DRINKS BRANDS JOIN THE FUN

More recently, drinks brands have been getting in on the action. Pepsi’s first NFT collection, the “Pepsi Mic Drop” features designs of its drinks, such as Zero and Wild Cherry, with illustrations of microphones. Offered free of charge, in a market driven by extreme pricing, the aim is for them to be inclusive, while also making a statement about the scope and scale the brand sees NFTs taking in the future.

Speaking to Bitcoin.com News, Todd Kaplan, Pepsi’s vice president of marketing said: “Pepsi has always been a brand with a strong heritage in music and pop culture, so it’s only fitting for us to bring that legacy into the new world of NFTs with a ‘mic drop’ of epic proportions.”

Coca-Cola also recently sold its first ever NFT, raising $575,000 for charity. The Friendship Box reimagines a vintage Coca-Cola cooler with dynamic motion and illumination featuring three other NFTs inside. Comprende? The winning bidder also received a fully stocked Coca-Cola fridge.

Budweiser’s NFT Beer Can Collection features 1,936 unique digital cans (representing the year of its first can), made using archived photos, ads and design, selling at between $499 and $999 a piece. Each NFT serves as an entry key to the Budverse, unlocking exclusive benefits and rewards.

And now Dictador Rum and Lalique offer a rum bottle NFT that can be bought, stored and enjoyed through the platform, BlockBar. Once purchased the NFT gives you virtual and physical access to “unique experiences” including a private dinner with master blender, Hernan Parra.

SO WHAT’S IN IT FOR A BRAND?

Again, kudos. Embracing this cutting edge and much hyped tech early, lends these brands a cool-factor, a prestige, a halo effect of being cutting edge. And with NFTs in their infancy, of course, they’re useful for generating headlines too. Hype sells. There are also communities of like-minded consumers that are following specific NFTs; special interest groups if you like.

These digital collectables are being seen as the latest way for brands to reach engaged, motivated and enthusiastic consumers tuned into their products. However, there is little evidence that these groups are very big, or that individuals in them will become ambassadors of any form.

But joining the trend for the sake of joining it — as it seems many brands now are — has its pitfalls. Firstly, there is still much unknown about the tech; McDonald’s recent blunder being a case in point. Also, NFTs are not without their controversy. There’s mounting headlines concerning the detrimental eco impact of crypto currency mining and NFTs are not without an environmental cost.

And of course, there’s still a vast majority of consumers who either aren’t engaged, or are dismissive of NFTs. At the moment, they are reaching a very small market. It’s also worth remembering that NFT’s are not these brands area of expertise and the market for NFTs is not necessarily their market, ergo the consumer is not necessarily their consumer. Are brands then simply throwing arrows in the dark?

ARROWS IN THE DARK?

It’s interesting that brands, particularly drinks brands, are attempting to lure their existing core consumer into the world of NFTs with the promise of real-life exclusives. This will continue to be key. But what are the advantages to brands of introducing their core consumers to this complex, murky and vague new world?

In short, pulling new consumers into NFTs actually leaves brands with a job on their hands, as it becomes their responsibility to educate consumers — especially when asking them to part with their cash — on what NFTs are and what they are not. The potential for negative blowback seems large. For example, when it comes to NFTs from brands, it is unlikely consumers will be purchasing full ownership, or even exclusive use of a specific iteration of a logo or image.

So, we ask again, what are consumers and brands, actually getting? Are NFTs the ultimate capitalist heist, a shiny new way of getting consumers to part with their money for absolutely diddly squat? Only time will tell if image really is everything. But as more brands gleefully jump in on the trend in a bid to keep up and be seen as cutting-edge, expect some legal — and reputational — growing pains.

DOES CATERING FOR A MASS DEMOGRAPHIC MEAN BEING A JACK OF ALL TRADES AND MASTER OF NONE?

Functional drinks seem to have identified a niche. Yet with gaming one of the most popular pastimes in the world, with an estimated 3.2 billion gamers worldwide, could they ever really? We ask, who are gaming drinks really for?

It’s a truth universally acknowledged that gamers don’t want to move from their screens. Ever. Marathon gaming sessions require sustenance. But when winning and fully involved in the game, you better be quick.

Gaming drinks began as a twist on the energy drink, providing a caffeine hit to keep players alert and hydrated. Yet ever sophisticated blends of caffeine, vitamins, prebiotics, nootropics et al are now coming to market, claiming to boost mental endurance, focus and agility, without an energy slump. Many, like protein drinks for working out, come in powdered form, ready to be turned into a meal replacement shake. However, with big money to be made, a number of traditional and/or global soda brands are also now trying to claim a piece of the pie.