Beyond Basic: Rethinking Value for Today’s Beverage Consumers

Posted inPackaging Design

This guest post is by Anna Hamill, London’s Managing Director and Global Chief Strategy Officer for Denomination. The award-winning drinks branding agency, located in London, Sydney, and San Francisco, is female-founded and led and committed to creating more sustainable and environmentally-responsible packaging.


Despite recent glimmers of hope, the economic situation in the UK continues to be challenging. One in four UK families said they were regularly running out of cash for essentials, as double-digit inflation, high energy bills, and soaring mortgage rates hit British consumers in the most severe cost of living crisis in living memory.

While headline figures in the US look more impressive, the reality for many people has been just as tough. Incomes have stagnated for many, credit card debt is at a record $1.13 trillion, and 65% of Americans live paycheck to paycheck.

How do brands respond? This has been a key question for the drinks brands we represent in Denomination’s London and San Francisco studios. In a tough economy, brands need to work even harder to maintain market share, revenue, and margin and they’re looking for ideas on how to achieve that.

For many brands, the answer has been simple: emphasize affordability. And for a great many, it works. Sales of own-label products in the UK rose nearly 12% in 2023. Target has just introduced Dealworthy, its cheapest-ever range, all costing under $10. In most markets, new, cheaper entrants have done well—look at the success of Shein or Temu in the fashion industry.

For every successful downshifter, many brands fail to gain traction at the lower price point, losing revenue as well as margin. Simply shifting down to a basic proposition does not mean you no longer need to stand out, connect with the consumer, and become a valuable part of their lives.

Value is Relative

In drinks, we’ve seen sales of sparkling wines soar, but not everyone can afford to spend £60 on a single bottle of bubbles. Instead, cremants and proseccos — great quality, delicious, and affordable alternatives to classic champagne — satisfy people’s desire for a sophisticated, bubbly celebration. The Della Vite range from the Delavigne sisters is an excellent example of a brand creating a more premium perception of prosecco whilst offering value compared to champagne.

It’s not only the start-ups that can do this; long-established brands can, too. Gordon’s recent redesign drags it from the back of the cupboard, dusts it off, and reimagines it as a contemporary, even funny, brand that everyone can afford. Just as Waitrose did all the years ago when it renamed its basic range Essentials, Gordon’s is finding ways to help people feel good about making the democratic choice.

What people see as valuable is changing. Where once we ascribed value to conspicuous consumption, today it is as often found in alignment with core values such as sustainability and equity.

The New Luxury

There’s something more fundamental at work here too. What people see as valuable is changing. Where once we ascribed value to conspicuous consumption, today it is as often found in alignment with core values such as sustainability and equity.

So, Method’s refill system doesn’t feel like a penny-pinching choice – we pick it for its environmental impact. In the same way, people choose Wise Wolf from our client Accolade Wines at £10 to £12 for its disruptive, stylish look and feel, fall in love with the fact it’s 100% recyclable, and don’t feel like they’re missing out on a more expensive bottle. “I took a chance on this wine and I’m glad I did,” says one Sainsbury’s review. “The bottle was unique and looked high-end and the wine was great value for money.”

Others are using language cleverly: lighter variants emphasizing ingredients, fruity waters relaunching as infusions, seltzers highlighting refreshment and calorie reduction. The London Essence Company is doing this brilliantly with its tonics, positioning them less as a dilution and more as an addition.

Finally, we’re seeing some clever innovations around format. Wine boxes are less expensive but also more sustainable in terms of environmental impact, drink longevity, and portion control. Equally, it would be far cheaper to buy the ingredients for Moth’s can-only cocktails and make them yourself, but if you’re looking for an affordable alternative to a night out and you only want to buy one or two, then they’re a great option that doesn‘t feel like a sacrifice.

Forth Wave’s Tread Softly, Bagnums bagged wine

The Harder Path

Value need not be synonymous with basic. There are brands in drinks and beyond that are putting in the effort, and leading the way. We recommend working to understand what would bring value to your consumers’ lives beyond a simple price reduction.

Gaining that strategic insight isn’t easy – but as tough economic times persist, people will find their way to brands that are not only less expensive but also resonate, inspire, uplift, and generally add value to their lives. What’s more, when the economy does pick up, those customers will be ready to explore other, more premium parts of your brand.

Images courtesy the author.