DB AT 100: Centennial celebrations

the drinks business is 100 issues old and Patrick Schmitt marks the occasion by looking back at some of the magazine’s key themes over the years, from rosé to RTDs, and from cider to China.

Summertime 2002: ok, so you probably weren’t enjoying the rise of “gangsta rap” popularised by 50 Cent; trailing baggy denim trousers or sporting a chunky gold chain but you were – hopefully – rifling through the first ever issue of the drinks business (left).

It was July, Jacques Chirac has just dodged a bullet during Bastille Day, tragedy had struck at a Ukrainian airshow, and for those in the wine, beer and spirits trade, there was a new kid on the publishing block. Glossy and beautiful, but serious and learned, the drinks business burst onto the market in this month as an original, powerful addition to the world of trade publishing.

It had a clear intention: it would focus on the business of drinks – the production, distribution and marketing of alcoholic products, with an emphasis on brands and branding. It would profile opinion formers, look outside drinks as well as within the trade, and bring fresh analysis to a rapidly evolving industry.

It was ambitious. But 100 issues on we hope we’ve done all we set out to do, and much more. It’s been an exciting period, and we’re celebrating this milestone issue with a new look, as well as a consideration of the major changes in the trade since our launch.

The rise of pink plonk

It seems right to begin with rosé as one of the most notable trends in alcoholic drinks since our first issue. Pink wine may have been the longtime summer staple of Brits holidaying in Provence, but it wasn’t until the turn of this century that it became the mass-market pour in pubs, bars and UK households. Back in July 2002, few would have guessed that California would be the driver of overriding change to the British drinks scene, let alone using the grapes Grenache and Zinfandel.

But with two big brands at the helm – Blossom Hill and Gallo – the rosé story has just kept running throughout db’s history, and only just appears to be peaking as we produce this month’s magazine, with just under 12% of the retail wine market.

There’s barely a wine-producing country without a decent rosé offering – there’s even pink prosecco, and, from Brown Brothers, a pink Australian Riesling – while interestingly, the fastest growth within this category is now Germany.

The rise and fall of RTDs

The demand for rosé came at the expense of other categories. In wine, some believed consumers were simply switching from one sweet product to another: entry-level sweet German wines such as Hock and Liebfraumilch were in decline and so called “blush” rosés from California with similar residual sugar levels were on the rise.

However, what has now been proved more likely is that rosé was bringing new consumers into wine, primarily women, and from the alcopop or RTD category. the drinks business witnessed and repeatedly reported on the fall of RTDs (and now, their reinvention and return, that is, as premixed drinks).

During the decline, we produced a groundbreaking feature on the reality of residual sugar in drinks, comparing the levels in soft drinks, rtds, mainstream wine brands and leading rosés.

As we identified then, the formula for blush rosé is strikingly similar to liebfraumilch, exposing residual sugar levels of 35 gram/litre in the former, although this is still some way behind 80-90g/l in your average alcopop.

By September this year, despite the continued rise of rosé, we concluded that the much-maligned rtd category had not disappeared, but evolved from being standalone products into what can be classed as brand extensions to established spirits.

In other words, alcopops such as Hoopers Hooch had gone, but the likes of pre-mixed Jack Daniel’s and Cola have become a highly successful reality.

Cider gets sexy

For further proof that drinks categories don’t disappear, but simply reinvent themselves, db has witnessed and reported on the sudden reemergence of the cider category.

The story is too well known to repeat, but it’s incredible what a different format, some ice, and lifestyle advertising can do for a brand, even a whole sector – yes, over the course of our last 100 issues it’s the Magner’s phenomenon that stands out.

Again, the demise of the alcopop led drinkers into other areas, and aside from rosé it was packaged cider that benefited. In fact, such was the success of the Magner’s-over-ice serve even Gallo soon attempted it with its rosé, while Champagne tried to bring this controversial consumption technique to the UK – that is from St Tropez.

Meanwhile the cider sector continued to adapt and intrigue, with the launch of firstly a mass of pear ciders – perry by another name – and then quasi RTDs as various fruit-flavoured ciders emerged. For the future, watch out for the “premium packaged product” that is alcoholic ginger beer – kicked off by Crabbie’s, and now joined by Fentiman’s.

Pinot-mania

db learnt not to underestimate the power of a box-office hit in shaping people’s tastes when in October 2004 the film Sideways was released.

This amusing story of a road trip through Californian wine country featured a character who, particularly fond of Pinot Noir, but not Merlot, changed the world’s opinions of what they should drink. Indeed, following the film’s US release, Merlot sales dropped 2% and Pinot Noir sales increased 16% in western America.

The demand for Pinot Noir has continued to increase, as have plantings, more of which are coming onto the market as db passes for press, helping to boost the supply of affordable Pinot.

But it’s not just the darkest skinned version of this grape that has been at the forefront of vinous fashion over db’s last 100 issues. In keeping with the world’s love of Italy, Pinot Grigio from the Veneto has been the white wine phenomenon of the last decade.

