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Boutique Wine and Spirits PR Agency Spotlights Key Spirits Trends

12/3/2022

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Wine and spirits industries have proven to be resilient with double digit sales during the Covid-19 pandemic. In fact, the alcoholic beverage sector has grown significantly during the last two years, with brands adding line extensions featuring herbal, botanical, and citrus combinations with fresh, light undertones.

According to Verified Research Market, “the majority of individuals used to drink on the weekends and after work hours due to stress and worry. In addition, factors such as rising disposable income and increased consumer spending power because of raised health awareness are creating opportunities for market expansion.”

The growth of wines and spirits market is being driven by rising premium product use, by using of cutting-edge technology to enhance the fermentation process. In this blog, Allen Marketing Communications, Inc., a boutique wine and spirits and lifestyle public relations agency based in New York City, spotlights key wine and spirits trends.

Ready to Drink (RTD) Alcoholic Beverages

Ready to drink alcoholic beverages have been a lifeline providing another source of revenue for bars and restaurants during the Covid-19 pandemic.

“New RTD launches coming to market have a higher representation of premium-and-above products than volumes consumed in 2020, suggesting a trend towards premiumization. This marks a clear diversion from RTD innovation so far, with the vast majority of the global RTD category currently sitting within the standard-and-below price bands.” (Source: IWSR)

“To give you a better idea of just how popular alcoholic RTD beverages have become, Nielsen notes that the sales of malt-based cocktail variants have grown by 597 percent compared to last year. Not to be outdone, hard seltzer RTDs are at 193 percent, while the canned wine options are at 77.5 percent.” (Source: Linchpin)

Cannabis Infused Alcoholic Drinks

The legalization of cannabis has created another market for innovation in the wine and spirits industry.  Research shows “cannabis beverage sales reached $210 million” according to Cannabis Tech.

“Amid a move towards more health-friendly drinks, cannabis beverage brands have divided themselves into two categories: cannabis-infused non-alcoholic drinks and cannabis-infused alcoholic drinks, with both categories incorporating the same technology.” (Source: Cannabis Tech)

Research is also showing that Millennials and Gen Zers are leading the way in purchasing these cannabis-infused alcoholic drinks.

No Alcoholic Or Low Alcoholic Line Extensions

The Covid-19 pandemic has sparked an interest in a sober curious movement especially among Gen Zers and Millennials consumers. Basically, Gen Zers and Millennials have sought out low or non-alcoholic beverages such as mocktails as a way to stay healthy during the pandemic.

Savvy wine and spirits markets are embracing the sober curious movement by adding line extensions with non-alcoholic or low alcoholic beverages to cater to these consumers.  In fact, there are alcohol free bars and mocktail menus popping up across the country.

Taking Part In Reward-To-Recycling Initiatives

It's a frequent misunderstanding that brands alone can address environmental challenges. Customers really have a significant role in ensuring that their consumption has a positive influence on the environment

As a result, a number of companies have started reward-based recycling initiatives for consumers, allowing them to get incentives based on points for properly disposing of garbage and supporting sustainability as a whole. Due to the current blockchain buzz, “many consumers now choose crypto incentives since they are seen to be very valuable right now.” (Source: Authlink)

Modernized Wine Labelling

Gen Z and Millennial customers are particularly challenging for the wine industry to reach these consumers. Wine manufacturers have been forced to reconsider their branding and labelling since younger customers no longer see wine as relevant. Even the most well-known and well-established firms are always updating their merchandise and advertising to draw in new customers.

Even the most experienced wine consumer may find the wine aisle intimidating. It is crucial that even well-known firms stay up with innovation and develop branding that speaks to a changing market via compelling messages and eye-catching labelling.

Brewers Will Use More Innovative Techniques

In developing nations, non-beer items predominate, yet the beer is still a solid good that appeals to a broad variety of customers. 36 percent of consumers say they have increased their beer intake in the last year alone.

Brewers will need to keep coming up with new taste combinations, much like other market sectors. As you go into the future beers with flavors such as chocolate, chili pepper, and fruits will be available for an interesting beer experience.

Verification Of Sustainability

Customers have long been concerned about sustainability difficulties in the alcohol sector; the epidemic has just helped to heighten that worry. According to studies, “73 percent of millennials and 66 percent of worldwide customers are okay with paying extra for sustainable products.” (Source: Nielsen)

Customers are more likely to prefer wine and alcohol firms that are transparent about their environmental initiatives. “Millennials and Gen Z are speaking with their pocketbooks, and what is important to them is that they are willing to pay for is what will define premium. Sustainable production choices, quality ingredients and responsible employment practices are important: they cost more and consumers are willing to pay.” (Source: Beverage Dynamics)

Alcohol businesses now have new digital channels through which to communicate directly with consumers about their environmental efforts.  “Shaky international supply chains and relative price were not the only drivers of this trend: in many cases, consumers reported they also wanted to ‘do their bit’ for the local economy. Building on this crisis response, local brands may hope to reinforce their status for the long term by emphasizing sustainability, quality and community values.” (Source: IWSR)

Promoting Regional Business and Goods

Many drinkers are buying locally to help them get by because they realize that 45 percent of small companies have only made half or less of their pre-Covid earnings during the epidemic. Customers are also genuinely curious about the places and histories of the bottles they buy from neighborhood shops.

Several small alcoholic beverage companies are using blockchain technology to increase corporate transparency and trace provenance along the supply chain in order to better serve their customers. The transaction records become irreversible by generating NFTs for each bottle, giving customers complete certainty about the origin of their beverages.
Overall, the changes in the wine and spirits industries have opened up opportunities for creativity and innovation such as selling wine and spirits online that can only be advantageous to everyone along the supply chain, including consumers.

A wine and spirits PR agency can be the most effective marketing and communication tactics a company can do to grow a wine and spirits brand.

By Joanna Allen, chief executive officer, Allen Marketing Communications, Inc.

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      • Case Study --Luxury Scotland Tours
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      • Case Study - Chef Darline Dorcely and "A Taste of the Caribbean Cuisine Cookbook"
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