Constellation Brands Announces a $100 Million Investment
Constellation Brands, the parent company behind some of the world’s most iconic beer, wine and spirits brands (think Corona, Ruffino, just to name a few), just announced a groundbreaking $100 million investment in Black and minority-owned businesses interested in creating and launching consumers’ next favorite brand.
Constellation astutely recognizes the opportunity to make investments that not only help the greater good, but are also good for business, align with their corporate value and have a meaningful impact on underserved entrepreneurial markets.
The Adventurous Drinkers Ready to Dive Into New Products
So, who are going to be our earliest adopters/influencers? To understand that, I analyzed those US consumers that love to discover and try new drinks –– these are the consumers that will be most ready and willing to give Constellation Brands’ new minority-owned offerings a try as soon as they hit the market.
We see that these “Discoverers” are split 50/50 with regards to gender, but roughly 13 million of them fall right in that sweet spot age range of 25 – 34.
So, what are Discovers’ buying preferences? Resonate asked people to pick words to describe the products they like to buy. When we compare these Discoverers to those that prefer to stick to what they know, these potential new customers are looking for products that they consider innovative and popular, but also keep an eye towards being good stewards of the environment.
The new product offerings launched as a result of Constellation Brands’ investment in Black and minority-owned businesses would be wise to push the envelope, innovate and give consumers something they haven’t seen before. They should emphasize efforts to focus on sustainability in production. Lastly, they should keep their finger on the pulse of what’s new and hot –– staying in touch with pop culture won’t hurt their marketing.
Who Are Minority Business Owners in the U.S. and What Matters Most to Them?
Now that we’ve answered the customer questions, we can turn to the entrepreneurs themselves. The process of creating a winning brand is costly and resource-intensive. The market is crowded and consumers are fragmented. So, who are the minority business owners in the US?
In the Resonate Ignite Platform, we looked at the intrinsic personal values of minority business owners in America. When compared to their White business owner counterparts, minority business owners, on average, share unique characteristics. As Constellation helps entrepreneurs develop products and marketing that are authentic, they should take into consideration the unique values and talents that Minority Business Owners bring to the table (or bar!).
For example, when compared to white business owners, minority business owners are over 2X more likely to be driven by the sense of admiration that comes with achieving one’s dreams. But it’s not all me, me, me. They are also 34% more likely to emphasize the preservation of traditions and customs, including those within family, culture and religion. They may be inclined to do things in a way that maintains continuity with the way they have always been done and may be more altruistic and sympathetic.
With those ingredients of tradition, preservation of customs & culture and a focus on achieving one’s dreams, I cannot wait to see what types of new and exciting brands emerge over the next few years.
Great brands do not become great by accident. They are great because they connect authentically with peoples’ values, motivations, dreams, and goals – aka the Human Element. Brands that understand their target market, and can turn that understanding into action, will continue to create more loyal customers year after year.
Want to learn more about how Resonate’s unique data can help your brand get at the Human Element, the deepest understanding of the U.S. consumer, can help align and inform product development, marketing and more? Request a demo of the Resonate Ignite Platform today.