What Every Drinks Brand Needs to Do Right Now
Survival strategies for a downturn in the market
The name of the seminar might have been Brand Building in a Saturated Market, but the real theme was survival.
The Distilled Spirits Council of the United States (DISCUS) is the national US trade body for the spirits industry, and it offers members regular educational seminars. Last night’s session brought together panellists who said the old growth advice no longer works in a market that’s contracting.
As marketing consultant Danielle Eddy said, “Consumer expectations and market dynamics are shifting under our feet.”
Here are 5 takeaways:
1. You are only new once
First impressions count.
Beverage strategist Stephen Myers, who’s launched brands like Mr Black coffee liqueur in the US, quoted founder Tom Baker: “You are only new once”.
First impressions count, “from the engagement to the weight, the packaging, the product,” he said.
Every brand has to convince someone to pick it up for the first time, which means the visual and sensory identity is all important.
“If you get someone to pick up a bottle, it’s an astronomical conversion rate,” he said. “Once they pick up that product, it’s a 65% or 75% conversion rate.”
What doesn’t help the consumer pick up that brand? Celebrities.
“Celebrities can maybe help with TikTok engagement, but liquor stores don’t care about them, and sometimes the inauthentic nature of these associations can really backfire,” said Scott Rosenbaum, strategist and co-host of the Business of Drinks podcast.
It only works if the celebrity is deeply involved with the brand. George Clooney “was out building distribution channels more than he was signing bottles,” Scott went on. “He did that for four-plus years” for his Casamigos brand.
The average celebrity, on the other hand, posts about their brands less than once a week. It’s pointless.
2. Data is the brain, storytelling is the heart
Gut feel has a lot going for it, but “eventually we need to test that hypothesis, and this is what data is good for,” said Scott.
Without up-to-date customer data, “you are just guessing, and in this industry, guessing is extremely expensive”.
Good data must be built on a representative sample and has to be timely.
“Gathering data over six months and then using it two months later might not be actionable or valuable,” said Scott.
He suggested that activations can be a good way to gather data, because “activations permit you to have a feedback loop”.
Social listening is another important tool. “You can use relatively affordable paid tools like HubSpot, or set up Google alerts so that every time someone mentions your brand or your category, you’re going to get an email.”
Reddit is also a great source of information. “If your brand isn’t on Reddit, that’s a warning sign,” said Scott.
So are focus groups. “This doesn’t have to be a giant paid focus group. You can send out a survey to folks who have purchased your product online or have visited your tasting room.” Scott suggested offering the opportunity to win a bottle as an enticement to fill out the survey.
“The three-tier system separates the producer from the consumer,” he finished. “Data helps shrink that — it brings you back in touch with them.”
3. Target the right consumer
The target audience for your brand might not be who you think it is.
Scott said he once worked with an online brand that assumed its audience was Gen Z.
“I said, ‘You don’t know anything about your consumer,’ and they took that to heart.” They sent out an email to all 200 customers who had bought online — and more than three-quarters of them were over 45.
That completely changed the company’s strategy. Plus, when they were ready to approach distributors, they knew exactly which accounts to target.
4. Simplify your range
Scott says that having a simple, curated range is important for both consumers and the trade. “Investors don't like to get lost in the weeds of every single SKU, and consumers don’t [want to] know that you make 20 different iterations of a product.”
It’s fine to have 15 products in a tasting room, but go to market with a much simpler offering.
Also know what makes your brand unique — something that “you do that others can’t or won’t”.
Being “the best” is highly unlikely to resonate with the market, “because everyone is saying they are the best. The best vodka, the best bourbon… the industry is awash with the best.”
You need something more singular.
Consultant Elana Effrat noted that portfolio managers take a big risk every time they agree to represent a brand.
“You’re thinking about every brand in the book. A sales rep has six slots in their rolling back — the portfolio I was overseeing had over 300 SKUs and the wine portfolio was over 4,000 SKUs.”
There is only so much space in that bag — so make the range as simple and memorable as possible.
5. Complacency is deadly
Danielle ended the discussion by adding that being ready to change as the market changes is critical.
“Complacency is the growth enemy. So review, adapt, innovate, and chat with others. Don’t just throw spaghetti at the wall.”
Lightning Round
If your brand doesn’t stand out on social media, it won’t stand out on a back bar.
A strong why is more important than a clever what.
Risk taking is mandatory. If your brand tries to please everyone, it pleases no one.
Show up in person, because nothing makes a brand more human.
Don’t chase partnerships that don’t fit. A gin brand in a beer-drinking sports arena is a waste of time and money.
Overall, the message was blunt: times are tough, guessing is expensive, and status signals won’t save you. But complacency will kill you.