Flavors—sometimes you want ’em, sometimes you don’t. At least that seems to be what is going on in the beverage business these days. For some categories, the greater variety of flavors a beverage can come in, the better. For others, coming out with a bunch of new flavors may actually do more harm than good. The trick is figuring out exactly where your brand falls when it comes to flavor innovation.
So, which beverage categories are ripe for more flavor innovation and which appear to have peaked in this regard?
One category that could see more flavor innovation in this new year is CSDs. It’s a category that could use some new excitement to help reverse declining sales, and some innovative flavors—tastefully done, mind you—could be just what it needs. So far, much of the flavor innovation in soda has been designed to appeal to younger drinkers. But I’ll bet that some grown-up flavors, using more wholesome ingredients, could catch the interest of older drinkers.
On the alcohol front, the new year brings some very interesting developments when it comes to flavors. For one thing, a study released just as 2013 was coming to a close revealed that flavored vodkas—an enormously popular trend which has really boosted this category—may have already peaked in popularity. Restaurant Sciences LLC, , an independent firm that closely tracks food and beverage product sales throughout the foodservice industry in North America, reported that the sales of on-premise flavored vodkas fell 11.7 percent from Q3 2012 to Q3 2013. Analyzing more than 170 million drink orders, the organization uncovered that flavored vodkas lost nearly one percent of their on-premise spirits market share from Q3 2012 to Q3 2013. So, it appears that while flavored vodkas remain quite popular, consumers may not be open to any additional flavors for their vodka in 2014.
Another spirits segment where flavors can be tricky is whiskey. The Wall Street Journal reported that Brown-Forman Corp. Chief Executive Paul Varga plans to take a “conservative” approach to rolling out new flavors for Jack Daniel’s. While Tennessee Honey, introduced in 2011, has done great, Varga and his team have correctly realized that for some beverages, too much flavor can go too far. After all, when it comes to a heritage brand like Jack Daniel’s, already savored so much for its inherent flavor, too much tinkering can probably do more harm than good.