BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks

Page created by Hector Spencer
 
CONTINUE READING
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
BACARDI
2020
COCKTAIL
TRENDS
REPORT
Presented by the Bacardi Cultural
Insights Network.
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
The Bacardi 2020 Cocktail
Trends Report is a curation of
trends based on research with
brand ambassadors, the trade
and multiple third-party
research experts.

We have identified a set of new
and evolving trends that we
see as a reflection of what’s
creating excitement this year
for bartenders and consumers.
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
NO/LOW IS GAINING TRACTION                                                                                                                                     GLOBAL
More and more people are choosing to enjoy                             amaros, sherries and vermouths. Vermouth
a lighter drink for many reasons including                             cocktails are emerging amongst the Top 5             LOW-ABV ARE THE MOST
lowering calories, trying something different                          cocktails and consumers are demanding
and a growing focus on mindful drinking.                               flavorful alternatives to continue socializing.       ENGAGING COCKTAILS
This doesn’t mean people are willing to
sacrifice on flavor or experience. Low-ABV
                                                                       We are seeing excitement by bartenders
                                                                       around drinks involving low-ABV colorful
                                                                                                                               TO INFLUENTIAL
offerings are growing in sophistication and
are seen as additions to a bar rather than a
                                                                       vermouths like MARTINI® Fiero that provide
                                                                       the ability to make a colorful, flavorful, and all
                                                                                                                                BARTENDERS
replacement for full-strength cocktails. This                          natural Spritz.
trend goes hand-in-hand with the increased
interest in naturally low-ABV fortified wines,

              8%                                   42%                                        55%
         expected CAGR                     online searches with the               of the bartenders in New York, LA
      growth in low-alcohol                 word ‘mocktail’ are up                 and London believe the no-and
       beverages market                        (Google Trends, 2019)              low-alcohol trend will continue to
        during 2017-2021                                                           grow within the next 12 months
          (Technavio, 2017)                                                               (Distill Ventures, 2019)

                                                                                                                                IN RUSSIA SPRITZES
                                                                                                                               ARE TRENDING (77%)
            83%                                    20%                                        59%                               and are in second in Western
                                                                                                                                 Europe (48%) after general
                                                                                                                                  low-ABV cocktails (50%)

     of bartenders cite that            on-premise consumers claim                  bartenders interested in bitter
   Low-alcohol drinks are hot            to typically consume NoLo                        liqueurs globally
 (Nielsen CGA On-Premise User Survey,              offerings                         (Global Brand Ambassador Survey
              Fall 2019​)               (Nielsen CGA On-Premise U.S. Survey,                   (GBAS), 2019)
                                                     Fall 2019​)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
CONSUMERS CONTINUE                                                                                           GLOBAL

TO DRINK BETTER
Premiumization remains to be one                          by the value-driven millennial
of the single largest market drivers                      consumer that wants to demonstrate
across most developed economies.                          their beliefs through inconspicuous
Across almost all product categories                      consumption. In contrast, the second
two strands exist that serve different                    driver, absolute luxury, is a marker of
purposes. The first, affordable luxury,                   exclusivity. It has transformed from
is driven by the rise in the middle                       overt displays of money to consumers
class. More consumers now have                            demonstrating knowledge, cultural
the disposable income to elevate                          capital, and exclusivity, which make
everyday moments. Despite political                       great stories. This strand embodies
uncertainty, consumer confidence is                       the true ‘rich person’ who still wants
rising and consumers are exploring                        to demonstrate wealth but through
new flavor profiles and categories.                       less tangible, ‘meaningful’ means.
The need for knowledge and                                In alcohol, it plays out in a stronger
transparency around how and what                          desire to try and buy goods that have
we consume has also driven the                            an interesting story, provenance,
rise in premiumization, motivated                         craft credentials, and clout.

             5%                              2.5%                                   47%
   growth in overall luxury             rise in sales of premium        consumers already do or would
       market in 2018                 spirits and a fall in standard    upgrade to a better-quality spirit
(Bain & Company Luxury Study, 2018)    spirit sales of 1% in 2017            and mixer in the UK
                                           (LWC Drinks UK, 2019)             (CGA Mixed Drinks, Q1 2019)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
GLOBAL

BARTENDERS SEE
ALLURE IN AGED RUM
Cross-­category competition and consumers’
premium demands have pushed producers               •   Dark Rum (43%)
to create a more diverse, innovative rum
category. In the past five years, UK rum sales      •   Tequila (40%)
have grown 15% by volume and 32% by value
(according to the 2017 WSTA Spirits Report),
                                                    •   Gin (37%)
and have now broken £1 billion ($1.3 billion).      •   Mezcal (29%)
Premium rum represents 15% of the total rum
sector, and the segment is continuing to grow.      •   Vermouth (21%)
Dark rum is the category that is premiumizing           (GBAS, 2019)
the most.

