When you’re one of the world’s largest beverage alcohol companies, you can sit back and take it easy while your product just flies off the shelves, right? Wrong.
Campari America, the U.S. division of Milan-based Campari Group, which is the sixth largest premium spirits company in the world, knows that success comes as a result of continually examining data such as user trends, sales, and account opportunities, and then making informed decisions on product and sales opportunities from that data.
I recently had a chance to visit Campari America at its office in San Francisco to talk about how it is using analytics to both predict and react to trends, and as a result, drive sales. Here are some insights from my visit.
Trends in the spirits industry
Campari America is home to some of the most popular spirits brands, including its namesake brand (Campari), SKYY Vodka, Aperol, Grand Marnier, Espolon Tequila, and Wild Turkey Bourbon. During my visit to Campari America’s office, I met with Matt Enny, sales analytics and reporting manager. We started off by discussing consumer trends in beverage consumption and how they impact the business. Matt talked about how the recession in the late 2000s led many consumers to cut back on going out. Instead, they started to make more drinks at home.
While the restaurant business has made a bit of a comeback, people are still enjoying making beverages at home before they go out. What’s appealing to consumers these days? Increasingly, it’s ingredients that appeal to the bitter palette or brown spirits like bourbon, which given Campari’s product line, fits right into the company’s wheelhouse. Heading out five or 10 years, the company believes that tequila will grow more popular, led by aged expressions.
So how is the company using analytics in conjunction with these trends? Campari America has been using Diver Platform since 2006 to help it with reporting. While Diver provides critical depletions and RAD data to the company, it also provides Campari America with insight that can help it react to consumer preferences.
Matt talked to me about how his users can identify a certain trend – let’s say an increased preference for cognac. They can then use Diver to find certain accounts where they believe their Grand Marnier liqueur, which has a base spirit of cognac, will perform well. For example, they could identify the top 25 fine dining accounts in California and then create incentives to target those accounts.
Value of an industry standard
One of the biggest benefits Matt and I discussed is the value of having an industry-standard platform in Diver. Because most of the top beverage alcohol distributors use Diver, Campari America can always trust that it is looking at the same data in the same way that its distributors are looking at it.
Matt also talked about the value that the Dimensional Insight team provides to the customer partnership. Matt says Dimensional Insight is “ready to play within the industry. I could pick up the phone today and call the help desk, have a spirits company-related question and use industry lingo and they would understand it. These people have been with Dimensional Insight for so long and particularly within supporting Campari – that relationship has just really solidified.”
Return on investment
Finally, Matt and I discussed the time and cost savings that Diver provides to Campari America. According to Matt, Diver saves each of Campari America’s power users about 10 hours a week in labor. That’s time saved in pulling data from different sources, performing the calculations, putting it into a template, and more. That means Campari pays back its yearly Diver investment in about four months. Those are statistics I’m proud to share!
Odds and ends
- Walking around Campari America’s office, I was struck by the number of alcohol bottles on everyone’s desks. Definitely not something you see every day in an office setting! But certainly appropriate given Campari America’s line of business.
- San Francisco is a fun city to visit with the trolleys and the sea lions. Following my meeting at Campari America, I was feeling ambitious, so I walked across the street and decided to climb the steps to Coit Tower. It was a lot of steps. (27 floors, according to my Fitbit!)
- Interested in exploring Campari America’s product line? Head to the company’s website, where you can look at different brands and download recipes.
You can read more about the company’s success with Diver by reading the Campari America case study on our website.
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