How can we get them to put down the phone and pick up a beer?
Whenever I post a story about the struggles facing the beer industry today, someone quickly responds, “Young people don’t drink anymore,” or some version of that sentiment. While it is a massive blanket statement, there is evidence showing that this generation of young adults is drinking less than previous generations did at the same age. It’s not a hopeless situation, but if we want to convince Gen Z to drink craft beer, we must understand a few things about them. Then, armed with a better understanding, we can devise a better strategy.
I should point out two things. First, I don’t like talking about an entire generation of individuals in broad, absolute terms, but I will for the sake of this article. Second, any current reports or insights only provide a snapshot of a moment in time–a picture of where Gen Z is at right now. No one knows how this generation will age. Will the same things matter to them in ten years? No one knows.
It’s Not About the Money, It’s About the Money
A recent report from the Brewers Association points out that Gen Z is strapped for cash. Millennials and Gen X were also strapped for cash as young adults, but Gen Z spends less money. Not just less money on alcohol, but less money period. It’s a bit confusing, but the basic fact is that, for whatever reason, this generation is spending less and, thus, less on alcohol. That is, compared to when the previous generations were young adults.
It’s about priorities. “Young people have always been relatively broke, but previous generations allocated a higher percentage of their consumption dollars in early adulthood to alcohol,” said Matt Gacioch, Chief Economist for the Brewers Association. “The shift isn’t necessarily about having less money, it’s about different spending priorities. And while lack of beer funds is real, it’s not the whole story.”
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Where They Spend
Whether alcohol is a priority or not, Gen Z is thoughtful about how it spends its money and is likely to research things before buying. According to a report from the American Marketing Association, 75% say they read comments before committing to a purchase, 74% visit the brand’s website, and 72% check product reviews. Those comments and reviews carry the most weight, with 35-39% of Gen Z saying reviews impact buying decisions. Recommendations from friends and family are also valuable (28-31%). Surprisingly, endorsements from “influencers” and celebrities are considerably less impactful, with less than 17% saying endorsements from influencers and celebrities drive their spending decisions.
Broadcasting Their Lives
Generation Z is hyper-conscious of its image and, right now, it seems alcohol is not part of that image. In the age of TikTok and other emerging social platforms, this generation is broadcasting its life, or a version of its life, worldwide and in real time. Kantar, a research company that studies this kind of stuff, reports that 65% of Gen Z posts on social media regularly. Of those who post stuff on social media, 79% say it is an essential way of expressing themselves. Essential.
The Brewers Association report points out that for two-thirds of Gen Z, the decision of what to do and what interests to pursue is partly driven by how it will look on social media. They are attracted to a hobby or interest, in part, because of how it contributes to their public-facing persona. For Gen Z, it seems alcohol does not project the right kind of persona. They’d rather identify as fitness junkies, sun-seeking globetrotters, home chefs, or fashionistas than beer aficionados. As the graph below illustrates, Gen Z has a higher drive to look fancy. Alcohol, and especially beer, is not considered fancy.
Not Your Dad’s Beer
It’s not unique to this generation, but Gen Z wants to separate itself from the previous generations, said Gachion in the Brewers Association report. “This generation also shows a strong aversion to mimicking their parents’ and older siblings’ behaviors. It’s not rebellion for rebellion’s sake – it’s about forging their own identity. If the branding and messaging around craft beer feels like something their older sibling or parent would drink, that may automatically be a mark against it.”
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Craft beer is now Mom and Dad’s beer. There’s no getting around that. For Gen Z, it has always been there. That really amazing IPA from California is, to them, as interesting as Budweiser was to previous generations. Craft beer is no longer exceptional, rare, and niche. It is just beer. What can we do to address that reality? For now, accept it as fact and read on.
For The Health Of It
According to a report from Innova Market Insights, Gen Z has an above-average interest in mental and physical wellbeing compared to other generations. Yes, they count calories and avoid physically and emotionally unhealthy lifestyles, which might sound like bad news for craft beer, but there’s more to it than that. Innova’s reporting shows, “They consider fresh and natural products essential when seeking healthy food options, and they demand further sustainable and ethical value in their products.” Fresh and natural, sustainable and ethical? Sounds like an inroad for craft beer, calories be damned.
Gen Z’s interest in healthier lifestyles may create an inordinate interest in non-alcoholic beer, but I didn’t find compelling evidence or data to support that theory. NA beer has increased in popularity across all generations, but I found nothing to suggest the Gen Z is driving that increase. The NA part of NA beer might be desirable to Gen Z, but the beer part of NA beer is the same. It’s not cheap, it doesn’t necessarily promote the image they’re looking for, and IPA is viewed as dad’s beer regardless of ABV.
