RISQUE SVEDKA COULD COST CONSTELLATION ITS DISCUS MEMBERSHIP
Constellation’s acquisition of Svedka vodka has been viewed as an unpopular choice among analysts and other industry leaders. Why is that? An article in Advertising Age by Jeremy Mullman earlier this week zeroed in on the issue, so let’s take a look at some of the highlights.
Bascically, Svedka comes dangerously close (and is already there in some peoples’ opinion) to violating the self-regulated marketing code of ethics drafted by DISCUS, a powerful liquor lobby that Constellation is a big part of. It is largely due to DISCUS’ dedication to this code that its members enjoy access to cable TV advertising, but it was just a matter of time before a member company ran afoul through acquisitions.
While Svedka vodka is a non-member brand, it pretty much got to where it is today by flouting the very DISCUS code that others so carefully adhere to. Promiscuous fem-bots, shot glasses in cleavage, and other gratuitous hanky-panky are what made Svedka break through the crowded high end vodka market.
Constellation CEO Richard Sands said, “Svedka's phenomenal success is largely due to the eye-catching and effective marketing and advertising campaigns that reach a key segment of the young-adult market.”
Now, having been bought by Constellation, Svedka becomes a DISCUS member by default – and is as defiant as ever.
As published in Ad Age: "Constellation bought us for who we are," said Marina Hahn, Svedka's chief marketing officer, whose marketing team will be left intact after the purchase. "We're an edgy, smart brand that's broken through, and we expect to keep doing what has worked well."
According to the article, a Constellation spokesman said no decision had been made to change the existing ads or to instruct Svedka to adhere to the Discus marketing code. However, it’s very likely that Svedka will be forced to clean up its act under new management, simply because Constellation has too much at stake just to blow it on one brand. Being a member of DISCUS has helped put Constellation on cable TV, and we seriously doubt they’d compromise that position.
Tim Ramey of D.A. Davidson Research pointed out in his research note that Andy Berk, President and CEO of Barton, Inc. (the spirits division of Constellation), is also chairman of DISCUS.
Says Tim: “Richard Sands assured us that the current ad campaign is not in violation of DISCUS policy and that they hoped to remain on "this side of the line," while remaining pretty close to the edge.”
In our opinion, the ads can remain edgy, but still fall within the DISCUSS guidelines – but since no one ever listens to us, we’ll just have to wait and see.
Bascically, Svedka comes dangerously close (and is already there in some peoples’ opinion) to violating the self-regulated marketing code of ethics drafted by DISCUS, a powerful liquor lobby that Constellation is a big part of. It is largely due to DISCUS’ dedication to this code that its members enjoy access to cable TV advertising, but it was just a matter of time before a member company ran afoul through acquisitions.
While Svedka vodka is a non-member brand, it pretty much got to where it is today by flouting the very DISCUS code that others so carefully adhere to. Promiscuous fem-bots, shot glasses in cleavage, and other gratuitous hanky-panky are what made Svedka break through the crowded high end vodka market.
Constellation CEO Richard Sands said, “Svedka's phenomenal success is largely due to the eye-catching and effective marketing and advertising campaigns that reach a key segment of the young-adult market.”
Now, having been bought by Constellation, Svedka becomes a DISCUS member by default – and is as defiant as ever.
As published in Ad Age: "Constellation bought us for who we are," said Marina Hahn, Svedka's chief marketing officer, whose marketing team will be left intact after the purchase. "We're an edgy, smart brand that's broken through, and we expect to keep doing what has worked well."
According to the article, a Constellation spokesman said no decision had been made to change the existing ads or to instruct Svedka to adhere to the Discus marketing code. However, it’s very likely that Svedka will be forced to clean up its act under new management, simply because Constellation has too much at stake just to blow it on one brand. Being a member of DISCUS has helped put Constellation on cable TV, and we seriously doubt they’d compromise that position.
Tim Ramey of D.A. Davidson Research pointed out in his research note that Andy Berk, President and CEO of Barton, Inc. (the spirits division of Constellation), is also chairman of DISCUS.
Says Tim: “Richard Sands assured us that the current ad campaign is not in violation of DISCUS policy and that they hoped to remain on "this side of the line," while remaining pretty close to the edge.”
In our opinion, the ads can remain edgy, but still fall within the DISCUSS guidelines – but since no one ever listens to us, we’ll just have to wait and see.
posted at 11:38 AM
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