If you are a craft distillery founder or start-up brand owner, a common crossroad you will face at some point (assuming you are looking to grow) is whether to create a brand extension when entering a new spirit category or launch an entirely new product line.
A distillery’s approach to branding can significantly impact how new products are received. Whether it’s more strategic to release under an existing name or start anew is a dilemma and not one to take lightly. Moreover, if we’re being entirely honest here – making the wrong choice has killed off many projects before they’ve even hit the shelves.
In this article, we’re going to delve deeper into the topic, and look at various angles to explore the subject matter before reaching some key conclusions.
Where does brand strength lie? Distillery vs. Product
Distillery-Centric Branding:
If your distillery’s name carries weight, credibility, and a sense of place and tradition, then it can be a powerful umbrella under which various spirits can reside.
This approach is commonly seen with distilleries that emphasise their unique geography, water source, aging techniques, or heritage. In such cases, consumers are buying into the ethos of the distillery itself, making it easier to introduce new spirits without diluting the brand.
Often those who pursue distillery centric brand identities do so from the start, building reputation for the distillery, not just the bottling / spirit type they release. If you haven’t, it’s not impossible to build back towards this, but it will take time so factor that into any imminent strategy decisions going forward.
Assuming you have – here’s the key consideration:
How well do consumers resonate with your distillery’s story? If there’s a strong attachment, you’ve got a good reason to leverage that narrative when introducing a new spirit. If they don’t, can you build something that truly links al the products you plan to create in an authentic and easily understandable manner?
Most like to think they do, but get some honest feedback and you’ll see that it might not be as potent nor as identifiable as you believe…
A good example of distillery focussed brand identity and this “umbrella” approach is Cotswolds Distillery. They make Gin, Rum and Whisky all under the “cotswolds” name. They are completely different spirits, but are all tethered together by a distillery first (namely provenance) approach to comms, positioning and target audience.
Product-Centric Branding:
Here, the focus is more on the individual product and its unique branding elements. The distillery might take a backseat, only mentioned in passing or used to validate the product’s authenticity. In these types of brands, the distillery tends to be mentioned to show transparency around where something is made. There’s nothing to hide, but it’s not the focus.
With a product centric brand building approach, each category can have its own narrative, values, and target audience, granting flexibility to craft distinct brand worlds. Because of that – most time you see a brand extension, it’s for products within the same spirit category.
Key Consideration: If an existing product has a very strong, niche brand identity, introducing a radically different spirit under the brand same name might confuse consumers. In such cases, a new brand world might be the way to go.
In other words, if you haven’t built a product range under a distillery umbrella, and it doesn’t work as part of existing spirit brand you’ve created (probably because it’s a different spirit category), you’ll need to start a new line, with it’s own look and feel.
A good example of product centric branding is Southwestern Distillery, who make Tarquin’s Gin, Twin Fin Rum and Connie Glaze Vodka. Each spirit has a completely different look and feel and while they make it clear who is behind it and how they share similar values – the emphasis is on each having it own visual identity and to a certain extent, tone of voice.
How to differentiate category offerings while linked to parent distillery:
Branding isn’t just about names and logos; it’s about perception and emotional connection. There is no one-size-fits-all answer to what will work in any given scenario. It’s a nuanced decision that should align with the brand’s strengths, market perception, and the stories waiting to be told.
Distilleries who take an umbrella approach can use this to their advantage when working with products that sit in different categories – say Rum and Brandy.
- Shared values, different stories:
A distillery can present a consistent set of core values (e.g., craftsmanship, sustainability, location) that resonate across all products. Each product can lean towards one of these more strongly and align with the values that really resonate with that spirit or target demographic. This allows consumers to understand the slight differences between them while still feeling like there is a cohesive, coherent the parent brand. - Clear labelling and design:
Visual differentiation can go a long way. If a gin and a whisky come from the same distillery but are marketed separately, their design elements can be quite distinct without the risk of alienating drinkers. Most see different spirit categories in very different ways. It’s only when you get expression from the same category bottled in multiple design looks and formats that it becomes problematic for consumers to recognise that they are all part of the same range. This allows distilleries to tilt the aesthetic towards category expectations and norms without too much risk. - Tone of voice:
While core values might remain consistent, the tone of voice can differ based on the product’s target demographic. A vodka, often associated with lighter, refreshing profiles, might have a playful, energetic brand voice. In contrast, a cognac, might find it better resonates when adopting a more mature, contemplative tone. They might come from the same place and can speak about the same big idea, but the way you say it doesn’t have to be the same. (See our article about Tone of Voice for more on this)
While the above works for a distillery centric umbrella approach to product ranges, the same can not be said for a brand-created approach. None of the three points can be easily applied.
