Packaging Insights: Alcoholic Beverages

For alcoholic beverages, packaging has long been a key branding tool. But the way it works is changing as various segments within the category tackle different marketing challenges. For instance:In wine, packaging is helping to expand usage situations. Innovation is letting wineries be aggressive in targeting on-the-go consumers.In beer, the trend is adding newness and "cool" as brewers look for ways to appeal to a new generation of drinkers. In distilled spirits, packaging helps position premium and super-premium brands by giving consumers a tangible reflection of their own aspirations. Wine: Portable PotablesOne focus in the wine industry has been the "on-the-go" market, with several wineries trying unusual packaging as a way to tap it. In the last year, wineries have turned to cans, paperboard cartons and plastic bottles in smaller sizes to make wine more portable. Among recent successes is the Bandit brand from the Three Thieves wine company, Lodi, CA, which opted for a paperboard carton to launch what the wine industry has christened a "hot product." In late 2004, the company launched Bandit Bianco in a one-liter Tetra Brik package. The package essentially is a variation on the "juice box" that an entire generation has now grown up with, so it brings a familiar format to a new product. The change from the traditional drink-box concept comes in the form of a plastic screw cap that keeps the package airtight until opened and allows the container to be reclosed.Other benefits of the packaging: It's one liter rather than the standard 750-milliliter size for bottles, giving consumers a little more for their money. And, its portable -- easily tossed (even literally) in a picnic basket. The early "buzz" from wine aficionados is that this brand and this package are going to succeed in the U.S. market. Another striking example of on-the-go wine packaging is exhibited by Niebaum-Coppola Estate Winery, Napa, CA, which puts 187 milliliters of its Sofia Mini Blanc de Blancs into slim-profile aluminum cans. The winery says that part of its decision to use metal cans was the visual impact it would provide: the soft glow that results when transparent inks are used for graphics on the metal. Target markets include places such as resorts, nightclubs (to reach the "cool" younger drinker) and retail outlets where the package could appeal to concertgoers. In traditional retail outlets, meanwhile, Sofia wines are sold in four-pack paperboard cartons that also represent innovative thinking. The carton is six-sided and has a metallized film laminated to it. Also printed with transparent, wine-colored ink, the carton projects a similar "glow" and a look of class. The package has been on the market for a year. Jay Shoemaker, Coppola's chief executive, stated in early 2005 that Sofia "was the most successful and significant product launch we've ever had."In late 2004, the Canandaigua Wine Co., Canandaigua, NY, rolled out its Verdange brand in a 500-milliliter Prisma carton from Tetra Pak. The package is designed for on-the-go events such as picnics, and the unusual packaging format helps the brand stand out. The paperboard, in particular, displays high-quality graphics. The eight-sided carton has a tamper-evident screw cap that can be reclosed. Continuing its apparent strategy of using packaging to broaden usage, Canandaigua extended packaging options for its Arbor Mist brand with a 375-milliliter plastic bottle in spring 2005. The plastic bottle seeks to build on the brand's existing equity, which is exemplified on glass bottles through a distinctive, frosted surface. The plastic bottles seek to mirror that "look" by employing a rough surface. Labels are see-through, also mirroring the "big sister" 750-milliliter bottle.The 375-milliliter bottle joins the third package in the brand's lineup, the 187-milliliter Arbor Mist Mini. These glass bottles are in national distribution. The Mini package is designed for the casual, single-serve occasion, says Joe Pagani, Arbor Mist marketing director.Like most smart marketers today, Canandiagua tries to align packaging and point-of-purchase materials by using a similar look and feel. Common P-O-P choices include shelf talkers, feature cards and display stackers.Beer: Metal's MettleThe scenario in beer is entirely different than in wines, where the rise of premium beers has sparked a renaissance for glass containers. However, the push for distinctiveness for on- and off-premise sales -- among both premium and non-premium brands -- has resulted in a new format: sleek aluminum bottles. In my opinion, aluminum bottles give beer packagers an alternative to the long-necked glass bottles that dominate the category but offer very little differentiation to a brand.The metal bottle has been used as a niche package in beer since mid-2004. However, the "niche" label isn't so accurate anymore now that Anheuser-Busch has rolled out a line of beers in 16-ounce aluminum bottles with twist-off crown closures. The packages hit the market in summer 2005 for Bud Light, Budweiser, Michelob and other brands. A-B says the demand is so great that it will double its capacity for the container, which has a taller, thinner configuration than traditional glass bottles. A-B used the metal bottle as a springboard to create an entirely different visual appeal -- compared not only with glass bottles and cans, but also with the limited number of metal bottles already in the marketplace. For some brands, A-B opted to change the orientation of the graphics. For example, the container for Bud Light features the brand's familiar logo in distinct white lettering, but presents it vertically on a high-gloss, cobalt blue background. For Budweiser, the brand name also runs vertically against a "sweep" of color from red to black, to add visual interest. Containers for other A-B brands in the metal bottles also get a glossy finish that distinguishes them. The distinctive look represents a break from beer packaging that has been laden with tradition. It follows an emerging graphic trend of using simpler, high-impact designs that rely more on shape and color to provide distinction and less and less on text. A-B's emphasis on the "cool" look that the container projects, especially in the nightclub environment, is another endorsement of the need for new packaging to attract a new generation of consumers.With the aluminum bottle, Anheuser-Busch followed the lead of two earlier niche entries. Pittsburgh Brewing Co. introduced Iron City Premier Lager in an aluminum bottle in 2004. In Canada, Molson is using a metal bottle for MolsonKick, a new energy-enhanced beer. Both the Pittsburgh Brewing and Molson containers have a brushed finish with red and white graphics, an approach that ties in more closely to traditional beer packaging. Distilled Spirits: Glass ClassSome of the more striking alcoholic beverage packaging is found among distilled spirits as more segments develop premium and super-premium brands. Vodka was among the first categories to use packaging as a premium cue. The tactic was next adopted by rum and now is being deployed for super-premium tequilas -- one of the fastest-growing distilled spirits categories.One brand that has received much packaging press recently is Corzo premium tequila from Bacardi. Here, the packaging is no longer used just to differentiate the product or imply a taste sensation (two common functions in the category). It also appeals to the drinker's self-image and aspirations, how he wants to be perceived by friends, and provides a "badge value" behind the home bar.Bacardi says it borrowed the strategy from the cosmetics industry, where package development often seeks to define the brand by connecting with the self-perceptions and aspirations of potential users.As is true with so much good packaging development, the success of the Corzo package is in the details. For the label, the designer chose a textured paper that contrasts well with the stark angularity of the bottle. A silvery cap with an embossed "Corzo" adds another contrast. And a neck hanger provides another opportunity to say "premium."The bottle itself is the keystone for positioning the product, with the other tactics enhancing the impact. It is a striking deviation in shape from traditional tequila packaging, which emphasizes a rough-hewn nature that typically suggests "Old Mexico." The modern shape, according to designer Fabien Barone, emphasizes the modern side of Mexico. Unexpected shapes stop shoppers, especially in categories that rely heavily on tradition. But make no mistake: this is a tough bottle to produce. The precise corners and neck configuration stretch the art of glass making. Corzo uses glass, responding to the commonly held belief that consumers equate glass with premium quality. Elsewhere, 21st Century Spirits, City of Commerce, CA, follows a different strategy to engage shoppers. The company's Blue Ice American Vodka uses packaging to emphasize a cool taste. To simulate icicles, the bottle is tinted blue and incorporates "icy" shapes on the back panel, striving for what one consultant calls an "I see how it tastes" sensation.The Blue Ice bottle reflects another design trend that extends beyond the alcoholic beverage category, the move toward shape and color -- and away from text -- for providing the dominant visual impact. The only text on the entire Blue Ice package is found on the front panel and the cap, which offer the brand name and minimal product information. The belief is that the bottle's visual appeal will do the work of positioning and selling the product. Targeting a New DrinkerOverall, alcoholic beverage marketers are trying to recast packaging for a younger generation. We're talking about Generation Y, a cohort that is 57 million-strong and one of the largest groups of consumers the U.S. has ever seen. While nostalgia in packaging formats and graphics continues to hold sway with Baby Boomers, marketers apparently believe it will take something new to appeal to Gen Y: twenty-somethings who want to make their own mark on the world.The changes in packaging respond to Gen Y's desire for something other than "their father's drink." And with wine being wine and beer being beer, packaging may be the best way to provide that difference. The use of paperboard and cans for wine and metal bottles for beer represent significant breaks from tradition and give a modern presentation to age-old categories. Jim Peters is a writer and consultant with 25 years in the packaging field. He is the Director of Education for the Institute of Packaging Professionals. Send comments to him at jpeters@iopp.org

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