Navigating Big Ideas: Building Breakout Brands

The best business builders are always on the lookout for big ideas.  So often, big ideas emerge as products that have transitioned into breakout brands by establishing a robust consumer connection that fuels superior growth and high levels of loyalty.

 I had mentioned that after attending one past Expo West Show, I felt that I had seen over a thousand products, but maybe only 25 breakout brands.  The question is, how can we expect to build breakout brands if we don’t fully appreciate what defines and drives these rising stars? 

 The value of this exercise leads to two opportunities:

 ·      For companies seeking accelerated growth, understanding the factors behind breakout brands can lead to the development of strategies that meaningfully increase sales.

 ·      For investors of all kinds, identifying rising breakout brands is an invaluable capability (whether it involves public companies, private equity, or allocating resources within a company’s portfolio of products).

Breakout brands have built or are building a loyal, engaged consumer following.

 For starters, identifying breakout brands can be a little tricky.  In part this is because many times two brands with similar short term growth trends will diverge as one continues to outperform over the long term while the other fades off like a falling star. 

 Most often a core difference is that true breakout brands have successfully developed a passionate consumer base.  Fueled by the capability to develop and build compelling consumer connections, these brands become the ones that can drive sustained growth and outperformance for years to come.

To highlight what a breakout brand might look like, we’ll use the example of Fogline Coffee – which is a micro-coffee roaster from the Northern California coast.  We’re purposely picking Fogline because it’s not well known and therefore, helps provide clearer insights without drifting into preconceived perceptions that we all have with more recognized brands.  It may not be a large enterprise, but among local coffee fans and tourists it is a much loved brand that captures some of the magic in this special place. 

 Fogline is based in Arcata, California in a beautiful section of the northwest where the cool currents of the Pacific run into a section of steep hills and mountains that create one of the few areas in the world where redwood forests thrive.  The micro-climate that this collage of nature creates produces fog that rolls through the redwood forests 200 days a year - providing a blanket of moisture plays a vital role in nourishing these giant trees.

 Inspired by these surroundings, Fogline started as a home roaster 20 years ago and over time developed an appealing brand name, story, mission, and packaging that combine to serve as beacons to a unique line of outstanding, special roasted coffees.  All of these areas represent potential drivers for breakout brands – which we detail in a broader set of guidelines in a follow up note. 

 While many “brands” connect on a rational basis with consumers, breakout brands have a far deeper, emotional relationship with consumers.   In the course of doing consumer groups with several breakout brands in the past, nothing is a more powerful driver of superior business performance than the vibrant consumer bonds these brands have created.  Consider the following consumer review as an example of how meaningful these consumer connections can be.

 “Fogline might just be the best coffee in the country.  It’s immediately evident from the quality of the coffee and espresso that Robb and the team are master roasters.  If you’re able, get him to talk about the thought and care that goes into selecting, roasting, and brewing the perfect cup will further deepen your appreciation for what they do (and you might even learn how to make a better coffee at home).  I live on the other side of the country but haven’t been able to stop thinking about the cup I had at Fogline – so I’ve since signed up for the Roasters Choice subscription and bought beans as gifts for friends.  Every touch from Fogline is thoughtful, personal, and clearly motivated by a deep passion for excellent coffee.”

 Those words illustrate that no matter how big or small a breakout brand may be - if it has a loyal, engaged consumer following we can learn from it.  Towards that end, our next newsletters will take a closer look at the drivers of breakout brands and how we all can build from some of their best practices.