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3 Reasons Aperol have completely shot themselves in the foot (… they’d do it differently if they started tomorrow)
Dan Pope
March 01, 2024
3 Reasons Aperol have completely shot themselves in the foot (… they’d do it differently if they started tomorrow)
Maybe, just, maybe the best day of my life.
A surf contest in Costa Rica. Under the melting afternoon sunshine, the cool zephyr kissing my face with its salty licks. Palm Trees, chilled and totemic, relaxed and regal, with their long droopy languid leaves swaying in the wind like Giant Drunk Rastas.
I was surfing. Course I surf, boi.
Surfing my way through the Aperol-genies. HAHA-hahahaha.
Little Orange Burning Globes of ohhhh-whadda-lovely-time. Quaffing back Goblets of Orange like a squiffy Gargantuan Orangutang.
Frank Ocean fumbled out the speakers and splashed and danced in the burning sun.
Chinning Aperol. Channelling my Chanel Orange.
’ ’’’ Lost, Lost in the Heat of It All, Miami, Amsterdam , Tokyo, Spain.
Swim Good in the Ocean, Swim Fast through the Apeol, Drown in Drunk.
We sat around the table. Kids swung from trees and played with sticks and rocks and ran around and people weren’t on their phones and everyone soaked in that Guuuuuud Life and everything felt like we’d gone back in time 20 years and everything was just bliss.
A stiflingly curt juxtaposition to Sunday in the UK. Youngs Pub Sundays. Middle Class Families slam an I Pad, packet of Quavers and a FAB lolly in their kids poor fucking face - whilst they chortle and carouse and Har-har-har-har n Cha-Cha-Cha their way to the BAR-har-har.
Poor Little Theo and Noah and Pear and Bear. Catatonic Cruisers. Faces obliterated on the Fireman Sam SLAMMERS. Drowning in Disney Dopamine n’ Denim Dungarees. Pepper Piggin’-Out. Sergeant Pepper Pig and The Broken Kids Brigade.
We called a Huddle with a Canadian couple (in the piccy) called Logan and Kenzie. Who, I, foolishly, kept called Lorcan and Kelsey as I melted into an Inebriated Imbroglio.
We sat there and said “surely, c’mon? sureeeeely…. Aperol HAS to be the greatest drink of all time?”.
But then I got back to London… Andddddd it was all Yellllllowwwwwww.
Mellow-Yellow Mercenary. Yellow Cow Boy boots. Yeeeeee Haaaaa. New Sheriff in Town. Allora Spritz-is-Tha-Titz. Aperol Apocalypse: pending.
Had the pleasure of interviewing Dom Dalton last week, founder of Allora. Dom’s brand building approach is unique. Background in Operations at Nestle, Bear Snacks, before moving into sales at Soul Fresh and co MD at TRIP.
Allora is the challenger brand taking on Aperol. I am SO excited about this brand.
3 Reasons Aperol completely shot themselves in the foot (… they’d do it differently if they started tomorrow)
Value Add vs. Value Subtract
Many founders think about Value-Add.
Adding more flavours.
Adding new SKUS. Adding more formats.
Adding more categories through NPD.
Adding more activations.
We’re obsessed with VALUE-ADD. ADDING VALUE = ADDING REVENUE.
Don’t get me wrong, this is true and absolutely does work for so many brands. But there is another way: Value Subtract
Value Subtract is asking the question: “What can we TAKE AWAY but still keep the PERCEIVED VALUE for the consumer?”
Perceived Value of Aperol for consumers: “we want a tasty, zesty refreshing Summer spritz drink to enjoy with friends”
How many consumers ACTUALLY care that Aperol has Prosecco in it?
Enter Allora’s genius: The power of Value Subtract.
Like all the best challenger brands, Allora found Aperol’s Achilles heel and attacked there. The achilles heel = The Prosecco.
The Genius of Value Subtract: taking things away + not changing consumers perceived valued = ADD revenue and value
Aperol Weak Spot One: Nightmare to Serve at Bars
Aperol, whilst high in demand, is an absolutely Bloody-bastard of a serve for bar staff. It’s not an easy drink to pour 150ml Aperol, 150ml Prosseco, 100ml Tonic Water.
Every time someone orders an Aperol Spritz, bar staff have to open a bottle of Prosecco (costly) and because of the three components to the drink, it takes TIME to Serve.
Increase in Time to Serve = slows down service = miffed customers = eventually so miffed they leave. Just think of The Ship in the Summer.
Allora is a WAY easier pour. Half Allora + half tonic. That’s it. Simples.
Allora, by focusing on Value-Subtract solve a HUGE headache for operators = faster serve + easier serve.
Allora, by focusing on Value-Subtract solve a HUGE headache for consumers = faster serve = less queues = happier.
And, even when you take away the Prosecco, the perceived value to the consumer doesn’t change.
Perceived value of Allora = refreshing spritz drink.
Perceived value of Aperol = refreshing spritz drink.
Value-subtracting is genius. TAKE AWAY the thing that’s NOT needed to ADD REVENUE.
Aperol Weak Spot Two: Missing the At Home Consumption Occassion
Following on from point numero uno. Because Aperol is a nightmare to make at a bar, it’s also a nightmare to make at home. Aperol are missing a HUGE at home consumption opportunity.
Imagine you want one or two Aperols on a Friday at 5pm.
Consumers have to go to BIG TESCO. Buy Aperol + Prosecco + Gin. It’s an EXTRA psychological hurdle.
Opening a whole bottle of Prosecco at home just for two drinks, seems wasteful. It’s an EXTRA psychological hurdle.
Unless you’re going to or hosting a cocktail party. How many times have you ACTUALLY had an Aperol at home?
You’re more likely to crack a beer or pour a G&T or wine. Why? Aperol is an EXTRA psychological hurdle.
The genius of Allora, like all great challenger brands, find the Achilles heel of your competitor. Attack there.
Allora is WAY easier to pour at home. It’s Allora + Tonic. ABC, Easyyyyy as G & T.
Allora can unlock a whole new market “At Home Consumption” which is much harder (but not impossible) for Aperol to access.
Value subtract to unlock HUGE opportunities no one sees.
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Back to Aperol
Aperol Weak Spot Three: Aperol are giving away half their money
Every time some one orders an Aperol at a bar. Aperol give away half their money to a Prosecco business. Aperol are literally pissing money up the wall.
Barman or Barlady pours a Aperol Spritz:
150 ml Aperol
150ml Prosecco
300ml Tonic
Half the finished drink is a different brand i.e. Prosecco and Tonic.
Allora is
300ml Allora
300ml Tonic
Allora capture double the amount of revenue per serve by subtracting Prosecco.
Back of the Fag Packet Maths
Barman or Barlady pours an Aperol Spritz:
150 ml Aperol (£1)
150ml Proesseco (£1)
300ml Tonic (£1)
Aperol make £1 per Aperol sold.
300ml Allora (£2)
300ml Tonic (£1)
Allora make £2 per Allora sold and bar staff go through the liquid quicker (twice as much per pour) = higher rate of sale.
Allora make DOUBLE the cash margin per drink sold vs. Aperol.
All by value-subtracting the Prosecco.
Consumer perceived value doesn’t change: still a refreshing zesty drink
Value-Add is the common way of thinking.
Can’t wait for you to listen to this conversation, it’s an absolute belter.
In the words of Rick Rubin: Be a Reducer, Not a Producer
Thanks so much for reading!!!!
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