By: Tara Jewell, Marketing Insights Associate
In this article, you will find:
- How this cultural shift will impact the beverage industry
- What operators are doing to seize on the opportunity
- Why not ordering alcohol doesn’t have to mean a lower tab
Dry January is a popular time to dip one’s toe into sobriety. Dry January, of course, means cutting back on alcohol in the month of January, usually in response to an overindulgent holiday season.
For some folks, however, Dry January turns into the commitment to full-blown sobriety- or at least a “damp February” (and March? And April?). Studies show that people who participate in Dry January often drink less in the long run and make other sustained changes to their drinking habits.
With the U.S. Surgeon General’s recent warnings of the effects of regular alcohol consumption, younger people especially have re-committed to cutting back on alcohol, if not cutting it out entirely. In fact, a 2023 Gallup poll showed that, among all Americans, fewer than four in 10 young adults (38%) now appear to be regular drinkers.
It really shouldn’t come as a surprise that anyone is choosing to consume less alcohol. No one misses the sting of a hangover, and once you get used to the idea that alcohol isn’t required for socializing, you have plenty of incentive to keep your sober streak going. And let’s face it; there are now so many legal ways to catch a buzz (hello, Cali Sober), alcohol simply isn’t the only thing on the menu of substances that will help you chill out.
What It Means for Operators
A cultural shift like this has significant implications for the beverage industry. Operators must now elevate their zero-proof menu options. It is a must; the alternative is to be faced with a huge number of water-drinking customers ending the night with a much lower tab. The key to a successful alcohol-free menu development is to create irresistible options that are a little indulgent and push flavor boundaries. When dining out, remember that your younger customers appreciate a fun beverage, and they’re willing to pay for ones that really deliver something unique.
At Leahy, our experts have developed a winning formula for zero-proof offerings. Ben Smith, our R&D Manager, recommends a simple formula… something fizzy with something sweet, ideally in a bold color. Shake well and pour over ice. I’d add to that a pretty glass and a fun garnish…just to encourage social sharing. If you’ve chosen a very sweet base, include a splash of something to prevent your creation from being too cloying… lemon juice is a good bet, but try bitters if you’re feeling adventurous.
The zero-proof cocktail doesn’t always have to be a complement to a meal, and as the trend grows, we think you’ll be seeing them in all day parts and segments. We love the idea of a QSR with a drive through offering a ‘zero proof happy hour’ deal. Infuse it with B vitamins or use a green tea base for energy. Drivers will stop by in the evening for a little jolt to get them through their commute home.
Our team of beverage innovation experts at Leahy often collaborate with customers to help them develop distinctive, profitable alcohol-free options that resonate with today’s consumers. From formulation guidance to trend insights, we’re here to support your success in this growing market segment.
Contact us today to explore how we can help you create memorable drinking experiences for all your customers.
Sources:
https://news.gallup.com/poll/509690/young-adults-drinking-less-prior-decades.aspx
https://news.gallup.com/poll/509501/six-americans-drink-alcohol.aspx