AUNZ’s best challenger brands show innovation and leadership to flourish in tough times

Fortune favours brave brands.

That’s the lesson I’m taking from AU+NZ’s most interesting, innovative, and brave challenger brands. The brands that are breaking through, or well on their way to doing so.

For the past few years, our branding agency Interbrand has released an annual report called Breakthrough Brands, which charts those making a mark on the global stage, and ones to watch.

The latest report, released today, features 14 brands. It’s a shorter list than previous years. No, our region hasn’t lost its entrepreneurial zeal or a knack for punching above its weight — in the 2022 Global Innovation Index, New Zealand and Australia ranked 24th and 25th,  respectively, among the 132 economies assessed. And I don’t expect the list to shrink annually. But I’m conscious that we live in interesting times for brands, and this shorter, more measured list is reflective of that.

One hangover from peak Covid is less optimism about the future, which is even more understandable given current economic headwinds. Company valuations fell by 29% on average in 2022, while $7.4bn was raised across 712 deals — down from the $10bn the year prior. And, in our experience, CMOs and leadership have largely been more risk-averse when developing and talking about their brands.

But we know that extraordinary times reward bravery, not neutrality. So it makes sense that the latest cohort of Breakthrough Brands shows how to be not just brands that sell things, but brands that show leadership.

True leadership must be authentic, because if there’s even the faintest whiff of duplicity or cynicism, that’s death. It’s not just lip service or a tagline or a purpose statement on a poster—it’s not an act of leadership unless it costs you something.

Love them or hate them, chic coastal fixture CoolCabanas are the official shade partner of Melanoma Institute Australia; Unyoked invites us to reconnect with and reap the benefits of nature; Immutable gives developers a better, carbon-neutral environment in which to operate; B Corp Sendle offers small businesses a cheaper, more ethical delivery option; disability and aged care platform Mable doesn’t just provide care — it enables life; July’s travel gear helps us take advantage of the reopened world; and NZ’s UBCO encourages sustainable exploration via “the world’s most accessible electric bike”.

The brands on the Ones to Watch list are equally impressive: Mr Yum initially helped us stay safe (contactless ordering) but is now focused on helping hospitality businesses grow; as Beem evolves, it may play a greater role in facilitating financial wellbeing; Ovira is reminiscent of 2020 Breakthrough Modibodi, addressing the issue of period pain with an innovative product while fearlessly starting and changing conversations for people who menstruate; Sprout Organic changes a 120-year-old game with its plant-based baby formula; Airrobe and Fellten give the climate a helping hand by giving clothing and cars, respectively, the circular treatment; and HNRY alleviates accounting stress for sole traders.

Each of these brands empowers us to thrive in some way, helping us live well on individual, community, and global levels. Each shows what it takes to build a brand through a pandemic, and in the face of a recession. And each shows how a brand can be an act of leadership.

Navigating such adversity has taken resilience and resourcefulness — so, while there might be less optimism in the air right now, I do believe this bumpy period has been a catalyst for renewed enthusiasm.

This third edition of our report may be leaner than previous ones, but the refreshing diversity of businesses remains, with offerings that range from ‘nature as a service’ to purposeful postage to drug-free period pain relief. Whether they’re trying to foster behaviour change or help their customers thrive, our region continues to show it has the talent and temperament to deliver across categories.

To ensure our local heroes keep breaking through, brands (and the people who lead them) need to embrace the confidence and courage to act authentically in the name of their principles. And when incumbents choose to hunker down, there’s no better time for challengers to stand out through what they stand for. 

This year’s list of Breakthrough Brands proves that the start-ups in our region are up for the challenge.

Nathan Birch is the CEO of Interbrand AUNZ.