Drinking with Friends? The Sociable Category in an Unsociable Age

In marketing, there are few categories more inherently sociable than alcoholic beverages. Rum drinkers partying on the beach to Latin rhythms; cider drinkers clinking glasses in a bucolic summer haze; urbane professionals gathering for an afterwork beer in a slick, neon-lit bar... the language of drinks marketing is all about getting together.

But what happens when this sociable category comes up against our increasingly unsociable tendencies? Studies have shown that gen Z are socialising less in-person than previous generations, the rise of streaming and video games are keeping us glued to our sofas and inflation in parts of Europe, North America and Australasia in particular means that heading out to a bar, club or restaurant is becoming a rare treat. In the UK, an average of 80 pubs closed every month of the first quarter of 2024 , and in 2022 one club was closing every two days. In both London and New York, it’s harder than ever to find eating and drinking spots to while away the wee small hours as the after hours economies dwindle.

The softening of what those in the biz call the on-trade (bars, clubs, hotels and restaurants that sell drinks) is by no means a global phenomenon, with the bar scene across Asia booming and markets like Dubai really taking off. 

Nonetheless, these changes in socialising habits are unavoidable for marketers in the drinks space. However, as many challenges as this presents, there are lots of opportunities to be had.

“In-person socialising and the beverage sector go together like bread and butter, a pairing as old as time, “ says Alex Beerden, group strategy director at FCB New York. To understand the way our changing social habits are shaping the drinks sector, we first need to understand the nature of the relationship between socialising and the sector in a marketing context.

For Alex, who works with brands like Budweiser and Michelob Ultra, socialising and communal experiences relating to sports and music are key. “For the brands we work with, it’s an important part of building occasionality, frequency and community. We’re very focused on consistently creating and belonging in moments where people get together and experience our brands/products with others to entrench them in these much-loved rituals.”

In-person socialising outside of the home - whether special events or at bars and clubs - is crucial for any brand or product looking to crack a new market. According to Anna Beatty, strategy director at Iris, there’s a very straightforward reason for this: It’s where people are more likely to give something a try.

“In-person socialising is critical for alcohol brands focused on growth and increasing awareness in the market,” she says. “Established brands can create impact with audiences online without heavily relying on trial or word of mouth. This year we kicked off a relationship with Monkey Shoulder in the US. It’s a premium scotch whisky made for mixing, beloved in niche circles of whisky drinkers, and the brand is ready to capitalise on its potential as a socially forward drink.”

Anna is fascinated by the idea of the ‘viral trial’. “We’re looking to understand the phenomenon behind specific drinks that explode in popularity directly related to in-person socialising. Drinks like the Aperol spritz that cemented its place as the ‘cocktail of summer’ in 2022. Or the Moscow mule that passed over the margarita as the most googled drink in 2017. More recently, the espresso martini has taken over (to many bartenders’ dismay). These drinks have seen a boost in popularity because of in-person socialising, creating a ripple effect of ‘Oh, I’ll have that too’. 

At Momentum Worldwide, recent in-depth studies they’ve conducted on behalf of a major vodka brand confirm this phenomenon. “On-trade experiences continue to be enjoyed by drinkers as opportunities to be more playful and adventurous, to experiment with flavours and try new cocktails,” explains Alessandro Camaioni, UK strategy director at Momentum Worldwide. The impact goes beyond that first try. “Once built, positive memory structures become then particularly influential for shoppers, as they approach new in-store purchases with a lingering desire to recreate the buzz felt when they were out. “

Beyond trial, the social context and the memories formed are instrumental when it comes to brand building. “Socialising in person plays a crucial role for our drinks clients as it lets them create memorable experiences, foster a sense of community, and build brand loyalty among their consumers,” says Michael Lamb, creative strategist at M&C Saatchi TALK. He compares an online virtual whiskey tasting with an in-person event where bartenders can share their expertise with enthusiasts.

“This type of face-to-face interaction helps to build a sense of belonging within the industry and strengthens the emotional connection between the consumer and the brand,” Michael continues. “It also gives the brand the chance to highlight its heritage, craftsmanship, and the unique characteristics of its products, that lives beyond the bottle. And this deeper appreciation and understanding of the brand's story only enhances the consumer's relationship with the brand.”

The explosion of low and no alcohol alternatives to our favourite bevvies dovetails with our changing social habits.

