Restaurants Wonder What to Do with the ‘Sober Curious Mindful-Drinking’ Customers

 

Have you noticed that younger generations are practicing “mindful drinking,” a philosophy that promotes meditation and awareness of the impact that alcohol has on overall mental health. If not you’re, not the only one Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® had not either.  However, after reading new research; he suggested we share a article by Lauren White Director of Client Partnerships-Beverage Alcohol and CBD, VDX.tv.  So here we go:

“A noticeable shift has emerged among Millennials and Gen Z, with a growing interest in low-alcohol or nonalcoholic (NA) alternatives to traditional alcoholic beverages. This “sober curious” movement is driven by social media, heightened awareness of the impacts of excessive drinking, an increased focus on health, and the growth of other options (like cannabis) for socializing.

The rise of online communities like Sober Grid, which supports the sober curious movement, and participation in Dry January prove the growing interest in this lifestyle. Alcohol purveyors and brands that want to stay relevant must find a way to genuinely resonate with these consumers and align their offerings with evolving preferences. Not every brand is fit to jump on this bandwagon, but for those that are, it’s important that any NA or low-alcohol product offerings authentically fit with the brand’s image.

Why the Shift?

Embracing the sober curious movement is more than just a fad – it’s a reflection of the evolving values and priorities of the younger generations. Health consciousness, wider availability of options when socializing and the desire for higher-quality products have reshaped the alcoholic beverage industry. In fact, in 2022 alcohol consumption within the United States decreased slightly year over year, driven by economic conditions, personal health decisions, and the recent surge of nonalcoholic beer, wine and spirits.

Younger generations are also practicing “mindful drinking,” a philosophy that promotes meditation and awareness of the impact that alcohol has on overall mental health. A recent Harrogate Spring Water study found that 57% of consumers are trying mindful drinking and of those consumers, Gen Zers lead the way, with 69% choosing to alternate alcoholic drinks with NA or low-alcohol alternatives during social gatherings.

With so many pivoting to this new lifestyle, how can alcohol and beverage retailers and brands bring awareness and educate consumers about their offerings?

Listening and Adapting to the Sober Curious

Sober curious consumers and mindful drinkers are increasingly favoring quality over quantity.

With this shift in preference, a trend in premiumization has arisen, where brands are offering higher-quality, more expensive drinks for consumers who want to enjoy a great cocktail but desire to consume less. This also extends into the NA beverage market, with many companies offering sophisticated nonalcoholic beer, wine and spirit options. Companies like Heineken have championed this movement with Heineken 0.0, its alcohol-free beer that promises the same full-bodied taste as the original. High-quality alternatives have become a core part of many brands’ portfolios. 

According to a recent DISQO study, 32% of respondents said that they were curious about trying alternative beverages and 24% said that they’re supporters of such a lifestyle shift. Keep in mind that it’s important to know your consumer. If your target customer would be averse to a nonalcoholic beer, start with a small strategic launch, gauge the market reaction and scale from there.

Help Build Authentic Customer Connections

Targeted connected TV (CTV) and digital advertising are crucial for retailers and alcohol brands to efficiently reach the right consumers, build awareness and stay authentic. CTV in particular presents a unique opportunity: 62% of daily CTV audiences fall between 18 and 34 years old, making it an ideal channel for reaching the generations driving the sober curious movement.

For alcohol brands, CTV helps maintain responsible advertising through more granular audience data than traditional linear buys. Precise targeting on CTV allows marketers to serve all promotions, even NA promotions, to consumers of legal drinking age. CTV also enables advertisers to target specific audiences based on demographics, interests and viewing behavior. For example, the target NA audience may include health-conscious individuals, occasional drinkers or those sober curious consumers. Lastly, CTV can deliver personalized, relevant ads to the right audiences while they’re at home, relaxed and receptive.

Interactive digital video advertising complements CTV by offering a lean-in experience for mobile and desktop users. For example, educational content like product galleries, hotspots, recipe galleries and customer reviews can be included on interactive tabs within the video unit to invite audiences to engage and learn more about your NA or low-alcohol offerings on their own terms.

