Green Wolfie

Eco is hip, sexy and popular. There is no other expression that describes this massive German trend better than the headline that appeared in the leading German Sunday paper Frankfurter Allgemeine Sonntagszeitung: “Die Bionadisierung der Gesellschaft” or in English “The bionadisation of society”. We love both, the headline and the organic soda Bionade. Why? Bionadisation of the society doesn’t describe a success story of lemonade only.

Bionade has become a symbol for a better world and a better lifestyle, says Georg Meck, editor of Frankfurter Allgemeine Sonntagszeitung: healthy, open-minded and full of enjoyment. Bionade has become more than just an organic soda with elderberry, lychee, herb, ginger-orange and the new, sporty “active” flavour. It hit the German Zeitgeist in a way we have very rarely seen before.

So where did the success story start? In Ostheim vor der Rhön, a small town in Bavaria - a typical setting for a German fairy tale. The protagonists are the hard working but struggling old brewer family Peter-Leipold who were about to lose their business.
Until Dieter Leipold started experimenting and began to brew against all odds: 1. They brewed lemonade instead of beer. 2. The lemonade was sour instead of sweet. 3. It no longer tasted of apple or lemon but forgotten fruits such as elderberry. 4. And it was organic. But those who back then in the ’80’s thought that the heroes of this story would run bankrupt soon were proven wrong: Bionade now hit the German Zeitgeist and became the new water for the Lohas.

Why did the Bionade magic happen? What’s the secret? Bionade seems to have all the components a modern eco-brand needs in Germany and this doesn’t mean the word bio in its name. Lohas fell in love with Bionade because they like the story behind the brand: Brewing lemonade instead of beer reflected a new health consciousness approach. Substituting alcohol with organic soda was at the same time such an unconventional thing to do that the early adopters within the Loha community started drinking it. Bionade was a new organic product that had the potential to differentiate itself from the evolving eco-masses. Distribution strategy also helped a lot since it was first introduced in the trend city Hamburg only. Was sold in a few bars only. And therefore was for the really hip eco only. Learning: Even the better world is exclusive.

But the mission of bionade goes beyond health and trendiness: Bionade managed to keep the naïve charm of an old family business, especially when Peter Kowalski, son of the Bionade inventor, declared that he counts on his 10 year old daughter’s opinion when a new taste is developed. So, in times of globalisation, Bionade turned out to be the desired oasis of traditional family business - a company that works with regional suppliers and supports farmers in Bavaria. This is the story so far. Follow the next entry to continue the discussion and read about upcoming challenges for eco-brands.

The Bionade story by Deutsche Welle TV:

Following the success story of the organic soda Bionade, the favourite drink of German Lohas, more lessons will be learned in the close future. As Bionade plans to expand not only in Europe but also in the US and Asia, it will be an interesting business case to follow: According to a leading political magazine, Spiegel, “perhaps Bionade will be the first German company to prove that organic doesn’t necessarily mean small”. However, the company is self-confident. It announced to increase the price by 20 % per bottle. The explanation is fairly unusual, they don’t mention rising energy and ingredient costs, but declare it a strategic measure to maintain its premium brand positioning. Bionade simply wants to be recognised as the innovator and the original. The brand wants to differentiate itself from big German breweries that copied the organic soda success story and are now competing heavily with Bionade.

The new print ad campaign to justify higher pricing

“The biggest achievement of our competitors is that they copied us even before the Chinese did.”

How you can impressively fail shows another important German green-player: The eco-supermarket chain Basic recently faced massive losses when the discounter Lidl bought 23% of the eco-chain. Sales decreased by 20% when this was announced and Basic lost loyal eco suppliers and customers which nowadays seems to be the biggest threat for eco-brands, as journalists declare a shift from “boycott” to “strategic consumption”. Meaning, Lohas won’t boycott since they love consumption, they will simply swap brand loyalty. So once you loose a Loha, he will find himself a new green brand fast. And you might have lost him forever.

At the same time Lohas have all the potential to become the most loyal consumers: They are not only “strategic” but also highly “emotional consumers” – as they are consuming for a better eco-ego. So the Zeigeist of the new German eco generation would no longer ask brands: “Are you green?” but “Do you make me feel green?” which is a by far more self-focussed approach than the community loving eco-hippies used to have in the 70ies and 80ies. Bionade might answer the question shortly whether internationally expanding eco-brands will still make Lohas feel green. We will be following the roll-out in the U.S. with interest.