Anna Beatty explains, “People across all demographics are consciously trying to drink less alcohol and focus on moderation. ‘Dry January’ – a period of no drinking for the month of January – or in the US, ‘California sober’ – choosing no alcohol but using marijuana – are becoming increasingly popular lifestyle decisions,” she says. “These behaviours are important for brands to evaluate, because addressing them head-on will uncover more opportunities than ignoring the lifestyle changes all together. For example, Hendrick’s Gin did a campaign called ‘Hendrick’s Gym’ to ‘train gin lovers to perfect their cocktail-making skills throughout the one sober month of the year’.”

The growing acceptance of low and no alcohol options and, indeed, the de-stigmatisation of sober socialising in traditionally alcohol-heavy settings like pubs and barbecues opens up new marketing opportunities and new creative stories to tell.

“I think now everyone’s much more accepting and so brands have lent into that as well, which can only be a good thing,” says Jamie Fleming, head of copy at Purple Creative, an agency that works with many drinks brands.

Tamryn Kerr, co-founder and CCO at Hijinks, concurs, saying she relishes the challenges and opportunities offered up. “The fact is that true creatives love testing, bending and playing with the rules. So, when it comes to new non-alcohol variant regulations, this simply tightens the brief and offers up a more defined playing field,” she says. “Let’s go!”

Premiumisation is a huge trend in the drinks industry, particularly in spirits and ones that goes hand in hand with moderation. “It basically means that people are buying less but they’re buying better,” explains Jamie, which in the on-trade market manifests in treating a bar trip as a special treat for a fancy cocktail rather than hitting the bars a couple of times a week. In the home market, people may decide to buy a nicer, mid-range bottle of spirits less frequently that they might have bought cheaper options.

“The spirits space is also seeing a major trend of ‘premiumisation’ where consumers are looking for more value and quality in their choice of alcohol,” says Anna. “They may still go out for a drink, but instead of consuming three or four beers or well drinks, they settle for one craft cocktail.”

With inflation and the cost of living combined with a desire to pursue healthier lifestyles, a drink with friends or a nice bottle of wine with dinner becomes more special, and this ‘specialness’ is an opportunity in itself.

“Understanding that moderation is to most people more appealing (and easier to achieve – see sober October and dry January growing popularity) than more radical lifestyle changes would allow brands to pursue more decisive premiumisation and portfolio expansion strategies – showing new avenues for consumers to be out, and be together, just without some of the, nowadays less fashionable, effects of a tipple too many,” explains Alessandro of the link between moderation and premiumisation.

Michael at M&C Saatchi points to a recent campaign that actively leans on this phenomenon. “Kahlúa's 'Stout's out' campaign for St. Patrick's Day encouraged drinkers to choose the drink they want, rather than the one that tradition expects, in response to the shift towards moderation.” 

He also sees this in the rise of foodie culture, driving pilgrimages that relish in the provenance and heritage of high quality produce. “Additionally, the growing trend of food and drink-focused travel has led Irish distillers to redevelop the Midleton Distillery Experience, offering Irish whiskey fans a unique, immersive journey into the history and craftsmanship of Irish whiskey," says Michael.

Similarly, Diageo has committed £185m to invest in Scotch whisky and tourism, including its flagship Johnnie Walker experience in Edinburgh, which is all about giving visitors a cutting edge adventure.

Indeed, that premiumisation might also find a counterpart in the venues that people choose to frequent as well as the drinks that they choose to go for. If people are socialising less, perhaps they want to make those experiences a bit more distinct when they do go out.

Alessandro points to the launch strategy of George’s Clooney’s tequila brand, Casamigos, as an example of being careful and selective about where one shows up. “I think the secret as always is not to force people to go out of their way to meet a brand, rather to find a brand where and when they already want to be. Brands who understand what’s happening in culture, unequivocally, win… [Casamigos] capitalised on the existence of a community of like-minded people already gravitating towards more reserved, premium meeting spaces. Using the allure of both that community, and of those clubs on the rest of the market, Casamigos is – like Rochambeau Club – building a highly desirable world, and one that people want to be part of. It’s through the creation of such strong experience platforms, not through gimmicky one-offs, that brands can attract consumers back to the bar – and back together.”

One thing that Jamie Fleming finds particularly exciting is the way that brands have responded to changes in our social habits by finding new kinds of occasions. “Brands are creating or chasing occasions,” he says. ”They’re definitely trying to make themselves more versatile and I think they’re doing that through innovation... Lots of people talk about this innovation in the booze industry, I don’t think it’s ever been a better time or more dynamic. It’s constant and it’s all because you’re trying to attract the new consumer or make your own brand more versatile to be consumed in different occasions.”

