NEW BUSINESS PITCH

SHAKE THINGS UP

NAME BRAND PITCH TYPE

AdvertisingWork

MARKET

United States

DATE

April 6 , 2016

The Data You Need to Win This Pitch

DESCRIPTIONDetails are very sparse on this one, but sources tell us that Skyy Vodka–which is owned by Campari America and was the

third highest-selling vodka in the U.S. in 2014–is looking for a new agency partner. Skyy picked Venables Bell & Partners as its new lead creative agency in November 2013, with the San Francisco shop beating out Mekanism and Mistress for the business several months after Campari purchased the vodka company for more than $200MM (it had previously owned a minority stake in Skyy Spirits). At the time, Campari’s estimated media spend for its new brand was $30 million for 2014.

Skyy Vodka shopping for a

new Agency

th

Client Profile / Market

SKYY vodka is produced by the Campari America division of Campari Group of Milan, Italy, formerly SKYY Spirits LLC. SKYY Vodka is 40% ABV or 80 proof, except in Australia and New Zealand where it is 37.5% ABV / 75 Proof and in South Africa where it is 43% ABV / 86 Proof; SKYY 90 Vodka is a 90 proof high-priced brand aimed at martini drinkers, as well as flavored SKYY being 70 proof. Its creator, Maurice Kanbar, claims the vodka is nearly congener-free due to its distillation process. The bottle is a cobalt blue with a clear, adhesive label. In 2008, SKYY expanded the SKYY Vodka line with five new flavors, referred to as SKYY Infusions.

FINANCIAL OVERVIEWCOMPANY BACKGROUND

MAIN COMPETITORS

2015 Sales (mil)

2015 Employees

Employee Growth Percent

Assets (mil)

Net Income Growth Percent

Sales Growth Percent

95.297

100

NA

NA

NA

NA

The spirits market in numbers

64.6% 35.4%

MARKET SHARE RELATIVE TO BEER - REVENUES

BEER SPIRITS

MARKET SHARE RELATIVE TO BEER - VOLUME

- Distilled Spirits Council - - Distilled Spirits Council - - Distilled Spirits Council -

$72BOverall retail sales of distilled

spirits in 2015 +4.1%Suppliersrevenues +2.3%Suppliers

volume

33.5%

Vodka: The backbone of the spirits industry

OF ALL SPIRITS VOLUME 9-LITER CASES SOLD IN REVENUES FOR DISTILLERS

32% 6.8 Million 5.8 Billion

Smirnoff

Absolute

Svedka

Skyy

Grey Goose

New Amsterdam

Pinnacle

Burnett’s

Tito’s

Ciroc

13%

5.8%

5.8%

4.0%

3.9%

3.5%

3.5%

3.4%

3.3%

3.1%

- 0.39

- 0.45

+ 0.20

- 0.07

- 0.06

+ 0.69

- 0.42

+ 0.12

+ 1.47

+ 0.11

BRAND 2014 U.S. MARKET SHARE CHANGE FROM 2013, IN PCT. PTS.

New Hampshire ranks #1 for spirits consumption

PER CAPITA CONSUMPTION DAILY CONSUMPTION BY STATE

1.6GALLONSAvg per capita

consumption of SPIRITS in 2014

0.5GALLONSAvg per capita

consumption of VODKA in 2014

0.2

0.4

0.6

0.8

1.0

1.2

SPIRITS (In 1.5 ounce shots per day per capita)

Source: The Beer Institute

70.000

17.500

Millennials defining the trends in the spirits market

VOLUMES BY PRICE CATEGORY- Distilled Spirits Council -

TRENDS IN THE SPIRIT MARKET- Distilled Spirits Council -

20152014

Super PremiumHigh End PremiumPremiumValue

0

U.S. Vodka Volumes by Price Category(9-Liter Cases, 000)

6.409

13.636

20.395

26.503

5.562

15.150

20.633

26.815

Millennials of legal drinking age interest in discovery driving innovation and premiumization.

Focus on craft-style, artisanal products benefiting both large and small producers

Consumer fascination with provenance dovetailing with spirits’ authentic heritage

Growth of micro-distilleries generating excitement in the spirits sector

Cocktail culture continuing to define nightlife in cities across the country

52.500

35.000

Enjoying various type of spirits with friends

Millennials and Spirits: An expanded experience Millennials prefer social drinking

20% of Millennials consumes 4 types of spirits

20% of Generation X consumes just 2 types of spirits

VODKA

RUM

WHISKEY

TEQUILA

- NIELSEN - - NIELSEN -

MILLENNIALS PREFER TO DRINKWITH FRIENDS

GENERATION X SPLITS 50/50 BETWEEN

DRINKING WITH FRIENDS AND ALONE

BABY BOOMERSPREFER TO DRINK ALONE

MILLENNIALSOCIAL DRINKERS

• • •

• • •

QUICK DEFINITION

Social Drinkers are the most frequent consumers of alcohol. They enjoy a good drink at home or out at a restaurant or bar. This orbit favors vodka, gin and whisky and typically indulges in 5-7 vodka drinks per month. This orbit is highly optimistic and steers clear of conformity.

