BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire

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BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
BACARDI
2021
COCKTAIL
TRENDS
REPORT
Presented by Bacardi Limited in
association with The Future Laboratory
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
INTRODUCTION

MACRO TREND 1: HOME PREMISE
: Domestic Drinks
: New Drinking Cultures

MACRO TREND 2: PLEASURE REVOLUTION
: Flavor Sensations
: Nostalgic Classics
: Traditional Cocktails with a Twist

MACRO TREND 3: BAR REINVENTION
: The Drinktelligent Generation
: Democratizing the Bar

MACRO TREND 4: POST-PURPOSE BRANDS
: Whole Systems Thinking
: Hyperlocal Drinks

MACRO TREND 5: MINDFUL CONSUMPTION
: Resilience Drinking
: Free-from
: Functional Elixirs
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
Global premium spirits company Bacardi Limited looks
ahead at the key trends impacting cocktail consumption and
the spirits business in 2021, in association with The Future
Laboratory. This report draws on insights from Bacardi-led
consumer and brand ambassador surveys, interviews with the
bar and restaurant trade, Nielsen CGA data, and The Future
Laboratory’s independent research.
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
MACRO TREND 1:

HOME PREMISE
DOMESTIC DRINKS                                      restaurants. With many bars now
The global pandemic has had a                        offering online cocktail classes
profound impact on the drinks                        and carefully concocted drinks
industry. It has undoubtedly                         delivered directly to our doors.
expedited the at-home and
e-commerce convenience culture                       New launches from the off-trade –
we had already begun to enjoy,                       from ready-to-drink (RTD), cans,
bringing more experiences                            and pouches to drink delivery apps
straight into our homes than we                      – have been hugely successful.
could ever have imagined.                            Cocktails in cans have proved
                                                     particularly popular. According
The pandemic has made home                           to research by Bacardi, close to
the focal point of our social                        30% of consumers claim they
lives and changed the eating                         plan to purchase RTD cocktails
and drinking landscape forever.                      or canned spirit and mixers,
Initiatives such as virtual happy                    with portability and convenience
hours and live-streamed gigs                         cited as key reasons for stocking
have allowed people to recreate                      up on a pre-made drink.1
their favorite elements of bars and

          25%                            131%                              20%
One in four U.S. respondents       RTD cocktails show a rise       One in five UK consumers
 say they are now making             of 131% in the U.S.           are hosting virtual cocktail
     cocktails at home.                   off-trade.               parties from their homes.
   (Bacardi Holiday Survey 2020)          (Nielsen CGA)             (Bacardi Holiday Survey 2020)
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
“Cocktails in a can are a hot trend, and the lockdowns
                                                                                  appear to have increased their popularity as a safe and
                                                                                  portable drink option. In addition, cocktails-to-go have
                                                                                 really taken off, with bars and consumers embracing the
                                                                               trend at a fast rate as a viable choice for social occasions
                                                                                and this is a behavior we expect to see continue in 2021.”
                                                                                                   Brenda Fiala - Global Vice President, Strategic Insights and Analytics for Bacardi

TOP 5 RTDS IN NORTH AMERICA ARE:

             53%                                   24%                    32%                  34%                        33%
 VODKA SODA & FLAVORS                             MARGARITA            MOSCOW MULE        LOW-ABV COCKTAILS             GIN & TONIC
         (up 10% from LY)                       (up 38% from LY)       (up 19% from LY)      (up 5% from LY)           (up 1% from LY)

TOP 5 RTDS IN WESTERN EUROPE ARE:
       56%                                  35%                       31%                    27%                          23%
   G&T & TWISTS                             NEGRONI            CLASSIC COCKTAILS          OTHER SPRITZES                  LOW-ABV
  (up 10% from LY)                      (up 9% from LY)            (up 21% from LY)       (down 5% from LY)            (up 3% from LY)
(Bacardi Global Brand Ambassador Survey 2020)
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
Popular cocktails for takeaway          to the level of personalized
include familiar and comforting         convenience they can indulge in
classics such as the negroni,           from the comfort of their sofa.3        WESTERN
bloody mary, old fashioned,
and strawberry daiquiri. ‘People        Pre-pandemic, e-commerce
                                                                                EUROPE
are looking for security when           options failed to catch the
they’re ordering food and drinks        attention of spirits shoppers,
for delivery. You order what you        but this channel is now a
know you like,’ Robyn Wilkie,           widely adopted solution for
bar manager of Liquorette               consumer purchase behavior.
in London, told Imbibe.2
                                        While 2021 will no doubt
Research published in the               herald the revival of on-
European Journal of Social              premise consumption –                    NORTH
Psychology shows it takes               as consumers flock back to support      AMERICA
people between 18 and 254               local businesses and with the
days to form a new habit – and,         vast majority of global bartenders
on average, 66 days for a new           feeling optimistic about the future –
behavior to become automatic.           e-commerce has cemented
This means that many of these           its position as an important
shifts are here to stay, with           channel for spirits.
consumers becoming accustomed

