Something’s brewing in the Canadian beverage industry.
From low- and no-alcohol alternatives to wellness-focused drinks and interesting local craft products, the industry is bubbling with change.
But it begs the question: Should your beverage business capitalize on these trends? And if so, which one is the right fit?
Let’s take a look at these trends and consider how your business may want to capitalize on them.
Trend #1: Low- and no-alcohol offerings
The sober curious movement is gaining momentum, leaving Canadians rethinking their drinking habits in its wake.
According to Statista, Canadian alcohol consumption has decreased by eight percent since 2008, with Millennials drinking less than previous generation and Gen Z-ers reducing their consumption even more. In turn, the sale of low- and no-alcohol alternatives is on the rise.
Quality non-alcoholic options are in demand, and they are here to stay. Canadians are looking for more than traditional soft drinks, they want sophisticated, flavourful alternatives that suit their lifestyle. When they walk into your craft distillery, they want delicious options that show the world who they are and what their tastes are — not just a soda or water.
Make your move:
Expand your product line
Introduce low- or no-alcohol options. Consumers want choices, and this is your chance to offer them. Think about creating drinks that offer the same quality and complexity as their alcoholic counterparts. You may find it helpful to engage an unbiased seasoned advisor to help you examine your existing product offerings to optimize profitability.
Start small
Consider developing a small batch or a limited run of a new product. This way, you can test the market without going all-in immediately, allowing you to gauge interest without committing to large-scale production. This is a great option for small and mid-sized processors, who can use their agility to their advantage.
Focus on quality
Just because it doesn’t have alcohol doesn’t mean it has to be boring. Make sure your low- and no-alcohol offerings are crafted with the same care as your traditional products. Consumers will notice a difference.
Get innovative
Examine your current product lines and identify opportunities for new offerings. Perhaps you can develop a low-alcohol version of your top selling SKU, giving your customers the same great flavour without the added buzz.
You may want to think beyond product development. For instance, maybe you can shift your packaging away from tall cans to something smaller. Or perhaps consider different distribution channels, like getting your non-alcoholic products onto grocery store shelves.
Trend #2: Functional ingredients
Consumers are more health-conscious than ever. They’re reading labels and looking for drinks that do more than quench their thirst — it’s a vessel for good-for-you options like protein, collagen, no sugar, and other clean ingredients.
These functional beverages are designed to provide wellness benefits, but they also have the potential to introduce your brand to a whole new market while providing additional value to your existing consumers.
Make your move:
Focus on flavour
Wellness ingredients are great, but it doesn’t matter if your drink doesn’t taste good. Make sure any functional product offering is both delicious and full of benefits.
Clear communication
Consumers want to know what they are getting, without a long laundry list of hard-to-read ingredients. So, focus on clearly communicating the wellness benefits associated with your beverage. This is also an opportunity to communicate your values to consumers, aligning yourself with what they care about. This helps build affinity and loyalty towards your brand.
Innovate with packaging
Attractive, functional packaging can make your product stand out on packed shelves. You may even want to consider eco-friendly options to further appeal to wellness- and eco-conscious consumers. For instance, many consumers are looking for grab-and-go convenience, so slim aluminum cans may be more appealing than glass bottles.
Educate your audience
Use your marketing channels to teach consumers about the benefits of your functional beverages. This raises awareness for any new products, and further aligns your brand with their values.
Trend #3: Demand for local products
Canadian consumers love local. They want to know the story behind your beverages and feel good about supporting your local business. This trend encompasses both alcoholic and non-alcoholic options, but one thing is clear — they want a drink that’s unique and high quality.
Make your move:
Innovate locally
Use your roots to your advantage. Experiment with small batches and interesting flavours that reflect your community. You may even want to consider sourcing local ingredients, like botanicals or berries, to give your beverages a little extra community flair.
Tell your story
Share the story of your brand and connect with your customers on a personal level. Consumers are more likely to support brands they feel a connection with, especially if you share the same community.
Collaborate with local partners
By working with local vendors, farms, and retailers, you can create a truly local product.
Host events
Organize tasting events, tours, and community gatherings to build a loyal following. For instance, a large, family-style table in your brewery could double as a meeting place for local groups. These events act as a touchpoint between your brand and consumers, and helps build brand loyalty.
Embrace the future
The Canadian beverage industry is full of change and opportunity — all you need to do it tap into it.
However, it’s important to make smart, authentic choices that ring true for your brand. Maybe it doesn’t make sense for you to produce a drink full of functional ingredients, but your brand could produce a non-alcoholic craft soda that feels authentic to what your business stands for. Identify the trends that work for you.
You don’t have to do it alone
With our help, you can navigate the challenges of the evolving beverage space and capitalize on emerging trends. Reach out to our team today to learn more.