Archive for the ‘Drinks’ Category

Service of the Honor System

Thursday, September 20th, 2018

Photo: uvamagazine.com

These days you’ll walk out of Drug Store in Tribeca in Manhattan with a pricey health drink without paying–though the drink isn’t free. You’re expected to send a text message to the drink manufacturer, Dirty Lemon, that owns Drug Store, after which you’ll receive a link in which to post your credit card number. That’s the same way customers order cases of the lemon-flavored drink-with-supplements for shipment home.

Dirty Lemon bottles Photo: tribecacitizen

But this isn’t just any old lemon drink. Whatever your inclination, it is purported to have beauty, sleep, anti-aging, detox or other benefits depending on additives of collagen, magnesium, rose water or charcoal for example. On the website, Daily Detox, one of the drinks, costs $45 for six bottles, shipping included, and $65 on Amazon.

Erin Griffith wrote about the store in The New York Times. Dirty Lemon founder Zak Normandin doesn’t anticipate much theft from his largely young female customers, and said he’d allocate losses to his sampling budget.

Dim sum. Photo: cnn.com

And while much of the competition is closing retail outlets and increasing a digital presence, he plans to do the opposite by opening four more stores. In addition, according to Griffith, Normandin “shifted almost all of its $4 million annual digital advertising budget into its retail stores.”

[An exception is Amazon which by 2021 expects to have 3,000 stores without registers. People will pay via their smartphones.]

Photo: retailwire.com

Buying on the honor system is nothing new. Order dim sum in some Chinese restaurants and the waiter will tally the empty little plates on the table when you’re done. Checking yourself out at grocery and other stores similarly counts on customer honesty. Scofflaws could easily hide a few dishes at plate-counting time at the restaurant and pay for every other item in the do-it-yourself checkout line–but most don’t cheat or the system would have already died.

In Vienna, years ago, we were guests of local friends and eight of us sat at a big table. When lunch was over, the host told the waiter what we’d ordered and only then did he write anything down. I wonder if that’s still a custom. In a Scotland Inn if you made yourself a drink or took a soda from an unlocked cabinet in the living room you jotted down your choices. And all over the U.S., especially in rural areas, customers fill cash boxes with money owed for fruits, veggies and flowers at farm stands where nobody is around.

Do you believe that the honor system works equally well in cities as in the country? Can you think of other examples? Will it increasingly be in our purchasing future?

 

Photo: myjournalcourier.com

Service of Changing Taste: The Lowdown and the High

Monday, August 13th, 2018

Photo: 13.com

Question: What do smart marketers do when consumers cool on their once hot product? Answer: Develop the next trend.

Beer consumption has slumped—Americans chose wine or cocktails over beer in 2017 for the first time. Saabira Chaudhuri and Annie Gasparro wrote that drinkers “are thinking about other things: taste, value, beer bellies.”

Photo: stealingshare.com

In their Wall Street Journal article they cite Beer Institute stats: the brew was 60.8 percent of people’s drink of choice in the mid-1990s. Last year it dropped to 49.7 percent. People 21 to 27 years of age chose beer 65 percent of the time in 2006 vs. 43 percent two years ago according to Anheuser-Busch InBev SA.

Enter brewers like Lagunitas, a Heineken company, among several “diving into the deep end of the cannabis-infused drink pool.” The brand introduced a sparkling water drink for sale in California called Hi-Fi Hops according to Steve Huff on maxim.com. “Lagunitas says their 420-friendly fizz comes in two strengths: a lighter version with 5mgs of THC and a stronger one loaded with 10mgs of the only reason anyone messes with cannabis anyway (it’s the THC that brings the mellow, in case you didn’t know).” THC stands for tetrahydrocannabidinol.

Photo: forbes.com

According to Huff, “If anything, the beer maker is a little late to this game. Blue Moon founder Keith Villa is producing craft beer loaded with THC. Corona is ready to join the game, too. And California vintners have been infusing wine with weed for a while now.”

Cannabis is legal in Canada but is against federal law here. Mike Adams, contributing writer at Forbes, wrote that “Molson Coors, the second largest brewer in the world, is reportedly trying to get into the game.” It’s considered by some currently a risky venture for sales in the U.S right now though “the beverage sector alone is expected to produce $15 billion a year, according to statistics from Cannabiz Consumer Group.”

Photo: newsnetwork.mayoclinic.org

Adams reported that in Canada the market might jump from $5 billion to $22 billion because, as a Canadian brewer planning to introduce a cannabis beer observed, “Smoking has lost, and beverages are how we like to become altered.”

Do you think that cannabis drinks will take up the sales gap for breweries made by decreased beer sales? Will pressure by breweries, along with other interest groups wanting to make cannabis legal, convince lawmakers to change the law in the US? Have you tried a cannabis drink?

Photo: thedrinkbusiness.com

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