VALUE
ENGINEERING

Megan Conceição explains how value-driven innovation is reshaping beverage brand strategy

Artwork by Anggi Gracia Gultom

The Big Idea:

In today’s cost-conscious climate, beverage brands are finding creative ways to deliver value without compromising on experience – whether through afforda-ble alternatives, heritage-inspired recipes, or scaled-down servings. By under-standing what consumers truly value and focusing on low-effort, high-impact innovations, brands can build trust, boost loyalty, and stay competitive.

VALUE ENGINEERING

Cash is tight, and as people feel the pinch, ingenious cost-effective solutions are more than just a necessity – they’re a powerful lever for building trust, boosting brand equity, and earning long-term loyalty. Here are just a few of the most inventive ways brand owners and operators are meeting the moment:

1) Jet-puffed marshmallows:
After a bird-flu-induced egg shortage sent prices skyrocketing across the U.S. earlier this year, Kraft stepped in with a creative cost-effective twist on a classic Easter tradition. The brand’s Jet-Puffed marshmallow decorating kit included food-safe colorings, edible pens, jumbo marshmallows and a tray designed to resemble an egg carton. Retailing at just $2 US, the kit offered families an affordable and festive alternative to traditional egg dyeing.

2) NOLA coffee:
As coffee prices reach unprecedented highs, national brands such as CoolBrew and Blue Bottle Coffee are turning to a regional-favorite – New Orleans-style coffee, which combines coffee with more affordable ground chicory root. The result is a rich, dark coffee with nutty, toasted notes and a subtle sweetness. Once born out of scarcity, this heritage beverage is now a savvy solution to modern supply chain and pricing challenges.

3) Honey, I shrunk the drink:
With consumers rethinking their alcohol intake for both wellness and financial reasons – downsized drinks are making a splash. “Snaquiris” (miniature daquiris) and “tiny tinis” (extra-small martinis) are becomingly increasingly ubiquitous on bar menus, offering a fun, scaled-down take on traditional cocktails. Starting at just 30ml and priced as low as £4/$6US, these petite pours are designed to be finished in a few sips, offering lower calories, lower alcohol and most importantly, lower prices - a smart answer to current demand for both value and wellness.

Key Takeaways for Brand Owners

01

Small Swaps, Big Wins

When forced to be extra judicious with their spending, consumers look for low-effort, big-impact changes that don’t disrupt their routines. It’s imperative that brand owners consider where and how cost-effective substitutions can integrate seamlessly into existing habits. Smaller sizes that support moderation? The opportunity to transform your usual cup of coffee into a regional specialty? Understanding these low-effort, big impact changes and positioning them as exciting, not restrictive, can help brands win as they compete for an increasingly shrinking share of consumer wallets.

02

Understand Value

To win in today’s competitive landscape, brands need a nuanced understanding of what their consumers truly value. Is your beverage part of a morning ritual? Does it provide the chance to catch up with friends? Or is it a holiday tradition? When developing alternatives, it is essential to understand not just what consumers are buying, but also why. Aligning innovation with emotional and functional value is a powerful way to turn trial into brand loyalty.

To win in today’s competitive landscape, brands need a nuanced understanding of what their consumers truly value.”

Megan Conceição

Insight Analyst at Finlays Solutions