Light in colour and taste, but as refreshing as super-chilled lager, this grape has become the default choice for many wine drinkers, in particular women, in the UK bar and pub sector. Will Pinot Blanc follow? 

Wine around the world

Out of all the wine-producing countries jostling for international recognition since db’s inception it must be New Zealand that has experienced the greatest turnaround in fortune.

With its Cloudy Bay brand as an upmarket beacon and highly recognisable style of Sauvignon Blanc, this remote corner of the wine world conquered first the UK market and more recently its neighbour, Australia.

Importantly, it held remarkably high price points for its exports, although more recently, it has become something of a victim of its own success with expanding supply fuelling deep-discounting activity. On a different note, the country has single-handedly made the screwcap the acceptable closure for aromatic white wines.

Chile has been another success story of the last decade, offering consumers exactly what they want when it comes to everyday drinking – value for money and reliability.

It has struggled, however, to sell a fine wine image, something which France has managed to retain throughout db’s 100 issues, although at the volume end of the market France has given way to Australia and the US.

Retail renaissance

Much of the impetus for the premixed brand extensions, smaller formats and array of drinks innovations was a trend in drinks over the last eight years to at-home consumption, and accelerated decline in on-trade sales.

Products such as premixed Southern Comfort and Lemonade were a way for brand owners to keep their customers drinking “cocktails” using their preferred label – but outside the bars and clubs.

The background to this development was of course the near-disappearance of the backstreet boozer post the smoking ban and we devoted huge tracts of editorial to the expected effects of this piece of legislation, followed by the actual impact.

Then of course came the recession. Together two trends emerged. Firstly people increasingly stayed in, but still treated themselves to high-quality products (a decent bottle of wine and fillet steak was still cheaper than eating out) and secondly, on the rare occasions they did go out, they wanted something luxurious – they became “weekend millionaires”. Such behaviour marked an end to the shabby pub or restaurant.

On the high street

Not all was rosy on the high street either. Not long after db launched it found itself reporting on the fall-out from the closure of longstanding UK off-licence chain Unwins.

Exposing a terrifying trail of mismanagement and then the mass of unpaid producers and suppliers, it was a shock for the trade, but one that became overshadowed at the end of last year with the closure of Threshers – when almost 400 off-licences shut their doors for the last time.

Searching for someone to blame, many pointed the finger at the increasingly aggressive supermarket sector, where db has watched discounting become deeper, supported by strategies such as selling three bottles for £10.

But hindsight has helped expose a high street that was oversupplied with outlets which failed to offer a compelling point of difference from cheaper and more convenient multiple retailers.

We’ve since seen and reported on the rise of the independent wine shop and online operations, which offer personalised service and a wide and eclectic drinks range.

Move upmarket

In essence, during db’s existence, an increasingly polarised retail market, with supermarkets at one end and the specialist independent at the other, continues to reflect the growth of a value-seeking, discerning consumer – the sort who might fly EasyJet but eat in a Michelin-starred restaurant. Indeed, we witnessed an entirely new word enter the English language: premiumisation.

At the extreme, we reported on pre-recessionary conspicuous consumption that included the spraying of prestige cuvée Champagne such as Cristal on the walls of London nightclubs. However, less sensationalist but more important for the overall trade has been an underlying shift to marginally better brands – a move away from the likes of own-label and towards carefully crafted and authentic products.

The emergence of the “super-premium” white spirits sector has been proof of this change, and db has recorded an explosion in expensive vodkas, gins and Tequilas over the last eight years, helped by a growing international demand for beautifully made cocktails. Within this period, brands such as Grey Goose and Patròn stand out.

China

Of course there are so many more changes and tales to report from the last 100 issues of db, but if there’s one remarkable alteration to the international landscape of drinks since that first issue left the printers in July 2002, it is the rise of China as a major consumer of luxury brands.

Such is China’s increasing importance for wine, db broke new ground last month by launching its first online magazine – the China Report 2010, available to read on db’s website.

The nation’s desire for upmarket spirits has grown at a remarkable rate, but more extraordinary is its sudden and massive demand for fine wine – above all the most expensive labels from Bordeaux, in particular Lafite.

This trend, exacerbated by the abolition of import tax on wine in Hong Kong in February 2008, has kept London’s leading fine wine merchants buoyant during even the depths of the recession while forcing prices up for the top châteaux in Bordeaux.

So if there’s a single major change during db’s history in terms of products it must be the rise of rosé, but in terms of global trade it’s undoubtedly the rise of China as a consumer of super-premium products – when db launched, Western Europe was borrowing and consuming too much, and Asia exporting too much; now the West is starting to save, but Asia is enjoying its new-found wealth with a seemingly insatiable demand for the very best.

Closures

Throughout db’s history if there’s one debate that has run on from heated to tepid and back again it is the issue of closures for wine.

With the help of Sally Easton MW’s expertise we have covered every angle and argument, be it consumer perception to scientific revelations, and yet, still, the case is not closed.

But it’s certainly clear that over the last 100 issues screwcaps have become the default closure for New World aromatic whites, and natural corks remain the only solution for fine red wines.

