Futurologists and the spirit world seem to mix. Diageo has tasked resident innovation futurist, or "crystal ball man" Joe Spence with keeping it one step ahead of the competition in 2014.
Meanwhile interim CMO Adam Ballesty's job this year is to drive growth from less. Premiumisation is the order as Aussies "drink less but better" and though digital channels are becoming a core ingredient, the drinks maker remains committed to a healthy measure of big brand advertising.
Ballesty, who took over the top job when Matt Bruhn left for a global Smirnoff role based in the US, told AdNews Smirnoff, Johnnie Walker and Bundaberg remain priority brands this year, and Spence, who joined in the middle of last year from London Agency What If, is tasked with identifying where Diageo needs to go next with products and marketing.
But that goes beyond the priority brands, said Ballesty.
“There are a lot of brands we can look into the future with. Innovation underpins a lot of our plans for 2014 and beyond and we’ve changed the shape of our innovation team with our innovation futurist. He’s our crystal ball man looking into the future and seeing the trends. [His is a] very broad remit - from format, flavour, base spirit and route to consumer and finding spaces that are not necessarily the normal place of competition for a company like Diageo,” said Ballesty.
Innovation will come on two levels – local with brands like Bundaberg and through its global brands like Johnnie Walker.
Ballesty says the gin category is also good opportunity for growth this year, so its marketing could receive a tonic, as could the Bulleit Bourbon brand.
Premiumisation is also where the money is, according to Ballesty.
“For Bundaberg’s 125th year we were selling a liquid at $1300 and we sold out almost before we could put it on the shelves. That taught us two things; the brand continues to excite and delight the Australian consumer and that premiumisation for the Australian consumer is such a fruitful pace for us to play,” he said.
The “exceptional results” of the launch of Smirnoff Double Black late last year also showed the potential for premium drinks to “transform” Diageo's brands and it will continue to roll out innovations in the Smirnoff portfolio this year.
Diageo is increasing its investment in advertising and promotion across the brand portfolio this year and Ballesty claims its brands have a greater share of voice, than the company collectively has share of throat. He claims that suggests its comms are strong and effective.
Digital channels remain a focus in 2014, but not at the expense of the traditional: mass media is still vital for Diageo's brand awareness, he said.
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at rosiebaker@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.