Tracing the Connection Between The Beats and The Bottles

Despite rappers’ affinity for glorifying alcohol use, experts are divided over whether this translates into dollars.  Executives at W.J. Deutsch & Sons, which distributes Landy Cognac, reported that having Snoop Dogg’s paid endorsement from 2007 to 2009 resulted in dividends, in part because he was the right man for the job.  “We position Landy as a great quality but at an accessible price.  We’re not trying to be the biggest cognac out there.  That’s his M. O. as well.  He’s about being himself, and he’s unapologetic about it,” said Eric Maldonado, a director of brand marketing. “[The deal] did affect sales and exposure of our brand.”

Stefan Kalogridis, owner of Colvin Wine Merchants in Albany, N.Y., credits radio with putting some brands on the map.  “I remember Hennessy being in songs and videos.  It’s always been the No. 1 cognac, but after the marketing in other avenues, it became more so.  Now you have Diddy behind Ciroc, which wasn’t that well known when it came out.  But when Diddy got behind it sales picked up,” he said.  “Cristal became popular because of the rap industry.  It became so popular that we couldn’t even get it in the store.  And the price was sky high.”

For Jai Jai Greenfield, co-owner of Harlem Vintage in New York, N.Y., the hoopla surrounding these artists doesn’t add up to much.  “People love [“Blame It”] because it has a great beat, but it doesn’t influence what people are buying,” she said.  “People will come in asking for ‘Diddy’s brand’ because they identify it with him, but they don’t walk out because we don’t have it.”  More than an association with a high-profile lifestyle, Greenfield said this year consumers are concerned with price.  She’s noticed that people are willing to switch to brands that are easier on the wallet.

Whether or not someone is willing to consider a new brand may not only be a matter of expense, but the strength of their preference.  In a 2009 survey conducted by market research firm Mintel, African-American consumers showed a higher preference for premium cognac, tequila, Canadian whisky and vodka, when compared to imbibers of other races.

For Maldonado the ease with which a company can convert drinkers to a new brand generally depends on the category of alcohol.  “People who drink [single malt] typically want to know the ins and outs of how it’s made and why it tastes this way.  They probably spend a lot more time learning and discerning that category so that they tend to know what it is they like to drink,” he said, contrasting it with consumers’ promiscuity when it comes to vodka brands. “Vodka is more about mixing, where you can argue that you lose a little more of that flavor.  It’s not a product that takes a long time to make or that spends a long time aging.  It’s not really a complicated process.”

Brand loyalty is one reason alcohol labels are willing to pull out the big guns in the form of celebrity endorsements.  But none of them want to end up with a Tiger Woods-size scandal after signing an artist. Though no one would have predicted the public relations nightmare that Woods caused, a similar controversy surrounding a rapper is easier to envision, making them a risky choice for some.

Maldonado brushes off these concerns: “In anything you do there can be certain risks.  When choosing a spokesperson, we’re focused more on finding a fit with our brand.”

Jamison stated that the risk can be part of the appeal.  “People expect an element of danger with hip-hop artists, and I think the companies are seeing that as long as they don’t worry too much about what’s being said or the context of where their product is showing up, they can reap a lot of benefits from it,” he said.

For its part, Grey Goose says it is careful to work with artists who share its commitment to “responsible decision making.”  The company doesn’t have a specific spokesperson but has collaborated with Wyclef Jean, Kid Cudi and The Dream.  It also aligns itself with the industry through programs like “Rising Icons,” a BET show that honors new artists.

When it comes to name drops, Patron is happy to be on the receiving end, though Matt Carroll, the company’s chief marketing officer, stopped short of saying any exposure is good exposure.  “Unsolicited and unpaid word of mouth is always a powerful way to build a successful brand, and that’s certainly been happening with Patron,” he said.  “We’re always very appreciative when musicians mention us, in a proper light, in their lyrics.”

Carroll’s “in a proper light” caveat reflects the industry’s awareness that just

as musicians can help build a brand’s reputation, they also have the power to tarnish it.  This was illustrated in 2006 when Cristal and hip-hop had a very public break up.  The champagne, which had become shorthand for the good life after numerous mentions in songs, ran into controversy when a Cristal executive said the name drops were “unwelcome.”  The response was swift.

Jay-Z called for a boycott, saying the remarks were racist. Though Greenfield only carried Cristal for a short period, she recalls the incident. “I did notice somewhat of a backlash after Jay-Z renounced it,” she said, adding that even the controversy was great advertising for Cristal.  Greenfield wonders why any artist would publicize a brand they have no stake in. “I don’t fault Puffy. At least he’s doing it the right way [by partnering with Ciroc]. He’s saying, ‘let’s put a brand around it, let’s market it and let me get paid for it.’”

Increasingly other rappers are of the same mindset.  Not only are they getting paid for promoting established brands, they’re branching out with their own labels.  Dr. Dre partnered with Aftermath Cognac.  Jay-Z  owned a stake in Armadale Vodka.   Lil Jon has Little Jonathan Winery.  Ultimately, Jamison said, these deals show that today’s rappers are businessmen first.  “The name of the game in hip-hop is starting on the streets hustling and making good,” he said. “And that’s what a lot of these folks are doing but in a different way.”