Following on from Part One of a Q&A last week, BeverageDaily.com’s Personality of the Year 2013 says it’s vital brands be creative and move from micro to macro, with product differentiation increasingly important.
BEN BOUCKLEY: Philip - the US beverage market is growing, but also seems to be becoming more local and fragmented. What’s the secret to a winning brand, and how much care does VIRUN take in terms of deciding who you partner with?
PHILIP BROMLEY: A lot of new beverage brands that engage us all want to develop a brand that will be sold at Wal-Mart, Kroger’s, Costco etc. It is this thinking that will inevitably lead to failure. Walk down the beverage aisle at your local grocery store, how many brands do you see are not owned by the major brands? The answer is, very few.
Also, the shelf space available to you in these markets are tiny. You have 8 feet of one particular brand’s sport drink and you are given 3 inches. Not to mention, if you are a new brand, you are producing maybe 30,000 units a month while the large brand is producing 5m units a month. What is their cost per unit, 15 cents? Your cost is 35 cents…