      43%                         6TH                        2ND
  bartenders globally            top spirit of           top premiumizing
 voted dark rum as the       interest in the U.S.       category in Russia
top spirit to premiumize         (GBAS, 2019)               (GBAS, 2019)
      (GBAS, 2019)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
NATURAL INGREDIENTS                                                                                                                        GLOBAL

ARE HERE TO STAY
With rising awareness about food and where                                       demanding balanced, natural, fresh, and
it comes from, people are seeking the safety                                     healthy ingredients. From earthy ginger to
of natural ingredients that they can recognize                                   floral lavender to citrus grapefruit, brands are
(and pronounce). Heavily sweetened,                                              celebrating these attributes and are helping
crazy-colored beverages are no longer a                                          consumers feel like they are making the best
part of the daily routine and support for                                        (and most natural) choice.
sugar taxes reflects how people are instead

      62%                                    45%                                      58%                             15.3%
 of U.S. consumers                  berry is the top flavor profile     zero-waste ingredients are the               CAGR growth for
 are seeking natural                of consumers when drinking           leading bartender interest in             Europe’s organic wine
  beverage options                       cocktails in the UK              North America and the UK                 consumption between
 (Beverage Industry, 2018)             (CGA Mixed Drinks, Q1 2019)                    (GBAS, 2019)                      2012-2017
                                                                                                                          (IWSR, 2019)

                     61%                                     18.5%                                        46%
         of Britons would like to see a                increase in organic spirits            of millennials priority when it comes
          greater range of soft drinks                 sales over last three years                to food is nutrient density, no
       targeted at adults, while serving                    (LCBO Statistics, 2018)                 artificial additives (40%),
       more health-conscious lifestyles                                                          organic foods (39%), and plant
                      (CGA, 2019)                                                                           based (37%)
                                                                                                     (Sweet Earth Foods, 2019)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
GLOBAL
EXOTIC INGREDIENTS
CONTINUE TO FASCINATE
We are living in a moment where our                       ingredients also provide this.
access to the global pantry seems                         Additionally, with the rise of flexitarians
to be forever increasing. In today’s                      and vegans, consumers are looking
connected world, it is easier than                        overseas for exotic, functional
ever to learn about other cultures and                    ingredients to excite their plant-based
their cuisines. Innovation has seen                       diets and meet nutritional goals. Exotic
brands take cues and ingredients                          ingredients allow the opportunity for
from other countries to excite the                        brands to connect with adventurous
consumers that are uninspired by                          consumers. They are curious about
the status quo. Consumers are                             exotic flavors, new food experiences,
looking to signify their wealth through                   and the unique story behind the
social capital. Exotic, exclusive                         product.

      42%                            58%                                 32%
  say that exotic fruit    of people like to experiment          fresh fruit and berries cited
  flavors are trending      and try new and different            as ingredients increasingly
  (Sparks & Honey, 2018)           spirit flavors                   appearing in cocktails
                           (CGA Mixed Drinks Report UK, 2019)            (GBAS, 2019)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
TOP INGREDIENTS
                           OR MIXERS OF INTEREST

Zero-Waste      Ferments        Coffee         Flavored    Herbs/
Ingredients   (E.g. Kombucha/                   Tonics     Herbal
                    Kefir)

  58%             51%           39%            35%        32%

Aromatic/       Local and        Teas          Coconut    Flavored
Flavored       Fresh Fruit/                     Water       Soda
 Bitters         Berries
  32%             31%           29%             27%       25%

                                (GBAS, 2019)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
WEUR
SAVORY COCKTAILS
ARE IN STYLE
The culinary cocktails trend borrows
methods and techniques from the kitchen
                                                       offer cocktails as individual courses.
                                                       This movement is also seeing bartenders
                                                                                                   NAM
and champions fresh, seasonal, herbal,                 experiment with savory and exotic flavors
and savory ingredients. Advocating                     to match with tasting menus including
the farm-to-table movement, culinary                   harissa-infused mezcal and plantain-
cocktails offer a premium experience.                  infused scotch.
Some progressive bars are starting to

