Who Is Gen Z and What Are They Drinking?

Posted on March 22, 2022 by Joel Whitaker

Demographically, Gen Z is legal drinking age consumers 21 to 25 years old.  “Gen Z is the first generation of true digital natives,” says Liz Paquette, Drizly’s head of consumer insights. “They are used to shopping online for anything and everything, so as they become 21 and over, they seek the ease and convenience of online shopping and delivery even more so than previous generations.”

They’re the most racially and ethnically diverse generation in U.S. history, and they’re on track to be the best-educated generation, too. These digitally savvy buyers prefer to stand out rather than fit in—both of which influence alcohol purchasing decisions.

Compared to other generations, here’s Gen Z’s purchases on Drizly:

  • Liquor: 48 percent (vs. 45 percent)
  • Wine: 28 percent (vs. 38 percent)
  • Beer: 21 percent (vs. 15 percent)
  • Extras: 3 percent (vs. 2 percent)

Light and fruity flavors are prefered when Gen Z makes alcohol purchasing decisions, as are lower sugar and calorie count beer alternatives. In fact, Gen Z is the key driver in ready-to-drink cocktail purchases on Drizly, which, at eight percent share of liquor sales, is rising to compete with hard seltzer.

When it comes to liquor, Gen Z over-indexes on soju (26 percent share), tequila (eight percent share), and rum (seven percent share).

Wine has the biggest gap on Drizly between Gen Z purchasers and people in other generations. Gen Z only accounted for a three percent share of total wine sales on Drizly in the past year. There are some wine subcategories Gen Z over-indexes on, however, including wine spritzers (seven percent), Champagne and sparkling wines (five percent), and rosé (five percent).

“For this youngest generation, we’ve seen a lower spend overall and more of an appetite for ‘value’ wines,” says Rene Brown, a wine educator at Napa’s Sequoia Grove Winery. “Since these consumers are still in the first stages of their wine journey, they’re not quite ready to commit to more expensive wines and multiple bottles (as opposed to more experienced, older consumers). We’re also noticing the Gen Z contingent preferring fresher wines like rosé and sauvignon blanc.”

The top brands purchased by Gen Z on Drizly tracks with the generation’s preferred categories and subcategories. White Claw, Don Julio, Truly, Espolòn and Hennessy all ran higher among Gen Z purchasers.

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Bev/Al Sales Up Double-Digits in Key States: CGA

Posted on March 22, 2022 by Joel Whitaker

Bev/al sales in all key states tracked by CGA are now double-digit positive versus 2020, with the latest week being the first to be affected by COVID-19 two years ago. Some cities jumped the gun on St. Patrick’s Day , , choosing not to wait for the day itself but rather to celebrate on the preceding.  Chicago experiencing a 34% uplift versus the average Saturday in 2022, driven by higher traffic (64%).

Over recent weeks, velocity in the US has been steady, and trends versus 2021 remain strong for Total US (+27%). BeverageTrak data reveals trends are slightly lower in Florida (+13%) and Texas (+8%) versus last year due to far fewer COVID-19 restrictions in these states compared to New York, Illinois and California.

What about key states?  According to CGA:

Florida

  • Sales velocity is now +31% vs March 14, 2020
  • Sales velocity is now +13% year-over-year (comparing the same week one year prior)
  • Sales velocity is now +2% vs March 5, 2022

Illinois

  • Sales velocity is now +40% vs March 14, 2020
  • Sales velocity is now +42% year-over-year (comparing the same week one year prior)
  • Sales velocity is now +4% vs March 5, 2022

California

  • Sales velocity is now +72% vs March 14, 2020
  • Sales velocity is now +56% year-over-year (comparing the same week one year prior)
  • Sales velocity is now +3% vs March 5, 2022

New York

  • A later Winter storm in New York, which cut power and caused disruption, resulted in trends of -29% in the state for the most recent Saturday versus the previous Saturday
  • Sales velocity is now +59% vs March 14, 2020
  • Sales velocity is now +50% year-over-year (comparing the same week one year prior)
  • Sales velocity is now -1% vs March 5, 2022

Texas

  • Sales velocity is now +38% vs March 14, 2020
  • Sales velocity is now +8% year-over-year (comparing the same week one year prior)
  • Sales velocity is now -3% vs March 5, 2022

Matthew Crompton, CGA Client Solutions Director, Americas, said: “The market is now +27% versus the same time in 2021, so it’s fair to say that the channel is continuing to build back at speed.”

