On-Premise Report: Let's Get This Party Started

"It used to be that you could do a big national on-premise promotion program and everyone would take it. Now to be successful on-premise, you have to be flexible, innovative and willing to customize just to get in the door." So says Susan Overton, director of marketing for Heaven Hill Distilleries Inc. The Bardstown, Ky.-based spirits marketer recently acquired Hpnotiq, a brand that grew in popularity in clubs and hot spots around the Northeast via word-of-mouth promotion, much of it by prominent celebrities. The French liqueur combines Cognac with vodka and natural tropical fruit juices for a refreshing, mixable drink with a bite -- 17% alcohol by volume.As Heaven Hill Distilleries pushes its new Hpnotiq drink, the company is facing many new challenges at on-premise accounts. In recent years, on-premise locations -- bars, nightclubs, restaurants and resorts -- have become more sophisticated.Marketers say that more on-premise venues now request display programs and event marketing programs that help enhance the look of the bar, enhance the customer's experience and influence return visits. Also, the alcohol marketers are facing competition from outside categories such as fashion and entertainment, sampling products on-premise. These new challenges add up, and alcohol marketers like Heaven Hill Distilleries need to work harder to stay ahead in the game. As Heaven Hill Distilleries expands its distribution of Hpnotiq, the company is ramping up its grassroots effort with a comprehensive promotional program. Activities include promotional parties at trendy independent nightclubs, bars and restaurants where Team Hpnotiq members are on-hand for sampling and customer education. Depending on the type of account and the needs of the operator, goodies available at the parties include T-shirts, drink menus, table tents, signage and banners. The splashiest items, however, are glowing stir sticks. "The sticks are branded with the Hpnotiq name and glow aqua blue, the same color as the product," says Overton. "We use these at the club parties and also in upscale, white tablecloth restaurants. When a drink goes through the dining room with this aqua stick, it creates quite a stir. Heads turn."Tough CrowdThat's the first goal of any on-premise alcohol promotion: To make heads turn. Beyond that, the program should raise awareness, educate the consumer, entice trial and drive brand loyalty. Interestingly, alcohol marketers aren't the only ones who recognize the value of promoting products in bars, nightclubs and restaurants. "We used to face competition [for on-premise promotional space] from beer companies and other spirits marketers, but now we are seeing competition from a variety of music, fashion, fragrance and soft drink brands," says Michael Ginley, vice president, corporate on-premise accounts at Allied Domecq, Westport, Conn. Indeed, marketers of everything from cell phones to aftershave to film and video games are now recognizing what marketers of spirits, wine and beer have known for some time. Whenever consumers converge to relax and socialize, they're open to new experiences. What's more, consumers love a party, especially one with free products and plenty of giveaways. "People will often sample new products in bars or restaurants because it's easier and less expensive to purchase one drink than an entire bottle -- there's very little risk involved," observes Gary Hemphill, vice president at New York-based Beverage Marketing Corp., which tracks beverage sales and trends. Marketers, he notes, value on-premise venues for the opportunity to build a personal rapport with the consumer. "In general, more dollars are being spent on-premise because it's proven to be an effective environment in which to reach the consumer."Model PromotionsTo hold onto their turf, alcohol marketers are now developing comprehensive promotional programs that involve a multitude of materials and personnel and speak directly to the interests of the customer base and the business needs of the operator. "Ten years ago, operators were happy to book promotions that included a few models handing out hats, T-shirts and buttons," recalls Allied Domecq's Ginley. "Today's operators are much more sophisticated. They're looking for promotions that help drive traffic into their account while building brand identity. They're demanding promotions that enhance the guest experience in a way that is consistent with their own brand image." Allied Domecq's First Choice team works to satisfy that demand. Team members strategically placed in 30 cities work with 5,000 independent account operators on behalf of the entire Allied Domecq spirits portfolio, which includes brands such as Kahl™a, Malibu Caribbean Rum and the newly introduced Hiram Walker Fruj·, a tropical fruit liqueur. "We use a variety of customized on-premise promotional materials that the team develops directly with the operator," says Ginley. "Involving the operators has been a key to the success of our on-premise