Exciting flavours, seasonal offerings and locally made products are the best way to entice consumers to try something different, the market research body suggests.
Investment going to waste?
Canadean calls the findings of its UK report ‘concerning,’ given the substantial investment which goes into developing and marketing product launches.
It also puts new products at a considerable disadvantage against popular brands.
Drinkers like to stay with products they know and trust; don’t find innovations attractive; or aren’t even aware of new products, the survey suggests.
Sam Allen, analyst, Canadean, said consumers are faced with myriad options at pubs, bars and clubs. “In the face of so many new drinks they often stick to tried-and-tested favourites,” he said.
Out of the consumers that do try new drinks, the survey found 56% would experiment with new flavours. But should brands stick to close variations of traditional favourites, or is experimentation with novel new ideas the answer?
"While it is true that some consumers are bored with traditional flavours, there are many that will continue to desire familiar tastes and will be unlikely to try new offerings," Allen said.
"There will be a lot of fusion occurring across the FMCG market as a whole in 2015, and the alcoholic beverage market is no different. New craft options, infusing coffee, chocolate and spices are ways in which brands are attempting to differentiate themselves and offer something original.
"In the spirits market, vodquila (vodka and tequila) offers a novel combination to consumers who increasingly desire unique experiences. We are also seeing larger, traditionally popular brands make slight changes to their classic products, which are proving popular among consumers. Strongbow Dark Fruit carries the name of a trusted brand, while offering new flavours to consumers seeking something different but who want to stick to brands they are familiar with."
Crafty brands
Meanwhile, 33% of drinkers liked sampling locally made products, contributing to the growth of craft beers and small scale, local breweries.
"Craft products made on a smaller-scale, usually local, are particularly successful across the alcohol market as growing numbers of consumers like to feel a connection to what they are drinking," said Allen.
"Larger brands should emphasize the care that has gone into creating a product, highlight the sourcing of ingredients and be transparent on production processes. Emphasising these positive points helps to alleviate consumer concern over a lack of quality in large-scale production.
"As consumers are increasingly seeking alcohol products which promote a sense of exclusivity, as seen in craft offerings where batches or runs are much smaller, big brands can defend market share through limited edition options, highlighting a sense of exclusivity and marketing their premium credentials."
Summer sun, Christmas cheer
25% of those drinkers willing to try different offerings would regularly choose a limited edition, seasonal beverage. For example, Kopparberg’s raspberry flavoured cider and Henry Westons’ mulled cider have increased in popularity, Allen said.
"The initial cost of reformulation and any alteration to production can put pressure on manufacturers, and they need to be sure that the benefits outweigh any costs," he said.
"However, it should be remembered that providing limited editions are often a great way to invigorate a brand, while allowing for a higher price point due to exclusivity and temporary availability. Ultimately, it can be risky to invest in new products and seasonal offerings, but many consumers respond well to these products."