Business people need to be innovative and highly creative to survive amidst competition. There is no time this has been more evident than during the current pandemic period. If you are in a particular niche, you need special marketing techniques to ensure your product sales. Fortunately, the alcoholic beverage market is one of the easiest to hack. All you need is to focus on the methods that work. Most of these are easy to replicate and implement, especially in 2021 when things continue being affected by the Covid 19 Pandemic. A lot of bars and alcoholic dens and joints are still closed.
This leaves manufacturers of alcoholic beverages in a dilemma since it is no longer a straightforward affair to sell products successfully. Even so, this does not mean that it is impossible to sell products successfully. All one needs to do is look at the changing trends and align their marketing strategies to them. Fortunately, they are easy to keep up with. Businesses that want to stay afloat despite the numerous changes and shifts happening in the alcoholic beverage industry will adjust and accommodate the needed changes.
While some of these changes may be within control, others are not, and as such, participants should be watchful. Make sure you monitor any policy and tax changes that may happen along the way.
1. Pandemic Trends Keep Growing
Covid 19 pandemic makes things challenging to deal with because of the restricted movements. Some countries have tight measures that restrict movement and even govern the extent of interaction. Seeing that we live in uncertain times makes it challenging to do business too. If the threat of Covid 19 has changed a lot of how things operate today, a lot of creativity is needed to survive.
Business people need to think outside the box to attract customers and keep returning clients. People no longer dine and freely engage as they did pre-corona times. It is no longer easy to have families and friends gather in groups publicly to enjoy a good time where lots of alcoholic drinks were served. On the contrary, there seems to be a significant reduction in such beverages’ intake as many people switch to healthier options such as orange and other vitamin C-packed drinks. More people are turning to fresh juices which they make from fresh fruits at home.
Home bar tendering and such trends continue to rise as people prioritize safety measures as a way of ensuring they never gather in large numbers as they did before. Such safety measures may be restrictive and help small groups enjoy a good time without the risk of spreading the virus. What’s more, home bartending offers a cheaper option as cocktail mixing at home is cheaper; hence this may continue for a while, even long after the pandemic fears clear.
It is easier to enjoy a cocktail of your eagle rare 17 with close friends in your backyard than sharing it with a crowd at a bar. Businesses that want to tap into the alcoholic beverage market in 2021 should consider taking the home bartending approach to selling their products and services away from the entertainment joints and closer to the people.
All they need to ensure is that they have a valid covid test that certifies them to mingle with families that are staying home but still want to enjoy a good time with those they love. This can be equated to the home delivery service that most people have turned to during this period, only that it involves alcoholic drinks.
2. Tap into Technology
2020 was the year where the pandemic’s effect hit most as many people feared stepping out without a plan. Many stuck to the government’s directives, where they followed each suggestion and advice given by the government. Even with these fears, people still indulged in their favorite drinks and alcoholic beverages. This means that many still love the fact that they can order their favorite spirit or beer and enjoy it at home without necessarily having to visit the bar or hang out with friends in such places.
In this respect, technology has played a significant role in it. Most people have been ordering their rinks via websites and online selling platforms. Businesses in this sector have revolutionized their marketing and selling strategies, with many investing in revamping their websites and opening up channels and avenues that accommodate online selling options. For many companies, websites were marketing avenues that communicated a lot more information about them but not true selling avenues. However, with the pandemic, most of such companies have included the selling and buying option through their websites.
They have linked this to convenient delivery systems where customers order their drinks and deliver them to their homes stress-free. 2020 has been the one year that businesses have been forced to change to thrive. Any rigid business person has been pushed out of operation, but those who have been willing to transform their operations continue to thrive. Many such companies have benefited more financially because they have made more sales, yet their overhead cost has been significantly reduced.
Most industries continue to discover how vital technology is in improving their ability to reach out to more customers, distributors, and retailers. Any manufacturer or producer that intends to expand their market share and increase their product visibility cannot afford to ignore technology. Whether they are investing in the social media marketing or simply working on their website, it is essential to factor in company growth’s technological aspects.
3. Shifting Global Political Landscape
One of the trends that any person in business should be watching out for is the political atmosphere. Every time there is a change in leadership in any country or jurisdiction, it is essential to watch for potential policy transformation. More often than not, the region’s political leaders tend to develop new rules that direct the marketing of certain products, alcoholic beverages included.
