Oh 2020…You really are a rollercoaster of a year...
For brands across the globe, this year has been either sink or swim. The beverage industry has seen plenty of ups and downs.
British Beer and Pub Association (BBPA) Chief Executive, Emma McClarkin, explains how the lockdown has been devastating for brewers, stating that one brewer with 98% of its business in the on-trade segment, was turned off overnight.
All players have felt the impact, from large international breweries to local craft operations. For example, AB InBev (who produces Budwiser and Corona) reported declines from 32.4% in April to 21.4% in May.
But how have alcohol and beer brands adapted their business and branding strategy to respond to this current climate, successfully or not so successfully?
Bringing the experience home
The experience market has been disrupted. Not only are people out with friends at pubs less, but premium, experience-led activities such as wine-tasting and cocktail making have halted. A brand strategy which aims to continue their experience-led theme has been proven a success by many different companies across the globe.
Hamel Family Wines based in California have had to shut their wine tasting room doors in accordance with government rules. Instead, they are offering shipping deals, sales codes and wine tasting box packages to keep customers’ wine tasting experiences going and sales up! This ultimately brings the wine-tasting experience to the living room, making the fundamental proposition of the brand stick.
Giving back
For some companies, the core strategy has been to maintain as much of their existing image as possible. A key aspect of this is demonstrating that they’re willing to follow through on the promises that they’ve made in the past, and show how much they care with authentic action.
Coca-Cola and The Coca-Cola Foundation have been making contributions to support relief efforts around the world. They have also redirected a large part of their marketing spend for community relief programs, medical supplies and equipment during the outbreak phase, as well as developing other actions for the recovery and back-to-normal phases in markets hit hardest by the pandemic.
Another brand who is giving back is Guinness. Guinness has announced that they have committed $500,000 through it’s Guinness Giving Back Fund to help its communities and the hospitality industry in the US. It also set up a £1.5 million fund in Ireland to support bar staff facing reduced hours as well as vulnerable senior citizens. This all surrounds Guinesses core idea that “we are pretty tough when we stick together”.
Adapting and transforming the business model
Brands which have demonstrated to adapt within a world of chaos have been viewed as proactive and dynamic.
Brewdog and Louis Vuitton have repurposed their production lines to produce hand sanitizer, aiming to solve the issue of low stock sanitizers and high demand for it, especially within hospitals and surgeries. They have also donated their hand sanitizers to key workers and shared this via their Instagram account with a sneak peek behind the scenes of the production processes, being received incredibly well.
Local Surrey-based gin distiller, Silent Pool, took only 2 days (after lockdown restrictions were put in place) to transform their production line into a hand sanitizer brand. They set a plan to give away 50 bottles a day, one per person, at the distillery shop, with priority for key workers. By April, 5,000 units were donated and the gin distillery is still producing more and more hand sanitizer to date!
Nipping it in the bud! The risk of becoming tone-deaf within a vulnerable climate
Good brand positioning in times of crisis isn’t just about keeping the core messages strong. Language and imagery that is used within the campaigns and the impact that they could have on long-term image is vital. The Coors Light commercial “Official Beer of Working Remotely” was pulled before it was officially launched. This is because there were concerns that the campaign was making light of the people who are self-quarantining due to the COVID-19 health crisis, and might have come across as insensitive.
As many successful companies are beginning to learn, it’s how they position, alter or redefine their brand in these challenging times that determines whether they survive the crisis within the minds of their consumers. A key out-take is that instead of just joining consumer conversation, culture and current issues should define brands. No longer do consumers follow brands, but brands follow consumers. Successful brand strategy should know when to weave themselves in at the most optimal time for engagement, with their core brand values at the heart of everything they do.
