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Uncovering the opportunities and threats
resulting from emerging categories and media,
highlighting how to maximise future potential.
Alan Moss December 2013
My background
13 years with Remy/
Maxxium: UK, India, S.E.
Asia/Korea.
Consultancy for Campari
International.
9 years in absinthe
category, selling to over
30 countries.
Investigating the recent re-emergence of
absinthe to determine whether the category
will achieve critical mass this time around.
How emerging categories and sub-categories
impact your innovation pipelines
Investigating the recent re-emergence of
absinthe to determine whether the category
will achieve critical mass this time around.
Savoy
Cocktails
All cocktails
Ingredients
%
Absinthe drinks
Ingredients
%
Gin 421 48 58 54
Vermouth 286 33 47 44
Brandy 134 15 16 15
Whisky 117 13 19 18
Absinthe 108 12 108 100
Rum 91 16 18 17
Cointreau 48 12 18 17
Sherry 29 13 14 13
Vodka 4 27 9 8
Total 878 1,603 108
Achieving critical mass?
Not yet, at least not by "big company" standards.
Less than 250,000 x 9 litre cases in total (Source: IWSR 2012). c.
40% in USA.
At $60+ a bottle, however, it is an interesting "craft spirits" category.
With improvements in product quality (following the Swiss and US
examples), and better product marketing, the category IS growing in
most markets, especially in large cities, and in top new bars.
Critical mass is being achieved in key sectors, especially in USA.
Canon
Seattle
Absinthes
Page 1
The Re-emergence of Absinthe
The Re-emergence of Absinthe
The Re-emergence of Absinthe
The Re-emergence of Absinthe
Critical Mass?
No. of US bars with more than 10 higher quality absinthes (i.e.
ones with no artificial colours) in many States, especially NY,
California, Nevada, Illinois, Washington DC, Florida, Texas,
Louisiana, Colorado. No. = 100+
Similar UK bars? No. = 5?
No. of US liquor store groups (20+ outlets) with more than 5
higher quality absinthes in CA, Illinois, Texas , Nevada etc. No. = 5+
Similar UK liquor store groups? No. = 0.
Typical Absinthe Sales Chart (years)
0
25
50
75
100
1 2 3 4 5 6 7 8 9 10
The Misinformed
Minus the
Disappointed
The Well Educated
Absinthe 2000 - 2013
2000 La F辿e Versinthe *
2001 Pernod Absente * Francois Guy
2002
2003
2004 Jade
2005 Kubler La Clandestine
2006
2007 Lucid St. George Mansinthe
2008 USA Flood! St. Antoine
2009
2010 USA Casualties
2011 France resolved
2012
2013 Pernod re-launch La F辿e re-launch
The Re-emergence of Absinthe
The Re-emergence of Absinthe
Absinthe constraint factors
100 years of misunderstanding.
15 years of sub-standard products and questionable
marketing outside the control of Portman etc.
Emphasis on, or innuendoes about "the absinthe
effect."
Burning.
No definition (except in Switzerland).
The Re-emergence of Absinthe
The Re-emergence of Absinthe
The Re-emergence of Absinthe
The Re-emergence of Absinthe
The Re-emergence of Absinthe
Absinthe growth factors
Move to all-natural, distilled absinthes.
Moving from "absinthe effects" and burning to "terroir" and heritage.
Growth of cocktails.
Big company interest.
Costs and pricing.
Opportunities in E. Europe, Asia, and S. America.
Potential market size: 1 million x 9 litre cases within 5 years.
How emerging categories and sub-categories
impact your innovation pipelines
Some top industry trends
Global growth of cocktails,
both classic and modern. YES
Premium/super premium
spirits share growth. YES
Move to craft drinks with
authenticity/heritage and
localised appeal. YES
Low alcohol/low calorie. NO
Category blurring, e.g.
Flavoured Tequila, Ciroc
Amaretto. NO
The Re-emergence of Absinthe
Innovation in Absinthe?
The category remains very new for most consumers: so is innovation
appropriate?
Flavoured and RTD absinthe mixes have been tried in the US,
unsuccessfully so far.
Higher strength products.
Lower strength products, including cream, egg and chocolate bases.
Barrel-aged absinthes.
Packaging, especially 200 ml.
The Re-emergence of Absinthe
The Re-emergence of Absinthe
Product Development
Like most Swiss companies, we re-entered with a "blanche" style: we
decided early on to get into the bigger "verte" sector, with two
brands, including an absinthe first made in the USA in 1902 (a 12
month project).
We are testing an ultra-premium expression: six year barrel-aged
absinthe. Rather "niche."
Dessert style absinthe drinks being marketed. We have an Absinthe
Egg Nog; another company has a chocolate flavoured absinthe.
Smaller bottles are good for trial and/or affordability.
