The current state of the wine and spirits industry is a good measuring stick for your optimism levels. If you’re a glass half-empty kind of person, it doesn’t seem great that alcoholic beverages are being consumed differently than ever before and the industry is in a period of disruption.
But there is a glass half-full perspective to be taken as well. Whether it’s changing beverages or a changing demographic, there are new opportunities that come along with the disruption. To identify those opportunities, you need the right kind of data. Let’s explore how you can take advantage of changes in the industry, and the role data can play in the process.
State of the industry
According to the IWSR, newer drinkers are drinking less. The global drinks data and insight provider reports that 67% of wine drinkers from legal drinking age through age 27 are moderating their alcohol consumption. That number steadily declines with age: with 61% of millennials, 49% of Gen X, and 43% of boomers saying the same thing.
That kind of a lifestyle change is one of the reasons there has been such a shift in drinking habits among American consumers in recent years. Other factors include a wider variety of drink categories to choose from, including non-alcoholic options, as well as more stores selling those items.
The role of data
All of these trends can provide valuable information if organizations take the right approach to it. Understanding what people are drinking can inform decisions on what items should be stocked. Many companies have adjusted to the trend that has reflected the popularity of ready-to-drink beverages. Whiskey companies, for example, have expanded their offerings and are selling pre-made drinks such as an RTD Old Fashioned.
Knowing where certain items are popular can also help. Sales data can show where consumers buy more of different kinds of drinks, leading organizations to target those areas with similar beverages that may need a sales boost. Companies need a plan to take advantage of their data, and they need the right analytics solution to help them make informed decisions that will enable them to thrive.
How Dimensional Insight can help
Dimensional Insight – the analytics leader in the beverage-alcohol industry – has the right technology and a wealth of industry experience to help businesses get the results they need. When it comes to the data that can help organizations penetrate and expand in new markets, Dimensional Insight tools can provide:
- Consumer trend analysis to identify and anticipate shifts in preferences
- Sales data to track performance of different product categories
- Market segmentation to tailor marketing efforts effectively
There may be other shifts on the horizon, with the recent report that the U.S. surgeon general wants to include a risk of cancer on the cautionary labels of alcoholic beverages. But the wine and spirits industry as a whole can take similar steps to the ones restaurants have taken as they have witnessed a decline in alcohol sales in people who go out to eat.
Some restaurants have responded by getting creative, providing nonalcoholic cocktails that are as appealing to customers as alcoholic varieties, and that can be priced similarly. Some have increased their selection of no- and low-alcohol beer and wine. Restaurants are not just responding to the trend of drinking less, though. Another trend indicates customers are willing to spend more on premium brands, and restaurants have stocked accordingly.
A change in customer preferences doesn’t have to mean damage to a company’s bottom line. Organizations need to remain flexible, and recognize the opportunities that may present themselves when one revenue stream closes. To find where another revenue stream opens up, you don’t even need to be someone who looks at the world through rose-colored glasses. All you really need is data.
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