The founder of one of the largest independent, woman-owned craft distilleries in the United States has some advice for maintaining on-premise sales momentum through summer, and it all comes down to having fun, building local partnerships and encouraging wonder and delight.
As founder and president of KOVAL Distillery in Chicago, Dr. Sonat Birnecker Hart brings a unique perspective to what’s happening in the on-premise industry. KOVAL creates whiskey, gin and specialty spirits using unique organic grains, signature “heart cut” techniques and only premium quality distillate. The company’s creativity and design has earned more than 100 international awards.
One way KOVAL Distillery cultivates relationships with the on-premise beverage market is through collaboration. Dr. Birnecker Hart gets says she gets excited by the crossover opportunities with on-premise venues and suppliers, particularly when it involves local suppliers and independent brands.
How to Keep On-Premise Summer Momentum: Wonder and Delight
Dr. Birnecker Hart has seen mutual successes this summer from strategies and activations based on local partnerships and creative fun. As on-premise owners and operators look for ways to push through the summer and keep up the positive momentum, she recommends being unique and creative with interesting beverage offerings. “Wonder and delight are really what it's all about,” she says.
“It's a mix of what works for the bottom line that protects the business, but also that makes one's business interesting and exciting to visit, because ultimately, that's what keeps people coming back,” says Dr. Birnecker Hart.
She notes that KOVAL and other independent U.S. brands have something unique and different to offer, and at the same time, people are looking for deals in this economy. “They're looking for things that are going to brighten their lives and make them more exciting and interesting. And if it's always the same old thing, that doesn't always resonate,” she explains.
Host Informational Cocktail Hours with a Mix of Small Brands
Nurturing relationships with smaller brands helps on-premise businesses create profitable, repeatable wonder and delight, according to Dr. Birnecker Hart. KOVAL, for example, has participated in special, informational cocktail hours that bring in customers to an on-premise venue. Someone from the distillery talks about the brand and its differentiators, and “People get excited about it, because it's always nice to learn more about something unique and special, especially in a pleasant environment.”
The local brewer, distiller or other supplier can also create different opportunities for people to visit the venue to learn more, maybe adding informational programming and involving members of the distillery team. “There are all kinds of things to do that aren’t intimidating, but truly great informational activities, where people give time and energy to the venue, which I think is fun,” explains Dr. Birnecker Hart.
The local distiller can also help create cocktails that are of good value, but also very high end. “Figuring out different ways of putting things together is really a kind of alchemy, and there's magic in finding something that works for everyone,” she says. “It's not just about the bottom line; it's making sure that that bottom line looks good on a number of levels. On-premise venues can support local smaller brands, have fun doing so, and find it to be a really good value.”
Local Brands in Unique Position
As leader of a small, independent distiller, Dr. Birnecker Hart understands what local brands are up against in building relationships with local venues. “We’re limited to getting placements and must work with the on-premise based on merit.”
On-premise businesses sometimes get support from suppliers through the marketing companies hired to encourage venues to use that particular brand. “The comfort brands continue to do well, and I'm sure that the on-premise market is tapped into those opportunities, but there's a lot to be gained by working with local brands wherever one is in the country, and supporting local economies.”
Support Local, Support the Community
This successful distiller believes in the bigger value of supporting community businesses. “Local businesses also support the local economy, and we're in very uncertain times. Figuring out ways to support local companies that employ people locally and that train new people in this industry – it's a value to the community at large. This is everybody working together,” declares Dr. Birnecker Hart.
“Those are the kinds of things that we try to do because we're not in a position to play the game that the big boys do," she says. "We don't usually have the kinds of budgets that would allow for that kind of activation.”
On-Premise Venues Finding More Business Outside
Dr. Birnecker Hart notes the warmer summer weather has been fantastic for on-premise businesses right now, with people coming out of the woodwork. “Customers feel we're a little bit more out of the pandemic than we certainly were in the past,” she notes. “And they feel more confident going out, which is great. It varies depending on locations, and some places were hit harder than others.”
“I've heard from a lot of on-premise partners who’ve been experiencing great business, particularly now that we've hit summertime,” she says. “I think those with outdoor patios are better able to expand their capacity in some way.”
Dr. Birnecker Hart says that some communities have embraced expansion of capacity, and on-premise businesses are getting more permits for sidewalk cafes and other opportunities to put people in more places. For example, on-premise venues with spaces like parking lots can use that for seating to make up for loss of business. She says they've seen real benefit in those types of programs in states that have allowed them.
Some States Support the Added Revenue Stream
Another mid-summer observation about revenue streams: Cocktails-to-go have been a great benefit for a lot of on-premise venues. Guests enjoy the meal they really want, then bring their favorite house drink home. “That's a new situation that's come out of the pandemic,” says Dr. Birnecker Hart. “It's been a real positive for a number of on-premise locations in various states.”
In hopes this becomes a sustainable trend, some states made this service permanent post-pandemic. “States that made cocktails-to-go permanent have allowed another revenue stream for these places,” says Dr. Birnecker Hart. “It's not uniform because it's not legal everywhere. Where it is legal and where it's getting made permanently legal, I think that the on-premise community is certainly celebrating.”
How to Succeed in the Celebration Business
Dr. Birnecker Hart is also intrigued by the different ways people run their businesses and what's important to them, because every on-premise venue is unique. “There are so many factors that I find incredibly interesting,” she says. “Being in hospitality is a very volatile thing. It's not an easy business, and everyone needs to find what works for them. But I feel at the end of the day, we're in this to run a celebration business.”
Her passion for the industry glows: “Figuring out ways for people to celebrate whenever they can, whatever their joys are, whatever their triumphs are, in times like these, it’s an exciting thing to be a part of.”
To learn more about KOVAL Distillery, visit Koval-Distillery.com.
Carro Ford is a successful marketer, researcher and writer/reporter based near Lexington, Ky. She's worked across numerous industries and is also the author of The Smartass Marketer's Handbook: A Guide to B2B Marketing with Attitude.
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