Alcohol & Related Companies

Part
01
of three
Part
01

Logos Part 1 of 2

Brands in the alcoholic ready-to-drink market are Malibu and Jim Beam; Budweiser and Kahlua are brands in the alcohol experience marketplace; Saucey and Drizzly are alcohol delivery apps, and Distilled Spirit Council and Texas Alcoholic Beverage Commission are brands in the alcohol-related communities category. Each of the brands is well-known in the US. The logos of each of these brands have been provided in slides 1-2 of the attached presentation.

A. ALCOHOLIC READY-TO-DRINK MARKET

#1: MALIBU:

WHAT IT OFFERS:

  • Malibu offers beverages ready-to-drink.
  • The alcoholic base liquor is rum and is combined with different flavors like Piña Colada.
  • The product sold in cans for the comfort of the customer.

HOW IT FITS THE CATEGORY:

  • The Malibu brand is well-known in the US and globally.
  • It offers different alcoholic ready-to-drink beverages like Piña Colada and Passion Fruit.

#2: JIM BEAM:

WHAT IT OFFERS:

HOW IT FITS THE CATEGORY:

  • Jim Beam is a North American brand, well-known in the US, and offers a variety of RTD alcoholic beverages.

B. ALCOHOL EXPERIENCE MARKETPLACE:

#1: BUDWEISER:

WHAT IT OFFERS:

  • Budweiser is specialized in beer.
  • In its Made in America music festival in Philadelphia, the brand prepared an exclusive beer for the occasion, offering the beer in custom BMIA Philly cups, straight from a tank, where the beer just had been finished and ready-to-drink.

HOW IT FITS THE CATEGORY:

  • Budweiser, one of the most popular beer brands in the US, provided specially prepared beer to enhance the musical experience at the festival.

#2: KAHLUA:

WHAT IT OFFERS:

  • Kahlua offers rum with a coffee flavor.
  • It organizes Cult Film Nights through which it introduces its rum to consumers including cocktails like Kahlua Expresso Martini and the Black Russian.

HOW IT FITS THE CATEGORY:

  • Kahlua is a Mexican brand but has an enormous presence in more than 120 countries, including the US.
  • The beverages it offers its guests at its cult film nights help position the brand as a classic companion to classic films.

C. ALCOHOL DELIVERY APPS:

#1: SAUCEY:

WHAT IT OFFERS:

  • Saucey is an app for alcohol delivery in the US, which specializes in liquors of the major brands in the US like Johnnie Walker and beer brands like Budweiser.

HOW IT FITS THE CATEGORY:

  • Saucey is well-known in the US. It delivers a lot of liquor and beer brands in many US cities. In the Apple Store, the app has a score of 4.9 out of 5, and a total of 16,600 ratings.

#2: DRIZZLY:

WHAT IT OFFERS:

  • Drizzly is an app that specializes in alcohol delivery in the US, serving more than 100 cities in the US, including Kentucky, Oregon, and Colorado. It delivers beer, wine, and liquors.

HOW IT FITS THE CATEGORY:

  • The Drizzly app is well-known in the US, with a score of 4.9 in the Apple Store and 23,500 ratings, delivering alcoholic beverages every day.

D. ALCOHOL-RELATED COMMUNITIES:

#1: DISTILLED SPIRITS COUNCIL

WHAT IT OFFERS:

  • Distilled Spirit Council is a group of previously independent people belonging to three organizations: the Bourbon Institute, the Distilled Spirits Institute, and the Licensed Beverage Industries, Inc.
  • They merged in 1973 to form the Distilled Spirits Council and currently function as the national trade association for the top US producers and marketers of distilled spirits products.

HOW IT FITS THE CATEGORY:

  • Distilled Spirit Council is a well-known American organization with a theme directly related to alcohol. It is a big organization with 22 executive staff members.

#2: TEXAS ALCOHOLIC BEVERAGE COMMISSION

WHAT IT OFFERS:

  • The organization is in charge of all matters related to alcoholic beverages in Texas, US such as the permit to sell or purchase alcohol, and the hours of service and consumption of alcohol.

HOW IT FITS THE CATEGORY:

  • It is an American organization that is well-known by people of Texas.
Part
02
of three
Part
02

Logos Part 2 of 2

Some brands and apps in the spiritual community market place include Serenbe, Retreat Guru, Jiyo, and Gaia. Other spiritual wellness companies include The Four Wings, YOQI , Sounds True, and Bwell Coach. The logos of each of these brands have been provided in slides 3 and 4 of the attached presentation.


