Bearing Fruit

Brandweek, Jan 1, 2001 by Terri Allan

Alize de France, a blend of cognac and fruit juices, was one of the fastest-growing brands in a stagnant liquor business during the mid to late 1990s. Marketed by Kobrand Corp., a privately held, New York-based import house best known for Taittinger Champagne, Alize created a low-alcohol category that has come to include entries by the likes of Remy Amerique and Bacardi-Martini. The success of the cognac-infused libation, particularly in urban markets, would ultimately move the brand in a natural, if reverse, direction.

"We did a lot of research and found that consumers were asking, 'Where's Alize Cognac?"' said Cathleen Burke, svp/director of marketing. Moreover, an analysis of on-premise consumption found that while Alize Gold (a blend of Cognac and passion fruit juice) and line extension Red Passion (Cognac, passion fruit juice, cranberry and a hint of peach) were generally preferred by females, it wasn't uncommon for male companions to order the brand with a shot of Cognac on the side. For these reasons, Burke, a 16-year Kobrand veteran, said, "We decided we should come out with the Cognac."

After five years in research and product development, Alize Cognac (or "Alize Blue," per its bar call) was first introduced last May, and gradually rolled into a total of 12 markets by year's end. Those markets, including New York, California, Texas, Chicago and Detroit, account for more than half of all Cognac sales, said Alize brand manager Kate McManus.

Produced by France's L&L Cognac House, Alize V.S. carries a suggested retail price of $35 per 750 ml bottle, while the ultra-premium V.S.O.P. is priced at $50. Both trade and consumer response so far has been "fabulous," McManus said. While refusing to divulge sales figures, she reported that early volume has already tripled the company's projections.

Although the introduction of the cognac label following the juice flavors was a rather untraditional move--somewhat akin to the launch of Amstel Bier here years after Amstel Light had established itself as the imported light-beer leader--Burke believes that Alize Gold and Red Passion will retain their product cachet. "It's a separate kind of product," she said. "We don't feel the juice is a daughter to the Cognac."

Burke noted that other cognac labels are also getting extensions these days, such as Remy Red. Indeed, the marketing vp dismisses the analogy of the ill-fated Amstel, preferring a comparison to the broadening of the Starbucks banner across the coffee and ice cream categories.

Nevertheless, Alize marketers wanted the cognac package to carry many of the same visual cues as the juices. "We felt it was important to retain the Alize logo treatment, because our first customers are going to be Alize consumers," Burke said. Ditto for the die-cutting of the label. While maintaining a family image has been a priority, she added, Alize wants consumers to know that the new product "is very much a cognac. "Thus a cognac-style fluted bottle was selected, featuring a jewel-like appearance and blue- and gold-foil labels.

Not surprisingly marketers expect early consumers of Alize Cognac to be made up primarily of Alize juice consumers and their loved ones. "Even though [the Alize consumer] is not the typical cognac demographic, it's not a demographic that's averse to cognac. It's a great lead-in to male consumers of cognac [via gift-giving]," Burke said. In fact, she said, "We're thinking of doing direct marketing to the Alize consumer to let them know about the cognac for gift ideas."

First introduced in 1986 at a time when passion fruit was a buzz word only among high-end chefs and foodies, Alize Gold was mistakenly targeted to "older women and men who drank cordials and liqueurs," Burke admits. But by the early '90s, the brand had begun to take root in urban markets, enhanced by grass roots programs and guerrilla marketing. At the same time, some members of the hip-hop music community including Queen Latifah and Dr. Dre, embraced Alize, citing the brand in their lyrics. And, thanks to the inroads made by Arizona Iced Tea and Snapple, exotic tropical fruit flavors were becoming more accepted among consumers.

As a result, the company saw a surge in Alize sales, Burke said. Indeed, in 1995, Alize Gold's sales volume more than tripled from the previous year, according to Impact Databank, N.Y.

In 1998, Alize Red Passion was launched nationally and hit the ground running, somewhat at the cost of cannibalizing Alize Gold. Red Passion, which Burke describes as "more sexy with a night feel to it," now outsells Alize Gold. "Red Passion has more appeal to men than Gold," Burke said.

Red Passion continued to grow in 1999, but the decline on Alize Gold also continued, driving down total line sales 5%, according to Impact. The launch of the cognac label, combined with healthy gains for the overall cognac category in recent years--thanks to popular cocktails such as the Hennessy Martini--was expected to jump start the Alize line in 2000.

To support the cognac entry, Alize has added some color to its marketing and promotional efforts. Enlisting the help of Cataldi Public Relations, New York, Alzie has stepped up its on-premise and guerrilla marketing programs. The brand continues to be affiliated with trendy entertainers and designers, with about four celebrity events scheduled each month, said president and creative director Sal Cataldi. These include a fashion show with West Hollywood designer/stylist Lura Starr, an event at the fashion and urban music expo Magic Show in Las Vegas, and tie-ins with New York radio stations for on-premise party nights that have resulted in on-air brand mentions.