Successfully launching a brand in the on-premise

New products in the drinks industry need to trigger a change in consumer behaviour.

According to CGA 36% of global consumers regularly trial new drinks in the On Premise and those experiences have prompted 3 in 5 to purchase a drink in the Off Premise.

With a higher propensity for consumers to try something new in the on premise, and a proven knock-on effect on sales in other channels, the on-premise continues to hold the position ( /reclaims post-pandemic) as the optimum environment to launch a new brand.

The same CGA article states that just 8 of the 3,675 brands launched in the GB on premise in 2019 had managed to achieve over £1m in value sales over a quarter by the beginning of 2022. So just winning a listing is clearly not enough…

The latest Barfly Musing asks senior bartenders from around the world, what they want to see when considering new brands to put on their shelves. The key points that landed with me are:

A commercially attractive and a versatile offering

The buy-in price has to be competitive and justified, but the margin the outlet can achieve is key; premiumisation and a brand story strong enough to carry a heavier price tag.

A product that can be offered as stand-alone, but also be part of a more complex serve offers more opportunities for an outlet to sell volume and increase margin.

Flavour and liquid profiles need to add to the existing offering Quality and superior taste are a must have, but being able to offer something the bar is unable to offer themselves as a flavour or experience gives operators a reason to stock – a product that can drive incremental volume or margin, not cannibalise existing profitable serves.

Brand story, relevance and consumer affinity

Operators want brands with depth, stories they can relay to consumers as part of the sell to elevate the experience beyond just the liquid, and drive brand affinity.

Operators also wants the brand to say something positive about the curation choices they make as outlets; brands need to aim to offer a halo affect that effectively improves perception of an operators offering. The more obvious examples of these characteristics are sustainability initiatives, brand purpose, geography and provenance, but the brand does also have to be the right fit for the outlet in terms of tonality, style and overall experience.

Support that is ongoing

Launch activity to build initial momentum is obligatory, but it can’t stop there. Sustained support, education and brand content is vital to move both outlets and consumers from trial to regular purchasers.

De-listing a brand in much less likely if a relationship has developed via comms and ambassador and/or sales teams that demonstrate the brand support is sustained.

In Summary

Operators understand consumers are asking for more from them to justify the cost of enjoying the on premise environment. Brands that can elevate that on premise experience, support operators to improve their offering and that can be more relevant and engaging for their consumers will go a long way.