Impact Seminar: Spence On Whiskey And Tequila; Creighton On The Three-Tier System
October 18, 2023Tequila and whisk(e)y are two of the hottest categories in the spirits industry, and Beam Suntory is well-positioned in both. The company’s president of North America, Jessica Spence, spoke on the topic “Beam Suntory’s Vision for the Future of Whiskey vs. Tequila,” at the 47th Annual Impact Marketing Seminar on October 4.
Spence’s presentation asked marketers to consider how they pitch whiskies and Tequilas to consumers, what messages they’re sending about who belongs in each category, and how those messages can impact a brand’s potential reach.
Early on, Spence summed up the common assumptions about whiskey and Tequila among American consumers and marketers. “Whisk(e)y is darker, it’s got craft, it’s got tradition. It is more masculine, it’s more mature. It’s a little bit quieter perhaps in terms of mood,” she said. “Tequila’s very vibrant. It’s colorful and young. It’s urban. It’s multicultural. As we still lean heavily into these codes, they are getting continuously reinforced. You can have an individual brand doing things differently, but people still are summing up everything they’re seeing across the category and that builds what that category is in their heads.”
She also highlighted whiskey’s role in American mythology and perceptions of American culture. While noting whiskey’s importance in that sense, Spence pointed to the changing demographics and culture of America today. “What is going to be central to the American story going forward?” she asked. “What is going to connect the best?”
While Spence noted the ways the industry currently excels at marketing whiskies and Tequilas, she also offered suggestions on how to bring more consumers into each category. For Tequilas, she praised the category’s welcoming message but said there was work to do in educating consumers on the craft of distilling and aging the spirit. For whiskey, she said, the challenge is the reverse. American whiskies in particular are adept at teaching consumers about craft and heritage, but marketers sometimes remain too focused on older, masculine consumers.
Francis Creighton’s presentation was a celebration of America’s three-tier system, underscoring the safety, variety, and widespread prosperity created by the regulations guiding how alcohol is sold in the U.S. The president and CEO of the Wine & Spirits Wholesalers of America said, “This market is a unique achievement, a profitable public-private partnership that serves the need of all stakeholders along the value chain. From vineyard to dining table, you all should be proud of this private system and work with us to support it.”
Creighton noted that the distribution system frees suppliers from having to warehouse all of their inventory, and governing regulations ensure consumer confidence in product integrity. He pointed to the benefits of the three-tier system for retailers as well, observing that independent distributors prevent “tied houses” where suppliers can force the on- or off-premise to stock products from only one company.
On e-commerce, he asked the TTB “to consider updates that accommodate future market scenarios such as the burgeoning e-commerce space, but that don’t upend today’s delicate balance in the market.” He continued: “In our comment to the TTB, we supported a continued even application of regulations to all markets in this space, avoiding the creation of carve out from a system that at its core is about a level playing field.”
Turning to cannabis, he called the current system “a colossal mess” that has failed to deal with the black market, adequately convey the potency of cannabis products, and handle impaired driving. His solution is to emulate the three-tier system that has governed alcohol since the end of prohibition.
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