Alcoholic beverages find added value in packaging

At the end of 2015, Canadean added the resources of Datamonitor's consumer business to its portfolio. This included Pack Track, which provides an overview of thousands of the most innovative consumer packaging launches from around the world, with breakdowns of their unique features by a team of packaging experts. Packaging Today will be supplying top line information from these sources to our readers across 2016. The first of these supplements will concentrate on alcoholic beverages.

A category-specific supplement series, Adding Value through Packaging features recent consumer product launches that use innovative pack formats and value-added features in order to improve consumer convenience and differentiate products in a crowded marketplace. Canadean has identified new packaging developments within the category. It discusses the special features and benefits of examples we like, and how they fit in with current consumer trends, within Canadean's TrendSights framework.
The dynamic and saturated market of alcoholic drinks represents a constant challenge for brands to stand out among myriad new offerings, and to keep up with evolving consumer behaviours. Packaging can be a powerful tool as manufacturers' strive to win consumer attention and loyalty, and can help to achieve differentiation on various levels.
Firstly, a consumer's choice of alcoholic drink often reflects their lifestyle choices and is a way for them to express themselves, which creates opportunities to give them something unique to identify with. Spending money on alcohol is also dictated by the occasion, and identifying the right formats to fit consumption occasions should be high on alcohol manufacturers' agendas.
On the 'unique proposition' front, recent years saw the launch of 'one-of-a-kind' editions of Absolut vodka, and a campaign from Carlsberg-owned Baltika with 990 names of cities printed on its beer cans. Conveying the message of uniqueness and getting consumers to interact with the packaging, these items created emotional ties and drove brand loyalty.

Percentage relevance of three key drivers of premiumisation in alcoholic drinks (2015)

1. 46% A special occasion
2. 28% Limited-edition product
3. 26% Functional packaging

Smaller packs: the way forward?
While packaging design and presentation are of utmost importance when trying to attract new consumers, a lot can be achieved by simply getting the size of the packaging right. With alcohol, reducing the size of packs can be a way of opening up new consumption opportunities and enticing alcohol-shy consumers, to drive sales. The success of Heineken's slim 8.5fl oz can in the US attests to this.

The small serving size may appeal to consumers that are looking to reduce their alcohol consumption but still like to treat themselves, in line with Canadean's predicted moderation and avoidance trend. With 59% of global drinkers paying high attention to ensuring they do not drink too much alcohol, and 40% paying high attention to potential weight gain from drinking alcohol, it is not just the ABV content that can be reduced to meet demands, but also the size of each pack.
Smaller and single-serve packs extend consumption opportunities to new social occasions, turning beer into an unlikely aperitif, and allowing alcohol to be served at outdoor events and entertainment venues. Lower price points achieved by the reduction of pack unit size also make alcohol brands accessible to wider audiences.

Health considerations aside, smaller cans and bottles also mean drink is less likely to go warm before it is consumed, and will stay cold and refreshing - something that Heineken capitalised on while promoting its new slim cans in the US.
Reducing pack unit size of alcoholic drinks adds value to their proposition, rather than diminishing it. Smaller packs often appear more elegant (and more manageable) to female consumers, infrequent drinkers and those in single-person households.
In Italy, for instance, Heineken beer offers a mini 150ml bottle that extends consumption opportunities for the Heineken brand, suggesting it to be consumed as an aperitif. Adverts for the mini bottle feature people drinking in situations not usually associated with beer drinking, such as at the opera or a fashion show.

The tall 157mm Steinlager Pure beer, in Australia, uses its slimline pack to facilitate stylish sharing: its tall profile gives it a sleek, elegant appearance that's easy to hold. Dos Equis XX Dos-A-Rita margarita-flavoured lager from the US, meanwhile, offsets its high alcohol content with the smaller size of its can. A shorter height means the cans fit comfortably in the hand, and the compact multipack is small enough to fit more comfortably in a refrigerator.

Highly tactile

When it comes to the sensory aspects of packaging, it is not just the visual side that needs to be considered. Packaging needs to stand out on many levels, and an increasing number of alcohol manufacturers are going for texture and tactile decoration to achieve this.

Embossing, raised varnish and moulded details can be used to leave a strong impression, creating a memorable tactile experience of a particular brand or product. Tactile details further raise the presentation level of packaging and make it appear more premium. Adding texture also improves grip, which is important for drinks consumed straight from the packaging.
The UK's Camden Hells lager makes use of a rough texture in its label, achieved through a varnish pattern. The tactile attribute is immediately obvious on touching the pack and takes the user by surprise, ensuring the brand will be recognised the next time the consumer buys the product. The rough texture also gives a non-slip finish that allows a good grip on the pack.

