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Right, let’s get the stereotypes out of the way first. I’m a Millennial, also known as a Gen Y, or more simply, somebody who was born between 1981 and 1996. As such, I’ve also been known to eat so much avocado on toast – and spend so much on my Netflix subscription – that I can’t afford to buy a house.
I’m a member of the ‘entitled generation’ – we expect high salaries without ‘a proper day’s graft’; we see success plastered on social media and demand the same for ourselves; we so desperately long for the social currency of likes, follows and kudos, that we’ll give up what previous generations deem important to attain it.
But, of course, none of that is universally true. I mean, I don’t even like avocado on toast.
This highlights the danger of stereotyping an entire generation based on blunt analysis and generalisations. That’s not to say that there’s no merit in such an approach. If ten years ago, for example, you didn’t have a social media strategy to target Millennial consumers based on the concept of social currency, then it’s likely you’re working for a far less successful business than those who did.
It’s worthwhile, then, to run a similar exercise for our next generation of on-premise visitors, to understand how to target, attract and retain this potential customer base. Known as Gen Z and born between 1997 and 2012, those lazy stereotypes tell us that this is the TikTok generation; its members have short attention spans, jump from task to task and, as a result, can’t hold down a conversation. This is the ‘woke, snowflake’ generation that spends all of its time relentlessly campaigning for social and environmental justice (the horror!). Gen Zers look down their noses at their elders (“Hey there, Boomer!”) and, here’s the sting, they do not drink.
Yes, this cohort is seen to be a generation of abstainers; they have better things to do with their lives than drink (surely not possible) and suffer the effects of a hangover. This could have disastrous consequences for the on-premise channel that we all love. An on-premise without young consumers just sounds grim; as much as I like chewing the fat with a bunch of old blokes, I’m not sure I’d be able to justify the description of the sector as ‘vibrant’ without the youth that makes up so much of its audience.
It seems the on-premise is tussling with the seismic issue of a whole generation turning away from alcohol. But this isn’t the case – the stereotype just doesn’t ring true.
CGA by NIQ’s global analysis of nearly 30,000 consumers – of whom 6,000 fell into the Gen Z age bracket – shows that these consumers are actually more frequent visitors to the sector than average. A reassuring 70% visit weekly, compared to the 61% average. They drink more, too. These consumers over-index on soft drinks and no- & low-alcohol alternatives, but they also over-index on the likes of Tequila and vodka.
Another stereotype aimed at Gen Zers is that they’re nostalgic. That certainly plays through in beverage choices. Gen Z consumers are more likely than average to choose almost all so-called ‘traditional’ categories, such as rice wine, fruit wine and speciality liqueurs.
The big difference, however, is in beer and cocktails. For the first time in CGA’s data, we see a consumer group that’s just as likely to drink cocktails as it is beer – this is a huge opportunity for spirits and beer brand owners. With the Instagrammability of cocktails, alongside the ubiquity of beer’s standard serve, there’s a recruitment challenge facing brewers that cocktails can capitalise on.
Of course, generalisations are usually based on some semblance of truth, and although not abstainers, Gen Z consumers are more likely to moderate their alcohol intake. This means lower-ABV cocktails, such as Spritz serves, jump in popularity with this group, as do responsible drinking campaigns. A focus on ethical and sustainable practices will also serve as a way to endear your brand with this socially conscious consumer.
To really understand such a wide-ranging, complex and disparate consumer group – and to effectively target the sub-groups that are most aligned to your brand – it’s essential to go beyond the headlines and delve into the numbers behind them.
One thing’s for sure: In the hands of Gen Z, the end of the on-premise as we know it is not nigh.
This article has been available to Global Drinks Intel subscribers since July. For details on how to join them, please click here.
