The Top-of-the-Pyramid Mirage: Why The World's Best Bars Aren't Enough to Build Your Drinks Brand
(Making Your P&L Bleed) and How to Choose The Right Ones, Instead.
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Dear Bottom-up Drinks Builder,
I've been guilty myself. For a long time, I've thought that the only way to build brands in the on-trade was to focus on the top bars in a city. I dug deeper and understood what needed to change to win.
In this issue, I'll guide you through my process to a focused approach to hunting. This approach is valid for:
Small premium brands (VC-funded)
Small premium brands (bootstrapping)
Premium brands (in a wide company portfolio, on a low budget)
The Misalignment of "Best Bars"
Why was I wrong? I wanted to be in the best bars in town, tout court. That was a lousy brief. I didn't realize that the best bars in town ≠ the best bars for my brand in the city.
I was thinking top-down from my corporate ivory tower. I decided to change my approach and build a brand from the bottom up.
What's the problem with the city's best bars:
They're used to big budgets from big brands
They're more inclined to build their brand than yours
They're on every brand's and every distributor's hunting list
They've more friends with drinks brands than space on the back bar
If you need a car but have little money, what would you do? Pop up daily in a Ferrari dealership, dreaming, or rather, go straight to buy a better car for your needs?
Stop thinking like a big brand. You don't have their budgets, time, teams, and share of mind of distributors and customers.
Don't get me wrong. A big brand is not necessarily better; they simply have more resources to absorb mistakes and inefficiencies. A luxury you cannot afford.
The Pyramid Misconception
The traditional method of segmenting outlets, such as a pyramid, is misleading.
It makes us think that building brands is a top-down exercise. Building brands is not drip coffee.
That was once true, in an era when information was scarce and only large brands dominated the advertising landscape.
Note: B-type = Silver = 2nd tier outlets = Lower-tier bars
In reality, many bars will never make it to become part of the world's best bars.
Still, they are incredible venues for building brands with a good sell-out. They are willing to help you, as they need to associate with brands like yours to build their image.
Lower-tier bars want to show their consumers that they've curated a great list of premium drinks to convey they are legit. They'll give much more space to your brand, making room for it on their back bars and mentioning it on menus.
Top bars are unwilling to showcase you. They want to keep an "unbranded" experience. Consumers go there for their brand, not because they list yours. Within their walls, their brand is actually stronger than yours and they don't want to compromise it.