How spirits startups can develop new products on a budget

'Packaging design needs to be 9.5 out of ten', says Guy Lawrence, who exited La Hechicera when Pernod Ricard acquired a majority stake in the Columbian rum brand.

In the hyper-competitive world of spirits, NPD isn’t just a growth strategy — it’s a necessity. Ahead of its inaugural New Product Awards, Global Drinks Intel examines how cash-strapped startups can innovate without breaking the bank.

For Elwyn Gladstone, founder of spirits creator and distributor Biggar & Leith, the key to competing with the big players lies in agility. “Speed to market is a real commercial advantage,” he says. “We can come up with ideas much quicker than big companies.”

This speed is particularly valuable in a sector where consumers’ appetite for novelty remains strong. “There is something interesting going on in spirits,” Gladstone explains. “The market is saturated with products — but at the same time, there is an insatiable appetite from consumers for new things.”

Online channels have changed the game, allowing startups to launch quickly, test products and pivot as needed. “You can put your new innovations online immediately without having to wait for a listing with a retailer,” says Gladstone.

Limited edition products can be an effective way for small brands to explore innovation and generate buzz. But, Gladstone warns, they only work when executed well. “Limited edition releases in spirits got a bit over-done — they were no longer special,” he says. “But if done well, these can be a super-powerful tool.”

Grace Bryan, CEO and co-founder of product & innovation agency Juicy Brick, agrees. “Think limited runs,” she advises. “Seasonal drops or exclusive batches give you space to test ideas, gauge feedback and create hype, without venturing into external full-scale productions.”

Design plays a disproportionately large role in the success of premium spirits brands. But top-tier packaging doesn’t have to come with top-tier cost, insists Guy Lawrence, formerly of La Hechicera Rum and founder of drinks advisory firm Craft Spirit Capital.

“Design is one of the most important things for premium and super-premium brands,” says Lawrence. “Your packaging design needs to be 9.5 out of ten. There’s no point being eight out of ten. How do you get brilliant design right for next to nothing? It’s difficult,” he concedes. “But great design is very powerful at cutting through.”

Bryan suggests cost-effective packaging hacks: “Explore off-the-shelf options you can customise. Think hand-labelled bottles, stickers on blank cans, or labelled pouches instead of custom printed packaging. These small-scale hacks still allow you to look considered, artisan — and on-brand — without the massive spend.”

Ryan Chetiyawardana's London bar Lyaness collaborated with Seedlip and social enterprise incubator Green Lab to create biodegradable coasters from lemon waste.

One way to innovate on a tight budget is to look inward. Bryan suggests examining production by-products. “Is there anything you’re discarding that could be repurposed?” She points to the example of London cocktail bar Lyaness turning lemon peel waste into stylish coasters. “Can you develop new flavours in-house through a bit of trial and error?” Bryan asks. “Before you dive in, do your homework. There’s loads of insight out there if you’re willing to dig.”

Holla Spirits founder Patrick Shorb believes focus is everything. “Stick to deeply penetrating your markets with a small number of SKUs to maximise impact,” he says.

That focus should also extend to branding. “Simplicity in brand design — make it ultra-fast for the consumer to know what you’re selling,” he advises.

Behind every successful innovation is a strong formulation, says Shorb. “It’s essential to find a formulation partner who understands your ethos. Achieving the right mix and balance of flavour, calorie counts and ABV for your target consumer is a must.”

Agility allows startups to compete with larger more established players, according to Biggar & Leith whose portfolio includes Irish whisky liqueur Shanky's Whip.

Tapping into local ecosystems can help small businesses scale innovation without scaling cost. “Use your community,” Bryan urges. “Whether that be potential local suppliers who provide low MOQs, an audience to test products, or even small independent production partners like microbreweries, coffee roasters or vineyards.”

Read more from Global Drinks Intel at drinks-intel.com & enter the New Product Awards at GDInewproductawards.com .