"Revamped" Glass Bottle: How Underberg Herbal Liqueur Modernizes Tradition
A herbal liqueur undergoes a transformation
In the rapidly evolving world of alcohol, Michael Soehlke, the former Metro and MediaMarktSaturn CFO, aims to revitalize Underberg - a herbal liqueur steeped in tradition since 1846 and owned by the sixth generation of the same family. Soehlke brings a fresh approach, blending numbers, brands, and people - all while preserving the unique charm of the brand.
In contrast to the past, where Underberg found itself nestled as a digestif after dinner, today, it's found amidst the festive crowd. The diminutive Underberg bottle wrapped in its iconic paper, according to Soehlke, stands out as undeniably special - a significant reason for their success in the modern scene.
Changing Landscape and Strategy
With the shrinking alcohol market, Underberg faces a challenging terrain, but one with opportunities as well. While alcohol consumption is on a steady decline, it remains at robust levels, especially for beer and spirits. The market for alcohol-free alternatives has exploded, boasting over 700 brands and an impressive market share of around 17%.
Meanwhile, traditional herbal liqueurs like Underberg, Jaegermeister, and Fernet Branca maintain their strong presence in German drinking culture, constituting approximately a quarter of the spirits market, despite a slight downturn. For Soehlke, it's all about capturing that 'one special moment' for those who crave the unique taste and feeling of these classic liqueurs.
TheUnderberg brand has kept pace with the market's dynamism by embracing innovative ideas across the board. Guided by the entire team, Soehlke navigates the bureaucracy and politics with a cool demeanor, finding opportunities rather than getting overwhelmed.
Going "No/Low Alcohol" and Beyond
In a world where alcohol-free alternatives are on the rise, Underberg also ventures into this sector. The brand's commitment to innovation is evident through the development of an espresso liqueur and Fanta 4 - options appealing to those striving for a more moderate alcohol intake.
Celebrating the iconic paper wrap as a hallmark of their unique identity, Underberg find themselves differentiated in a crowded market, creating an emotional bond with their customers, and capitalizing on timeless brand recognition.
- As Underberg navigates the shifting landscape of the alcohol industry, they are not only maintaining their presence in traditional herbal liqueurs but also exploring the growing market of alcohol-free alternatives, such as developing an espresso liqueur and Fanta 4, to cater to those seeking a more moderate consumption.
- In his strategic approach to revitalize Underberg, Michael Soehlke emphasizes the importance of blending various aspects, including finance, employment policy, and lifestyle, into the brand's new community policy, aiming to create 'one special moment' for customers who appreciate the unique taste of traditional herbal liqueurs, while also presenting a distinctive identity through the iconic food-and-drink packaging.
