Tapping TV for Spirited POP

How do spirits come to life? Just watch a bartender mix a Blue Masseuse cocktail on the BEVision network and the appeal of this POP vehicle is as clear as super-premium vodka. This vivid POP programming devoted to various alcoholic beverages is concocted by Fort Lauderdale-based RMS Networks.

Now entering its second year of broadcast, BEVision airs entertainment programming and brand advertising for wine, spirits and beer. Programming includes tips on entertaining and reviews of drink destinations such as Bourbon Street in New Orleans. Sent via server and satellite to participating stores, BEVision delivers in-store video advertising, tapping into the $110 billion liquor retail market. Nearly a dozen advertisers, including Allied Domecq, Bacardi and Whaler's Rum, now reach hundreds of retailers that subscribe to BEVision.

Competitive pressures faced by licensed beverage retailers are as potent as grain alcohol. The National Association of Beverage Retailers estimates that there are between 7,000 and 10,000 independent or family-owned liquor stores in the United States. These retailers face myriad regulations that vary from state to state, making it difficult to create strong national chains. Compounding those difficulties is increased competition from supermarket and c-store chains, which particularly challenges smaller liquor stores.

Liza Zimmerman, managing editor of Market Watch, a trade publication covering wine, spirits and beer, describes it as a "very price-driven market" with "razor-thin" margins.

"Independent package stores are facing greater pressure from chains and supermarkets," she says. "For example, some large supermarket chains now sell beer at or below cost, which makes it very difficult for independents to compete on price alone. So better customer service and a more knowledgeable sales staff are two of the most important competitive advantages for smaller licensed beverage retailers."

Little wonder, then, that BEVision emphasizes educational programming for both retail customers and employees. Says Sam Ambrose, vice president of marketing for RMS Networks, "We offer content that conveys both the message of responsible retailing and education about the product categories."

RMS Networks works with mass merchants such as JCPenney, as well as specialty retailers such as Advance Auto Parts and The Sports Authority, and specialty categories such as pharmacy/ healthcare and beer/wine/liquor.

Mixing the POP Cocktail

BEVision adopts a TV-network format, airing segments from 30 seconds to three minutes in length. Categories include:

• On Tap — beer and brewing

• Pour It On — drink recipes and

mixologists

• Behind the Label — definitions and terms

• Enthusiast — how to pair drinks

with specialties, such as wine with

cigars

Some content is created in-house at RMS, allowing beverage marketers to design programming that drives consumers to a specific in-store display or coupon, enhancing that static POP with sound and motion. BEVision obtains additional programming from suppliers such as CNN, E! Entertainment, Cambium Distributing and Fox.

As technology for digital network broadcasting and streaming media improves, so does the level of sophistication for delivering more refined and targeted in-store programming and advertising. Thanks to retail server identification by Internet provider (IP) address, RMS Networks may customize delivery of programming to individual stores. This is crucial to advertising campaigns because legal distribution varies by beverage alcohol proof (percentage of alcohol content) and category. With the controlled broadcasts, retailers receive advertisements only for brands legally obtainable in their states.

The ability to deliver content to video monitors at a specific location — using the store's computer server IP address — was a significant factor for one BEVision client. Bob Reider, president of Bishop Wine & Spirits, a wholesaler and importer in California, explains, "When we launched our new brand, Whaler's Rum, we wanted to target certain states. BEVision was able to accomplish this targeted delivery." Reider estimates the company spent about $25,000 to film the Whaler's Rum segments and air them on BEVision for three months.

Best of all, the in-store television network allows stores to bypass common problems with warehousing and distributing traditional POP. "So much of the paper POP produced for the beverage industry never gets used because the laws vary so much from state to state," says Reider. "With the controlled broadcasts...we know our message goes right into the store to customers."

A Potent Sales Tool

Last year, the ABC Fine Wine & Spirits chain installed BEVision at 150 stores throughout the state of Florida. ABC is no newcomer to POP or to marketing. The 60-year-old privately held chain uses a wide variety of supplied displays and frequently places print ads. ABC's new concept stores range from 10,000 to 12,000 square feet and feature walk-in cigar humidors, personal wine storage for collectors, temperature-controlled wine display areas, gourmet foods and custom gift baskets.

At ABC stores, monitors hang from the ceiling in the main sales area. "We try to keep them in the middle of the store so that customers will hear the programs as they shop, hoping it will affect their buying decisions," explains Andy Abernathy, senior vice president, ABC Fine Wine & Spirits.

It is at the register that employees take over, administering customer service armed with information about the beverage industry. That's where BEVision is also useful, Abernathy says. "We use BEVision as an in-store selling resource for our employees, and it's a valuable tool," he says. "Employees say that they learn more about beverages just by listening to the programming."

Another retailer, who adds BEVision programming when he opens new stores, agrees the training aspects of the network can increase sales — as does simply exposing customers to the programming. Bud Layton has installed BEVision in six of his Feldman's Valleywide stores in central Texas and plans to introduce the programming in two new stores before the holidays. "For us, it's like having another employee on the sales floor," he says. "We've gotten great customer response. People listen to the program and...[then] they're buying a bottle. It's a big plus."

That's a recommendation that RMS Networks can toast to.