Chivas Builds its own Bud.TV, but Will Watchdogs Bite?

CHICAGO (AdAge.com) -- Bud.TV's lawmaker clashes and audience-building struggles haven't scared Chivas Regal from launching its own online-video channel.

The Pernod Ricard Scotch whisky brand and MSN recently announced the launch of "This Is The Life," an online channel dedicated to extending the brand's long-running "Chivas Life" campaign.

The Chivas channel breaks as the brand has lost ground within the U.S. to its chief rival, Diageo's Johnnie Walker, despite fast-growing sales worldwide. Between 2000 and 2005, Chivas' U.S. shipments declined about 1% annually, while Johnnie Walker Black Label -- priced closest to Chivas -- grew nearly 5% a year.

Johnnie Walker also moved more quickly and more aggressively onto the internet, which spirits brands are increasingly relying on to reach affluent drinkers. In 2005, Johnnie Walker spent about four times what Chivas did online ($203,000 to $51,000, according to TNS Media Intelligence, out of total media spending of $10.1 million and $6.7 million, respectively). In 2006, however, Chivas spent nearly $700,000 of its $6.9 million media budget online, exceeding Johnnie Walker's $273,000.



Chivas' 'This Is the Life' channel shows affluent young Chivas enthusiasts cooking gourmet meals on 50-foot yachts, boutiquing, golfing and learning about hand-rolled cigars.

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