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Bacardi 2021 Cocktail Trends Report

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Bacardi 2021 Cocktail Trends Report BACARDI 2021 COCKTAIL TRENDS REPORT Presented by Bacardi Limited in association with The Future Laboratory INTRODUCTION MACRO TREND 1: HOME PREMISE : Domestic Drinks : New Drinking Cultures MACRO TREND 2: PLEASURE REVOLUTION : Flavor Sensations : Nostalgic Classics : Traditional Cocktails with a Twist MACRO TREND 3: BAR REINVENTION : The Drinktelligent Generation : Democratizing the Bar MACRO TREND 4: POST-PURPOSE BRANDS : Whole Systems Thinking : Hyperlocal Drinks MACRO TREND 5: MINDFUL CONSUMPTION : Resilience Drinking : Free-from : Functional Elixirs Global premium spirits company Bacardi Limited looks ahead at the key trends impacting cocktail consumption and the spirits business in 2021, in association with The Future Laboratory. This report draws on insights from Bacardi-led consumer and brand ambassador surveys, interviews with the bar and restaurant trade, Nielsen CGA data, and The Future Laboratory’s independent research. MACRO TREND 1: HOME PREMISE DOMESTIC DRINKS restaurants. With many bars now The global pandemic has had a offering online cocktail classes profound impact on the drinks and carefully concocted drinks industry. It has undoubtedly delivered directly to our doors. expedited the at-home and e-commerce convenience culture New launches from the off-trade – we had already begun to enjoy, from ready-to-drink (RTD), cans, bringing more experiences and pouches to drink delivery apps straight into our homes than we – have been hugely successful. could ever have imagined. Cocktails in cans have proved particularly popular. According The pandemic has made home to research by Bacardi, close to the focal point of our social 30% of consumers claim they lives and changed the eating plan to purchase RTD cocktails and drinking landscape forever. or canned spirit and mixers, Initiatives such as virtual happy with portability and convenience hours and live-streamed gigs cited as key reasons for stocking have allowed people to recreate up on a pre-made drink.1 their favorite elements of bars and 25% 131% 20% One in four U.S. respondents RTD cocktails show a rise One in five UK consumers say they are now making of 131% in the U.S. are hosting virtual cocktail cocktails at home. off-trade. parties from their homes. (Bacardi Holiday Survey 2020) (Nielsen CGA) (Bacardi Holiday Survey 2020) “Cocktails in a can are a hot trend, and the lockdowns appear to have increased their popularity as a safe and portable drink option. In addition, cocktails-to-go have really taken off, with bars and consumers embracing the trend at a fast rate as a viable choice for social occasions and this is a behavior we expect to see continue in 2021.” Brenda Fiala - Global Vice President, Strategic Insights and Analytics for Bacardi TOP 5 RTDS IN NORTH AMERICA ARE: 53% 24% 32% 34% 33% VODKA SODA & FLAVORS MARGARITA MOSCOW MULE LOW-ABV COCKTAILS GIN & TONIC (up 10% from LY) (up 38% from LY) (up 19% from LY) (up 5% from LY) (up 1% from LY) TOP 5 RTDS IN WESTERN EUROPE ARE: 56% 35% 31% 27% 23% G&T & TWISTS NEGRONI CLASSIC COCKTAILS OTHER SPRITZES LOW-ABV (up 10% from LY) (up 9% from LY) (up 21% from LY) (down 5% from LY) (up 3% from LY) (Bacardi Global Brand Ambassador Survey 2020) Popular cocktails for takeaway to the level of personalized include familiar and comforting convenience they can indulge in classics such as the negroni, from the comfort of their sofa.3 WESTERN bloody mary, old fashioned, EUROPE and strawberry daiquiri. ‘People Pre-pandemic, e-commerce are looking for security when options failed to catch the they’re ordering food and drinks attention of spirits shoppers, for delivery. You order what you but this channel is now a know you like,’ Robyn Wilkie, widely adopted solution for bar manager of Liquorette consumer purchase behavior. in London, told Imbibe.2 While 2021 will no doubt Research published in the herald the revival of on- European Journal of Social premise consumption – NORTH Psychology shows it takes as consumers flock back to support AMERICA people between 18 and 254 local businesses and with the days to form a new habit – and, vast majority of global bartenders on average, 66 days for a new feeling optimistic about the future – behavior to become automatic. e-commerce has cemented This means that many of these its position as an important shifts are here to stay, with channel for spirits. consumers becoming accustomed ONLINE SPIRITS SALES GREW exponentially early in the pandemic, with partners such as Drizly experiencing 350% growth according to the IWSR, which also forecasts that the e-commerce alcohol channel will be worth $45.5B across the top 10 markets by 2024.4 40% GLOBAL NEW DRINKING CULTURES in the comfort of their own homes. of consumers in the For consumers, the pandemic has Consumers have also taken up U.S. are interested in ushered in entirely new drinking new hobbies and found outlets cultures, ranging from Japan’s for creativity at home, with many on-nomi (online drinking) to adopting a more adventurous MAKE-AT-HOME walktails (cocktails to drink while approach to cooking.This has also cocktail kits, followed by walking) and making cupboard transferred across to our drinking bottled PRE-MADE and cocktails from reserves at home. habits, with brands stepping up to respond to this desire for originality GRAB-AND-GO Cocktail classes and kits have seen and knowledge. Bacardi created a options (both 37%). huge success via highly visual virtual cocktail-making series for its (Nielsen CGA On-Premise Survey) platforms with vast audience reach, social audience, and its brand homes such as Instagram. The appeal of like Casa BACARDÍ in Puerto Rico this DIY approach is echoed in data and Casa MARTINI in Italy continue from Nielsen CGA, which shows that to offer online mixology classes 40% of consumers are interested that guests can sign up for to learn in make-at-home cocktail kits, to create delicious rum cocktails. followed by bottled pre-made and grab-and-go options (both 37%). Cocktail gift packs are set to be big in 2021. Knowing that people With more consumers globally now want easy shopping solutions for making cocktails at home, Bacardi unique gifts this season, and that created a hyper-convenient option they are shopping online more in the UK and Germany, and coming than ever, companies like Bacardi soon to other markets. Only requiring have collaborated with e-commerce the addition of ice and water, Twistails partners such as Cocktail Courier, are innovative pre-mixed cocktail Sourced Craft Cocktails and kits that allow consumers to make ReserveBar to create Bacardi bar-perfect drinks simply and quickly portfolio-specific landing pages. MACRO TREND 2: WESTERN PLEASURE REVOLUTION EUROPE FLAVOR SENSATIONS smoked flavor profiles. According to When Covid-19 restrictions ease and beverage company Flavorman, drinks social life resumes, consumers will seek that burn, cool, tingle and comfort pleasure, nostalgia, and escapism, will be in high demand in 2021.6 shifting their focus from enhancement to enjoyment. During what some are Bitter taste profiles will continue to be predicting to be ‘the second roaring popular due to our palates becoming 20s’, we will return to bars, seeking accustomed to healthier foods such NORTH quality over quantity and perhaps as kale, which is at the more bitter end AMERICA to celebrate after a tough year. It’s of the flavor scale. In the U.S. amaro a sentiment echoed by the Bacardi is riding high as a bitter ingredient Holiday Survey 2020, with many for cocktails, in line with consumers people planning to treat themselves, embracing Italian aperitivo culture. their friends, and family in 2021.5 This trend is confirmed by A desire for extremes will dictate respondents to the Bacardi Global our drink choices in 2021, with Brand Ambassador Survey for sensorial experiences that range the North American market; bitter from the striking heat of chili through liqueurs were strongly trending in DESIRE FOR to super-sweet, sour, bitter and the top five spirits for bartenders. EXTREMES CHILLI through to SUPERSWEET, SOUR, BITTER and 33% 13% 26% SMOKED flavor profiles. (Flavorman) One in three UK consumers Premium-and-above spirits forecasted to More than one in four U.S. plan to treat themselves, increase global volume market share to 13% consumers plan to treat their friends and their family by 2024 as consumers continue to favor themselves, their friends more in 2021. quality over quantity, including cocktails and and their family more in (Bacardi Holiday Survey 2020) high-end sipping spirits.7 2021. (IWSR) (Bacardi Holiday Survey 2020) GLOBALLY POPULAR COCKTAILS NOSTALGIC CLASSICS (Bacardi Global Brand Ambassador Survey 2020) In terms of spirits, various trends Gin, tequila, and rum represent the are emerging among classic best premiumization opportunities GLOBAL LOW-ABV COCKTAILS - 47% categories such as gin, tequila and in many markets, with their role rum, and interesting differentials and importance growing during are arising across markets. uncertain times. After a tough year, classic cocktails can provide OTHER SPRITZES - 45% As staples of classic cocktails a sense of comfort and nostalgia that consumers are replicating at – and none more so than spirit- home, tequila and gin are enjoying forward cocktails. Featuring a base NEGRONI - 41% record growth. The popularity of spirit, a modifier such as vermouth, the margarita is surging in North port, or sherry, and often other America, and global interest in the ingredients such as liqueurs, syrups, negroni and gin and tonic remains or bitters, these drinks were first CLASSIC COCKTAILS WITH A TWIST - 39% high. While interest in rum is driven developed in the 1880s and continue by consumers in Latin America and to offer simple, bold flavors. the Caribbean, the popularity of the GIN & TONIC (AND TWISTS) - 31% spirit soared globally in the summer At the other end of the flavor scale, months when, with the relative 2021 will see a return to light- safety of al fresco hospitality, the hearted drinks and flavor-filled piña colada and mojito topped indulgences, inviting us to lose NON-ALCOHOLIC COCKTAILS - 31% the list of desired cocktails.
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