The COVID-19 pandemic hit the world hard as many of our regular social activities were restricted for safety— including dine-in service for bars and restaurants. Even though our favorite watering holes were shuttered, and bulk buying of alcohol dropped, people still wanted to drink, and beer, wine, and spirit sales increased at liquor stores.

Cocktails Go Virtual

In response to the pandemic, many breweries and distilleries began offering curbside pick-up for pre-made cocktails and at-home mixing kits, as well as online mixology experiences. Efforts to stay afloat amid the economic crisis also met the needs of many looking to fill their time at home. At-home mixing kits and online mixology experiences gave consumers something fun and different for quarantine birthdays, date nights, happy hours, and more.

Virtual happy hour experiences mix well with Americans who preferred to stay home to drink before the pandemic and could become an important revenue stream for alcohol brands of all sizes.

But don't despair, customers are also moving towards bars, restaurants and sporting events! Learn more about on premise marketing for alcohol here.

Beer is contending against lighter, lower calorie hard seltzers and other flat malt drinks like hard lemonade and kombucha. In 2020, hard seltzer and flat malt beverage sales were up 68% from previous years —thanks to the growing popularity of hard seltzer.

Health-conscious drinkers see hard seltzers as a “better for you” option to beer, with many coming in with fewer calories and lower carbs. These drinks also appeal to those concerned with ingredients as they’re more likely to contain and highlight fresh fruit, 100% fruit juice, and even organic certifications.

Big and small breweries alike are developing hard seltzers, including Michelob’s certified organic hard seltzer released at the beginning of 2021. The first hard seltzer to receive a national USDA organic certification, Michelob’s drink boasts zero carbs, zero sugar, and only 80 calories per can—checking all the health-conscious boxes.

Hard seltzers might scream signature young Millennial to some, but in fact—half of the growth in the hard seltzer market is attributed to those aged 35 to 54.

Premiumization: Trading Up Beer for Seltzer

Premiumization is also attributed to the growth of sales in hard seltzer. Consumers see hard seltzers and lemonades as an elevated drink option to traditional beer. In addition to its lower calorie and sugar content, hard seltzers also offer ranges of flavors, from original lemonade to exotic fruits and even spicy pineapple.

While Gen Z, loosely defined as those born between 1997 and 2012, haven’t all reached legal drinking age, those who do drink do so less than their older Millennial siblings and their parents did at the same age.

A number of factors are at play here, including awareness of the increased health, social, and legal risks of excessive drinking, as well as greater awareness and understanding of alcoholism. Younger generations haven’t sworn off alcohol, but they have developed a mindful approach to alcohol consumption and embraced drinking responsibly.

Younger groups will shell out for the good stuff

While younger groups tend to drink less by volume than their older counterparts did at the same age, they are more likely to shell out for the good stuff. As seen in the craft beer movement and the exploding hard seltzer market, people will pay for quality and variety. Additionally, in the case of on-premises drinking, Millennials are more likely to experiment with new craft brews or specialty cocktails that offer funky flavors or combinations.

Especially since drinking at home is on the rise, going out for drinks becomes a special occasion. Those going out are willing to spend more to have drinks they wouldn’t stock at home, like non-traditional spirit flavors or out-of-the-ordinary flavor combinations in a craft beer.

In an environment that rewards change as well as tradition, alcohol brands today need to push the envelope in their quest to reconcile these contradictions and engender loyalty from their increasingly diverse consumers. The brands that succeed find ways to engage their audience with their brand stories through digital and social channels and become part of a lifestyle. See also our post with alcohol marketing examples here.

1 - Share Values with Consumers

In addition to valuing simple ingredients and sustainable business practices, many consumers align themselves with brands who also go the extra mile to support communities through donations, fundraisers, and other charitable acts. Brands who actively invest in the issues their customers care about can gain sales and brand loyalty (and additional donations) online and off.

2) Embrace New Drinking Lifestyles

Brands have long aligned their alcohol marketing with a lifestyle—with the culture around drinking changing, brands have an opportunity to embrace the new lifestyle. Guinness used a tongue-in-cheek television and social media campaign where the company marketed their “new” product, Guinness Clear (a.k.a. water), to promote responsible drinking habits.

3) Leverage Digital Media to Engage the Targeted Consumer

 Digital engagement is important with online ordering on the rise and stores tightening up display space. Alcohol companies have guardrails in that they cannot promote certain retailers. Focusing on an enhanced digital experience and online orders can help grow awareness and sales. The pandemic enhanced and grew the eCommerce space for many industries, including alcoholic beverages, and even previously- digitally-averse consumers are ordering online. Of course, it's not all digital, so click here for in-store shopper marketing campaign examples.

4) Reward Consumers in Relevant & Meaningful Ways

Alcohol brands are usually associated with lifestyles. The best promotions then, offer consumers “experiential” rewards that integrate and expand upon a “desirable lifestyle.”

Snipp created two such (age-gated) programs for a leading vodka brand:

• A golf themed sweepstakes to activate consumer excitement. Participants earned branded golf swag by simply registering on an age-gated microsite.
• A gift with purchase program to promote responsible drinking, where consumers received Lyft codes on qualifying purchases.

We're here to help!

Learn how Snipp can help you with alcohol marketing promotions and campaigns as well as alcohol loyalty programs. Contact us here.

Here's a summary of the content and get the full guide here: Alcohol Industry Trends Reports (PDF)

• https://www.statista.com/statistics/233699/market-share-revenue-of-the-us-alcohol-industry-by-beverage/
• https://www.statista.com/outlook/cmo/alcoholic-drinks/united-states
• https://www.brewersassociation.org/statistics-and-data/national-beer-stats/
• https://www.forbes.com/sites/chrisfurnari/2020/12/01/online-alcohol-sales-surge-amid-coronavirus-pandemic/?sh=529365584f3a
• https://beveragedynamics.com/2017/04/12/what-is-a-craft-spirit/
• https://news.gallup.com/poll/264335/liquor-ties-wine-second-favorite-adult-beverage.aspx
• https://www.mintel.com/press-centre/food-and-drink/the-stay-at-home-generation-28-of-younger-millennials-drink-at-home-because-it-takes-too-much-effort-to-go-out
• https://www.bevindustry.com/articles/93909-beer-report-hard-seltzers-continue-to-drive-fmb-market
• https://www.beveragedaily.com/Article/2021/03/15/How-beverage-brands-can-better-engage-millennials-and-gen-z
• https://www.prnewswire.com/news-releases/miller-lite-celebrates-the-holidays-through-the-give-back-12-pack-301193314.html
• https://www.forbes.com/sites/joemicallef/2021/01/13/after-covid-the-top-ten-trends-shaping-the-adult-beverage-market-in-2021/?sh=3eefd9d7461d