Jamie observes that this can have an impact for both the on-trade and off-trade. He draws a connection between the flavour innovation that he’s observed across the spirits world, even in the ‘sacrosanct world of Scotch or traditional whisky’ and the sector’s creative embrace of more diverse occasions. Case in point, Grant’s Whisky’s pineapple-flavoured Tropical Fiesta. “I think it all ties into this new occasion. It screams daytime to me, which is barbecue. It’s not ‘drinking it neat in a leather armchair’. It says, ‘drink it with sparkling water as a highball,” he says.

A lot of alcohol marketing, particularly to the home market, is about showing consumers what’s possible. Jamie compares this to the famous Tesco recipe cards, where the UK supermarket can have a large impact on buying behaviour by showing shoppers what’s possible. 

The team at Diageo confirms Jamie’s observations. “Consumers are re-imagining the very essence of socialising. Dynamic venues and evolved occasions provide a canvas for them to shape novel and memorable experiences, nurturing an environment that fosters genuine connections and enriching social interactions,” they say. 

In order to capitalise on new opportunities and occasions, marketers need to really listen and be keyed into pop culture. “Off-trade’s strengths sit more firmly on the value side of the consumer relationship: brands who best tap into existing occasions and behaviours are the ones poised to benefit the most – a promotional deal perfectly timed around the Eurovision finals is a great way to show your consumer you really understand when, and how, they think your brand is important for them,” says Alessandro, who points to Bailey’s embrace of Eurovision with a promotional competition and a host of themed cocktails to try.

Creating occasions or investing in new emerging occasions can be about giving at-home hosts a bit of added inspiration and a chance to show off, or it can be about making unique experiences with pop-ups and takeovers. That’s something that Diageo has been doing across its brands. Casamigos (now owned by Diageo) is renowned for taking over unique social spaces with pop up beach bars that bring a taste of Mexican tequila to consumers worldwide, from Sundance Film Festival to All Points East Festival in London and much more. Meanwhile, Smirnoff has chosen to invest in creating spaces for these consumers to foster connections once again. It is true to the brand’s core values and will build longer term brand affinity for consumers vs just pivoting to target a more readily available space.

When it comes to creating occasions, the drinks sector has long been packed with brands jostling to stand out in the live music and sports spaces. Now, brands have to be more creative and curious than ever in order to appeal to new audiences. They also have to make the effort of getting out and engaging worthwhile.

Alex and the team at FCB New York have been consciously striving to make their experiences more inclusive and accessible. “There are a few ways we’ve navigated the changing landscape. Some recent work from the agency that comes to mind are for Budweiser and Michelob ULTRA, which did this in different ways. For our Budweiser ‘The Billboard Is Yours to Take’ campaign, we leveraged a physical billboard and turned it into a stage for emerging women and non-binary artists, creating a new moment for people to come together in person at the event and online to connect over their love for music. For Michelob ULTRA ‘Dreamcaster,’ we set out to break down the obstacles for visually impaired people to experience and enjoy a live sporting moment, bringing the joy of live sport to all basketball fans.”

 

Helping people to jazz up their at-home hosting and creating bespoke events and pop-ups is all very well, but what of the pubs and clubs that are still such an important sales channel for drinks brands? 

As with premiumisation, there needs to be an effort to make the experience of heading to a bar a bit special. More than that, it needs to be special AND look good on social media, suggests Alessandro.

“On-trade must revolve around turning a simple drink into an unmissable moment to remember. Brands must make any effort to elevate the moment of consumption, turning it into a show-stopping (and TikTok-ready) experience. In this sense, partnering with the right venues, talent and IPs is not just a mere badging exercise, but a way to elevate the passions of their core demographics.”

This year at Cannes, one of the most successful drinks sector campaigns was Heineken’s Pub Museums. The project from Publicis Dublin, LePub Milan and THINKHOUSE won four gold Lions, and four silver Lions - smashing the Irish record for the most Lions won for a single campaign. The campaign sought to help pubs both with the rising costs of running their business by using AR to turn them into museums, thus making them eligible for certain financial benefits. This also helped preserve and celebrate the pubs’ important social history and, crucially, added a novel layer to the pub-going experience, making it more unique.

