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Transforming Tradition: The Evolution of a Herbal Liqueur

Timeless Brown Bag Cover, Known for Its Classic Charm

Alterations Marked in Underberg's Offerings, Exempting the Paper Wrapping on the Herbal Spirit
Alterations Marked in Underberg's Offerings, Exempting the Paper Wrapping on the Herbal Spirit

"The Timeless Twist" of Underberg: Reinventing an Alcoholic Tradition for a Modern Audience

Transforming Tradition: The Evolution of a Herbal Liqueur

Michael Söhlke, a seasoned insider of both large corporations and family businesses, is bringing a breath of fresh air to spirits company Underberg since 2020. Using a keen sense for numbers, brands, and people, he's reviving this 1846-born brand for the modern era.

Hailing from Rheinberg near Cologne, Underberg, despite its long lineage and sixth generation of family ownership, isn't shy of change. Case in point, the booming online shop and creative use of social media platforms. Instead of being solely a digestif, the petite Underberg bottle is now a festival regular.

A Twist on the Traditional: Papered Perfection

The classic paper wrap on the Underberg bottle? Absolutely indispensable. As Söhlke puts it, "With the paper, we’re so unique that that's really iconic."

A Shifting Landscape

Times are changing, with overall alcohol consumption on a slow decline, but still maintaining a high level. Interestingly, the alcohol-free market is a dynamic force, growing ever more powerful. Currently boasting over 700 alcohol-free beer brands and a market share of almost 17 percent[1], the trend shows no signs of abating.

Despite this, traditional herbal liqueurs like Underberg, Jägermeister, or Fernet Branca remain deeply rooted in German drinking culture, accounting for around a quarter of the spirits market[2]. Söhlke sees no incongruity in this: "It's about that one special moment."

Even Underberg isn't immune to the siren call of alcohol-free alternatives. The company's exploration of ideas reveals a commitment to staying relevant in a changing market.

Health-Conscious Options and Iconic Branding

Several trends are influencing the broader liquor industry, such as the demand for healthier options, like low sugar content, natural ingredients, and botanicals[1]. With its herbal composition, Underberg may be well positioned to resonate with consumers seeking natural, organic products.

Moreover, Underberg's iconic packaging plays a significant role in reinforcing its brand identity and creating a memorable experience for consumers. As Söhlke suggests, the unique element of paper wrapping contributes to Underberg’s timeless appeal.

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[1] https://www.espace-alcool.info/actualites/temps-forts-de-la-biere-sans-alcohol/[2] https://www.statista.com/statistics/347236/share-of-different-types-of-alcoholic-spirituous-drinks-in-germany/

  1. Michael Söhlke, the new leader at Underberg since 2020, is leveraging his expertise in finance, brands, and people to modernize the 1846-originated spirits company.
  2. Underberg, despite its traditional roots and sixth-generation family ownership, is embracing change, as demonstrated by its online shop, social media presence, and festival appearances.
  3. Despite a slow decline in overall alcohol consumption, traditional herbal liqueurs like Underberg, Jägermeister, and Fernet Branca continue to hold a significant market share in Germany, accounting for approximately a quarter of the spirits market.
  4. Underberg is not resistant to the emerging trend of alcohol-free alternatives, suggesting a commitment to staying relevant in a changing market.
  5. Trends in the liquor industry, such as a demand for healthier options and natural ingredients, may provide Underberg with an opportunity to resonate with consumers seeking products with herbal compositions and low sugar content.
Since 2020, Michael Soehleke has held the position of Chief Financial Officer (CFO) at Underberg.

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