LAUNCH A SPIRITS BRAND LIKE ITS  2026 NOT 2006

This past year has been a tough year for beverage alcohol. Many reasons are cited: health guideline changes, tariffs, inventory backlog, consumers reducing alcohol consumption, switching to non-alc or functional options. While these all play a role, I wonder if the root of the problem may be that we are not meeting consumer expectations or evolving to respond to the current consumer purchase habits.

First, there have been a lot of products introduced in the past decade. Many of them were launched because of the producer/distiller’s need to create a revenue stream while stock aged. Others kept making things because they loved to produce stuff but weren’t that interested in the process of marketing and selling it. Finally, larger suppliers quickly jumped on the latest trend and released products with little differentiation. All of this reflects the producer’s needs instead of a focus on what consumers wanted. Slowing down, taking the time to understand what is already in the marketplace and ensure that you are offering something truly different that reflects consumer consumption habits is more important than ever in this crowded marketplace.

Second, the way that consumers learn about and engage with new brands has permanently changed. Consumer discovery is firmly centered on mobile devices and soon it will be centered around ChatGPT and other AI tools. Yes, consumers still want to taste and experience your brand in a bar or restaurant but that is not where the discovery process starts. Missing the online discovery moment means you miss the opportunity to have your brand considered. The consumer carefully curates their out of home activities in advance. Bars, restaurants and activations are where the brand experience cements the relationship with the consumer, not where brands are discovered.

This reality should drive your programming and your online strategy. The phases and channels have shifted so how brands launch, build and expand must also change. Brand managers who take advantage of this consumer decision making evolution will create the most successful brands in the industry. The tactics for engaging the consumer along the whole decision making cycle need to be consistent, compelling and personalized. Tools for targeting your core consumer, creating awareness in a cluttered world, driving consideration, building ongoing relationships, allowing personalization based on preferences are all essential. With each of these tools comes data which needs to be managed and understood to glean real insights that increase the effectiveness of your marketing spend and grow your business.

We need to question assumptions about outdated best practices with updated approaches that deliver insights faster and with more targeted budget allocations than has ever been possible. In order to succeed, we all need to evaluate and employ technology, AI, etc. while preserving the essential human connection that will continue to drive the beverage industry.