Reinvention of traditional herbal liqueur: A unique twist

Giving a New Spin to the Classic: Underberg's Reinvention Journey

A herbal liquor innovates its identity through a transformation process

Find out how Underberg, a centuries-old herbal liqueur, is clawing its way back into the competitive beverage industry. No stone is left unturned in this revitalization project, from innovative pairings to eye-catching appearances at festivals. And let's not forget that iconic paper wrap!

Michael Söhlke, the mastermind behind Underberg's transformation, admits to dabbling in both corporate titans and family-owned businesses. Since 2020, he's been giving Underberg a fresh breath of life - all whilst keeping an eagle eye on numbers, brands, and the energetic minds within his team.

This German label traces its roots back to 1846, making tradition no barrier to change for Söhlke. The online shop is flourishing like never before, and smart social media strategies are keeping the brand fresh and relevant. But that's not all - Underberg is no longer just a digestif for post-meal enjoyment. It's found itself at the heart of vibrant festivals, bringing that signature, small bottle to the masses with a renewed sense of purpose.

The Ongoing Battle of Alcohol vs. Alcohol-Free

The beverage industry is experiencing change at an unprecedented pace. While long-term alcohol consumption is on a steady decline, it still retains a high level of popularity. Beer and spirits, in particular, continue to hold their ground. Meanwhile, the non-alcoholic beverage sector is booming, with over 700 alcohol-free beer brands currently on the market and a market share of around 17%.

Innovative non-alcoholic wines, sparkling wines, and "No/Low Alcohol" spirits are also garnering attention. With such fierce competition, it's no surprise that Underberg is seeking ways to remain relevant without compromising its core essence.

Classic herbal liqueurs like Underberg, Jägermeister, or Fernet Branca are still deeply rooted in German drinking culture. According to Statista, they account for roughly a quarter of the spirits market, although their share is in decline. Söhlke remains confident that the trend towards alcohol-free drinks poses no threat to Underberg's position: "It's about that one special moment."

Facing the Challenge Head-On

The team at Underberg, hailing from Rheinberg near Cologne, is busy collecting and implementing fresh ideas, with everyone given the freedom to contribute. Söhlke emphasizes the importance of staying calm in the face of bureaucracy and politics, recommending a proactive approach instead of getting mired in a state of shock.

This proactive spirit is also on display in a partnership with Söcht Deutsch, a popular podcast hosted by Fraunk Holzmeier and Andreas Laukat. Here, the duo interviews entrepreneurs, investors, politicians, and businesspeople about the state of Germany's technology sector, offering Underberg the unique opportunity to engage with a broad audience interested in innovation.

All episodes of the podcast can be found on RTL, Amazon Music, Apple Podcasts, Spotify, and in the RSS feed. For questions related to Söcht Deutsch, you can reach out to [email protected].

Keywords: Alcohol, Family Business, Beer, Innovation, Marketing, Entrepreneurship, Podcast, Authenticity, Tradition, Healthier Beverages.

Bonus: Branding Strategies and Tactics

Here's a glimpse into potential strategies Underberg might be using to elevate its brand and stand out in a crowded market:

Brand Revitalization:
Tradition with a Twist: Underberg emphasizes its longstanding heritage, appealing to consumers who are drawn to traditional brands with a modern twist.
Collaborations: Partnering with trendy restaurants or bars, such as the 1642 Bar, exposes Underberg to new, sophisticated audiences and builds a buzz around the product.
Iconic Paper Wrap:
Brand Identity: The signature paper wrap is a cornerstone of Underberg's brand identity, imbuing the product with an air of nostalgia and trust.
Visual Appeal: The eye-catching paper wrap sets Underberg apart from competitors and adds to the overall experience of consuming the product.
Innovative Pairings:
Mixology: Pairing suggestions for Underberg, such as pouring it over ice or mixing it with beer, expands the product's appeal beyond traditional use cases and taps into the craft beverage trend. These creative combinations help Underberg attract a new, adventurous audience.
Underberg's employment policy could focus on recruiting candidates who are well-versed in the beverage industry, entrepreneurship, and marketing, to accommodate its ongoing reinvention journey.
In the community policy, Underberg may consider supporting local festivals and events to boost its visibility and brand recognition, following its successful appearance at numerous vibrant gatherings.
As per the finance policy, Underberg could invest in innovative processes to produce non-alcoholic alternatives, positioning itself as a forward-thinking brand catering to the growing market for healthier beverages.
In terms of the lifestyle policy, Underberg might cooperate with food-and-drink influencers to showcase pairing suggestions with wines, liqueurs, and other beverages, appealing to a younger, more adventurous demographic.
As part of the business strategy, collaborating with podcasters like Fraunk Holzmeier and Andreas Laukat of Söcht Deutsch could aid in exploring new branding ideas and expanding Underberg's target audience interested in innovation and technology.