Table of Contents
- Introduction
- De La Calle's Original Positioning
- The Rebranding Process
- Adjusting Production and Distribution Strategy
- Embracing Broader Markets While Staying Authentic
- Conclusion
- FAQs
Introduction
In the competitive landscape of the beverage industry, consistent innovation and strategic reinvention are key to sustaining growth and capturing a broader audience. This is something Alex Matthews, the founder of De La Calle, understands profoundly. In 2023, his Mexican soda brand underwent a pivotal rebranding to better communicate its product value and appeal to a wider market.
De La Calle initially introduced a unique fermented beverage called "tepache," rooted in Mexican traditions and flavors. Despite its cultural richness and health benefits, the niche appeal of tepache posed challenges in penetrating the broader U.S. market. Recognizing the need for a broader appeal while maintaining authenticity, De La Calle transitioned its identity to "Mexican soda." This strategic shift aimed to tap into both general American consumers and the rapidly growing Latino demographic in the U.S. who have a cultural familiarity with Mexican sodas.
This blog post delves into De La Calle's rebranding journey, examining the rationale behind the transition, the challenges encountered, and the strategies implemented to ensure a successful market repositioning.
De La Calle's Original Positioning
The Birth of Tepache in the U.S.
De La Calle, meaning "from the street" in Spanish, was established to bring the traditional Mexican beverage, tepache, to the U.S. market. Launched in 2021, the brand leveraged a family recipe that co-founder Rafael Martin del Campo inherited from his grandmother in Mexico City. Tepache, a fermented drink made from pineapple rind, is a staple in Mexican street food culture, known for its probiotic benefits and unique flavor profile.
Initially, De La Calle positioned tepache as a high-end fermented beverage, akin to kombucha. This upscale positioning, while attractive, limited its appeal due to the unfamiliarity of tepache among the broader U.S. consumer base. The brand needed a more relatable and encompassing message to reach a wider audience.
Challenges Faced
The main hurdle was the product's niche appeal. Many consumers were unfamiliar with tepache, and those who did know about it weren't enough to sustain substantial market growth. The sophisticated positioning might have created an impression of exclusivity, deterring potential customers looking for a more accessible and mainstream beverage option.
The Rebranding Process
Transition to "Mexican Soda"
Understanding the need for a broader market appeal, De La Calle rebranded from a fermented beverage to a "Mexican soda." This rebranding aimed to resonate with general American consumers and the burgeoning Latino community, who are already familiar with Mexican sodas. The term "Mexican soda" instantly evoked a sense of cultural authenticity and familiarity, unlocking existing demand.
Packaging and Messaging Simplification
A key strategy in the rebranding was to simplify and clarify the product's packaging and messaging. The company updated the packaging to prominently feature "Mexican soda," ensuring it resonated with the target market. Simplifying the can's design avoided attribute overload, making the product easily identifiable and appealing on the shelves.
Price Adjustment Strategy
To make the product more accessible, De La Calle reduced its price point from $3.29 at Whole Foods to $2.49 at more widely frequented retail locations. This price adjustment was crucial in attracting a broader consumer base, enabling more spontaneous and frequent purchases.
Adjusting Production and Distribution Strategy
Making the Product Shelf-Stable
To support the new pricing strategy, De La Calle altered its production process to make the beverage shelf-stable. This change eliminated the need for cold shipping and storage, significantly reducing costs and logistical complexities. Achieving shelf stability without compromising quality allowed the brand to maintain competitiveness while operating efficiently.
Expanding Retail Presence
De La Calle's distribution strategy aimed to place the product in both mainstream and ethnic grocery stores. By doing so, the brand positioned itself in locations where potential customers were likely to shop. This included Latino grocery stores such as Superior and Cardenas Markets, along with continuing their presence in Whole Foods, Kroger, and other large retail chains.
Embracing Broader Markets While Staying Authentic
Maintaining Cultural Authenticity
Despite the broader market appeal, De La Calle remained dedicated to its roots. The brand's mission of introducing an authentic Mexican beverage to a wider audience stayed intact. The slight shift in branding from "tepache" to "Mexican soda" did not dilute the brand's cultural essence but rather broadened its reach without losing its authentic charm.
Simplifying Without Losing Essence
The rebranding effort focused on subtle yet impactful changes. The transition from "tepache" to "Mexican soda" significantly simplified consumer understanding while retaining the cultural narrative and health benefits. This approach showcased the power of strategic minor adjustments to propel brand growth and consumer acceptance.
Conclusion
De La Calle's rebranding journey underscores the importance of adaptability and strategic reinvention in the beverage industry. By transitioning from a niche fermented beverage to a more universally appealing "Mexican soda," De La Calle successfully broadened its market reach. The rebranding process involved careful consideration of market dynamics, consumer behavior, and cultural authenticity, leading to a more accessible and appealing product.
The rebranding also demonstrated the impact of pricing strategy, production adjustments, and thoughtful packaging redesign. De La Calle's story serves as a compelling example for other brands looking to navigate market challenges and scale sustainably while remaining true to their roots.
FAQs
What is De La Calle's original product tepache?
Tepache is a traditional Mexican fermented beverage made from pineapple rind. It's rich in probiotics and has a unique, mildly tangy flavor.
Why did De La Calle rebrand to "Mexican soda"?
To broaden its market appeal and resonate with a wider audience, including the growing Latino demographic familiar with Mexican sodas. The rebranding aimed to simplify the product's message and appeal to general American consumers.
How did De La Calle manage to lower its price point?
The brand made the beverage shelf-stable, eliminating the need for cold shipping and storage, which reduced production and logistical costs. This allowed for a more affordable pricing strategy.
Where can I buy De La Calle products?
De La Calle products are available in various retail locations, including Latino grocery stores like Superior and Cardenas Markets, as well as mainstream chains like Whole Foods and Kroger.
Did the rebranding affect De La Calle's authenticity?
No, the rebranding maintained the core cultural authenticity of the product. The transition from "tepache" to "Mexican soda" aimed to enhance accessibility without compromising the brand's essence.
By understanding and executing these strategic shifts, De La Calle has managed to capture new customers and ensure sustained growth in an ever-evolving market.
