Angostura Rum Case StudyExploring strategies to help premiumise brands

October 25th 2016

Introduction

Genevieve Jodhan

Executive Marketing & Sales Manager, Angostura Limited

My presentation this morning

Why and how we evolved our range of premium rum and what others

can learn from it.

OUR PROBLEM

Everyone knows this…

• Founded by Dr Johann Siegert in 1824

• Nearly 200 years of heritage

• Distinctive and unchanged packaging

Not enough people know this…

• High quality Trinidadian rum

• Rich heritage & legacy from the 1870’s• But with limited international distribution (until recently)

The Situation

• Our rum brands lacked a cohesive brand

identity and emotional appeal

• We lacked consistency across the range

• No Angostura design DNA and no

aggregate benefit to the brand

• We were premium ‘by numbers’

Our Proposed Solution

• Leverage the Angostura master brand for

the rum range (House of Angostura

strategy)

• Develop/refine a shared brand essence

which brought both the rum and bitters

closer together

• Reposition & repack the range to create

an ownable sense of ‘Angostura’ premium

THE MARKET

Market conditions:

1. Viewed from the top line, rum was in gentle

decline

2. Global rum sales saw a decline of 0.8% in 2015

compared 2014 levels - a fall expected to

continue

3. However premium rum was in robust growth,

with EU sales of the most expensive brands

having more than tripled since 2000

4. There was a sense in the industry that rum

needed to overcome its image as the drink of

clubbing and ‘casual hedonism’

Sources: Financial Times, Time, Just Drinks, The Spirits Business, IWSR

The future of rum lies with connoisseurs, not clubbers.

Ed Pilkington, Head of Global Marketing – Diageo’s vodka, rum, and gin brands

© Good

Audience evolution:

• 30+, rather than 20+

• Higher disposable income

• Drink for enjoyment, not to

get drunk

• Often buy spirits as gifts for

friends and family

• Socialising more linked to

great food than nightclubs

• Like to drink and entertain

at home with carefully

chosen products

• They seek brands with

proven provenance

Competitor response:

• In 2013 Bacardi vowed to

‘premiumise’ the whole

rum category

• This resulted in a brand

refresh and global ATL

campaign to realign the

product

• The strategy built on the

provenance of the family

heritage and their 150

year history

Sources: Financial Times, Time, Just Drinks, The Spirits Business

This campaign ushers in a new

era for Bacardi rum, with a deeper

focus on its provenance.Dmitry Ivanov, Senior Global Category Director of Rums, Bacardi

CREATING PREMIUMISATIONIN THE RUM CATEGORY

• Creating premiumisation in the rum category

In the spirits industry, rum is relatively underdeveloped but according to IWSR, global rum volumes have

grown from 26.4m nine-litre cases in 2014 to 27m in 2015.

Premium rums on the other hand has sparked an interest in the category with a 10% growth in the last six

years.

Premium Packaging:

Besides changes to the labels, our four premium rums — Angostura® 1787, Angostura 1824®, Angostura

1919®, Angostura® 7 Year Old — are now presented:

• in a heavy, sensuous bottle with a thick glass base

• beautifully shaped bottles with rounded curves

• a new “orchid closure system” which is both easy to open, yet safely secured for the customer’s

protection

• ergonomically balanced and shaped to facilitate storage and usage at the bar

Our premium to super-premium rums, Angostura 1787®, Angostura 1824®, and Angostura 1919®, are

exquisitely packaged. Angotura®1787 is presented in a rigid box while 1824 is in tube. In the case of

Angostura 1919® there is the option of a beautiful matte grey box or a tube. Specially made for gifting,

these packages bear the story of the Spirit of Trinidad and Tobago, placing Angostura’s sipping rums where

they belong — alongside the world’s best whiskeys and spirits.

MAPPING THE APPROACH TORETAIN OUR HERITAGE

Retain Our Heritage

Angostura® rums celebrate the history and the true spirit of Trinidad and Tobago. Over the

last 192 years Angostura has successfully perfected the art of rum making, creating elegant

stylish rums that are now found across the five continents. We believe that our new

packaging reflects our sense of adventure and innovation and while aesthetically pleasing, it

also centres the brand geographically in its Caribbean birthplace and reflects the unique

nature of our journey from 1824.

Our adventurous spirit and drive for innovation are manifested in our music, food, art, and (of

course!) in the creation of our exquisite rums. The signature illustration: “The Spirit of

Trinidad” on our closures, captures the essence of our proud heritage and 192-year history.

Injecting the spirit of Trinidad & Tobago

Each element of this beautiful illustration captures an aspect of Trinidad

& Tobago

The Ship: Symbolic of the transportation of slaves and indentured labourers.

Of rum-running up the eastern coast of North America. Sailors on these ships

were rewarded for their hard work with a tot of rum, or grog!

The Scarlet Ibis: Brilliant and bold red plumage echoes the colours of

Trinidad and Tobago’s Flag. The Scarlet Ibis takes pride of place on the

national coat of arms.

