Beverage alcohol is a highly competitive market in Canada, with many brands vying for the attention of consumers. To stand out in this crowded space, it is essential for companies to have a strong branding and marketing strategy that differentiates them from their competitors. Recent years have seen a trend of brands diversifying their product portfolios to appeal to a broader range of consumers.
The importance of strong branding
A strong brand is essential for success in the beverage alcohol market. Branding encompasses everything from the name and logo of the product to the packaging, advertising and promotional materials. A well-crafted brand creates an emotional connection with consumers, making them more likely to choose that product over others. For Bry Simpson, national brand ambassador at Moët Hennessy, an alcohol brand must have a strong brand story if it is to break into the Canadian market.
“Recently, there has been a trend where brands aim to be seen as high-quality from the beginning by sharing a compelling story, usually about a specific person that is a part of their team. They do not focus too much on the place where the product was made, but they are still receiving praise from enthusiasts and making good sales. It is interesting to see how companies are diversifying their products, not by changing how they make them, but by having a unique story to set them apart from their other products,” he said.
Brands that celebrate Canada’s heritage, landscapes and local ingredients have been able to differentiate themselves and create a sense of pride among Canadian consumers.
The Canadian company Lot 40 is a prime example of a beverage alcohol brand that has successfully differentiated itself through strong branding. Lot 40 is a premium Canadian whisky that has become a household name in Canada, due to its unique flavour profile and distinct packaging. The brand has leveraged its Canadian heritage to create a strong emotional connection with consumers, and its commitment to quality and authenticity has helped to build a loyal following.
In addition, they have diversified their product portfolio to include different types of whisky and limited-edition releases, which have helped to create buzz and excitement among whisky enthusiasts. Its success highlights the importance of branding, marketing and diversification strategies in Canada’s competitive beverage alcohol market.
“We have invested a great deal of time developing the Lot 40 brand to be more than just a great whisky, but also a lifestyle brand that consumers can relate to and connect with on a deeper level,” said Dave Mitton, global ambassador for the brand.
As the beverage alcohol market in Canada becomes increasingly competitive, brands need to differentiate themselves through strong branding, marketing and diversification strategies. One effective branding strategy is to tap into the cultural identity of Canadians, while another is to demonstrate a commitment to sustainability and environmental responsibility, as exemplified by Molson Coors.
Sustainability as a branding strategy
One of Molson Coors’ significant sustainability achievements is the reduction of its water usage in Canada. The company has set ambitious water reduction targets, and through innovative technology and efficient processes, it has reduced water usage by over 22 per cent since 2012. Furthermore, Molson Coors has partnered with local communities and organizations to protect watersheds and promote responsible water usage practices.
The company has also taken steps to reduce its greenhouse gas emissions in Canada. Molson Coors has invested in renewable energy sources, such as wind turbines, solar panels and biomass boilers, to power its breweries.
“At Molson Coors, we are dedicated to constructing a sustainable future and recognize that it is our duty to safeguard the environment and preserve natural resources. We are pleased with the advancements we have made in the areas of sustainable packaging, renewable energy and water conservation. Working with our partners and stakeholders to improve the environment and the communities where we live and work, we will continue to advance sustainability in Canada,” said Frederic Landtmeters, CEO of Molson Coors Canada.
Véronique Gonneville, communication director Canada at Moët Hennessy, also emphasizes the importance of addressing eco-consciousness and ethical production for alcohol brands on the Canadian market.
“We also understand that we also need to do our part to reduce our overall environmental footprint. We have been doing this by eco-designing our packaging and marketing assets within an overall circular economy strategy, opting for low-carbon transportation, improving energy efficiency, accelerating the roll-out of renewable energies across our maisons, and reducing and recycling our waste. Most importantly, we involve our suppliers and partners at every phase of the value chain, from grapes and crops to communication and client consumption,” said Gonneville.
Tapping into cultural identity
Another successful branding strategy in the beverage alcohol industry is to tap into the cultural identity of Canadians. Brands that celebrate Canada’s heritage, landscapes and local ingredients have been able to differentiate themselves and create a sense of pride among Canadian consumers. For example, Moosehead Breweries leveraged its status as the oldest independent brewery in Canada and its use of local ingredients in its beers to create a strong brand identity that resonates with Canadian consumers.
The importance of marketing
In addition to branding, marketing is also crucial for success in the beverage alcohol market. One effective marketing strategy is to engage with consumers through social media and influencer partnerships. Social media platforms such as Instagram and Twitter provide a stage for brands to showcase their products and connect with consumers in a personal and interactive way. Influencer partnerships, in which brands collaborate with popular social media personalities to promote their products, can also be effective for reaching a wide audience.
For Maria Sutton, group marketing manager at Campari Canada, which owns various Canadian spirits brands including Forty Creek and Ungava Gin, keeping up with social media trends is crucial.
“I always use social media as my culture thermostat, people are hyper-connected and never shy to share their opinions. On top of that, I have access to a lot of industry and market research, and I try to stay up to date at least with the newsletters of top insight outlets like WARC, IWSR, Mintel, etc.
No matter the agenda of the day, I make sure to dedicate the first 30 minutes of my day to read the news, industry headlines, and at least two or three industry articles. I find this exercise a good routine to stay up to date with the world and trends,” she said.
Hosting events and experiential activities is also an important step to follow for brands that care about keeping their buzz going. Unique and memorable experiences can create a sense of excitement and buzz around their products. For example, in 2019, Absolut Vodka launched a pop-up bar in Toronto that used facial recognition technology to recommend cocktails based on the customer’s mood. This innovative experience generated significant media attention and helped to build the brand’s reputation as a leader in innovation and technology.
Expanding product portfolios
In addition to branding and marketing, diversifying product portfolios has become an increasingly important strategy for beverage alcohol brands in Canada. Diversification involves expanding the range of products offered to include different types of beverages, flavours and packaging formats to appeal to a wider range of consumers.
A well-crafted brand creates an emotional connection with consumers, making them more likely to choose that product over others.
One trend in Canada’s beverage alcohol industry is the rise of hard seltzers, which are low-calorie, flavoured alcoholic beverages that have gained popularity in recent years, particularly among younger consumers. Brands such as White Claw and Truly have become household names in the United States, and Canadian brands are starting to follow suit. For example, in 2020, Molson Coors launched Vizzy, a hard seltzer brand that uses real fruit juice and antioxidant vitamin C to appeal to health-conscious consumers.
Jazzing up product portfolios to appeal to a broader range of consumers, has been a successful brand diversification strategy. It is essential for companies to keep up with changing consumer preferences, emerging trends and new technologies to remain competitive. The beverage alcohol industry has witnessed significant changes in recent years and companies that can leverage these shifts to their advantage can create new opportunities for growth.
The beverage alcohol industry is dynamic and constantly evolving, and companies that can adapt, innovate and prioritize sustainability will be the ones that succeed.
