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Bacardi 2020 Cocktail Trends Report

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Bacardi 2020 Cocktail Trends Report BACARDI 2020 COCKTAIL TRENDS REPORT Presented by the Bacardi Cultural Insights Network. The Bacardi 2020 Cocktail Trends Report is a curation of trends based on research with brand ambassadors, the trade and multiple third-party research experts. We have identified a set of new and evolving trends that we see as a reflection of what’s creating excitement this year for bartenders and consumers. NO/LOW IS GAINING TRACTION GLOBAL More and more people are choosing to enjoy amaros, sherries and vermouths. Vermouth a lighter drink for many reasons including cocktails are emerging amongst the Top 5 LOW-ABV ARE THE MOST lowering calories, trying something different cocktails and consumers are demanding and a growing focus on mindful drinking. flavorful alternatives to continue socializing. ENGAGING COCKTAILS This doesn’t mean people are willing to We are seeing excitement by bartenders sacrifice on flavor or experience. Low-ABV around drinks involving low-ABV colorful TO INFLUENTIAL offerings are growing in sophistication and vermouths like MARTINI® Fiero that provide BARTENDERS are seen as additions to a bar rather than a the ability to make a colorful, flavorful, and all replacement for full-strength cocktails. This natural Spritz. trend goes hand-in-hand with the increased interest in naturally low-ABV fortified wines, 8% 42% 55% expected CAGR online searches with the of the bartenders in New York, LA growth in low-alcohol word ‘mocktail’ are up and London believe the no-and beverages market (Google Trends, 2019) low-alcohol trend will continue to during 2017-2021 grow within the next 12 months (Technavio, 2017) (Distill Ventures, 2019) IN RUSSIA SPRITZES ARE TRENDING (77%) and are in second in Western 83% 20% 59% Europe (48%) after general low-ABV cocktails (50%) of bartenders cite that on-premise consumers claim bartenders interested in bitter Low-alcohol drinks are hot to typically consume NoLo liqueurs globally (Nielsen CGA On-Premise User Survey, offerings (Global Brand Ambassador Survey Fall 2019 ) (Nielsen CGA On-Premise U.S. Survey, (GBAS), 2019) Fall 2019 ) CONSUMERS CONTINUE GLOBAL TO DRINK BETTER Premiumization remains to be one by the value-driven millennial of the single largest market drivers consumer that wants to demonstrate across most developed economies. their beliefs through inconspicuous Across almost all product categories consumption. In contrast, the second two strands exist that serve different driver, absolute luxury, is a marker of purposes. The first, affordable luxury, exclusivity. It has transformed from is driven by the rise in the middle overt displays of money to consumers class. More consumers now have demonstrating knowledge, cultural the disposable income to elevate capital, and exclusivity, which make everyday moments. Despite political great stories. This strand embodies uncertainty, consumer confidence is the true ‘rich person’ who still wants rising and consumers are exploring to demonstrate wealth but through new flavor profiles and categories. less tangible, ‘meaningful’ means. The need for knowledge and In alcohol, it plays out in a stronger transparency around how and what desire to try and buy goods that have we consume has also driven the an interesting story, provenance, rise in premiumization, motivated craft credentials, and clout. 5% 2.5% 47% growth in overall luxury rise in sales of premium consumers already do or would market in 2018 spirits and a fall in standard upgrade to a better-quality spirit (Bain & Company Luxury Study, 2018) spirit sales of 1% in 2017 and mixer in the UK (LWC Drinks UK, 2019) (CGA Mixed Drinks, Q1 2019) GLOBAL BARTENDERS SEE ALLURE IN AGED RUM Cross- category competition and consumers’ premium demands have pushed producers • Dark Rum (43%) to create a more diverse, innovative rum category. In the past five years, UK rum sales • Tequila (40%) have grown 15% by volume and 32% by value • Gin (37%) (according to the 2017 WSTA Spirits Report), and have now broken £1 billion ($1.3 billion). • Mezcal (29%) Premium rum represents 15% of the total rum sector, and the segment is continuing to grow. • Vermouth (21%) Dark rum is the category that is premiumizing (GBAS, 2019) the most. 43% 6TH 2ND bartenders globally top spirit of top premiumizing voted dark rum as the interest in the U.S. category in Russia top spirit to premiumize (GBAS, 2019) (GBAS, 2019) (GBAS, 2019) NATURAL INGREDIENTS GLOBAL ARE HERE TO STAY With rising awareness about food and where demanding balanced, natural, fresh, and it comes from, people are seeking the safety healthy ingredients. From earthy ginger to of natural ingredients that they can recognize floral lavender to citrus grapefruit, brands are (and