Business Case

Trends

At-Home, But With A Hospitality Appeal

With Covid-19-related limitations restricting the number of visitors to distilleries, bars, and restaurants, the industry has had to discover new ways to reach consumers — but with change comes fresh opportunities.

“Now we’re almost a year into life under a pandemic, and consumer behavior has shifted,” Kevin Hall, corporate development, Moonshine University, said in the release. “Habits formed under this shared ‘new normal’ have been cemented. Consumers now expect their favorite businesses to offer curbside and delivery options — including distilleries.”

In many states, regulations have been relaxed to allow for formats friendly to current circumstances, but the permanency of these allowances is a matter of state and local governments — either way, Moonshine's experts anticipate the trend will at least continue into 2021. In the meantime, distilleries are encouraged to be attentive to hospitality, even as their customers enjoy spirits at home.

“Distilleries need to be just as creative with contact-free delivery and to-go cocktails as they are with nurturing relationships between consumers and their brand,” Blake said. “That authentic appeal to hospitality is so important for the longevity of that relationship.”

Back to the Backyard

In times of crisis, consumers often look to spirits for comfort. Though the “tried and true” brands belonging to the largest producers have been getting most of the love lately, craft distilleries shouldn’t be counted out just yet. With strong connections to their communities, smaller producers will find success in the New Year by utilizing hyperlocal approaches that spotlight regional expressions.

“It’s something we say all the time in our classes: ‘own your own backyard,’” Moonshine University’s Director of Spirits Education Colin Blake said in the release. “That’s still the best move for craft distillers. Forget about expansion plans for now — focus on serving your community.”

Craft American whiskey provides a window into how brands are already using local appeal to create success. In Texas, for example, craft distilleries are making whiskey and bourbon with an authentically Texan flair. As experimentation across the United States continues, Moonshine University anticipates more regionally distinctive spirits to crop up in 2021, with craft producers leading the fray.

The Premium Experience

After a year of difficulties and robbed experiences, consumers are more likely than ever to indulge in premium spirits. The "premiumization" trend that has been seen in many categories over the past few years got a strong boost in 2020 that we expect to continue into 2021 as consumers seek authentic, elevated experiences from the comforts of home.

“Sipping tequilas and mezcals will offer adventurous new taste experiences, while high-end gin and rums will be crucial for re-creating sophisticated bar-and-restaurant-worthy cocktails,” says Blake.

In 2021, consumers will also trend beyond small batch or single barrel releases and begin to take up more interest in experimental expressions of premium positioned products — think “grain-to-glass,” creative secondary maturations, innovative mash bills, unique blends, and the like.

Alcohol Free Gin

Alcohol Free Gin - HEALTH CONSCIOUSNESS - Has played out in alcohol in multiple ways in the past few years (e.g. hard seltzers, ‘keto’ wine, ‘vegan’ wine, vegan beer, Dry January/Sober October, non-alcoholic beers and IPAs), no surprise to see it continuing. With more online ordering in Winter 2020/2021 driving the search interest up too.

Spirits delivery

We know that startups dealing with sex, drugs and alcohol don’t always have the easiest ride but, looking beyond sex, it’s booze delivery businesses that are really feeling the love.

Naked Wines, the UK wine box company founded in 2008, experienced an unprecedented surge in demand when the country went into lockdown. “It was the highest order week outside of the Christmas period since we started,” chief financial officer James Crawford says. “At one point, we had to temporarily pause taking new orders.”

In Paris, France, alcohol delivery app Kol aims to deliver wines and spirits in less than 30 minutes. Cofounder Pierre Nicolet says business has “doubled since the lockdown”.

As for other forms of intoxication? The Economist reports that party drugs are out, and weed is in. But will the thriving CBD market help the isolating masses find new ways to mellow?

Resources

https://www.bizjournals.com/louisville/news/2021/01/15/2021-drink-trends.html