Back In The Bubble: How Quarantine Influenced Beverage Buying Habits?

By Raj Beri, Founder and CEO of Elegance Brands

The pandemic not only taught consumers to be craftier when it comes to their at-home activities, but it also ushered in an entirely new group of beverage enthusiasts. At the beginning of the pandemic, there was a welcomed feeling to venture out of your comfort zone when it came to cocktail making. Whether it was a hit or miss, it was about the time spent with the loved ones in your bubble, but this mentality has shifted.

Moving into phase two, consumers have seamlessly graduated from students to teachers — owning their taste profiles along the way. The attitude to beverages has shifted into what will now define the industry for the next year. Consumers are still eager to celebrate the silver linings — with a beverage in hand — but the industry will need to adapt to this newfound appreciation for mindful drinks, innovative ‘bubbly’ options, and online access.

Here will be some of the biggest changes…

Mind Over Matter

While alcohol consumption will continue to progress in 2021, there is a consensus to limit the amount of alcohol and find more mindful alternatives. As restrictions lifted during the summer, consumers waistbands weren’t as forgiving — sparking an urge to change. The “new year, new you” attitude affixed to January came more into focus as consumers moved back indoors and efforts to normalize everyday life stalled.

A recent report found there will be a “400% increase in the no and low alcohol category” meaning that while consumers will still be drinking, there will be fewer heavy pours. Beverage leaders should be mindful to increase options for consumers that account for their health and overall wellness — both physically and mentally. The industry should consider adapting products to ensure their offering cleaner alternatives that use natural ingredients free of artificial colors and flavors.

Consumers Were Crafty… Now the Industry Needs to Be

The seltzer trend is here to stay, and as a proof point, Anheuser-Busch is set to spend more than $50 million on their own seltzer brewing capabilities. The favoritism displayed on seltzer even extended to breakthrough brands, such as High Noon, which found success through strategic partnership and consumer adoption. Consumers will seek new entrants in the ready-to-drink cocktail space, and it is time for the industry to adapt their canned beverages for a new audience.

Beverage leaders should feel inclined to deviate away from the standard using entirely different liquid bases, such as coconut water, which has also seen an increase in demand. Adapting canned cocktails will also be important in terms of offerings and providing bar quality drinks with accessibility and ease. While private gatherings have pushed consumers indoors, it does not mean there is not a demand for superior quality — even if canned. The industry will need to balance these ideas carefully to be considered successful.

Taking Your Booze from Offline to Online

The move towards e-commerce will persist well into the next phase of the pandemic. Even as the world normalizes, there is a shift in the way consumers access beverages. The local liquor store has morphed into a virtual sensation and the local bartender has become the everyday consumer — one who is willing to roll up their sleeves to make their own martini.

To accommodate demands, it will be important to adapt the e-commerce mentality to business operations. Nielsen found that online sales of alcohol skyrocketed over 200%, and consumers are bound to continue sourcing their alcohol online. Leaders should act now to improve the online experience for consumers. This will not only help drive sales, but also turn consumers into brand loyalists.

Last Call…

The spirts and beverage space will continue to adapt and change as consumers spend more time quarantined at home. Major deals, such as Uber’s agreement to buy Drizly, and new, innovative entrants in the market will also continue to influence consumer behavior. Mindful beverages, crafty RTD cocktails and online access will ultimately determine brand success. Consumers expectations have only been driven higher and now is the time to perfect, celebrate and adjust to these changes.