The numbers are in, Generation Z aka Gen-Z, the cohort of those born between the late 90s and early 2000s are drinking less alcohol than their millennial counterparts. There are diverse reasons to explain these generational shifts in drinking choices. From less purchasing power to more wellness-conscious decisions.
Thus, the adult beverage companies such as Heineken and Diageo have gone into the Ready to Drink (RTD) variants, pre-mixes near alcohol and zero alcohol categories. All this is to tap into the segment of consumers who prefer their drink with a ‘little less alcohol or no alcohol at all.’
But as more zero-alcohol drinks get on the market, there’s a new turf where the adult beverage players meet with the soft drinks’ players. Although they were competitors for the share of wallet and share of throat, for the first time, they now get to directly compete in the same category.
Should zero-alcohol beverages count as adult-beverages? What becomes the new differentiator beyond the ‘naming’ gimmicks? The line between zero-alcohol and soft-drinks has become thin that one dares not put a needle in that line. In the coming years, Soft Drinks players such as Coca Cola will be going head-to-head with Adult Beverage players such as Ab-Inbev. It’s going to be an interesting space to watch. The fight for the Genz has never been easier.