A decade ago,
“With so much innovation happening in this space, how do you even begin to pick the winners?” Scott Uzzell, president of
Uzzell spent nearly a decade at
In a rapidly evolving industry, navigating the journey is more complex and challenging than ever. At BevNET Live 2017, Uzzell described the current beverage innovation frontier, sharing a few insights into how small companies can compete and how big companies like
Here’s what we learned:
1. Be a Futurist
VEB doesn’t just look at current trends to figure out what consumers want. The team investigates where they think consumers will be in 2025, in part, by keeping tabs on the entrepreneurial community. While half of those insights may not pan out, Uzzell said maintaining a forward-looking point of view is critical.
“Having a good pulse on where the entrepreneur is going helps us really figure out where the future will be,” Uzzell said.
In today’s market, that’s vital. Uzzell said that beverage categories valued under $1 billion, which often aren’t captured thoroughly in industry data, are growing at eight times the rate of big categories. “Probiotics, health… new takes on water,” Uzzell said. “Every time I think I’ve seen it all, another exciting category emerges.”
Coca-Cola is well-known for its soft drink portfolio, but the company has been investing in new categories for years. In 2011, VEB acquired Honest Tea after buying a 40 percent stake in the company in 2008.
“We know we’re just scratching the surface,” Uzzell said.
2. Don’t Kill the Magic
Uzzell said the sweet spot is “just enough to help support the growth of the brand, but not so much that it kills the magic of the small company.”
Properly nurturing brands also means building capability, Uzzell said. What makes
Boosting startup brands also means reaching consumers in channels where healthy engaged consumers (HEC) shop, such as e-commerce, natural channels and farmers’ markets.
“What we’re seeing is that it’s no longer one channel that’s driving that innovation… customers across the U.S. are getting in the game of what’s next,” Uzzell said. “We’ve got to figure out also how to play in these emerging channels—all these different ways innovation happening in the room.”
3. Know what you want to achieve
Many beverage brands that have exploded in popularity in recent years had a clear identity and mission from the start. For example, fairlife’s success can be attributed largely to its founders’ sustainable farming values and drive to disrupt the sleepy dairy category with an innovative and delicious line of ultra-filtered milk products.
Goldman, meanwhile, made Honest Tea a household name by starting with an authentic, enduring mission of quality, health and sustainability. And ZICO was hyper-focused on yoga fanatics and endurance athletes until it became a recognizable brand in a category that many Americans had never tried before.
New, exciting brands continue to emerge. As growth continues in the industry, said Uzzell, VEB will continue doing one of the things it does best: making great brands even greater.
“We also are in awe of the founders and entrepreneurs...that all have a vision and can change the world,” Uzzell said. “Who knows what the big idea is? As long as markets follow the consumer and partner with the right people, and learn as much as we can along the way.”
More on Journey
- Our Way Forward: How We're Keeping People at the Heart of Our Business
- Coke’s Way Forward: New Business Strategy to Focus on Choice, Convenience… and the Consumer
- AHA to Bring More Fizz, Flavor and Fun to Coke’s Sparkling Water Portfolio
- Coca-Cola Collaborates with DIESEL for Capsule Collection Created from Recycled Materials
Priming the Innovation Pump:
Coca-ColaDebuts Diverse Lineup of New Drinks at NACS