efforts."Operators can select from table tents, banners, drink menus and branded premiums such as T-shirts, where legal. One event presented by the First Choice team is the "Caribbean Cops" promotion on behalf of Malibu. Two models outfitted as Caribbean Cops circulate among customers at the bar or lounge area, issuing citations to those "caught taking life too seriously," explains Ginley. "The Malibu brand is about taking life a little less seriously and the promotion helps bring that concept to life for the target consumer." Supporting materials can be customized with the account's name. The launch of Fruj· in February was supported with banners, table tents, coasters, six-ounce stainless steel Martini shakers, bartender polo shirts, wrap tops for wait staff, T-shirts and back-lit signs. In addition, 90,000 recipe books and 200,000 Mardi gras beads were available to operators hosting Fruj· parties. Long-term PlansOn-premise promotions must drive guest traffic, sales volume and return visits, adds Matthew Healy, on-premise marketing manager for Canandaigua Wine Co., based in Canandaigua, N.Y. Calling on-premise accounts "the place to build brands," Healy notes that the wine company increased the on-premise budget for its table wines this year, and is ramping up some of its programs. For example, coinciding with the addition of Shiraz and Pinot Grigio to the Talus label vintages, Canandaigua is mounting a national by-the-glass program to promote the brand. A pub mirror, chalkboard and white erasable board featuring the Talus name and label graphics are available, along with table tents. The promotion targets independent casual dining establishments. "The program is well-accepted and will stay in the accounts for an extended time because operators like the erasable boards," says Healy. "We're anti-cipating positive results because the pieces are in demand."Interestingly, operators have regional preferences regarding the wall boards, says Healy. The East and West coast restaurateurs favor the chalk board, while those in the Central U.S. typically opt for the erasable boards. The pub mirror has national appeal. Just for YouCanandaigua will customize promotional materials for larger restaurant chain accounts. The wine marketer is not alone in fulfilling large volume operators' desire for unique programs. Distributors and wholesalers carrying the Anheuser-Busch family of brands are equipped with printers that can be used to customize the company's on-premise promotional materials with a bar or restaurant's name and special event information, according to Dan Hoffman, director of retail sales promotion for Anheuser-Busch Inc., St. Louis."We're doing 90% more customized pieces than ever before and operators are a lot more involved," says Patrick Henry, owner of a beverage alcohol promotion agency in Stafford, Texas. "Operators view the dining room table or the bar top as the marketing space, and the vendors are partners in making that space work to all of their advantage." That means unique materials and programs that speak to the establishment's own brand identity are popular. "We want branded and customized materials on our tabletops and bars," says Tim Johnson, director of purchasing and beverage at Champps Entertainment Inc. The Littleton, Colo.-based company operates 39 Champps restaurants and franchises 12 units in 18 states. "Basically, if we see a supplier promotional concept that we like, we look to 'Champps-ize' it. We don't want our promotions to be an 'also ran.' " Champps restaurants generate an estimated $7 million in annual sales, with 32% of that coming from alcohol sales, giving the chain considerable clout with brand marketers. To highlight its beverage program, Johnson and the chain's marketing department created an eight-minute video loop showcasing Champps' signature cocktails and beverages, including the brands involved in each drink. Current and upcoming food and beverage promotions are also featured. The loop plays continuously on up to three of the numerous monitors located throughout the bar and dining areas.At each table, Champps customers can flip the pages of a newly designed roller menu of drink specialties, all pictured in full-color photos with appropriate food pairings from the Champps menu. Three-sided table tents also promote Champps food and beverage offerings. Both items mention the brands included in the libations."We don't like clutter on the table top," says Johnson, "but it's an important place to communicate our drink program. We like the roller menu because unlike the food menu, it stays on the table, inviting them to look at it again, reminding them of the great drinks we offer." Where legal, Champps' beverage vendor partners help support the design and production of the menus and table tents. Johnson also taps vendor partner creativity in developing larger promotional events. "We ran a Key West promotion in April which was food specific, but we always look for connections between our menu and our beverage program," he says. A Barton Brands