                             ONLINE SPIRITS SALES GREW
                             exponentially early in the pandemic, with
                             partners such as Drizly experiencing 350%
                             growth according to the IWSR, which also
                             forecasts that the e-commerce alcohol
                             channel will be worth $45.5B across the top
                             10 markets by 2024.4
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
NEW DRINKING CULTURES                      in the comfort of their own homes.
                                                                                                   40%
                                                                                    of consumers in the
                                                                                                                      GLOBAL
For consumers, the pandemic has            Consumers have also taken up             U.S. are interested in
ushered in entirely new drinking           new hobbies and found outlets
cultures, ranging from Japan’s
on-nomi (online drinking) to
                                           for creativity at home, with many
                                           adopting a more adventurous
                                                                                    MAKE-AT-HOME
walktails (cocktails to drink while        approach to cooking.This has also        cocktail kits, followed by
walking) and making cupboard               transferred across to our drinking       bottled PRE-MADE and
cocktails from reserves at home.           habits, with brands stepping up to       GRAB-AND-GO
                                           respond to this desire for originality
Cocktail classes and kits have seen        and knowledge. Bacardi created a         options (both 37%).
huge success via highly visual             virtual cocktail-making series for its   (Nielsen CGA On-Premise Survey)

platforms with vast audience reach,        social audience, and its brand homes
such as Instagram. The appeal of           like Casa BACARDÍ in Puerto Rico
this DIY approach is echoed in data        and Casa MARTINI in Italy continue
from Nielsen CGA, which shows that         to offer online mixology classes
40% of consumers are interested            that guests can sign up for to learn
in make-at-home cocktail kits,             to create delicious rum cocktails.
followed by bottled pre-made and
grab-and-go options (both 37%).            Cocktail gift packs are set to be
                                           big in 2021. Knowing that people
With more consumers globally now           want easy shopping solutions for
making cocktails at home, Bacardi          unique gifts this season, and that
created a hyper-convenient option          they are shopping online more
in the UK and Germany, and coming          than ever, companies like Bacardi
soon to other markets. Only requiring      have collaborated with e-commerce
the addition of ice and water, Twistails   partners such as Cocktail Courier,
are innovative pre-mixed cocktail          Sourced Craft Cocktails and
kits that allow consumers to make          ReserveBar to create Bacardi
bar-perfect drinks simply and quickly      portfolio-specific landing pages.
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
MACRO TREND 2:

PLEASURE REVOLUTION                                                                                                                        WESTERN
                                                                                                                                           EUROPE
FLAVOR SENSATIONS                                           smoked flavor profiles. According to
When Covid-19 restrictions ease and                         beverage company Flavorman, drinks
social life resumes, consumers will seek                    that burn, cool, tingle and comfort
pleasure, nostalgia, and escapism,                          will be in high demand in 2021.6
shifting their focus from enhancement
to enjoyment. During what some are                          Bitter taste profiles will continue to be
predicting to be ‘the second roaring                        popular due to our palates becoming
20s’, we will return to bars, seeking                       accustomed to healthier foods such                                               NORTH
quality over quantity and perhaps                           as kale, which is at the more bitter end                                        AMERICA
to celebrate after a tough year. It’s                       of the flavor scale. In the U.S. amaro
a sentiment echoed by the Bacardi                           is riding high as a bitter ingredient
Holiday Survey 2020, with many                              for cocktails, in line with consumers
people planning to treat themselves,                        embracing Italian aperitivo culture.
their friends, and family in 2021.5
                                                            This trend is confirmed by
A desire for extremes will dictate                          respondents to the Bacardi Global
our drink choices in 2021, with                             Brand Ambassador Survey for
sensorial experiences that range
from the striking heat of chili through
                                                            the North American market; bitter
                                                            liqueurs were strongly trending in
                                                                                                                         DESIRE FOR
to super-sweet, sour, bitter and                            the top five spirits for bartenders.
                                                                                                                      EXTREMES CHILLI
                                                                                                                     through to SUPERSWEET,
                                                                                                                          SOUR, BITTER and
         33%                                        13%                                     26%                                 SMOKED
                                                                                                                              flavor profiles.
                                                                                                                                      (Flavorman)

