By Andrew Gerard, Senior Consultant, Circana
In a fast-changing marketplace defined by evolving consumer preferences, liquor brands face the challenge of maintaining relevance and profitability while expanding into new areas. The most successful brands are ‘elastic’ – they stretch their identities and portfolios into new categories without compromising their core values.
Elasticity in branding is the ability to expand into new products, experiences, and collaborations while maintaining a consistent brand identity. For liquor brands, this could mean developing new beverage formats, exploring non-alcoholic options, or launching experiential events, all while staying true to their heritage. The key is to innovate and adapt based on consumer insight and emerging trends, from health-conscious alternatives to occasion-based consumption.
Brands use data analytics, technology, and partnerships to expand their reach. It is important for brand expansions to align with established core values to maintain consistency and consumer trust.
Five tenets for liquor brands becoming elastic:
- Deepening consumer connection: Brands must create personalised, meaningful experiences through tailored releases and immersive events. By nurturing direct relationships, they foster loyalty and encourage repeat business.
- Fostering agility: brands should embrace rapid innovation and testing, allowing them to quickly respond to market changes and emerging trends. Agility means adapting without losing sight of what makes the brand unique.
- Leveraging technology and data: Using real-time analytics, brands can optimise supply chains, pricing, and marketing. Technology also enables better engagement with consumers, whether through smart packaging, loyalty programs, or personalised content.
- Experimenting with AI: Artificial intelligence enables brands to streamline product development, inform marketing strategies, and even craft bespoke flavour experiences. AI-powered insights allow for targeted innovation and smarter decision-making.
- Measuring and accelerating demand: Predictive insights and market segmentation help brands align new product launches with actual consumer needs, ensuring resources are allocated effectively and that every new brand extension has the best chance of success.
Tech, data, and the power of personalisation
Circana’s analytic solutions allow brands to segment markets, understand unique customer preferences, and maximise resource allocation for effective demand generation. Imagine a liquor brand using data-driven insights to launch a region-specific spirit, or leveraging predictive analytics to anticipate seasonal trends and adjust product launches accordingly.
Brands that integrate these five tenets – deep consumer connection, agility, technology and data, AI-driven experimentation, and precise demand measurement – can become truly elastic. This elasticity empowers them to innovate confidently, respond to shifting consumer needs, and remain resilient in an unpredictable marketplace. Ultimately, the elastic brand is the one that not only adapts to change but leads it, securing long-term loyalty and growth in the evolving world of beverage alcohol.
To learn more, subscribe and download the latest Outlook report from Circana ‘Stretch for Success’.
This article originally appeared in the August-September issue of National Liquor News.