Crafting Luxury in the Non-Alcoholic Landscape

Does luxury have a definition? 

Let’s start this strategy outline on luxury the definition of the concept of luxury. Differently said: What does the concept of luxury signify today?

The definition of luxury has transformed from exclusivity to exceptionalism. Luxury is no longer solely measured by superior product quality and inaccessibility because of an exorbitant price tag, exclusive to 'the wealthy.' Luxury now resides in creating an alter-ego, infused with cultural values and norms that captivate the imagination and the desireability, both expressed in exceptional product quality and brand experiences. Yet, at its core lies a raison d'être.

A raison d'être finds its roots in the exceptional quality of the product or service. This distinguishes 'traditional luxury brands' from 'intermediate luxury brands,' with the latter merely playing with marketing tools offered by the luxury industry. Today, it appears a challenge for a new brand and startup to simply employ these tools without a reason of existence. Or maybe, unless you possess a chitload of money.

GenZ or ‘the rich’?

Are 'wealthy people' still a target demographic?
As far as I'm concerned: No.

Millennials have set the precedent, while Gen Z proves it: Money is cheap! The purchasing behavior of Gen Z is in stark contrast to that of the Baby Boomers. Although Gen Z has, rationally, less budget, they find their way to luxury brands. Gen Z wants, buys and finds, or will find, a way to acquire money. Or did you think that all people wearing a Raf Simons T-shirt are necessarily 'rich'?

Moreover, you don't build inspiring norms and values by creating for 'rich people' only. Besides the common fact that they possess wealth, 'rich people' are not a coherent group with pronounced values and norms. On the contrary, we often hold prejudices and do not want to belong to the elite group of the rich. Even the wealthy themselves resonate with values and norms that don't necessarily belong to their world and seek connection with 'the average class' by integrating an Ikea piece into their well-curated interior or pairing a Weekday T-shirt with their 'Balenciagas.' Another example is the abundant collabs between luxury brands and hip-hop artists.

Crafting Luxury from the Ground-Up

How did we manage to position Bôtan Distillery as a luxury brand? This is no evidence since 'the proof of the pudding is in the eating': Others must perceive the brand as a luxury brand.

The story of Bôtan Distillery and its positioning as a luxury brand starts with intrinsic product quality and challenging the status quo. I believe we could only make an impact by shaking the trees vigorously. By undertaking something radically different, we get noticed. Like the 'outsider' strategy. And we proved that we could best achieve this luxury positioning by focusing on intrinsic product quality.

Raison d’être

In 2018, we drafted the first concept for Bôtan Distillery. The goal was not explicitly to establish a luxury brand but to distill the world's best non-alcoholic product. How we achieved this? By cultivating and distilling real botanicals.

By concentrating on intrinsic quality, we inadvertently elevated the brand to a status of luxury. By reinterpreting the essence of taste – nature – we controversially shook up the industry. We proudly introduced the world's first alcohol-free distillery, from field to bottle, devoid of artificial flavors, natural aromas or preservatives.

#siprealherbs

Exceptional Sips

I embrace the concept of new luxury, which places exceptionalism above exclusivity, thereby lowering the entry barriers for startups in the luxury sector.

We succesfully positioned Bôtan Distillery in the luxury realm by combining exceptionalism & exclusivity, leaning on intrinsic product quality. The brand embodies a unique approach in the industry by linking a vertically integrated supply chain to an extraordinary taste experience, endorsed by the world's elite chefs and bartenders. Its DNA rests on authenticity, transparency and social responsibility.

The Supply Chain or The Value Chain?

To highlight our exceptionality, we embraced infotainment as our guiding principle. Our supply chain metamorphosed into a value chain. We interwove every facet of the supply chain into our content creation and brand experience. The art of cultivating and distilling botanicals is a magnificent craft, and with my partner, Ruben Van Aken, bringing a versatile range of skills in photography and videography, as well as an eye for longing and aesthetics, our content invites you to imagine a more luminous world. We elevated the product to an experience that highlights real ingredients, real people and real passion.

Our bookkeeper once asked me how we managed to avoid allocating marketing budgets? I joked and said that he might as well consider our investments in the production chain as part of our marketing expenses.

Possessing a genuine business model, we commercialised original marketing content. In today’s fast-paced of life and content consumption, it is a blessing to have genuine content. By relying on the fundamental business model of the company, we’ve managed to engage in direct dialogue with our community and customers. What other brand, expecially in the non-alcoholic industry can claim the same?

Case

After two intensive weeks of planting, we find ourselves at a point where we're comfortable enough to write about it. With the harvesting of our first batches on our fields, we have already forgotten the hard work. — Blog article, Planting Season 2023, July 2023, written by Ina Simone Averhals

By living the brand, we were able to speak directly to our end-consumers. As most brands do not own the vertically integrated supply chain, no brand is able to guide people around this process.

Where is your Supply Chain?

Bôtan Distillery is the world's first non-alcoholic distillery from real ingredients. Need I say more about our exceptionality?

Exposure became our trademark. By telling our own story, we automatically showcased the competition. We also highlighted the heavily industrialized sector and how brands blend flavors from water and powdered flavours. I must confess that I initially searched for the right method to do this. Can I do this to the competition? I found the balance by communicating the story of Bôtan Distillery, with which we indirectly 'expose' the sector and competitors. Sorry, but not sorry?

Exclusive or accessible?

This is an excerpt from the blog article in which I am talking to our community about the challenges of Planting Season 2023. Which brand can claim the statement that I made? Only genuine brands can do so. Therefore, I extend a warm invitation to new to be established brands: make sure you first focus on the intrinsic product quality, at least if you’re aiming for a top-tier position.

Nature is expensive

The greatest challenge we encountered was balancing excellence in both product and brand experience with our precarious financial situation. As a startup, you cannot ignore the 'economics of economy.' Maximizing the brand experience or providing extensive after-sales service is not always feasible when resources are limited. Similarly, at the other end of the spectrum, we couldn't fully commit to a pricing strategy that reflects luxury until we had implemented necessary luxury cues, such as bottle design and packaging design. Though, being a startup with a genuine story, we earned more goodwill from our consumers, and our transparent communication fostered a sense of understanding among them.

Nature is scarce

Finding the right balance between luxury and affordeability was challenging, but thanks to a well-considered diversified product portfolio and pricing strategy, the company has achieved a successful position in the luxury segment.

Based on the intrinsic quality of our product, we have diversified our portfolio and prioritized affordability over exclusivity. The product portfolio ranges from €16.50 to €60.00. The pricing was a true reflection of the cost of the ingredients, the exclusive nature of the herbs and the difficulty of cultivation.

We even considered pricing based on availability. But as a small enterprise with a loyal customer base, we just didn't have the courage to push this through. Maybe we can experiment with this in a future project? Let’s bring it on!

Case

Nature cannot be forced, and while the depleted stock causes much stress, we embrace it. In today's society, everything is always available. Isn't this the biggest lie we've become accustomed to? — Blog article, Planting Season 2023, July 2023, written by Ina Simone Averhals.

Botan Distillery: Our most exclusive products were completely depending on that year’s harvest.

Other brands: Many luxury brands today are looking to fake scarcity. You also see this in the leather goods industry in which the luxury brand Hermes is benefitting from its superior quality and limited production. Other fashion brands now come up with waiting lists but find it difficult to come up with a true reason for scarcity.