The CPG Guys

Digital Drinking with Constellation Brands' Wayne Duan & Sara Master


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The CPG Guys Sri Rajagopalan & Peter V.S. Bond are joined in this episode by Wayne Duan VP of eCommerce & Digital Commerce and Sara Master Director of eCommerce Marketing & Catalog Management, both from Constellation Brands, makers of iconic brands like Corona, Modelo, Kim Crawford, Meiomi, Casa Noble & Mi Campo.

Sara & Wayne talk about the unique requirements in marketing controlled substances, particularly in leveraging retail media. They also discuss insights in consumption behavior during the pandemic.

Questions they address in the interview:

  1. Unlike other food & beverage categories, alcohol is subject to additional restrictions in how brands can invest in promotion and shopper marketing, specifically with retailers. Would you tell us about “Tied House Laws” and the “Three Tier System” to ground our audience in how you navigate your operations?  
  2. How do these restrictions influence your go-to-market strategy within eCommerce? 
  3. We understand that the restrictions you mentioned around “Tied House Laws” have also influenced consumer perceptions around alcohol and eCommerce. Is it true that, even today, many consumers think it’s just not allowed or available?
  4. Based upon what you just shared about these legal restrictions, let’s put it into real world examples: If a retail media placement is managed and invoiced by a retailer what can you do or not do; and is that different for a third party marketplace that is not owned by a retailer, like Instacart and Drizly for example? 
  5. As Constellation leans into eCommerce, both from a content and a paid marketing perspective, what is the link between eCommerce and in-store sales? How does eCommerce influence in-store sales and how does your team support this?  
  6. Tell us about how content contributes to the digital shelf experience and how you determine where to invest against content? Does content strategy differ based upon how premium a product is? 
  7. While eCommerce shopping has increased since COVID-19 we know consumers are still shopping in store but they are shopping differently. What are some of the most meaningful insights you can share with us about behavior changes in alc bev retail since the beginning of the pandemic and how are these influencing your business decisions? Trips, product mix, sizes, etc.   
  8. Are state omnichannel alc bev laws changing of late and are they benefitting the consumer? In other words, will I ever be able to purchase spirits, wine and beer in Pennsylvania without visiting 3 different stores or in a single eCommerce transaction?  
  9. How does Constellation invest in digital media given the legal restrictions? Is everything “Above the line?” What are the target capabilities of a media platform that draw you to investing in them?  
  10. As you look to the future, how will the recent bumper growth in eCommerce, paired with the downturn driven by the pandemic, impact Constellations Brands? Do shoppers move away from categories when times are tough or is it brands and pack sizes? How do you compensate?

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The CPG GuysBy Peter V.S. Bond & Sri Rajagopalan

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