representative suggested a Corona merchandising piece. "It's a beach shack, and off-premise retailers use it for mass case stackings. We put it in our lobby to dress up the area and communicate the Key West theme and the availability of Corona to our guests. That type of creativity and innovation from our vendor partners is really valuable because it helps us put on unique programs."Italian AccentOlive Garden Italian Restaurants, with 500 domestic units, are estimated to be the largest on-premise purveyor of wines in the U.S. Bill Edwards, the chain's director of culinary and beverage strategy, turns to wine marketers for creative suggestions when developing the eight wine promotions run by Olive Garden each year. "We only run Olive Garden-specific promotions," says Edwards. "The purpose of any material or program we put out is to educate the guest about how our food is enhanced by good wines. We want to heighten awareness of the role of wine in the dining experience and heighten awareness of the products we're proud to serve." Wine promotions at Olive Garden typically begin when guests are waiting for their tables. On busy evenings, servers circulate among the guests in the lobby or cafÈ area, offering one-ounce samples of the featured wines. Once in the dining room, a full-color, bi-fold food and wine menu provides a description of select dishes and offers suggestions for pairing with appropriate wines. Often, the menu will draw attention to wines that are new to Olive Garden. For example, a recent menu paired the Stuffed Mushrooms appetizer with Antinori Compogrande Orvieto Classico and the Seafood Alfredo entrÈe with Beringer LVS White Zinfandel. "This is a way to call out these wines and draw attention to them," says Edwards, who works closely with wineries, wine marketers and Olive Garden's 170 wine distributors to develop such programs. The featured wines are displayed prominently throughout the dining room, as well as on table tents that feature the pairings in the menu. "The guest sees the bottle facings all around the dining room, they see the servers pulling the bottles to pour them tableside and also see them highlighted on the tabletop materials," says Edwards. "This type of approach of presenting the wines, showing how they work with the food and providing samples correlates with Olive Garden's desire to educate the guest about the Italian dining experience."Personal PromotionsOlive Garden's wait staff also plays a crucial role in promoting the chain's wine offerings, and is trained to discuss the wines and help guests make selections. Many alcohol marketers recognize the importance of bartenders and servers in promoting brands to consumers. Prior to any event, Heaven Hill's Team Hpnotiq members visit the account to educate the servers and bar staff about the product's origins, flavor profile and mixability. Allied Domecq's First Choice team conducts similar seminars for servers. Ketel One is a brand that was built primarily on teaching servers and bartenders to "hand sell" the super-premium vodka much the same way fine wines are presented to diners in fine restaurants. "We believe that bartenders, wait staffs and owners are the key to promoting our brand," says Bill Eldien, president of Ketel One in Aliso Viejo, Calif. "Our distributors conduct seminars several times a week with the serving staffs at our various accounts to ensure that they understand its uniqueness and can discuss the product with the diner."In addition, Ketel One offers operators promotional materials. Pyramid and traditional table tents, foamboard posters and drink menu covers all feature a clean look that is consistent with the image of Ketel One. The bottle is pictured on all materials, typically with a cocktail in a Martini glass. Additional branded materials include chalkboards, ice buckets, backbar pedestals and a six-liter bottle for display. Ketel One also presents seasonal promotions on-premise. For St. Patrick's Day, the brand created the Ultimate Apple Martini, made unique by the use of cutters that leave the shape of a shamrock in the middle of an apple slice that can then be placed in the green Martini cocktail. "It's a great presentation, which is important," says Eldien. "It looks great on the table tent or menu and the drink looks great when it comes to the table."The drink menus can be customized to promote the establishment's signature cocktails involving Ketel One, as well as those developed by the brand. The marketer is now developing a lighted pedestal unit for backbar display of the bottle. "On-premise is 50% of our sales, and is the focus of our marketing program," says Eldien, who reports that the brand recently exceeded one million cases in annual sales. "On-premise is where the consumer can be introduced to the brand, learn about it and try it in different drinks. The staff and these materials work together to forge a relationship between the guest and the brand."

On-Premise Report: Let's Get This Party Started

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