Maximizing Success: How Beer Brands can use Brand Extension to their advantage

We probably all can think of an example: a beer company that uses its brand name to introduce a new product. Sometimes it is a variant of their bestseller, a limited edition, a summer or winter edition or a non-alcoholic option.

Quality and trust

There are a few reasons why beer brands decide to use brand extension.
First of al, if a beer brand already has a strong reputation, consumers will be more likely to trust and try their new products. If the brand is already known to a wide audience and is regarded as a quality brand it will be easier to convince an audience that they should try out your new product as well.

Diversification

Second, brand extension can help beer brands appeal to different types of customers. For instance, a low-calorie or non-alcoholic beer may be more appealing to health-conscious consumers, while a fruit-flavored beer may be more appealing to those who prefer sweeter drinks. Brand extension allows a company to diversify its product range.

Sales and revenue

Not insignificantly of course, by appealing to a wider audience, a beer brand can also begin to increase its sales and revenue streams. By offering a wider variety of products, beer brands can capture a larger share of the market and encourage customer loyalty. Plus, launching new products can help beer brands stand out from their competitors and give them a competitive advantage.

Cost saving methods

This may all seem interesting but what about the cost? Launching a new brand can be expensive, as it requires significant investments in marketing, branding, and distribution. Smart methods for dealing with this cost-effectively include: reusing existing resources, test marketing (start with small batches), collabs, …

Cross-promotion

Brand extension also allows beer brands to cross-promote their products.
For example, a beer can be a match to a particular period in the year, such as famous sports events like the Tour de France. A pair of cycling socks customised in the beer company's branding can be the perfect addition to trigger people to buy the new beer.

Turn your beer brand into a love brand

Ultimately, every brewery wants nothing more than for their beer brand to become a beloved brand with a steady clientele. Some brands, through their brand extension, even manage to build a full-fledged community around their brand. When done right, you can help your customers to become ambassadors for your brand. A smart way to strengthen your community and make them feel even more connected with your brand is branded merchandise.

This branded merchandise is usually offered through the beer brand's online store or in their visitor space. This is the perfect complement to their product range and appeals to a wide audience in a different way.

Overall, it's clear that brand extension can be a powerful strategy for beer brands and make them even more successful.

By using their existing brand name, beer brands can introduce new products, appeal to different types of customers, increase sales and revenue, differentiate themselves from their competitors and build a love brand with a loyal community.

Thinking about building that community for your beer brand? Let's talk!