BY KYLE SWARTZ
PHOTO CREDIT : © AFRICA STUDIO - STOCK . ADOBE . COM
5 Alcohol Category Trends in 2023
With Covid-19 now firmly behind us , 2023 can feel like the pandemic hangover year for beverage alcohol retailers . Gone are those boom years spurred by on-premise lockdowns and panicked consumer buying . Bottom lines have retreated . Are we in a recession ? Tough to tell . Depends on who you ask . ( Politics .)
What we can know for certain is that a number of trends remain strong , or have emerged , in 2023 . These are instances of customer behavior or successful branding that have transcended a single category to capture consumer dollars across the store . Below we explore five examples .
33 % of Americans said they spent $ 50 and above on a bottle of alcohol in 2022 vs . only 24 % in 2021 .
– Chris Williams , Executive Vice President , National Accounts , Southern Glazer ’ s Wine & Spirits .
PREMIUMIZATION PREVAILS
The dominant alcohol trend of our modern era remains premiumization . Pre-Covid , during the pandemic and now afterwards in uncertain financial times , consumers continue to trade up for better alcohol .
“ While premiumization has been an ongoing trend for some time , the Covid-19 pandemic further enhanced it ,” explains John Bilello , CEO of Sweet Amber Distilling Co ., whose lineup includes the premium whiskey line Blackened . “ Not only did consumers have more time to learn about the nuances and complexities of different spirits and categories , but they were also hosting more intimate gatherings and purchasing higher-quality brands to celebrate the time together .”
“ This penchant isn ’ t likely to change anytime soon , as consumers want products made from high-quality ingredients that are exceptionally made ,” he adds . “ The perception of quality enhances the overall drinking experience , and satisfies consumers ’ desire for something special and unique .” Agreeing with Bilello is Melissa Rift , Master Taster at Old Forester .
“ The last few years , consumers are drinking less — especially younger LDA drinkers — so they really prioritize what they ’ re drinking ,” she says . “ They want higher-quality spirits . They want something that ’ s higher age , higher proof . They ’ re drinking less , but better .”
That last point seems key in defining the modern , younger , LDA consumer .
“ The idea of ‘ drinking less , but drinking better ’ has been happening for years , but most recently , particularly coming out of the pandemic , this theory was cemented ,” says Mike Montgomery , CEO and Cofounder , Blue Run Spirits . “ The modern consumer prioritizes quality over quantity . They choose craftsmanship over mass produced .”
This remains true despite inflation hampering our economy .
“ 33 % of Americans said they spent $ 50 and above on a bottle of alcohol in 2022 vs . only
16 Beverage Dynamics • July 2023 www . beveragedynamics . com