One in three UK consumers           Premium-and-above spirits forecasted to         More than one in four U.S.
  plan to treat themselves,       increase global volume market share to 13%          consumers plan to treat
their friends and their family      by 2024 as consumers continue to favor           themselves, their friends
         more in 2021.             quality over quantity, including cocktails and     and their family more in
  (Bacardi Holiday Survey 2020)              high-end sipping spirits.7                        2021.
                                                      (IWSR)                         (Bacardi Holiday Survey 2020)
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
GLOBALLY POPULAR COCKTAILS                      NOSTALGIC CLASSICS
(Bacardi Global Brand Ambassador Survey 2020)
                                                In terms of spirits, various trends     Gin, tequila, and rum represent the
                                                are emerging among classic              best premiumization opportunities       GLOBAL
  LOW-ABV COCKTAILS - 47%                       categories such as gin, tequila and     in many markets, with their role
                                                rum, and interesting differentials      and importance growing during
                                                are arising across markets.             uncertain times. After a tough
                                                                                        year, classic cocktails can provide
  OTHER SPRITZES - 45%
                                                As staples of classic cocktails         a sense of comfort and nostalgia
                                                that consumers are replicating at       – and none more so than spirit-
                                                home, tequila and gin are enjoying      forward cocktails. Featuring a base
  NEGRONI - 41%                                 record growth. The popularity of        spirit, a modifier such as vermouth,
                                                the margarita is surging in North       port, or sherry, and often other
                                                America, and global interest in the     ingredients such as liqueurs, syrups,
                                                negroni and gin and tonic remains       or bitters, these drinks were first
  CLASSIC COCKTAILS WITH A TWIST - 39%          high. While interest in rum is driven   developed in the 1880s and continue
                                                by consumers in Latin America and       to offer simple, bold flavors.
                                                the Caribbean, the popularity of the
  GIN & TONIC (AND TWISTS) - 31%
                                                spirit soared globally in the summer    At the other end of the flavor scale,
                                                months when, with the relative          2021 will see a return to light-
                                                safety of al fresco hospitality, the    hearted drinks and flavor-filled
                                                piña colada and mojito topped           indulgences, inviting us to lose
  NON-ALCOHOLIC COCKTAILS - 31%                 the list of desired cocktails.          our preconceptions about, and a
                                                                                        serious attitude towards, cocktails.
                                                The monotony of lockdown life is        We will embrace cocktails that
                                                driving people to experiment with       remind us of easier times, such as
  WHISKY HIGHBALL - 29%
                                                classics, seeking out fun twists on     summer holidays and nights out.
                                                staples they know they can rely on.
                                                According to bartenders, almost two     A desire for comfort and indulgence
  ESPRESSO MARTINI - 26%                        in five consumers are interested        will see consumers seek nostalgic
                                                in classic cocktails with a twist.      drinks Flavorman predicts that

  OLD FASHIONED - 23%

                                                In the UK, more than one in four (28%) consumers would like to
  VERMOUTH COCKTAILS - 23%                      incorporate maple syrup or honey into their cocktails, according to
                                                the Bacardi Holiday Survey 2020.
BACARDI 2021 COCKTAIL TRENDS REPORT - Presented by Bacardi Limited in association with The Future Laboratory - Business Wire
POPULAR INGREDIENTS
(Bacardi Global Brands Ambassador Survey 2020)
                                                   this will result in innovative
                                                   takes on comforting classics,
                                                                                                      and tonic and spritzes among the
                                                                                                      majority of the Western Europe
                                                   such as smoky vanilla cold brew
                                                   and bubble gum seltzer.8
                                                                                                      market’s top five RTD and ready-
                                                                                                      to-serve (RTS) options. Ice-laden
                                                                                                                                                                      GLOBAL
43% FERMENTS
(E.g. Kombucha/Kefir)
                                                   Julian de Féral, an award-
                                                                                                      drinks are set to satisfy our desire
                                                                                                      for the taste of summer, whether
                                                   winning bartender who is now an                    we’re traveling abroad or not.
                                                   international drinks consultant,                   Evolving from the previous year’s

43% ZERO-WASTE INGREDIENTS                         echoed this sentiment in an article
                                                   for Imbibe, forecasting a return to
                                                                                                      frosé and champagne slushies
                                                                                                      and frozen fruit beers, hard
                                                   tiki and disco drinks that he believes             slushies in 2021 will offer fresh

38% COFFEE                                         are the ‘great survivors’ of the
                                                   modern cocktail landscape. ‘These
                                                   were styles born of a need for
                                                                                                      flavor profiles and creative takes.

                                                                                                      Interestingly, caffeine-laden drinks
                                                   escapism during times of economic                  are also growing in popularity. In
33% FLAVORED TONICS                                depression, so in fact, history would
                                                   indicate we might indeed see a
                                                                                                      North America, 46% of Bacardi
                                                                                                      brand ambassadors noticed
                                                   continued rebirth of these drinks,                 increased interest from bartenders
31% FLAVORED SODA                                  albeit with some fine-tuning.’9                    for coffee and tea ingredients.

                                                   Bubbles reflect this escapist mood,
30% FRESH FRUIT/BERRIES                            with sparkling drinks such as gin

30% HERBS/HERBAL
27% AROMATIC/FLAVORED BITTERS                          38%                       60%                             51%                                 36%
26% COCONUT WATER                                38% of U.S. consumers
                                                  state that they would
                                                                                   The best
                                                                               premiumization
                                                                                                             Gin still dominates
                                                                                                           global markets (51%),
                                                                                                                                                In Western Europe,
                                                                                                                                                 36% of bartenders
                                                  be most interested in      opportunities in North          with bartenders in                  see gin as a huge

23% FERMENTS
(E.g. Beer/Cider/Ale)
                                                  reinventing, revisiting
                                                     or creating more
                                                      margaritas, up
                                                                             America lie in tequila
                                                                            (60%), dark rum (32%)
                                                                              and mezcal (29%)
                                                                                                           the UK showing 58%
                                                                                                          interest. Gin and tonics
                                                                                                          still riding high as drink
                                                                                                                                                   opportunity for
                                                                                                                                                  premiumization.

                                                    from 11% from the                                              of choice.
                                                       previous year.

