Diageo is a business that prioritises its innovation agenda. As the owner of some of the biggest global spirits brands in the world, including Smirnoff, Johnnie Walker and Don Julio, the company sees innovation as a crucial way of growing its category.

However, while category leadership is a focus for the business, the company is taking inspiration from “adjacent” categories to ensure it continues to cater to “changing” spirits occasions, says its marketing and innovation director for Great Britain, Ursula Mejía Melgar.

She took on the role of leading marketing in Diageo’s home market six months ago, although Mejía Melgar is not new to the business, having led marketing in Southern Europe for almost five years. She has spent her career in FMCG, having worked at businesses including Mondelez, General Mills and Procter & Gamble previously.

One thing she has learnt across her time at these businesses is that developing categories means understanding opportunities for your brands to expand beyond the “historical boundaries of the category”, she says.

What are the motivations in adjacent categories that we can learn from, that we can tap into, that we can unlock?

Ursula Mejía Melgar, Diageo

Whether it’s washing detergent or premium spirits, looking to expand into adjacent categories can be a powerful way to build resonance in consumers’ lives.

“What are the motivations in adjacent categories that we can learn from, that we can tap into, that we can unlock?” asks Mejía Melgar.

There have been four launches for Diageo in GB over the past month, all across different brands. One notable example that has already attracted a lot of excitement is Baileys x Terry’s Chocolate Orange Irish Cream Liqueur.

Baileys has extremely strong brand equity scores, notes Mejía Melgar; however, it is still often thought of as a brand for Christmas.

“Consumers know what Baileys tastes like, when to consume Baileys,” she says. “It’s just a delicious treat. They understand the occasions, but oftentimes they don’t remember.”

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Collaborations with the likes of Terry’s help the brand build resonance in the adjacent chocolate category and build out its relevance to different occasions.

“It’s creating a platform for us to grow further beyond Christmas into the chocolate occasion,” she says.

This expansion into adjacent categories also recognises shifting trends in spirits. Consumer preferences and habits change, and so do the times and occasions where people want to drink spirits.

“What was historically defined as spirit occasion has changed, has evolved, and we need to understand where those moments are where we can play meaningfully,” says Mejía Melgar.

Platforms not just brands

Another example of the brand tapping into adjacent categories is its new Gordon’s gin product, which sees it lean into the current popularity of spritz drinks. Gordon’s Spritz Edition is specially designed to mix with prosecco.

Mejía Melgar’s role spans all of Diageo’s brands in GB; she says her approach to innovation is “platform-led”, not just brand-led. For example, rather than looking at what innovation the brand could do on Gordon’s, it looks at the broader platform of spritzes, knowing it’s a consumer trend.

This is one way Diageo ensures it’s consumer-led in its approach to innovation. It’s also a reminder for the business that while it might think with a brand- or category-led mindset, that’s not how consumers shop.

Measuring success in innovation is very different depending on how close to the current proposition the innovation is versus how breakthrough it is.

Ursula Mejía Melgar, Diageo

“It’s about building platforms with consumers in mind,” Mejía Melgar says. “It’s very rare that consumers go in thinking, ‘I need to buy a vodka’… In many cases, the spirits category is shopped from wanting something for tonight, for ‘I’m entertaining, which cocktail should I be serving?’”

Diageo’s goal is to “inspire” consumers to want to fulfil those occasions through its categories and brands, she says. In other words, equipping its brands through innovation to meet specific “shopper missions”.

Judging the success of innovation

Any innovation will ultimately be designed to drive commercial success for a brand. Whether it’s designed to capture more occasions or to recruit new consumers into a category, new products must ultimately drive revenue.

However, Mejía Melgar stresses that when it comes to evaluating the success of a new product, the timescale on which that success should be judged varies.

“Measuring success in innovation is very different depending on how close to the current proposition the innovation is versus how breakthrough it is,” she says.

When a new product is particularly “distinct” and “differentiated” from the core, it will take time, she says, as well as sufficient resources and the willingness to pivot quickly if necessary.

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One new-to-world example that Diageo has felt worth the time and resources is its Ventura brand. The blue liquid is aimed at winning in the aperitivo occasion, which is currently dominated by competitor Aperol.

The brand has so far only been launched in Italy, a market that Mejía Melgar oversaw in her previous role as marketing director for Southern Europe. She says that, particularly given the growing popularity of the aperitif occasion, it has been worth taking time to get the Ventura launch right.

“We always said, if we can find the right formula to win aperitivo in Italy, we may have a successful formula for the rest of the world,” she says. “So that requires investment, that requires a lot of effort into one specific market, and you need to pivot very quickly. And we have pivoted on pricing, we have pivoted on the on-trade strategy and the serve strategy.”

By contrast, on an innovation like Bailey’s x Terry’s, you can see evidence of the success within the first week or so, she notes.

“In one instance, you are operating with closeness to the brand, with clarity on a historical consumer and what they want, and you are catering to that,” says Mejía Melgar. “On the other hand, you are testing new waters. You are expanding territories. You need to be patient. You need to pivot, and then you need the resources.”