Which social shifts are changing how we’ll eat, drink and celebrate
Shifts in Americans’ lifestyles and social time are spurring new opportunities for innovation for bars and restaurants, says Diageo’s Efrain Rosario.
The way people socialize is undergoing a seismic shift with profound implications for consumers, bars and restaurants. Global spirits giant Diageo recently embarked on an ambitious foresight initiative to understand the key macro forces and trends shaping the future of how we’ll celebrate life moments big and small away from home. Through that effort, the owner of Johnnie Walker, Guinness and Smirnoff brands identified three futures it sees as both possible and probable in the U.S. as a road map for industry players. Efrain Rosario, global head of futures and shopper planning for Diageo, walks us through that vision.
Kate MacArthur: What are the potential futures you’ve identified with Ipsos for socializing and beverages?
Efrain Rosario: We landed on three preferable futures, the first being what we call Meaningful Moments. That’s how consumers are expanding their definition of hedonism by infusing their everyday routines with sensorial delights to create these micro moments of celebration, while also thinking about what they can do to enjoy these epic revelations. The second is Structured Spontaneity, which is how consumers seek out reassurance to reduce the risk of a disappointing occasion away from home. This has become even more important than it was pre-COVID-19. The last is Connection Without Boundaries, recognizing that consumers are increasingly seeking opportunities both in real life as well as in virtual spaces to connect with like-minded individuals.
MacArthur: What’s changing in the way people are consuming beverages?
Rosario: One is what we call “better, not more, drinking.” People are elevating their expectations and choices based on the quality of the drink. The other thing we’re seeing is the “new nightclub,” where Sunday brunch is the new Friday night. We're seeing consumers opt to socialize earlier in the day, wanting to think about lower-tempo socializing.
MacArthur: What’s driving socializing earlier? Is it about people getting older?
Rosario: We also find that Gen Z and Millennial consumers are expressing desire for these new venues. A lot of times they say, “I want to socialize through some of the other activities that I have earlier in the day.” It could be at the gym, while shopping for clothes, while getting a haircut. My hypothesis is because we all feel like we're busier than we've ever been, there is this desire to multitask.
MacArthur: How has the shift in working from offices to home or hybrid work affected how we socialize?
Rosario: It's made us more eager to socialize with others. Also, the pandemic set off a geographic migration by consumers. In some cases, your socializing center is close to home because you're working 70% of the time from home. For those people who are spending time back in the office, people are socializing earlier in the day than they used to, close to their offices before heading home.
MacArthur: How is at-home socializing shifting?
Rosario: We all became much more adept at being able to re-create some of these experiences at home. It’s not just about the product. It's everything from arming people with the cocktail recipes or being able to give them tutorial videos that they can view from home with master bartenders where they show them how to make these amazing cocktails, or they show them how to prepare an amazing dish.
“We’re seeing … where Sunday brunch is the new Friday night. We’re seeing consumers opt to socialize earlier in the day, wanting to think about lower-tempo socializing.”
MacArthur: What’s determining whether we consume alcohol or something else?
Rosario: It's a combination of financial considerations, lifestyle changes and more wellness-oriented benefits. And by nature of that, those are driving the growth of low-alcohol and no-alcohol beverages. People's definition of wellness has evolved over time. We used to think about it only through the lens of physical wellness, and now we're considering things like our spiritual or our emotional wellness. So what are you doing to enhance my mood?
MacArthur: What are other beverage innovations?
Rosario: A lot of beverage brands are looking at gut health and herbal cocktails and how those herbs are providing some form of mood enhancement. The other thing we're seeing is people wanting to find those novel experiences. That manifests through wanting to experiment with flavors from different cultures. You think about even something as mainstream today as bubble tea. But that manifests not just in food and drink. Think about the popularity of things like K-pop or some of the TV shows that we're seeing on Netflix, and the proliferation of this content from other cultures.
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