PREMIUM MIXERS: MIXING WITH THE BEST

Mixing with the Best

The premium mixers category is undergoing significant change, writes Brendan Black

Just because the temperature is dropping and our entertaining has moved out of the sunshine to indoors, it doesn’t mean consumers are going to say goodbye to their favourite premium mixers. Producers big and small shared their thoughts about the current trends for premium mixers and what can be done to strengthen the market.

Current trends

One dominant trend is that many consumers are looking to reduce their overall alcohol intake, or to simply improve the quality of what’s in their glass. The trend is evident in the beer and wine categories but also in spirits and, by extension, in mixed drinks.

“People are taking a more conscious approach to drinking. Whereas in spirits, people are drinking less but better; with mixers the approach is flavour first, not so much zero sugar and ‘good for you’ but more ‘I like a good time and I’d like to drink something that’s better for me,’” stated Strangelove Beverage Co. Brand manager, Caitlin Lockie.

The desire to source low- or no-alcohol drinks options has also entered this realm, coupled with lower levels of sugar, according to Capi Sales and Marketing Director, Kate Solly.

“On the back of the moderation and abstinence trends, we are also seeing customers drinking mixers as a nonalcoholic alternative over ice and with a garnish,” said Solly.

A consumer focus on sourcing products made from natural, unprocessed ingredients has been matched by producers, said Mr Consistent Chief Brand Officer, Kahrissa Bell.

“The cocktail mixer category has expanded significantly since Mr. Consistent launched - when there were predominately products on the market that weren’t made with real fruit ingredients. We have seen this demand for premium mixers with a focus on true flavour profiles made from real fruit ingredients expand dramatically since launch, and don’t think this will change in the future as people become more intentional about what they consume,” said Bell.

Consumer decisions

There can be many factors at play in regards to what influences a consumer to purchase one premium mixer over another, with a big focus on matching flavours to the alcohol in your glass, as well as the quality of the ingredients, while price may not be such a deciding factor, stated Fever-Tree Trade Marketing Manager, Steve Carr.

“Based on a recent study conducted by Fever-Tree (May 23), we know that the two most important factors to Australians when selecting a mixer brand are taste and available flavours. Australians also look for mixers that are made with high-quality, natural ingredients. Meanwhile being the cheapest price is ranked no.15 in the list of factors that are important to consumers when selecting a mixer. The mixer category has undergone significant premiumisation over the past 3 years, with premium share of mixers growing from 5% to 20% (2019-22), as they deliver on the qualities that Australians are looking for in a mixer,” stated Carr.

Driving visibility of mixers at point of purchase will result in higher basket spend.

- Steve Carr Trade Marketing Manager Fever-Tree

Attitude can also be an important element, with many people simply wanting a high-quality product and being prepared to pay for it, claimed Strangelove’s Caitlin Lockie.

“Brand-conscious individuals [can be] passionate about what exactly goes into their drinks, where it’s made, what produce is used, and most importantly, want to look interesting because they turned up to a dinner party with some pretty little bottles featuring an 8 ball on the label,” stated Lockie.

Cost of living

The higher cost of living has made a dent in people’s level of disposable income, yet from all reports, premium-mixer producers have not experienced (yet) any hits to their bottom lines, affirmed Fever-Tree’s Steve Carr.

“Both premium spirits and premium mixers continue to grow ahead of mainstream and value products, despite cost of living pressures. While Australians are trading down in everyday items and cutting back on big ticket discretionary spend, Australians continue to seek opportunities to trade-up in ‘little luxuries’ and experiences that make them feel good. This is what premium mixed drinks and cocktails can deliver. Some Australians are choosing to visit on-premise less often than usual due to cost of living pressures and these Australians are looking to recreate bar experiences and make bar-quality drinks at home. This has given rise to what we call the ‘home premise’. Use of premium mixers in the home premise is popular as it allows Australians to make simple, great tasting mixed drinks and cocktails with few ingredients,” said Carr.

The ability to make a high-quality product at home with premium ingredients but at an affordable price is still possible, claimed Mr Consistent’s Kahrissa Bell.

“If anything, this proves the existence of the premium cocktail mixer market is even more necessary! When you can make a perfectly balanced and delicious cocktail or mocktail for $3 a serve, you can still feel as though you are having a boujie night, but on a (cheaper than) beer budget!” stated Bell.

Supermarket competition

Convenience is a key factor when it comes to competition, and the ease of buying mixers from a supermarket means liquor retailers need to make it easier for consumers to buy “what they want, where they want it,” noted Capi’s Kate Solly.

“I would encourage liquor retailers (space permitting) to merchandise complementary mixers within spirit bays and have mixers merchandised closed to counter for the last-minute impulse purchase; there is nothing more frustrating than getting home or to a party with no mixers available,” stated Solly.

Where a product is situated within a store obviously has much impact on its visibility and therefore if a consumer is more likely to purchase it, stated Fever-Tree’s Steve Carr.

“There is still the element of impulse buy for immediate consumption. Bundle deals work well along with product positioning in store on gondola ends paired with matching spirits. Placement of product near the counter results in a significant sales uplift for the liquor retailers. Driving visibility of mixers at point of purchase will result in higher basket spend. Consumers will generally pay more for a mixer when purchasing alcohol from bottle shops,” said Carr.

Retailer recommendations

In the cooler months, many people will opt for red wine over white, or possibly spirits over beer, and mixers may also become less popular as a go-to drink, yet much can be done by retailers to turn this around, believes Fever-Tree’s Steve Carr.

“Focus on warming flavours and positioning autumnal coloured spirits and mixers together for ease of purchase. As humans, our palates change seasonally; in the cooler months we naturally gravitate towards bolder flavours, perhaps we perceive them to be more nutrient rich. We also gravitate more towards carotenoid/caramel colours in the cooler months, just thinking of a whisky & ginger, pumpkin soup or a sticky date pudding makes me warm and fuzzy!” stated Carr.

This view is echoed by Strangelove’s Caitlin Lockie. “Look to warmer flavours and recipe inspiration. Think Hot Ginger Beer and whiskey, Shiraz gin and Bitter Lemon tonic, Lime and Jalapeno. Inspiration is key here.”

The desire for warmth in winter (from our heaters and drinks) offers retailers a chance to focus on different flavours, stated Mr Consistent’s Kahrissa Bell.

“Whilst we know cocktails and summer are synonymous, at Mr. Consistent we have been working with retailers to embrace winter, rather than escape it! Choose your darker spirits, and match them with some amazing cocktail mixers such as sours - and you have a winning combination!” said Bell.

Premium appeal

There are many ways in which producers can increase the appeal of their premium mixers to the public, claimed Strangelove’s Caitlin Lockie.

“Keep experimenting. Keep things interesting. Keep pushing flavour boundaries. Take risks. Not everyone will like what you do, but at least you aren’t boring,” stated Lockie.

Education, collaboration and accessibility are three main ways for the appeal of premium mixers to be heightened, believes Capi’s Kate Solly.

“Educate consumers about the value and versatility of premium mixers through social media and a content-rich website, including recipes and perfect pairings.

Collaborate with established spirit partners to reach a wider audience and leverage their existing customer base. Make premium mixers accessible through various retail channels, including online platforms, to expand reach and convenience for consumers,” said Solly.