Food
Gen Z Wants Flavorful Drinks. Here’s How Big Beer Is Trying To Attract Them
Beer and hot dogs are as patriotic as they get. However, when you open the cooler at your July 4th cookout, you may see fewer beers, with alternatives such as spiked seltzers, canned cocktails, and hard teas taking their place.
And you may blame the young people for it. According to NIQ’s Kaleigh Theriault, the youngest group of legal-age drinkers, Gen Z, ages 21 to 26, are “drinking completely differently than any other generation we’ve seen before.”
Beer | PixaBay Image
“They’re new to drinking, and when they do, they tend to gravitate toward flavor-forward categories,” Theriault, an associate director of beverage alcohol thought leadership at the consumer intelligence firm, told CNN.
Gen Z Wants Flavorful Drinks. Here’s How Big Beer Is Trying To Attract Them
Smaller companies’ beverages dominate the landscape. E. & J. Gallo Winery’s High Noon reigns supreme in the spirit-based cocktail category; Mark Anthony Brands’ White Claw remains the best-selling spiked seltzer; and newer entrants, such as Surfside, a two-year-old brand that mixes liquor with iced tea or lemonade, are quickly gaining ground.
That’s a problem for Big Beer, dealing with flat sales, declining volume, and an inconsistent generation of younger drinkers who have abandoned the bottle or prefer anything other than regular beer.
In response, Miller Lite producer Molson Coors Beverage Company, Modelo brewer Constellation Brands, and heavyweight Anheuser-Busch InBev are among the biggest brewers widening their portfolio with delicious concoctions.
Fruit, in particular, has been a focal point because “it’s something that the consumer seems to be drawn to right now, and they want to drink something really good,” Theriault explained. Those flavors offer that.
Constellation drew inspiration from TikTok for its new beer, which is inspired by the “Corona Sunrise” cocktail, which combines tequila, Corona, orange juice, grenadine, and lime juice. The beer has taken off on the video-sharing app, with the most popular tutorial receiving roughly 14 million views.
Because it is illegal to sell a beer mixed with a spirit, Corona created its version to appeal to younger drinkers: the “Sunbrew Citrus Cerveza,” which is brewed with orange and lime peels, blended with the same juices, and mixed with a Corona Extra to mimic the sweet flavor of the cocktail counterpart.
“This new brew was created with the flavor-seeking Gen Z audience in mind, a group of drinkers known for their experimentation and mixing,” remarked Saúl Trejo, director of brand marketing at Corona. For now, the drink is only accessible in the northeastern United States, but if sales are strong, it may extend nationwide.
Sunbrew joins Constellation’s portfolio of Gen Z-oriented beverages, including Fresca Mixed and its malt-based beverages, Corona Refresca and Modelo Spiked Aguas Frescas. Both have fruity flavors and are selling well for the brand.
TikTok has also impacted Molson Coors’ newest boozy beverage, “Happy Thursday.” What is the schtick? It’s non-carbonated because “bloating that may come from carbonation is considered a top barrier” for younger drinkers, and the habit of “decarbonizing” drinks is gaining popularity on the app.
The “smooth, bubble-free” drink is available in four fruit varieties, including strawberry and black cherry. Its low alcohol concentration of 4.4% by volume fits another Gen Z desire. According to the brewery, the drink also comes in vivid packaging meant to “pop on social media.”
Happy Thursday, launched less than three months ago, is experiencing growth in sales and distribution, and feedback has been “extremely positive,” according to the company’s blog. The company may provide more information about its sales during its next earnings report, due in August.
Happy Thursday fits into the company’s goal, which began in 2019 when Molson Coors changed its name to reflect its expanding array of beverages other than beer. That includes hard iced tea, energy drinks, and the Simply Spiked line. Last year, it purchased Blue Run Spirits, a cult beloved high-end bourbon and rye whiskey company, as US spirit sales surpassed beer sales.
“In order to remain relevant, suppliers must evolve and follow where the consumer is trending — and right now, the consumer wants flavor,” NIQ’s Theriault said of their pivots. “Innovation is really important in the alcohol industry and ensuring that innovation is tied to the consumer trends is what’s right for business.”
Building ‘beyond beer’
Canned cocktails and spirits-based beverages have also aided Anheuser-Busch’s bottom line in the United States, particularly given Bud Light’s declining sales. Its aptly named “Beyond Beer” division currently accounts for $1.5 billion of its global revenue and is helping to recruit younger, legally aged drinkers.
Beer | Pixa Bay Image
Two standouts are NÜTRL, a tasty line of vodka seltzers, and Cutwater Spirits bottled cocktails. An Anheuser-Busch representative told CNN that Cutwater, which sells canned rum mai tais, vodka mules, and tequila palomas, has “steadily grown dollar sales double digits for five consecutive years” and is up 23% this year.
