NEW YORK -- Although it must operate under a myriad of laws and legal restrictions and a flat sales environment, Heublein Inc. is building sales of its liquor products by teaming with brand marketers of complementary nonalcoholic products.
The key to the program is point-of-purchase display. "In our business, display is really what sells product," said Arlene Gerwin, director of new products and ventures at Heublein.
"With two brands you also help to build sales of both in a synergistic way. When we're with a partner we get much larger displays, more cases on a display and more impact in the store." A division of London-based Grand Metropolitan, Farmington, Conn.-based Heublein markets Smirnoff Vodka, Jose Cuervo Tequila, Christian Brothers brandy, Black Velvet and other products. It also has developed a line of TGI Friday's ready-to-mix drinks under license from the popular restaurant chain.
Gerwin spoke here at a tie-in promotions conference last month sponsored by the Strategic Research Institute, also here. "We do promotions to reward our consumers and the consumers of the joint partners that we have. Having joint partners also helps to stretch the budget. You can do more things if you are joining forces with another company," she said.
Joint merchandising is necessary because sales of alcoholic products are strictly regulated. Only 12 states allow supermarkets to sell spirits, and coupons pertaining to alcoholic products can be redeemed in 11 states, Gerwin noted. However, 42 states allow refunds and 23 allow sampling of liquor products.
"Only 10% of the customers are shopping the liquor department of the supermarket. In many cases when we promote
with a nonalcoholic product we will get out of the liquor section and into the main section of the store where we can help build more sales. "For us complementary use is very important. We'll tie-in with a product that mixes well with liquor, like fruit juices. It helps to team with companies that have big budgets and lead times that are similar to your own. Lastly, it is also beneficial if you can team with someone who has synergies with the sales force and a very strong sales force," Gerwin said.
Among the brands Heublein has teamed with to build sales are Ocean Spray cranberry juice, Planters peanuts and Royal Oak charcoal.
"We do a lot with Ocean Spray because cranberry juice is used in a lot of vodka drinks. We do a coupon program where a coupon for Ocean Spray is on our neckers and the display itself. We give them broad coverage of their coupon. We work out an agreement where we either split or they pay for the coupon redemption. It has worked very well," she said.
The most successful displays often include retailer involvement, Gerwin said. For example, the Royal Oak charcoal promotion centered around a summer cookout concept.
"Sometimes the store will bring a Webber grill over to the display, or bring ketchup and mustard and store brand items over and build a whole theme."
One of Heublein's most successful displays involved a $1-off coupon on Christmas poinsettias with the purchase of Smirnoff, which allowed for an out-of-section display, often at the entrance of the store near the floral department.
"In California during the holiday season these huge supermarkets will have a poinsettia tree built that contains Smirnoff vodka. It is a gorgeous, living display. We are getting our vodka out of the liquor department and they are getting their poinsettias out of the floral department. It has worked very, very well for us," Gerwin said.
Other promotions centering around offering discount coupons for photo development have been very successful at stores that offer that service.
"Often the film processing is right in the front of the store, and so that gets us a display near the front of the store," Gerwin said.
