Getting older 'is driving Gen Z to drink'... and alcopops are coming back in fashion
Nik Jhangiani, interim chief executive of Diageo, the makers of Smirnoff Ice and Guinness, said that as Gen Z clamour for canned cocktails and alcopops, there was a 'huge opportunity' to win over a notoriously anti-drink generation.
Jhangiani said the latest generation to hit up pubs and nightclubs bucked the typical trend of being introduced to alcohol through beer, instead choosing spirits and pre-made cocktails.
The Diageo boss, who was made interim CEO after the firm parted ways with previous leader Debra Crew, said that the firm was looking to serve up 'a huge range of choices' to young people, who would have more flavour and calorie choices.
He pointed out that his firm had once been a leader in the alcopops business, thanks to the Smirnoff Ice bran, and that the company would soon 'rightfully have the ability to gain that [position] back', pointing to a new advertising campaign for the brand across nearly two dozen countries in June.
Jhangiani's comments come after data from drinks firm IWSR showed 73% of Gen Z have consumed alcohol in the last six months, a massive rise from two years ago when the figure was just 66%.
Richard Halstead, the head of consumer insights at IWSR, suggested previous surveys indicated that young people were drinking due to cost of living crisis.
He said: 'The idea that Gen Z drinkers are somehow fundamentally different from other age groups isn't supported by the evidence. For instance, we know that beverage alcohol consumption correlates with disposable income, and Gen Z came of age during a cost of living crisis.
'Rising prices have been especially acute in bars and restaurants — places that appeal most to Gen Z drinkers.
'With every year that passes, more Gen Z drinkers are entering the workforce, and those already in the workforce are typically earning more.'
Gen Z still remains less likely to drink than the rest of the population, with the survey finding that millennials, those aged between 28 and 44, were the most likely to drink.
In the past six months, 83 per cent of millennials said they had drunk alcohol followed by Generation X at 79 per cent.
Meanwhile, only 72 per cent of baby boomers, people aged 60 and over, consumed over the same time period.
The research found that Gen Z drinkers were most likely to engage in 'intermittent abstinence', as nearly 60 per cent had done so compared to 40 per cent of all drinkers.
Halstead believes the survey results were positive for alcohol businesses, and sys that the recent struggle is 'definitely not the fault of Gen Z'
He added: 'The good news for the beverage alcohol industry is that, while moderation is set to be a long-term factor, consumption is not in a tailspin.
'According to this evidence, much of the recent decline is cyclical, not structural — and is definitely not the "fault" of Gen Z.'
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