HOT DRINK SUMMER. ALCOHOL TRENDS.

With the first quarter of 2023 in the rear-view mirror, I start shedding clothes (sorry for the visual) and I always do a little refresh of the trends in the liquor and spirits space that are going to shape the ever-important Summer season.

Over the past five years, outside of the holiday buying months of November-December, the highest U.S. monthly retail sales for beer/wine/liquor stores are May, June and July (source: Nielsen). The opportunity to establish, grow, or revolutionize your brand during those months is YUUUUUGE! (that's my Mike Francesa voice).

So without much more of a preamble...let's get into it:

BENEFITS AND WELLNESS

Whether we realize it or not, we’ve all been affected by the past few years, and all trend analysis show mental health will continue to determine how consumers consume. Especially in the beverage market.

Due to our experience from the past few years, brands that can provide more joy and variety to everyday life in the form of small experiences at home, will reap benefits. 

Additionally, products that can truthfully position themselves as potentially stress-relieving will continue to gain popularity in the coming years. CBD and cannabis drinks, to non-alcoholic beverages have a great opportunity in the coming years to carve out their space in the market, as people want a great drinking experience while working on their own well-being.

HIGH END + HIGH QUALITY

Building on the post-covid mentality above, high-end consumers are driving demand for high-quality spirits. Despite inflation & layoffs, there is a significant part of the population that still has enough money available for these products.

As sales for wine (-2%), beer (-2%) and cider (-4%) declined in the U.S. in 2022, their premium counterparts grew. Wine (+6%), Beer (+4%), Cider (+11%). Premium spirits were up by 13%.

Source: https://www.beveragedaily.com/Article/2023/01/12/premiumization-continues-to-drive-us-alcohol-sales

It’s pretty simple math…if we’re going to purchase alcohol, we want the high-quality alcohol.  

We’re also seeing trends towards uniqueness.

Vodka, a classic flavor that has always enjoyed tremendous success is innovating with lower calorie variants, and unique flavors.

28% of consumers say they are willing to pay a premium for spirits with unique ingredients. The daring flavor seekers are driving the trends in this category.

RTD FOR THE SUMMER

Almost 10% of U.S. adults say that they have bought an alcoholic RTD drink the past three months. It makes total sense. My brother-in-law happens to love making intricate cocktails at parties. But most of us want to talk, mingle, dance, meet people and make connections during that time. So we pour something simple, and off we go. RTD’s provide the opportunity to experience cocktails without a mixologist present.

So how to consumers pick what they’re going to buy?

The main criteria? Flavor.

·     70% of U.S. RTD consumers over the age of 22 look for refreshing flavors in RTD drinks.

·     64% of U.S. RTD consumers over the age of 22 look for popular flavors in RTD drinks.

·     58% of U.S. RTD consumers over the age of 22 look for good flavors in general in RTD drinks.

The second criteria? Alcohol strength.

The third? The type of alcohol.

Fourth? Spontaneous in-store purchase. (make sure your branding is on point)

Fifth? Well-known brand.

Source: "RTD Alcoholic beverages US, 2022", Mintel

Creating and positioning your RTD is going to be essential as this sector continues to grow.

ALCOHOL AT YOUR DOOR

Something a little more long-term than this summer is DTC.

Similar to grocery shopping, the way that people purchase their alcohol was turbo charged during the pandemic. U.S. online sales grew by 261% during the pandemic, and while behaviors are returning to their pre-pandemic ways, the growth of the digital marketplace, and the normalization of buying online is here to stay.

There are of course legal issues to maneuver, but 46 states allow DTC wine sales, and the trend is pointing towards online alcohol sales being loosened even further.

The Distilled Spirits Council of the United States released a survey that found 80% of consumers believe distillers should be able to ship directly to consumers.

This is just how user experience is heading.

Drizly, Instacart, DoorDash, and many more offer coverage for delivery.

And folks who are not getting their alcohol delivered, use online listings to shop and browse for what they’re going to purchase. It is absolutely imperative that any retail media space you have available is built creatively, intelligently, and gives customers a reason to try your brand.

MEDIA GETS YOU OVER THE FINISH LINE

It should go without saying that your branding & marketing visuals (labels, sales sheets, point of sale, advertising, etc.) need to be of the highest quality in the ever-growing world of alcohol sales.

Similarly, your media strategy needs to be informed and supported by data. There are wonderful design firms like Stranger & Stranger, Chad Michael Studio, Weholden, Karlssonwilker Inc. (to name a few) that develop incredible design work in the spirits space. And brands high-five each other and pat each other on the back about the beautiful branding, but they don’t have that same enthusiasm about investing in media. So these beautiful designs are not seen by anyone, or not seen by the right people. The brand doesn’t communicate its message. The opportunity is missed.

Finding a media strategy partner you trust is the perfect way to capitalize on all the hard work you, the marketer, the brand manager, put in to make this summer a “YOUR BRAND” SUMMER.

It goes without saying...SALUK&CO would love to help.