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Molecular mixology comes of age

Beverage

mole0408.jpgThe growing trend for molecular mixology in high-end bars is growing into a global phenomenon, and also moving into the mainstream press.

Last week Time magazine explored the story of the trend which began with food, and which is spreading rapidly into the cocktail market.

Chemistry isn’t a word that most people associate with cocktails. But more bartenders are applying the science of molecular gastronomy to the search for a better drink, mixing alcohol with such stuff as liquid nitrogen, alginates and chlorides. — (Via Time)

And courtesy of molecular mixology…

#1 Cointreau caviar

#2 The apparently-nicer-than-it-sounds whiskyburger

McDonalds stages unsnobby coffee intervention

Beverage

snob0408.jpgMcDonalds has never been as edgy in its competitive battle with Burger King as it is proving to be in its battle with Starbucks…

Today it launches an Unsnobby Coffee initiative to stage interventions on expensive competitors…

Starbucks (nearly) flashes its premium boobs

Beverage

stab010821.jpgToday Starbucks launches a major new strategy, which it trailed last week as “something big“. After years of focusing on the espresso market, and after months of allowing itself to be caught in a distinctly unpremium battle with emerging competitors such McDonalds, today it returns to the drip business, and to its roots, with Pike Place Roast — named after its first store in Seattle.

Starbucks has spent the last few months sharpening its focus on the basics — a strategy Schultz is pushing as part of the company’s efforts to reinvigorate its U.S. business, which has suffered amid a soft economy and growing competition from rivals ranging from McDonald’s Corp. and Dunkin’ Donuts to Peet’s Coffee & Tea, Caribou Coffee and small, independent coffee shops. — (Via BusinessWeek)

Happily, it also takes note of something that we mentioned on our blog in January (see Starbucks with no clothes), as part of the new initative the brand also plans to tastefully flash its boobs…

To promote the new brew, Starbucks will spend at least two months serving all its coffee and espresso drinks in white cups with a version of its original brown mermaid logo. It’s been touched up to make the her long, wavy hair cover her bare breasts — a move aimed at pre-empting complaints it’s received in the past from people who find it too racy. — (Via BusinessWeek)

How to maintain Absolut’s prestige?

Beverage

abso0408.jpgWhen Absolut was sold last week to Pernod Ricard, most of the discussion was around whether the $8.9M payment was too much for the brand. It’s an iconic brand, yes, and Absolut is only outsold in the US by Smirnoff, but it’s important for the brand to know which premium shelf it sits on…

It ruled the category in the 1980s and 1990s, but that was before the arrival of the super-premium tier and competitors such as Ketel One, and Grey Goose.

Pernod Ricard CEO, Alain Barbet Pernod, has hinted at a premiumization strategy …

Barbet told Reuters in an e-mail message that the French company planned to apply experience it has gained by introducing higher-end versions of its drinks, like Chivas Regal 25 Year Old Scotch whiskey and Jameson Rarest Vintage Reserve Irish whiskey. — (Via Reuters)

A shift to premiumization is clearly a tempting prospect in the face of the sexier top shelf vodkas, it will be interesting to see whether shifting the brand upscale is the best first move for a brand won at such a cost…

The rise of super-premium water

Beverage

evia0308.jpgThe premiumization of the water category continues apace.

Today Evian launched an interestingly bold initiative, a Shop Evian website for all your e-commerce water needs. The brand has leveraged the design relationship that it forged with Christian Lacroix last year, to create a distinct luxury positioning somewhat similar to Bombay Sapphire gin

Evian has always been an affordable luxury and the brand intends to further reach its consumer base by making its products more easily accessible through this online shopping portal… ShopEvian.com allows consumers to purchase products from the world’s most luxurious bottled water from the luxury of their own home and answers consumer demand for a public forum to purchase many of the brand’s more exclusive items. — (Via PR Newswire)

Discover “pure luxury for your home” at the Shop Evian website

The repositioning of Evian as a premium brand is surprisingly credible, for a water brand, and certainly in comparison to some competitors…

Bottled water reaches $40 a bottle in Claridges, London (Via ABC News)

A Japanese manufacturer Vie Luce just launched a super-premium water brand, Fillico Beverly Hills, retails for $100+ a bottle in the US (Via VieLuce)

And - also from Japan - Fine (pronounced Fin-ay) - in collaboration with Karim Rashid, a very Zen approach (Via Fine Japon)

Against this trend, a growing sense - nowhere stronger than in the UK - that bottled water “borders on the morally unacceptable” (Via Agence France Press)

Starbucks closing stores today

Beverage

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As Starbucks wrestles - increasingly dramatically - with its loss of market share; it is forced to take drastic measures to try to protect the premium positioning of the brand.

Today every Starbucks in the USA will close for three hours for emergency ‘customer experience’ training…

Among the various lessons that will be re-taught include how to wipe the steamer wands and remembering to rinse the pitchers and shot glasses every time. — (Via Huffington Post)

Rather gleefully, to coincide with the three hour window, Dunkin’ Donuts - the brand which never used to be considered a rival to Starbucks - will drop its price for a small coffee down to $0.99 from 1 p.m. to 10 p.m. as “to ensure that no coffee lover is denied a delicious espresso-based beverage.”

