Liquor companies and rappers have had a long standing relationship from “Pass the Couvasier” to “Gin and Juice” to recent deals like Diddy and Ciroc or Dr. Dre and Drinks America (Check our Rappers x Liquor Company profiles for more details). One of the most recent partnerships is between Swizz Beatz and Hennessey’s new label Hennessey Black…but could the liquor and hip-hop party be over?
Moet Hennessy, parent company of the Champagne, cognac and other major spirits recently posted their first quarter 2009 results and they are not pretty. According to the statements, Moet Hennessy Champagne sales were down 35% and other premium liquor sales down as much as 25% due to the struggling economy.
With profits down, many marketers suggest cutting back on expensive marketing and promotions as the first line of defense. Will this mean the end to those extensive hip-hop artist branded liquor company websites, online shorts, exclusive concerts and multi-million dollar endorsement deals? Or do liquor companies need hip-hop support in order to survive? In the end it’s the consumer that decides…unless Diddy brainwashes us all.
I do not think they are dead – there might be less big budget deals like Diddy and Ciroc but I think alcohol companies need the lifestyle and cool element that hiphop brings directly to the clubs. No other music influences the clubs like hiphop so you will always see that connection no matter how bad the economy gets. Hopefully the worst is behind us though.
Diddy is making bank off Ciroc. I dont know their ROI though but yea its all about lifestyle and getting the name in teh clubs – no one delivers that like HIPHOP
honestly I'm getting tired of liquor companies using hip hop to promote their product, i understand why they do it, black consumers have the biggest spending power,
if they want to see an increase in sales, all they really have to do is,
have parties and give out FREE drinks maybe it will increase brand awareness or something
but its a recession, no one in the clubs is spending $200 for a bottle that i can get at the liquor store for $30,
and people are mostly using their disposable income on other things, like trying to get themselves out of debt,
maybe they need to drop the price of liquor that could help
i got a marketing/advertising idea for a liquor company WOOOHA if you got some connects put me on! lol
Its pure exploitation that the hiphop culture just sucks up and its a circular story that goes round and round. If hiphop and its artists took a stand for the values rather than just getting paid we wouldnt see so many stuntin spending thousands on bottles they cant afford.
I worked for Hennessey awhile back and they are very sophisticated but have an entire marketing depnt geared towards urban lifestyle. Its part of the culture so it will never go away no matter how bad profits are
Naw it ain't going nowhere. All industries are cutting back on advertising but it won't stop.
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