From the Editor
“Dry January,”
“Sober October” &
Overall Alcohol Consumption in the USA
As some consumer segments focus more on healthier lifestyles, their beverage consumption habits shift -at least temporarily- into de-alcoholized drinks (mocktails and non-alcoholic beers and wines). Two manifestations of this trend in the USA are “Dry January” and “Sober October,” months when participants voluntarily refrain from consuming alcohol.
Luis Ayala
Does “Dry January” have the strength to endure or will it fade away, as most New Year resolutions tend to do? According to NielsenIQ’s Consumer Outlook Report, total spending on de-alcoholized drinks has more than doubled since the pandemic started. On the other hand, the distilled spirits industry experienced a volume growth of 9.3% and a revenue growth of 12% in 2021, marking its 12th consecutive year of market share gains.
Should more craft distillers or new brands turn their attention to developing de-alcoholized drinks? The answer depends on geographics and demographics: if a company is located near a large consumer base with a proven track record of de-alcoholized beverage consumption, then the answer is YES! They should definitely ADD a new expression to their portfolio, to take advantage of the trend.
Large multi-national companies take a long time to formulate new products, even longer to conduct focus groups and market research. Additionally, many of them will not want to risk their brand name by launching something that may not be a hit or that may have a limited market life. Small companies can be faster to market, benefiting from the additional revenue, while consumers are typically more forgiving when dealing with change coming from craft producers.
Diversity, “healthy” competition and innovation are all needed attributes of any robust industry.
Cheers!
Luis Ayala,
Editor and Publisher
http://www.linkedin.com/in/rumconsultant