Taking a brand across consumer or fixture boundaries can open up new space to grow.
There have been a number of brands this year who have not simply expanded into new categories, they have redefined the category they play in altogether.
Tetley in position 12 with a CRP growth of 3% was successful with Cold Infusions, their biggest innovation in several years. Although launched in summer 2018, the full effect is captured in this year’s data. While the black tea category, and hot drinks in general, are in decline, cold drinks are growing so this was a smart redefinition of the category in which Tetley operate. The intention was to retain their brand strength while appealing to new trends for a healthy, but flavourful, cold drink.
Tetley weren’t the only hot brand going cold with the continued growth of the cold brew trend. For example, Costa debuted a ready to drink can capturing part of the on the go market.
There was a marked slowdown in growth of coffee pods – which were in 18% growth in 2018 and only 4% in 2019. Perhaps helped by consumer concerns about plastic, we are now seeing an explosion of growth in coffee bags. This is another redefinition, with coffee brewed in a bag like tea. Taylor’s of Harrogate launched a new campaign asking why the idea hadn’t been thought of before.
Kopparberg is a classic example of a brand expanding into new categories with the launch of a gin line last year. As well as attracting new buyers to the brand, they have flipped the concept by actually taking their loyal consumers beyond cider and into the spirits. By launching two gins in their well-known cider flavours: Strawberry and Lime, and Mixed Fruit they were able to appeal to the 30% of consumers who prefer a sweeter taste. Both are designed to be mixed with lemonade rather than the more traditional tonic. The brand was launched in a ready-to-drink can as well as a bottle. The launch was so successful, it placed 8th in Kantar’s 2019 FMCG Innovation ranking.
