The beer category’s “level set” expected at the start of 2022 never materialized, and the industry now needs to look to the future and stop benchmarking against the last couple years, Mary Guiver, global principal category merchant for beer at Whole Foods, shared last week during the Brewbound Live business conference in Santa Monica, California.
“Trying to get back to where we were and level out, that was years ago at this point,” she said. “Our customers are very different. We’ve got new drinkers. We’ve got drinkers who’ve given up drinking.”
The industry now needs to “look ahead” and “figure out the future,” Guiver stressed.
“There’s no level setting against anything at this point,” she said. “It’s forward looking.”
Meanwhile, Buffalo Wild Wings’ 2022 has been a rollercoaster, starting out with highs and then rolling in a valley of inflation and higher gas prices that cut into the discretionary income that would have been spent at its sports bars.
“This is just our new reality,” Jamie Carawan, Buffalo Wild Wings’ VP of brand menu and culinary, said. “We keep thinking that eventually we’ll get back to the 2019 sort of run that we were having. It’s not going to happen. It’s gonna be different. People’s dining habits are very, very different. Late night is still dragging.”
Getting inside consumers’ heads has also proven challenging, as there’s a dichotomy between those who want low-alcohol offerings and those seeking higher ABV products, Carawan added.
Guiver is running into consumers seeking those products at Whole Foods, but also those cutting back on their consumption or cutting it out altogether. Understanding those who are drinking less is a top priority for Guiver.
Additionally, Guiver is seeing more consumers looking for sale tags, although $25 4-packs of local craft beer are still selling at Whole Foods.
Carawan added that some Buffalo Wild Wings consumers are pulling back on the number of visits.
“If they were coming twice, they’re coming once a week,” he said. “If they were coming four times a month, they’re coming twice a month. And they’re really managing check right now. So we’re looking at how do we deliver value.”
Guiver cautioned bev-alc brands not to push price in 2023, and she encouraged beer producers to share with consumers that inflation hasn’t been as bad within the beer category.
“That’s the message that we should get out,” she said. “Inflation is around us. Inflation is in all the food products that you’re bringing home, it’s out when you’re going out to eat, but it’s not as bad as that in beer. Come hang out with us. Inflation isn’t as painful here. I don’t know how we get that message out, but I think it’s important that we toe that line.”
Nevertheless, craft beer remains a focus for both Whole Foods and Buffalo Wild Wings. Carawan noted that up to eight of Buffalo Wild Wings’ 32 taps are dedicated to craft beer, and the stores are open to local pint nights, particularly on Wednesdays.
“We’re going to be leaning in a big way with this this year,” he said.
Guiver and Carawan share several tips for working with their companies, including why self-distributing makes it difficult to partner with Buffalo Wild Wings, why the work doesn’t stop once you make it on shelf at Whole Food, how important it is to keep meetings on time and on point, why it’s important to understand their respective business models, what they’ve learned about Gen Z consumers, and much more.