The King is dead-Long live the King Mindset
Why There's no "Dead" Drink Categories & How to stay focused when your category isn't trending.
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Dear Drinks Builder
In the dynamic drinks industry landscape, trends come and go.
"Rum is dead. Whisky is dead. Vodka is dead." These phrases have echoed through the years, supposedly signaling consumer preferences. But are these pronouncements accurate, or is there a deeper truth we should uncover?
The Myth of Category Demise
Every 5-10 years, industry pundits call a category "dead."
The cycle repeats like clockwork, sparking speculation about the next big thing. But history tells us that categories are cyclical—with glory and rainy days.
When a category is fading, a remarkable comeback often occurs.
Also, if you see a trend, you’re probably already late to the gold rush. It is much better to stick to a category you believe in, not to the greener grass of your neighbor.
Understanding Category Cycles and Occasion-Based Consumption
We must recognize that consumer preferences are not fixed. Trends shift as taste profiles change, influenced by broader cultural shifts and specific consumption occasions:
1. Culinary Trends: New cuisines become trendy, bringing with them new drinks and flavors. Consider the emergence of Mexican cuisine, which has boosted Agave spirits or Korean cuisine with Soju.
2. Cultural Shifts: The craft cocktail renaissance revived many "dead" spirits and liqueurs; the same happened with some beer styles.
3. Health Trends: Rising health consciousness has led to low-ABV and non-alcoholic alternatives.
4. Occasion-Based Choices: Consumers often choose drinks based on the occasion rather than the category itself. For example:
After-dinner drinks: Whisky and cognac are traditional choices, but amaro and other digestifs have been a staple in countries like Italy. They are gaining popularity thanks to the spread of food trends and cocktails.
Summer refreshments: While gin and tonic have been a go-to for decades, spritz cocktails have brought aperitifs like Aperol to the forefront. Tequila and Mezcal in the US market play the role Gin plays in Europe (with Agave Spirits gaining ground also in Europe)
Cocktail ingredients: The resurgence of classic cocktails has revived interest in previously "dead" categories. The Negroni's popularity has boosted both bitter and vermouth consumption.
Celebratory toasts: Champagne remains a staple, but prosecco and other sparkling wines have gained market share.
The Bottom-Up Approach: Building Resilient Brands for Every Occasion
The only constant? Brands are built from the bottom up. This approach provides a solid foundation for sustainable growth regardless of the category or current trends.
Stop chasing the "next cool thing". The bottom-up approach is an enduring strategy that withstands the test of time.
Consistency and Persistence: If you work with a dormant category, the key is to keep focusing on the basics while highlighting your product's versatility across different occasions.
Long-Term Focus: Trends may come and go, but brands built bottom-up with clear occasion positioning are set for long-term success. It may take longer, but the results are more enduring.
Adaptability: A bottom-up approach encourages adaptability. Small adjustments let brands evolve without losing their essence. For instance, a whisky brand traditionally seen as an after-dinner drink might promote its use in refreshing highballs for summer gatherings.
Community Building: By focusing on grassroots efforts and specific drinking occasions, you create a loyal community of supporters who incorporate your brand into their lifestyle.
Innovation Within Tradition: Bottom-up brands often find unique ways to innovate within their category, potentially sparking its revival by creating new consumption occasions.
Case Studies: The Phoenix Categories and Their Occasions
Gin: Once considered "grandma's drink", gin has experienced a remarkable resurgence. It's not just about G&Ts anymore - gin has found its place in complex cocktails, refreshing spritzes, and even neat sipping occasions.
Rye Whiskey: Nearly extinct in the 1980s, rye has made a triumphant comeback. While it's reclaimed its place in classic cocktails like the Manhattan, it's also carved out a niche as a sophisticated sipping whiskey for connoisseurs.
Aperitifs: Bitter liqueurs like Campari and Aperol, thanks to Negroni and Spritz Cocktails, have surged in popularity, defying previous notions of American palate preferences. They've expanded beyond the pre-dinner drink occasion to become staples of brunch culture and all-day refreshments.
Rum: Once pigeonholed as a mixer for sweet tropical drinks, premium aged rums compete with whisky and cognac in the after-dinner sipping occasion, with World Rum becoming a growing category.
TL;DR (Too Long; Didn't Read)
In the ever-evolving drinks industry, the cyclical nature of categories is undeniable. Rum, whisky, vodka – they all have moments in the sun and periods of shadow. Instead of chasing trends, the real growth hack lies in building brands' bottom-up, focusing on specific drinking occasions.
So, let's break the cycle of prematurely declaring categories "dead".
Let's build from the bottom up, regardless of current category trends. After all, in a world of constant change, some strategies remain timeless and unwavering.
The brands that weather the storms and emerge stronger often have deep roots, authentic connections, and a clear understanding of their place in consumers' drinking occasions.
Remember: No category is truly dead – it's just waiting for the right brand to breathe new life into it by finding its place in consumers' lives and occasions.
I hope this mini-guide will help you develop the small, consistent habits you need to build your brand from the ground up.
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