Moderation | KRG Hospitality

This Year’s Big Trend: Moderation

by David Klemt

Beverage-top media platform Ripples is reporting 2022’s big drink trend, focusing heavily on Gen Z imbibing habits.

The unique company produces devices that make it possible to print images atop drinks. With beverages of all types as their focus, the company is a great position to study drink trends.

Interestingly, Ripples focuses primarily on Gen Z drinking habits. However, the company’s data identifies an intriguing trend that transcends a single generation.

Let’s jump in.

Zero-proof Beverage Growth

At KRG Hospitality, we appreciate numbers; we’re a data-driven agency. Well, amongst all the stats Ripples latest findings reveal, two are massive.

First, in comparison to 2019, zero-alcohol products are up 166 percent. Second, the non-alcohol category is growing four times faster than its low-ABV counterpart.

Another impressive number? Non-alcohol spirits have grown by over 113 percent since 2020.

Per Ripples, Gen Z is driving the growth in the no-alcohol space. According to the beverage-tech company, this is likely due to social media presence.

I’m sure you read articles at least from time to time about Gen Z social media habits. Those written by their older counterparts make it seem like Gen Z doesn’t understand the risks of recording their every action.

Well, it’s highly likely that much of Gen Z would rather not have their drunken shenanigans on display on every social platform.

Values Drive Purchase Decisions

Beyond risk aversion, Ripples identifies values as key to Gen Z purchase and consumption decisions.

Generally speaking, members of Gen Z value transparency and authenticity. Brands that share those values are more likely to succeed with Gen Z.

And, again, speaking broadly, smaller, independent brands are often perceived as more transparent, authentic, and responsible. Large, mainstream brands are often seen as anything but green and responsible, never mind transparent or authentic.

Ripples posits that small indies aren’t encountering daunting barriers to entry. So, small-batch, craft non-alcohol brands are apt to find Gen Z support.

Craft sodas, RTDs offering health benefits, and zero-proof cocktails in cans or bottles are flooding the market. And they’re finding success. In fact, according to Ripples, RTD sales are up 400 percent on Drizly since 2019.

The Big Trend

If you’re a listener of our Bar Hacks podcast you’ve likely heard our episodes with David Allison. If you haven’t heard them, they’re episode 46 and episode 67.

As the founder of the Valuegraphics Project, Allison isn’t a fan of focusing on demographic stereotypes. Instead, he recommends a focus on values in conjunction with demographic and psychographic data.

In part, the Valuegraphics Project approach encourages business owners and operators to identify and target their customers’ values. This is, according to Allison, far more powerful than focusing on age and sex. As important is the fact that demographics tend to divide us, and stereotypes are dangerous.

So, he and the Valuegraphics Project team probably wouldn’t like all the focus on a single generation in this article and Ripples’ findings. Well, there’s some good news and it pertains to what’s likely this year’s biggest drinking trend.

Across all generations, one drinking trend is common: Moderation. An interest in no- and low-alcohol beverages is shared among all generations.

In fact, according to Ripples, 78 percent of consumers purchasing zero-proof drinks aren’t doing so exclusively. These consumers are still buying they’re favorite full-alcohol beverages.

Takeaway

Leveraging the moderation trend is fairly simple. The growth of all zero-proof categories means operators can succeed with alcohol-free spirits, beer, and wine.

RTD cocktails—full-, low- and zero-proof—are selling very well and work in restaurants and bars.

In short, ensure you have low-ABV and zero-alcohol versions of your full-ABV drinks on your menu. Include these in a dedicated non-alcohol section.

Operators don’t need to be afraid of guests drinking more moderately. The stereotype that guests who choose zero- or low-proof drinks are bad for the bottom line simply isn’t true.

Image: Chris Curry on Unsplash

Moderation Movement: Damp January

by David Klemt

Move over, Dry January, there’s yet another alternative to “traditional” alcohol consumption at the start of a new year.

As we know, Dry January consists of abstaining from drinking any alcohol for 31 days. Also known by the awkward name Dryuary, this annual practice continues to gain popularity.

However, not everyone is comfortable with this all-or-nothing approach. Instead, there are those who want to try Damp January.

What is It?

You’re likely already guessing how Damp January works. Rather than abstinence, participants practice moderation.

Generally speaking, that’s it—it isn’t a complex concept. However, there are many approaches to Damp January.

Some people set hard limits for themselves. For example, a wine drinker may resolve to only consume three glasses of wine per week. A beer drinker may choose to only have two beers from Monday through Friday.

Another approach is to determine how many full alcohol drinks one consumes on a weekend. Then, they decide to reduce that consumption by 50 or 75 percent.

However one chooses to participate in Damp January, the goal is reduction and moderation.

Is this a Fad?

In a word, no. Whatever label is put on it—moderation, sober curious, reduction—many consumers are looking to drink less alcohol.

Dry January was once seen as a fad. Instead, it’s safe to say it’s much closer to being mainstream.

Of course, time will tell if Damp January will earn as much buy-in as its abstinence-focused counterpart.

However, it’s easy to see how Damp January may become long-term behavior for some consumers.

What Does this Mean for Operators?

There are those who simply want to be more mindful of their alcohol consumption. Their goal isn’t to stop drinking alcohol, it’s to make lifestyle changes and reduce their drinking.

Sift through social media, forum and blog posts, and articles on the subject, and you’ll come across interesting motivations for moderation. In many cases, people point to alcohol playing a role in their social lives.

Of course, that means drinking with friends, coworkers, and family members at restaurants, bars, and nightclubs. They simply want to consume less alcohol per visit.

This doesn’t have to present as a threat to operators. The increasing popularity of alcohol-free beers, zero-proof spirits, and low-ABV options can prove profitable for a restaurant or bar’s bottom line.

Guests who making the decision to not consume alcohol or seek out low-proof options still want to socialize. They still want to visit bars and restaurants. More importantly, they want to feel comfortable in their choice.

So, it’s up to operators to ensure Damp and Dry January guests don’t feel alienated or mocked for reducing or abstaining from drinking. Providing low- and zero-proof drinks—and highlighting them on menus—shows these guests they’re welcome and supported.

Additionally, it’s crucial that these guests receive the same level of service and presentation as other people at your bar or restaurant. A little thought to make sure they’re treated the same will go a long way.

Image: Mathew MacQuarrie on Unsplash