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🥃 How To Navigate The Bar World's New Normal

Daily Briefing
Plus, Gallo gets into mezcal͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJuly 11, 2024
SPIRITS NEWSLETTER
The latest news & insights for the spirits industry.

In This Issue

Welcome to BevNET’s new spirits newsletter! We’ll be serving your inbox with shots of news, analysis, and commentary to help get you an edge in the spirits business. As with any service business, send us tips!

This week we’ll be sharing advice from trade advocacy pros on how brands can make an impact on-premise in the post-pandemic world. 

What insiders are reading: Gallo gets into mezcal and high-end rum, Suntory bets big on RTDs with new leadership, and Emma Watson's Renais Gin aims to cast its spell stateside. 

Like what you're seeing? Sign up for updates 2x month if you haven't already.

Thanks for reading. 

-BevNET spirits editor, Ferron Salniker

🔥Hot Take

What The New Normal On-Premise Means For Your Brand

What The New Normal On-Premise Means For Your Brand
Credit: Our Whiskey Foundation, Jo Hanley

Based on my hangover following four Bar Convent Brooklyn after-parties last month, the state of on-premise seems alive and well (and very fun). 

But sales numbers, as well as the perspective from brands and bars, tell us that we’re all still in a post-pandemic flux, so I wanted to check in with some veterans in the industry who have transitioned from the bar to the brand side about what’s working for their companies. Are the ways they once connected with bartenders still effective, and if not, what is? 

Inflationary challenges, plus certain ongoing pandemic-related woes like shifts in customer behavior and the new landscape of city centers, are changing on-premise culture, and they’re potentially barriers to entry for brands. With tight margins and staffing struggles, some restaurants and bars are less likely to take on esoteric offerings or get creative. 

“It takes a really talented hand to strike that balance between innovation, accessibility, and making the bosses happy,” said Joe Brooke, trade advocacy manager for Fords Gin. 

That’s a bummer for small spirit categories, who depend on the ambassadorship of bartenders. Plus, as some brands can pay-to-play, emerging or craft brands face more competition than ever to get on the backbar. So how can a brand, any brand, become a value-add to a bar or its staff?

You can start by moving beyond mixology education, instead taking the more modern approach of caring for the whole person beyond the bar. Uncle Nearest’s Raise the Bar Mentorship Alliance is the latest example, which trains and pairs up heavy hitting mentors with a cohort of bar professionals to support their individual projects that range from mental health support programs to starting a bar. Lucia Creed, head of trade advocacy for Uncle Nearest, said that apprenticeship has always been foundational to the bar world, but with many of the industry veterans shifting careers after the pandemic, the spirits company is now among others hoping to fill that gap, while building relationships for the brand over time.

Brooke says that on-premise morale is at an all-time low, with staff under the pressure of rising costs and outbursts from guests. He tips and pays hired event staff well, but he also notes that we’re “past the days of the headier brand trainings that had more of a place when we were fighting the cocktail revolution.” Events should be easy, light, generous with food and drinks.

Your approach may also depend on the bar: GN Chan, co-founder of one of the world’s top bars Double Chicken Please, said at BCB that he needs to build trust with brands and ambassadors over time and through phases. Brands also need to show what’s unique about their product (vodka has the hardest case to make, he said). The approach should be less about riding trends and more about “how can we create the next trend together?” 

What’s working for your brand at the bar post-covid? Send me a tip. 

📇recent headlines

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A Hamptons Bar Takes on RTDs

ABC laws getting your RTD aspirations down? Just get a law passed on your behalf! That’s what the family behind a famous neighborhood bar did when pursuing their RTD dreams. We talked with the founder, Ruby Honerkamp, about balancing the two separate businesses and leveraging the musical vibes of the bar for a new brand.
Read the full story about Talkhouse Encore.

Time to Tok?

TikTok is making other headlines these days: the platform recently opened advertising to bev-alc brands in the U.S., due in part to its user base getting older. You can find new rules as it opens up its channel, but brands still need to be sure that the users their ads reach also hit the LDA threshold. 
Learn how to navigate the change.

Battle for the Cold Box: Legislative Changes

North Carolina has lowered the tax rate for spirits-based RTD cocktails, now allows delivery and cocktails to-go, and permits sales on major holidays. Meanwhile in Pennsylvania a bill moved forward to legalize the sale of spirits-based RTDs under 12.5% ABV in certain retail outlets. 
Catch up on the RTD state-by-state battle.

🧐Industry Updates

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Boisson is Back, Kinda

After shutting its retail doors this spring and filing for bankruptcy, founder Nicholas Bodkins shared updates on the NA bottle shop’s future at BevNET Live last month and has now announced a semi-rebound with the help of a new financial partner via a post on LinkedIn. I heard from several non-alc brands and vendors at the time of Boisson’s restructuring who were concerned about getting paid, and from the looks of the comments, Bodkins is now publicly hearing from them too. 

Diageo Selling?

Diageo shares have been in decline, as sales have waned for most major spirit groups. Now, speculation has been swirling after a single broker identified the spirits giant as ripe for a takeover. But as of now the rumors seem to be just that — because unless there’s some significant divestment, what rival has pockets that deep? 

🙊LOL

 And if you don't know, now you know.

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Credit: @cocktailsnmemes

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    July 11, 2024 3:14pm

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