Monthly Archives: January 2015

The Brewhive Brand – Passionate about Hops

We are working hard on the Brewhive brand and user experience.

Brewhive is unique due to it’s focus on the hop. Most beers don’t make a big deal about the hop, but we plan to!

We have tried to distil the essence of the brand into a detailed briefing document that outlines the key strengths and issues that we need to address. We are working very closely with the creative team and spending quite a bit of time discussing the experience we are trying to create.

Our initial range of beers is well developed and we plan to sign these off for production in early February. So still a good few months away from launch but we are getting closer.

We are going to spend more on the customer experience than most online brands and hold much more stock to ensure availability is great. Three major things you need to focus on in e-commerce are:

  • Having the product in stock (sounds easy – lots of failures in this!)
  • Fast convenient delivery (next day, timed is ideal)
  • Fantastic customer support (solve issues with delivery, product quality etc asap)

To make this work, you need to cut your margin when offering a better quality delivery, hold more stock and have dedicated customer services resource. All of these cost money in terms of working capital but will improve word of mouth and customer satisfaction.

Measure how well you are achieving this with NPS

FMCG and e-commerce

© Aprescindere | Supermarket Photo

The supermarket landscape in the UK isn’t looking great just now. All well known retailers such as Tesco, Asda and Morrisons are really struggling with a pincer movement from heavy discounters (Aldi, Lidl, Poundshops etc) and e-commerce (If you have a retail week subscription check out the winners and losers over the 2014 Christmas period)

So as a FMCG brand it continues to get harder and harder to even get listed in a large volume retailer. The fight for the consumer is driving margins down and every square foot of a retail outlet has to deliver.

I have kept on banging on about this for a few years as we have seen a move to online retail in most categories – it just seems to make sense we are going to see that in Grocery.

There is a strong manufacturing base in the UK and US, but they struggle with distribution – having depended on supermarkets for 20 years, why invest in anything else.

So I really do believe that the time has come to drive FMCG brands online, but the skill set to do this does not really exist in food manufacturers.

That is why we have formed Liquid Ecommerce Group. A group structure that will hold a number of brands and investments in the eFMCG space. We already have two challenger brands under development and we plan to add one per annum.

The group has a long term strategy and will utilise the shared IT, logistics and brand management infrastructure to grow over the long term.