With new, large markets emerging globally and the upturn of the U.S. economy, consumers have greater disposable income and that bodes well for premium brands in the Beverages and Spirits industry. Between January 2015 and January 2016, over 5,000 new beverages were launched in North America.*
Beverage companies are finding increased demand for flavored products and natural sweeteners along with healthier, organic-based products. Millennials in particular, are driving demand for functional beverages that provide cognitive and other health benefits. The push for “nutraceuticals” supports a desire to supplement daily vitamins and minerals in this health-focused demographic. While carbonated soft drink sales are down, there is growth in flavored waters, non-dairy milks and juices.
More sophisticated consumers have driven demand for flavored spirits and premium brands. In addition to flavored vodkas, whiskey sales are fast growing as consumers are swayed by celebrity endorsements and a yearning for a more authentic experience. Whiskey’s long history, and its “made in America” appeal, have created a demand for an already long-aging product, furthering the supply and demand tension.
A significant number of mergers and acquisitions in 2014 have created larger conglomerates, all looking for ways to differentiate their products in this mature and saturated market.
On the distribution side, beverage distributors are challenged with the management of so many additional products and the need for increased warehouse automation to locate and move products more quickly.
With the right incentive program you can strategically introduce new brands and increase sales and market share by incenting your distributors and sales leaders.
Let us help you create greater loyalty within your distribution networks.
*Source: Mintel 2015