Dave Williams, President of Bump Williams Consulting, delivers a data-rich presentation at Bar Convent Brooklyn on Gen Z alcohol habits and building the spirits industry’s consumer “farm team.” Dave analyzes the three fundamental levers of business growth (increasing purchase frequency, increasing volume per occasion, and expanding the total shopper base) and explains why consumer recruitment of 21-to-29-year-olds is urgent as traditional bottled spirits navigate multi-year volume declines.
Park Street Imports is the back-office and importing solution for alcoholic beverage brands launching and scaling in the U.S. market.
Dave William’s Presentation Transcript
When evaluating the newest legal-drinking-age (LDA) consumers entering the spirits and beverage alcohol space, I view Generation Z as the ultimate “farm team” of potential brand advocates. As the newest demographic cohort entering the category, building this farm team is vital for long-term category health.
The Three Levers of Commercial Business Growth
Regardless of industry, there are only three primary mechanisms to grow a business:
-
Increase Purchase Frequency: Encourage shoppers to buy more frequently, driving category volume.
-
Increase Volume per Occasion: Trade consumers up per drinking occasion (e.g., from one drink to two, or a 6-pack to a 12-pack).
-
Expand the Consumer Base (Recruitment): Bring entirely new consumers into the category to achieve net-positive growth.
Achieving recruitment among the sub-30, 21-to-29-year-old LDA cohort represents the primary lever for securing the future of spirits.
The Industry Context: A Contracting Baseline
It is essential to address headline realities candidly: category perceptions are shifting, consumer consideration sets are evolving, and total volume across traditional spirits—defined as non-RTD, glass-bottled spirits—faces growth headwinds.
Core traditional spirits categories are experiencing growth challenges, emphasizing the urgent need for targeted consumer recruitment.
Gen Z Profile, Behaviors, and Retail Preferences
While painting an entire demographic with a broad brush requires nuance, clear, common threads define Gen Z’s consumer profile:
-
Lower Spending Power: Aged 21 to 29, this demographic generally operates with lower disposable income, directly impacting their beverage alcohol purchasing habits.
-
Flavor-Forward & Function-Driven: Gen Z prioritizes bold, flavor-centric liquids alongside “better-for-you” product positioning (e.g., functional ingredients, natural attributes, and transparent labeling).
-
Perceived Value Add: Brands that offer a clear “value add”—whether expressed as flavor variety, lifestyle alignment, or ABV efficiency—rise to the top of their decision tree.
-
Mass Merchandiser Footprint: Gen Z consumers skew more heavily toward mass-merchandiser retail outlets (seeking value and structured shopping experiences) and are somewhat less likely to purchase alcohol within traditional convenience channels.
-
Intentional Social Media Influence: Social media informs their brand awareness and discovery, but does not solely dictate where or how they purchase. They seek convenience, transparency, and clear product availability.
Addressing the Elephant in the Room: High Abstinence Rates
Data from NIQ indicates that when asked how frequently they consume alcohol, nearly 45% of Gen Z respondents report “never.”
┌─────────────────────────────────────────────────────────────────────────────┐
│ GEN Z ALCOHOL ABSTINENCE DRIVERS │
├─────────────────────────────────────────────────────────────────────────────┤
│ • Social Anxiety ➔ Fear of how consumption appears on social media. │
│ • Mood Impact Concerns ➔ Apprehension regarding emotional fluctuations. │
│ • Desired Alertness ➔ Preference for functional energy over sedation. │
│ • Category Apathy ➔ Unfamiliarity rendering alcohol "unappealing." │
└─────────────────────────────────────────────────────────────────────────────┘
This high rate of category friction is an education and marketing opportunity. Brands, operators, and bartenders must communicate responsible, relaxed, and approachable social occasions while offering flexible option formats (including low-ABV and non-alcoholic alternatives).
The Competitive Edge: Spirits vs. Beer and Wine
While overall alcohol participation is lower, Gen Z demonstrates a distinct category preference when they do participate.
┌─────────────────────────────────────────────────────────────────────────────┐
│ GEN Z CATEGORY PREFERENCE MATRIX │
├─────────────────────────────────────────────────────────────────────────────┤
│ 1. SPIRITS & RTDs ➔ Strong participation matching Millennial levels. │
│ (Category Edge) Driven by customization, flavor, and value formats. │
│ │
│ 2. BEER & WINE ➔ Significant decline vs. prior generations. Friction │
│ (Challenged) driven by bloating, price opacity, and complex rules. │
└─────────────────────────────────────────────────────────────────────────────┘
Gen Z consumes wine and beer at significantly lower rates than Millennials, citing issues like bloating, price friction, and category unfamiliarity. However, Gen Z consumes spirits and spirits-based RTDs at rates equal to Millennials. Spirits hold a distinct competitive edge over beer and wine among younger adult drinkers.
┌──────────────────────────────────────────────┬──────────────────────────────────────────────┐
│ GROWING GEN Z CATEGORY │ CORE DRIVERS │
├──────────────────────────────────────────────┼──────────────────────────────────────────────┤
│ Import Beer │ Brand image, heritage, and authenticity. │
├──────────────────────────────────────────────┼──────────────────────────────────────────────┤
│ Flavored Malt Beverages (FMBs) & Seltzers │ Bold, accessible flavor profiles. │
├──────────────────────────────────────────────┼──────────────────────────────────────────────┤
│ Hard Cider │ Natural ingredients, lower artificial sugars. │
├──────────────────────────────────────────────┼──────────────────────────────────────────────┤
│ Tequila & Spirits RTDs │ Convenience, premium image, and versatility. │
└──────────────────────────────────────────────┴──────────────────────────────────────────────┘
Strategic Opportunities to Capture Gen Z Share
To convert Gen Z from prospective consumers into long-term brand advocates, brands should execute four strategic shifts:
-
Prioritize High-Volume On-Premise Accounts: Contrary to popular belief that Gen Z stays home, data shows they spend aggressively on out-of-home social experiences. Brands must secure high-visibility placements in influential, high-traffic bars and venues where brand discovery occurs.
-
Leverage Package Size Flexibility: Capitalize on smaller, lower-barrier formats—such as 375ml bottles or 50ml single-serve packs—allowing price-sensitive consumers to experiment without committing to a full 750ml purchase.
-
Lead with Attribute Transparency: Clearly communicate flavor profiles, functional benefits, calorie/sugar metrics, and ABV credentials directly on the front of the packaging.
-
Harness Word-of-Mouth Advocacy: Gen Z relies heavily on direct recommendations from trusted peers, bartenders, and creators. Building authentic trade advocacy in bars remains the most effective driver to overcome category unfamiliarity.
By lowering friction, offering packaging flexibility, and building authentic trade support, spirits brands can successfully recruit Gen Z consumers and build a sustainable foundation for long-term category growth.