October 2011 Newsletter October 17, 2011

Innovation Spurs Growth for RTDs and Flavored Non-Scotch Whiskies A new just-drinks/IWSR report has found that non-Scotch whiskies, comprised of US Bourbons and Irish, Canadian, Indian and Japanese whiskies, have been bucking the recession with an impressive compound annual growth rate (CAGR) of 6.9% due to their innovation in the cocktail space. Flavored whiskies, such as Jim Beam’s Red Stag, are particularly popular among new consumer segments like younger adults and women. Bartenders, too, are experimenting with these new and old-fashioned flavored variants, like rye and wheat, in cocktails. The US has been especially adept in the Ready-to-Drink (RTD) market by targeting a younger consumer demographic, which has steadily shifted from beer towards spirits. Remember that Global Package has been supplying standard and custom spirits bottles for years. Read a summary of the report here: Speaking of Innovation (and Sustainability)- Here’s an update on the revolutionary MBS decanter bottle we featured in our last newsletter. Louis Rapin 2008, an all-natural, sulphite-free Bordeaux ‘micro-wine’ produced from 65-year-old Merlot grapes from Maison Blanche is the first French wine to be bottled in the MBS bottle. Nicolas Despagne Rapin says of the bottle shape: “This is the ideal bottle for enduring wines, it is a flame, it is a fire, a fine elegant woman.” Photo of the bottle is below. - The glass industry is continuously upgrading processes to reduce its carbon footprint. Last spring, Owens-Illinois (O-I) opened its photovoltaic plant in France equipped with photovoltaic panels that will produce energy “equal to the annual energy consumption of a town with 2,000 citizens.” The company has the goal “to reduce its carbon footprint by 65% by 2017, decrease its overall energy consumption by 50% and increase the proportion of recycled glass to 60% globally." Click here for more: - Here’s research about the sustainable benefits of green glass over clear glass in all drink categories, from wine to whiskey. The report states that a shift to green (recycled) glass “will cut packaging related CO2 emissions by 20%, and recycling glass back into glass production saves energy and reduces mineral extraction compared to the use of virgin materials. Keep this in mind the next time you’re specifying your glass bottle. Click here for the report: Color-Blindness and Packaging Did you know there are approximately 19 million people in the US who are to some degree color-blind? It surprised me and is making me think twice about color selection when advising clients. According to author Carol Kaufman-Scarborough of Rutgers University: “Reds and greens appear to pose the most consistent set of problems; dim lighting makes the problems even worse. Since color-blind persons process color information in a different way from color-sighted consumers, color-distortions can affect their abilities to choose products, to notice information in advertising and on packaging, and to operate effectively in store settings.” She says that while many folks may not technically be blind, there are some colors that are inaccessible to them, appearing instead as a confusing blend of grays. It’s something to keep in mind when designing your packaging. Click here: Pricing Your Wine It can be confusing trying to find a formula that works for pricing a wine these days. There are so many factors that need to be weighed and every year these change. I recently came across a couple of articles that attempted to take on this challenge, one relatively straightforward (“Margin or Markup”) and the other almost too complex to be helpful (“Pricing strategy for wine in today's marketplace”). I have a pretty simple formula: Your margin is a percentage that’s subtracted from the selling price, whereas your markup is a dollar amount you add to the cost. The topic is important because I often find that clients bring me in to discuss bottles before they’ve determined their wine’s price point, which is an essential first step. For example, a custom 100,000-bottle project with embossing and elaborate decoration cannot retail for $20, unless you want to lose money. You can read our White Paper on the topic here: To read the above-mentioned pricing articles, click here: and here: Rebranding? Try Crowdsourcing. After reading about the GAP rebranding gaff, where management decided to alter the iconic GAP logo only to be inundated by a storm of protest, I thought this was an interesting idea for wineries that are thinking about launching a new brand or regenerating a mature brand. The idea is to begin a conversation with the creative community to elicit ideas. This can take the form of a ‘contest’ whereby creatives submit and collaborate on ideas—be it content for a campaign, a name change, new identity, or design for a label—with ‘winning’ ideas awarded a cash prize. Author, Peter Ryder, on suggests the process can yield not only great ideas, but insight about how your brand is viewed in the marketplace. However, a strict and transparent process must be adopted to ensure your creative community perceives this as legitimate and not a scam for you to get something for free. “Make sure you give due credit to participants’ work and if possible, provide a public online showcase for it either during the project itself or afterwards,” he says. Read more about the process here: News 'n Notes With a packaging industry growing by more than 14% annually and the volume of discarded packaging increasing by 8-10% annually, China’s cities are in peril of drowning in household garbage. To address the problem, the Chinese government has legislated controls to reduce excessive packaging, the only country in the world to do so ( … What will they think of next? Wine comes in cans, pouches, PET bottles, and now the Swedes have come up with the Bag-in-a-Bag wine package ( and the French company, Sleever International, has introduced the SkinSleever, tactile coatings created with Helioflex printing technology, which provides a textured surface with the feel of metal, stone, cloth, wood or skin. Photos can be found by scrolling about ¾ down on this site: … In view of flagging sales brought on by devaluation of the currency exchange rate, the Australian wine industry is hurting. The iconic Yellow Tail brand has been forced to raise prices and has launched a new rebranding campaign to reposition it not as the low price leader, but as the “go-to” brand ( … Finally, remember that Global Package LLC offers a broad selection of screwcap bottles that are readily available from Europe, including 375mls and magnums.