Delivering on transparency is now table stakes for brands if they want to connect with the largest and most diverse generation on the planet with a purchasing power of $360 billion – 60% of whom say they don’t trust claims brands make about their products.
“In the face of uncertainty consumers are looking for transparency. It’s not a want, it’s a need,” said Heidi Dillon, CEO of Distill Ventures during the 2024 Winter BevNET Live conference in Marina Del Rey.
So how can brands in spirits and non-alcoholic beverage categories develop an authentic relationship to younger consumers?
Strong companies are clear about the consumer they are serving, hold a strong brand identity, and have real cultural positioning at their core, Dillon said.
“Brands that are focused on subculture deeply connect with an intersectional audience within their own cultural context – so whatever is relevant and authentic to them,” she said.
As wellness becomes a top priority, bev-alc brands can transcend their category and become a part of, or even shape, culture. That means inserting their products into moments that matter: a wind-down after work, a celebratory moment, and all-day occasionality is a part of that.
“Consumers are looking to explore drinks in a different way,” she said.
Expressing a brand’s values continues to be important to consumers: 82% of shoppers prefer a brand with values that aligns with their own.
“Today the beverage sector is not just about products, it’s about cultural moments, lifestyle choices and consumer values,” she said.