Social media campaigns and event marketing may be the most effective ways to market bev-alc brands to the youngest legal-drinking-age (LDA) consumers, Amit Patel, senior VP of strategic partnership and ad monetization for the e-commerce alcohol delivery platform Drizly, said during a webinar this week on Generation Z.
Patel co-hosted the webinar with Emily Bibeault, director of e-commerce at the spirits company Campari, whose portfolio includes Aperol, Skyy Vodka and Wild Turkey bourbon.
Gen Z consumers – defined by Drizly as anyone born in or before 1997 – account for 20% of the total U.S. population, but only 5% share of Drizly’s total sales. However, Patel noted that more of the generation will become LDA in the next decade. Millennials account for the largest share of sales on the platform (53%), followed by Gen X (30%) and Baby Boomers (14%).
As more of the younger generation enters the bev-alc space, Patel emphasized that social media is one of the most effective ways to market to them, citing a Data Axle study, which found that 40% of Gen Z adults’ purchase decisions are mostly influenced by social media. Additionally, Gen Z is most likely to learn about new beverage trends through social media, Patel said, citing Numerator data.
“Social media platforms like TikTok, Instagram, and Snapchat have been among the top drivers of awareness and influence for Gen Z consumers,” Patel said. “This is a generation that grew up with technology, that grew up with connected platforms, they are true digital natives, and shopping online has really come second nature to them.”
The most effective social media advertising is “frictionless” and does not intrude on consumers’ digital media interactions, Bibeault added. She said Campari has found collaboration advertisements with influencers on Instagram have helped to bring bev-alc brands into consumer conversations.
Gen Z also has unique drinking habits compared to previous generations. While millennials tend to associate alcoholic beverages with relaxing occasions, Patel said Gen Z consumers associate these drinks with “fun and social” occasions, and have a greater desire for experiences.
“Music in particular is a major influence for this generation,” he added. “It’s led to occasions tied to concerts, festivals, and other music-inspired events.”
To use events to drive sales, particularly after two years of limited in-person occasions due to the COVID-19 pandemic, Bibeault suggested tying e-commerce into experiences.
“It’s not just that experiential moment, it’s a place where we can drive commerce as well,” Bibeault said. “So some things we’re doing [are] we have QR codes on site where you can scan that and you’ll get information on how to get it delivered by Drizly when you get home.”
What is Gen Z Drinking?
Patel also detailed Gen Z purchasing behaviors on Drizly in various bev-alc categories.
While Gen Z consumers over-index in beer sales on the platform – beer accounts for 21% of Gen Z sales, compared to 15% for other generations – Patel said Drizly includes hard seltzers and other alternatives in the beer category. Liquor (48%) accounts for the largest category share for the generation, followed by wine (28%).
The segments with the highest share of Gen Z beer category purchases in the last 12 months include hard lemonade (14%), hard iced tea (13%) malt liquor (13%) and hard seltzer (10%). While Generation Z tends to have diverse consumption habits, Patel said both new and older brands have been able to compete for attention. The top two brands for Gen Z within hard iced tea are 2-year-old Loverboy and Boston Beer Company’s 20-plus-year-old Twisted Tea.
“With more diverse populations in this generation, we’re actually seeing more diverse categories share shifts as well,” Patel added.
In the spirits category – which includes ready-to-drink canned cocktails (RTDs) – Generation Z over-indexes on Soju (26% share), tequila (8%), RTDs (8%), and rum (7%), compared to the generation’s 5% share of total liquor.
“When we look at sales on our own platform, this audience is actually over-indexing on purchasing brands from historically marginalized groups,” Patel said. “Specifically, we’ve seen women-owned brands, as well as Hispanic-owned and [Asian American and Pacific Islander]-owned brands really look to grow increase in awareness and sales on our platform.”