How Brand Extension Strategies Grow Sales

Image: Turkey Hill Iced Tea

​Corporate Challenge: How to choose the next product or service offering.

Ironbound Strategy: Brand growth is a result of creating value for customers, employees, and society. Creating vertical integrations provides access to new customers that can grow your brand to record levels.

Ironbound Action: Pennsylvania based Turkey Hill is known for its iced teas, gas stations, and ice-creams.  Their brand’s rise to fame began when they opened gas stations to sell their branded products.  By vertically integrating into gas stations, demand for Turkey Hill products increased, and their branded products were successfully sold in grocery stores across the country. Turkey Hill now produces over 60 million gallons of iced tea a year. Small brands can quickly grow when their brand extensions create value for customers. There may be an opportunity for a new small brand to exponentially grow by extending their brand into charging stations, just like Turkey Hill did with gas stations.  
 
*The ready to drink tea industry is valued at $45.5B globally, and is expected to grow 22% by 2021.  In the US, 23% of Americans drink tea every day.