In other product pricing news, Starbucks has followed up the January news of its extreme price cut, with the testing of an extreme price rise…

Starbucks Corp. is experimenting with a $2.50 cup of coffee that would add a new, premium product to help fight the first drop in U.S. customer visits in its 37-year history. In Seattle, Starbucks is testing a 12-ounce cup of “fresh-pressed” coffee at $2.50 each. The price is $2.25 in a Boston trial. Starbucks charges $1.55 for a regular brew. — (Via Bloomberg News)

Molecular mixology comes of age

Beverage

mole0208.jpgOver the last few years, much has been written about the molecular gastronomy trend; in which scientific innovation has reimagined the cooking process. The most famous molecular gastronomy restaurants in the world are The Fat Duck, and El Bulli.

More recently, we have seen a rising trend in molecular mixology in key influential bars across Europe and the US.

The trend is now going mainstream…

Cointreau has just announced a molecular mixology initiative, beginning with the launch of Cointreau caviar. (Via PRNewswire)

And, Bacardi is hoping to reinvent the mojito using similar techniques - (Via YouTube) And - (Via Wallpaper)

Molecular mixology is too new to have its own Wikipedia entry, but look for that to change - quickly.

Premium coffee comes to China

China

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As a sign of the growing sophistication of luxury culture in China, and one of the first signs of ‘accessible luxury’, the first premium coffee brand cafe, Citta Espresso Club, has just opened in Shanghai.

Citta Espresso Club plans to open eight stores this year and 140 outlets in the next four years.

The founder of the brand, Maayan Kahn, is juggling between a high luxury positioning and a much more democratic one…

“We’re trying to be the Versace or Armani of coffee. To do that, we’ve understood very quickly that coffee is not enough - you have to bring a lifestyle. We don’t just sell products… People want to be part of something good and here you can feel like a millionaire without being one. You can order something small but still feel the luxury.” — (Via Shanghai Daily)

In addition, the cafe is a blend of Italian, French and Chinese cultures; Italian coffee, French pastries, and food based on the Chinese “five colors per day” method — five different colors (types of fruits or vegetables) in each item.

Citte Espresso Club website… in progress…

Starbucks with no clothes

Beverage

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To many US consumers, Starbucks had been the brand you hate to love.

The morning Starbucks ritual became unavoidable, partly because it felt like something special, but also because their ubiquity made it increasingly difficult to go anywhere else.

So, in the current frenzy of news attention, apart from the annoying complexity of the puns “Starbucks trying to put steam back into the foam of shareholder concerns” etc. it’s interesting to hear the consumer perspective as they are vox-popped on their way to work.

Everyone seems, almost overnight, to have come to the consensus that it’s just too expensive, and has been all along. And the looks on many faces suggest they are surprised it’s taken so long to realize.

The original Starbucks logo was famously topless, before corporate discretion lengthened her hair. Events during the past few weeks appear, at least temporarily, to have revealed the brand’s boobs.

Starbucks cautious for 2008 (Via Reuters)

Starbucks goal: recapture its early buzz (Via International Herald Tribune)

The sub-paragraphs of this BBC article sum up its woes in 7 words … Cannibalising, Ubiquitous, Image problem, ‘Easy to copy’ (Via BBC)

Meanwhile, shareholders look forward to the details of a transformation plan, including “five bold innovations” to be delivered by CEO Howard Schultz on 19 March…

Starbucks trades down

Beverage

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Starbucks CEO Howard Schultz once said, “Our marketing will emphasize quality and service, not price.” It’s a quote which may come back to haunt him…

The premium positioning of Starbucks is looking increasingly vulnerable as McDonalds trades up to compete at latte level, and Starbucks apparently reacts by trading down to engage McDonalds in battle.

The power of the Starbucks brand was that it transcended the coffee category, and refused to compete on price, but under increasing pressure, it has retreated to a competitive battle at product level with brands that never used to be considered its equal.

So this week’s decision to offer $1 coffee at Starbucks - although in limited locations - suggests that the brand is about to head into Burberry-esque problems of over-extending itself at a low price point and causing damage throughout the brand.

The amount of press the proposed $1 Starbucks coffee has caused, is a sign of the level of scrutiny that that brand will continue to get as it tests new price possibilities in the full glare of the media.

This is Starbucks jumping the shark. Starbucks’ marketing and merchandising dept. seems to be coming to the conclusion that Wall Street arrived at almost a year ago: At 15,000+ stores worldwide, Starbucks is no longer the cute chain of neighborhood coffee shops known for its high-priced lattes and breakneck growth. It’s a large quick-service restaurant chain with a broad customer base.

– (Via BusinessWeek)

The $1 test undercuts even low-cost coffee purveyors, including McDonald’s Corp. and Dunkin’ Donuts, a unit of Dunkin’ Brands Inc., whose coffees generally start in the low $1-plus range. Although most sit-down restaurants top off customers’ coffee free of charge, specialty cafes have largely stayed away from the practice. Starbucks will face increasing competition this year from McDonald’s, which plans to start adding a line of espresso drinks at its U.S. restaurants.

– (Via Wall Street Journal)

It doesn’t jive well with their strategy of slowing down store growth and focusing on the experience of customers,” Walsh said. “Once you start making your customers cost-conscious it’s ingrained in the brand. … It’s only drip coffee and in test areas, but it’s a risky strategy.”

— (Via Seattle Post Intelligencer)