In luxury spirits category, what is in the bottle represents only one facet of the observed brand concept. Visible attributes such as the packaging and presentation of a bottle of whiskey, cognac, rum or tequila rank only a whisker below the contents of the bottle in terms of influence when consumers are making their decision to purchase a new bottle or assessing the value of stock in their bar or cellar. Top-of-the-line liquor brands spend a lot of money on the bottle and labels so that the customers who are always likely to buy these brands in order to display them rather than consume them.

The Rise of Premium Packaging

Consequent to this perception, the raise of income per capita in the global scale in the past decades has caused the launch of the spirits in super premium and the ultra-premium brands. More consumers have the disposable income readily willing to spend hundreds if not thousands of dollars for a petty aged and rare bottle to showcase as implements of elegance. Over time such luxury customers have grown to demand for luxurious, attractive and innovative packaging as a reflection of the premium price and rare product content in the spirits. 

In response to this ‘the high end spirit brands have upped the ante in as far as packaging is concerned through involving classy designers and artists to design beautiful shaped and decorated bottles that befit the lofty category. Most of them use crystals, metals, woods, leathers and others as glaring indications of the contents’ worth and exclusivity.  

For instance, there is Macallan Edition series where every year it is wrapped in an art work and costs $150+ per bottle and people still buy it because it is a one of a kind work of art and or unique piece in a box with whiskey in it. This shows very well how packaging in particular goes hand in hand with improved desirability and perceived value.

Driving Purchase Motivations

To the nouveau riche, premium drinks arrive well packaged as status symbols of taste, discernment and ability to afford them. It also turns into a decoration good, a decanter being put into homes, offices or private clubs to meet the expectations of the guests. Therefore, the quality of packaging has to be in line with the ego value that the owner gets out of owning the product. An exquisite drink packaged in a normal bottle will not increase positional credibility to the extent that a magnificent vial embellished will.

Of course, however, for the serious whiskey collector who is solely focused on liquid and who is looking to really invest into the whiskey; to a certain extent pouring that whiskey into a fine crystal decanter etched with elegant glass that appeals to the widest market is just so much better for the preservation of whiskey as a collectible and for its investment potential over long periods of time. It preserves its contents besides offering some measure of worth as part of the overall product. Thus, achieved liquid and packaging together form a desired and valued object.

When offering what is perceived as luxury spirits especially cognac, then packaging comes in handy. Such occasions like retiring, reaching the age of 40 or if there is a major achievement in the business, only a superior spirit presented in a box made from leather with hand painting and velvet or silk lining will be appropriate for such occasions. Even by checking the outer packing, the receiver clearly understands the significance of that special liquor inside it per se.  

Attracting New Customers

The spirits sector is highly fragmented, and there are frequent new entrants and incumbents introducing new brands while distillery groups continue to extend their portfolios, brands need to stand out in order to gain the attention of a new consumer. Every businessperson who operates in the ultra premium or prestige arena is aware that packaging enables one to declare, intrigue and extol straight away.

However, even for the craft, limited-production type of producers who do not need mass appeal, an attractive bottle gives those who still do not know the brand’s narrative and the quality of the product something to grab their attention. For instance, the rum from Venezuela called Santa Teresa 1796 costs $200+ for obvious reasons – it is the drink that has been matured for up to 35 years in oak barrels customary for the region. However for those not yet initiated, the distinct bottle shape, colour coded cork, attractive colour label and reflect the elegance of the liquor packaging box as an initial attraction for the buyers. The packaging then leads to additional examination.

Similarly, Tequila Ocho initially made test runs in offering indistinguishable Plata and Reposado products in straightforward and artisan Mexican clay containers at the same store. Although the liquid was the same, 70% more costly than the artisan, similar to significantly higher interest and purchase rates, mainly attributed to perceived value in the clay packaging. This powerfully illustrates the value of specialized high end packaging for attracting heavy spenders who are willing to pay more over the whole proposition.

Final Considerations

From the findings, luxury spirits brands reaping handsome returns from investing in multi-sensory packaging, which entices and communicates prestige to consumers, helps in differentiation of products, escalates sales and lifts the ratio for additional operating profit margin. Incorporating luxury materials and artistic work accompanied by excellent craft work and finishing provide significant benefits at improved price points and deep liquid quality within. Secondary place appeal encourages collection and first time purchase while gift packaging build brand images and perceptions. This is especially so given that the high end spirits market is growing steadily around the world; known to be placed paramount importance of making the bottles and labels for the spirits more appealing in the hope of reaching the groups of drinkers who like to proudly showcase symbols of sophistication, class, and affluence in their homes.