What’s nextfor NoLobrands?

Building on momentum

The ‘no and low’ alcohol sector has never been stronger in terms of product: there’s now a wealth of beautifully packaged, premium non-alcoholic drinks on the market.

These brands know their audience well – young, health-conscious and affluent – however there’s a job to do when it comes to reaching new demographics, challenging consumer perceptions and cementing brand loyalty through memorable experiences.

3

Where are the new legions of fans for my NoLo brand?

How can I form meaningful connections with new consumers?

How can I change preconceived opinions of my product?

01

02

03

Challenges

Where are the new legionsof fans for my NoLo brand?

Generation M

Over a third of Muslims today are under fifteen, approximately two thirds are under thirty and according to a study by Ogilvy they’re estimated to spend $2.6 trillion every year on Muslim lifestyle products. However when it comes to the NoLo drinks market, this non-drinking demographic is largely neglected.

In her book ‘Generation M, Young Muslims Changing the World’ Shelina Janmohamed discusses a growing group of ‘green muslims’ for whom Halal is not enough and ‘Tayyab’ (translation ethical and wholesome) is the new benchmark. They’re concerned with the whole supply chain, wanting it to be as sustainable and ethical as possible. Interestingly this is the same stance on production methods that many NoLo brands and their existing customers hold.

Thomson & Scott’s new alcohol-free prosecco is vegan, sustainably made and certified halal. By including the halal label, Thomson & Scott is taking a first step towards engaging Gen M. However, in order to form a meaningful and long-lasting relationship with a new audience,a label is not enough. It’s great to signpost a halal product, but where is the storytelling to go alongside it?

5

Shelina Janmohamed’s book Generation M is an extensive look at the young muslims shaping the world we live in.

Ecommerce platform, The Modist has understated, high fashion style nailed.

Ogilvy estimates that $2.6 trillion is spent on Muslim Lifestyle products every year.

Some sectors however are seriously investing in Generation M. The fashion industry is leaps and bounds above the rest; Yoox Net a Porter launched its biggest ever Ramadan initiative this year with a dedicated campaign of 17 exclusive capsule collections sold through trunk shows. While new ecommerce platform, The Modist, is dedicated to providing its customers with a modest yet highly fashionable wardrobe – it’s doing really well and was just bought by Farfetch.

Some say that this demographic is particularly attractive to fashion brands because they’re not fickle. Alia Khan, founder of the Islamic Design Council stated that, “what’s nice about this space is that you’ve got a loyal audience because they’re committed for a higher reason.” And in a climate where consumer loyalty is at an all-time low, that means quite a bit.

Don’t ignore modern motherhood

Another group often ignored in mainstream popularand consumer culture is pregnant and breastfeeding women.

The portrayal of motherhood has undergone somewhat of a major rebrand over the last year with celebrities at the height of their power like Cardi B, Kylie Jenner and Beyoncé taking ownership over their pregnancies and challenging the way the media portrays mothers. Many brands have yet to catch up. Furthermore, pregnant and breastfeeding women today are still socialising with their non-pregnant friends, and if they used to value premium alcoholic beverages, there’s no reason why they wouldn’t appreciate a non-alcoholic alternative.

Cardi B was anything but the demure mother during her pregnant Coachella performance last year.

“People are more open to new brands when embarking on a life-changing moment.”

Richard Shotton, Behavioural Science Expert

Unlike other consumer groups, this group’s members are transient. But rather than being a problem, brands should see this as a marketing opportunity.

As Richard Shotton discusses in his book, ‘The Choice Factory: 25 behavioural biases that influence what we buy’, people are most open to try new brands when embarking on a life-changing moment – what’s more life-changing than having a baby?

Reaching out to new consumers during this important life phase makes sense. And if you engage them successfully during pregnancy, there’s no reason why they wouldn’t become brand advocates post-baby as well.

Richard Shotton’s book ‘The Choice Factory’ examines 25 behavioural biases that influence what we buy.

6

7

How can I form meaningful connections with new customers?

Create experiences with value

Dua Lipa, Singer/Songwriter

All images: Our project for Jaguar Land Rover saw the automotive giant collaborate with Dua Lipa to launch the new I-PACE vehicle. The experience- empowered consumers to create their own remix of the singer’s latest single.It is now the most remixed song in history.

“It’s crazy to think that the data fromx my drive in the electric I-PACE canx alter the energy of my music to createx a totally new and incredible sound.”x

8

Many NoLo products excel when it comes to craftsmanship, sustainability and beautiful packaging, however brand storytelling and retail experiences have not yet caught up with the excellent product. The time is ripe for these new companies to tap into the unique power of experience to drive both awareness of and preference for their brands.

To stand out in a sea of competition and win the attention of information-overloaded consumers, brands should harness the power of experience to craft moments that leave a memorable impression. Especially so for the inherently sensory sector of food and beverage, bound up as it is with socialising, relaxation, travel and life’s biggest celebrations.

