Rabobank: Pandemic Sparking On-Premise Evolution, Off-Premise Innovation

The shift away from on-premise use occasions sparked by the COVID-19 pandemic has inspired beverage companies to respond with unique innovations for at-home consumption, according to a new report from Rabobank’s research division.

The report noted that beverage makers have shown “surprising resiliency and creativity” in meeting the unique challenges of the global pandemic, employing a variety of strategic responses with varying degrees of success.

Discussing the report with BevNET earlier this week, Steve Rannekleiv, Global Strategist for Beverages at Rabobank, cited several initiatives from across the world in which beverage brands have leveraged digital technology, including virtual clubbing and bespoke playlists on music streaming services, to enhance the off-premise experience.

Away from home, beverage companies are also seeking ways to support their on-premise partners as that sector gradually resumes operations post-lockdown, according to the report. In addition to extended payment terms, Rennekleiv noted that brands can help provide value in other ways, such as training on best management practices during COVID or assistance with product assortment strategy.

“In terms of impact, everyone is kind of in survival mode,” he said. “To the degree that beverage companies can help on-premise providers to survive, it’s important.”

The long-term effects of these changes remains to be seen, but the spike in interest in e-commerce over recent months will likely spark deeper investment and support in the space from major strategic brands. Rannekleiv noted that even post-lockdown, consumer reversion back to brick-and-mortar stores has been slower than expected.

“The retention of e-commerce has been stickier than even we expected,” he said.