The Sugar Cane in Arrow: The silvery blooms signal the ripening of the

luscious, sweet, sun-ripened sugar cane. Molasses from the sugar cane is

the first and most essential ingredient in Angostura’s fine rums.

The Dancer: She is the joyous Spirit of Trinidad and Tobago. Earthy, sensual

and all woman! She represents the cultural heritage of the nation beginning in

the days of the Amerindians.

The iconic butterfly logo of The House of Angostura - centred at the top of the front label

Two new brand icons have been added — a map of Trinidad and Tobago on the left, and an illustration of a

butterfly landed on the sugar cane that produces the molasses used in our quality rums

These images tell the distinctive story of the brand: Butterflies have always been associated with

Angostura’s rums since the House of Angostura is home to the Barcant Collection of more than 5,000

butterflies.

Elements of Our Heritage Notable on our New Packaging…

OUR BRANDESSENCE

Our new packaging was redesigned to set the tone of our brand essence:

What Angostura is What Angostura does

How Angostura makes me feel How Angostura makes me look

Creates premium rum and bitters which are recognised internationally

to bring out the joy of the moment

with true depth of flavourputting spontaneous smiles

on the faces of those lives it touches!

Iconic bitters and award winning rumcarefully crafted from long preserved secret recipes bya team of dedicated people who are an integral part of the Angostura family(real people).

Alive

Amiable

Convivial

Carefree

Approachable

Interesting

Animated

Unpretentious

Like I’m enjoying the moment!

BIG-HEARTEDNESS

ENRICHMENT

INCLUSIVENESS

Secret Recipes

Thoughtful

Chilled

Easy-going

Spirited

Quirky

World’s most expensive rum

Proud Trinidadian HeritageBrand Home &

museum

Butterfly icon

On site coopers

Royal warrant

Sigert & Fernandeslegacy

Awards & history

Personality

Bigheartedness

Inclusiveness

Enrichment

Our new packaging was redesigned to set the tone of our

brand essence

Angostura’s ethos is all about joy. It’s in our DNA. From our secret recipes of ancient times to exotic ingredients. Angostura exemplifies:

Inclusiveness:

Angostura is synonymous with spontaneous joy. The feelings that spark special times, where there

is no care in the world. The brand is seen as spirited, natural and easy going. Angostura is for

anyone seeking out a quality, aged rum.

Big Heartedness:

Angostura brings warmth and fun to any occasion. It is stylish and sophisticated, inclusive and

unpretentious; experimenting with new things are key! Everyone who speaks about Angostura

shares that sprinkle of light heartedness to lift the moment.

Enrichment:

Angostura enriches our lives.. a favourite drink with close friends and family. A simple feeling of a

well spent day. Real people whose lives seem better when drinking our rums.

The Shared Essence

We had to bring this through in the design of the new pack

DEVELOPING THE NEW LOOK:

1. BOTTLES

2. GRAPHIC ASSETS

A look at the category and competitors…

There was no over-riding convention

1. Bottles

Learning from our past

Vintage Bitters

Learning from our past

Vintage Angostura Rum

Which Informed our direction on Bottle shape

Making it more distinctive

Sugar cane / neck ribbing

Various brand assets at our disposal

2. Our Graphic Assets

Multiple ‘lock ups’ = confusion

Creating a new lock up

Injecting a touch of creative Trinidad & Tobago

THE FINISHEDARTICLE

CHARTING THE WAY FORWARD

To charter the way forward, ensuring that our rums are recognized as Caribbean

icons, we have:

Premiumised our packaging

Assigned on our back labels, the Authentic Caribbean Rum Marque (ACR)

issued by the West Indies Rum and Spirits Producers’ Association Inc., which guarantees

that the rum is a genuine Caribbean rum.

Ensure that our rums are visible and top of mind

- Increased rum education programs and tastings with the trade

- Communication our international awards for taste and packaging.

WHAT ARE THE LESSONS

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

• With 200 years of heritage, keep the elements that work

- Dates, signatures, awards

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

• With 200 years of heritage, keep the elements that work

- Dates, signatures, awards

• Cultivate a sense of provenance

- Illustrations, colours, type styles

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

• With 200 years of heritage, keep the elements that work

- Dates, signatures, awards

• Cultivate a sense of provenance

- Illustrations, colours, type styles

• Look to create distinctive ownable assets

- Build them into a premium feel with embellishments & finishing

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

• With 200 years of heritage, keep the elements that work

- Dates, signatures, awards

• Cultivate a sense of provenance

- Illustrations, colours, type styles

• Look to create distinctive ownable assets

- Build them into a premium feel with embellishments & finishing

• Simplicity translates to confidence and elegance

- Your heritage does a lot of the heavy lifting

Lessons learned

• Be clear on your brand essence and let it inform the creative

- Provides enduring focus

• With 200 years of heritage, keep the elements that work

- Dates, signatures, awards

• Cultivate a sense of provenance

- Illustrations, colours, type styles

• Look to create distinctive ownable assets

- Build them into a premium feel with embellishments & finishing

• Simplicity translates to confidence and elegance

- Your heritage does a lot of the heavy lifting

• Create room for incremental premiumisation

Thank you