SPIRITUAL COMMUNITIES


APPS OR PLATFORMS


OTHER SPIRITUAL WELLNEWSS COMPANIES AND BRANDS


RESEARCH STRATEGY

For each of the companies listed, we were able to determine that they are well-known within the spiritual wellness category. Further, we referenced the best list of
spirituality apps by Gabby Bernstein a NewYork Times Bestseller. Finally, we studied each of the platform to identify is they are a reputable company in the industry.
Part
03
of three
Part
03

Alcohol Spending Habits, 21-30 Year Olds

People between the ages of 21-30 spend an average of $1.57 per day on alcohol. In 2018, 2017, and 2016 an estimated $521, $490, and $461 was spent on alcohol by Millennial. Continue below for a deep dive into our findings, research strategy, and calculations.

AMOUNT SPENT ON ALCOHOL BY MILLENNIALS

  • In 2018, Millennial spent an average of $521 on alcohol.
  • In 2018, Millennial spent an average of $490 on alcohol
  • In 2016, Millennial spent an average of $461 on alcohol.
  • Just in two years, the spending on alcohol is rising among Millennial by 6.31% annually.

The Spending Habits on Alcohol By Millennial

  • Those who are now 21-30 years old belong to the Millennial age group.
  • GoBankingRates released an analysis of annual consumer expenditure data in 15 categories and found out that Millennial spend $1.57/day on alcohol.
  • Mintel's 2018 study found that 28% of those who are 24-31 years old prefer drinking at home. Millennial prefer to drink at home to avoid too much effort wasted in drinking out.
  • Those who drink at home perceived drinking at home as more relaxing (74%), cheaper in price (69%) and more personal (35%), and 38% want to drink at home to get better control over the alcohol intake.
  • The Senior Foodservice Analyst from Mintel, Caleb Bryant, said that bars and restaurants must work harder to enchant such unique customers, maybe an Instagramable pop culture pop-up bar that can enchant them to go from the consumers’ living rooms.
  • Bryant also noticed that Millennial enjoy experimenting with new drinks as they adopt adventurous behavior to try innovative drink menus to have better experiences.
  • According to the Wine Market Council, more than half Millennial who drink wine talk about their experience with wine on Facebook, and 33 percent talk about it on other social media such as YouTube, Twitter and Instagram.

Additional Findings

  • According to Nielsen research on Millennial behavior on alcohol in August 2015 — while this is outdated, the earliest Millennial in 2015 are now 25 years old and therefore the behavior study is still useful to know until today.
  • In 2015, the Millennial age 21-34 account for 35% of U.S. beer consumption, 32% of spirit consumption, and 20% of wine consumption.
  • The Millennial Gatekeepers are 43% more likely to experiment by trying new and different products.
  • The craft beverage alcohol survey in May 2015 found that, consumers between 21-34 desire craft beer. Craft beer is associated with being handcrafted, artisanal, and top quality.
  • Harris Poll reported 35% of adults age 21 and older — expressed themselves as interested in trying an alcohol beverage labeled craft. During the survey in 2015, 46% of men age 21-24 years old — now they are 25-29 years old — admitted that they are more interested in craft beer.
  • According to Nielsen Scarborough reports, Millennial craft beer drinkers purchase more beers outside like nightclubs, bars, and stadiums.
  • In Denver, 55% of Millennial craft beer drinkers are male, while in Grand Rapids, Michigan, the Millennial craft beer drinkers are 73% male.

RESEARCH STRATEGY

To locate stats on the spending habits of 21-30 year-olds on alcohol in the United States, we began by combing through surveys conducted by credible market research, press release, and companies’ website. We utilized Mintel, GoBankingRates, HuffPost, Investopedia, and Nielsen. We defined those that are 21-30 year-olds as Millennial. While there was information on the spending of those in this demography in 2018 and 2016, there was however no reported data in 2017. Our research team calculated the CAGR using the available data points. Base, on our calculations, the amount Millennial spent on alcohol in 2017 was estimated to be $490.

CALCULATIONS

In 2018, $521 was spent on alcohol by Millennial.
In 2016, $461 was spent on alcohol by Millennial.
Using CAGR calculator — the growth rate within these years is 6.31%
Therefore, in 2017, the amount spent on alcohol by Millennial = $461 + ($461 x 0.0631) = $490.

