Barbara Semlitsch – Warsteiner

In the ever-evolving world of fast-moving consumer goods, staying relevant requires more than just maintaining a strong market presence—it demands constant innovation, deep consumer insights, and strategic brand positioning. This interview with Barbara Semlitsch, Head of Market Intelligence at Warsteiner Group, provides an in-depth look at how one of Germany’s iconic beer brands navigates these challenges. From understanding the role of emotional connection in brand growth to the complexities of the innovation process, Barbara sheds light on Warsteiner’s strategic approach to securing its place in an increasingly competitive landscape.

Brand positioning in a competitive market

Warsteiner’s approach to brand growth is deeply rooted in its commitment to maintaining and enhancing its market position within the highly competitive beer industry. The company recognises the importance of standing out in a saturated market, particularly in the pilsner segment, where products are often seen as interchangeable. “We deal with challenging, competitive conditions within the FMCG market. So like many other brands in this industry, we aim to increase both sales and market share,” Barbara says.

These two are the most important quantitative metrics, but qualitative metrics are also used to assess brand health. The qualitative metrics consist mostly of funnel metrics from brand rankings, such as Awareness and First Choice. Warsteiner already has a high brand awareness, therefor it is important to focus on the First Choice measure. Barbara talks about First Choice as brand desirability or brand love, which is crucial to assess in order to help guide Warsteiner in developing its brand.

To stand out in a saturated market, Warsteiner recognises its need to emotionalise its brand; “Since Pilsner makes up fifty per cent of the beer market—there’s a need to emotionally charge the brand to create differentiation. That’s why we continuously work on the brand image, to differentiate ourselves from the competition,” Barbara says. To differentiate itself, Warsteiner has chosen to position itself around “joie de vivre” or the joy of life. This aims to create a deep, resonant connection with consumers, ensuring that Warsteiner remains not just a choice, but the first choice for consumers on various drinking occasions. This strategy is vital for sustaining brand loyalty and driving growth in a market where consumer preferences are constantly evolving.

“For different occasions, there are different values, but ideally, you want to be the first choice for as many occasions as possible when it comes to beverages or beer.”

Innovation and product development

Innovation is at the core of Warsteiner’s strategy to foster brand growth and reach new buyers. “We want to reach new customer groups, so a key objective is to regularly review the portfolio and think of new products,” Barbara says. Nevertheless, Warsteiner approaches innovation not only by developing entirely new products but also by refining and adapting existing ones. This includes introducing new packaging designs and exploring other beverage categories, such as non-alcoholic drinks, in response to shifting consumer trends. An example of a recent successful innovation is the natural Radler introduced in 2023. Coming in a new bottle design, with natural ingredients, the new Radler became a success among natural Radler drinkers. However, Barbara highlights the lengthy development process behind innovations, which can take up to two years for a new beer. This is due to the rigorous quality checks and standards that must adhere to the purity law.

Additionally, consumer insights play an important role; if a taste test doesn’t yield satisfactory results, it requires repetition, leading to a longer development process. It also happens that internal stakeholders’ opinions about new product innovations differ, which may lead to delays or missed opportunities.

“There have been great ideas, that didn’t catch on at the time and were quickly withdrawn. However, in the current zeitgeist, these concepts could work well, perhaps with updated designs. For instance, reduced-alcohol products with a modern look might not have been right before but fit today’s trend toward low and non-alcoholic products,” Barbara exemplifies. Despite these challenges, Warsteiner understands that regular innovation is essential for attracting new customers and sustaining market relevance.

“There have been great ideas, that didn’t catch on at the time and were quickly withdrawn. However, in the current zeitgeist, these concepts could work well, perhaps with updated designs.”

Consumer insights and market research

Warsteiner’s strategic decisions are heavily informed by consumer insights and rigorous market research, underscoring the importance of understanding consumer behaviour in driving successful innovation.  The company utilises a range of tools to gather data on consumer preferences. Historical sales data is also analysed to assess potential. This helps guide the development of new products and refine existing ones.

In addition to internal product development, Warsteiner also collaborates with external partners, including universities, to gain fresh perspectives and explore new ideas, particularly for younger target audiences. The university collaboration involves developing market research and marketing questions with students, who then dictate their study time to create concepts that provide Warsteiner with inspiration for new products. Not only does this provide Warsteiner with new ideas, but it also helps the company from getting stuck in its own ways of thinking. Barbara elaborates: “It’s fascinating to explore how far you can stretch a brand that might traditionally represent something else. This isn’t about visual changes but rather experience and brand association. It’s an intriguing topic, especially if you’re thinking of expanding into soft drinks.”

This data-driven approach allows Warsteiner to anticipate market trends and tailor its offerings to meet evolving consumer needs. By placing consumer insights at the heart of its innovation process, Warsteiner not only enhances its product portfolio but also ensures that its innovations are aligned with market demands, thereby reducing the risk of product flops and maximising the potential for success. Barbara concludes; “I think innovation is crucial for brand growth and will remain so. It’s a powerful lever, especially now with new tools in AI and digitalisation, which offer numerous possibilities for expanding the field and accelerating processes, particularly in the early stages.”

“I think innovation is crucial for brand growth and will remain so. It’s a powerful lever, especially now with new tools in AI and digitalisation, which offer numerous possibilities.”