99,000 bottles of brand on the wall

The beer run. Alive with anticipation. Purposeful in its mission. Consumed by choice?

A walk down the beer aisle today is less like a grab-and-go, and more like a rabbit hole.

There’s the incumbents: Budweiser, Miller, Coors. The imports: Modelo, Corona, Heineken. The classic crafts: Sam Adams, Yuengling, Brooklyn Lager, Sierra Nevada. Then there’s the rest of the iceberg. Rhinegeist, Bell’s, Harpoon, New Belgium, 3 Floyd’s, Cigar City, Founder’s, Kane, Blue Point, Sixpoint, Ballast Point… you get the point.

Proliferation in the beer market has exploded over the past decades. In 2010, there were 1,758 craft breweries in the United States. As of 2024, there are 9,538. This expansion has introduced a plethora of choice into the consumer experience, as well. The average beer distributor carried 1,174 unique SKUs in 2018 – up from 185 in 1999. 

This trend extends beyond beer, of course. Move one aisle over and you’ll find myriad sparkling water brands—Aha, Bubly, Lacroix, Nixie, Spindrift, Waterloo, Hint. Another aisle further will reveal a chilled freezer of the hottest ice creams—Jeni’s , Blue Marble, Van Leeuwen, Halo Top. And it’s true, retailers encourage this propagation of more flavors and new SKUs. Manufacturers are happy to oblige too, driven to maximize their share of shelf. But it’s not just the supermarket. Consider athleisure. Beyond Lululemon and Athleta, there’s Alo, Vuori, Outdoor Voices, Fabletics, Rhone, and more. A steady stream of proliferators likely coming to an Instagram ad near you.

So yes, proliferation is dizzyingly familiar in the consumer sphere. What about in traditional corporate industries?

Healthcare has seen its share of multiplicity. Whether with insurtechs (Oscar, Clover Health, Bright Health Group, Friday Health), member-based doctors (Tia, OneMedical, Paisley), or even pharmacies (Wisp, Hims, Hers, Nurx). Financial services have experienced a similar boon. From payments (Klarna, Afterpay, Affirm, Sezzle, Splitit) to banking (Chime, Current, Revolut, Ally, Wise, Dave).

These proliferators make similar promises, seeking to disrupt the category and bring down barriers to entry, often with tech-native methods and a startup spirit. Accessibility is a key message – universalizing products or categories typically difficult to understand or break into (e.g., Hims & Hers were founded to “break down barriers for people when it comes to obtaining quality healthcare”). Ease of use is touted as a common benefit, with simpler and superior user experiences in comparison to “clunky” incumbents who can feel stodgy (e.g., Revolut’s mission to “create an easier money experience” manifests as constant improvements to the UX). Lower cost underpins their stories. Same with category redefinition – proliferators promise not to be like everyone else. (Chime is a “financial technology company – not a bank.”)

In fact, it’s a lot of not. Not your typical healthcare company. Not just a credit card. Not your father’s bank. Proliferators carry a certain cool factor or social currency. Recall Robinhood’s explosion on to the scene, riding its shareability to build awareness and engagement.

Some players are “one trick ponies,” doing one thing well at the expense of a well-rounded infrastructure. The aforementioned insurtechs get dinged on core operations (customer service, sales), which can cause financial troubles when growing too fast.  Other brands fall victim to “360° innovation,” mistaking reinvention as disruption, and winding up with a product or service that already exists. Remember Via, the former transportation proliferator who offered cheaper, shared rides along fixed routes? Some of you may recognize this stroke of genius, or even have a fun name for it, like “the bus.” Finally, flash-in-the-pan proliferators can exhibit a “Tom and Daisy Buchanan effect,” crashing out and leaving their customers in a wake of disarray—something incumbents are far less likely to do. Friday Health, for example, shut down in only eight years; members had to find new coverage and restart their deductibles mid-year.

Good or bad, proliferators are not to be ignored. While some brands proliferate to protect share, others are trying (or succeeding) at disrupting their space, driving change in the category and impacting the consumer experience. Disruptors can push incumbents to invest in new products and technologies. They advance consumer-first innovation and promote competition. But, disruptors are a rarer breed. The rest of the proliferators are often just playing the game to survive.

These rules of the road can help you navigate through proliferation in your category.

First, understand the role you play in your customers’ lives. Don’t fall into the trap of just worrying about what potential competitors are doing – obsess about what your potential customers are needing. The job you’re accomplishing for consumers may not require you to move fast and break things.

Chasing innovation can create external and internal complexities. At the core, you need to define what you stand for, why you exist, and who your audience is. If you don’t know that, you may have a bigger problem. Then, with a clear brand strategy, you can assess the extent of proliferation’s impact, and how you might respond. One way to think about: disruption is worth noticing, mere proliferation is not. Another way to think about it is like this:

The reality is, you’re never neatly defined by one of those quadrants. Sometimes, it pays to use your masterbrand to combat proliferators with pre-built brand equity. But that’s not to say you can’t ever create cool new things. In fact, creating a strong sub-brand that’s visually and verbally distinct from the masterbrand can reach new audiences and/or reinforce your brand equities in new ways. It may be a signature new offering, or it may be a fundamental blurring of the lines you once drew around your business. IBM created Watson to stretch its limits from machines to intelligence more broadly. Prada launched Miu Miu to capture a more playful alternative and reach younger audiences. Being agile and creative may find you new areas for growth, or new customer bases entirely. But you won’t know unless you experiment with your masterbrand.

A key concern in responding to proliferation is creating overwhelming choice. It’s valid. But the best way to solve this issue lies in “choice architecture.” How you name your products, organize and position your portfolio, structure and design the actual UX. The process of innovation should be messy and fun – the outcome should be neat and tidy. 

So be purposeful. Stay disciplined. Get creative. And you’ll navigate confidently through overflowing choice.

Now… who’s thirsty?