Premium Craft Drinks Strategy

Transcription

1 Premium Craft Drinks Strategy

2 Notes More than 315m invested in the drinks industry over the last two years 4 Distilleries in 2013, 17 now in varying stages of development and production From a handful of micro-breweries operational in 2013, 40 now and projections for 100+ by 2020 The Irish Drinks Industry makes an enormous contribution to the country s financial health. This contribution is recognised by Bord Bia. 2

3 Premium Craft Drinks Strategy Standing in the Future.. 3

4 Notes Over-riding objective is to constantly optimise the relevance of Bord Bia initiatives to the challenges facing clients, and to adapt to better suit those challenges when necessary Model Employed Extensive consultation with industry and other stakeholders, 40+ interviews Identify critical needs or provocations. Generate a clear set of initiatives to address these provocations Deliver this action plan to industry for feedback and consultation Form a steering group to guide the planning and execution of these initiatives and to ensure that the needs of all sub categories are met. 4

5 Draft Vision for Consultation For Ireland to become the MOST recognised source of premium craft drinks in the world With a mission to drive the continued success and momentum of Irish Premium Craft Drinks world 5

6 Notes Series of headwinds identified by the `Futures `research Health concerns - Guardian article on April 23 rd, UK is experiencing a fall in binge drinking and related crime. A major academic research paper credits this to the rising cost of alcohol. Alcohol abuse is leading to taxation issues in most markets. In Russia, the government raised taxes on vodka and beer and making efforts to limit venues where it can be sold. BRIC economies are slowing from their incredibly rapid growth phase. While there remains an opportunity, we just need to approach it in a more considered way. China s government is fighting conspicuous consumption and striving to shift the economy away from a dependence on exports and investment towards domestic consumer spending. 4

7 Head Winds A commitment to sustainable whiskey production processes in Ireland will connect well with Origin Green; making Ireland a world leader in sustainably produced food and drink

8 Notes The Drinks manufacturing process will come under increasing pressure in terms of natural resources Climate change impacting the crop supplies available for beer and whiskey production, and therefore affecting the overall supply chain. Ongoing negotiations regarding the use of precious land space to grow what is considered a non-essential consumer product. Any diminishing of crop areas dedicated to necessary raw materials will create cost of goods pressure for Irish distillers and brewers. This poses an opportunity for the drinks production process to not only embrace more sustainable practices, but also to give back to the local environment. For example, there is growing interest in converting whisky by-products into biofuel energy, as a way of creating a renewable energy source. To date the drinks industry has demonstrated its commitment to Origin Green with all of the multinationals in distilling, brewing and cider making signed up, and most of the SMEs also on board.

9 Timeline - Whiskey 12M+ 7M The Build The Laydown Brand Build Full Global Reach White Spirits Early Whiskey Spirits Portfolio

10 Notes This chart shows the demand curve in Whiskey and reflects our ambitious growth aspirations.. To service this demand, the Liquid/LPA Capacity is undergoing and requires a significant step change. However, in Whiskey the time lines are longer than other drinks sectors and require 3 specific stages of Investment.build/laydown/brand. You can see from 2018 onwards this liquid capacity building ahead of the demand curve. This can be managed through matching stocks in line with market demand HOWEVER, it will require us to be disciplined and to hold the tension on relentlessly building our Premium Liquid, Brands & Portfolios Credentials in this explosive category.

11 Timeline Breweries & Other Distilleries The Build The RTM Brand Build Brand Investment (the right ROI) Facilities & Staff Investment (the right Quality) RTM Investment (the right Markets / Channels) 11

12 Notes This chart shows the demand curve in Whiskey and reflects our ambitious growth aspirations.. To service this demand, the Liquid/LPA Capacity is undergoing and requires a significant step change. However, in Whiskey the time lines are longer than other drinks sectors and require 3 specific stages of Investment.build/laydown/brand. You can see from 2018 onwards this liquid capacity building ahead of the demand curve. This can be managed through matching stocks in line with market demand HOWEVER, it will require us to be disciplined and to hold the tension on relentlessly building our Premium Liquid, Brands & Portfolios Credentials in this explosive category.

