As many consumers reduce their alcohol expenditures due to high inflation, Diageo is channeling efforts into expanding its premium product range. The company has introduced the Diageo Luxury Group, a new division dedicated to brands retailing at $100 and above. This division will encompass high-end scotch whiskies such as Johnnie Walker, Brora, Port Ellen, and the upscale wine Justerini & Brooks. Diageo cited IWSR data showing that this price segment has become the fastest-growing in the spirits industry since 2020, driven by a rising appetite for luxury products among “young, diverse” consumers. The Guinness maker’s luxury strategy aims to enhance collaborations and innovation across its brands, while also improving global distillery visitor experiences, including at Johnnie Walker Princes Street in Edinburgh, Scotland. Julie Bramham, previously the global brand director for Johnnie Walker, will lead this division. “We are fortunate to possess Diageo’s finest assets—a remarkable collection of brands and talented individuals that allow us to blend heritage with a forward-thinking approach,” Bramham stated. “By consolidating our luxury offerings and focusing on expanding luxury-based experiences, Diageo is exceptionally positioned to meet the needs of our clients and customers.” Although recognized primarily for its iconic beer products, Diageo understands the profitability of the luxury wine and spirits market, as high-income consumers increasingly seek premium experiences. This category was valued at $867 billion in 2023 by Market Research Future and is anticipated to grow at a compound annual growth rate of 5.2% through 2030. The alcohol industry is adapting to evolving trends, as consumers from diverse backgrounds seek different attributes in their beverage choices. Earlier this year, a Bacardi executive noted that consumers desire cocktails that offer variety and a touch of luxury. Additionally, Molson Coors, the maker of Coors Light, has focused on premium spirits like whiskey in recent years to counteract declines in beer sales.
In another development, family-owned soda brand Cheerwine has teamed up with NoDa Brewing to unveil Cheerwine Holiday Ale. This new product builds upon their previous collaboration, Cheerwine Ale, which quickly became one of NoDa’s top offerings after its 2023 launch. Jacob Virgil, director of strategic development at NoDa Brewing Company, expressed enthusiasm about the partnership, stating, “Collaborating with Cheerwine to create Holiday Ale is an excellent opportunity for two iconic North Carolina brands to unite once again. We’re thrilled to introduce Cheerwine Holiday Ale to our fans and continue our commitment to crafting exceptional, locally inspired beverages.” This new beverage, featuring a 5.2% alcohol by volume, combines Cheerwine’s classic cherry flavor with a hint of pineapple on an American Wheat Ale base. Established in 1917, Cheerwine has partnered with mixologists and chefs to create recipes and cocktails showcasing its drink’s versatility, which enhances the brand’s visibility in the culinary world.
As beverage companies seek to attract new consumers and occasions for drinking, alcohol has become a popular option. Coca-Cola, for instance, has ventured into the alcoholic beverage space by collaborating with Molson Coors and Constellation Brands to introduce Topo Chico and Fresca, respectively. In addition, SunnyD has launched SunnyD Vodka Seltzer, while PepsiCo and Boston Beer have collaborated on a Hard Mtn Dew alcoholic product.
In a shift toward healthier alternatives, Langers, a juice brand, has entered the soda market with Craft Cola and Craft Cola Zero. The regular soda is sweetened with cane sugar, while the zero-sugar version uses stevia leaf extract. Both products derive their caffeine from tea. Based in Los Angeles, Langers believes their product stands out from leading cola brands as it contains no high fructose corn syrup, sodium, or aspartame—ingredients they consider “weird stuff.” Bruce Langer, the company’s president, remarked, “Our dad started Langers Juice after running a small, healthy juice shop in San Diego with our mom in the 1960s. Our family aims to revive the nostalgic, real cane sugar cola experience without the harmful, unhealthy ingredients that have permeated many soda brands over time. We want people to enjoy an ice-cold, fizzy can of cola with friends and feel confident that they are drinking something clean and natural.” Langers’ colas are available for purchase on their website and Amazon, marking a new revenue stream for the juice producer as the fruit-based beverage market has experienced declining sales in recent years due to concerns over sugar content.
Amid ongoing health concerns related to aspartame, commonly found in products like Coke Zero and Pepsi Zero Sugar, the landscape of soda consumption is shifting. In July 2023, the World Health Organization’s cancer research arm surprised many by declaring the sweetener “potentially carcinogenic” based on limited evidence, while the organization stated that it is safe to consume within certain limits. A 12-ounce can of Coke Zero contains 40 milligrams of sodium, which is 2% of the recommended daily intake. As consumers increasingly seek healthier alternatives to traditional sodas, various brands promoting gut-friendly drinks have gained traction, including Poppi, Olipop, and Health-Ade’s SunSip. However, nutritional claims made by these products have faced scrutiny, with a lawsuit earlier this year accusing Poppi of misleading consumers with its “prebiotic” assertions.
To further enhance health benefits, some companies are incorporating calcium citrate and vitamin D into their beverages, addressing consumer demands for fortified options. This trend reflects a larger shift in consumer preferences toward healthier, more functional products in the ever-evolving beverage market.