In the competitive world of craft brewing, understanding consumer behavior is crucial to maximizing profitability. Let’s consider on-premise opportunities — specifically high-tempo drinking parties. These are always interesting and exciting customers to see in the craft brewery. These events, characterized by their high energy and large crowds, often lead to increased consumption rates, making them a valuable target for strategic marketing and sales initiatives.
What is a high-tempo drinking occasion?
A bar crawl, club rager, birthday party and pregaming before sporting events or festivals are all great occasions for high-energy craft beer consumption. While traditionally described as heavy late-night drinking, a lot of interesting research is floating around about how high-tempo events are happening early in the day. According to this article from Global Drinks Intel:
The ‘bottomless brunch’, for example, has shifted high-consumption occasions from nightclubs into brunch restaurants and from spirits into prosecco, while ‘competitive socializing’ (think interactive darts, ping pong or shuffleboard) has turned what were the lair of late-night into the more beer-friendly late-afternoon.
High-tempo revelry is happening earlier
That article above was written by Charlie Mitchell — a research and insight director at CGA. CGA by NIQ is a measurement, insights and research consultancy for on-premise data for the food and drink industries. These survey and data experts recently released a study on the on-premise drinks market for the United States, noting a shifting trend to earlier high-tempo drinking occasions.
14% of On Premise consumers have participated in high tempo drinking occasions over the past quarter. This trend is particularly popular among more than a quarter (28%) of Gen Z consumers, who are over-indexing in high tempo drinks by +14pp versus average On Premise drinkers.
While high tempo occasions are traditionally associated with late night revelry, they are now expanding to earlier dayparts. Three in five (61%) consumers are enjoying these experiences in the late evening (8pm -10pm), while more than are half (57%) are further extending the fun into early evening (5pm – 8pm), though a third (33%) still indulge late at night (10pm and beyond).
High-tempo drinking occasions typically involve groups looking to enhance their social experience through the consumption of alcohol. These events can vary widely, from a big night out to major sporting events, each providing a different customer base and consumption atmosphere. The key to capitalizing on these occasions is understanding the specific needs and preferences of attendees, which can differ significantly from more relaxed drinking settings.
Challenges and opportunities for high-tempo occasions
While the potential for profit is high, breweries face certain challenges when tapping into high-tempo drinking occasions. Responsible drinking must be a priority, as these events can sometimes encourage overconsumption. Brewers don’t want high-tempo parties killing the buzz of everyone else at the brewery. Logistical issues, such as staff, transportation, security and space, need to be carefully planned and executed. Also, as high-tempo occasions have diversified, so has the serve strategy, portfolio and pricing. Those targets may need to be adjusted for profitability, depending on whether it’s a booze-heavy brunch vs. the big game on Sunday. Breweries must navigate these challenges thoughtfully to ensure a positive impact on their brand, community and profit margin.
High-tempo drinking parties also provide plenty of opportunities. According to the CGA article:
For these reasons, high tempo occasions present multiple windows for drinks brands and suppliers to encourage consumer trade-up to premium options. For instance, almost two thirds (62%) of consumers who went out for high tempo occasions in the past quarter ordered bottle service, with champagne being the most popular choice (60%), followed by vodka for more than half (54%) and whiskey for almost half (46%). These metrics confirm and amplify the growing thirst for quality, coupled with consumers’ increasing willingness to spend more on superior options.
Moreover, a third of beer drinkers and spirit drinkers (35% and 33% respectively) are ordering premium options on high tempo occasions, outpacing those who only order value brands. This shift emphasizes the importance of offering resonant premium experiences to supply to the evolving demands of high tempo consumers.
For craft breweries, high-tempo drinking occasions can offer lucrative opportunities to expand their market reach, increase sales and enhance their brand’s profile. Here are some ideas:
Limited edition releases
High-tempo events are perfect for introducing special edition brews or event-specific recipes. These exclusive offerings not only create buzz but also encourage attendees to purchase on impulse, drawn by the novelty and the fear of missing out on something unique.
Strategic partnerships
Collaborating with event organizers or other local businesses can increase a brewery’s visibility and access to high-tempo occasions. Sponsorships or partnerships with music festivals, sports teams or cultural events can position a brewery’s brand front and center among potentially thousands of attendees.
Enhanced experiences
Beyond just selling beer, breweries can enhance the drinking experience by providing themed bars or pop-up tasting rooms at events or even unique tours. These can offer interactive experiences, like meet-the-brewer sessions or beer education classes, adding value that can attract more customers and justify premium pricing.
Mobile sales units
Investing in portable bars or mobile beer trucks can allow breweries to sell directly at various high-tempo locations without the need for permanent on-site infrastructure. This flexibility enables breweries to chase the crowd, setting up wherever large gatherings are found.
Packaging innovations
For high-tempo occasions, convenience is key. Breweries should consider packaging that caters to this need, such as cans which are lighter and more durable than bottles, or innovative packaging solutions like stackable or easy-to-carry multi-packs.
High-tempo occasions FTW
By understanding the nature of these events and implementing targeted strategies, breweries can effectively capitalize on the high demand and dynamic atmosphere of these gatherings. Whether through exclusive releases, strategic partnerships or innovative selling strategies, the potential for growth in these vibrant settings is substantial, making them an interesting component of any brewery’s business strategy. According to Matthew Crompton, vice president – Americas at CGA:
“The diversification of high tempo occasions across different dayparts and venue types presents both challenges and chances. So, it’s necessary for brands and suppliers to appreciate the complexities of high tempo consumers’ decision-making processes in order to capitalize. As a result, they can retain and grow their share by focusing on quality, atmosphere, and experience. But it remains key to offer value for money in a way that meets consumers’ heightened expectations, ensuring they choose to spend On Premise rather than taking the party elsewhere.”
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