The alcohol beverage category is facing shifting consumption behaviors, social norms and product preferences that are forcing brands to dramatically rethink how they go to market and build
brands.
Gen Z consumers are drinking less than previous generations as total U.S. and global alcohol beverage volumes and sales remain in the red, with overall volume down roughly
4.5% to 5%, according to IWSR’s US Navigator product.
Gen Z-ers are also simplifying their choices by sticking to one type of beverage per occasion. This makes winning the first drink of
the night more important than ever.
Another notable disruptor in the category is the ready-to-drink segment. According to Forbes, RTD is now “a structural pillar of U.S. alcohol
consumption” and accounts for roughly 12.5% of total U.S. sales. For many brands, RTDs represent the best hope to get out of the red.
The collision of all of these consumer and
category changes requires rethinking the tried-and-true ways of building alcohol brands.
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The New Playbook
In order to earn repeat purchases as well as win the first
drink of the night, RTD marketers need to double down on loyalty building tactics - but we are not just talking about emails, recipes and gifting that have been staples of the Alc Bev category
marketing mix for decades.
It's time for a new playbook, using the following tactics:
Build long-term partnerships with talent and influencers. Loyalty is best built
through cultural relevance and repeat exposure. Take a deep dive into your target audience’s affinities and identify their most influential celebrities and creators that have an impact on
how they socialize, celebrate and hang out together. Building long-term relationships with talent should include evergreen social content, brand or product co-creation, IRL experiences and product
integration into their IP or entertainment properties. Taking an evergreen approach will ensure your brand is consistently showing up in their feeds in a meaningful way - on the right side of culture
and at the right moments.
Get your brand ready and visible for AI search
“Hey ChatGPT, help me plan a party”
“Claude, what should I buy for a chill
night in with some friends?”
More and more people are turning to LLMs to help them with basic party planning activities like brainstorming themes, budget allocation, food and drink
planning, shopping lists, invitations and entertainment. Earn their loyalty by being easy to find, providing utility and enabling frictionless purchase.
LLMs frequently cite older
pages because they believe they are more reliable than newly published pages. Instead of publishing new pages or creating a dedicated microsite, try refreshing older pages instead.
Make a
big impact on micro communities. You know what builds loyalty faster than almost anything else? Making your consumers feel really, really special.
That’s why
establishing a sponsorship strategy for micro communities will be critical for RTD brands who want to build loyalty quickly. Reddit is the de facto home for people who want to find and build community
around virtually any interest, activity or cause. Find out which sub-Reddits your high-value consumers call home, and make their next virtual or IRL gathering a memorable one.
While
category disruption can feel painful, it often provides real opportunity for new brands and challenger segments to win. Throw out the old playbook and focus your loyalty-building tactics where your
consumers spend their time and are genuinely open to brand involvement.