Miller Lite lager in a grip can (US) similarly uses raised inks on the sides of the can to improve grip, which is particularly suitable for the larger-than-usual 700ml can. The can's raised varnish also effectively imitates the texture of an American football, which works well with the graphics to establish a strong football connection.
In Latvia, Amber Gold vodka communicates its main selling point (being filtered through Baltic amber) clear immediately on its front label, with a high level of embossing and texturising to make it appear like a piece of amber. Ripple shaping on the front of bottle further adds to the multisensory appeal of the pack.

Similarly, Yaz Zolotoy vodka uses a prominent raised label texture that mimics fish scales, tying in with the brand's name, which means "ide fish". The back of the bottle features a moulded image of the ide fish. These textured areas not only enhance brand identification and the bottle's premium feel, but they also make the bottle easier to handle, preventing it from slipping from one's hands.

The decorative bottle of Axelvar Swedish premium vodka has good gift appeal and ensures it makes an attractive addition to a party table. A clear, raised varnish is applied to small areas of metallic ink printed on the label, to create a three-dimensional diamante effect.

Feeling flexible
While rigid (and predominantly glass) packaging remains the obvious choice for alcoholic drinks, there is a strong case to be made for using flexibles. Aside from being the cheaper and easier-to-transport option, flexible pouches have a number of consumer advantages that can be used to overcome their 'low cost, low quality' perceptions.

Pouches chill faster than glass bottles, making them a convenient option for busy consumers. The addition of carry handles and tap dispensing systems make them very portable, and convenient for outdoor and out-of-home drinking occasions.

US Bonfire Wines' red wine blend is a great example of bringing pouches into the luxury arena. The pouch format, contemporary brand imagery, and a combination of matt and gloss finishes create a modern presentation for the brand to differentiate itself significantly from competitors. The pouch keeps wine fresh for up to four weeks after opening, making it superior to glass bottles; and the pouch shape has been modified since the brand's launch to improve structural strength and eliminate sagging, for a more stylish presentation.

The eco-refill pouch from Petrov vodka (UK) offers vodka in a resealable, flexible pouch, which consumers are likely to use as a refill pack, transferring the contents into a decanter or an empty vodka bottle for serving. The eco-friendly credentials of the format are promoted on the pack with text like 'recycle pack', 'up to 90% less packaging waste than glass bottles', and 'up to 80% less carbon footprint than glass bottles'.

Pocket Shot's 50ml tequila and rum 'shot' pouches are a convenient approach to the situations of on-the-go and out-of-home consumption. The portioned packs are suitable for single-person households and are more accessible for lower-income consumers.

Catch sight of the future
Throughout these examples, we see that packaging should have two key properties: it should be unique and useful. These innovations in alcohol packaging are in line with trends identified in Canadean's TrendSights framework:

• Efficient and effective products: alcohol packs need to fit in with consumers' lifestyle needs, whether this is a small pack for portion control, a larger sharing pack for home consumption, or a shatter-proof pouch that can be taken to a picnic.
• Moderation and avoidance: as consumers aim to moderate their alcohol intake, smaller-sized packs will help with portion control, and give them an option to treat themselves while still exercising restraint.
• Out-of-home consumption: universally busier lives are leading to a growing dependency on consumption away from the home; value can be added to products with carry features that allow easy transportation, and dispensing systems for clean and precise serving.
• Sensory fusion: the look and feel of a pack (such as surface decoration and texture) enhances consumer experience and their perception of a particular product or brand, leading to more sophisticated presentations.
• Resource scarcity: communicating potential ecological benefits of using one packaging format over the other, such as reduction in CO2 emissions, or improved disposability or recyclability options, can attract consumers looking to reduce their environmental footprint.
• Single lifestyles: living alone leads to distinct needs that can be targeted with specific product features such as reduced pack sizes, effective resealability options and single-serve formats.

When it comes to alcohol packaging, moreover, differentiation is key. It can be achieved through packaging decoration, however subtle, dramatic or unique; or manufacturers can try to offer solutions that are a better fit with consumers' lifestyles, whether that is smaller or single-serve packs, or on-the-go solutions.

New formats also offer opportunities to enhance consumer experience and to help brands stand out among competition.
One area of potential development that currently seems to be overlooked in this sector is catering to the needs of ageing populations via packaging modifications. Making a pack easier to hold (through shape or texture) and - more importantly - easier to open could enhance consumers' experience greatly. Although not specifically marketed at seniors, an all-plastics beer bottle with an easy-grip and easy-open screw cap, recently launched in the Netherlands, could lead the way for more innovation in this area.