22% TEA                                                                                                                       (Bacardi Global Brand Ambassador Survey 2020)
DARK SPIRITS CONTINUE
TEQUILA TRENDING HIGH IN NORTH AMERICA                                                      TO RISE GLOBALLY
•     Tequila interest in North America is the strongest in the world and still growing
      (up 28%) driven by a resurgence in margaritas (+27%) and other tequila
                                                                                                  45%
      cocktails (21%)                                                                                  VODKA SODA & FLAVORS
                                                                                           Rum is very steady compared to last year (26%) –
•     Tequila continues to premiumize globally, up another 15% from last                     7th place globally, strongest in Latin America
      year. Margaritas are emerging as a strong cocktail and RTD trend

GIN IS BOOMING IN EUROPE                                                                                        12%
                                                                                                               BOURBON
•     Globally, gin is the spirit of most interest to bartenders, up 10% from LY            Bourbon interest surged 12% in North America

•     Western Europe bartenders are among the biggest Gin fans
      globally (sales growth in UK, France, Italy and Germany)
                                                                                                               24%
                                                                                                             SINGLE MALTS
                                                                                          Single Malts is at 24% global interest (+7%), with the
                                                                                               highest growth in Latin America (33%) and

                                  51% GIN
                                                                                                           North America (22%)
      TOP 5 SPIRITS OF INTEREST

                                  46% MEZCAL                                                                    12%
                                                                                                           PREMIUM WHISKY
                                  45% TEQUILA                                                  Blended premium whisky interest jumped
                                                                                                       12% in Western Europe

                                  38% VERMOUTH
                                  38% BITTER LIQUEURS/AMARO LIQUEURS                                              7TH
(Bacardi Global Brand Ambassador Survey 2020)                                                              WHISKY HIGHBALL
                                                                                               7th globally trending cocktail with greater
                                                                                                     excitement in Eastern Europe
GLOBAL

                              TRADITIONAL COCKTAILS              world, as restrictions drive
                              WITH A TWIST                       consumers to seek new ways
                              New and creative ingredients       of experiencing international
                              will add a fresh perspective       tastes and cultures. Drinks
                              to classic drinks when we’re       will offer escapism through
                              back at the bar. As reported       flavor and will offer moments
                              in the McCormick Flavor            of everyday luxury.
                              Forecast, heat will be key, with
                              cocktails such as the chilitini,   Our diets are driving an
                              French chili 75, chili whiskey     appreciation of complex
                              sour, chili libre, and chili       flavors that we cannot

HEAT will be KEY,             bloody mary. This also             replicate at home, and
                              reflects a wider shift toward      cocktails will offer new
                              fresh ingredients, including       profiles to meet these
with cocktails such as the    ginger.10                          desires. The 2021 Culinary
                                                                 and Cocktail Trend Forecast,
CHILITINI, CHILI WHISKEY                                         produced by Kimpton Hotels
                              Undoubtedly, our palettes will     and Restaurants, states
SOUR, CHILI LIBRE and         expand further as premium          that with fewer drinking
CHILI BLOODY MARY. This       spirits markets develop in         occasions available, we’ll
                              Africa, the Middle East,           opt for more unusual and
also reflects a wider shift   and Asia. Cocktails will           elaborate cocktails.11
                              become a way to travel the
toward FRESH ingredients,
including GINGER.9
20% OF                                                            GLOBAL
                                                                                             CUSTOMERS NOW
MACRO TREND 3:                                                                               KEEN TO SAMPLE

BAR REINVENTION
                                                                                             DRINKS THAT THEY
                                                                                             WOULD NEVER
                                                                                             HAVE TRIED PRE-
THE DRINKTELLIGENT GENERATION                 see venues and bartenders playing              LOCKDOWN.
                                                                                             (Bacardi Holiday Survey 2020)
Post-lockdown, consumers armed with           with menus, offering changing weekly
newfound knowledge and appreciation           options according to stock levels, and
of spirits and cocktails will fuel a          special drink deals as well as virtual
reinvention of the bar. Venues will           classes, tastings and happy hours.
step up to offer more personalized
and unique concepts for this spirits-         According to the Bacardi Holiday Survey
savvy customer, who will seek out             2020, this new consumer mindset is
deeper connections with bartenders            already visible, with 20% of customers
in order to learn even more.                  now keen to sample drinks that they
                                              would never have tried pre-lockdown.
Respondents to the Nielsen CGA                This attitude will see consumers
On-Premise Survey concur, predicting          keen to experience new flavors as
that many of the creative solutions           they reacquaint themselves with their
developed in 2020 – cocktails-to-go,          favorite hospitality venues, many of
delivery of cocktail and meal kits, and       which will have dramatically changed.
escalation of e-commerce – will endure
when restrictions ease. We could              In response, we’ll see cocktails-

“Last year saw many people practice the art of mixology at home, using                                      THE SPIRITS BARTENDERS ARE
what they had on hand to master some classic cocktails. We think in 2021                                  SEEING CONSUMERS ORDER FOR
that knowledge will lead them to experiment more, upgrading their home                                  THEIR COCKTAILS-TO-GO GLOBALLY
                                                                                                                       ARE GIN (64%), RUM
bars with premium spirits, seeking out new drinks and flavors, and once
it is safe to do so, heading to their favorite bars with new appreciation
and thirst for cocktails created by their local bartender.”                                                   (55%), TEQUILA (52%)
                                               Jacob Briars - Head of Advocacy for Bacardi                       AND VODKA (43%)
                                                                                                                             (Bacardi Global Brand Ambassador Survey 2020)
“I think home bartending is a good
                                                                                                                                                         GLOBAL
thing for the bar industry. It could be a                      to-go elevated to premium                 Bar, and Sydney bars Maybe
catalyst to bolster consumer and home                          products, while personalized
                                                               experiences will emerge and
                                                                                                         Sammy and The Barbershop.

