Welcome back to the BevNET spirits newsletter. This week I’m looking into why spirits brands are increasingly marketing themselves like CPG brands, and why that’s a missed opportunity.

What insiders are reading: another celeb goes in on RTDs but with a “fine wine” twist, plus for the canna-curious, a breakdown on the state regulations in conflict for cannabis beverages.

I’ve been on vacation in Europe researching the spritz for two weeks so sorry, not sorry we’ve been a little short on headlines. As always, thanks for reading. 

-BevNET spirits editor, Ferron Salniker

If your marketing playbook for a spirits brand resembles a CPG playbook, you may be doing it wrong.

“The goal is to build advocacy from your consumers, your bartenders and your shop owners, and you want them to be, ultimately, your sales people or your brand ambassadors,” said Mike Perry, who runs Brooklyn-based creative agency Tavern, whose client roster includes Fisher’s Island Lemonade and Crow 86 Whiskey, among others. “And to do that you need to give them a world or a reason to believe.” 

Perry has spent most of his career working in spirits, and his thesis isn’t new. 

• Spirits brands have always been better at using world-building to resemble luxury goods (like fashion) more than other products sold at the grocery store.
• Think of the Hendrick’s Gin whimsical Victorian labels that come to life down to their dandyish, suspender-wearing brand reps. Or Ford’s Gin, which has a fraction of the marketing budget of its other strategic-owned competitors but funnels that money into bartender-focused bashes and education, turning Ford’s into the "if you know, you know bartender’s gin.” 

But we’re seeing less and less of that. It could be a reflection of the spirit industry’s new actors (say, celebs) mistaking a big name for a big world. Brands are also clearly cutting marketing costs these days. Plus, as adult non-alc and THC beverages become part of the three-tier landscape, spirits are now lumped in with a whole spectrum of adult beverages, all the while there’s an oversaturation of brands. But brands can’t just rely on differentiating themselves by product features. 

“There are 3,000 gins out there, and they've all got juniper berries, and they're all made by a master distiller,” said Simon Ford of Ford’s Gin. “We make a good one, but we're not the only one that makes a good one." 

So Ford has bet on bartenders, and their customers, buying an experience, not a campaign that changes based on consumer research.

You don’t need a lot of money to get out of Oreo’s playbook, said Perry. Here are some quick musings:

• The gaming and TV/film industries have excelled at focusing on their tightest viable communities and repeatedly building a world for them to enjoy – and that community then expands the world organically.
• In that sense, Perry (who has also worked for TikTok) said building IRL versus URL is more effective. And when we think of tight communities online, what is the subreddit or discord thread that you can feed that will then grow into a larger community on different platforms?

Thoughts? Email me. 

If you thought Skimmers, Anheuser-Busch InBev’s (A-B) entrant into the vodka-based tea segment, looked a bit too similar to the space’s lead brand Surfside, you’re not alone.

• The parent company of Surfside filed a complaint against A-B this week, alleging the company “opted to mimic Stateside and freeride” off its success. 
• The proverbial tea is that Skimmers hasn’t been a big threat to Surfside – as of now four brands account for 97% of overall off-premise spirits-based tea flavored RTD sales, according to 3 Tier Beverages: Boston Beer’s Sun Cruiser, Gallo’s High Noon Sun Sips, Good Boy Vodka Cocktails and Surfside.
• But the colors, designs and styles of several of those RTDs have clearly tried to bite off Surfside, and now the Surfside founders are demanding a trial by jury, among other things. 

Read more

Molson Coors Beverage Company will eliminate around 400 salaried positions across its Americas business unit by the end of December. The cuts amount to around 9% of Molson Coors’ salaried Americas workforce, “including hundreds” of open roles and others “granted voluntary severance” as part of the restructuring.

Read the story

The Kardashian empire continues. Vodka soda RTD Sprinter Spirits reported it had secured over $4 million in new investment as part of a $12 million round it is currently raising. 

• The brand, which is co-founded by celebrity Kylie Jenner, previously raised $12.7 million in May 2024. 
• Staying ahead in the RTD cocktail race appears to take more than just the celebrity backing of high-impact influencers like Jenner. Competition is stiff among brands like Snoop Dogg & Dr. Dre’s Gin & Juice and actor Miles Teller’s The Long Drink.

Read more

As a nomadic distiller, Devon Trevathan travels the world setting up shop in far-flung distilleries to work her magic with local ingredients, equipment, and artisans. So what’s next for her journey and – from her vantage point – for the spirits category in general?

•  Devon’s latest project is a bit different: Trovador Inspirado Rum, a project she co-created with a team of Nashville hospitality pros and Raul Malo, frontman of The Mavericks, blends three different styles of rum to fill the white space of something for aficionados and novices. 
• A spirit from Mexico may be next, but part of being nomadic is creating distillates in each area that are slightly different from local traditions so it may not look like other tequilas or mezcals. 

Some snippets of CGA's latest third quarter report:

• Spirits faced a -4.3% volume decline and a -0.8% value decline over the L52. 
• Good news for agave: Tequila remains the undisputed category leader, up +2.6% in annual sales and +5.7% in the past quarter. 
• More good news: 37% of consumers are spending more per visit than last year. Half of those cutting back cite simply ordering fewer drinks.

Insiders get access to the full report

If there’s anyone with an eye for emerging cocktail trends, it’s Colin Asare-Appiah. 

• The mixologist and author doubles as trade director of culture and lifestyle at Bacardi, and has over 20 years of experience mentoring bartenders nationwide. What starts at the bar often ends up in the can or bottle, so we checked in with Colin about what’s next in the cocktail world. 
• What’s evolving: the shift toward designing food around cocktails, and more savory experiments with umami flavors through oils, vinegars, and brines. 
• What’s fading out: Don’t expect to say goodbye to the martini anytime soon, but it may be a gateway to small format cocktails. 

Join us for networking with retail buyers, investors, and peers, plus industry talks in beautiful Marina del Rey December 7-9. Have questions about attending? Email me. Learn more here.

The BevNET Spirits Awards are now open to nominations. Categories this year include spirits company of the year (small and large), spirits industry leadership awards, best new RTD and RTS cocktails, best new NA spirits, and best new NA rtd cocktails. Apply until November 21.