cpg: beverage:

The Balance Between Tradition and Innovation

While the Consumer Packaged Goods – Adult Beverage category is driven by innovation, it is also steeped in tradition. These products date back to the start of time when man first discovered that “fermentation = boozy deliciousness.” Yet the key to future success relies heavily on taking a classic concoction and tweaking it into something new and different for the young and ever-demanding consumer.  

Product innovation has exploded in the last 10 years. It is hard to remember a time when there weren’t 50 different flavors of vodka, or a dozen high-end tequilas to choose from at the bar, or new package designs coming out each year. Learnings for the soft-drink category have been brought in to create organic, caffeinated, artisanal and limited-edition offerings that drive demand for whatever is the “new thing.”

Traditional creative communication has been supplanted by digital media, social media and on-premise events. In the world of Facebook, Twitter and MySpace, constant communication with consumers is an opportunity to engage them with the brand and shape the message they disseminate. With more than half of the consumption of alcoholic beverages on-premise (restaurants, bars, etc.), brands are taking more advantage of on-premise campaigns in an effort to drive consumption among first-time drinkers and to find older consumers. Pairing with non-mainstream musical acts offers a niche of consumers that engage with the brand on a deep level and will gladly share their thoughts with 500 of their Facebook “friends.”

Product innovation and creatively targeting consumers is important to maintaining relevance, but the strongest driver of the category was, is, and always will be brand image. Whether the image is aspirational, premium, approachable or down-to-earth, a strong yet malleable image is the key to weathering economic slow-downs and retaining consumers. These brands are status symbols that help consumers define who they are and what they want to be.