Putting down roots
“Slimmer. More modern. More stylish.” Kobrand International director Lewis Johnstone is categorical about the strengths of the recently revamped Alizé presentation, which incorporates new slimline bottles, more contemporary branding and appealing silkscreen labels.
Seven years after the Kopf family – which has a controlling interest in the brand – took the decision to make Alizé available outside of its core US territory, the striking new look reinforces the impression of a notable success story. Under the direction of Kobrand International, the brand has grown rapidly in both domestic and travel retail, the latter arguably providing a valuable showcase for this unusually diverse range of liqueur products.
While stressing the potential that still remains for further growth, Johnstone says he feels the brand is definitely “a part of the scenery now… whereas only a few years ago there were doubters saying, ‘Well, how are they going to be able to do that? They don’t have strong domestic markets in parts of the world where they are thinking about pursuing a travel retail strategy’. We have approached it from the other end and challenged the retailers to give a broader offering to consumers of something that is fundamentally quite different to what has been offered to date.”
Unconventional as it may be, the modus operandi has paid off. A steady succession of new products – the most recent being Alizé Rose [see Box] – has ensured that the brand’s profile has remained high, while in duty free/travel retail, tastings have been a vital and rewarding part of the strategy. In this
channel, the brand is now particularly strong in Asia Pacific – Johnstone describes Singapore Changi as Alizé’s “hub” in the region – while activities in the domestic channel have seen a presence in a mere handful of non-US markets prior to 2000 rise to more than 50.
It is an impressive set of statistics that Johnstone attributes to offering the market something rather different. “I have listened, heard and read over many years about how retailers are looking for new and innovative approaches to help them out,” he says. “So I would be at the door saying, ‘I think I can help you out!’ We’ve put our money where our mouth is and backed the initial attempt to persuade retailers to get involved with Alizé, and from both the support and off-take level through consumers, the brand has flourished. From that point and with meaningful distribution for the brand, we push forward even futher.”
A comprehensive approach
Indeed they do – possibly to the extent of becoming a broadly-based wine and spirits company. With Alizé now up and running, the company overseen by Johnstone and Asia-Pacific director Victor Lee is to be known henceforth as Kobrand International as it begins to pursue opportunities for some of the other Kopf family brands.
“Alizé International was formed seven years ago specifically with the task of turning Alizé into a global proposition, and in many ways it has been a standalone international division, if I can be so bold! It now makes sense to see how we can build on that icebreaking role that Alizé has had over recent years.”
Priorities for the newly rebranded company will include the Café Bohême liqueur. A blend of premium French vodka and gourmet coffee with a hint of vanilla and cream, the brand has already established a creditable TR profile. “It had been sitting in our cupboard for a number of years, and we looked at it and dusted it off, and upgraded the look to a point where we were comfortable we could bring it to market in a test situation a few years ago,” recalls Johnstone. Soon to be supported by a new pack offering, the Kobrand International team expects to mount a major push for Café Bohême “in the near future.”
Acknowledging the dominance of one player in the drink’s particular segment of the liqueur category, Kobrand is likely to price the brand just above Diageo’s Baileys in most markets. “It’s such a small proposition at this point that it doesn’t make sense to go below. It doesn’t help conversations with operators who are always looking at increased margins, and it doesn’t make any sense to us off such a small base to kind of give away our margins. And we think we have a first class product to back up that price positioning.”
In another field completely, Kobrand International is planning to introduce some of Kopf’s wine ranges into duty free in a move reflecting Johnstone’s observation that “operators in certain places are beginning to realise that wines have to be an integral part of their alcoholic beverage offerings. A lot of them are starting to ratchet up their levels of interest in the category.”
With an increasingly comprehensive portfolio of products in tow, and a keen eye to take on agency brands that will help it to futher develop its global profile, it is clear that Kobrand International is entering an ambitious new phase – the end result of which could well be, says Johnstone, the development of “a first class wines and spirits offering internationally”.
Given the remarkable growth of Alizé over seven years in both domestic and travel retail markets, you would be advised to bet against this proposition. Expect, therefore, to hear plenty about Kobrand
International and its products in the months and years ahead. n
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