You can catch the Social Drinker at an art festival or jamming out to their favorite band at a concert. These young adults have friends from all

walks of life and are not afraid to appear unconventional at times. The life of the party, the Social Drinker is often the group leader and makes

sure that everyone is having a good time.

MILLENNIAL SOCIAL DRINKERS SKYY VODKA AUDIENCE CROSSOVERS

The majority falls into the 25-34 years old range (28.8%)

Skyy’s audience is composed slightly more by males (52.2%)

People interested in Skyy Vodka is Married (41.2%)

Skyy’s audience is college educated (67.7%) and the half has a child (49.6%)

PASSIONS

Motors Sports

Parties Outdoor Activities

MALE

76%

25-34 YEARS OLD

84%

MARRIED

31%

COLLEGE

74.2%

WITH CHILDREN

47.5%

Millennial Social Drinkers: Sports

TOP TEAMS& ATHLETESTOP SPORTS

ADRENALINE JUNKIES117.4

( popularity index )

SPORTS ENTHUSIASTS119.4

( popularity index )

Travis Pastrana

Rob Dyrdek

Ronda Rousey

SKYY VODKA AUDIENCE CROSSOVERS

They don’t have an approach to sports that qualifies them as “Adrenaline

Junkies” (P: 31.8)

Skyy Vodka’s audience is not particularly interested in Sports

(P: 100.6)

American Football has a positive relevance score (R 102.7). Hockey (R

77.1) and Baseball (R 82.6) don’t catch the audience’s attention.

Ronda Rousey (R 66.5), Rob Dyrdek (89.9) and Travis Pastrana (64.2) aren’t relevant

athletes.

Millennial Social Drinkers: Motors

TOP SOURCESTOP BRANDS

C10-Trucks.com

TheRichest.com

Crawl

CAR EXPERT132.0

( popularity index )

MOTOR LOVERS142.0

( popularity index )

SKYY VODKA AUDIENCE CROSSOVERS

They are Car Experts too. But Motorcycles result more popular (P 167.0)

Motors (P 160.6) are a popular topic among individuals interested in Skyy

Vodka

Abarth (R 129.4), Opel (R 122.0) and Volvo (R 147.4) are relevant brands.

TheRichest.com (R 107.9) has positive relevance index. While Crawl Magazine (R 77.9) and C10-Trucks.com (R 68.3) gather

low interest.

SPORTS ENTHUSIASTS139.6

( popularity index )

Millennial Social Drinkers: Outdoor

TOP OUTDOOR ACTIVITIES

118

111

104

9892

107 115 124 133 143

RELE

VAN

CE

HUNTING

FISHING

BONFIRES

POPULARITY

SURFING

CAMPING

SHOOTING

SKYY VODKA AUDIENCE CROSSOVERS

Skyy’s audience is interested in Shooting as recreational activity

(R 128.1)

Skyy Audience can’t be described as Outdoor Enthusiast (P 58.8)

Fishing records positive relevance index (105.1)

Bonfires (R 96.8), Hunting (R 92.7) and especially Surfing (R 57.5) result as

unpopular outdoor activities

Millennial Social Drinkers: Parties

TOP FESTIVALSTOP LIQUORS

PARTY GOERS175.4

( popularity index )

SKYY VODKA AUDIENCE CROSSOVERS

Jack Daniel’s (R 161.0), Jagermeister (R 160.1) and Captain Morgan (R 160.0) are

relevant brands.

Parties play a major role among Skyy’s individuals (P 176.1)

BottleRock Napa (R 116.9) is an interesting event for Skyy’s audience.

Live Nation St. Louis (R 40.1) and the American Craft Beer week (R 75.9)

underperform

50%

MILLENNIAL SOCIAL DRINKERS

SKYY VODKAMillennial Social Drinkers Adherence

SKYY Vodka’s audience share the 50% of Millennial

Social Drinkers’ top passions and

interests.

CONSUMER INSIGHTS SUITE

Discover the SKYY Vodka consumer

TRY NOW FOR FREE >

on Cubeyou Consumer Insights Suite