Drinks in the Americas: Opportunities for Premiumisation and Reinvention

Delivery

This report comes in PPT.

Key findings

The new norm of total beverage demands a diverse portfolio

Increasing brand agnosticism in search of the newest hyped product is an upending of the classic cola and beer wars of the last half century. While consolidation cooled as inflation struck multiple geographies in the last few years, decreasing interest rates signal a return to M&As for beverage companies needing to captivate audiences with shifting values.

"Less but better" is a multi-faceted consumer trend

Consumption reduction may be optimistically painted as an extension of an increasingly mindful populace, but the larger picture of the trend is a glamorising of geopolitical strains on developed markets. Inflationary pressures, a perpetually tenuous supply chain, direct and proxy military conflict, and the increased palpability of climate crisis are amplifying global food insecurity.

Wellness buying will provide agency amid permacrisis

While sustainability trends were a means for buyers to feel ethically impactful in reversing environmental calamity, the shock of the COVID-19 pandemic illuminated the fragility of our routines and bearing on global crises. Consumers have since turned their efforts inwards, in the hopes of gaining a more feasible means towards serenity and health.

Social media volatility will require a deft digital strategy

The seemingly overnight upending of Twitter/X as a stalwart marketing channel and the potentially ephemeral ascent of TikTok in the US market exemplify how rapidly erratic the landscape of s-commerce can be. While it may seem economically prudent to abstain from these upstart spaces, the long game seems more fitting to treat the evolving ecosystem of digital consumption with intentionality and aplomb.