Case Studies
Hebridean Liqueurs
Hebridean Liqueurs was founded in 1994 by husband and wife team, Roy and Penny Lewis and two close friends. The couple had identified a shortage of tourist-aimed products in the Lake District (other than Kendal Mint Cake) and hit on the idea of inventing a whisky liqueur. None of the team had any experience in the drinks industry, but they had a great deal of determination to make their business a success.
The Strategy
They hit on the idea of producing a whisky liqueur that was less sweet and less strong than traditional brands. They came up with the "Original Lakeland Liqueur", a blend of caramel, butterscotch and whisky.
They soon branched out and produced "Hebridean Whisky Liqueur" inspired by visits to the Hebrides and packaged it in an eye-catching tall black bottle. Sourcing distinctive, unusual bottles and developing associated get-up is an important part of their strategy.
Roy Lewis, MD of Hebridean Liqueurs said, "The packaging for our products is essential, and it was part of our original marketing strategy to give every brand its own individual identity. That's why we package our products in very distinctive bottles, each of which is a different shape and colour. We also ensure that the design of labels and boxes is unique and all rights, including copyright, are assigned to the company".
Because the company places emphasis on brand development, it ensured that it applied for UK trademarks for all its brands. As well as using a patent agent, Roy Lewis also carried out his own research to ensure his desired brands were available for use.
The third brand was the "High Peak Liqueur", based on a dish from Derbyshire. The flavours are those which were used at the time when Blue John stone, a translucent semi-precious mineral, was mined in the area. In reference to this, Roy and Penny Lewis chose to package their liqueur in a cobalt blue frosted bottle, giving the brand its own distinctive identity.
Even though they built up trusted relationships with their suppliers, they keep the recipes secret. Although the core ingredients are supplied to the bottlers, the secret ingredients are added by Roy alone.
As the sales increased, Roy and Penny set about enhancing access to their customers, by developing a unique (trade secret) sales process focusing on direct sales in a creative fashion!
Extending the range, "William Shakespeare's Whisky Liqueur" was the fourth Hebridean Liqueurs product to be produced, harking back to Elizabethan times when spirits were mixed with oranges and caramel, packaged in an antique type bottle. Their most recent venture has been the launch of "Lord Nelson's Spiced Rum Liqueur", their fastest selling to date. Launched at the International Festival of the Sea in 2003, it has taken the market by storm, being the only spiced rum liqueur on the market in Britain.
Hebridean Liqueurs benefits from an additional income stream, generated by a licence agreement. The company which makes Kendal Mint Cake uses "Original Lakeland Liqueur" in liqueur truffles. In return for this, Hebridean Liqueurs receives a percentage of profits. Thus they are leveraging intellectual assets in new ways.
The most recent addition is a range of citrus liqueurs, produced by Russo in South Italy. They have signed an agreement with Russo to make them exclusive UK distributors of "Limoncello Liqueur", "Crema di Limone" and "Mandarino Liqueur".
The Success
Over 10 years of building brand awareness and unique flavours have resulted in the continued growth of a successful small company which now has five of its own products and the exclusive licence to sell another company's products in the UK. Hebridean Liqueurs has developed an additional income stream by entering into a royalty-generating licence agreement with another company, allowing it to use one of Hebridean Liqueurs' products in the production of liqueur truffles.