In order to help Jaguar Land Rover reach a younger, European demographic, we created ‘The Pace’, an experience-driven campaign that partnered with singer-songwriter Dua Lipa. This involved developing bespoke software that enabled users to create a personalised remix of Dua Lipa’s latest single ‘Want To’ by driving the all-electric I-PACE car.

To further drive campaign efforts we empowered music fans around the world to create their own version of Dua Lipa’s song. This personalised, fun and relevant experience is perfect for fostering a deeper connection between Jaguar Land Rover and its new consumers. Collectively, this magnified a fully integrated campaign and delivered substantial longer-term impact by creating the most remixed song in history.

Build yourself a home

It would be hard not to have noticed the rhetoric around brands and the value of experiences over product.

‘Experience’ was predicted to be the next economic stage of value as early as 1998 by B. Joseph Pine II and James H. Gilmore in their seminal book ‘The Experience Economy’. They concluded that future companies would need to create “distinct economic offerings” and “engage individual customers in a way that creates a memorable event.” This is exactly the ethos that has underpinned Imagination for the last 50 years.

Building a permanent space that blends retail with experience allows customers to fully immerse themselves in that brand’s world, helping to forge a deeper connection between brand and consumer to drive venue. We did just this with the home we built for heritage whisky brand, Old Forester in Louisville, Kentucky. Original, exciting and accessible, this space is rooted in the brand’s heritage and brings to life the whisky-crafting process by incorporating fermentation, distillation, a cooperage, rick house and bottling line all under one roof.

Of course, a NoLo brand won’t be creating an experience based on heritage, however the same sense of drama, spectacle and focus on brand storytelling that we created for Old Forester is just as relevant. Ultimately any truly immersive experience needs to take visitors right into the beating heart of the brand and leave each one with unforgettable memories.

Paul Varga, CEO Brown-Forman

.“You have to see it tob

.believe it.”x

All images: Our work for Old Forester sees the brand return to its spiritual homeland in Louisville, Kentucky.

How can I change preconceived opinions of my product?

11

Showcase your craftsmanship

In order to justify this spend, brands need to highlight the craftsmanship that goes into creating each product and emphasise the premium taste – the same robust, lingering quality you get froma sip of alcohol.

Dan Gasper, Chief Operating Officer at Distill Ventures refers to the ‘sip not gulp’ challenge and says, “a successful virgin cocktail should have layers of flavour that encourage the drinker to sip and contemplate, not down their drink. The drinks industry should avoid franken-drinks’ with e-numbers and chemicals to enhance flavour.” Brands needs to stress that non-alcoholic beverages are a grown-up, premium and considered choice, and not in the same category as a fizzy drink.

A similar educational challenge faced our client Patrón, whose product was not recognised as an ultra-premium tequila. We needed to show that while Patrón is mass distributed, it is not mass produced and is an ultra-premium tequila. The Patrón Aficionados pop-up programme hosted mixologists, store owners and bartenders across the US, and educated them on Patrón’s artisanal production process. Most importantly 80% of visitors had an improved perception of Patrón.

80% of the visitors had an improved perception of Patrón.There’s a job to be done when it comes to educating new audiences

on the value of a NoLo beverage - why spend the same amount ona non-alcoholic gin as someone would on the ‘real’ thing?

All images: scenes from the Patrón Aficionados pop-up.

Influencers really do have influence

For brands wanting to reach a new audience, connecting with influencers and partners that resonate with that audience is key.

This goes beyond a sponsored Instagram post or Facebook ad. In 2017 we helped introduce Major League Baseball to an untapped, young European demographic through a series of events called ‘Battlegrounds’. This summer we’re building on the success of Battlegrounds with a MLB festival in East London.

For this experience, collaborating with the right partners and integrating influencers is key. In order to attract the desired audience, MLB has partnered with the likes of Sony Europe, HighSnobiety, NTS Radio and Champion. There will also be a number of sports influencers taking part in a VR batting experience called Hit Tracks, which will be livestreamed on Twitter.

80% of the audience at MLB Battlegrounds was below the age of 34.

(Above) Sony music artist, Lady Leshurr, will be one of the performers at MLB London Yards Festival.

(Below) Our MLB Battlegrounds experience in 2017.

NTS radio will provide music throughout the three day event.

There’s a wealth of potential when it comes to attracting new consumer groups through shifting perceptions and harnessing the power of experience – but who will be the first alcohol-free brand to capitalise on these opportunities?

The time is ripe for these companies to tap into the unique power of experience to drive both awareness of and preference for their brands.

At Imagination, we have extensive expertise in the traditional drinks and premium sectors, which can be readily translated to alcohol-free brands in imaginative, engaging ways.

If you want to discuss the challenges featured in this report and find outhow we can help create solutions for your brand, we’d love to hear from you.

talia.smith@imagination.com+44 (0)7776 302402

So, what next?