13 Know your Battlefield Differentiate or Die! Win on the Crowded Shelf Celebrate the Makers & Marketers 13

14 Notes Four Strategic Provocations The Four Strategic Provocations are out lined above Knowing the landscape of your playing pitch intimately the scale, the breadth & the depth of it basically, uncovering the story behind it. Start with your consumer/customers first and build differentiated brands/portfolios around their needs - Differentiate or Die! Winning on the Crowded Shelf speaks to the need to be strategic about who you align with in your route to consumers through distributor, wholesale & customer partnerships Celebrating the Makers & Marketers is about the people, the passion and the craftsmanship behind our category & brands in the best possible way

15 The Challenge: To build a highly differentiated & distinctive category positioning Know your Battlefield Where to Play Understanding the full scope of the category through customers & consumers lens in Priority Markets What makes Irish Drinks Different? Brand Ireland 15

16 The Challenge: To build unique Brands & Portfolio in the context of the category map Differentiate or Die! Where to Play Differentiate Brands/Portfolios within our Category Positioning to fuel future growth & innovation plans White Space Sectors / Occasions Distinctive Brands drive Profitable Longterm Growth & Innovation Enhancing Competitiveness 16

17 Bord Bia Commitment: Deep Dive Category Research 2015 Spirits 2015/16 Craft Beer & Cider Consumers & Key Customers Identify our Category USPs KNOW YOUR BATTLEFIELD! Define what is perceived as unique about Irish drinks Domestic & Priority International Markets

18 Notes KNOW YOUR BATTLEFIELD! The research will determine our USPs and define the story around them to help us to articulate that story. It will provide insight into the scope of the category to help with the innovation pipeline It will identify the size of the opportunity, and illustrate the best white space for us to be successful, based on our USPs All of this will guide us in our communications strategy.

19 The Colour of the Outputs KNOW YOUR BATTLEFIELD!

20 Bord Bia Commitment: 2015/16 Communications Plan for the Category USPs Key customers Identify our Category USPs KNOW YOUR BATTLEFIELD! Drive awareness of USP s in the minds of customers & consumers All markets

21 Notes KNOW YOUR BATTLEFIELD! We will collaborate with industry to develop social media platforms for category communications at home and internationally. The campaign will target key customers in all markets to drive awareness amongst the targets, of the USPs identified We can carry out the category research as soon as possible in order to enable the communications plan to come to life And as a joint initiative with industry, we will explore funding options for planning and communications purposes. This will include but will not be limited to examining the potential of EU funding.

22 The Colour of the Outputs KNOW YOUR BATTLEFIELD!

23 Notes KNOW YOUR BATTLEFIELD! We will use social media, FB, Twitter, LinkedIn We will use trade communications and other trade activity The Bord Bia international network of offices will communicate it to the international buyer cohort It will be channeled through the Bord Bia Fellows and Irish Ambassador briefings. And through your own sales and marketing teams and distributors

24 Bord Bia Commitment: Brand First toolkit project Provide direct easy access to learning tools Identify our Category USPs DIFFERENTIATE OR DIE! Clients and start ups

25 Notes DIFFERENTIATE OR DIE! We will lead a Brand First approach to starting and building a viable drinks business. We ll work with industry to provide virtual toolkits for established clients and start ups on Insight & Innovation and Branding. These will provide easy direct access to the materials and resources available to help companies in developing and enhancing their brand presence. The toolkits will contain manuals on brand development, innovation, distributor guides, guides to retail for small producers, business document templates and other materials required to present the company and brand portfolio in a professional light. It will be filled with useful templates and packed with great insights, and tips and hints to get brand and innovation plans off the ground. We ll collaborate with Local Enterprise Offices (LEOs) in facilitating smaller drinks companies (t/o < 100k) by providing the toolkits for their development Bord Bia, together with Enterprise Ireland and Teagasc run the Foodworks Programme to nurture budding entrepreneurs. It is one of many programmes which can help to bring to life the brand first philosophy.

26 The Colour of the Outputs DIFFERENTIATE OR DIE!

27 Notes DIFFERENTIATE OR DIE! All of the guides, manuals and templates will be accessible through all personal mobile devices And working virtually on branding and innovation projects will be easier than ever. Enrolment in Foodworks can give innovation and branding efforts that essential extra uplift, clients are strongly encouraged to bear the programme in mind to help them meet the innovation challenge

28 It s our opportunity Let s Take It Win on the Crowded Shelf Celebrate the Makers & Marketers 28

29 Notes Final Provocations Winning on the Crowded Shelf is about the need to be strategic about who to align with in your route to market through distributor, wholesale & customer partnerships Finally, Celebrate the Makers & Marketers relates to industry s need to celebrate the people, the passion & the craftsmanship behind the category & brands in an appropriate way.

