedies.

Let me paint a broader picture of my background and expertise. Over the past twenty years, I have gained experience in general management, marketing, and business development roles across diverse sectors, along with five years as a consultant for medium—and large-sized businesses. Throughout my career, I've had the privilege of traversing more than 50 countries, gaining first-hand experience in both burgeoning markets and established ones. 

I have collaborated with brands of all scales, from humble beginnings to industry titans. This diverse exposure has allowed me to grasp the nuances of various categories within the industry, ranging from the bold flavours of vodka, whisky, rum, tequila, gin, cognac, brandy, and eau de vie to the refined complexities of wine, sparkling wine, and champagne.

My expertise isn't just about surface-level knowledge; it's a comprehensive understanding honed through years of hands-on involvement and strategic insight. Whether it's crafting innovative marketing strategies, optimising production processes, or navigating regulatory landscapes, I've encountered and tackled a myriad of challenges across the spectrum.

With this extensive background, I am well-prepared to offer more than just advice—I bring actionable insights and tailored solutions to the table. My goal is to leverage my wealth of experience and industry know-how to empower your business to not just survive but thrive in the fiercely competitive landscape of the spirits and wine industry.

Book a free call with me today to explain how my proven methodology can improve your business profitability and build a premium portfolio of international brands.