                                                                                                   ASIA

        91%                         40%                            68%
of bartenders are using          of chefs see smoky           of American Culinary
   vegetables in their           flavors influencing          Federation members
        cocktails                   menus in 2019            rated culinary cocktails
 (Tales of the Cocktail, 2018)      (Kimpton, 2018)          as a “hot trend” in 2018
                                                                 (National Restaurant
                                                                  Association, 2018)
BACARDI 2020 COCKTAIL TRENDS REPORT - Presented by the Bacardi Cultural Insights Network - Mercurio Drinks
RISE OF THE                                                                                           GLOBAL

READY-TO-DRINK (RTD)
The rise of ready-to-drink (RTD) and ready-to-            to go camping. Due to improved packaging,
serve (RTS) cocktails and the premiumization              brands have transformed the canned
of them can be attributed to the overarching              cocktail to be an upmarket option. There is also
demand for consistent and convenient well-                movement into using glass and plastic bottles
crafted cocktails beyond the bar. Pre-mixed               to create an even more sophisticated and
cocktails are moving away from artificial colors          “instagramable” look. RTD options also open
and favoring premium ingredients to meet the              opportunity for creative experiences such
demand for sophisticated on-the-go options to             as kegs on tables and gas infusions.
take with them to festivals, to the beach and

                                  26%                             33%
                              increase in pre-mix          cite convenience as top
                                 can shoppers             reason to buy RTD drinks
                                (Kantar UK, 2019)           (Bacardi Global UK Shopper
                                                             Segmentation Study, 2018)

                                  39%                             26%
                           of bartenders are noticing      increase of vodka soda &
                          more G&T (and twists) RTD/    flavors RTDs in North America
                                 RTS products                     (GBAS, 2019)
                                  (GBAS, 2019)
HOME ENTERTAINMENT                                                                                               GLOBAL

CONTINUES TO DIVERSIFY
Today people want the luxury of both                            learn a new skill from a YouTube® video,
spontaneous intimate get-togethers as                           it has never been easier for consumers to
well as planned parties at home. With                           craft their own sophisticated cocktails in the
convenience, cost and time being major                          comfort of their own home and consumers
factors of consideration, home entertainment                    are looking for tools to do this. Home
is becoming an increasingly appealing option.                   entertainers want to create ceremony and
Advances in home-kits to cocktails machines                     spectacle through their dinner parties –
to AI-recommend cocktail recipes are further                    they want to impress their guests.
fostering this trend. In an era where you can

         30%                              14%                                       55%
 of all cocktail consumption   of Gen Z enjoy learning how to               of American consumers
      happens at home               prepare new drinks                      prefer drinking at home
       (Just Drinks, 2017)     (Opinium Research & The Drum, 2019)                  (Mintel, 2018)

         74%                              13%                                       71%
of those who prefer drinking        of consumers own a                of UK shoppers state convenience is
at home do so because it is            spirits measure                more important now than 5 years ago
       more relaxing                    (Waitrose, 2018)                    (Sun Branding Solutions, 2018)
         (Mintel, 2018)
WHERE PEOPLE DRINK                                                                                                             WEUR
IS EVOLVING
Drinking occasions go way beyond the                                               themselves and champion local
bar, restaurant and at home. #Foodfestival                                         producers and hence distillery visits are
appears half a million times on Instagram®                                         on the rise. Consumers want to get closer
and #Beerfestival appears a quarter of a million                                   to a brands’ world so events like outdoor
times. Millennials and boomers alike are                                           concerts, sporting events, and pop-ups
prioritizing experiences over material goods                                       that make the consumer experience           NAM
and food and drink festivals provide a                                             the heart of the occasion and bring
destination. Consumers are keen to educate                                         people together.