In that circumstance, it’s best to weigh up the pros and cons of either creating a brand extension or starting afresh.
Pros & Cons when creating a brand extension
Let’s explore the idea of either doing a brand extension or starting a new brand by using a hypothetical gin maker eager to try their hand at rum or whisky. Should they bask under the familiar shade of their established name or venture out under a new banner?
The advantages of using the same brand name are clear. Launching a new rum or whisky under an established gin brand name can bring immediate attention. For the consumer, there’s a certain comfort in sticking to what’s familiar and who they trust, even if it’s a different spirit category.
Moreover, your gin might have taken someone on a memorable journey, and that emotional connection can work wonders when introducing a new product. Trust is invaluable in the spirits world, and an existing brand can assure consumers of the quality and expertise behind the new offering as they trust in the distillery team who made it. Why wouldn’t they try the new rum / whisky?
On the down side, there’s the potential to dilute the brand identity and make both suffer.
A brand often carries with it specific associations and values. A contemporary gin brand might be known for its progressive use of botanicals and innovative releases. Introducing a classic, traditionally made whisky under the same name could dilute what consumers have come to expect.
Different categories, different rules
Meanwhile, different categories have different rules and different ways of being perceived.
For example in rum, the bulk spirit is often imported and blended, not made at the distillery. This can be perceived in many ways – both negatively or positively. In this example, while this might be a common practice for Rum to import and blend, to the distillery’s existing gin consumers who’ve come to expect everything is made in house, this might smack of inauthenticity.
A producer should be sure their values align in both categories before cross pollinating. They should also understand the importance of clear messaging around the differences too and not infer something unintentionally.
There’s also the potential lack of relevancy to new target demographic.
While gin enthusiasts might be eager to try a new product from their favourite brand, whisky or rum drinkers are an entirely different audience. You might not have much problem converting existing fans into trying something new. But you may struggle to appeal to those coming at it from the other direction…
Distilleries and those in the drinks trade systematically underestimate how tribal drinkers can be.
A new rum under a gin brand might not resonate as deeply with rum aficionados. They might view it as an inauthentic evolution for a distillery looking to cash in on the next trend, or simply not catered to their tastes at all. Let’s look at our working example here. Botanical Rum, as a concept has failed to take off as a term despite the big names pushing it. Rum drinkers seem reluctant to embrace gin messaging.
This might seem cynical as a suggestion, and even potentially a slight on rum drinkers. It’s not meant that way at all. For example, the reverse has been true when some whisky distilleries launched a gin to create cash turnover while they wait for stock to mature…
Drinkers are clever and know what’s being churned out and what’s a passion project. There is a reason certain messages and ways of communicating work for certain categories more than others.
Factors to consider when making a decision between a new product line or a brand extension
Consider the following general rules before you pick which direction to go in. They will help inform whether you should continue with a distillery centric branding approach, add a new line in a product range or start afresh with a new brand name and aesthetic for the next release.
- Brand perception:
Understand how your brand and / or distillery is currently perceived. If it’s seen as versatile and innovative, a new spirit category might be a welcome addition. But if it’s firmly entrenched in a particular niche, branching out might be met with resistance. - Market research:
Dive deep into the demographics. Understand the overlap (if any) between your existing customer base and potential new spirit consumers in another. Are they likely to be intrigued by your new offering or dismissive? - Consistency in quality:
Can you ensure that your new spirit maintains the same level of quality that your customers have come to expect? It’s not just about trading on an established name; all products have to deliver and further your reputation. You can’t be excellent in one and mediocre in an other. - Storytelling:
Every spirit has a story. If branching out, can your gin’s tale weave seamlessly into that of your new rum or whisky and vis versa? Or does this new venture deserve a narrative of its own? - Financial implications:
Establishing a new brand comes with costs: new branding, marketing campaigns, awareness drives and consumer education. But a poorly received brand extension could cost you in customer trust and brand reputation… How much can you afford to put on the line?
How to pick?
Whether to create a brand extension or establish a new product line is not a decision to be taken lightly. Both paths have their merits and potential pitfalls.
Many distilleries who have built some of the best and biggest brands in the world have got it wrong. It’s cost them money, repetitional value and even killed off entire future expansion plans. When they’ve got it right through – it’s been the key factor in becoming household names.
Your strength lies in your connection with your audience. So, as a craft distillery, and for whichever path you choose, ensure that it resonates with your brand’s core values and the stories you wish to share. To be embraced it all has to be cohesive and authentic.