For instance, in the US, when the new administration came in after the 2020 elections, there were concerns about whether they will review alcohol import duties. Any review can impact the industry either positively or negatively, depending on how it goes. How tariffs are imposed on these products matters since it influences the product’s final cost to the consumer. When the policies and taxes are high, there is the likelihood that the final consumer cost will also be high.
Most end-users may either move to other products, reduce their consumption, or even do away with the product entirely because of the significant price shifts. This means that the whole process is tied and cannot be treated independently. Another example would be the global relationships between countries.
If a country is a significant exporter or importer of these alcoholic beverages, any slight change in the relationships with their business partners can easily influence the product distribution. A product may disappear in a region for a while just because the diplomatic relationships are in shambles.
An example to watch out for is the relationship changes happening between China and other countries. Shifts in trade policies can also affect the alcoholic beverage market, for instance, the shifts in the Australian wine market. The other political point to watch out for would be the post-Brexit discussions vital for the European market. Industry stakeholders will be watching to see the impact of the trade flows and how the new EU laws on alcohol ingredient labeling will impact the scotch industry.
With the current e-commerce platforms, most governments worldwide may also decide to look into laws governing operations on the e-commerce front. A good movie that would benefit the market would be liberalizing the restrictive eCommerce regulations, especially in countries like Russia and India. Such a move would significantly change the alcoholic beverage industry, opening it up for positive and more profitable markets.
4. Brand Differentiation in the Ready to Drink Market Category
The ready-to-drink market category is already crowded and increasingly gaining popularity, especially during this pandemic period. People are looking for alcoholic beverages they can take on the go, not necessarily waiting for cocktail mixing and preparation to happen in bars. This category consists of hard seltzers, pre-mixed cocktails, and flavored alcoholic drinks.
These products are appealing and attractive to most consumers who prefer them because they are one-serve and can efficiently work for them regardless of where they are. It is essential in such periods where gatherings are restricted. You can buy a few pieces of your favorite takeaway drinks and indulge at the comfort of your home or somewhere away from typical crowding without necessarily violating any laid down rules that the government may have set in place.
Businesses looking to expand their reach in this sector should consider investing more in this kind of product because they are more attractive to the consumer. If past results are anything to go by, over 2000 new product entrants are ready to drink in the category from 2019 to 2020. This trend is also likely to continue in 2021. As more alcoholic flavors are discovered, and newer premium products come up on the offer, the market will likely expand and blow up even more.
Thanks to constant exploration and research on consumer preferences, this sector seems to be growing with each passing day. However, there may be a need to check and observe as the ready-to-drink market category attempts to gain cross-border outreach. Participants are watching out for taxation rules and considering the different alcoholic contents and bases across countries.
5. Long term Changes and Trends As Triggered by Covid 19
Even as many changes happen in the alcoholic beverage sector, covid-19 is the significant influence or determinant of today’s current changes. Consumers’ attitudes have been changed during this period. Most people take a different approach to their alcoholic drink consumption, with many embracing healthier options and avoiding overindulging. However, there have been trends where more alcohol is consumed due to more people staying at home. This can be seen by tracking the no to low alcohol drinking regions where a significant rise in alcohol consumption has happened during this period.
More people choose to use no or low alcoholic beverage drinks, with some even willing to pay a premium for such beverages. This has been informed by the desire to make healthier choices that improve their chances of beating potential covid-19 infection. Data show that significant markets across the US, Germany, Spain, and other major countries where alcoholic drinks are preferred will undoubtedly see an increased preference for non and low-alcoholic drinks. Such choices are informed by conscious decisions from consumers who want to adopt healthier lifestyles that support a better immune system.
To strengthen their immune systems, more people are staying away from alcohol, as advised by experts. The US and UK are expected to see a spike in the no to low alcohol beverage markets. A manufacturer in this region should be willing to adjust their goals and cater to this emerging market, even if it is temporarily, since this is likely to continue for the whole of 2021. Companies that are willing to adjust and accommodate any changes and alterations from the pandemic will survive even after things get back to normal.
A lot is happening in the world today because of the covid19 pandemic. These changes and shifts have affected the way businesses are handled in the present time. Such businesses’ success depends on several things, but the most important one is flexibility. Today’s business environment is pretty uncertain, and rigid business persons cannot thrive in such an environment. Fortunately, this is an easy thing to solve. The alcoholic beverage industry is naturally very competitive. However, with many changes happening in the business world today, businesses faced many challenges before adjusting to the current situation. Fortunately, most of the mishaps are easily solved by paying attention to new emerging trends as they may influence businesses’ direction.