pronounce). Heavily sweetened, celebrating these attributes and are helping crazy-colored beverages are no longer a consumers feel like they are making the best part of the daily routine and support for (and most natural) choice. sugar taxes reflects how people are instead 62% 45% 58% 15.3% of U.S. consumers berry is the top flavor profile zero-waste ingredients are the CAGR growth for are seeking natural of consumers when drinking leading bartender interest in Europe’s organic wine beverage options cocktails in the UK North America and the UK consumption between (Beverage Industry, 2018) (CGA Mixed Drinks, Q1 2019) (GBAS, 2019) 2012-2017 (IWSR, 2019) 61% 18.5% 46% of Britons would like to see a increase in organic spirits of millennials priority when it comes greater range of soft drinks sales over last three years to food is nutrient density, no targeted at adults, while serving (LCBO Statistics, 2018) artificial additives (40%), more health-conscious lifestyles organic foods (39%), and plant (CGA, 2019) based (37%) (Sweet Earth Foods, 2019) EXOTIC INGREDIENTS GLOBAL CONTINUE TO FASCINATE We are living in a moment where our ingredients also provide this. access to the global pantry seems Additionally, with the rise of flexitarians to be forever increasing. In today’s and vegans, consumers are looking connected world, it is easier than overseas for exotic, functional ever to learn about other cultures and ingredients to excite their plant-based their cuisines. Innovation has seen diets and meet nutritional goals. Exotic brands take cues and ingredients ingredients allow the opportunity for from other countries to excite the brands to connect with adventurous consumers that are uninspired by consumers. They are curious about the status quo. Consumers are exotic flavors, new food experiences, looking to signify their wealth through and the unique story behind the social capital. Exotic, exclusive product. 42% 58% 32% say that exotic fruit of people like to experiment fresh fruit and berries cited flavors are trending and try new and different as ingredients increasingly (Sparks & Honey, 2018) spirit flavors appearing in cocktails (CGA Mixed Drinks Report UK, 2019) (GBAS, 2019) TOP INGREDIENTS OR MIXERS OF INTEREST Zero-Waste Ferments Coffee Flavored Herbs/ Ingredients (E.g. Kombucha/ Tonics Herbal Kefir) 58% 51% 39% 35% 32% Aromatic/ Local and Teas Coconut Flavored Flavored Fresh Fruit/ Water Soda Bitters Berries 32% 31% 29% 27% 25% (GBAS, 2019) WEUR SAVORY COCKTAILS ARE IN STYLE The culinary cocktails trend borrows offer cocktails as individual courses. NAM methods and techniques from the kitchen This movement is also seeing bartenders and champions fresh, seasonal, herbal, experiment with savory and exotic flavors and savory ingredients. Advocating to match with tasting menus including the farm-to-table movement, culinary harissa-infused mezcal and plantain- cocktails offer a premium experience. infused scotch. Some progressive bars are starting to ASIA 91% 40% 68% of bartenders are using of chefs see smoky of American Culinary vegetables in their flavors influencing Federation members cocktails menus in 2019 rated culinary cocktails (Tales of the Cocktail, 2018) (Kimpton, 2018) as a “hot trend” in 2018 (National Restaurant Association, 2018) RISE OF THE GLOBAL READY-TO-DRINK (RTD) The rise of ready-to-drink (RTD) and ready-to- to go camping. Due to improved packaging, serve (RTS) cocktails and the premiumization brands have transformed the canned of them can be attributed to the overarching cocktail to be an upmarket option. There is also demand for consistent and convenient well- movement into using glass and plastic bottles crafted cocktails beyond the bar. Pre-mixed to create an even more sophisticated and cocktails are moving away from artificial colors “instagramable” look. RTD options also open and favoring premium ingredients to meet the opportunity for creative experiences such demand for sophisticated on-the-go options to as kegs on tables and gas infusions. take with them to festivals, to the beach and 26% 33% increase in pre-mix cite convenience as top can shoppers reason to buy RTD drinks (Kantar UK, 2019) (Bacardi Global UK Shopper Segmentation Study, 2018) 39% 26% of bartenders are noticing increase of vodka soda & more G&T (and twists) RTD/ flavors RTDs in North America RTS products (GBAS, 2019) (GBAS, 2019) HOME ENTERTAINMENT GLOBAL CONTINUES TO DIVERSIFY Today people want the luxury of both learn a new skill from a YouTube® video, spontaneous intimate get-togethers as it has never been easier for consumers to well as planned parties at home. With craft their own sophisticated cocktails in the convenience, cost and time being major comfort of their own home and consumers factors of consideration, home entertainment are looking for tools to do this. Home is becoming
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