Reinventing the Iconic: Herbal Liqueur Underberg Embraces Change
Transforming Tradition: The Rebirth of an Herbal Liquor Brand
Michael Söhlke, a seasoned pro in both corporate and family business ventures, has shaken things up at herbal liqueur company Underberg since 2020. This sixth-generation, tradition-steeped company isn't deterred by change - and it's paying off: their online sales are skyrocketing, and social media presence is flourishing.
Rather than being a post-dinner digestif, little Underberg bottles are now regular festival companions. As for that quintessential paper wrap? This unique touch is still a defining feature of the brand, making Underberg genuinely iconic, asserts Söhlke.
Shifting Alcohol Landscape
The landscape of the alcohol industry may be changing, but its dominance remains. While long-term alcohol consumption trends are on the decline, the market is still robust, particularly for beer and spirits. The alcohol-free sector, however, is experiencing a boom, with over 700 non-alcoholic beer brands and a near 17% market share[1]. Non-alcoholic wines, fizz, and innovative "No/Low Alcohol" spirits are also gaining traction.
Traditional herbal liqueurs like Underberg, Jagermeister, and Fernet Branca continue to play significant roles in German drinking culture, accounting for about a quarter of the spirits market[2]. Söhlke holds no contradiction in this: "It's all about those special moments."
The alcohol-free trend hasn't passed Underberg by, either. Innovation drives the brand's approach to ideas, with the entire team encouraged to contribute[1]. Söhlke remains resilient in the face of bureaucracy and politics, focusing on seizing opportunities instead of getting bogged down.
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Insights for Underberg's Reinvention
While exact details on Underberg's revitalization are not disclosed, it's worth considering broader strategies that could contribute to their success:
- Health and Wellness Focus: Underberg's digestive qualities align with health-conscious trends, making it a potential draw for consumers prioritizing low-alcohol, natural products[4].
- Quality and Heritage Emphasis: As afamily-run company since 1846, Underberg can tap into its rich heritage and unwavering commitment to quality, an appeal for consumers seeking authentic products[3][4].
- Marketing as a Digestive: Positioning Underberg as a digestive aid could target the growing consumer awareness of gut health and overall wellness[4].
- Collaboration and Innovation: Partnerships with mixologists, chefs, and other creatives can help keep the brand fresh and relevant[4].
- Expanded Distribution Channels: Utilizing social media and online platforms can boost visibility and accessibility for their products[4].
With these strategies in mind, Underberg could continue to thrive in a changing alcohol market.
- Underberg, with its longstanding community policy and commitment to traditional herbal liqueurs, is rejuvenating its business by focusing on health and wellness, quality, and heritage, as well as collaborations and innovations in the food-and-drink industry.
- The finance department at Underberg is exploring strategic collaborations and innovations to maintain its position in the alcohol industry, capitalizing on the growth of the non-alcoholic sector and the significance of traditional herbal liqueurs in German drinking culture.
- In alignment with the company's employment policy, Michael Söhlke encourages his team to push for ongoing innovations in products and marketing, especially as they aim to position Underberg as a digestive aid in the lifestyle realm, appealing to consumers seeking low-alcohol, natural offerings.
- Underberg's emphasis on quality and heritage isn't just limited to their product line; the iconic paper wrap maintains its importance in the lifestyle choices of consumers, highlighting the brand's distinctive and timeless appeal.
- To achieve sustainable growth in the evolving alcohol landscape, Underberg should pursue expansion in their distribution channels, including festivals, online platforms, and retailers, in order to capitalize on the surging popularity of their herbal liqueur and the success of their recent rebranding.