bartender knowledge, and appreciation                          become mainstream. Bars will              This will help improve flavor
                                                               make, store, and refine your              profiles and free up precious
of spirits, cocktails and bars in general.”                    preferred cocktail batch to ensure        time for bartenders. Concepts
              Richard Boccato - Owner of renowned              it’s always ready and waiting.            like pre-batched cocktail brand,
                                                                                                         TAILS, which has pioneered a
                   New York City cocktail bar Dutch Kills.12   Sommeliers will evolve beyond the         hassle-free approach to serving
                                                               confines of the wine category into        pre-made premium cocktails,
                                                               the premium spirits’ sphere. They         will likely rise in popularity as
                                                               will have a place in the developing       bartenders seek ways to serve
                                                               cocktail markets in Africa and the        great-tasting cocktails easily,
                                                               Middle East, and will introduce           quickly, consistently, and at scale.
                                                               consumers in other parts of the
                                                               world to new choices: for example,
                                                               African-distilled gin has already
                                                               been embraced by London’s The
                                                               Savoy, The Connaught and Dukes

                                                                                   48%                                  64%
                                                                            In the UK, 48% interested    The Eastern Europe market focused
                                                                              in ordering drinks from    on gin for to-go options, while in Latin
                                                                            pubs, bars and restaurants    America the focus was on rum and
                                                                                   for delivery.13        tequila for cocktails-to-go choices.
                                                                                     (Statista)          (Bacardi Global Brand Ambassador Survey 2020)
GLOBAL
DEMOCRATIZING THE BAR                to address issues, including the
As an industry, hospitality has      gendered stereotypes and tropes
been slow to embrace digital         that are inherent to cocktail
transformation, but the pandemic     culture. Inspired by similar
has resulted in a multitude of new   movements in genderless beauty,
digital platforms. Apps now enable   alcohol bottles for post-category
easy ordering and payment            drinks will be redesigned.
through a range of methods,          Masculine and feminine
and bars are being demystified       stereotypes will be removed in
through better online menus.         favor of genderless designs, such
                                     as medicine-style bottle shapes.
While digital platforms can’t
replace human contact,               Some clues to this direction can
the Bacardi Global Brand             already be seen in the huge
Ambassador Survey shows that         popularity of drinks such as
bartenders were exploring digital    hard seltzers among men and
solutions in late 2020 and will      women in the North American
continue to do so into 2021. As      market, appealing to the health-
we move through this decade,         conscious and those seeking
these solutions, combined with       convenience. 53% of U.S.
new emerging technologies, will      bartenders agree there is interest
facilitate a new level of comfort    in hard seltzers compared with
for customers and make bars          25% globally.14 The trend is yet
more accessible to everyone.

There will be a more open and
                                     to take off in Western Europe but
                                     did experience a small increase
                                     of 6% last year, with room for
                                                                                 40 million
positive bar culture that seeks      growth in 2021 and beyond.15         Women in the UK now drink 40
                                                                          million more glasses of whisky
                                                                          a year than they did in 2010, a
                                                                            rise of 15%, compared with
                                                                           a decline of 6% among men,
                                                                          according to market research
                                                                                           firm Kantar.16
GLOBAL
MACRO TREND 4:

POST-PURPOSE BRANDS
WHOLE SYSTEMS THINKING                    production on the environment,
Pushing back against purpose-             brands are responding.
washing and jumping on the                Bespoken Spirits has developed
bandwagon, spirits brands will            technology to precisely tailor
embrace imperfection and focus            spirits for aroma, color, and taste
on improving sustainability               in just days without the need
and transparency in 2021                  for maturation or distilling. This
and beyond. As consumers                  removes the need for traditional
become increasingly aware                 processes, such as barrel
of the impact of alcohol                  aging, and reduces waste.

“We know that people are increasingly thinking about the green

                                                                                                 34%
credentials of the drinks they choose to enjoy. Doing the right
thing by the planet and our customers is incredibly important to
us. So from reducing energy and water use during production, to
working with online retailers to reduce packaging, to launching the                  of UK consumers plan to
world’s first 100% biodegradable spirits bottle in 2023, we’re doing
everything we can to do just that.”                                                  be more environmentally
          Jean-Marc Lambert - Senior Vice President, Global Operations for Bacardi           friendly in 2021.
                                                                                                     (Bacardi Holiday Survey 2020)
The very real threat of climate   minds as they emerge from
change has seen some companies    lockdowns, which necessitated
pivot in response. Following      a reliance on e-commerce.                                   GLOBAL
wildfires in their respective
regions, the Hoopes Vineyard      Spirit brands are responding, and
in California and Archie Rose     there are notable developments
Distillery in Australia turned    from premium names. Bacardi
their smoke-tainted grapes        is paving the way, recently
into brandy and vermouth as a     announcing the development
way to rescue their produce.      of a biodegradable bottle – the
                                  world’s most sustainable spirits
Moving into 2021, plastic         bottle – which will be rolled
packaging and the environmental   out by 2023, replacing 80M
impact of home deliveries will    plastic bottles every year.
be at the forefront of people’s

