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By Amanda Victoria (CEO and Founder) and Joseph Mintz (COO and Co-Founder) of Siponey Spritz Co
We run a successful premium canned spirits company in an ultra-competitive segment within a $126.9bn U.S. industry, and we’ve never felt more confident about the future of our brand. Yes, it’s a peculiar flex for an economic downturn. But investors who assume premium brands are shaking in their boots should know that all signs point towards growth for those who are doing it right.
Exponential growth, in fact, for those who’ve mastered the finer nuances of innovation. (Hint: innovation doesn’t mean regurgitating last year’s PowerPoint presentation).
Innovation is a skill shared by savvy companies across a wide variety of industries. Companies who’ve learned how to unlock new communities of loyal customers at a time when many are running for cover. Companies whose stock price may be holding tight or even inching upward despite damaging headwinds. At Siponey, we like to think of innovation as a healthy combination of brainpower, passion, dynamism, and most importantly, vigorous and enthusiastic adaptation to the world around us and our customer’s latest emerging needs.
While this recession-ish is a frightening time for business owners and investors alike, we’re also in a period where global wealth is on the rise. At the same time, the world is in a collective “aha” moment where consumers at all levels are tuned in and demanding excellence. Together, this points us toward a future that values a redefined kind of premium.
While we don’t have a crystal ball to know exactly which companies will soar, it’s clear those who are stuck in their cozy status quos aren’t likely to survive. So we’re bullish on companies who are proving to be true innovators – and we’ve pulled together 5 easy ways for you to spot them, too:
1. Look for companies who insist on quality raw materials in their manufacturing
This sounds counterintuitive when production costs are strangling balance sheets everywhere. But when the economy was falling apart in 2008, we witnessed firsthand scores of cocktail bars beginning to sell $20 signature drinks made with fresh-squeezed juices and premium liquor. One might argue alcohol provided a means of escape, but that’s no less true of bottom shelf brands. Despite the sensation that the world was going up in flames, consumers sought delicious quality – and craft cocktail bars around the world began a renaissance as true innovators of industry, even in trying times.
And the same is happening today; in the alcohol industry, for example, we’re seeing a resurgence, this time bringing similar quality, now paired with convenience, into homes – specifically within the booming Ready-to-Drink segment, formerly known for super sweet, low cost ingredients. Across other industries, the desire for “better” items is increasing everywhere, too. Even when money is tight, many consumers are still willing to shuffle budgets so they can prioritize nicer, more meaningful products and experiences.
2. Take note of companies who value transparent messaging and sustainability
In today’s competitive fight for the spotlight, consumers are voting with their dollar and asking questions more than ever: What is it made from? Who makes it, and why? Where and how is it made?
They adore transparency – especially when it comes to purchases that go on or in their bodies. A recent NielsenIQ report says a whopping 72% of shoppers would switch to brands that disclose more than just their ingredient list.
At Siponey, part of the reason we’ve been so successful is that transparent communication of our values and practices is part of our ethos. We place an emphasis on consumer education and transparent storytelling – particularly about our supply chain and ingredients, which gained us the elusive and well-regarded, B Corp certification. Studies point to issues like sustainability and responsible resource use as top concerns for Millennials and Gen Z – generations who stand to inherit much of the $84 trillion “Great Wealth Transfer.”
Practices like these resonate strongly with customers – they enjoy being “part” of the story and are willing ambassadors of companies they believe in. Investors would do well to keep an eye on small, family-founded companies who follow this recipe for success – companies who may become tomorrow’s global conglomerates (we see you, Patagonia).
3. Consider companies who “get” customers and respond with product creation and smart acquisitions
It’s clear consumers are willing to pay more for certain items but they need a motivating reason. While buyers are quite aware that inflation is plaguing businesses everywhere, they may be more inclined to support price hikes made by those who can also demonstrate an investment in things like quality product creation or noteworthy brand acquisitions – both signs of innovation that often lead to healthy stock prices.
4. Scrutinize high turnover rates
When figuring out what companies to invest in, be sure to scrutinize turnover rates. High turnover can signal deeper problems that do not bode well for innovation – like low morale or poor management. Look at it this way – if employees don’t believe in a company enough to stick around for the long haul, should you?
Seek out businesses that value their employees, promote creativity, and empower them to develop quality, innovative products and ideas that customers love and can withstand the test of time. Doubly, a diverse and empowered team will yield dynamic results that often directly and explicitly reflect customer’s needs.
5. Remember, consumer-focused companies are investor-focused companies
Unfortunately, many large companies are hyper-focused on what we call volume-smattering plays – this is when sub-par “products” are thrown together for a quick buck, with little concern for the consumer or the long-term. When companies do everything to capitalize on a trend without putting any love behind the product, they set themselves up for spectacular fails. Fails that can prove to be equity and brand-killing disasters: bad for consumers (who are sold a terrible product) and bad for investors (who can kiss long-term returns goodbye).
Final Word:
Companies that care deeply about the consumer experience are companies who care deeply about the investor experience.
About the authors:
Amanda Victoria is a multi-decade, award-winning leader in cocktail and spirits business, communications, corporate environmental and social impact, product development, and revenue strategy. In 2019, Amanda co-founded Siponey Spritz Co., the first in-category B Corp certified cocktail company, as a super-premium canned alternative, made with top-quality ingredients. Her work has been featured prominently in the media as an eminent wine and spirits authority, entrepreneur, and environmental and social activist.
Environmental entrepreneur and seasoned commercial and operations professional, Joseph Mintz is a Horticultural Science graduate from the New York Botanical Garden’s School of Professional Horticulture. As the co-founder and COO of Siponey Spritz Co., Mintz couples his education with experience, like having led rollouts for startups including Citibike in NYC. His work can be found in Vogue, Departures, The Food Network, NBC and with companies such as Delta, American Express, JW Marriott, Kitchen Aid, Hilton and more.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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