The Spirits of Summer by Pernod Ricard UK by prukbeat

THE SPIRITS OF SUMMER Recover & Rebuild in the On-Trade

INTRODUCTION Welcome to our guide – The Spirits of Summer.

As I write this, we are excitedly preparing for the On-Trade to reopen, and I’m sure that you are doing the same. We wanted to wrap up some of the things we have learnt over the last year to help you navigate this process and offer advice on how to get you back up and running quickly, safely and profitably. In this guide we will be looking at the some of the consumer insight we have produced to inform decision making, as well as touching on some of the category dynamics which have revealed themselves through Off-Trade sales and trends. Once we have set the context here, it’s then time to look forward to how we recommend you bring this insight to life. This guide covers a variety of topics, from what to consider when reopening to how to stay safe and what to serve in your outlet. We have aimed to provide advice that supports a diverse range of OnTrade outlets. We feel strongly about the opportunity for spirits to inspire and engage consumers as they return. We have seen consumer expectations grow through the last few years and this has only accelerated in the last 12 months. High quality, tasty and well made drinks are of increasing importance and we want to support outlets take advantage of this opportunity. We know that menus are the starting point for many people when they arrive. So we have included a section on how needs have evolved and how you can use social media to get people into your venue and then nudge them towards your key serves. Finally, we have a few examples of how you can maximise outdoor opportunities when using our brands, and included training resources for your team. If you would like to reach us at Pernod Ricard UK to discuss opportunities, the first port of call should be your account manager. If you are unsure as to who this is, or have further questions, please contact thespiritsofsummer@pernod-ricard.com and we will direct you from here. See you back at the bar!

James Bremner On-Trade Channel Director

CONSUMER INSIGHT Consumers are desperate to get back into the trade 59% of consumers ‘can’t wait’ to go out again and 51% hope to get back into venues within a few weeks of reopening. Consumers are also itching to spend despite the turbulence. Lockdowns prevented around 22% of average weekly household spending, which means many households have built up significant savings.

Younger demographics led the recovery in July, both in terms of percentage returning to the trade, but also returning with the greatest frequency. Targeting 18-34-year-olds on reopening, will be absolutely key once again, however, the impact of vaccines is likely to give older demographics the confidence to return more quickly this time around. Typical occasions for On-Trade visits are likely to be lower energy than before, with the drinks offering needing to reflect this. Longer refreshing serves suited to relaxed environments will be key. ‘With food’ occasions will become more important to drive additional spend through Aperitif and Digestif type serves.

Pubs outperformed other outlet types in the first reopening, in part because of their ability to maximise capacity through use of outdoor space. Leverage all your outdoor space to maximise capacity and capture the outdoor spend.

ACTIONS •

Think about your menu – offer drinks suggestions for before, with and after food.

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Use all the outside space you can.

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Give people the opportunity to trade up to premium spirits and cocktails.

How to leverage this opportunity and maximise spend per head. With restrictions to capacity likely to continue, and consumer spending appearing robust, maximising spend per head is more important than ever. Consumers are keen to treat themselves to everyday luxuries, which will only increase with the release from a third lockdown. Spirits command a significantly higher spend per head than beer or wine, even before you add the price of a mixer, with premium spirit brands commanding an even higher average spend per serve. Cocktails are even more value rich – the average cocktail drinker is prepared to pay £8.58 for a cocktail. Cocktail drinkers are the most frequent visitors and highest spenders in the On-Trade.

CATEGORY DYNAMICS

What will boom when the On-Trade reopens? High Demand for Cocktails As the nation tired of sour dough and banana bread, we turned our attention to mastering cocktails-at-home with average monthly internet searches for cocktails up 75% in 2020 vs 2019. In December, 44% of 18–34-year-olds made cocktails-at-home, 8% more than last year. We expect a heightened interest and appreciation for cocktails when the On-Trade reopens, particularly ones harder to master at home like Espresso Martinis and Passion Star Martinis.

