Alcoholic Beverages

Changes in consumer behavior and distribution models are generating a high level of dynamism in the market for alcoholic beverages. A key factor here is the increasing relevance of e-commerce. The development of digital distribution channels opens up new perspectives. At the same time, it requires a global strategy supported by excellent technology, consistent and experience-oriented brand management, and supply chain processes that master a balance between global control and local implementation. The second aspect is the change in consumer behavior, which is being shaped by three main developments. First, an increasing globalization of consumption can be observed, which is reflected, for example, in the growing popularity of whisky, sake or tequila far beyond the traditional sales markets. New opportunities are opening up here, but these are strongly influenced by the very different and volatile import duties, labeling requirements and trade regulations. Second, the trend towards market polarization is accelerating. The area of "super-premium" and "high-end premium" spirits is growing rapidly and reaching more and more new market segments. However, the premium strategy requires specific approaches in brand management and design of distribution models, an excellent innovation pipeline and a fine balance between global and local elements. This challenge also relates to the transformation in the market for low-alcohol beverages, where craft beer, for example, is increasingly proving to be a game changer. It not only opens up interesting potential, but is also profoundly changing the segment itself. Finally, while the ready-to-drink (RTD) alcoholic beverage sector is showing almost exponential growth, it is also confronting the industry with enormous complexity at the levels of product development, brand management, and the acceleration of production and distribution processes.