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## Transforming Consumption Patterns: What Does the Future Hold for the Booze Sector?
**Important Points:**
* A reduced amount of liquor is being consumed by younger citizens of the United States in comparison to older age brackets. Beverage company leaders have differing opinions as to the cause.
* Lawson Whiting, head of Brown-Forman, believes that the primary reason young individuals are reducing their intake is financial difficulties.
* Bill Shufelt, the head of Athletic Brewery, thinks a change in attitude toward liquor is a more important cause.
**Is Booze Becoming Less Popular?**
The younger demographic in the United States is consuming less liquor than previous generations, and the leaders of beverage firms are arguing about the reasons behind this pattern. Is it a short-term economic issue, or a more permanent cultural change? Regardless, they recognize that the sector is witnessing a change in purchasing behavior.
For example, a Gallup poll from the previous year showed that younger individuals are more conscious of the health risks associated with liquor and are lowering their intake. Bill Shufelt, head of the non-alcoholic beer firm Athletic Brewery, stated at a UBS conference in Manhattan this week that the shift in how Americans perceive liquor is more important than the sector realizes.
Shufelt mentioned that studies reveal that almost half of Americans want to reduce their intake, and this desire is especially noticeable among Millennials and Gen Z. They’ve received better health education and have a wider range of non-alcoholic options available.
Research from IWSR, a global insights and data firm, shows that in 2024, half of Millennials and 60% of Gen Z went without drinking for a week or longer in a six-month period.
Shufelt emphasizes: “I believe these generational awareness differences are potentially very important, and it’s still quite early. Consumers have yet to fully communicate that message up the distribution network.”
A Morgan Stanley expert degraded Brown-Forman (BF.A; BF.B), the manufacturer of Jack Daniel’s bourbon, earlier in the month. The article cited that the growth rate of spirits in the United States probably will not return to its historical 4% plus, due to changing demographics (fewer Gen Z drinkers), health/wellness trends (including the influence of GLP-1 drugs), and the structural pressure from cannabis.
Anheuser-Busch InBev (BUD), the business behind Budweiser and Michelob, assumes the shift may be from COVID-19 anomalies. CEO Michel Doukeris referenced his 22-year-old daughter, who did part of her college on Zoom, asking him how to manage her first work happy hour.
Brown-Forman CEO Lawson Whiting remarked at a UBS Group occasion that younger Americans are spending less on alcohol. He doesn’t think health concerns are the primary reason this group is cutting back.
Shufelt assumes that part of the change in taste might be more transitional, mentioning economic pressures and rising alcohol prices. He emphasized that traditional alcohol businesses can still connect with people, and alcohol, as a 5,000-year-old trend, isn’t going anywhere.
Whiting explained, “If you’re 21, 22, 23, and just out of college or something, you’re super strapped.” He added that many consumers are cost-aware, so they’re buying smaller amounts of alcohol to save money. Ripple (XRP) Value Anticipation – March 15
Doukeris stated at the UBS event, “COVID was a super disruptive event that trapped 17, 18-year-olds, and now they’re of legal drinking age, and not everyone has begun.” He added that as people approach their mid-20s, they’re seeing some normalization of behavior.