Flavours are in Favour Throughout 2020, consumers turned to the Off-Trade to quench their thirst, with Off-Trade sales seamlessly replacing On-Trade spirits volume. Much like the On-Trade, flavoured spirit categories were the standout performers in the Off-Trade:

+61%

+49%

+35% 1

Flavoured Vodka

Spiced Rum

Flavoured Gin

These are the categories set to boom when the On-Trade reopens. The key serves will be big on flavour and a mixture of the long refreshing serves suited to lower tempo, relaxed environments like Flavoured G&Ts, Spritzes and the epitome of summer, a Piña Colada. Equally, those hard to master at home serves will continue to be On-Trade favourites.

WHAT TO CONSIDER WHEN PREPARING TO REOPEN We know that the safety of your guests and staff is paramount. The first place to go for updates on government policy and rules for operators is the UK Hospitality page. Once you have tackled all the necessary safety considerations, we think there are five key areas you need to prioritise in your preparations to reopen for the summer. 1) Drinks 2)

Menus

Digital

4) Visibility tools 5) Outdoor Over the next few pages, we will take you through these.

DRINKS

What will be the serve of the summer? This is going to be the Summer of Spritz! The CGA Mixed Drinks Report 2021 puts the Spritz at number 8 in their Top 10 most frequently served cocktails list.* We have put together a deck with 14 different simple serves with ‘how to’ videos and our reasons to believe in this serve. Click HERE to access the deck or go to prukbeat.com/spritz

ACTIONS •

Think about big flavours and speed of serve.

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Digital – Inspire your customers with serve led communications – capture their imagination before visiting you – you want them to walk in thirsty!

THE PERFECT SERVES FOR NON-COCKTAIL VENUES. Consumers have become used to ordering and drinking cocktails in a wide variety of venues and occasions. If you are curious about serving cocktails in your venue for the first time, or increasing your range, have a look at our tips below:

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Simplicity – keep your offering short and easy to make. You can easily put together a shortlist of popular cocktails with same measures – for example, an espresso menu where you keep all measures to 25ml, but switch the base spirit and add a modifier but keep all measures to 25ml. Have a look here for an example of the classic recipe – click here.

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Gintonica – everyone is familiar with Gin & Tonics – but how can we make this a spritz easily with a few well chosen ingredients. Click HERE to access a deck of easy to make drinks.

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Garnish / Vessel – use big, fresh garnishes where possible to make the drink feel like a treat. Equally, getting the right glass with plenty of ice goes a long way to making each drink perfect.

Want some more drinks ideas? Visit our video page on our website – www.prukbeat.com

MENUS The goal here in the short-term is to simplify and streamline your offering so that you can serve drinks quickly, safely, and with the minimum of touch points.

Let’s start with the menu When customers arrive in your venue, they will not be keen to spend a long time reading through a conventional menu. You have a few options here but first, think about shortening down your offer. Have a look at your sales mix from before you went into lockdown and pick the top selling drinks, and then add a few seasonal specials.

Think about different moments throughout a meal As mentioned already, consumers will be keen to make the most of their time out, so give them compelling options at every stage of their meal. A specific menu for aperitifs and pre-dinner is always a winner – big, fresh, light flavours and Instagram-worthy garnishes.

MENUS We can help you build your full menu, as well as specials menus, with a variety of design templates and sizes. We can also develop social media posts that match the design of your menu. These menus can be printed or can exist online and be accessed by a QR code. This QR code can lead to a landing page that lists all your menus, links to your website and social channels, and can be fully branded.

Speak to your Pernod Ricard UK sales contact about producing assets for you using our special ‘Menu Design Tool’.

DIGITAL In the U.K. we spend just under two hours per day using our phones to access social media, but COVID-19 has seen a…

47% increase in social media use* Digital communications will be even more essential in this ‘new normal’. To ensure your business stays on top of this, here is a checklist of things to do before you reopen.

