Raising a Glass to the Future: Innovation in Alcoholic Drinks

Delivery

This report comes in PPT.

Key Findings

Flavour sophistication and premiumisation retain their status as pillars of innovation, but macro volatility and subtle shifts in popular flavour profiles require flexibility

While premiumisation is taking a hit on the back of geopolitical challenges and still lingering inflationary pressures, the industry’s mantra of premiumisation will remain relevant and bounce back in the short-to-medium term. On the other hand, flavour sophistication will continue evolving, with a shift to more natural ingredients, lower sugar content and authentic, measured offerings.

Mindful drinking comes of age, and pivots into proxies, new occasions and functionality cues

The no/low trend is now firmly reaching the mainstream, embracing RTDs, cider and wine, while reaching escape velocity in spirits and further cementing its position in beer. Sidestepping dealcoholisation through proxy variants and an increased focus on functionality will shape the next stages of the category’s evolution.

Cross-industry collaborations, social media engagement, and embracing indulgence and nostalgia are essential for securing share of mind

Before securing share of throat and wallet, establishing brand equity and cementing share of mind is essential. Refocusing on inclusive, democratised and indulgent offerings, building authentic engagement in social media and venturing outside comfort zones to collaborate with other iconic brands are all key to breaking through marketing noise.

The future is here, from reprioritising sustainability initiatives to experimenting with tech solutions and testing new horizons with RTDs, innovation experimentation is back

Technology, sustainability and RTD experimentation all provide new avenues for growth, fresh positioning and branding opportunities, and an answer to many of the existential questions facing the industry – from maturity and saturation to environmental disruption and beyond.