Will the Industry Survive Heavy Discounts?
Over the past year the spirits industry has mimicked big brewers by using discounts, coupons and price promotions to lure consumers back to their brands and build volume share. The problem is that revenues suffer and so does brand image, some say, which could make it difficult to raise prices once the economy improves. The spirits companies followed suit in 2009 and really kicked things up during the holidays, while brewers, who are notorious for their heavy summer discounts, held firm with pricing. Interestingly, Jeff Nowicki, chief strategy officer with Bump Williams Consulting, told WSJ's David Kesmodel that
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