Sources
Sources

From Part 03
Quotes
  • "Gen Xers are tops in dollar spend on alcohol, at an average of $633 per year, ahead of Baby Boomers ($595) and Millennials ($521)."
Quotes
  • "Millennials spend the least on alcohol ($1.57/day), pets ($1.24/day), and vehicle insurance ($2.36)."
  • "This is similar to alcohol expenditure: Since a large portion of Americans don’t drink (nearly 40 percent, according to a Gallup poll), their daily $0 brings down the average. However, millennials are still spending less on alcohol than the older generations, which all spend upwards of $1.70 (the exception are those older than 65, who only spend $1.26.)"
  • "A 2018 study from Mintel found that 28 percent of those ages 24-31 prefer drinking at home."
Quotes
  • "New research from Mintel reveals that almost three in ten (28%) Younger Millennials (aged 24-31) drink at home because they believe it takes too much effort to go out."
  • "In fact, it seems the at-home drinking trend is catching on as on-premise alcohol drinkers are more likely to say they are drinking alcoholic beverages away from home less often (18%) in 2018 than they did a year ago, than to say they are drinking away from home more often (15%), with Younger Millennials most likely to agree (29% drinking away from home less vs 17% more). In addition to being perceived as more relaxing (74%), cheaper (69%) and personal (35%), nearly two in five (38%) in-home drinkers are choosing to drink at home in order to better control their alcohol intake."
  • "Today, Millennials are currently leading the way when it comes to socializing in the home, but the preference for at-home drinking will likely be even greater among the up-and-coming iGeneration, who are generally regarded as more frugal and pragmatic than Millennials. Bars and restaurants must work harder than ever to provide customers with a unique drinking experience. For example, an ‘Instagramable’ pop culture pop-up bar offers an experience that can’t be replicated from consumers’ living rooms,” said Caleb Bryant, Senior Foodservice Analyst at Mintel."
  • "Millennials enjoy experimenting with new drinks on-premise, with this adventurous behavior indicating an opportunity for foodservice retailers to innovate their drink menus and create better experiences to further encourage consumers to drink more away from home,” concluded Bryant."
Quotes
  • "Of millennials who drink wine, more than half talk about it on Facebook, and 33 percent do so on YouTube, Twitter and Instagram, according to the Wine Market Council. "
Quotes
  • "Alcohol spending: How do you compare? $461: Average amount millennials spent on alcohol in 2016 All generations spent approximately 1% of their income on alcohol. However, millennials spent the greatest portion of their alcohol budget (53%) and the most money overall on booze away from home. "
Quotes
  • "For example, Millennials 21-34 represent about one-fourth of adults 21 and over, but they account for 35% of U.S. beer consumption and 32% of spirit consumption. Comparatively, they represent only 20% of wine consumption."
  • "While they’re deal seekers, Millennials won’t give up quality or taste when it comes to their alcoholic beverage purchases. And as a result, a large percentage say they will not spend their money on mass-market alcoholic beverages. That’s one factor that has led to the growing popularity of craft beverage alcohol products."
  • "In a survey Nielsen conducted in August, 34% of spirits drinkers said they equate a higher price with higher quality either all or most of the time. Among Millennials, however, the percent was 41%, while only 27% of Boomers associate price and quality. And a craft beverage alcohol survey in May found that consumers 21-34 desire craft beer that is associated with being handcrafted, artisanal and top quality."
  • "Much like their desires to purchase organic and healthy, Millennials are interested in trying new things and experimenting, and this appetite factors into the alcoholic beverages they choose. Millennial Gatekeepers—the primary shopper in a multi-generational household—for example, are 43% more likely than the entire Millennial generation to want to try new and different products."
  • "In aggregate, Millennials are fairly brand promiscuous, especially when it comes to beer and wine, as a result of their adventurousness in general and the likelihood that until they “try” different brands, they don’t know yet what they’ll like or not like."
  • "While this newest generation of full-fledged adults is very planning-oriented when it comes to overall shopping, Millennials plan less than Gen X and Boomer consumers when they shop for alcoholic beverages. This makes them more engaged within the store than when they shop for other categories. As alcoholic beverage shoppers, Millennials are prone to looking at product details, deals and promotions, providing a significant opportunity for retailer and manufacturer influence."
Quotes
  • "According to a recent Nielsen study of craft beverage alcohol conducted online by Harris Poll, 35% of adults 21 and older say they’re more interested in trying an adult beverage labeled craft. Among men 21-24, that figure jumps to 46%."
  • "For example, research from Nielsen Scarborough has found that Millennial craft beer drinkers are purchasing more beer at nightclubs, bars and stadiums."
  • "Across the country, to no one’s surprise, more Millennial craft beer drinkers are men than women, but the split is far from consistent. For example, Nielsen Scarborough data shows that 55% of the Millennial craft beer drinkers in Denver are male, while the percentage in Grand Rapids, Mich., is much higher at 73%. In Spokane, Wash., where craft beer consumption has grown the most among adults 21 and older since 2010 (182%), 81% of Millennial craft beer drinkers are men."
Quotes
  • "The Silent Generation: Born 1928-1945 (73-90 years old) Baby Boomers: Born 1946-1964 (54-72 years old) Generation X: Born 1965-1980 (38-53 years old) Millennials: Born 1981-1996 (22-37 years old) Post-Millennials: Born 1997-Present (0-21 years old)"