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"Gen Z's BS detector is finely tuned," wrote BA's Matt Gacioch this morning in an article titled "Why Gen Z Isn't Drinking Your Beer (And What You Can Do About It)." "It is ill-advised to try to speak Gen Z's language if that's not your authentic brand voice," he continued, but his advice wasn't limited to brand pitches. Matt crunched the numbers and presented numerous angles for brewers to pursue in their own pursuit of younger customers, reminding us that Gen Z is "not the enemy-far from it, in fact. Connecting with them can be your next great opportunity." Gen Z's $$ Share of Alc Purchases Equals That of Millennials Matt called Gen Z "a fascinating puzzle for craft brewers" not leastwise because Gen Z is, on the whole, buying far fewer alc bevs than previous generations. Citing Rabobank research, Matt found that Gen Z spent $3.6 bil on alc in 2023, compared to $25.5 bil for both Millennials and Baby Boomers and $27.5 bil for Gen X. Surprisingly, however, Gen Z spends an equal share of income on alc, 0.72%, as Millennials and more than Gen X (0.65%), with Baby Boomers topping the list at 0.83%. Long story short, while there are obviously social trends contributing to decreased consumption among younger customers, Gen Z is financially worse off than its predecessors, and that has manifested itself at the checkout counter.Maintaining "Carefully Curated Personas" Another big reason for Gen Z's pullback? Image management. Matt cited Kantar research showing "65% of the generation reports regularly posting on social media and 79% of Gen Z social media users cite it as an important way of expressing themselves," and "getting visibly drunk doesn't align with the carefully curated personas they maintain online." There's also the universal tendency for youngsters to avoid "mimicking their parents' and older siblings' behaviors" in the effort to forge their own identities, a feeling "probably relatable to anyone reading this."Authenticity, Authenticity, Authenticity Returning to the BS meter, Matt cautions that "this generation wants to find ways to connect in real life, but they often lack the infrastructure to do so naturally." Citing the influence of Covid, many of their formative social experiences were mediated by screens, and "creating genuine in-person community through programming events, and inclusive spaces isn't just good marketing, it's addressing a fundamental need.""Get Real About Pricing" Matt suggests highlighting flavor profiles over narratives, as "Gen Z is less interested in that story" than Millennials; he also endorses making space for low-alc (below 4%-ABV) products to align with health-conscious trends. But he hammers home the issue of pricing, urging promotions that get people in the door with the knowledge that they're often scraping to get by. Gen Z "feels like the economic deck is stacked against them," Matt notes, adding that "being one of the businesses that acknowledges this reality and offers genuine value can create tremendous loyalty." All of which is another way of playing the long game, which "isn't about abandoning your core brand identity or completely overhauling your business model." It's about understanding consumers, and being able to "adapt accordingly."

Gen Z Is "Not the Enemy," BA's Matt Sez: Spends Equal $$ Share As Millennials, Just With Far Less Money

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