           18%                                     100                                    70%
                                                  MILLION

  of total craft spirit sales                UK consumers spend                of U.S. consumers prefer to
  come from on-site sales                    on alcohol at festivals            visit entertainment formats
     at their distilleries                         each year                  over typical casual restaurants
  (Craft Spirits Data Project, 2016)               (CGA, 3019)                          (Technomic, 2019)

                                61%                                         1.9
                                                                         MILLION

                    of U.S. consumers say that                 record-breaking visits to
                  visiting restaurants is a form of          Scotch visitor centers in 2017
                            entertainment                        (Scotch Whisky Association, 2018)
                             (Technonmic, 2020)
ATTENTION TURNS                                                                                                            WEUR
TO TRANSPARENCY
Consumers are demanding and                                          brands that can represent their lifestyle.
expecting brands to be transparent with                              In a world where you can find out where
their supply chain, production process                               a product comes from in a simple
and backstory. Boomers and Gen Xers                                  online search, brands cannot hide from
want ingredient lists and nutritional
information, and millennials want this
                                                                     unethical practices and need to make this
                                                                     information really clear to build consumer
                                                                                                                           NAM
as well as allergy, animal welfare, fair                             trust. Blockchain and digital labels now
trade and labor practices information.                               have the power to details the entire
Millennials are looking for authentic                                farm-to-bar process in seconds.

                    75%                                     76%                                      9/10                  LAC

            would switch to a brand                  of shoppers turn to the                    consumers will stop
             that provides more in-                    internet for answers                   purchasing from brands
           depth product information                  that they can not find                   that lack transparency
                beyond the label                             on labels                             (Sprout Social, 2018)
            (Food Marketing Institute, 2018)             (Label Insights, 2017)

                                        60%                                          78%
                            of drinkers care about where                        of consumers trust
                                 their beer is brewed                        transparent brands more
                                        (YouGov, 2017)                            (Label Insights, 2017)
WEUR
SPOTLIGHT ON
PURPOSE-DRIVEN SPIRITS
Consumers validate their own identity              campaigns that wholeheartedly support       NAM
and values through the products they               and commit to solving important issues.
buy. People are looking to brands to               Mainstream brands are becoming
be transparent about their values to               more outspoken about declaring their
make their own purchasing decisions                values and the response has been
easier. Spirit brands, internally and              overwhelmingly positive. It is, however,
publicly, have always worked with                  crucial that the ‘purpose’ is coming from
charities to support good causes but is            a genuine place and brands stay true to
this enough? This trend highlights the             their word in order to be perceived as
brands making long-term commitments                authentic and trustworthy.
through design-led innovation and

      64%                        60%                               2X
 of consumers around         say brands should                faster growth for
 the world are “belief-       make their values            brands with a purpose
     driven” buyers          on important issues            (Kantar Consulting, 2018)
     (Edelman, 2018)             transparent
                                (Edelman, 2018)
WEUR
SUSTAINABILITY STIRS
CONVERSATIONS IN BARS
Sustainability is at the forefront of
every consumer’s mind nowadays,
                                                    cocktails by repurposing waste,
                                                    serving room temperature cocktails,
                                                                                            NAM
and waste management is a huge                      and even growing their own ‘garnish’
topic within the food and drink sector.             gardens. As an industry, we have
Recently demonstrated by the                        barely scratched the surface of
overwhelming commitment to refuse                   this movement. Now brands and
plastic straws, concerns for the                    bartenders will have no choice but to
environment are at an all-time high.                take a “root to leaf” approach.
Driven by anti-waste, Trash Tiki bars
are now offering zero-ingredients

     45%                          88%                                  2%
   of bartenders are         of bartenders consider           of on-premise consumers
increasingly interested        sustainability when             agree with ‘I often seek
     in zero-waste          designing a new cocktail             out products that are
       ingredients                (Kimpton, 2018)                 more sustainable’
      (GBAS, 2018)                                              (U.S. On-Premise Consumer
                                                                       Survey, 2019)
BARTENDER                                                                                                                            WEUR
FITNESS
BECOMES A
PRIORITY                                                                                                                             NAM
Bartending, although fun, is physically demanding
and often disrupts sleep. Bartenders are realizing
the importance of their health and seeking
resources to help support their well-being beyond
the bar. As bartenders play such a key role within
the spirits industry, brands are taking responsibility
for them and supporting their welfare. Brands
organize self-defense workshops, exercise
boot camps and post-shift meditation sessions.
Programs like Bar Spar presented by Bartender
Boxing and sponsored by CAZADORES® tequila
are in high demand. Crafted with the main
objective of bartender wellness, the program has
grown from 2 cities in the U.S. to 10 cities across
North America in under 3 years.

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

©2020 BACARDI

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