Viewpoint: Why alcohol brands can raise the bar

Pubs and bars can look to their suppliers for promotional help in tempting their customers back to the bar, says Matt Waksman

There’s no business like show business, but there’s also no business like hospitality. Seasoned veterans say it’s in your blood. There’s something very human about creating a space where people come together, let their guard down, talk to strangers and even fall in love. It’s not your average product.

In recent years the sector has survived the strongest Covid restrictions and, even when it eventually opened its doors, was hit by a talent crisis it had to come together to fight.

Hospitality’s leading lights now believe the industry has everything to play for, but it’s got to raise the bar. As Sarah Willingham, founder and chief executive of hospitality operator Nightcap, says, there will be “no place for the average” in 2024. There are three key trends that hospitality operators – and the brands they’re stocking – must now consider to drive sales and grow audiences in the coming year.

Gen Z have come of age

A lot has been said about Gen Z quitting alcohol in recent years, but this is only half the story. Rob Pitcher, chief executive of Revolution Bars Group, points out that 18-30s were the first to pack late-night venues once Covid restrictions lifted and they had money in their pocket. Then, when the cost of living crisis hit, the price of a night out was fighting against paying for essentials such as mobile phone contracts.

With the Living Wage set to increase to £12 an hour, Pitcher agrees this could help towards Gen Z’s return.

Capturing the next generation of drinkers hinges on brands and venues partnering with each other to build promotional deals that allow Gen Z the night out they want, but might not be able to afford. For example, Revolution and Red Bull joined forces to create a brand-led ‘house party’, a promotional themed night that combined price and experience to deliver value – and packed their venues out.

Coaching people off the couch

Hospitality now is less about engineering niche experiences and more about building on what’s already offered.

Kenny Blair, co-founder and managing director of independent restaurant and bar operator Buzzworks, agrees: “You’ve got to create a reason to come out, whether that’s amazing food or a fantastic atmosphere in a pub, great craic or competitive socialising. In terms of hospitality, we’ve got a responsibility to give people something better.”

This is the playbook that Peroni took to raise its profile in festivals. It created a ‘beer butler’ to deliver drinks to customers, elevating the experience and solving a pain point for drinkers. Alcohol brands and hospitality operators thinking creatively together to offer something special will be music to everyone’s ears.

Day-to-night drinking

Across the pond, 6pm is the new 8pm, Blair points out. Even in the UK, our hours are changing and extending, but they haven’t set into an entirely predictable pattern yet. Some operators report one busy late night per weekend rather than two, and many are experiencing a daytime drinking culture that feels more late night in its vibe.

Willingham notes that there’s a desire for daytime packaged experiences with drinks and entertainment. People do want to go out, but they also want to know what they’re getting and they want to bed into it for a few hours. Everyone wins here: increased footfall for venues and more visibility for brands.

The weekend daytime cocktail is a battleground worth winning – and beer brands should also start considering their daytime experiences ahead of summer to offer packaged experiences so that it’s not just the spirit brands getting all the daytime fun.

Pressure is needed to create a diamond, and although it faces big challenges, the industry is determined to sparkle. There are big gains to be made in the next 12 months with creative forward-thinking and consumer-first approaches to better serve everyone’s needs.

Matt Waksman is head of strategy for advertising at Ogilvy UK