cquiring ZeBank may actually have exacerbated the media's reaction since it represented the taking over of a French institution by an English one, something that may well have been perceived as a negative rather than a positive by the French.
Malt beverages have been available in the United States under the guise of malt liquor, but beer and spirits manufacturers have been interested in capturing a larger share of the other market, and saw malt beverages as a way to accomplish this. Malt beverages contain more alcohol than beer, but less than traditional spirits such as rum. Malt can be made in various flavors, enhancing the marketing possibilities. At the same time, beer is consumed on occasions·such as while watching sports·when spirits are not, and consumers of spirits are considered more desirable from a demographic standpoint than beer drinkers.
This was the environment into which several distillers·including Smirnoff and Jack Daniel's·introduced malt flavored beverages. One of the best-known brands, Captain Morgan Gold, came from the company that produced Captain Morgan rum, a drink often mixed with Coca-Cola. Captain Morgan Gold had "colar" flavoring, but did not taste like a traditional rum and Coke (Shapiro, 2003).
The failure of Captain Morgan Gold, along with other beverages in the malt beverage category, demonstrates that an attractive market opportunity still requires that new products have a strong marketing mix to support their introduction. Consumers were confused about the taste of the new beverages, and Captain Morgan, for example, failed to extend its brand sufficiently to support the new product. In addition, it is not clear that the beer-drinking consumer wants a drink that is more intoxicating, although having a mixed drink alternative that is less intoxicating than traditional mixed drinks may have been attractive (Shapiro, 2003).
While companies should take full advantage of market opportun...