Getting to Know the Modern Consumer

Kleos Mastiha (0:10)

My name is Effie Panagopoulos, the first Greek woman in history to start a liquor brand. I’ve been in the industry for going on 25 years. My brand is called Kleos, a Greek liqueur made from a superfood called Mastiha. Today, I’m talking about women and Gen Z, who both happen to be very strong and avid consumers of my startup brand. We’ll explore changing demographics, the rise of the “she-economy,” and the 18-to-25-year-old consumer in the beverage space.

Kleos Mastiha (0:53)

“We live in a world that is owned by men, designed by men, managed by men, yet we expect women to be active participants in it.” This quote is from the book What Women Want by Paco Underhill, whom I met while doing a liquor store tasting in Manhattan. The best way to get in touch with your consumers is doing your own store tastings. If you can’t stomach standing in a liquor store on a Friday night selling your own product, you don’t belong in this business. Underhill runs a consumer insights company called Envirosell that monitors real retail behavior, revealing, for example, that Jack Daniels buyers b-line straight for their bottle and exit, whereas women and Gen Z browse far more dynamically.

Kleos Mastiha (3:46)

Historically, liquor marketers used three “influencers” to appeal to women: “white, light, and bright.” But the unsophisticated “make-it-pink” marketing has to end. Even major companies with mega-budgets fail when they pander. In 2005, Bacardi spent $10 million launching Bacardi Light Island Breeze with Kim Cattrall. On Sex and the City, the characters embraced indulgence—Cointreau grew 25,000 cases in one year because of Cosmopolitans. Yet Cattrall told the press, “I’m not a big drinker, and when I do, I get a headache.” Total disconnect. Similarly, Diageo’s “Jane Walker” campaign faced backlash for implying Scotch was intimidating to women, despite 30% to 40% of Scotch drinkers already being female.

Kleos Mastiha (8:40)

Meet the modern woman: average age 38.5, married, mother of two, and primary breadwinner. Women represent 51% of the U.S. population, $7 trillion in purchasing power, and 85% of consumer spending. Women now outnumber men in the U.S. college-educated labor force (50.7%), and by 2030, Morgan Stanley predicts 45% of U.S. women of prime working age will be single. Women are educated, earning, living longer, and serving as key influencers in their social circles who share products via home entertaining.

Kleos Mastiha (10:37)

A survey by Kearney of 1,000 women showed that over 70% value female-focused strategies: pro-female marketing, products designed for women, female-founded companies, charity contributions to female non-profits, and executive female leadership. Furthermore, women and Gen Z express activism through purchasing power; women across all income levels report a willingness to pay a premium for brands supporting the advancement of women. To win with female consumers, engage in personal interactions, maintain crystal-clear value propositions, avoid pink stereotypes, and foster genuine, authentic community connections.

Kleos Mastiha (16:35)

Turning to Gen Z: they are the most diverse (48% racial or ethnic minorities) and educated generation yet, and the first true digital natives. While headlines claim Gen Z doesn’t drink, trends like “BORGs” (blackout rage gallons with electrolytes) show a complex picture. Crucially, 72% of Gen Z consumers feel it is appropriate for brands to address mental health, and 35% favor campaigns involving mental health influencers. Micro-influencers (3,000 to 10,000 followers) yield far higher engagement than mega-celebrities whose messaging gets muddled.

Kleos Mastiha (22:08)

In the beverage business, Gen Z consumers prioritize sustainability, environmentalism, anti-racism, and overall value. They seek out better-for-you options, value-conscious choices (like Don Julio over-indexing despite its price point), and unique, authentic stories. Key emerging trends include mood-lifting alcohol alternatives (like cannabis-infused drinks and adaptogenic/functional beverages), functional thirst-quenchers with neurotropics or herbal supplements, and diverse global flavor profiles. Thank you so much for listening, and cheers!

Shelley Elkovich (0:12)

I’m the co-founder of For Bitter For Worse. We make complex non-alcoholic cocktails with love, not alcohol. The modern consumer is moderating their alcohol intake, focusing on occasion over ABV. They are alcohol-flexible and seek transparency. According to IWSR data, 80% of non-alc purchasers also consume alcohol. Consumption patterns fall into three main groups:

• Substituters (57%): People who drink non-alcoholic beverages on some occasions and full-strength alcohol on others.
• Blenders (21%): Those who switch between full-strength and non-alcoholic drinks within the same occasion.
• Abstainers (22%): Consumers who do not drink alcohol at all.

Shelley Elkovich (1:42)

Macro trends driving moderation include:

• Generational Mindset: Millennials and Gen Z are flexible, creative thinkers taking a non-binary approach to lifestyle choices—similar to flexitarian diets (which 47% of Americans identify with).
• Mental Health Awareness: 90% of Americans believe there is a mental health crisis. Over 43 million U.S. adults take antidepressants, many of which are incompatible with alcohol, prompting a search for compatible alternative beverages.
• Alternative Substances: Cannabis and psilocybin are increasingly accepted, with consumers seeking “420-friendly” non-alcoholic drinks while socializing.

Shelley Elkovich (3:54)

Occasion-based shopping drives about half of all grocery trips in the U.S. If a brand can unlock the right occasion, it can significantly increase sales:

• Niche Positioning: Athletic Brewing successfully built its brand identity around sports and active lifestyle occasions.
• Packaging Formats: Our aperitif, Eva’s Spritz, is popular in 750ml bottles for formal events and weddings, whereas the same product in a can format fits music festivals like Coachella.
• Cultural Festivals: Events like Coachella, Sundance, and Stagecoach are introducing curated non-alcoholic menus, offering brands prime opportunities to steal market share from standard sodas and water.
• Retail Placement: Non-alcoholic brands must proactively educate distributors and buyers on optimal set placement and curated shelf mates.

Shelley Elkovich (6:19)

Consumer demand for transparency heavily influences buying decisions:

• Label Power: 63% of consumers read labels, with product labels accounting for 48.8% of consumer decision-making—more than brand websites or word-of-mouth recommendations.
• Ingredient Clarity: Non-alcoholic beverages must list ingredients. Alcohol brands like JuneShine and Haus that proactively demonstrate label transparency gain a strong competitive edge.
• Purpose & Values: 89% of U.S. consumers hold positive views of purpose-driven brands. Gen Z is particularly vigilant: 75% research companies to verify if they are truly “walking the talk.” Hollow marketing or greenwashing can quickly backfire.

Shelley Elkovich (8:05)

The modern consumer is alcohol-flexible. While non-alcoholic products are designed for underserved non-drinkers, they also serve as versatile cocktail bases. For example, hosting an event for 350 corporate guests where a complex non-alcoholic cocktail served as the baseline—with an optional gin float—created an inclusive environment where everyone enjoyed the exact same glass. Collaborations between traditional spirits and non-alcoholic brands offer significant potential for modern hospitality.