August 2006 Editorial

the drinks business  magazine
AUGUST 2006 — EDITORIAL

HAVE YOU ever noticed when you’re out to dinner, talking to someone on a plane or even sitting in the dentist’s chair (as happened to me last month), that when people find out you’re in the drinks industry, you are immediately asked one of two questions? “What’s your favourite drink?” or “What should I be drinking at the moment?” This seems to apply particularly if you work in the wine trade.
What is it about wine that makes the consumer continually look for something new to drink? Is it simply down to the nature of the industry and the diversity of its offer With so many countries, so many different winemaking techniques, so many variables and vintages, in reality there is always going to be something new on offer to drive consumer demand.
It doesn’t seem to happen with beer or spirits. Or at least not as much in the more traditional categories such as whisky. Consumers are proud to say they’ve been drinking Brand X for 20 years. Your preferred brand says as much about you as the car you drive. It’s a statement of style, standing and how the consumer likes to be perceived.
Consumer response to the wine category seems by its very nature to put pressure on wine producers around the world. They are expected to be continually offering something new to consumers – and especially at the moment. Ask any switched-on producer which part of their business they are investing in most and the sharp ones will invariably say NPD and innovation. And interestingly it’s usually those companies who are having to deal with wider industry issues such as glut or exchange-rate issues that are investing the most in those areas.
Beer and spirits producers, however, are continually innovating; launching new brands and seeking out new ways to market and promote, when a lot of their consumer base will stick only to what they know. So why innovate?
That’s the question we are hoping to answer at the beginning of next month. From NPD to business strategies, the drinks business felt it timely to raise the issue of innovation in a forum that will draw on the experience of business professionals from both inside and outside the drinks industry and instigate open discussion about the commercial issues a company faces when trying to innovate. I hope you’ll be able to join us.

Charlotte Hey / editorial director & publisher