SOCIAL MEDIA CHECK LIST 1

Upload your menu to your website and share images of your menu across your social channels.

Ensure Google Business reflects opening hours.

Ensure Facebook has updated opening hours.

Make sure all your social pages link to your website.

Create content about how you are reopening and new ways of working to give guests confidence.

Repost UGC (user generated content from your guests) showing that people are enjoying being back in your venue.

OUTDOOR SPACE As we mentioned earlier, if you have outdoor space at your venue, this will be a massive asset this year. To help you make the most of it, we have various outdoor POS Kits containing parasols, café barriers, deck chairs, bean bags, paper cups and glassware (contents and quantity vary by brand). We also have branded glassware across our portfolio, supported with outdoor Lillet glasses, Malibu coconut cups, and paper cups across portfolio. If you are close to a park or green space, consider the take-away opportunity (being sure to consider local licensing restrictions) for food and drinks. We can help here with paper cups, Jameson-branded pizza and burger boxes and also cup carriers. Talk to your Pernod Ricard UK account manager for more info or if you are not sure who this is, please email thespiritsofsummer@pernod-ricard.com and we will direct your enquiry to the most appropriate person.

TRAINING TOOLS Some of your staff may have had a long period on furlough, so it’s a good idea to reach out them early and start to include them in training programmes and drinks resources to help smooth their return to the bar. We have made a list of a few of our favourite resources below;

The Bar World of Tomorrow Pernod Ricard, TrashTiki and the Sustainable Restaurant Association have created The Bar World of Tomorrow, a micro-training course for bar professionals focusing on reducing waste, better products and responsible drinking. The modules are based on four pillars (ingredients, service, bar and staff), helping to rebuild for a greener, more responsible and inclusive tomorrow. Sign up to this amazing free course here. PRUKBEAT website Click here to have a look at the articles, drinks recipes and brand info from the BEAT team.

BARSMARTS If you are keen to do some online category and product learning with Pernod Ricard, please have a look at BarSmarts, a spirits and bartender education program.

To register in the UK please complete the following steps: • Go to WWW.BARSMARTS.COM • Click on “Sign In”

• Choose the program being registered for (BarStarts or BarSmarts) • Enter the requested information • If registering for BarStarts, enter promo code UKBARSTARTS on the Checkout screen • If registering for BarSmarts, enter promo code UKBARSMARTS on the Checkout screen • No credit card info is needed to register for either program • Each module is made up of several chapters consisting of reading and video content, and a test of 25 questions that you have two attempts to pass. Once they’ve all been passed, you’ll be able to access the DrinkBuilder final exam, in which you must make seven classic cocktails selected from your previous reading.

BARSMARTS Once you’ve passed BarSmarts, you’ll be sent a digital certificate and you can progress onto BarSmarts Advanced if you wish. On the other hand, if BarSmarts is too advanced, you can always start with the beginner BarStarts program.

SMALL BATCH LEARNING & HEALTHY HOSPO Small Batch Learning recently teamed up with wellness platform Healthy Hospo to create a course featuring physical and mental health training that could be particularly useful during this tough time. Find out more here.

WHAT NEXT? We hope you have found this guide useful – it’s a fast-moving situation, and this reflects our best hypothesis of how to succeed in the new normal, but the truth is that no-one really knows the definitive answer on how things are going to pan out. The best we can do is to harness the skills and mindset that makes this industry so fantastic to work in. Stay positive, agile and ready to adapt as the hospitality scene evolves. If you’d like to speak to someone at Pernod Ricard UK about working with us in your venues, speak to your account manager or, please contact thespiritsofsummer@pernod-ricard.com and we will direct your enquiry to the most appropriate person. Thank you for reading!

Thanks to the Pernod Ricard UK team who contributed to this guide. Tom Bouch for category and consumer insight, James Bremner, Louise Russell and Miren Somers for supplying material, Lottie Sylvester for her eagle eyes on copy and Daniel I’Anson for editing and original concept.

Instagram: @prukbeat/ 21