From virtual cocktail classes to at-home pub quizzes, during the covid-19 pandemic, we embraced online alternatives to help us socialise. Some enterprising brands even embraced the then-trendy metaverse, with virtual parties. Could this be the answer for drinks brands?

In the cold light of day, though, what are the prospects for online socialising from a marketing perspective? While gamers may like to crack open a few beers while playing with their friends online, visually, that can look an awful lot like drinking alone.

Looking back to his own lockdown experience, Jamie reflects. “I did wine tastings online. Wine companies would send you bottles in a case and everybody would gather, and you have an expert talking you through the wines. We did our Christmas party, like probably loads of people, online, and it, you know, it was really fun. But then you step out and look at yourself, and you're basically drinking on your own, and it's quite sad, isn't it? I don't think that's a vibe.” 

Michael Lamb at M&C Saatchi Talk reckons that virtual socialising could have a place, particularly as technology progresses, but it’s not necessarily the right solution for everyone.

“I don’t believe virtual worlds are a silver bullet for drinks brands in response to the decrease in in-person socialising, but in some cases, they can act as a bridge for some people and communities who may not have felt included and connected to brands. Absolut, for example, created Absolut.Land, a virtual destination in Decentraland that brought the Coachella festival experience to the metaverse and allowed the brand to connect with consumers globally, providing a shared experience that transcends physical boundaries,” he says. “So, as technology continues to advance and consumer behaviours evolve, brands like Absolut that embrace these new platforms and create engaging, community-driven experiences will be well-positioned to thrive in the digital age.”

Alessandro Camaioni, strategy director at Momentum Worldwide flags that there are unavoidable problems with leaning on virtual socialising. That doesn’t mean that there’s no role for technology, however. “Virtual socialising might present too many obstacles and ethical concerns to ever become a fertile territory for brands in this category. As a world lived by way too many people under drinking age, regulatory landscape and social scrutiny would probably prove to be excessive barriers for any stable presence on gaming platforms. Partnership-led content, on the other hand, might present itself as best way to bridge offline and online worlds – here, the strategy pursued by some of the brands owned by Pernod Ricard, from Absolut to Chivas Regal, seems to pave the way for a future of more seamlessly interconnected hybrid experiences.”

While fully virtual socialising might be problematic, there’s still space for marketers to bring some interactivity and digital creativity to play. According to Diageo, consumers’ conversations around technology are increasing, with a 134% spike in discussions about AI. And so Diageo is looking for ways to tap into that increased appetite for interacting with reality in innovative, tech-driven ways. This is less about virtual socialising but more about using tech to enhance your at-home get-togethers.

“There is a huge opportunity for brands and products to reach consumers in a more digital way. Diageo’s brands have already started to explore this in a number of areas, for example Seedlip have created ‘Elli’, an AI-enabled cocktail concierge that helps consumers learn about the brand’s cocktails, how to make them at home, as well as teaching consumers about the brand’s values. Don Julio has also more recently tapped into the trend, launching its first experience with Apple Vision Pro, helping bring tequila culture to fans around the world.”

The aforementioned Heineken Pub Museums campaign is a pertinent example of a hybrid digital experience that’s all about bringing a layer of technology to a traditional trip to the pub with friends and family.

What’s clear is that while the way we socialise is changing and, in some markets, there are huge challenges facing the venues where we usually get together over a drink, there are also opportunities for creatively-minded brands with a close eye on culture and consumer behaviour.

Moreover, as Michael Lamb points out, this isn’t the first time that the sector has had to surf the waves of change. “In recent decades, we've witnessed similar significant disruptions in how people socialise,” he says. “The ‘90s saw the rise of the club scene, where young people moved away from traditional pubs and nightlife towards a more niche, youth-driven culture centred around dance music and recreational drug use.” 

Alex Beerden agrees. And while there are economic pressures keeping people at home more frequently and a large segment of people - particularly gen Z -  are retreating from socialising full stop, for the vast majority of us, being with other people is a fundamental psychological need.

“In the category and world at large things are ever-evolving – technologies, behaviours, preferences. For all the changes we have and continue to experience, it’s also really important to remember the value in what doesn’t change,” he says. “Timeless human emotions and motivations are always the best levers for brands to pull. The joy of making a new friend, a new connection, a new memory, experiencing the world with others. Nobody wants to be lonely, so aligning your brand with timeless positive human emotions and insights positions you for success no matter the changing landscape. While the ‘where’ and the ‘how’ people are coming together is ever evolving, the ‘why’ and the ‘what’ remain largely the same.”