Meanwhile, the Champenois have dabbled with different closures but very few have put a wine on shelf with the crown caps they use in the cellar.

The discussion has had a positive outcome, however: it has prompted detailed research into how wine develops in bottle while exposing how little we really understand about the chemistry of drinks.

The Douro

If one considers the last eight years of db’s reporting on developments in the wine producing countries worldwide there is one region that stands out for its leap into fine wine stardom; a place with a history of creating table wines for its domestic market, but not, until recently, an international audience of rich wine collectors.

This place is the Douro. Yes, it’s the longtime source of Port and since the ‘70s, the Barca Velha table wine, but it has only been in the last decade that its still wines such as Niepoort’s Charme or Batuta, or the Prats and Symington JV brand Chryseia, have shot to widespread acclaim.

Such beacons of quality from the Douro have also changed perceptions of Portuguese wine as a whole – a country which has attracted particular interest from commentators and buyers since db launched. 

Under attack

db has definitely witnessed a drinks industry under attack during its last 100 issues. Anti-alcohol lobbying groups in the UK have been particularly vocal, supported by a sympathetic media and government.

However, the last decade has also been characterised by a drinks trade with a much more organised and effective defence, and in terms of consumer marketing db has watched the Portman Group produce Drinkaware, and Drinkaware produce the Campaign for Smarter Drinking.

The latter, a db award winner this year, comprised 45 companies who raised £100 million to work with the government to launch the largest ever social marketing project to promote responsible drinking.

But looking back, it is Mike Paul that we have to really thank for a concerted trade response to increasing governmental pressure for the industry to combat excessive drinking.

Paul formed the Wine Trade Action Group and through this, as db wrote back in 2006, “He took the initiative to get key members of the UK wine trade together and actively confront the problems that we faced with social responsibility, EC legislation and taxation and helped to revolutionise the WSA.” db awarded him with the “Outstanding Contribution in the Wine Trade” trophy as a result.

Paul’s baton was picked up by the WSTA’s Jeremy Beadles, who with the help of first Christopher Carson and then Tim How has effectively defended the drinks trade against heightened duty increases and more recently, protected the wine trade from exhaustive EU legislation surrounding ingredient labelling.

The drinks trade may have suffered abuse and increased taxation over the last decade, but the penalties would doubtless been much worse had the WSTA had not ceaselessly lobbied the government. 

Featured faces

As for personalities, there’s little doubt that db must put the Cox twins as the most featured faces on our pages. Michael Cox in particular, renowned for his dance moves but also his unstinting work to promote Chile and support the UK wine trade at large, has put in the most appearances.

But we’ve had an extraordinary array of people in db over the last 100 issues, including Jay-Z and James Bond, as well as big hitters from every major drinks company, from Cecile Bonnefond at Veuve Clicquot to Tim How at Majestic.

Attracting particular attention has been our interviews with those outside the drinks industry. Kevin Roberts, ad-man extraordinaire and CEO of Saatchi & Saatchi, was one of the most outspoken and thought-provoking commentators.

Interestingly, his views on the wine trade published by db over 20 issues ago are still relevant: “You have sold yourselves to the Mammon of volume and the retailers are lapping it up… this is an emotional category that is being sold functionally; a category of dreams is being sold on price.”

And the message was no less hard-hitting when, this year, we featured other high-profile ad man Sir John Hegarty. While this month, we feature the views of highly respected Hatch Mansfield MD Patrick McGrath, db’s first ever “Man of the Year”.

db developments

the drinks business itself has developed significantly since issue one, notably from a monthly magazine into a powerful multi-media brand in the beer, wine and spirits trade.

It has achieved this over the last eight years through the development of its awards, designed to recognise and reward excellence in drinks; its numerous special reports on trends, sectors and countries; and as its powerful online presence.

Its internet-based activity has been particularly pioneering, with not only its always up-to-date thedrinksbusiness.com, but also its own site for video recordings at drinksbusinesstv.com.

Providing daily analysis and comment over email has been a further extension to the drinks business offer in more recent history – sign up to these if you haven’t already here.

Further, the use of YouTube and Twitter has encouraged readers to engage with the brand in new ways, while the recent launch of a weekly trade round-up, In Pictures, entertains the industry on Fridays.

In October last year, the success of our e-newsletters inspired the launch of an online-only offshoot, The Beer Business, the first report dedicated to all sectors of the international beer trade. Of course this follows the introduction of sister magazine The Spirits Business, but precedes db’s new title for the on-trade, Eat.Drink.

Also noteworthy is the launch and rapid development of our fine wine coverage through a new section in the magazine. This has spawned the decision to hold the title’s first consumer event, the Fine Wine Fair.

Then there’s our coverage of environmental issues affecting the drinks industry, which has become a hallmark of the magazine. This began with a “green issue”, followed by a high-profile “green power list” and in the last two years, the theme became encapsulated in a monthly green section which culminated in the first ever Green Awards for alcoholic drinks.

Finally, our expanding people section has precipitated recruitment advertising, because, as one powerful industry figure said, those who don’t read the drinks business aren’t worth employing.