What To Do About It
All that stuff about Gen Z may sound pretty gloomy if you are trying to sell craft beer, but the Brewers Association report shows some sunshine peeking around the dark clouds. I also see some hope.
Not Just Authentic, but Authentically Authentic
Gen Z possesses a very keen bullshit filter. If properly applied, this might be Gen Z’s superpower. It is a generation that longs for authenticity. For example, it recognizes that any picture might be an AI-generated deep fake. Because it is the first entirely digital generation, and has always dealt with a barrage of online, computer-generated information, much of which cannot be trusted, the Gen Z bullshit detector is robust. So too is its authenticity detector, which could prove valuable for craft beer.
A brewery needs to speak Gen Z’s language, but only if it can do it authentically. Given the age of most brewery owners and marketing managers, this is a problem. Even if your brewery’s personality is as hackneyed as an old, over-told dad joke, own it. Being authentic is better than trying to sound like something you are not. Avoid the cringe.
“It is ill-advised to try to speak Gen Z’s language if that’s not your authentic brand voice,” said Gachion. “This generation has low tolerance for inauthentic behavior and will stay far away from brands that feel forced or fake (or “cringe”). Additionally, in the spirit of separation from past generations, the same messaging that successfully brought Millennials into craft beer a decade or two ago might actually repel Gen Z consumers today.”
Personality and Values
It’s not about being the best brewery; it’s about being an anuthentic brewery, a real company, and not a faceless operation void of personality and character. What adjectives describe your favorite brewery’s authentic personality? Is it laid back, frisky, and fun like Beach Cat Brewing? Is it whimsical and unapologetic like Cloudburst Brewing? Or, instead, is it dependable, capable, and approachable like grandpa’s favorite brewery? Yawn. Those are very valuable traits, but yawn. It’s not enough.
Craft breweries, by definition, are independent, small businesses. They are not faceless corporations. Personality and core values are a part of a successful brewery’s recipe. Your brewery has those, right? Lean into your authentic personality and values.
The Perception is Off
They have some learning to do. Gen Z has an image of craft beer that is not real. “Non-craft drinkers among Gen Z over-index on believing craft beer is tart and don’t think of craft beer as being made up of crisp, dark, hazy, or (to an extent) hoppy profiles,” said Gachion in the BA’s report.
Tart? What? Where’d that come from? People who don’t drink craft beer say it tastes tart. Weird. They’ve pre-judged craft beer without experimenting, and obviously they’re wrong. Craft beer tastes like many things but very few craft beers are actually tart.
It’s going to take some education to dispel that flavor misconception, but the education could pay off. Data from a Harris poll reveals that Gen Z prefers fruity, sweet, and light flavors. Craft beer is, more and more, hitting those notes. We need to teach them that craft beer is much, much more than tart. “The challenge is educating without being preachy,” says Gacioch.
Action Items
- As always, craft beer success starts with a good, tasty product. Never forget that. Make a product you are proud of and willing to stand by.
- More than ever, you want reviews. Inspire and encourage people to review your products and your business on social media, on websites, on mobile apps.
- Google yourself and stay aware of what people are saying about your brewery and your beers. Don’t just look at those reviews, really read them and understand where people are coming from. Remember, you are not marketing your beer to yourself, but to them.
- Do not get hung up on things that worked for marketing beer to Gen X and Millenials.
- Craft beer is a natural product, produced with natural ingredients, and without preservatives or other nasty stuff. Lean into that.
- If sustainability is a core value at your brewery, lean into that.
- Don’t be boring, but don’t be cringe. That is, don’t embarrass yourself by trying to look or sound younger than you are. Be authentically you. They’ll appreciate your authenticity more than your cringiness.
- Don’t preach, but without making them sound stupid, help them understand that your hazy IPA is hoppy and fruity, but not tart. Your porter is malty and rich, but not tart. Your raspberry sour is, on the other hand, tart. Gen Z likes flavors. All sorts of flavors.
It’s a weird situation. Some of the sharpest tools in craft beer’s toolbox are well suited to work on Gen Z, so maybe we are failing to use our tools correctly. If Gen Z appreciates authenticity and uniqueness, if this generation seeks a variety of flavors, we’ve already got a foot in the door. How do we kick the door all the way open? That is the million dollar question. Shoulders back, chin up, carry on.
Taking my own advice, I appreciate your feedback.
