In an era of volatility and evolving social norms, modern consumers are navigating a highly complex landscape in which trust and transparency are paramount. InvestBev released a white paper, “Transparency: An Industry Imperative,” which offers an in-depth look at how consumer shifts toward trust and wellness are transforming the beverage industry.
In the paper, InvestBev CEO Brian Rosen discusses how the growing demand for transparent practices—from ingredient disclosure to ethical production—is reshaping investment strategies in the sector.
Leading Consumer Desires
In our rapidly changing world, the white paper found that customers are increasingly seeking brands they can trust and brands that better align with their health and wellness goals.
- Trust: Whether its values are clean labeling, sustainability, charitable or social causes, brands that provide transparency within their production processes, sourcing, labeling and business practices can build stronger connections with their audience.
- Wellness: As people become more focused on the implications of their lifestyle, they are seeking choices that enhance perceived wellness and extend lifespan. While boomers are leading the charge in this movement, younger generations are also turning their attention to personal wellness.
These primary consumer desires—trust and wellness—are reshaping product development and messaging for beverage alcohol companies. Brands are best served by being clear in terms of ingredients, nutritional facts and packaging, according to the white paper, allowing consumers to choose based on their own order of importance, which can shift over time.
Consumer Behaviors and Expectations
The white paper explains that modern consumers are making more conscious choices, driven by values such as sustainability or social impact. A study by Label Insight found that 94% of consumers are likely to be loyal to a brand that offers complete transparency, and approximately 75% are willing to pay more for products from a brand they believe to be genuine.
The desire for a healthier lifestyle is driving a moderation in consumption. The impact on our bodies of certain inputs is playing an influential role in consumer purchasing decisions, according to the white paper.
The growth of low or no-alcohol is also a result of certain consumers focusing on balanced consumption, with 47% of consumers looking to moderate their alcohol intake, according to IWSR. A key aspect of the non-alcoholic trend, however, is the concept of “zebra-striping,” in which consumers alternate between non-alcoholic and alcoholic options.
How Brands Can Navigate Trust, Transparency and Trends
As the white paper states, “building trust through transparency is now paramount—a proven success driver for many brands. As beverage consumption evolves, brands must adapt by embracing greater transparency to stay competitive.”
The paper also offers some examples of how beverage brands are succeeding by embracing these core principles:
- Clean Ingredients: Siempre tequila emphasizes its additive-free and celebrity-free positioning, appealing to both tequila connoisseurs and the bartender community seeking authenticity.
- Brand Storytelling: Tito’s, one of the most successful distilleries, has created a brand narrative centered around where and how the product is made. What resonated with consumers was its origin story as a Texas made “hand crafted” vodka, which appealed with consumers seeking genuine, transparent brands.
- Eco-Friendly Products and Services: Toast Brewing uses surplus bread from bakeries and sandwich shops to brew beer, lager and cider. By substituting bread for malted barley, they reduce the amount of land, water and energy needed for production and lower carbon emissions.
- Continued Growth of Organic and Functional: Co-founded by actress Cameron Diaz, Avaline focuses on producing wines made with organic grapes, offering label transparency and a lower sugar wine. This brand appeals to health-conscious consumers, leading to success in natural retailers such as Sprouts and Whole Foods.
- Proliferation of Low and Non-Alcohol Brands: Sèchey offers a curated selection of low and no-alcohol options that align with the growing demand for alcoholic alternatives.
- Production Methods: By utilizing traditional methods such as copper pot stills, Woodford Reserve creates spirits that appeal to consumers interested in heritage and authenticity. Traditional production methods can enhance perceived quality and value.
