How alcohol brands can innovate when money is tight - Market Intel

Speed, not size, is your advantage

For the founder of spirits creator and distributor Biggar & Leith, Elwyn Gladstone, the key to competing with larger brand owners lies in agility. “Speed to market is a real commercial advantage,” he says. “We can come up with ideas much quicker than big companies.”

This speed is particularly valuable in an industry where demand for novelty remains strong. “There’s something interesting going on in spirits,” Gladstone explains. “The market is saturated with products, but at the same time, there’s an insatiable appetite from consumers for new things.”

Online channels have changed the game, allowing start-up companies to launch quickly, test products and pivot as needed. “You can put your new innovations online immediately without having to wait for a listing with a retailer,” says Gladstone.

Limited editions done right

Limited runs can be an effective way for small brands to explore innovation and generate buzz. However, Gladstone warns, they only work when executed well. “Limited-edition releases in spirits got a bit overdone – they were no longer special,” he says. “But if done well, these can be a super-powerful tool.”

The co-founder & CEO of product & innovation agency Juicy Brick, Grace Bryan, agrees. “Seasonal drops or exclusive batches give you space to test ideas, gauge feedback and create hype, without venturing into external full-scale productions,” she advises.

Design as a premium differentiator

Design plays a disproportionately large role in the success of premium spirits brands. At the same time, though, top-tier packaging doesn’t have to come with top-tier cost, insists Guy Lawrence, formerly of La Hechicera Rum & founder of drinks advisory firm Craft Spirit Capital.

“Design is one of the most important things for premium and super-premium brands,” he says. “Your packaging needs to be 9.5 out of ten. There’s no point being eight out of ten. How do you get brilliant design right for next to nothing? It’s really difficult,” he concedes. “But great design is very powerful at cutting through.”

Bryan suggests cost-effective packaging hacks: “Explore off-the-shelf options you can customise,” she suggests. “Think hand-labelled bottles, stickers on blank cans, or labelled pouches instead of custom-printed packaging.

“These small-scale hacks still allow you to look considered, artisan and on-brand without the massive spend.”

Innovate inside out

One way to innovate on a tight budget is to look inward. Bryan recommends mining production processes for untapped value. “Take a close look at your production by-products,” she says. “Is there anything you’re discarding that could be repurposed into something new?” Bryan points to the example of London cocktail bar Lyaness turning lemon peel waste into stylish coasters – proof that creativity and sustainability can go hand in hand.

Bryan also champions starting innovation close to home. “Can you develop new flavours in-house through a bit of trial and error?” she asks. “Before you dive in, do your homework.

“There’s loads of insight out there if you’re willing to dig.”

Keep it simple and stick to core values

Holla Spirits founder Patrick Shorb believes focus is everything. “Stick to deeply penetrating your markets with a small number of SKUs to maximise impact,” he says. “Rationalisation is continuous.”

This level of focus should also extend to brand design. Simplicity is key, Shorb advises, to “make it ultra-fast for the consumer to know what you’re selling”.

Behind every successful innovation is a strong formulation and this is one area where cost-cutting is risky, says Shorb, whose company produces a range of “13-plus higher-quality” flavoured vodkas.

“It’s essential to find a formulation partner who understands your ethos,” he explains. “Achieving the right mix and balance of flavour, calorie counts and ABV for your target consumer is a must.”

Community, collaboration & craft

Tapping into local ecosystems can help small businesses scale innovation without scaling cost.

“Use your community,” Bryan urges. “Whether that’s potential local suppliers who provide low MOQs, an audience to test products, or even small independent production partners like microbreweries, coffee roasters or vineyards.”

In other words, successful spirits innovation doesn’t have to mean isolation or heavy investment. More importantly, as Lawrence points out, “it’s about being early – but not too early”.