EDITOR ' S NOTE

It’ s no secret that the alcohol industry suffered a difficult year in 2024. We are far removed now from the Covid−19 retail boom, and the subsequent years of shortages and inflation. This postpost-pandemic period brings a new set of challenges.

For one, younger LDA consumers do not drink like their parents. Gen Z, in particular, is among the lightest-drinking generations of all time. If Boomers reach for wine, and Millennials enjoy bourbon and craft beer, then Gen Zers seemingly prefer... cannabis.

Many studies have pointed to this generational trade: ABV for THC. Gen Z has made this switch for several reasons. They are an extremely health-conscious( and just generally conscious) group that sees alcohol as unnecessary calories, bad for mental health, and causing unwanted hangovers. No wonder we see so much growth these days for low- / no-alcohol products.

Gen Z also seemingly prefers staying home and consuming cannabis, rather than going out to bars and restaurants. This is an economic choice for a generation that can be known for its financial doom and gloom( explained in part by the difficult inflationary era when they entered adulthood). The pandemic also conditioned younger consumers to remain at home, socializing via text and Xbox.

Moreover, Gen Z came of age at a time when cannabis legalization was sweeping across the country. Pot does not have nearly the same stigma for them as for older generations, appearing as benign now, legally, as alcohol.

It should come as no surprise, therefore, that among the most popular products at beverage alcohol retailers these days isn’ t even alcohol. After years of remaining an afterthought, something to stock a few of by the counter, THC / CBD drinks have exploded in sales. Traveling the country last year, I saw stores increasing their sections for these popular beverages by two, five or even ten times.

As an entire generation turns away from alcohol, another threat emerges. With changeover in the White House comes new foreign policies, The threat of tariffs and trade wars has reemerged. Alcohol was swept up in the crossfire the last time Trump was president. Unfortunately, it looks like the industry will face similar headwinds once again.

It’ s quite a lot. But what else is new? Incoming NABCA Board of Directors Chair Kathie Durbin recently said of operating in the alcohol industry:“ There is a cyclone around us that is always moving.” Perfectly put. There’ s a storm brewing continually. The best we can do is weather the trials, looking for opportunities like rays of sunlight through the clouds, whether that be THC / CBD drinks or nonalcoholic drinks. Keep an eye on Beverage Dynamics for help navigating these stormy times.

Beverage Group Vice President Jeremy Nedelka Tel: 763-383-4413 email: jnedelka @ epgacceleration. com

Editor, Off-Premise Kyle Swartz Tel: 763-383-4447 email: kswartz @ epgacceleration. com

Trade Managing Editor Krystina Skibo Tel: 763-383-4419 email: kskibo @ epgacceleration. com

Contributing Editors Melissa Dowling, Marnie Old, Tom Shay

National Account Director Debbie Rittenberg Tel: 763-383-4455 email: drittenberg @ epgacceleration. com

Associate Managing Art Director Nicole Siewert

Senior Product Manager, Data & Insights Marina Velez Tel: 763-383-4453 email: mvelez @ epgacceleration. com

List Rental Kris Grauer email: kgrauer @ npsmediagroup. com Tel: 203-822-7933

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Sr VP / Audience Development Joanne Juda-Prainito Corporate Operations Director Bernadette Wohlman CEO Marion Minor

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Beverage Dynamics is published by EPG Brand Acceleration Editorial and executive offices at 7760 France Avenue South, Suite 810, Bloomington, MN 55435.

Kyle Swartz Editor, Off-Premise

4 Beverage Dynamics • Summer 2025 www. beveragedynamics. com