The effect that COVID -19 has had on the drinks Industry

We are in the grips of a Pandemic and the effects that it has on our economy around the world in particular the food and drinks industry is unprecedented. There had been many discussions regarding the pandemic in relation to the food we eat, how we process our foods and future sustainability of food. But what effect has the pandemic had on the drinks industry in particular the changing habits and views of consumers.

As drinking houses, close during the pandemic, people began to drink at home and started to question what they drink. The recent revelations that unhealthy diets and obesity can dramatically increase consumers risk to the virus has raised further questions regarding what we eat and drink.  Chris Banks  CBE, the Executive chair of Cracker foods company and former managing director of Cocoa Cola believe that people are starting to question what and where to drink and as drinking establishments start to open many still decide to drink premium drinks at home. Banks believes that these are growing signs of changes in consumer behavior that has been accelerated by the pandemic.

The main trends discussed during this pandemic include -

• Adapting to home deliveries – Drinking establishments start to open but due to social distancing, the uncertainty of economies around the world, increasing unemployment and restriction of holiday visitors, customer numbers will take a long while to recover to pre-pandemic levels.  The craft drinks industry may need to review their strategy for home delivery options to try and boost sales and reach new audiences
• Studies have shown that more people are turning to non-alcoholic drinks. Before the pandemic there were increasing numbers reducing their consumption or even becoming teetotal. A survey showed that 1 in 3 people were trying to reduce their alcohol consumption during the pandemic. This will have a significant impact on drinking establishments which had invested in the surge of new craft beers, gins etc but only offering a few sugary non -alcoholic drinks
• The pandemic has got us to question our health. Research has suggested that poor health and obesity makes us more at risk to the virus this has helped to fuel the interest in vitamin and less sugar-based drinks.

The food industry which includes drinks more than ever, need to listen and act on the growing concerns and trends of its customers. The Pandemic has questioned the drinks industry more than ever before, the general consumer is starting to change their drinking habits and question their health. In addition, the question of supply chain management and the use of sustainable ingredients is of increasing concern. But as Banks says in his summary:

“In the age of coronavirus, times are tough and far from certain for the drinks industry. However, they are also filled with opportunity for growth and evolution. Drinks brands just need to watch new trends carefully, listen to their customers, and learn their new habits.

As more new and exciting trends emerge post-lockdown, there is a lot more to raise a glass to than you might think.”