Gen Z Wants Flavorful Drinks. Here’s How Big Beer Is Trying To Attract Them
Still, Anheuser-Busch’s prospects are not sunny, especially when a beverage has the Bud Light label. Bud Light Seltzer sales are down 50%, according to trade newspaper Brewbound, surpassing a bigger drop in malt-based seltzers as drinkers turn to spirit-based beverages. The company debuted a new advertising campaign in 2023, only a few weeks before the Dylan Mulvaney scandal sank its parent brand’s sales.
Despite younger customers’ reluctance to purchase beer and low sales, Big Beer businesses are not facing an existential threat. According to one expert, the reverse is true.
“Young drinkers can now find just about any kind of drink in almost any kind of flavor practically whenever they want, and they get to choose from the most diverse collection of beverages that has ever existed — with and without alcohol,” Bryan Roth, an analyst for Feel Goods Company and editor of the alcohol beverage newsletter, Sightlines+, told CNN.
“These long-established, often historic businesses are adapting to the market. What’s really interesting is that consumers are increasingly taking the initiative,” he said.
SOURCE – CNN
Starbucks drinks with soy, oat, almond, or coconut milk will no longer cost extra.
Starting next week, Starbucks customers will no longer be charged more for adding nondairy milk to their orders. According to the corporation, removing the non-dairy milk premium will result in customers paying around 10% less than they did previously.
In recent years, Starbucks has seen an increase in orders with milk replacements, similar to non-dairy alternatives in grocery shops. Starbucks began offering oat milk on its menu in 2021. After adding a shot of espresso, non-dairy milk is now the second most popular order change at Starbucks.
Starbucks Is Making A Popular Add-On Free Of Charge
Starbucks has significantly changed since new CEO Brian Niccol took over the troubled company in September.
Starbucks’ global revenues at outlets operating for at least a year fell 7% last quarter, while customer transactions decreased by 8%.
“Our financial results were very disappointing,” Niccol stated during the company’s quarterly earnings call. “It is clear we need to fundamentally change our strategy to win back customers and return to growth.”
Bringing back condiment stations and Sharpies.
Starbucks is moving swiftly under Niccol.
Starbucks is reducing promotional discounts through its mobile app to encourage customers to pay full price for its coffees and teas. Niccol aims to redefine Starbucks as a luxury brand that avoids discounting.
Despite reducing discounts, Niccol stated that the company had no plans to hike pricing next year. Starbucks has raised its costs in recent years, driving away some customers.
Starbucks also announced this week that it is removing its contentious olive oil-infused drinks from the menu, less than a year after its introduction.
The “Oleato” drinks will be removed from Starbucks’ menus in the United States and Canada beginning in early November as part of Niccol’s aim to simplify a menu he recently described as “overly complex.”
Starbucks Is Making A Popular Add-On Free Of Charge
In addition, Niccol stated on Wednesday that Starbucks intends to reinstate self-service condiment stations in locations. The business eliminated them at the start of the Covid-19 epidemic in 2020.
“Both our customers and our baristas say it would help them speed up orders,” he said.
Baristas who write customers’ names on drink orders in marker will also return as part of Niccol’s aim to create a coffeehouse ambiance at the business and give it a “human touch.”
Starbucks (SBUX) shares were steady during regular trading but rose 0.5% after hours.
SOURCE | CNN
Food
McDonald’s Quarter Pounder Back On The Menu After Testing Rules Out Beef Patties As E. Coli Source
Los Angeles —McDonald’s announced on Sunday that Quarter Pounders will be back on the menu at hundreds of its locations after testing ruled out beef patties as the cause of the E. coli outbreak linked to the popular burgers. The outbreak killed one person and affected at least 75 others in 13 states.
According to McDonald’s statement, the US Food and Drug Administration continues to believe that slivered onions from a single supplier are the most likely source of contamination. McDonald’s said it will resume selling the Quarter Pounder at affected restaurants—minus the slivered onions—in the next week.
As of Friday, at least 75 people in 13 states were sick, according to federal health officials. The Centers for Disease Control and Prevention said that 22 persons were hospitalized, two of whom suffered a serious kidney disease consequence. One person died in Colorado.
McDonald’s Quarter Pounder Back On The Menu After Testing Rules Out Beef Patties As E. Coli Source
Early FDA analysis revealed that the uncooked slivered onions used on the burgers “are a likely source of contamination. ” McDonald’s has confirmed that Taylor Farms, a California-based produce company, supplied the fresh onions used in the outbreak-affected locations, which came from a facility in Colorado Springs.
