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Why Meta’s flagging Twitter rival, Threads, has struggled to win over drinks brands – Market Intel

Joe Bates
Last updated: 19/01/2024 at 5:29 PM
By Joe Bates
20 December 2023
10 Min Read

The arrival of Threads shook up the already crowded social media scene, but are beverage alcohol brands sitting up and taking notice?


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This article has been available to Global Drinks Intel subscribers since the beginning of December. For details on how to join them, please click here.

The arrival of Threads shook up the already crowded social media scene, but are beverage alcohol brands sitting up and taking notice?

Back in July, Facebook’s parent company, Meta, launched its direct rival to Twitter. Within five days, Threads, which is based on Instagram’s account system, attracted more than 100m users, making it the fastest-growing app of all time. In contrast, it took Twitter, now owned by controversial tech tycoon Elon Musk and renamed X, 17 years to reach 368m users.

For drinks brands and other alcohol industry stakeholders, another potentially viable social media platform – albeit one not initially accepting advertisers – had appeared overnight. In today’s ultra-competitive social media landscape, is this new platform worth engaging with, or will it disappear without a trace like other failed experiments such as TikTok forerunner Vine, Google+ and the ad-free Ello?

It’s fair to say much of the initial hype surrounding Threads has died down. A month after its launch, tech news site Gizmodo reported that the platform had lost 80% of its daily active users. Then, in August, Meta announced it was releasing a web version in an attempt to revive the flagging platform.

Many beverage alcohol brands have been underwhelmed by Threads. “We wouldn’t use the word ‘excited’,” says Alan Moss, co-owner of Swiss absinthe La Clandestine. “While [social audio app] Clubhouse was really exciting at the time [of its launch in 2020], I can’t imagine Threads becoming exciting in that way.

Threads still ‘in its infancy’

“Some of the threads I’m seeing seem irrelevant to me, so how do I know they’ll be able to target absinthe drinkers?” he adds. “Interestingly, we are getting more numerical engagement from about 200 followers on Threads than from around 5,000 Twitter/X followers. This is partly because Threads is less crowded and its users are currently more committed.

“Our Twitter follower numbers probably contain a lot of lapsed/infrequent users. However, Threads seems likely to cannibalise Instagram engagement, which would be bad news.”

“Threads is in its infancy,” explains the senior digital marketing manager North America at Diageo-backed drinks brand incubator Distill Ventures, Raquel Royers. “Upon launching, it was a brand-new, shiny object that allowed everyone to take a deep breath and remove the pressure other social media platforms put on producing engaging view-driven content. But, as with every other social media platform, that may not last long.

“Threads offers space to be a bit more candid, have playful banter and show your personality, especially as a brand,” Royers adds. “However, Instagram remains the social media platform of focus for content consumption. Threads should be where you can explore your brand personality, connect with consumers on a deeper level and have fun. Leave the conversion tactics for other platforms.”

X no longer marks the spot

While many drinks brands are cautious about Threads, older rival X is viewed with outright scepticism by many companies since its controversial acquisition by Musk in October last year.

“We think the app and its viewership is slowly decreasing due to a lot of the controversy with Elon Musk,” says the head of marketing at UK-based RTD Tapp’d Cocktails, Paige Appleby. “The rebranding seems very unnecessary and in our eyes will only hinder the platform.”

“We’re disappointed with Twitter’s recent trajectory,” adds the founder & CEO of California-based influencer marketing and digital advertising agency Sway Group, Danielle Wiley. “Our agency has significantly scaled back our promotional efforts on the platform and it hasn’t featured in any client proposals for over a year. The rebranding of Twitter to X appears hasty and disorganised, and doesn’t offer any tangible benefits for brands seeking to leverage it effectively.”

Eric Trueheart, the co-founder of Pasadena-based Black Yeti Beverage, which owns the Grisly’s Cosmic hard cola brand, more bluntly shares his dissatisfaction with the direction Musk has taken Twitter/X since purchasing it. “We weren’t active on Twitter before, but had considered it and the idea kept coming up,” he says. “Musk rubbing his scent all over it has made us 100% not want to engage.”

Instagram remains top dog

Ask digital marketing agencies which social media platform is the best for alcohol brands to engage with and the visual-driven, less political Instagram seems to be the consensus choice. “Instagram stands as a beacon for the alcohol drinks industry and its ascendancy is no accident,” says Alex Carapiet, head of social at student & Gen Z marketing agency Seed, whose client list includes Brown-Forman’s Jack Daniel’s.

“Its image-centric design is a canvas for brands, allowing the effervescence of a Champagne or the deep amber of a craft IPA to be portrayed vividly, creating visual stories that resonate with viewers. This visual storytelling is complemented by precision targeting, enabling single malt whiskies and supermarket wines to connect with specific audiences, whether sophisticated whisky lovers or fun-loving rosé crowds.

“Dynamic features like Stories and Reels offer immersive ways to share content, as seen in many of the distilleries’ behind-the-scenes tours or spirit brands’ mixology sessions,” he adds. “These features create an engaging brand experience that goes beyond mere advertising, while the platform’s integration with e-commerce functionality turns browsing into buying, linking visual content to sales and making the purchase process seamless.

“Instagram is more than a social media platform,” Carapiet concludes. “It’s a comprehensive marketing ecosystem where presentation translates into perception, engagement and action. It’s a place where brands don’t just sell products; they build relationships and tell stories that linger long after the glass is empty.”

Sway Group’s Wiley is equally sold on Instagram. “Our influencer marketing agency recommends that our clients in the beverage industry, as well as those in related sectors like restaurants offering happy hours and cocktails, focus primarily on Instagram for their sponsored content campaigns. TikTok’s guidelines prevent them from active participation, and our experience shows that YouTube doesn’t quite hit the ROI [return on investment] benchmarks our clients expect.”

Gauging success on social media

While the landscape has become yet more crowded with the arrival of Threads, many beverage brand owners are prepared to give the newcomer time to find its feet before making a final decision about the platform’s merits. The wider question remains, however, on the best way to measure ROI for drinks brands’ marketing activities on social media.

Distill Ventures’ Royers takes a sensibly balanced approach to this complex question many newcomers to social media marketing would do well to heed. “With any social media strategy, outline your desired outcomes and the KPIs you’ll use to determine success,” she says.

“Much of the value of social media isn’t necessarily related directly to revenue generation. First and foremost, social media should be used as a holistic omnichannel strategy designed to build a community and further deepen your connection with your consumer.

“For many of our portfolio brands at Distill Ventures, using social media to drive engagement is a higher priority than driving sales,” she adds. “However, when you’re using social media to directly drive sales, be sure to use tracking links, codes, etc, so that you have a clear idea of conversion and what’s resonating best with your community.

“And, remember: Social media marketing is a marathon, not a sprint.”

This article has been available to Global Drinks Intel subscribers since the beginning of December. For details on how to join them, please click here.

Joe Bates
ByJoe Bates
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Joe has been a business journalist for over 20 years, specialising in the drinks, aviation and Global Travel Retail sectors; Duty-Free News International, IWSR Magazine, Drinks International and Whisky Magazine, among others.
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