“ There are several consumer behaviors and trends we ’ ve tapped into – most importantly , humans ’ inherent desire to connect with each other and the world around them .”
The Beer Industry Transitions
by KYLE SWARTZ
along tiled floors , people quickly grabbed whatever products they knew and trusted the most .
“ During the pandemic , we saw a massive bump in beer purchases , especially with familiar , value-oriented brands ( relative to their segment within beer ),” recalls Sandeep Anaokar , chief marketing officer , Mahou USA , whose portfolio includes Founders Brewing Co ., Avery Brewing Co . and Mahou Imports .
With bars , restaurants and taprooms closed , drinking occurred mostly at home . Consumers built out their own backbars and learned how to mix cocktails . Or , they learned to buy premixed cocktails , setting off the ongoing ready-todrink ( RTD ) beverage boom . The hard seltzer movement continued , as did another rising trend : “ better- for-you ” products , with no or low ABV .
In the later stages of the health crisis , the economy fell ill with inflation . Naturally , this affected purchasing preferences . “ Following the pandemic ’ s stay-at-home phase , there was an immediate shift away from the darlings of yesteryear , like craft and hard seltzers , with consumers instead opting for value brands , regardless of the beer segment ,” Anaokar says .
Nowadays , inflation has cooled ( comparatively ), while Covid−19 is more endemic than threatening . In this new environment , what can we expect from beer ?
Perhaps more so than any other beverage alcohol category , beer has undergone the most change in the past five years .
Pre-pandemic , a rise in microbrewery taprooms drove greater consumer experimentation , which in turn helped fuel a meteoric rise in craft beer . Suddenly , everybody had opinions on hazy IPAs and kettle sours . And the more locally produced , the better .
Then Covid−19 arrived . On-premise operations shut down for months . Financial damage followed . Breweries shed employees and applied for PPP loans .
Beer orders for curbside pickup and deliveries to local customers could only make up so much monetary ground .
Meanwhile , many consumers sheltering at home made short , panicked trips to local liquor stores . Masked up and following arrows laid out
“ There are several consumer behaviors and trends we ’ ve tapped into – most importantly , humans ’ inherent desire to connect with each other and the world around them .”
– Meredith Ruskin , vice president of marketing for Kona Big Wave
TAKING STOCK OF 2023
“ The industry is interesting right now , with some very dynamic shifts in trends from a macro perspective ,” says Eric Franco , vice president of U . S . sales for BrewDog USA . This multinational company ’ s portfolio includes distributed beers , more than 100 pubs , hotels , breweries , a cidery and a distillery .
“ We are all faced with economic uncertainty , a shift in taste profiles available to drinkers across the country , and how everyone in the ‘ circle of retail ’ manages their own business while trying to actively be a solution to others ,” Franco says . “ As producers , today ’ s ‘ state of affairs ’ requires us all to look at how we are operating and to ensure what we produce is high quality , answering the demand of both retailers and consumers .”
Which is to say , a lot is actively shifting . And much of that is shifting online , as social media and the importance of digitally connecting with consumers has only grown .
“ There are several consumer behaviors and trends we ’ ve tapped into — most importantly , humans ’ inherent desire to connect with each other and the world around them ,” says Meredith Ruskin , vice president of marketing for Kona Big Wave . “ This observation is infused in every way we show up to our fans .”
Perceptive brands have tapped into this consumer habit : the need to share moments of happiness and human connection . In other words : the importance of social media and capturing drinking occasions .
“ We recently launched our ‘ Acts of Aloha ’ initiative , which encourages and celebrates the moments that bring people together , spread positive vibes and embrace the spirit of Aloha ,” Ruskin says . “ Throughout summer 2023 , we gave aways $ 100,000 in cash and prizes to fans who shared the ways they ’ d participate in ‘ Acts of Aloha ’ — those true , genuine moments of unity — to help create more unforgettable moments of togetherness .”
At the same time , as consumers return to taprooms and take their time browsing retail stores again , the pre-Covid
20 Beverage Dynamics • September 2023 www . beveragedynamics . com