‘Don’t change your brand’ for the US, warns CEO

Companies keen to crack the tough US market have been advised by the CEO of Reformed Spirits “don’t change your brand” to fit the American mould.

While spirits producers frequently court the booming US spirits market, the CEO of Reformed Spirits has warned that companies should be sure not to change their brand

Speaking to The Spirits Business, Jacob Ehrenkrona, CEO of Reformed Spirits, owners of Martin Miller’s gin, said the biggest mistake he sees time and time again is that people become  “mesmerised by the opportunity the US represents”.

“Believe in yourself and don’t change your brand, whatever people tell you about America being different,” Ehrenkrona explained.

“Most brands start in New York, California or Florida, and then other states start demanding the product.

“It becomes exciting and all of a sudden, you get swept away by your own success and start spending money.

“You spend a fortune and spread yourself too thin. That’s the main reason people fail.”

An opinion echoed by Mark Brown, CEO of Sazerac, owner of Gemini Spirits & Wine, believes the most important factor when entering the US for the first time is to go in with your eyes wide open.

“The biggest challenge, oddly enough, is setting the correct expectation,” said Brown. “Most exporters to the United States view it as a vast market of opportunity and that their new brand should immediately start selling thousands of cases all over the country; if only it were that simple.”

He explained Gemini Spirits & Wine spent a long time up front with any potential supplier to establish clear expectations for a brand’s development, taking into account that realistically, proper brand development takes five to 10 years.

“Remember California is roughly the economic size of France; do not try to conquer the whole country at once,” he added.

“If the expectation if not correct, inevitably, frustration and disappointment will ensue, ultimately causing what otherwise might have been a good project to fail.”