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up a larger portion of the alcohol pie. Globally going back to 1999, avoured beers and beer mixes have enjoyed a CAGR of 11.9% and 8.6% respectively, compared to 2.0% for the total beer market.
RTDs, such as hard iced teas or hard lemonade, are a fun and relatively fresh product type that have successfully broken into the mainstream. While they are still heavily associated with the university-aged crowd in terms of product positioning, more and more adults are embracing the trend. Expect many entertainment experiences to embrace RTDs moving forward.
Hard ciders and radlers continue to experience strong growth across Canada, with several major brands embracing these new product types. While a decade ago, having one high quality beverage may have been key to success, today it’s all about variety. Consumers’ preferences are constantly shifting and evolving, and it is key to have a diverse product portfolio to meet them.
Rosé has experienced a decade long upshot across North America, with the wine always being associated with female consumers. However, Rosé has broken into the mainstream and been able to capture male consumers and become more of a year-round beverage.
In the United States, 56% of Rosé purchases are by men, and sales of Rosé have far outpaced the greater wine industry.9 Rosé has also been able to break into other product categories as well, with avored gourmet gummies to doughnuts, gin, tequila, and even vodka blends.10 The one product category to keep the biggest eye on in this space is Rosé cider, as in the United States these ciders have quickly risen to the top of popularity and sales.11
PERFORMANCE ENHANCING BEER
These trends also extend to the world of low-alcohol and non- alcoholic beverages. According to Global Markets Insights, the market for non-alcoholic wines and beer is anticipated to greatly outpace the rest of the industry over the next ve years.
The rise in expected sales is due to shifting consumer preferences towards healthier products, with more consumers embracing athletic lifestyles.
Many major brands have already introduced beverages in this space, and other players have positioned their products as ‘athletic friendly’ sports drinks. There are some who believe that beer, due to its brous contents and natural ingredients, including B6, B12, and iron, make it the perfect drink to celebrate post-race or workout. Even Olympians are now using non-alcoholic beer as a workout recovery drink.12 This highlights the trend of ‘sport’ beers and expect this to continue into the near future as more and more Canadians embrace beers with far lower ABV than the norm.
THE PLANT MENACE
Every brewer in Canada would be lying if they said that the legalization of cannabis does not have them at least slightly worried. With legalization set for October 17th nationally across Canada, the alcohol industry is in for a shock. How big of an impact on alcohol sales will this once in a lifetime event have remains to be seen, but the overwhelming conclusion among studies and analysts is that alcohol and cannabis are strong substitutes.
Despite the industry threat, every challenge is also an opportunity in disguise. Expect many beverage companies to experiment with cannabis-infusedbeverages,asthe overlap between the two industries isexploredtothefullest.
CONGLOMERATES & CONSOLIDATION
Despite the dramatic rise in the number of unique brewing facilities in Canada, the alcohol space continues to be a game of giants and pawns. International conglomerates run by American or European boards continue to eat up much of the space, with the remaining players fending for the scraps.
Over the past decade, many individual brands have been bought up and purchased by larger players, with few remaining independently owned and truly Canadian. Now, it is important to note that none of this is necessarily bad, and this trend is partially responsible for the rise of the craft beers space, with consumers looking for local, high quality alternatives to more mainstream brands.
However, Canadians have a rich history, and consumer surveys maintain that they still prefer Canadian made beers by and large, despite the interest and excitement towards high quality premium imports.13
YOUR BOTTOM LINE
The alcohol industry in Canada is experiencing new trends and is constantly evolving. Stay on top of the trends and ensure you have beverages available at your facility that truly meet the industry trends and preferences of your golfers. Your bottom line will thank you.
Golf Business Canada
9 http://fortune.com/2016/05/26/rose-sales/
10 https://www.re nery29.com/2018/03/193385/what-is-rose-cider
11 https://www.prnewswire.com/news-releases/move-over-rose-wine-angry-orchard-rose-hard-cider-is-here-poised-to-be-the-years-hottest-drink-300602718.html 12 https://www.npr.org/sections/thesalt/2018/02/24/588417922/olympians-are-using-non-alcoholic-beer-as-recovery-drinks-heres-the-science
13 https://www.thestar.com/news/canada-150/2017/06/26/how-canadian-is-canadian-beer-not-as-much-as-youd-think-canadian-myths.html
28 Golf Business Canada