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The change in alcohol consumption is arguably the biggest new brand opportunity in CPG. Household names are emerging every year in booze, all with a common theme: "better for you" products
Last I checked alcohol isn't "good for you" so what's going on here? Thread
Last I checked alcohol isn't "good for you" so what's going on here? Thread
1/ In the 2010s as people upgraded all aspects of their lifestyle, from their diet to their beauty products to their fitness routine, it was inevitable that they would eventually question their drinking habits
2/ Problem is that until recently they didn't know how bad their drinks were. Alcohol brands aren't required to disclose calories, nutritional facts or ingredients so, not surprisingly, the vast majority choose not to https://recipes.howstuffworks.com/alcohol-nutritional-labels.htm
3/ Enter @MichelobULTRA - who decides to disclose its 95 calorie / 2.6 carb stats to brand as healthier. Check out their 2017 Super Bowl spot...
No, I didn't post a Nike ad by mistake. Those are people working out for the first 45 seconds of a beer ad
No, I didn't post a Nike ad by mistake. Those are people working out for the first 45 seconds of a beer ad
4/ Turns out being the beer for fitness buffs works. Michelob was the fastest growing major beer brand in the US in 2017, up 21% and capping a decade of more than doubling to over $1 billion in sales!
5/ 2018: You can't go 5 seconds on a patio without seeing a glowing orange wine glass. The Aperol Spritz became the drink of the summer, growing 48% YoY in the US
Why? Low ABV. At 11% Aperol was lighter than your typical spirit, meaning less calories / less hangover
Why? Low ABV. At 11% Aperol was lighter than your typical spirit, meaning less calories / less hangover
6/ 2019: White Claw Summer. It was everywhere. @Whiteclaw grew 250% to reach $1.5 billion in retail sales just three years after launching in 2016!
Why? 100 calories, 2g of sugar, gluten free, easy to have a few guilt-free
https://www.cnbc.com/2019/12/05/how-white-claw-and-the-hard-seltzer-craze-are-taking-on-beer.html#:~:text=Sales%20of%20White%20Claw%20are,by%20the%20end%20of%202019
Why? 100 calories, 2g of sugar, gluten free, easy to have a few guilt-free
https://www.cnbc.com/2019/12/05/how-white-claw-and-the-hard-seltzer-craze-are-taking-on-beer.html#:~:text=Sales%20of%20White%20Claw%20are,by%20the%20end%20of%202019
7/ 2020: This year it's @highnoonsunsips. Since launching a major @barstoolsports partnership in May, High Noon is sold out everywhere. It's harder to buy High Noon today than it was to buy toilet paper in April
Why? It's seltzer but vodka- not malt-based. Premium. Cleaner.
Why? It's seltzer but vodka- not malt-based. Premium. Cleaner.
8/ The demise of innovation from large CPG has been well documented (h/t @ryancaldbeck) so like all of the big success stories in food ( @RXBAR) and beverage ( @drinkbai) these breakout booze brands would be entrepreneurial success stories, right? https://twitter.com/ryan_caldbeck/status/974045874274811904?s=20
9/ …wrong.
@MichelobULTRA = @abinbev
@AperolUSA = @campari
@WhiteClaw = @mhl
@highnoonsunsips = E&J Gallo Winery
Big booze is cleaning up! So are they the exception to the rule? Are these big companies actually better positioned to innovate than startups?
@MichelobULTRA = @abinbev
@AperolUSA = @campari
@WhiteClaw = @mhl
@highnoonsunsips = E&J Gallo Winery
Big booze is cleaning up! So are they the exception to the rule? Are these big companies actually better positioned to innovate than startups?
10/ Not so fast...
Big alcohol has the biggest scale advantage in CPG: three tier distribution. Prohibition era legislation still thrives today ensuring that every retailer has a gatekeeper: a distributor who is HIGHLY incentivized to keep big companies like ABI happy.
Big alcohol has the biggest scale advantage in CPG: three tier distribution. Prohibition era legislation still thrives today ensuring that every retailer has a gatekeeper: a distributor who is HIGHLY incentivized to keep big companies like ABI happy.
11/ Plus, the long tail of on and off premise retail purchase points means that historically scale has mattered more than brand and product differentiation. People can't buy what's not on the menu...
12/ My hot take is this is about to change. The next few years will be dominated by independent brands. The biggest distributors, Southern Glazers / RNDC, are moving FAST on startups
v1 was about scale but v2 is all about product and brand - the "big guys" will be overmatched
v1 was about scale but v2 is all about product and brand - the "big guys" will be overmatched
13/ Barriers to scale independently are lowering
eCommerce is emerging: Some brands ( @drinkhaus) can build an audience DTC without pandering to distributors; others can use platforms like @Drizly
Funding is better: less vice clauses and VCs who don't believe in bev alcohol
eCommerce is emerging: Some brands ( @drinkhaus) can build an audience DTC without pandering to distributors; others can use platforms like @Drizly
Funding is better: less vice clauses and VCs who don't believe in bev alcohol
14/ The healthier shake-up of this space is only beginning. Consumers are craving it
Every trend we've seen in non-alc will play out in alc (low sugar, ingredient transparency, probiotics, etc) and now is the time for small brands to take the baton
Have a drink and enjoy
Every trend we've seen in non-alc will play out in alc (low sugar, ingredient transparency, probiotics, etc) and now is the time for small brands to take the baton
Have a drink and enjoy
