The Island Soda Story
Big Bright Flavor in Colorful Cans, Island Soda Establishes a Unique Market Niche in the Pacific
In the land of searing sun and florid tropical shirts, a small Seattle-based company is making steady inroads in the competitive soft drink market. Here in the Pacific Islands, where quenching one's thirst is a matter of survival, the daily trip to the market for a soft drink is as ingrained as the daily cup of coffee in the U.S and Canada. Economics also play a big role in the island nations that sweep across the Pacific from Australia to Hawaii. Nearly everything in this region must be imported from the far east and Australia, New Zealand or the U.S. Mainland. And the cost for a canned soft drink at retail, including ocean transport, duty, customs charges, and retail markup, can easily reach the US$1.00 mark.
The Pacific nations comprise a different world of low-key business and laid-back lifestyle. This contrasts with the hyper competitive major markets where the mega-international bottlers, such a Coca Cola and Pepsi, pour millions of advertising dollars to gain market share. Island Soda-brand fruit-flavored carbonated beverages, on the other hand, picks up one mom and pop island convenience store after another, turning a profit with every sale. In a practice best described as guerrilla marketing, Island Soda is popping up in island after island, spending little on promotion.
The business strategy of Island Soda has been to run "under the radar" of the major brands and pass the significant savings onto the retailer and the consumer. The marketing cost for Coke and Pepsi can add up to nearly half of the beverage wholesale price, according to industry experts. By eliminating overhead and working from modest offices in downtown Seattle, founder and president of Aspen International Export, Glen Milliman, stays to the value-marketing course.
Milliman started Island Soda nearly ten years ago. The University of Washington economics graduate was selling frozen poultry and grocery items to Tonga business when he ran into a major private-label bottler who had excess capacity in its Southern California bottling plant. He quickly developed a line of fruit and citrus-flavored soft drinks, which mirrored the best sellers of other brands, and launched Island Soda in 1992. Now, the carbonated beverages have found a welcome home on the shelf and in the cooler of many islands at a low wholesale price for a case of 24 cans.
To further build the brand beyond a generic product, Milliman turned to Patty Huchinson, a friend and San Francisco Bay Area artist, to create a line of unique, tropical-flavored packaging that would reflect the naive folk artwork popular in the Pacific islands. With the blink of an eye, Island Soda - as a value brand - was born. It is wrapped in colorful tropical colors and emblazoned with the distinctive "barber pole" palms that have become the brand's trademark. Islanders responded to the bright flavors and colorful packaging. Thus Island Soda has become a staple in the Micronesia, French Polynesia, the Solomon Islands.
As distinctive as the packaging, local marketing efforts took a unique turn, as well. A local distributor in Pago Pago, took on the line and sold large quantities of the soft drinks to families in mourning. In these parts of the Pacific, when a family member dies, others in the clan will come from far away to feast and drink soda for several days. In the process, many cases of soda will be consumed. Soon, Island Soda-logoed umbrellas were sprouting at cemeteries and funerals.
In addition, local trucks were painted in Island Soda livery and the popular yellow Island Soda t-shirts became a hot item with the younger generations.
For more information
Terry LaBrue, APR
LaBrue Communications USA
(425) 427-8481
(425) 427-8198 fax
tlabrue@earthlink.net