                                             Nearly          70%
                                                             of
                                     consumers in the U.S. and
                              Canada think it is important that
                                      a brand is sustainable or
                             eco-friendly, according to a study
                                by IBM and the National Retail
                                                   Federation.17
                                                   (IBM and the National Retail Federation)
GLOBAL
HYPERLOCAL DRINKS                                 Austrian company, Print a Drink, has
While the move toward local drinks has            developed a method of 3D printing
been gaining ground in recent years,              that suspends micro-flavor droplets
driven by a desire for sustainability,            in cocktails – thought to be a world-
the pandemic has exposed the                      first in the field of beverages and
reliance on global supply chains.                 liquid foods, as reported by Stir.27

Restaurants and bars heavily reliant              In 2021 we will see consumers follow
on imports faced grave challenges.                through on their desire to support local
Andrew Yap of the Old Man Singapore               brands and businesses, including bars
bar told The Drinks Business that he              and restaurants, which they developed
experienced longer waiting times for              during the Covid-19 crisis. According
some spirits and ingredients, such as             to a May 2020 survey by ZypMedia18,
kaffir lime.26 Such scenarios mean that           more than two-thirds (68%) of the 53% of
bars and restaurants are accelerating             U.S. consumers who bought from local
their use of local ingredients and                businesses during the pandemic stated
creating more agile supply chains.                they would continue to do so post-crisis.

New production methods can help to
shrink supply chains. An innovative

                         27%                                 36%
               27% of UK consumers want to          36% of U.S. consumers state
               support local shops, bars and        they will continue to buy from
               restaurants in 2021, while one         local businesses instead
                in five (20%) want to do more         of a national retailer post-
                  for their local communities.                pandemic.18
                  (Bacardi Holiday Survey 2020)               (ZypMedia)
58%            of brand
ambassadors in North America
                                                                                                            WESTERN
                                                                                                            EUROPE
noticed increased bartender
interest in ZERO-WASTE         Zero-waste bars are taking           available exclusively at some
                               a holistic approach by               of the UK’s leading bars for
INGREDIENTS, according         focusing on the careful use
                               of each ingredient, with
                                                                    Zero Waste Week 2020.
                                                                    During the event, customers
to the Bacardi Global Brand    less elaborate garnishes             were able to order all-new
Ambassador Survey 2020.        on cocktails, minimizing             ‘conscious cocktails’: the
                               packaging and recycling or           Super Sustainable, which                 NORTH
                               reusing. Bars committed              repurposes ingredients left             AMERICA
                               to the zero-waste practice           over from other cocktails,
                               include Bisou in Paris, The          was available at the Stratford
                               Perennial in San Francisco,          Hotel, while the Problem
                               London’s Sexy Fish, and              Solved – a whiskey-
                               Vesper in Amsterdam.                 based cocktail featuring
                                                                    grapefruit, orange and
                               The Bacardi range of                 lemon peels – was offered at
                               sustainable cocktails was            Edinburgh’s Panda & Sons.

                               “We look at every ingredient, whether it is a garnish, a
                               distillate or a preparation such as a cordial and ask whether
                               we are getting the most flavor and utility out it.”
                                             Rich Wood, - Head bartender Scout, author ‘The Cocktail Guy’
MACRO TREND 5:

MINDFUL CONSUMPTION                                                                                                                                                               WESTERN
                                                                                                                                                                                  EUROPE
RESILIENCE DRINKING                                                to flexitarians, who take a flexible
The no- and low-alcohol market                                     approach to vegan and vegetarian
shows no signs of slowing down in                                  diets, these people are embracing
2021. Embraced not only by non-                                    the full spectrum of 0-50 alcohol by
drinkers but also those looking                                    volume (ABV) content available to
for more options, the no-and low-                                  them, adapting their choices to suit
alcohol market is set to expand.                                   specific drinking occasions. Low-
Sober-curious consumers are                                        ABV are globally the most engaging                                                                               NORTH
emerging as a strong cohort. Similar                               cocktails to influential bartenders.                                                                            AMERICA