Retailers can tailor promotions to consumer preferences, optimizing product displays and offering personalized discounts. Store locator maps can even be integrated into the video ad to help users discover their nearest retailer offering NA or low-alcohol products, thus shortening the path to purchase and increasing in-store foot traffic. This level of personalization enables brands to provide customers with a more engaging and authentic experience.

The sober curious movement isn’t a passing fad, but a profound transformation in consumer behavior. Retailers and alcohol brands must adapt to these changing preferences authentically to remain relevant in market. By embracing this movement and engaging with consumers genuinely, retailers and brands can establish themselves as leaders in the evolving landscape of the alcoholic beverage industry.

Lauren White Bio: As director of client partnerships at Emeryville, Calif.-based VDX.tv, Lauren White has played a pivotal role in driving the success of high-profile premium CPG brands, specializing in the beverage alcohol and CBD categories. White is a founding member of Tech Up for Women and plays an active role in the Alliance for Women in Beer. She can be reached at lauren.white@vdx.tv.”

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

Circle K Testing Alcohol Delivery and More

 

New electricity can give a brand a buzz according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. In a new partnership with Saucey, Circle K just might be able to give its customers a buzz.

In case you did not know Saucey, is a delivery platform that offers ASAP and scheduled alcohol deliveries straight to consumers' doorsteps. Thus, this partnership might not only create new electricity for Circle K brand but it is creating quite a buzz in the foodservice sector as well.  Once again, the line between food retail sectors is burring in the minds-eye of the consumer getting thinner and thinner as technology elevates key consumers touchpoints.

Circle K customers in Ohio and Arizona. New markets include Cleveland, Toledo, Akron and Youngstown, Ohio; and Phoenix, Tucson and other municipalities in Arizona; can place an order through Saucey's website or app for selections ranging from a bottle of wine to a six-pack of beer to a variety of convenience items, including soda, candy, snacks and more.

News of the partnership comes soon after the retailer's parent company, Alimentation Couche-Tard Inc., announced increased focus on delivery and distribution, including the investment of nearly $55 million by its Circle K Venture Fund.

Chris Vaughn, CEO and Founder of Saucey, stated, "We're thrilled to be able to expand our delivery range in the midwest," ... "Demand for convenience items in tandem with alcohol has been steadily on the rise for years. Through this new partnership, we're able to provide even more Ohio residents with a broader assortment of products in even more categories than previously available."

Vaughn continued, "Since the start of the pandemic, the demand for the delivery of alcohol, food, consumer goods and basic convenience items has skyrocketed".

Yet there is more as Circle K is taking another swipe at the grocery sector food has partnered with online grocer Farmstead to explore innovative supply chain, distribution, e-commerce fulfillment and marketing models. Regular readers of this blog know that the Halo of better for you is a mainstay within the grocerant niche. 

Now, Farmstead is the first online grocery brand to offer fresh produce, locally sourced fare plus national brands, delivered for free, at better prices than local supermarkets. That’s a big thing within the C-store sector. The partnership is expected to bring notable advancements to both parties’ operations:

·         Opening up new formats for e-commerce fulfillment in U.S. suburbs using Farmstead’s Grocery OS tech stack and Circle K’s retail footprint

·         Improving Farmstead’s national supply chain for non-perishables and convenience items

·         Collaborating on distribution

·         Co-marketing across a variety of new projects

In addition to forging a commercial agreement with Farmstead, Circle K has made an equity investment in the company via its Circle K Venture Fund, which was created to invest in companies developing forward-looking solutions that are shaping the future of convenience.

Circle K is proud to have invested in Farmstead, as part of its effort to cultivate and support retail innovation that transforms the customer experience in its stores and beyond.

Pradeep Elankumaran, co-founder and CEO at Farmstead, said the market is in the early innings of significant change in the U.S. food system, which requires new supply and technological alliances. “We’re thrilled to be partnering with Circle K on that journey,” he said, “with its scale and decades of multinational experience in the convenience industry, and to be advancing with Circle K as an investor.”

According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”  That said, what are you waiting for?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869