30 The Challenge: To build strategic partnerships that drive Efficient RTM & Customer Support in outlet Win on the Crowded Shelf How to Win Align to the right strategic partners (RTM & Customers) who are competitively advantaged to deliver your vision Understand Channel Dynamics Create Long Term Partnerships that Count Build Exports / Vibrant Home 30

31 The Challenge: To create world class Experiential Events & Showcases that celebrate our Makers & Marketers Celebrate The Makers & Marketers How to Win Create a series of Platforms & Events that celebrate the Craftmanship & Provenance of the makers & marketers and their Premium Craft Drinks Differentiated Experiences Celebrate the Characters and Passion behind our Premium Craft Drinks Build Exports / Vibrant Home 31

32 Bord Bia Commitment: Trade Fair & Exhibitions Programme Identify our WINNING ON Category THE CROWDED SHELF!! USPs Key Customers/Importers/D istributors Drive the reach into developing markets Determined by market and client demand 32

33 Notes WINNING ON THE CROWDED SHELF!! There is a world of opportunity out there, the question is where are the best opportunities Bord Bia will lead a global trade show calendar and participation. There will be changes to our Trade Fair strategy, with a catalog of potential activity supplied to industry in the final quarter of the previous year. Clients will be asked to commit to participation at least six months in advance in order to maximize the benefit of the investment for all. A combination of the research outputs and client demand will determine where We will drive the developing market reach to identify high potential route-tomarket and customer partnerships in key regions. We will optimize the opportunity presented by Marketplace 2015 & itineraries Together we will identify international high potential customers in key markets and Bord Bia will target these for participation. We will develop specific itineraries between SMEs and customers during the week of the event.

34 The Colour of the Outputs WINNING ON THE CROWDED SHELF!! 50-60%

35 Bord Bia Commitment: Leverage Domestic & Intl trade relationships Identify our WINNING ON Category THE CROWDED SHELF!! USPs Key Customers/Importers/D istributors/opinion formers Drive category growth opportunities All markets 35

36 The Colour of the Outputs WINNING ON THE CROWDED SHELF!!

37 Notes WINNING ON THE CROWDED SHELF!! We will leverage domestic & international trade relationships, to drive category growth opportunities (An example of this would be the wholesale & retail networks of the North American Beverage Control Association) to drive the communication of the story and the USPs within their outlets We will explore with them what channels they have available to communicate and how we can make the category come alive in their stores. The preliminaries to this work can begin straight away

38 Bord Bia Commitment: Experiential Event Model (with Food) Customers & consumers Identify our Category USPs CELEBRATNG THE MAKERS AND MARKETERS! Promotion of category and individual product ranges All markets 38

39 The Colour of the CELEBRATNG THE MAKERS AND MARKETERS! Outputs

40 Notes CELEBRATNG THE MAKERS AND MARKETERS! The marriage of premium food offerings and premium drinks has a positive impact on both sectors, it expands the possibilities and ranges of the entertainment offering, adding colour, flavour, depth and breadth on both sides. Bord Bia will create a series of Food Pairing programmes tailored to venue/outlet type. This may entail a spirits sommelier partnering the Irish spirits range with speciality food products at a high-end bar/lounge chain, or a pop-up shop in Schiphol Duty Free. These programmes could be used to target both customers and consumers The concept would be carefully scripted and should be exportable to any market. It provides yet another channel to communicate the story and promote the category but we envision a model that could be used for individual product ranges also. This activity could begin as early as next year

41 CALL TO ACTION Category Planning Identify our Category USPs Client volunteers Now 41

42 Client Engagement Plan Multi-National Focus Areas (proposed)

43 Notes Multi-National Focus Areas (proposed) Domestic market Incubation of New Product Concepts/Ideas Need for World Class talent in your Organisations

44 Client Engagement Plan SME Focus Areas (proposed)

45 Notes SME Focus Areas (proposed) International and Domestic market Focus Ground Level Brand Building Insights & innovation Need for World Class talent in your Organisations

46 For Ireland to become the MOST recognised source of premium craft drinks to the world. Know Your Battlefield Differentiate or Die Win on the Crowded Shelf Celebrate Makers & Marketers Working Together

47 Q & A 47