Lifestyle brands in the beverage industry

It’s a term being used by increasingly by brands in the US and further afield. It’s used with everything from coffee to energy drinks? So what does it mean?

“A lifestyle brand is more than a product on a shelf, it’s a brand that taps into identity, values, and culture,” explains Oli Russell-Cowan, founder of global brand building agency Unchartered Territory.

“It’s not just associated to a community, it belongs to the community.”

And that’s particularly significant in today’s beverage market.

“In beverages, this is powerful because a lot of categories are crowded and functional benefits alone aren’t enough anymore,” continued Russell-Cowan. “A lifestyle brand gives people something bigger to buy into, it’s how to associate with the brand, an ethos, a story, a tribe. Done well, it creates emotional connection, deeper loyalty and organic advocacy far beyond what paid media can achieve.”

Putting that into its simplest terms is about building a practical, tangible connection, elaborates Chenlin Tong, Associate Director at Brand Finance.

“A lifestyle brand is one that creates emotional connections by integrating into consumers’ daily life or personal identity,” he said.

“It becomes associated with specific moments or rituals, for example, the “3pm Diet Coke” has become a common afternoon pick-me-up used to combat the post-lunch, afternoon slump.”

Meeting consumers where they are (or where they want to be…)

That connection can be practical, emotional or aspirational. US canned seltzer brand Talkhouse Encore is inspired by the iconic Hamptons venue, Stephen Talkhouse, and founded by Ruby Honerkamp, whose family founded and manages the venue.

Each drink captures the essence of what you’d order at the bar: with a fruit-forward line in seven flavors made from real spirits, fruit juice and premium ingredients.

As Ruby Honerkamp, CEO and co-founder of Talkhouse Encore, puts it: a lifestyle brand “is not just about what you drink, but what that drink says about you.”

“Talkhouse Encore is built to mimic the feeling and vibe you get when you’re out at your favorite bar surrounded by friends you know and those you haven’t met yet,” she said.

“They’re drawn to the brand because it fits naturally into the moments that matter to them – whether that’s a beach day, a backyard hang, or a night out with friends.

“Being a lifestyle brand means we’re part of those experiences, not just in their hands, but in how they connect with their community and live their lives.”

Drip Water, meanwhile, has built itself of the culture of its co-founder: BAFTA-winning TV chef and rapper Big Zuu.

The brand prides itself as being authentic to music, sport and culture as a central tenet: not something bolted on as an afterthought.

It has partnerships and collaborations with the likes of UFC, Tottenham Hotspur Women, Matchroom Boxing and Live Nation: where the tone of voice speaks directly to fans.

All this a category where water is usually commoditized.

Loyal consumers

So why become a lifestyle brand? There are two main advantages.

First, an emotional connection drives a connection and thus, hopefully sales: with consumers drawn to the brand on shelves (In its consumer research, Talkhouse Encore found that 61% of Gen Z participants surveyed choose the brand because of its vibe).

Secondly, an emotional connection is a lasting emotive element that should drive brand loyalty over the long term.

“When brands adopt a lifestyle brand approach, this kind of positioning naturally drives higher engagement, as consumers feel aligned not just with the product but with the brand’s ethos and community,” said Tong of Brand Finance.

“Lifestyle brands therefore amplify the positive impact of engagement on consideration by fostering meaningful, long-term consumer relationships.”

And because these relationships are often built up slowly and organically, they’re ones that are most likely to stick.

Style over substance?

The big question, at the end of the day, is whether lifestyle branding is simply style over substance.

“Not if it’s done properly,” counters Russell-Cowan of Unchartered Territory.

“In fact, lifestyle branding only works if the substance is strong, product quality, supply chains, distribution and customer experience have to deliver.

“The ‘style’ is how you tell the story, amplify the ethos and create emotional pull. The best lifestyle brands balance both: they’re credible businesses first, with creativity layered on top to generate disproportionate cultural and commercial impact.”