As Gen Z consumers continue to shape the beverage alcohol trends like no other demographic has before, the need for the industry to understand their habits, traits and core values grows more urgent. Rather than waiting until this consumer base fully comes into its own, alcohol brands should invest in understanding and harnessing this demographic to set themselves up for success in the future.
At the Bar Convent Berlin trade show last month, Park Street held a seminar that explores Gen Z’s consumption patterns and guiding principles to help industry members better understand the demographic both as a consumer segment and as a workforce. The presentations covered the Gen Z consumer’s purchasing patterns, their relationship with on-premise environments, and the importance of incorporating their perspectives into company cultures.
How brands can adapt to the next generation of alcohol drinkers
From a brand-building perspective, the importance of implementing consistent messaging across generations is crucial to maintaining relevancy. The founder of Maffeo Drinks, Chris Maffeo, emphasised that brands often experience generational changes as they evolve. This evolution may include switches in management, market conditions and consumer demographics.
Maffeo highlighted that brand success cannot be achieved overnight, typically taking around 20 years of consistent effort. As new generations enter the market over this period, there may be a temptation to make drastic changes in branding in response to market fluctuations. However, such moves can lead to the loss of existing customers, with whom the brand may no longer resonate, and may confuse potential new customers.
Maffeo’s key messages are to maintain brand consistency, focus on the basics and educate new generations about the brand’s essence rather than changing the essence itself. He cites the likes of Campari, Aperol, Hendrick’s Gin and Guinness as examples of brands that have successfully adhered to these principles, while maintaining their identity and reputation.
How Gen Z feels about alcohol
NielsenIQ’s research & insights director, Charlie Mitchell, focused on the future of the on-premise consumer. His presentation addressed some common stereotypes: That Gen Z is ethically conscious, spends excessive time on platforms such as TikTok and has a limited relationship with consuming alcohol. For Mitchell, brands must address these perceptions to understand and connect with this group.
Mitchell concentrated on uncovering Gen Z’s behaviour in the on-premise, highlighting their distinct interest in ethical well-being, sustainability and a preference for trying different drinks rather than sticking to one brand.
Mitchell also highlighted social media’s power at influencing Gen Z’s purchasing decisions, with 83% saying they would buy a product after seeing it online. Celebrity endorsements can also be influential – if properly aligned with the brand’s and the consumer’s values. Due to Gen Z’s focus on health, for example, the importance of advocating for moderation and responsible drinking is stressed, along with the need to align with the no- & low-alcohol opportunity.
In terms of drink preferences, Gen Z is more likely to select cocktails – and be interested in new and alternative categories – while they are less inclined to choose beer. Despite this, Guinness stood out as an attractive beer brand to the demographic, thanks to its recognisability and social media appeal.
Romantic and other experience-led occasions, including business meetings, are on the rise for these consumers. Brands should aim to leverage Gen Z’s inclination to seek out unique experiences, including interactive venues, street food, pop-ups and music festivals. Ultimately, Mitchell advised businesses and operators to focus on where Gen Z goes and what motivates them, considering activations at venues that resonate to build long-lasting consumer relationships.
Why Gen Z is driving no- & low-alcohol spirits
The founder of ISH Spirits, Morton Sørensen, covered the macro trends driving the shift to non-alcoholic beverages, and how ISH aims to cater for these evolving preferences.
Sørensen shared the results of a survey from a collaboration with Danish nightlife operator Rekom Group, highlighting the increasing interest in mindful drinking among Gen Z. A significant portion of Rekom’s guests, he said, are curious about limiting their alcohol consumption, which presents an opportunity for venues to adapt and offer appealing no & low options.
As an example, Sørensen detailed ISH’s collaboration with a high-end cocktail bar called Dandy in Copenhagen. At the venue, they introduced mindful drinking options, extended their operating hours, created a dedicated mindful menu and featured commercial partners to enhance the overall experience. The approach allowed them to cater to a growing and diverse Gen Z audience, demonstrating that mindful drinking can be both inclusive and exciting.
This article was initially published by Park Street this week.
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