For many in Britain, Lucozade and Ribena offer a reminiscence to their childhood days. Days when you had Ribena delivered in glass bottles undiluted and Lucozade was drank only by the sick and unwell.
So for a certain generation, there will be a sense of nostalgic loss at the news today that both ‘brands‘ have been sold to a Japanese drinks company for £1,350,000,000. That is a huge figure.
So how did we get here?
What they are buying
In my branding training I reveal how a ‘brand is a promise’ – shorthand for a promise of a collection of benefits that the consumer will receive. In essence, an answer to the question ‘why?’ – why should I invest in your promise?
It is never about the logo. Brands can change their logo dozens of times without any significant change. A strong brand has a relevant promise that is delivered consistently. And this consistency allows the brand to grow – should it want to.
This is where the story of the phenomenal growth of Ribena and Lucozade begins. Those of us old enough to remember will think back to the 1980’s when something started happening to these family favourites. Lucozade realised their market growth was limited by the number of sick people at any one time and Ribena realised that undiluted juice means you must drink at home.
Lucozade Brand Strategy
It was almost 30 years ago when Lucozade made the decision to transform from a sickness product to an energy and sports drink. Daley Thompson started the ball rolling with the first of their sport advertising campaign swiftly followed by the Adamski N R G branding campaign.
To this day, the close association with this core promise continues with prominent sports stars from football and rugby plus the support of a scientific aspect to their marketing message.
Ribena Branding Strategy
The story of Ribena begins in 1936 when a Bristol based drinks owner started making fruit syrups for milkshakes.
But it was the discovery that the drink contained very high levels of vitamin C that led the drink to be seen as a nutritional aid; so much so that the UK government distributed the syrup during the second world war.
Again, Ribena decided to stretch it’s brand beyond its original reputation with a series of brand growth campaigns and an extensive range of brand extensions. Indeed, Ribena for the very first brand to be delivered in ready-to-drink cartons.
The core personality of the brand remains as a nutritional drink favoured by children and recommended by parents. It is this consistent promise which has allowed them to grow and be of such huge financial value today.
Future Brand Growth
£1.35 bn is a substantial amount of money. This figure reflects both the current brand value and the potential for future growth. New owners Suntory will also be hoping that the current channels to market will provide opportunities for additional growth of their existing brands into the UK market.
For a brand training course that helps you identify future growth look here…