Premiumisation has become a key trend governing all aspects of the beverage market, from sustainability to standing out in the growing market for luxury drinks, writes Susan Ellison, joint MD at OPM (Labels and Packaging) Group.

Consumer spending on premium or “super-premium” alcoholic drinks is expected to grow by 13% to 2024, with more than 40% of consumers treating themselves to the occasional luxury tipple and 54% of those aged 18 to 34 preferring premium drinks.

Glencairn Crystal predicted continuous growth for luxury spirits in 2021, following an increase in 2020 when customers are thought to have exchanged their bar budget for high-end spirits during lockdown. Meanwhile it’s estimated the Global Premium Spirits Market will grow by 10.10% annually between 2021 and 2028 due to the growing appetite for cocktails emerging in developing markets such as China and India; and this, coupled with innovative market campaigns, is driving demand for luxury.

The fact that spirit sales have continued to rise despite the pandemic’s devastating effect on the hospitality industry places even more pressure on brands to stand out on the supermarket shelf.

However, the thirst for high-end drinks must not come at the expense of the environment or ethics. Holly Inglis, Beverages Analyst at GlobalData, revealed that in their Q2-21 survey, 34% of global consumers cited sustainably/ethically sourced ingredients as appealing, saying: “Health consciousness and sustainability, sprinkled with a pinch of indulgence, are set to drive many innovations this year, as consumers look for products that align with their personal values without compromising on taste.”

Where sustainability is concerned, brands are responding with a premium approach to eco-friendly labelling. For example, Avallen has introduced waste‐apple‐pulp labels printed with natural inks for its Calvados, and Beefeater Gin uses paper labels. For companies wanting to follow suit, a print labelling expert can advise on the substrates that are important when designing for the circular economy and how they can be used for maximum recyclability and print capability, according to Ellison.

“Today’s environmentally conscious consumer wants products in sustainable packaging with instructions for recycling and information regarding provenance. This requires careful consideration of budget, lead times and material for labelling. The solution is to choose a printer whose focus is on working lean with streamlined processes, using green materials, with energy and waste management certificates. We use suppliers who source label materials from PEFC and FSC-certified forests to offer eco-friendly facestocks and films that reduce waste and pollution. These include Estate Label No.14 facestock made from 100% post-consumer-waste paper, and Bio-based PE film, made entirely from sugar cane ethanol cultivated in Brazil,” she says.

The power of design

Labelling premiumisation can make a great statement and help potential customers decide whether the product is right for them through careful use of design features such as colour and typography. A clear brand image that can be identified from several feet away can entice the browsing shopper to look closer.

For high-end spirits, embellishments such as embossing, debossing and foil stamps are an immediate indicator of traditional luxury, indicating a quality, vintage product worth spending extra money on. As well as looking good, the tactile finish feels good too, encouraging a customer to keep hold of a product and learn more.

A variety of papers, films and specialised materials can have this effect on both bottles and cans, and include clear-on-clear films, metallised papers and films, glossy bright white materials, laminated foils, and traditional uncoated papers, in a vast range of colours and textures. Some of the most innovative formats include screen printing on glass bottles – an effective way of creating a raised appearance on the substrate.

To achieve the level of shelf shout required to stand out amongst crowds of competitors it is critical to work with a trusted printer who can advise on how to bring effective design ideas to life.

Telling the product story

“In terms of ethics and provenance, once the consumer has been drawn in by the look and feel of the product, it is vital that information on the label is clear and simple, enabling brewers and distillers to quickly tell the brand story and connect with the customer so that they buy. This is where labelling premiumisation can really come into its own,” says Ellison.

A seemingly simple label change can produce powerful results, as illustrated when Bosscal Mezcal joined the Wolf Spirit Distillery brand portfolio. This Mexican beverage, made from hand-selected, mountain-grown agave and cooked by the distiller in a volcanic rock-lined oven, was selling only 200 cases a year. Within just one month of launching the product with an alternative glass colour and redesigned label featuring a new story-led illustration and the phrase ‘Mountain to Market’ the brand sold 2,500 cases.

Labelling premiumisation means reflecting superiority in terms of provenance, ingredients, green credentials and additional smart services, all displayed on an eye-catching label featuring an on-trend design, according to Ellison.

This, she says, makes it a complex and integral part of the product development process which should never be an afterthought.