Insights from Bar Convent Berlin
We recently attended Bar Convent Berlin, the largest trade fair for the bar and beverage industry and gained invaluable insights into the current trends shaping the spirits market. This annual event attracts bar owners, bartenders, distributors, and manufacturers from nearly 90 countries, providing a vibrant platform to network, learn about product innovations, and attend seminars on key industry topics.
Let's delve into how these trends are transforming the on-premise experience and influencing consumer preferences.
Premiumization in the On-Premise
Despite facing economic challenges, premiumization remains a significant driver in the spirits industry, particularly within on-premise venues. Consumers are increasingly opting for "fewer, higher-quality drinks" when dining out or visiting bars. This trend is especially pronounced among millennials, who are demonstrating a growing preference for luxury and super-premium drinks.
However, the landscape is shifting. While super-premium spirits maintain their appeal, there's a noticeable trend toward medium or lower-quality drinks in certain segments. This polarization presents both challenges and opportunities for brands and venues alike.
To capitalize on premiumization, it is crucial to:
Target the Right Demographics and Occasions: Understanding the specific needs and desires of various consumer groups can guide effective offerings.
Adapt Offerings to Meet Evolving Consumer Needs: Flexibility in product selection ensures alignment with changing preferences.
Leverage Bartender Advocacy and Staff Recommendations: Engaging knowledgeable staff can significantly enhance consumer experiences and drive sales.
Focus on Earlier Day Parts: As consumers increasingly shift toward earlier outings, bars can cater to this trend with tailored offerings.
A focus on Whisk(e)y
This years Whisk(e)y Embassy programme was curated by whisky expert and spirits author Becky Paskin and her self-founded OurWhisky Foundation.
This years event programming demonstrated that Whisky, particularly Scotch, is experiencing a renaissance in the cocktail world. Innovative bartenders and brands are showcasing whisky's versatility in a variety of mixed drinks. Key strategies supporting whisky's resurgence include:
Educating Consumers About Whisky Flavour Profiles: Using relatable comparisons, such as dessert analogies, helps demystify whisky for newcomers.
Highlighting Whisky's Suitability in Diverse Cocktails: Emphasizing unexpected pairings, such as whisky in Espresso Martinis, broadens its appeal.
Debunking Myths: Addressing misconceptions that whisky is solely a winter drink or only for an older demographic can attract a younger audience.
Showcasing Craftsmanship and Quality: Highlighting the artistry behind premium whiskies justifies their price points and enhances consumer appreciation.
The Rise of Mindful Drinking
The trend of mindful drinking has surged, driven by consumer demand for healthier lifestyle choices. This movement goes beyond traditional non-alcoholic options, emphasizing sophisticated, premium alternatives to alcoholic beverages. Key aspects of the mindful drinking trend include:
Market Growth: The low and no-alcohol category has seen market value rise dramatically, from $8 billion in 2018 to $13 billion in recent years.
Innovative Consumer Demand: A growing appetite for high-quality non-alcoholic options is pushing the industry to innovate.
Emergence of Premium Non-Alcoholic Spirits: These products offer the same level of sophistication as their alcoholic counterparts.
New Drinking Patterns: Trends like "#zebradrinking" (alternating between alcoholic and non-alcoholic drinks) and "#bookending" (starting and ending with non-alcoholic options) reflect evolving consumer behaviour.
To thrive in this dynamic landscape, brands and venues should:
Offer a Diverse Range of Premium Spirits: Including both alcoholic and non-alcoholic options caters to various consumer preferences.
Educate Staff and Consumers: Increasing awareness of the quality and craftsmanship behind premium products builds credibility and trust.
Create Innovative Cocktail Menus: Curating options that appeal to various preferences and occasions can enhance customer experiences.
Emphasize Experience Over Alcohol Content: Focusing on the quality and experience of drinks will resonate with today’s discerning consumers.
Conclusion
As the spirits industry continues to evolve, staying attuned to these trends will be crucial for success in the premium spirits market. By embracing premiumization, celebrating whisky's versatility, and catering to mindful drinkers, brands and venues can create memorable experiences that resonate with today’s consumers.
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