When the outbreak was revealed on Tuesday, McDonald’s removed the Quarter Pounder burger from menus in numerous states, primarily in the Midwest and the mountains. McDonald’s said on Friday that slivered onions from its Colorado Springs facility were supplied to about 900 of its restaurants, including those in transit hubs such as airports.
On Tuesday, the firm announced that slivered onions sourced from the factory were removed from its supply chain. McDonald’s will discontinue sourcing onions from Taylor Farms’ Colorado Springs factory “indefinitely.”
According to McDonald’s, the 900 McDonald’s restaurants that previously received slivered onions from Taylor Farms’ Colorado Springs facility will start selling Quarter Pounders without slivered onions.
McDonald’s reported that the Colorado Department of Agriculture’s testing ruled out beef patties as the source of the illness.
The Department of Agriculture acquired many fresh and frozen beef patties from various Colorado McDonald’s outlets linked to the E. coli inquiry. The department reported that all samples tested negative for E. coli.
While it is unknown whether the recalled onions were the source of the illness, numerous other fast-food restaurants, including Taco Bell, Pizza Hut, KFC, and Burger King, removed onions off their menus in specific areas this week.
As of Friday, Colorado had the most illnesses recorded, with 26. The CDC reported that at least 13 persons were affected in Montana, 11 in Nebraska, 5 in New Mexico and Utah, 4 in Missouri and Wyoming, 2 in Michigan, and 1 in Iowa, Kansas, Oregon, Wisconsin, and Washington.
McDonald’s stated Friday that it did not remove the Quarter Pounder from any further restaurants but that some occurrences in states outside the initial region were related to travel.
McDonald’s Quarter Pounder Back On The Menu After Testing Rules Out Beef Patties As E. Coli Source
According to the CDC, several persons who got sick reported traveling to other states before symptoms appeared. At least three persons reported eating at McDonald’s throughout their trip. Illnesses were reported from September 27 to October 11.
The outbreak is caused by infections with E. coli 0157:H7, a bacteria that produces a deadly toxin. According to the CDC, it causes over 74,000 infections in the United States each year, resulting in over 2,000 hospitalizations and 61 fatalities.
Symptoms of E. coli poisoning can appear fast within a day or two of eating contaminated foods. They often include fever, vomiting, diarrhea or bloody diarrhea, as well as indicators of dehydration such as decreased urination, increased thirst, and dizziness. The illness is particularly deadly for children under the age of five, the elderly, pregnant women, and those with compromised immune systems.
SOURCE | AP
Despite a deadly E. coli outbreak related to its Quarter Pounders, McDonald’s insisted Wednesday that customers can order from its locations with confidence.
McDonald’s U.S. President Joe Erlinger stated in an interview with “Today” that the business has withdrawn the Quarter Pounder from its menu in the ten states where dozens of people were sickened, as well as in several additional states.
McDonalds Tries To Reassure Customers After Deadly E. Coli Outbreak
According to a preliminary study by the United States Food and Drug Administration, raw onions placed on Quarter Pounders are a potential source of contamination, and McDonald’s says its initial results indicate that some of the reported illnesses are linked to onions from a single supplier. The U.S. Department of Agriculture is looking into the hamburger meat.
“What’s important today is that we’ve taken the action to protect the American public and promote public health,” according to Erlinger. “We’re confident that we’ll see our way through this and will restore confidence for the American consumer to come to McDonald’s.”
The epidemic was reported late Tuesday by the United States Centers for Disease Control and Prevention. It stated that 49 infections were detected between September 27 and October 11 in Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, Oregon, Utah, Wisconsin, and Wyoming. One person died in Colorado, and ten others were hospitalized. All of them mentioned eating Quarter Pounders, which are beef burgers topped with pickles, slivered onions, and a sesame seed bun.
E. coli has a short incubation time, so anyone infected would notice symptoms right away, according to Donald Schaffner, a food safety expert at Rutgers University. “If you ate these burgers in September and now it’s the middle of October and you didn’t get sick, you’re probably OK,” remarked the gentleman.
McDonald’s Tries To Reassure Customers After Deadly E. Coli Outbreak
E. coli bacteria can be found in animals’ stomachs as well as in the environment. Infections can produce severe symptoms such as fever, stomach cramps, and bloody diarrhea. People who suffer signs of E. coli contamination should seek medical attention immediately and disclose what they ate.
According to Erlinger, the infected product may have already made its way into McDonald’s supply chain. However, the corporation will work closely with the authorities and cooperate with the investigation, he stated. Erlinger declined to identify the source or confirm whether it serves other restaurant companies or grocery stores.
McDonald’s shares plummeted 4.5% in early trade on Wednesday.
SOURCE | AP
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