What Will the New-Normal Look Like for On-Premise Imbibing? by Samantha Des Jardins, Datassential

reathe a deep sigh of relief; consumers are on the move again. As millions of newly-vaccinated consumers plan summer activities and travel, on-premise alcohol sales are expected to climb significantly from the largely locked-down summer a year ago. Stadiums and movie theaters are seeing customers return; airports, train stations and hotels will be filling up with travelers anxious to resume whatever their “new normal” looks like. But what will they want when they get there? Something fresh and new, to be sure. More than ever, consumers will demand innovation, eager to experience food and drinks that they can’t replicate at home. And many consumers throughout the pandemic have stretched the definition of what they can create for themselves. To-go cocktail kits and other alcohol delivery, for example, have given them the opportunity to indulge in the comfort of their homes. To differentiate, on-premise providers will have to innovate not just in the drinks they are creating but also in how drinks are purchased and consumed. Consumers have evolved and are demanding more than perhaps ever before.

BAnd there’s another incentive. Although travel is expected to be up significantly from last year, it’s far from a state of full recovery. Many consumers are still apprehensive about spending too much time in crowds or heavilytrafficked areas, even once they buy a ticket to a show or book a vacation to an exotic locale. It will be critical to balance consumers’ demands for the new and innovative with a way that’s safe and sustainable for the future. Dishes and drinks that can’t be easily replicated at home are the top reason two-thirds of consumers surveyed by Datassential say they’ll opt for foodservice. Also top on the list of desires are variety and the opportunity to try “something new and exciting.” And then there’s another important trend to keep in mind this summer — nearly 30 percent of consumers want indulgent food and drinks and offerings that feel like a “treat” and a near-equal number want healthier options. Variety and balance is the name of the game. One major trend in alcohol consumption that is easily translatable to a post-pandemic future is technology. Adult beverages are becoming

What Will the New-Normal Look Like for On-Premise Imbibing?

By Samantha Des Jardins of Datassential

accessible at any time and nearly anywhere, and consumers will expect the same convenience when they are at an event or on a trip. That could include anything from alcohol in vending in an airport or other public space (a trend that’s not uncommon in countries like Japan) to smart cocktail systems or self-serve/ in-room taps, all of which will be increasingly in demand as consumers want to have more control over their individual experience and less contact with others. Along with this technology, single-serve, pre-made cocktails are also gaining steam, as is canned wine. Both are enticing options for a booze vending service. Looking to the more extreme, cocktail systems powered by artificial intelligence are also popping up, utilizing AI to invent customized cocktails based on an individual’s preferences or predict which cocktails one would enjoy on a particular bar menu. While

staff recommendations still hold outsized influence, many consumers — younger ones, in particular — are gravitating more toward computer-generated options. Delivery methods are an increasingly important differentiator as well, and are especially critical for those consumers who are concerned about contamination or germs. The methods that consumers rank most interesting include beverages sent to customers with a tamper-proof seal on ready-to-drink bottles or cans. Giving consumers the option for these types of beverages could save a sale from a nervous consumer and also encourage others to imbibe more freely. When it comes to drink formats, large format cocktails, long a mainstay at casual chains, are seeing a resurgence as consumers gravitate toward experiential food and drink and Instagramworthy design. These drinks have eye-catching appeal that can lure other bar-goers to choose similarly flashy drinks for themselves, but they have an obvious pandemic red-flag: It only takes one person in a party to say they feel unsafe sharing a drink with a group. The post-pandemic solution? Present the shareable (and Instagrammable) group drink to the table, allow a few photos to be taken, and then offer guests the option of having servers dole out individual portions so everyone is not drinking from the same large container. Much like a wedding cake that’s presented

so the bride and groom can take a bite before the dessert is removed and sliced, this provides the best of both worlds for customers desperately wanting to return to normal and capture a new summer experience, but appeases some in the party who may be nervous about sharing. Elevated brunch cocktails are also a social-media friendly and increasingly popular option for those who want something new and exciting. Flaming, color-changing and otherwise over-thetop cocktails loaded with toppings also are gaining popularity with consumers, particularly millennials. And as consumers demand a more adventurous drink, booze from around the world, particularly from Asia, is gaining ground, including sake, Japanese Whiskey and the addition of yuzu in mixed drinks. Floral and herbal elements are also finding their way into drinks as both flavoring agents and stunning visual flair. Rosé is also still going strong and extending beyond its wine popularity to beer, cider and even a frozen drink perfect for summer — f’rosé. Just as it’s important to blend consumers’ demand for healthy and indulgent, it will be equally important to balance the desire for innovation and a classic drink. About two-thirds of visitors to hotels and resorts say they expect to stick with a familiar or favorite beverage, but that still means that one in every three customers is open to trying something new. At hotel, resort and casino bars, elevated brunch cocktails, frozen cocktails and sparkling white wines are the options consumers are most open to trying, Datassential’s survey shows. For lounges and high-end bars and martini bars, consumers are most interested in trying flaming cocktails, while vintage-inspired and yuzu-infused cocktails are also high on their list, according to Datassential. At

wine bars, all-natural wine is top on consumers’ lists, while wine on tap is also an interesting new spin on technology. At stadiums and arenas, single-serve, pre-made cocktails and single-serve wine have captured consumer attention. The kind of innovation used on beverage menus this summer will vary widely, but it’s critical that it is present. The reason is clear. Along with an eagerness for a bit of fun and relaxation, most consumers choose to imbibe when traveling, vacationing or enjoying a summer event. At hotels and resorts, nearly three-quarters (73 percent) of drinking-age consumers who went to a hotel or resort in the last year say they had a drink on their last visit, according to Datassential. That number is almost as high at other locations like sports stadiums and casinos. More than a third of hotel and resort guests ordered alcohol every time they had a meal or another opportunity. And when it comes to hotels and resorts, the innovation in alcohol service may hold an outsized impact on revenue in other parts of the business. Nearly one in five consumers (18 percent) say alcohol is a major factor in choosing where to stay, according to a Datassential survey. And if there’s a recipe for designing a bar menu for the postpandemic world, it’s this: three parts innovation, two parts technology, one part visual flair and a generous topping of flexibility.