The Re-emergence of Absinthe
Summary
Critical mass is being achieved,
especially in the USA. Much
more to come.
Social media can allow smaller
brands to compete with the
bigger brands.
Innovation may be less
important for a market that is
still young (the second time
around!), and that is still so
widely misunderstood.
Ad

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The Re-emergence of Absinthe

  • 1. Uncovering the opportunities and threats resulting from emerging categories and media, highlighting how to maximise future potential. Alan Moss December 2013
  • 2. My background 13 years with Remy/ Maxxium: UK, India, S.E. Asia/Korea. Consultancy for Campari International. 9 years in absinthe category, selling to over 30 countries.
  • 3. Investigating the recent re-emergence of absinthe to determine whether the category will achieve critical mass this time around. How emerging categories and sub-categories impact your innovation pipelines
  • 4. Investigating the recent re-emergence of absinthe to determine whether the category will achieve critical mass this time around.
  • 5. Savoy Cocktails All cocktails Ingredients % Absinthe drinks Ingredients % Gin 421 48 58 54 Vermouth 286 33 47 44 Brandy 134 15 16 15 Whisky 117 13 19 18 Absinthe 108 12 108 100 Rum 91 16 18 17 Cointreau 48 12 18 17 Sherry 29 13 14 13 Vodka 4 27 9 8 Total 878 1,603 108
  • 6. Achieving critical mass? Not yet, at least not by "big company" standards. Less than 250,000 x 9 litre cases in total (Source: IWSR 2012). c. 40% in USA. At $60+ a bottle, however, it is an interesting "craft spirits" category. With improvements in product quality (following the Swiss and US examples), and better product marketing, the category IS growing in most markets, especially in large cities, and in top new bars. Critical mass is being achieved in key sectors, especially in USA.
  • 12. Critical Mass? No. of US bars with more than 10 higher quality absinthes (i.e. ones with no artificial colours) in many States, especially NY, California, Nevada, Illinois, Washington DC, Florida, Texas, Louisiana, Colorado. No. = 100+ Similar UK bars? No. = 5? No. of US liquor store groups (20+ outlets) with more than 5 higher quality absinthes in CA, Illinois, Texas , Nevada etc. No. = 5+ Similar UK liquor store groups? No. = 0.
  • 13. Typical Absinthe Sales Chart (years) 0 25 50 75 100 1 2 3 4 5 6 7 8 9 10 The Misinformed Minus the Disappointed The Well Educated
  • 14. Absinthe 2000 - 2013 2000 La F辿e Versinthe * 2001 Pernod Absente * Francois Guy 2002 2003 2004 Jade 2005 Kubler La Clandestine 2006 2007 Lucid St. George Mansinthe 2008 USA Flood! St. Antoine 2009 2010 USA Casualties 2011 France resolved 2012 2013 Pernod re-launch La F辿e re-launch
  • 17. Absinthe constraint factors 100 years of misunderstanding. 15 years of sub-standard products and questionable marketing outside the control of Portman etc. Emphasis on, or innuendoes about "the absinthe effect." Burning. No definition (except in Switzerland).
  • 23. Absinthe growth factors Move to all-natural, distilled absinthes. Moving from "absinthe effects" and burning to "terroir" and heritage. Growth of cocktails. Big company interest. Costs and pricing. Opportunities in E. Europe, Asia, and S. America. Potential market size: 1 million x 9 litre cases within 5 years.
  • 24. How emerging categories and sub-categories impact your innovation pipelines
  • 25. Some top industry trends Global growth of cocktails, both classic and modern. YES Premium/super premium spirits share growth. YES Move to craft drinks with authenticity/heritage and localised appeal. YES Low alcohol/low calorie. NO Category blurring, e.g. Flavoured Tequila, Ciroc Amaretto. NO
  • 27. Innovation in Absinthe? The category remains very new for most consumers: so is innovation appropriate? Flavoured and RTD absinthe mixes have been tried in the US, unsuccessfully so far. Higher strength products. Lower strength products, including cream, egg and chocolate bases. Barrel-aged absinthes. Packaging, especially 200 ml.
  • 30. Product Development Like most Swiss companies, we re-entered with a "blanche" style: we decided early on to get into the bigger "verte" sector, with two brands, including an absinthe first made in the USA in 1902 (a 12 month project). We are testing an ultra-premium expression: six year barrel-aged absinthe. Rather "niche." Dessert style absinthe drinks being marketed. We have an Absinthe Egg Nog; another company has a chocolate flavoured absinthe. Smaller bottles are good for trial and/or affordability.
  • 32. Summary Critical mass is being achieved, especially in the USA. Much more to come. Social media can allow smaller brands to compete with the bigger brands. Innovation may be less important for a market that is still young (the second time around!), and that is still so widely misunderstood.