June 2024

So we’ve got a question, are you heading into a booze-y or booze-free summer, or both? Will you be lounging poolside sipping a Lambrusco Spritz or catching up on your zzz’s by trying out the Sleepy Girl Mocktail? Alcohol consumption is changing, carving out a growing pocket in the beverage industry for non-alcoholic and alcohol alternative bevies. Let’s talk about it. 

Raising the (NA) Bar

If you’re in the alcoholic beverage industry, or adjacent to it, it’s no news to you that people’s drinking habits are shifting. Whether it be because of health trends or changing social expectations, the rise of mindful drinking led by younger generations is having a profound impact on the industry. 

Non-alcoholic, alcohol alternative, and functional beverages have entered the chat and the growth of the category is outpacing the overall alcoholic beverages market growth. And the brands are branding. Ghia is a favorite at Honey, from their gorgeous packaging to their enticing flavors to their inspiring content that makes you dream of the Mediterranean,  this brand is killing it at building a community that is over the influence. We also love the looks and tastes of Betty Buzz, St. Agrestis, and Kin Euphorics.

What about the non-alcoholic versions of our favorite alc beverages? The wine world is divided on non-alcoholic and dealcoholized wines. Jeff Siegel in his article The War on Wine argues that non-alc wine is not wine in its very nature: "Wine exists because of fermentation, because of the alcohol”.

So, how should alcohol brands, especially smaller brands, react to this growing category and the fact that younger people are drinking less? We have a lot of thoughts on this but one thing is for sure: meet people where they are and focus on inclusivity. It doesn’t make sense for every brand to offer a non-alcoholic product, but that doesn’t mean you can’t get creative on how you connect with audiences not interested in alcohol. Some ideas: 

• Create non-alc pairings that complement your wine tastings, with the notes of these crafted mocktails matching those found in your wines. 
• Explore how the values of your brand match the values of the younger generations, like getting them involved in your sustainability causes. 
• Take a moment to assess if there is an opportunity to rethink how your products can be offered to align with current trends, such as smaller vessels with less servings per container or a subscription tier with less product but more frequent deliveries.

Final thought, it’s not an all or nothing mindset for most. While lower alcohol consumption is trending, reports from this year still show that 62% of U.S. adults report that they drink alcohol versus abstaining completely. The alcohol brands that adapt to this more moderate consumption trend and relate their role in consumers' current lifestyles are going to be the winners.

Our Corners of the Internet… 

• @thebestmarketingstrategyever and the rebrand of SMASHD - whether it was planned or not, bravo 👏
• Cute milk. Yep, you read that right, but also just the movement back to dairy in general. The recent got milk? campaign has us laughing, as well as this @subwaystakes 🥛
• “Gardening” 😉 has become the IYKYK term to talk about cannabis on social media without getting flagged, and people are sharing their favorite recipes for 🌿 consumption. 

Let’s Talk Business (over Palomas!)

Want to chat about your brand or need fresh ideas for strategies to connect to your consumers, drop us a line at  hello@workbyhoney.com. 

We highly encourage you make yourself a Paloma if you haven’t in a while as it’s the perfect summer sipper, in our opinion. Bye!