Columba Cream rises to the top.

Last September I did a short blurb about Columba Cream based on a story by Will Lyons in Scotland on Sunday called Columba Cream Plan Hits The Rocks.

That short blurb was followed up by an email from Jamie Morrison and resulted in a Christmas story called Columba Cream Responds. The story detailed a lively back and forth and resulted in an even more lively string of responses.

This past week Jamie was eager to let me know that there was great news for the Scottish Liqueur Centre; namely that Columba has been faring very well with shoppers at Waitrose (a UK-based grocery chain) and has been picked up at all 186 Waitrose locations.

According to the Waitrose press release:

First launched in Waitrose’s two Scottish stores last year, Columba Cream has proved so popular with customers that the supermarket will sell it nationally.

Last Christmas the single malt cream and honey liqueur quickly became the top selling spirit in Waitrose’s Edinburgh branches.

Now thanks to the exclusive deal with Waitrose, the small independent company that makes the drink - The Scottish Liqueur Centre - it is expecting to double its turnover to £1million by the end of this year.

Jamie also wanted me to know that Columba Cream was the biggest selling spirit (yes - outselling all other spirits, not just liqueurs) at the Waitrose stores during the 2006 Christmas holiday.

What's more remarkable is that this was accomplished without resorting to the standard UK practice of deep discounting.

Jamie says:

We did not discount a penny on our premium pricing of £14.99 per 70cl bottle. This price point had us at a premium to Baileys ltrs, Famous Grouse ltrs, Gordon's ltrs and Bombay Saphire ltrs.

We believe, despite your comments of last year, that Columba Cream is a viable entity. The Waitrose listing backs this up, as does a near trebling of Columba Cream volume domestically in the UK in the last 12 months with little A&P spend.

Jamie also subtly pointed out that I failed to follow up on a later story (February 2007), also by Will Lyons, that told of Columba's success in displacing Bailey's at Waitrose. I can honestly say that I did not see that story.

I STILL stand behind my original comments, which I don't think were as incendiary as perceived down at the SLC offices:

I think the branding is a little too Scots-centric for what aspires to be a multi-national brand.

I also doubt that ANYONE has the financial resources to go head-to head against Diageo in the whisky-based cream liqueur market, and let's be honest, how many people would be able to discern between the Irish and Scotch whiskies which are the base ingredients of these two drinks?

FREE CONSULTING ALERT #2: Focus on marketing the Solas line of fruit-based liqueurs. The fruit approach to whisky liqueurs, as well as the attractive packaging makes THIS the product to market. Mark my words.

That being said - I am truly glad to see Columba Cream making significant inroads in the UK market. Columba Cream has some keen differentiators from Bailey's:

• It's based on a 200-year old family recipe
• It's a truly Scottish product - the first batch of Columba Cream, was made 25 years ago in handed down to John Bartholemew's  kitchen on Mull. (John is still a shareholder in the business).
• The drink uses ingredients that are entirely locally sourced from independent businesses in the area: single malt whisky from Tullibardine Distillery, cream from Graham’s Dairies in Bridge of Allan and Blossom Honey from Scarlett’s, third generation beekeepers in Meigle.
• And it does really taste good. (I have had some say that it tastes "thick" - and compared to Bailey's it does have quite a different consistency).

Will Columba Cream be able to make it in the world market? SLC is about to see - as US distribution starts in the new year.

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I thought Ian Buxton's comment was so good, I moved it up here as part of the story...

I think you're both right!  Columba Cream did have some (quite severe) problems that Will Lyons wrote about and naturally they didn't want the bad news to spread too far.
But my understanding is that they have since put all this well behind them and, with deals like the Waitrose listing (this is a BIG deal for the UK by the way), are in a very upbeat mood.  And with good reason.

I was with the company's MD recently and, without wanting to say too much about this, I think the confidence is well founded.  They have a very experienced team and, far from taking on Diageo head-to-head (you're totally right about that) my guess us that they will be happy to sneak just 1 or 2% of that cream liqueur market.  It's HUGE in actual fact - puts the single malt whisky market to shame!

You're not wrong about the Solas fruit liqueurs either, they are lovely products, but I guess cream liqueur is where the money is to be found.

I tell you this.  If I had any money (which I don't) and they were accepting new investors (which they aren't) I would be happy to invest it with them.

I think they have a great future and if that's come after a few hard knocks they will appreciate and enjoy it all the more!

Comments

[Ian Buxton]

I think you're both right! Columba Cream did have some (quite severe) problems that Will Lyons wrote about and naturally they didn't want the bad news to spread too far.
But my understanding is that they have since put all this well behind them and, with deals like the Waitrose listing (this is a BIG deal for the UK by the way), are in a very upbeat mood. And with good reason.

I was with the company's MD recently and, without wanting to say too much about this, I think the confidence is well founded. They have a very experienced team and, far from taking on Diageo head-to-head (you're totally right about that) my guess us that they will be happy to sneak just 1 or 2% of that cream liqueur market. It's HUGE in actual fact - puts the single malt whisky market to shame!

You're not wrong about the Solas fruit liqueurs either, they are lovely products, but I guess cream liqueur is where the money is to be found.

I tell you this. If I had any money (which I don't) and they were accepting new investors (which they aren't) I would be happy to invest it with them.

I think they have a great future and if that's come after a few hard knocks they will appreciate and enjoy it all the more!