Mar 2010 Financial News

Bitters bounces back

Mar 17, 2010

In a bid to further penetrate the United States market, Laventille producer Angostura Ltd has teamed up with US distributors and condiments manufacturer Mizkan Americas Inc.

While the company won’t be re-branding or changing its marketing plan, it will be introducing a new product to the US market.

After months of having to deal with unhappy consumers who had troubled finding Angostura Bitters at bars and restaurants, company representatives said the company was now producing and bottling enough of the additive to meet the demands of users.

’A lot of the shortage came from not being able to get the bottles,’ says Angostura’s communications manager Giselle Laronde-West.

She will not disclose how Angostura sources its bottles for fear of competitors tapping into the company’s strategies, she maintains the company has a steady supply of bottles for Bitters.


Angostura Bitters moves along the production line. -Photo: Curtis Chase

’We feel confident we will not have any out of stock this year,’ says Genevieve Jodhan, executive manager of Logistics and Supply Chain at Angostura.

Buyers in the US will get their first taste of Angostura Orange Bitters this year.

Angostura’s team could not say when the first shipment would reach US shores but Laronde-West said a team was working on it.

During a recent interview at Angostura’s head office along the Eastern Main Road, she admitted that though the company sells an estimated 750,000 bottles of Bitters in the US each year, there was no orchestrated effort to boost the presence of the product in the US until they began working with Mizkan in January.

The partnership began just two months ago when Mizkan Americas acquired World Harbors Sauces and Marinades.

A Mizkan statement in January explained that along with the acquisition came the exclusive Angostura distribution agreement, where Mizkan would shop the product to supermarkets and even liquor marts.

While Laronde-West says Bitters is well known in the US market, Dave Rotunno, Mizkan’s executive director of marketing, says he is confident the new partnership can increase the number of bottles of Bitters bought in the US each year.

When asked about their interest in Angostura Bitters as a product, Michael Smith, Mizkan Americas’ senior vice president said: ’Bitters is a very flavourful additive which we thought would be a good addition to our brand.’

The Mizkan representatives said the company had a strong sales force and their expertise with US consumer markets and tastes would help Bitters make bigger waves in a US market.

Smith said that US consumers, despite the recent downturn in the economy, were willing to spend some of their disposable income on flavourful foods and additives.

Researchers have recently called this the ’Lipstick Effect’ where consumers in a depressed economy, who cannot afford large purchases like vacations, houses and cars, instead splurge on small, but non-essential buys, like make-up, premium alcohol and gourmet food.

This helps them keep self-satisfaction up, and exercise their purchasing power, without forcing them to live beyond their means.

Rotunno also explained that with additives, like Bitters, the consumer who wanted to save a few dollars had the option to buy a lower grade cut of meat, but still work it into their family’s menu in a very succulent, tasteful way by using additives which will layer the flavour and add different dimensions to a regular meal.

At a time when US consumer reports and analysts say more Americans are eating in, Angostura’s attempt to make bigger strides in the US food and beverages sector may be a smart move.

Mizkan which supplies an array of food additives, including Buccaneer Blend Bar B Que sauces and Holland House cooking wine, says it will be embarking on a range of nationwide promotional tours in the US with Angostura Bitters on hand.

The company also has operations in Canada.

Rotunno said he was sure they could further spread Bitters which is being sold as a far away as India and Australia, throughout both North and South America.

Research shows that in Europe Bitters is mainly used as an additive in alcoholic cocktails.

’Bitters on the liquor channel, that is what we (American consumers) don’t have a lot in today. That’s where we think there is tremendous opportunity,’ said Rotunno.

Smith explained that there was a strong consumer demand for the locally produced flavour enhancer in several US areas like Wisconsin, Minnesota and Michigan.

Smith said in these areas there was a local culture that enjoyed a number of cocktails which require Bitters as a main component.

’But it sells in all 50 states,’ he reiterated.

A four-ounce bottle of Bitters currently sells for an average of US$6.99 in North America.


Source:
Aretha Welch
Trinidad Express
Wednesday, March 17th 2010

http://www.trinidadexpress.com/index.pl/nart?id=161609365