5 Challenges the Alcoholic Beverage Industry is Facing

Whether you are a wine, beer, or spirits business, there are a few key trends that are posing as challenges in today's market. These shifts are not just affecting us State-side but are present on a global scale. There is a lot of influence from our European neighbors and their attitude toward drinking that will impact how U.S. consumers purchase their beverage products. Additionally, legislation is developing every day that stillers and distributors must comply with in order to reach their customer. We've broken down some of the biggest challenges that the alcoholic beverage industry is facing in 2018. 

1. Developing an Online Presence

The distribution of wines, beers, and spirits is steadfast in tradition. While most markets are heading online to reach a broader range of consumers, the alcoholic beverage industry is still trying to carve out their unique stance. Many brands can forge ahead alone, or they can partner with online distributors to get their name out there. While the U.S. online wine and spirits presence pales in comparison to our foreign neighbors, it looks like we will have to adopt a luxurious feel to the online offerings in addition to convenience if we want to be competitive.

2. Consumers Want Ethical Brands

Alcoholic beverages transcend both genders and all ages—as long as they are 21 and up. Consumers are more conscientious and are looking for their products to be gender-neutral. We've already seen this trend come to fruition with Johnny Walker introducing a new logo that depicts a woman. Drinking and its story is no longer a man's game. If companies want to stay relevant, they will need to tailor their campaigns to be all-inclusive and broaden their demographic range. 

3. Alcoholic Drinks Have More Competition

New legislation is developing every day across the United States making it legal to sell cannabis. This rising tide is growing in popularity and hampering the growth of the beverage industry. Fortunately, females, who represent a substantial portion of consumers in the US beverage industry aren't leading the way down this new green path. They still favor a wine or spirit. If beverage companies want to stay competitive and relevant, then they need to heed the gender-neutral advice and focus their campaigns on attracting more female consumers. 

4. Working within Regulations

Regulations are single-handedly the biggest challenge for any wine, beer, or spirits company who chooses to trade within the United States. There aren't just federal laws, but there are also state laws you must comply with to produce and sell your product. In addition to meeting with both state and federal legislation, there is also the concern about taxation. This again differs from state-to-state further adding to the complexities of trying to distribute your product. 

5. Moderation and Smaller Portions

With cannabis consumption on the rise and becoming a significant competitor, the beverage industry will need to consider how it packages and mindfully presents its products. Cannabis is touted as a healthier alternative. If beverage companies want to be taken seriously, they will need to take measures that incorporate smaller pack sizes or serving options. There is also movement in the way of moderation. Offering smaller product sizes will help balance the product desire for both the newer and more mature consumer. 

Is your business looking for a way to beef up its marketing strategy? Brindiamo Group has been working with beverage companies across the globe to enhance their presence and become more competitive in the market. Visit our website to learn more about how we can help assist and develop your business to reach your goals. 

Jeffrey Hopmayer