Crompton said CGA was preparing to launch “our biggest ever enhancement to OPM, our flagship measurement service. These new enhancements will be an industry-first in terms of the level of detail we can provide – making 20 DMAs, 20 states and sub-channels available for share and trend tracking.”

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On St. Patrick’s Day, Beer Sales Doubled in Year, Up 9% from 2019

Posted on March 22, 2022 by Joel Whitaker

Across the nation, on-premise returns for St. Patrick’s Day were up significantly, BeerBoard reports. Draft volume was up 118.5% nationally when compared to 2021. In looking back at 2019, the last fully-open holiday prior to Covid shutdowns, 2022 saw a solid 9% growth in volume.

A Bump for Light Lagers and Lagers
Light Lagers and Lagers saw a healthy bump on the day when compared to 2021. Light Lagers were up 116%, while Lagers advanced 74%. After seeing a slight dip last year, IPAs rocketed back and were up 169%. Bud Light, Michelob Ultra and Coors Light were the Top 3 brands poured nationally on the day this year.

Stouts (aka Guinness) Outperform Average
After a shocking decline in 2021 (albeit a nominal one), Stouts were back and in a big way, BeerBoard said. Typically checking in at #11 on the list of Top Styles, Stouts climbed all the way to No. 6 for the Holiday and saw 137% volume growth nationally. Guinness, the top-poured stout, and normally sitting just outside the Top 10 brands, moved up to the No. 8 brand for the day.

St. Patrick’s Day Hubs Bounce back
Two major American cities, both noted for their St. Patrick’s Day celebrations, realized a major lift. New York City and Chicago, each under heavy restrictions the past couple years, welcomed back revelers in fine fashion. In NYC, volume was +507% over 2021 and saw Bud Light as the No. 1 poured beer (Guinness checked in at #3). Chicago, which goes as far as to dye the Chicago River green for the day, was up 628% over 2021. Coors Light was the top-poured draft in the Windy City, while Guinness clocked in at #5.

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Lobos 1707 Tequila Launches in Canada

Posted on March 22, 2022 by Joel Whitaker

Lobos 1707, the ultra-premium tequila and mezcal brand, announces its launch into the Canadian market first introducing consumers to its Lobos 1707 Reposado Tequila and Lobos 1707 Joven Tequila. The tequila arrives in Ontario this spring on the heels of Lobos 1707’s successful U.S. launch and after being named the month’s fastest-growing liquor brand in Drizly’s February 2022 sales report.

Lobos 1707 commemorated its expansion with an official launch event in Toronto where Founder and Chief Creative Officer Diego Osorio and investor LeBron James were joined by special guest Drake, celebrating the brand’s launch in Drake’s home country of Canada.

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Kendall-Jackson, Kentucky Derby Unveil Two Commemorative Wines

Posted on March 22, 2022 by Joel Whitaker

Kendall-Jackson released two co-branded, limited-edition wines to honor a partnership in which Kendall-Jackson is the Preferred Wine of the Kentucky Derby. Blending the Jackson family’s legacy for award-winning winemaking and Thoroughbred horse racing, the commemorative Chardonnay and Cabernet Sauvignon are the first of several releases planned to launch annually, leading up to the 150th running of the Kentucky Derby in 2024.

