INDUSTRY TRENDS customers meet this demand by revamping cocktail menus and enhancing beverage experiences.” Breakthru relies on its technology to convert data to business intelligence that drives a better understanding of consumer behavior, putting these insights to work in every market for supplier and customer partners. Consumer data shows strong trends in consumer spending, which is up 4% in March 2021, with consumer confidence also nearing pre-pandemic levels. Breakthru data shows a nearly $10 average price per case increase in April 2021, with four markets — Arizona, D.C., Delaware and Wisconsin — more than doubling that increase compared to 2019. Overall, premiumization continues to accelerate across categories with particularly strong growth in fine wine, ultra-premium tequila, mezcal, cognac and North American whiskey. Along the same lines, restaurant reservations were up in April in nine out of Breakthru’s 13 markets vs. the previous month (March). This is only expected to increase into the summer season.
Demand for on-premise premium wine and cocktails surges
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s bars and restaurants across the country continue to reopen, Breakthru Beverage Group, a North American beverage distributor with operations across the United States and Canada, is seeing particularly strong demand for fine wine and premium cocktails across its footprint. Driven by Millennials and Gen Xers who are more comfortable dining out post-vaccine, on-premise spending is surging. On-premise spending data in markets like South Carolina, Arizona, Florida and Virginia show a collective 6% increase in average sales compared to 2019. “We’re seeing better-than-expected volume trends in those markets that are further along in the reopening process as consumers are relishing the chance to be back out with friends and family,” says E. Lloyd Sobel, the chief commercial officer at Breakthru Beverage Group. “Consumers are not just going out more, they are spending more by opting for a premium bottle of wine or quality cocktail. Through our extensive portfolio that embraces a network-wide focus with market specialization, we pivoted quickly to help our
“The appeal of something different, something fresh and new, when developing cocktail menus this year complements the classics and bolsters variety.” — Alex Alfonso, Breakthru Beverage Group 32
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“Even before the pandemic struck, we saw a sustained trend of premiumization in the fine wine category, and a more educated consumer seeking out greater variety and a unique wine experience. Our team of highly trained wine specialists hit the ground running post-COVID offering a concierge-style service and more specialized approach to fine wine that helps our customers build their wine programs to satisfy consumer demands,” notes Daren Cliff, senior director of fine wine at Breakthru Beverage Group. Consumers are also increasingly drawn to the story behind the brand. Breakthru takes the responsibility of representing all partner brands in the last mile to the consumer seriously. Whether that’s an emerging, organic or local brand, using virtual learning and digital marketing programs to educate bar and restaurant accounts, innovative engagement plans prove to be successful. “We have seen a large number of requests from bar and restaurant owners looking to reopen with refreshed menus featuring new, creative cocktails using high-quality craft spirits,” says Alex Alfonso, a beverage development specialist at Breakthru Beverage Group. “For the past year, many consumers have been stuck in their homes mixing classic cocktails like an old-fashioned, Manhattan or margarita with standard brands. “Restauranteurs and beverage teams are now looking to attract consumers back to the bar by adding innovative new cocktail recipes using brands not typically found in a consumer’s home bar. The appeal of something different, something fresh and new, when developing cocktail menus this year complements the classics and bolsters variety.” www.tlw.org
