Gen Z’s Impact On Post-Pandemic Alcohol Consumption

Where & how they spend their money is changing the industry.

There is a defined line between “pre-pandemic” and “pandemic” life. Everything as we knew it came to a screeching stop, as businesses shut their doors and people sought at-home entertainment options instead. However, the lines are becoming blurred as we move into “post-pandemic” life, especially when it comes to consumerism and the ways in which we purchase and consume adult beverages – – and no one is more influential in setting and keeping these trends than Gen Z. Because the pandemic set in during what would typically be the most social years of their lives, they quickly made being “socially distant” as social as possible. Rather than spending their prime locked in isolation, they influenced the market in new ways – ways so impactful that they don’t seem to be going anywhere any time soon.

Drizly, North America’s largest e-commerce alcohol marketplace, recently released their 2021 Consumer Report, in which they revealed many interesting findings regarding how people plan to purchase and consume adult beverages post-pandemic. Gen Z, fresh to the legal drinking scene, is making a distinctive mark on this industry, paving the way for post-pandemic alcohol consumption and deciphering which pandemic trends will carry on. 

The Consumer Report highlights a survey of “over 1,000 Americans of legal drinking age, independent of Drizly’s customer base, in late June 2021 on a range of topics, from their beverage choice inclinations for this summer and fall (and what influences those choices), to how newfound interests at home stand to impact consumption occasions and locations longer term, and how they are purchasing alcohol.”

The findings show that although the younger drinking population plans to return to restaurants and bars, they also plan to continue drinking at home, especially while cooking and while watching TV and movies, one of the reasons why being because it is less expensive to drink at home. And with the ease of online ordering, a result of the pandemic with which many became comfortable, the ability to enjoy beverages at home is even more stress-free.

Gen Z’ers are not only changing where they will spend a majority of their time drinking, but also what they will be drinking. The current drink of choice is hard seltzers, with Ready-to-Drink (RTD) cocktails and other canned beverages also gaining popularity and stealing a bit of the seltzer’s thunder.

But this generation doesn’t only care about convenience and cost; they are also considered “conscious alcohol consumers”, and they pay attention to their drink ingredients, how they’re made, and by whom. This younger generation focuses on health in most aspects of their lives, which translates into them also wanting to choose the most healthful option when it comes to adult beverages. Factors such as minority ownership, sustainable practices, and “healthy” ingredients are all important to Gen Z, as well as family ownership, size, and local ownership.

As a generation known for stating their beliefs and living by them, Gen Z is combining the best of the pandemic drinking scene with the more traditional one, and the market is hearing them – and responding.

 

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #6.

 

The Fine Line Between On & Off Premise

Over the last year, a bill was passed around the greater Massachusetts area, allowing restaurants to offer beer, wine, and cocktails to go.

Flashforward to June 2021, and the debate continues whether or not the emergency provision should continue. This month, lawmakers confirmed restaurants’ and bars’ continued ability to sell cocktails to go through until May 2022. While getting booze at just any store may not be an option, any restaurants are!

“DiZoglio, a Methuen Democrat who has pushed for the takeout drinks measures as a way to help restaurants recover from the COVID-19 pandemic and associated shutdowns, filed a bill (S 196) that would extend the authorization for to-go beer, wine and mixed drink sales until June 15, 2023 — two years beyond the end of the COVID-19 state of emergency.

Another bill (S 247), filed by Sen. John Velis, would permanently allow establishments with liquor licenses to sell beer and wine to-go.”

While this news is crucial for restaurants in order to stay afloat, it closely threatens the laws around alcohol consumption.

As Robert Mellion of MassPack put it: there are consequences when it comes to enabling serving alcohol off the premises. Not only that, but it is pinning on and off premise sales against one another, leading to vertical integration. Understandably, allowing consumers to carry premade cocktails out of an eating establishment does pose as an issue, but does it raise the likelihood of a customer choosing to crack open a tall boy upon leaving a liquor store? While laws do prohibit this, the same goes for restaurant-goers.

On the opposing side, Diana DiZoglio says, “the only other person to testify on to-go drinks legislation, pushed back against Mellion’s testimony, calling it “disgraceful” to “shift the blame for substance use disorder” onto restaurants.”

“I think if the gentleman before me has some challenges with alcohol being used in the commonwealth at all, and he’s serious about that, he probably wouldn’t be representing the package store industry and trying to monopolize the sale of alcohol in the commonwealth,” she said.

DiZoglio encourages engagement amongst local restaurants to demonstrate the significant role this law plays in enabling their business. She highlights, “how important this is and how much revenue it can generate, how much it’s been helping them, and how much residents actually are enjoying this new addition to our restaurant community.”

Balancing the scales between on and off premise is not an easy task: a steady give and take when it comes to law and supply, versus monetization and demand.

Although DiZoglio intends to see this become permanent where the scales will require more permanent stability, the initial reasoning behind this law was to stabilize these businesses’ operations and keep them running. There is no competition between on and off premise if one of them is nonexistent.

Most importantly, “[These restaurants] have been telling us how much of a tremendous impact this has had on them,” she said. “They have told us that they’ve been able to keep employees on the payroll, keep their lights on, pay their rent, pay their back rent.”

Priority lies among the on and off premise laws, keeping citizens safe while keeping businesses running.

 

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #5.

 

The Advisor Magazine: Issue #6 –

With summer heating up, it seems people are even more open to getting back to it as our economy recovers.

In Issue #6 of The Advisor we discuss:

-How & where Gen Z is shaping the alcohol industry;

-Helping buyers get the upper hand;

-Top 10 trends for On-Premise recovery; and more!

 

This issue looks at the impact of the Fourth of July, how On-Premise is bouncing back (or not), and gain insights for buyers from our very own Ben Jerrom.

To access Issue #6 of The Advisor Magazine – click here.

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The Advisor Magazine: Issue #5 –

As things heat up for Summer, people flock to local patios, beaches and resume inter-state travel throughout the country. Sparks are flying with local and state-wide alcohol legislation debates in Massachusetts.

In Issue #5 of The Advisor we discuss:

• The current status of on & off-premise liquor laws;

• Market trends as summer heats up and kicks off;

• Liquor License Advisor’s very own Expert Spotlight: Glenn Lawler weighs in on the liquor world today!

 

This issue takes a look into the longevity of pandemic vs. new era trends. How laws are changing, life is transitioning, and the liquor industry is expanding & evolving.

To access Issue #5 of The Advisor Magazine – click here.

 

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