“Our family’s legacy in winemaking runs deep, and while many wine enthusiasts across the nation recognize Kendall-Jackson as the makers of America’s favorite Chardonnay, our family’s endeavors in the horse racing world are lesser known,” said Barbara Banke, chairman and proprietor, Jackson Family Wines. “Jess’ [Jackson] passion for horse racing was ignited as a young boy when he watched Seabiscuit win the 1938 Bay Meadows Handicap from atop his uncle’s shoulders. Many years later, our success in the wine business afforded us the opportunity to indulge in his passion, which is now mine, for Thoroughbred racing.”

The Jackson family opened Stonestreet Farm, a Thoroughbred horse breeding and training operation, in 2005 on premium farmland in the famous Bluegrass region of Lexington, Ky. Since then, Stonestreet has become the leading North American commercial Thoroughbred breeder of yearlings 10 times. This year’s limited-edition Kentucky Derby x Kendall-Jackson wines will prominently feature the Kentucky Derby icon along with an artist’s rendering of Stonestreet’s homebred champion Good Magic, who ran in the 2018 Kentucky Derby and finished second behind Justify, who went on to win the Triple Crown.

“It feels like a natural connection to bring our two great passions together on the global stage at the Kentucky Derby. Although Good Magic is now retired, we wanted to highlight his remarkable accomplishments,” Banke said.

Available for purchase online and in select retailers nationwide, the commemorative Chardonnay and Cabernet Sauvignon wines highlight two of California’s coastal winegrowing regions: Kentucky Derby x Kendall-Jackson 2020 Mendocino County Chardonnay ($17 SRP) and Kentucky Derby x Kendall-Jackson 2019 Napa Valley Cabernet Sauvignon ($28 SRP).

Kendall-Jackson wines will be poured at all Churchill Downs Racetrack events and highlighted in a variety of events as one of the Preferred Wines of the Kentucky Derby through the 150th Run for the Roses in 2024. Each year, consumers can expect to see new commemorative bottles as part of this multi-year partnership with Kentucky Derby.

In addition to this year’s special release wines, Kendall-Jackson Wine Estate & Gardens in Sonoma County will host a Kentucky Derby watch party on Saturday, May 7, the official West Coast Kentucky Derby celebration. The event will showcase everything to love about the Derby, including fashion contests, an on-site milliner, and Derby-inspired Southern cuisine paired with award-winning Kendall-Jackson wines. Tickets to the watch party can be purchased at www.kj.com/events/kentucky-derby-party.

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Mike’s Hard Intros ‘Slushies’

Posted on March 22, 2022 by Joel Whitaker

Mike’s Hard Lemonade is bringing back the 90’s with new Mike’s Hard Freeze, a collection of four refreshing, throwback flavors that will remind you of your favorite slushy flavors. In fact, more than 70% of consumers1 crave nostalgic flavors, reminding them of simpler times and carefree days.

“New Mike’s Hard Freeze delivers all the flavor without the brain freeze,” said John Shea, chief marketing officer, Mike’s Hard Lemonade Co. “Mike’s Hard Freeze was inspired by 90’s nostalgia with throwback flavors, colors, and packaging.  As a first for Mike’s Hard Lemonade, we crafted four refreshing, delicious and sessionable flavors to create a taste experience that brings back that 90’s nostalgia.”

All four flavors come in a 12-can variety pack. Both Blue Freeze and Red Freeze will also be available in 23.5oz. single-serve cans. Mike’s Hard Freeze is 5% ABV and comes in four refreshing flavors.

In addition to Blue Freeze, which tastes just a  melted blue raspberry slushy flavor, and Red Freeze, a liquified classic red cherry berry slushy, Mike’s also offers White Freeze, inspired by an indulgent, chilled creamcicle flavor, and Pink Freeze, which tastes like a frosty pink lemonade slushy.

The brand is launching a fun, integrated campaign that will transport consumers back to the 90’s. They’re bringing this rad decade to life through a mix of social, digital, and influencer content and live events from now through the summer. Mike’s Hard Freeze will be pulling consumers into the 90’s through the Freeze Factory, a magical place where the colors, flavors, and influences of the 90’s are infused into every can of Mike’s Hard Freeze: Boy Band :15.

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