prestige product | serious spirits producer | United States | Spain
The Brotherhood
by
Pamela Robin Brandt
Among the specific restructuring steps the brothers took, Henrique
ticks off, "We cut employees from 600 to 264. We've lowered costs.
We've been much more effective at handling inventory. We've
increased prices. We increased exports; we'd been very focused on
domestic business and production and thought we were focused
internationally because we had a guy in
Spain,
Italy, and Peru.
But there wasn't a concerted effort towards that. We weren't even
in the
United States three years ago.
"On the domestic market we rebuilt our name. The presence of the
sons of the owner out in the streets, doing the work and talking
with clients, has really helped the esteem of the company and
raised confidence. They hadn't seen the owner for a long time. They
got the wrong message.
"And then there's a whole branch of activities we started to do to
lift up the category: a lot of education on rum, product launches,
tastings - high-end things. In other markets we've seen whiskey
take an important part of markets and consumers' minds, and then
vodka. We've seen tequila go boom. And I've been hearing that rum
is the next category to rise, grow, be fashionable. Definitely,
there are more people out there now prepared and educated enough to
appreciate our product."
In targeting the upscale "sipping spirits" market, Ludford says, it
was a sound strategy to introduce Santa Teresa to the U.S. through
its highest-quality, highest-priced rum, 1796, rather than starting
with a competitively priced product. "By leading with their
prestige product, they set themselves apart from the pack of rum
labels crowding the shelves," he explains. "They identified
themselves as a serious spirits producer. In this way, the
additional Santa Teresa products would be greeted with curiosity
rather than with the yawns usually reserved for $15 rums."
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