Industry Trends

Demand for on-premise premium wine and cocktails surges

As 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 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.

“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.”

“The appeal of something different, something fresh and new, when developing cocktail menus this year complements the classics and bolsters variety.”

Summer is here and canned cocktails are all the craze

As consumers emerge from more than a year of isolation and with the official start of summer behind us, Talkwalker, a consumer intelligence platform, found canned beverages to be among the top emerging trends in consumer spending and social media conversations for the summer.

And there’s a lot to say about the canned cocktail craze. Conversations already point to an evolution in the malt beverage category — from hard seltzer to extra-hard seltzer to canned cocktails becoming ubiquitous to new ways to consume these products (like slushies or popsicles) reaching a critical cultural mass. Either way, it’s shaping up to be a sweet, boozy summer.

Here is a top 10 list of year-to-date discussions of hard seltzer that mention a flavor in the U.S. Each flavor represents a percentage of the total 18,000 hard-seltzer flavor conversations:

• Lemon, 39% • Mango, 10% • Plain, 9% • Cherry, 7% • Strawberry, 6.5% • Lime, 6% • Peach, 4.3% • Pineapple, 4% • Raspberry, 3.4% • Watermelon, 3.4%

INDUSTRY TRENDS

Add single-serve, low-calorie wine to your beverage MYX

Today’s consumers are more educated and health-conscious, constantly seeking options that are better for them, so after many years of success with MYX Fusions Moscato and Sangria, MYX Beverage is now entering the lower-calorie, low-alcohol wine segment with MYX Light Chardonnay and Rosé. The company is excited to offer consumers what they are demanding — two new wines with great flavor, fewer calories and less guilt, all packaged in convenient four-packs of cans.

MYX Light Chardonnay is a slightly dry wine with fresh, crisp notes of apple, Romagna pear and lemon, whereas MYX Light Rosé is made from Barbera grapes showcasing refreshing hints of strawberry, raspberry and citrus. Imported from Italy, both wines feature 75 calories per 5-oz. serving, 5% alcohol by volume, and a gluten-free, kosher-certified product.

Peter D. Reaske, MYX Beverage CEO, says, “We knew that, if we entered the on-fire light category, we needed a product that didn’t compromise taste or quality, and at 75 calories per serving, MYX Light delivers exactly what consumers are looking for — greattasting, sessionable, refreshing, easy-to-drink, lower-calorie wines.”

Fresh-brewed tea, sometimes bubbly and always boozy Digging honey mint syrup in a South-Facing Light tequila cocktail

Owl’s Brew, a first-of-its-kind boozy tea, is now available in Wisconsin, including a newly launched, refreshing flavor — Jasmine Tea, Blueberry & Lemon. This new flavor will be part of the Owl’s Brew Par-Tea Pack 2 (with a 4.8% alcohol by volume), along with Matcha Tea, Pineapple & Chamomile, and White Tea, Raspberry & Watermelon flavors. All flavors of this hard tea seltzer include:

• English Breakfast Tea, Lemon & Lime • Darjeeling Tea & Hibiscus Flowers • White Tea, Raspberry & Watermelon • Matcha Tea, Pineapple & Chamomile • Jasmine Tea, Blueberry & Lemon

These boozy beverages are made with 100% real ingredients, organic tea, no added flavors and no added sugars. Not only are these hard tea seltzers comparable in calories and carbs to leading hard seltzers, but each fruity and floral flavor is also thoughtfully crafted by tea experts, including founder and tea sommelier Jennie Ripps.

For a bright, summery substitution, replace the simple syrup called for in cocktail recipes with honey mint syrup, according to Greendigs, an online, custom-curated indoor plant provider. Whenever you’d like to add a little sweetness, fresh mint honey syrup is an easy staple. Simply follow the directions below before adding it to your SouthFacing Light tequila cocktail.