Building Sustainable Growth For N/A Breweries
Setting an N/A beer brand up for success is more than just brand positioning, and requires a balanced approach with long-term thinking.
In December we highlighted four ways producers could differentiate their N/A beer brand. Brand positioning in an increasingly crowded market is critical to success, and as we suggested then, carving out a unique space in the market will at least give N/A consumers a reason to stick with labels that resonate with them, even as other players may come into the market. Today we focus on going beyond the brand, with four ways N/A beer brands can carve out a sustainable path for growth into the future.
Distribution, distribution, distribution
We’ll start with the obvious one. Distribution is important for any product or service, as accessibility to the end consumer is necessary to be successful no matter what you’re selling. For N/A beer companies, one could argue it’s critically important. At the current stage of the market, many N/A buyers routinely purchase directly from the brewery producers themselves, or in some cases, through intermediary e-commerce sites. E-commerce is not going away anytime soon and has its place, and brands should have an e-commerce as well as an Amazon/3rd party strategy to leverage online sales. That said, at least some portion of these sales are being driven by the relative lack of options at the brick-and-mortar level. Sure, there are notable exceptions such as Total Wine & More, which if you’re lucky enough to live in a market that has one, can be something of an N/A mecca. Grocery and liquor stores are slowly coming along with their N/A beer selections, and the explosion of alcohol-free bottle shops, particularly in larger urban areas, are also extending local purchase options. But long-term, as local stores devote more and more shelf space to N/A, the greater selection may make those expensive shipping fees tougher to justify, which will only enhance the importance of strong retail channels for N/A brewers that don't have the same margins that exist in AF spirits or de-alcoholized wines.
Get Consumers To Sample The Product
One could argue that N/A beer, perhaps still stained by its less illustrious past in the pre-craft era of existence, is held to a higher standard than the category’s ‘leaded’ counterparts, or at least viewed somewhat more suspiciously. There’s a taste bar that has to be cleared for many to feel comfortable purchasing non-alcoholic beer, exacerbated further by the e-commerce barriers that exist today. This is somewhat of a double-standard, as many consumers won’t think twice to pick up a six-pack of a new ‘leaded’ craft beer, even if they haven’t tried it or know anyone else who has. While today’s N/A producers are proving that good N/A brews can come in many styles and from multiple brewing methods, for at least the foreseeable future sampling is so important. We have seen brands putting more time and resources into sampling efforts, whether that be at grocery chains, AF bottle shops, or at local road races, and many report seeing a direct correlation to sales. We have personally witnessed tastings in AF bottle shops where someone will exclaim, “this tastes just like beer!” which shows that even in an alcohol-free environment, consumers may still need to be convinced an N/A really has the goods.
Create Great Content
The good news about content is this is one area many brands are already doing a good job in, particularly on Instagram. But great content doesn’t just exist in well-produced Reels and Stories, and should be considered in other channels where brand engagement is taking place. A good recent example is Athletic Brewing Company’s Track Record, a mechanism for keeping track of sober days during Dry January. Sure, to be fair Athletic has a budget for such things that many other craft N/A producers would love to have. But the stickiness of a feature like that is undeniable, and great content doesn’t have to be an expensive mobile app. It can be creating fun promotions building off of lifestyles and activities that go hand-in-hand with drinking a beer, only substituted with an N/A. Wherever N/A brands can insert themselves into situations where their consumption feels natural, it creates frictionless experiences. These efforts can also be low tech, perhaps incorporating willing retail partners like the AF bottle shops who are trying to reach the same consumer.
Develop Your Digital Presence
Establishing a digital footprint is an often-overlooked method to help N/A breweries stand out in the long-term, and again it needs to go beyond Instagram. The latter is great at finding those already open to the category, and creating fans by allowing brands to showcase a little personality. But the real work is in finding new customers who may not be looking for N/A today, but will be tomorrow. Part of this is shoring up content on a producer’s own website, which should include ample messaging to communicate the brand positioning, as well as attempt to build a relationship with the consumer in other ways, such as through email marketing. N/A breweries can use digital to find out more about their customers, like what styles of beer they prefer, which can prove useful when marketing new options down the road. Digital strategies like these can also extend offsite through paid media programs, expanding reach beyond just those who find a brand on their own or through regular social media. Lastly, organic search, or search results that you don’t have to pay for, can establish a presence for when people may be Googling to learn more about N/A. Want to be known for a particular style of beer, or be seen as the preeminent N/A producer in a given location or region? Then creating digital content that will allow a site/brand to rank highly in search results for people searching those terms will pay dividends in the long run.