Drinking less but “better”
It would be good to focus a little more on the major trend called “premiumization”. Premiumization can be seen as the buzz word of the last decade. This drinking less but “better” trend results in lower sales volumes but higher spending and is therefor a key factor in the development of the drinking industry.
Although it might seem like premiumization is sprang to life a couple of years ago, nothing is less true. The fact is that it has long been a key driver in the spirits sector but it's going through a major change at this very moment: it seems like future brands will need to demonstrate far more depth to their story than before since consumers knowledge increased. Thinks like tradition, provenance and a story consumers can relate to are examples of the depth that could be demonstrated.
Especially the global recession has left its mark on consumers and, in particular, on how they make "premium" purchasing decisions. “Mainly the millennials that became adults during the recession became far more conscious of how and where they spend their money. It has made them risk-adverse and keen to seek out ready-made solutions that make their lives easier and cheaper to navigate" according to industry commentator Richard Siddle. Also It has made them looking for treats because the though years of the recessions have made them appreciate far more the experience and the opportunities to treat themselves, their friends and their family.
So even though premiumization has always been there, it’s now going through a major change of mindset and therefor bigger than ever. “Treat-seeking” became a big driver of the premiumization trend and therefor premium brands are marketing themselves as treats or “something for a special occasion”.