              55%                                       63%                                            36%
    Globally 22% consumers are                     In 2020, 63% of U.S.                    More than a third (36%) of
     drinking less, while 55% of               consumers planned to drink                  consumers across the UK,
   mindful drinkers are consuming               or offer more no- and low-              France and Germany planned on
           low-ABV drinks.
      (Bacardi Global Brand Ambassador
                                                      alcohol options.
                                                (Bacardi Global Brand Ambassador
                                                                                       enjoying more no- and low-alcohol
                                                                                          cocktails in December 2020.
                                                                                                                                “We know people are stepping up their
                Survey 2020)                              Survey 2020)                          (Bacardi Holiday Survey 2020)
                                                                                                                                cocktail game with premium spirits, putting
                                                                                                                                quality over quantity, and at the same time,
                                                                                                                                are intrigued by the explosion of new alcohol-
                              -10%                                                    24%                                       free spirits available to choose from.”
                                                                                                                                   Marine Rozenfeld - Innovation Development Lead for
                                                                                                                                          Bacardi for Western Europe, Australia & New Zealand
               Overall alcohol consumption was set                   In Germany, 24% of consumers are
              to decline by 10% in the UK in 2020, a                 planning to take part in Dry January.
               gap that could potentially be filled by             Only 6.8% say they have done so before,
                 the no- and low-alcohol market.18                 representing a clear increase in interest.
                                 (IWSR 2019)                                   (Bacardi Holiday Survey 2020)
This flexible approach has led to                 open to trying 0% options as
“What really stands out in our                             low-ABV cocktails, which provide                  their usual routines are upended,
                                                           an alternative daytime drink for                  more experimental ways of living
insights is how huge mindful drinking                      those who are keen to reduce                      emerge and new goals are set.             GLOBAL
                                                           their alcohol consumption. We’ve
has become in Western Europe this                          already seen the rise of spritz                   This market is now in exponential
year – it is the NoLo capital of the                       culture, with people embracing                    growth. Bacardi forecasts that
                                                           the low-proof, leisurely drinking                 the no- and low-alcohol spirits
world. As lockdown impacted our                            afforded by a ST-GERMAIN®                         category will grow by from $100M
                                                           Red Zinger Spritz, for instance,                  to $500M RSV in Western Europe
lives and routines, not only did                           and this looks set to continue.                   by 202419, while brands such as
people begin to seek out lower-ABV                                                                           Everleaf and Haus are catering
                                                           Globally, 0% ABV spirits have                     to a Millennial and Generation Z
cocktails, they also enjoyed cocktails                     received more interest than                       consumer who is mindful of their
                                                           any other spirits category – for                  physical and mental health.
a little earlier than usual and started                    the second year running. And
experimenting with longer drinks and                       despite headlines surrounding                     Bars are starting to take note of
                                                           increased alcohol consumption                     this huge shift, with many bars
alcohol-free options. That meant                           last year, the Bacardi Global                     beginning to adopt hybrid menus
                                                           Brand Ambassador Survey 2020                      that offer all drinks in both alcoholic
mindful drinking really took off and                       reveals bartenders feel that the                  and non-alcoholic versions.
it’s here to stay.”                                        pandemic has accelerated the
                                                           0% trend, with consumers more
      Brenda Fiala - Global Vice President, Strategic
                      Insights and Analytics for Bacardi

                                                                                                 83%
                                                                                    In Eastern Europe, 83% of brand
                                                                                      ambassadors stated that bars
                                                                                     were offering low-ABV cocktails,
                                                                                       compared to 37% globally.
                                                                                     (Bacardi Global Brand Ambassador Survey)
FREE-FROM                                      an aperitif featuring the taste of
A shift towards a more mindful                 raspberries and rhubarb, avoiding      WESTERN
approach has seen the same                     the use of artificial sweeteners,
care we take when choosing                     additives, and flavorings.
                                                                                      EUROPE
what we eat slowly filter down
to encompass what we drink.                    Other spirits are embracing a
Consumers who desire to eat                    free-from approach too. Mezcal
less processed food with fewer                 is emerging as a strong favorite;
artificial additives and reduced               the spirit is a cleaner drink as by
refined sugar are applying this                legal requirement it is made from
logic to drinks, with future-                  100% agave, and offers small-
thinking brands emerging to                    batch artisan credibility, much like
tap into this growing base.                    the craft beer scene, which has         NORTH
                                               become an important part of the        AMERICA
Nordic Spirits Lab produces                    drinks industry in recent years.
a distilled gin with akvavit
botanicals (coriander, angelica,
lemon peel, caraway or dill) and

                                   75%
                             Almost three quarters of
                           people worldwide plan to eat
                          and drink more consciously as
                            a result of the pandemic.20
                                     (Beneo)
FUNCTIONAL ELIXIRS                                       vegetables, and mushrooms as well
The pandemic has ushered in a new                        as lactobacillus – a ‘super probiotic’
focus on mindfulness and wellbeing,                      that defends the body from unwanted                                          WESTERN
with anti-viral diets being favored                      bacteria, aids digestion, and bolsters
by many who prioritize a minimum                         nutrient absorption. Molson Coors’
                                                                                                                                      EUROPE
five-a-day fruit and vegetable intake                    recent probiotic and non-alcoholic
alongside plant and botanical                            seltzer launch is an important milestone
ingredients and superfoods.                              in this movement going mainstream.

This shift has sparked a wave of                         Immune-system boosting ingredients
cookbooks catering to our desire to                      have come to the fore, providing a
get more use from food - from anti-                      way for consumers to feel reassured
inflammatory to brain-boosting diets.                    they are doing their best to maintain
Healthy gut bacteria has become a                        their health. “Immunity is one of the                                          NORTH
popular area of focus, as it is thought                  hottest topics out there right now, and                                       AMERICA
to multiple aspects of wellbeing.                        flavors that consumers recognize as
                                                         immunity-boosting, such as turmeric,
Jin Jin cordial offers to bring the                      elderberry, echinacea, citrus and berry
benefits of cultured enzymes to                          flavors, will perform well with people
drinks. The cordial uses a traditional                   who are looking for a quick fix in their
fermentation technique from Japan                        diet,” says Alex Massumoto, marketing
and combines more than 35 fruits,                        associate at Synergy Flavors.21

