The Art of Craft Beverages
Can craft end up being crashed and smashed by the big business?!
At first, I was sceptical and really didn’t think this new product would take off. I remember telling my colleagues after our first meeting with the client that it was not going to work and that they were wasting their time. I’d seen it before time and time again. A garage operator perfecting their craft product like it was going to take over the market. They had a great product, no doubt, but how were they ever going to get enough people to buy into this product when it was essentially the same as every other product like it on the market. Big business would crush them before they even knew it was happening to them.
I’d seen this sort of thing before, but craft beer was different from this. In an already established craft spirits industry, I knew a player who was operating out of the same space as a child’s day-care or after they upgraded from what little room they had in their garage. Distilling craft spirits in the evening, and maybe having a spirit tasting with an A-Team of toddlers after a long night in front of their semi-commercial stills.
Now, I am not sure which authority or regulator gave them permission to set up a distillery in the same building as a kindergarten. At the time, it seemed ridiculous, but I watched as these team of dedicated craft distillers took that business from a small-time craft house with a single still, through to being a globally awarded brand with a loyal army of cult followers.
Not bad for a small-town team, that started their brand holed up after-hours in a day day-care centre.
In an effort to bring something new to the market, these guys had teamed up with a craft gin manufacturer, and they had decided to approach the team at TOSLA with an NPD challenge.
So imagine this!
You don’t really drink gin. You are not an expert in the production methods, variations, tasting notes, subtleties and nuances but you need to hold your own socialising with a group of uber cool craft-preneurs as they have come to you for your guidance.
You set up a meeting, and as expected a small group of very eclectic looking entrepreneurs walk into your office, sit down, and already make you feel like you are out of your depth.
A few polite introductions and a small amount of time establishing who is who, one of them explains with enthusiasm “We want to make TONIC WATER!”
After a well-rehearsed explanation of how craft tonic water is a logical progression in their R&D and product trials, and after the success of their craft beer and craft Gin products, I am still a little dumbfounded.
I remember trying my best to hide the scepticism on my face. I can usually hide my cynicism on the phone or over email, as my initial gut reaction to people’s ideas have been proven wrong on many occasions. I’m no oracle. Just a guy who thinks he knows his market.
At the time, I had no idea how they had come up with this. I did not see the relationship between beer, gin and tonic water. After taking a moment to realise just how serious and excited these guys were, I started to feel a little stupid and considered that maybe I didn’t at all understand the world of the craft beverage market. And I was right, I didn’t.
Now after some time continuing to work with this craft team, it started to make a little more sense. However, I still couldn’t shake the image of the big corporates absolutely crushing them when it came time to bring the product to market. Think Godzilla smashing through the city of Tokyo on a rampage to crush the dreams of these small-time craft guys. It was extreme. Check it out here.
“This is exactly how they are going to end up being crushed and smashed by the big brands,” I thought for myself, but I ended up being very very wrong.
After a few months of collaboration and making sure we had a strategy in place to give these guys the best chance of success, or in a worst-case scenario the least chance of them taking a major hit to the brand, the product hit the shelves. We did everything we could to ensure the product was unique, well branded, aspirational and that the target market (mostly hipsters and trendsetters) would be gagging for more.
When I think back now, and consider all of the time, effort and industry knowledge that went into this product, I now realise I was letting my scepticism take over. This might have been because my passion for “craft” and the industry’s “collaboration not competition” mantra had not been fully absorbed into my mind, or how I approached the market. It is a very different mindset that what I had been used to dealing with big business and major players in the food and beverage space.
And I can tell you now, the craft product mindset is contagious. Being a part of this collaboration, to produce a craft tonic water of all things expanded my knowledge and perception of what a great product idea is, and exactly how you can take that idea from concept to reality.
One thing I’ve learned is that those entrepreneurs with a passion for their craft products have more dedication, enthusiasm and grit than any product manager for big business I have ever worked with. It’s not only their product but their mindset that gives them the best chance of succeeding in an impossibly competitive market. Passion over product is the key.
It is now many years later, and the craft boom across a range of industries has well and truly taken hold. Craft beer sales are growing so quickly, that nearly every other food and beverage manufacturer is starting to worry about the power that an army of passionate craft professionals are going to have on their markets and their margins.
Craft production is about experimentation, passion for perfecting the product and is the complete opposite of how big business manages their ranges. Its a dedication to quality over quantity. Uniqueness over utility. It is born from a genuine love for what you do, and the consumer is starting to understand that the foods they consume should be made with passion, not pumped out of a stale and emotionless factory with the sole goal of sales and profit.
And in the craft industry, players in the market see each other as comrades rather than competitors. They are there to support each other, as the stronger they are united, the better chance they all have collectively to compete with the corporate giants.
Its an army of artists, living their passion, and it is inspiring to be a part of.
My writing is based on true events and stories. It is as real as it gets. I changed parts of the stories and excluded real names as I don’t want people to get hurt. But most of the stuff I write is authentic and includes my personal thoughts and feelings.
