"Iconic" Paper Wrap Remains: How Underberg Revamps Its Herbal Liqueur Image
Transforming Traditional Herbal Liqueur: A New Perspective on Schnapps
Written by Andreas Laukat
Michael Söhlke is breathing new life into the Underberg brand - with digital marketing, innovative products, and a firm stance. And he's doing it all while navigating a shrinking alcohol market. Let's see how!
A seasoned veteran of both large corporates and family businesses, Söhlke took over as CFO of Underberg in 2020. Founded in 1846 and now in its sixth generation of family ownership, tradition isn't a barrier to change for Söhlke. Peer into his playbook for revitalizing a herbal liqueur brand, and you'll see a knack for numbers, brands, and people.
Booming Online Shop, Creative Social Media
Underberg's online shop is on a roll, while social media is gaining traction thanks to creative uses. Instead of the traditional digestif after a meal, the small Underberg bottle is now spotted at festivals.
Iconic "Ikonische" Paper Wrap
Söhlke believes in the power of the iconic, "With the paper, we are so unique that that's really iconic." The classic paper wrap is here to stay.
Alcohol-Free Trend and Market Shifts
The market is evolving, with alcohol consumption on a downtrend. Yet, it remains high, and beer and spirits are holding strong. Alcohol-free alternatives are growing, with over 700 brands and a 17% market share.
Classic herbal liqueurs like Underberg are still popular, making up about a quarter of the spirits market. Söhlke doesn't view this as a contradiction: "It's about that one special moment." The trend toward alcohol-free doesn't bypass Underberg either. They're keeping an eye out for fresh ideas and implementing them deftly.
Balancing Tradition and Innovation
Underberg is focused on introducing new products and flavors, employing digital marketing, and championing sustainable, high-quality ingredients. How it masterfully walks the line between tradition and modernity is a dance best performed by the brand itself.
Adapting in a Shrinking Market
Underberg is branching out into non-alcoholic beverages, collaborating with influencers, and creating immersive experiences to attract new customers and keep loyalists engaged. Remember, what works for one brand may not work for another - Underberg's secret sauce is their unique approach.
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Stay curious, folks!
- The iconic "Ikonische" paper wrap remains a unique selling point for Underberg, as Michael Soehlke, the brand's CFO, firmly believes in its enduring appeal.
- Underberg is navigating a shrinking alcohol market by adopting digital marketing strategies, innovating its products, and championing sustainable, high-quality ingredients.
- The alcohol-free trend and market shifts have not bypassed Underberg, as they are actively seeking fresh ideas to cater to this growing market segment.
- Employment policy plays a crucial role in Underberg's strategy for revitalizing its herbal liqueur brand, as Soehlke demonstrates a keen understanding of numbers, brands, and people.
- As part of its efforts to attract new customers and retain loyalists, Underberg is expanding into the food-and-drink business, collaborating with influencers, and creating immersive experiences - demonstrating a unique approach to adapting in a competitive and evolving market environment.
