PPB November 2018

Market Snapshot In the beverage industry, health and wellness sells. It’s no longer a trend, but a lifestyle choice. Consumers crave health benefits beyond hydration when they reach for their beverage of choice. Immunity-boosting beverages such as kombucha and kefir are particularly popular for their ability to boost the body’s natural immune response and alleviate cold and flu symptoms. Kombucha, the fastest-growing market in the functional beverages category, is projected to grow 25 percent annually through 2020. Nearly three-quarters (73 percent) of people find beverages with added nutrients to be appealing, according to a GlobalData report. Consumers who don’t want to chug a whole bottle of a good-for-you beverage can reap many of the same benefits from a high-potency, functional shot. If they knock back a kefir shot, for example, they consume tens of millions of colony-forming units, making it a true superfood packed with healthy bacteria, yeast and enzymes. In their quest to sip more sensibly, many consumers are also saying no to artificial sweeteners and ingredients. Instead, they seek natural sweeteners such as stevia and monk fruit. In 2017, the use of natural sweeteners in beverages increased by 40 percent in volume globally compared to 2016, according to Tate & Lyle, a global sweetener manufacturer. Beverages in all categories are taking a back-to-nature approach. Plant-based proteins such as lentil, fava bean and pea are often replacing dairy proteins in drinks. In cocktails, vodka is offered in all-natural flavors such as grapefruit and rose or white peach and jasmine. The next time you belly up to the bar, you might be doing your body good. Botanicals boast health benefits that aid with digestive disorders, promote heart health and ward off disease. to entice consumers to reach for a particular beverage on a store shelf or request a certain brand at the bar? In an industry bubbling with competition, success comes down to creating meaningful connections. In their book, Build Your Beverage Empire , authors Jorge Olson and Carlos Lopez write, “The consumer is your basis for your beverage empire. How do you find and sell to your perfect consumer over and over again? You do it by developing an emotional connection with them.” Consider Coca-Cola, which is lauded as one of the world’s most valuable brands and boasts an estimated global value of approximately $180 billion. While many caffeinated challengers have entered the market, Coca-Cola is winning the cola war. Nearly three-quarters (73 percent) of adults prefer Coke to Pepsi, according to Rasmussen Reports. People in more than 200 countries drink 1.9 servings of the carbonated confection every day, according to Coca-Cola. But Coca-Cola didn’t grow into the beloved brand it is today simply by making a great product—the company employed a variety of smart marketing strategies, including promotional products. The world’s largest beverage company was one of the first major companies to use promotional products in the early 20th century. Fans can view memorabilia and promotional items from years past at the World of Coca-Cola in Atlanta. There’s room for beverages old and new to shine. The trick is using promotional products to make a brand pop and to turn consumers into brand loyalists. Keep reading for some refreshing ideas and insights on the beverage market. | NOVEMBER 2018 | 51 GROW