Blog: Innovation - never a bad thing, even in failure
Olly Wehring | 14 June 2007
Innovation, the Holy Grail of the modern drinks company. Get it right and you'll have the next Bailey's on your hands. Get it wrong and you'll be pulling an expensive failure off the shelves quicker than you can say Tia Lusso.
Rather like English football's fixation with 1966, the way we in the drinks industry hark back to the launch of Bailey's says more about subsequent failure than past glories.
Launching a successful innovation into an industry as complex as ours is no easy matter, driven as it is by fickle, fashion-led consumers on the one hand and staunch conservatism on the other. And, Diageo GB's announcement today that it is to withdraw three of its products from the UK market is further evidence of this.
The company has said it will cease production of Quinn’s fruit ferment and the RTD brands Slate 20 and Archers Vea. The unit said the brands “have not met Diageo’s stringent performance criteria”, with demand being lower than anticipated.
Quinn's was launched amid much fanfare. Indeed, when the brand was unveiled in March last year it was Diageo GB’s biggest product launch for five years and backed by an GBP8.5m marketing campaign - an expensive failure then.
A company with the marketing clout of Diageo can afford to take these sorts of risks. They are risks worth taking, though, according to the UK-based giant. Innovation remains a hugely profitable area for the business and has contributed over GBP1bn (US$1.97bn) of sales value over the last three years in the beer, wine and spirits category.
The question of how smaller players in the industry keep pushing forward the innovation agenda is of course less clear, but given the rewards it's a quest that continues to be worth running.
A couple of months ago, US-based Saltwater Brewery developed 'edible six-pack rings' in an effort to curb threats to wildlife....
Last month, SPI Group unveiled its latest advert for Stolichnaya in the US. Its an amusing little number that caries the instruction: Drink what you want. The “I am man” ad looks to distance Millennia...
Who do you work for? I ask, merely to draw your attention to just-drinks’ company pages....
This weekend sees yet another “International Day” for a drinks category. Lucky us. Anyway, ahead of Sunday’s International Cachaça Day, here’s a wealth of information on Brazil’s national spirit, cour...
- Can craft breweries compete in lager arena?
- SABMiller's Q1 sales performance by region - Focus
- A Wild Geese, Pernod Ricard conspiracy theory?
- The Coca-Cola Co's Q2/H1 2016 results - Preview
- Remy Cointreau's Q1 performance by brand, region
- Diageo appoints new Smirnoff head
- Brown-Forman takes distribution in Spain in-house
- AB InBev halts VAIP incentive plan
- Gruppo Campari trials Negroni pre-mix
- AB InBev seeks single buyer for European beers
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends