There is a prevalent trend growing within the spirits industry; and that is brands diversifying their product lines. With consumer tastes consistently evolving, it is becoming increasingly important to find new ways to ignite interest in your drinks offerings. The spirits industry is capturing consumer tastes and imaginations with seemingly endless new innovations, creating new experiences at every corner, no matter what your tipple of choice may be. It’s time to diversify.

Elemental Expansion

Elemental Expansion

The reason diversification is so vital to a modern spirits company is constant changes in consumer tastes and trends. People wanting to try something new and broaden their horizons is more important than ever with the rise of the ‘at home consumption market’, with 61% of consumers stating that they would try a new flavour of spirit if a friend recommended it. To remain in high demand with your current consumers and appear attractive to new ones, creating new additions to your product line is the way to go.

What is product diversification?

What is product diversification?

Product diversification is expanding your existing product line in order to further target existing customers with new products or attract new customers who did not previously engage with the brand. Diversification is also useful to a brand to aid it when sales decrease or stagnate within an area of the business. Having additional offerings for your consumers to buy into can be what keeps you afloat when trends tip in a new direction.

Companies can look to utilise either vertical or horizontal diversification methods.

Horizontal Diversification

Horizontal Diversification

Horizontal diversification involves expanding into products new or unrelated categories but targeting the same consumer group. This could include a gin company expanding into products such as whisky, vodka and rum. But could also offer opportunity for brands to move into entirely different sectors such as ready to drink and wine. There can be more risks involved with this due to the need to develop new skills and purchase new equipment but the rewards of breaking into new market sectors can be enormous.

Vertical Diversification

Vertical Diversification

Vertical Diversification involves expanding into products that are similar to your original product. For example, a gin company may diversify into no/low alcohol variant, flavoured gin, or gin liqueurs. Vertical diversification is relatively low risk as the distilling processes are already known by the company and existing consumers will be highly likely to buy into the new products.

Tremendously Tantalising Tipples

Tremendously Tantalising Tipples

The spirit’s market is quickly and consistently changing, so it’s important to partner with suppliers you can rely on. hy phoenix specialises in bringing prestigious brands to life. We work with brands to develop distinctive designs that reflect your message and give a competitive edge in the market. We aim to elevate your brand image with prestigious, striking glass to match any new innovative products you develop.

A fantastic way to differentiate any new product line you may wish to expand into is through the use of decoration, whether it be coloured glass, screen printing, or applying water transfers or badges, these are all techniques hy phoenix specialises in. You could for example create a beautiful collection of flavoured gins classified by a rainbow of striking bottles and hy phoenix's experts are here to help guide you through the process.

Currently, there are endless opportunities for innovation within the spirits category. If you are looking to diversify your brand, our experts at hy phoenix would love to explain how our glass manufacturing capabilities can help you.   Get in touch today.