Premium Yet Accessible: Some things you can learn from this company’s marketing strategy!
Fevertree Drinks Plc: How does this company position itself as a PREMIUM yet accessible brand?
Fevertree Drinks Plc, or Fever-Tree, is a British manufacturing company of premium drink mixers. It was founded by businessmen Charles Rolls and Tim Warrillow in 2004.
[Drink Mixers: Pertains to non-alcoholic ingredients in mixed drinks and cocktails.]
Some of the company’s products include:
- Indian Tonic Water
- Premium Soda Water
- Sicilian Lemonade
- Madagascan Cola
- Ginger Beer
- Bitter Lemon
According to the World’s 50 Best Bars Annual Report in 2016, Fever-Tree is the world’s leading premium mixer brand. As of 2020, the company has distribution networks in more than 75 countries.
What strategies does the company employ to strengthen its position in the drink mixer category?
- Capitalizing on Market Trends
According to Fever-Tree’s 2019 annual report, the trend towards spirits premiumization continues to grow
(Spirits = liquor that contains no added sugar and has at least 20% alcohol by volume)
The company benefits from the continued popularity of premium gin and tonic in the UK, Western Europe, Australia, and Canada.
This trend, which includes the emergence of the Spritz Serve and resurgence of the Moscow Mule in the US, reflects the opportunities Fever-Tree has to expand its market reach.
Fever-Tree assures consumers that it will continue to tell its unique brand story through these drinks and strengthen its position as a pioneer in the Premium Mixer category.
- Strengthening Distribution in Existing Markets and Identifying New Markets
Fever-Tree is ready to take on the world by increasing its reach in all of its markets!
In fact, the company is ramping up marketing efforts to tap into “Gin Renaissance” in the UK.
According to Saskia Meyer, Fever-Tree’s Marketing Director, the company is focusing on driving distribution, educating bartenders and pub managers, conducting events, and establishing partnerships with gin brands.
The London urban audience is a strategic market for Fever-Tree. In an effort to raise awareness about its products, the company uses out-of-home (OOH) advertising, placing posters in train and bus stations and other public places.
Do you think that’s all that the company is doing?
Of course not!
Fever-Tree is also “pioneering a new mixer category” with the tagline:
“If ¾ of your cocktail is the MIXER, make sure you use THE BEST.”
As stated in its 2019 annual report, since good quality ingredients were replaced by other businesses with cheap alternatives such as artificial sweeteners, colors, and flavors in the past years, the company encourages consumers to not settle for less in their mixed drinks.
In other words, buy Fever-Tree’s products because they are “the best!”
The brand also launched the UK’s first canned, all-natural tonic water, which was introduced to British Airways passengers in August 2015.
After seeing that there’s interest in premium mixers and tonic waters in the market, soft drink companies also joined in on the trend.
One example is soft drinks manufacturer Bottle Green, which recently launched its own tonic waters for mixing.
Clearly, Fever-Tree is pioneering a growing trend, seeing how other brands are following its footsteps!
- Extending Co-Promotion Strategies with Drinks Partners
The company continues to broaden its relationship with spirits companies not only to earn more profit, but also to demonstrate the value of co-promotion to both parties.
So far, Fever-Tree has conducted over 300 co-promotion activities around the world.
Some of these activities are:
- Co-branding with Patrón Tequila to create the Citrus Tonic Water
- Partnering with Caffѐ Nero for the Espresso & Tonic drink
- Coordinating with Bryant Park, Midtown Manhattan’s premier public space, to set up a Fever-Tree Porch—a store where people can unwind and enjoy a few drinks with their friends
The company aims to further engage in co-branded promotional activities to reflect its commitment in the drink mixer category.
- Innovating on New Flavors to Offer to Consumers
Fever-Tree operates with a mission:
“To combine the highest quality naturally sourced ingredients with expert manufacturing techniques to produce an unrivalled drinks experience.”
As a pioneer in the premium mixer category, innovation remains at the heart of the company’s strategy.
Commitment to sourcing the highest quality ingredients is crucial and every year, the Fever-Tree team travels to different places to meet with key suppliers and identify potential partners.
Part of the company’s innovation is extending the range of its ginger mix products such as the Spiced Orange and Smoky Ginger Ales, as well as launching a new range of sodas for the UK market.
Aside from that, Fever-Tree also plans to introduce a Sparkling Pink Grapefruit Soda in the US market. The mixer is made to be mixed with Tequila or Vodka, 2 of the largest spirits categories in the country.
As the company’s global footprint continues to grow, opportunities remain to ensure its products reflect the drinking habits and taste profiles of consumers all over the world.
As an independent, how can you apply Fever-Tree’s business and marketing strategies in your career?
- Capitalizing on Market Trends. As an independent professional, one of the keys to growing your business and excelling further in your field of work is being able to figure out how you can use existing trends to provide services to people. It’s not enough to simply know who your target market is and what their likes and dislikes are. You also have to be capable of weighing these factors and use them to your brand’s advantage.
- Strengthening Distribution in Existing Markets and Identifying New Markets. As part of the independent career, you have to establish good connections to help strengthen your pipeline strategy. Always be on the lookout for opportunities to serve your target market. Also, as change constantly happens, you have to be keen on identifying new markets that can help grow your customer base.
- Extending Co-Promotion Strategies with Drinks Partners. Just because you’re an independent doesn’t mean you have to be totally “independent”―working on your own. You still have to keep yourself open to collaboration opportunities with other independents. Doing so will not only help expand your brand’s reach, but also widen your network in the independent career.
- Innovating on New Flavors to Offer to Customers. Innovation is part of every successful business' strategy. If your goal is to grow your brand and establish a name for yourself in the career path you’ve chosen, you have to always push yourself forward. It’s in doing so that you’ll be able to keep up with the trends and the ever-changing business landscape.
According to Bill Ronald, Fever-Tree’s Chairman, the company was built on the belief that “there had to be a better way to not compromise or accept the status quo.”
This belief remains at the core of Fever-Tree’s operations to inspire and engage its employees, partners, and consumers in the pursuit of the best products and flavors.
That is why the company focuses on quality over quantity in everything it does, even if it means going to the ends of the earth to look for the highest quality ingredients.
After all, why wouldn’t Fever-Tree want to make the most out of its business?
As stated by Ronald, “Life is too short [for the company] to compromise [the quality of its products].”
Hope you’ve found this week’s insights interesting and helpful.
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Stay tuned for next Monday’s MicroBusiness Marvels!
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