                                           23%                                                             “The global functional
                                                                                                        beverages market size is
                                                                                                     predicted to have a CAGR of
                                 23% of Britons saying they are
                                eating more fruit and vegetables
                                since the outbreak of the virus.22
                                                                                                    8.66% in the period of 2019-
                                              (Mintel)
                                                                                                    2024, rising to $208.13 billion
                                                                                                                      by 2024.” 23
                                                                                                                          (KPMG Insights)
63% of respondents
stated there was an                                                                                           WESTERN
                                                                                                              EUROPE
interest in ferments such as
KOMBUCHA and KEFIR in
Eastern Europe, according      The market for functional ingredients is further evidenced
                               by the Bacardi Global Ambassador Survey which reveals
to the Bacardi Global Brand    that ingredients of interest among bartenders are ferments
Ambassador Survey 2020.        (such as kombuca and kefir), herbs and fresh berries.

                               In the wine market, alternative vintners are emerging that                      NORTH
                               offer a way to combine non-alcoholic wines with health-                        AMERICA
                               benefiting ingredients. Ambijus, from Norway’s leading non-
                               alcoholic specialist Leske, is an alcohol-free alternative to
                               wine made with apples, juniper berries, herbs and roots
                               and using fermentation, cold brewing and steeping. Similar
                               innovation is expected to reach the cocktail market soon.

                               “In the 14 weeks to 6 June, U.S. sales of
                               ginger rose by 94%, while turmeric and garlic
                               sales were up by 68% and 62%, respectively,
                               compared with the same period in 2019.24
                                                                                (Global Wellness Institute)
CITATIONS
1.    https://www.bacardilimited.com/media/news-archive/keep-calm-and-soiree-on-
      thenew-era-of-summer-socializing/

2.    https://imbibe.com/news/the-covid-19-pivot-how-london-bars-are-developing-
      cocktails-for-delivery/

3.    https://www.healthline.com/health/how-long-does-it-take-to-form-a-habit#it-varies

4.    https://www.theiwsr.com/will-current-shifts-in-consumer-behaviour-permanently-
      disrupt-the-beverage-alcohol-industry/

5.    https://www.bacardilimited.com/media/news-archive/from-virtual-halloween-to-
      christmas-in-quaranteams-and-fist-bumps-under-the-mistletoe-bacardi-survey-
      reveals-tis-the-season-to-go-big-and-stay-home/

6.    https://www.fdiforum.net/mag/retail-food-service/functional-flavours-top-drink-trends-
      for-2021/

7.    https://www.theiwsr.com/covid-19-will-create-far-reaching-impact-on-globalbeverage-
      alcohol-consumption/

8.    https://www.fdiforum.net/mag/retail-food-service/functional-flavours-top-drink-
      trendsfor-2021/

9.    https://imbibe.com/news/opinion-what-will-cocktails-look-like-post-coronavirus/

10.   http://www.novotaste.com/flavour-trends-to-stir-into-the-fb-industry-for-2021-food-
      processing/

11.   https://modernrestaurantmanagement.com/kimptons-2021-culinary-cocktail-trend-
      forecast-infographic/

12.   https://vinepair.com/articles/home-bartenders-future-drinks-business/

13.   https://www.statista.com/statistics/1107332/covid-19-ordering-drinks-for-delivery-
      ingreat-britain/

14.   Bacardi Global Brand Ambassador Survey, On-Trade Trends 2021 (North America)

15.   Bacardi Global Brand Ambassador Survey, On-Trade Trends 2021 (Western Europe)

16.   https://www.theguardian.com/food/2020/jun/13/whisky-is-back-in-favour-and-now-
      women-are-calling-the-shots

17.   https://www.barrons.com/articles/two-thirds-of-north-americans-prefer-eco-friendly-
      brands-study-finds-51578661728

18.   https://www.prnewswire.com/news-releases/consumers-want-to-support-their-
      local-economy-by-supporting-local-businesses-according-to-a-survey-by-
      zypmedia-301066610.html

19.   https://www.bacardilimited.com/media/news-archive/less-is-more-bacardi-
      predicts400-growth-in-no-and-low-alcohol-in-next-four-years/

20.   https://www.foodingredientsfirst.com/news/shifts-in-consumption-patterns-amid-
      pandemic-are-hard-to-ignore-says-beneo.html

21.   https://www.ift.org/news-and-publications/food-technology-magazine/issues/2020/
      october/columns/ingredients-flavors-of-change-taste-trends-evolve-in-pandemics-
      wake

22.   https://www.mintel.com/press-centre/food-and-drink/pass-the-avocado-on-toast-a-
      quarter-of-young-millennials-say-covid-19-has-made-a-vegan-diet-more-appealing

23.   https://www.alfa-editores.com.mx/top-five-beverage-trends-for-2020-2021/

24.   https://globalwellnessinstitute.org/global-wellness-institute-blog/2020/07/14/
      accelerating-wellness-trends/

Specific statistics and examples are referenced and web linked throughout the document.

©2021 BACARDI

BACARDI, THE BAT DEVICE & OTHER MARKS RELATED TO PRODUCTS IN THIS DOCUMENT ARE TRADEMARKS OF BACARDI & COMPANY LIMITED OR OF OTHER
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