Introducing Heaven Hill’s New Brand Prioritization Framework
As announced during the FY22 National Sales Meeting, Heaven Hill has established a new Brand Prioritization Framework. The framework has been simplified with fewer categories to improve the ease of use for both our employees and our partners.
At its core, this Brand Prioritization Framework has two purposes. Internally, the brand groupings are a key piece of our corporate strategy. As part of our Commercial Objective, Prioritizing the Current Portfolio, each of our brands falls into one of these four categories, which helps us understand the type of ‘player’ they are within our portfolio and how we allocate our resources such as marketing dollars, how our sales team should position certain brands, and to help guide our operations team producing our products. Externally, this tool is important for our distributor partners to know what to prioritize within the portfolio and to create alignment between Heaven Hill and the distributor.
New Brand Prioritization Framework
Growth Brands:
- Given current consumer trends and brand strength, these brands have high revenue and growth potential. These are the brands that we want to be the most recognizable and favored among consumers around the world. Therefore, we focus the majority of our resources and investment in them.
Foundational Brands:
- Foundational brands are critical in the execution of our corporate strategy, delivering on a range of strategic themes including scale, diversification, and premiumization.
- Some Foundational brands have promising growth opportunity and therefore are being nurtured to reach their full potential. Others are large (in volume and/or profit), important in their category, or provide substantial scale to the organization.
Allocated Brands:
- Perennially allocated products (meaning they are only available in a limited quantity, sometimes on a seasonal basis) that are highly profitable brands for retailers, distributors and ourselves. They round out our portfolio with interesting, highly sought after and award-winning products. We aim to leverage these products to further drive success for our Growth brands.
Tactical Brands:
- The opportunities for the Tactical brands are specific in scope. These products may be regionally distributed or have a channel focus, meaning they are only sold in the On-Premise (bars and restaurants) or in the Off-Premise (retail locations such as liquor stores, big box stores, and package store).
- A segment of the Tactical brands are high volume, low margin brands which provide considerable overhead coverage for manufacturing operations.
While this new Brand Prioritization Framework will not drastically change how Heaven Hill prioritizes and strategizes around our brands, it does provide a simpler, more streamlined framework for our employees and partners to utilize. The Brand Prioritization Framework and category assignments will continue to be reviewed annually and adjusted to reflect our current performance and priorities within the portfolio.
