Big 4 - Gen Z Gen Y

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FROM KNOWING BEER TO KNOWING CONSUMERS

THE BIG 4 UNDERSERVED CONSUMERS GROUPS


CONNECTING WITH GEN Z & GEN Y: A DUAL-GENERATIONAL OPPORTUNITY
THE BIG 4: IN-DEPTH UNDERSTANDING OF THE UNDERSERVED CONSUMER GROUPS:
WOMEN | 45+ | GEN Z & GEN Y | WORLDS OF PREMIUM
Dear Commercial Teams at HEINEKEN,

For the core of the Big 4 Project, Central CMI has selected big over-arching consumer themes that are relevant for all business units.
Together with our partners, IPSOS, we’ve curated the existing knowledge of past research projects in order to provide an integrated point of
view, inspiration and insights. This knowledge can be used to develop innovation, brand positioning, communication and activations
platforms as well as all other consumer-facing initiatives.
This distillation reflects the current dynamics on the topic. Central CMI will regularly update you to capture the ever-changing world of
consumers.

We remain connected,
The Central CMI team

WORLDS OF PREMIUM GEN Z & GEN Y CONSUMERS 45+ WOMEN


CENTRAL CMI RECOMMENTS THE FOLLOWING APPROACH FOR USING THE INSIGHTS
PROVIDED BY THE BIG 4 PROGRAM

REVIEW DISCUSS ACTION REVERT

The work of Central CMI Agree with your Shape your plans Challenge & inspire
is available for all teams commercial teams the and initiatives the global team
implications for your Share / Reapply
GC team/Region/ OpCo

3
NEXT STEPS – FOR THE ENTIRE BIG 4 & REFRESHED ROLE OF BEER PROGRAM

01 Share content with the Global Commerce teams / Regional Team / Opcos (all by Mid August)

02 Conduct ethnographic research to substantiate current knowledge (August- September 2021)

03 Use the content of “Big 4 underserved consumer groups” and distill fresh consumer insights (Sept 2021)

04 Support the business to build action plans and embed in the AP (Q3 2021)
CONNECTING WITH GEN Z & GEN Y:
A DUAL-GENERATIONAL OPPORTUNITY

„I’ve always done whatever I want and always been


exactly who I am.”

Billie Eilish
GEN Z ARE NOT A MINI-GEN Y: DIFFERENT LIFE STAGES. DIFFERENT VALUES. DIFFERENT EXPECTATIONS

ARE GEN Z & GEN Y A BIG BUSINESS Gen Z and Gen Y are different in terms of
01 OPPORTUNITY FOR BEER & BEYOND?
… BUT THE TWO
GENERATIONS ARE
values and expectations.
They are in different life stages and have
YES! By 2025, generations Z & Y will represent DIFFERENT IN VALUES
different vision of the world.
Therefore the vocabulary, brand narrative and
68% of consumer force, making them a vital source AND LIFE STAGES activations may look & feel very different.
of growth for the business.
Beer categories are less relevant for Gen Z, who
IS BEER RELEVANT AMONG GEN Z are less into alcohol overall. We need to expand
02 & GEN Y?
… BUT WE NEED TO
EXPAND REPERTOIRES
their repertoires beyond lagers with ZAB and
sweet(er) profiles, also accessible lagers.
YES! Lagers and other beer sub-segment BEYOND BEER AND OFFER Gen Y looks for new discoveries and favors
(especially non-lagers) are relevant to Gen Y and non-lagers, but there are also opportunities to
WIDER CHOICE offer more in ZABs and better for you
Gen Z, though both generations have different entry
points into the conversation. propositions.

ARE BEER BRANDS ADDRESSING THE … BUT BRANDS, FOR BOTH Gen Z is realistic and evaluates actions &
impact, they want brands and products to
NEEDS OF GEN Z & GEN Y?
03 YES! Overall, there are many brands and
NARRATIVE AND PRODUCTS,
NEED TO REFLECT THE
deliver on promises, be open to a dialogue and
see purpose (societal change, sustainability,)
solutions that speak to them across the portfolio, SPECIFIC VALUES AND SO as mandatory.
especially with Gen Y. RESHAPE THEIR PROMISE Gen Y is idealistic, seeks inspiration and
experiences, needs to be wowed by brands
TO CONSUMERS and products with variety and activations.
DEEP DIVE INTO THE WORLDS OF
GEN Z & GEN Y

A STORY ABOUT GEN Z & GEN Y: THEIR


CONTEXT, ATTITUDES AND VALUES

GEN Z & GEN Y AS CONSUMERS: BUILDING


INCLUSIVE BRANDS SUCCESSFULLY

DEEP-DIVE: GEN Z & GEN Y MOTIVATIONS


AND INSIGHTS THAT MOBILIZE BROADLY
Gen Z

A STORY ABOUT
GEN Z & GEN Y:
CONTEXTS, ATTITUDES Gen Y

AND VALUES

8‒
8‒
FIRST: LET’S ALIGN ON THE DEFINITIONS…

Gen Z Gen Y

Born between 1995 - 2003 Born between 1981 - 1996


Global (18+) population: 1 billion Global (18+) population: 1.7 billion
people in 2020 people in 2020
Tend to be PRAGMATIC Tend to be IDEALISTIC
Focused on SAVING MONEY Focused on having EXPERIENCES
Digital NATIVES Digital PIONEERS
MASSIVE COHORT WITH SPECIFIC DYNAMICS: 2,7 BILLION LDA+, HIGHEST NUMBER IN
APAC, HALF POPULATION OF AMEE

EUROPE
54m Gen Z (18+)
NORTH AMERICA APAC
150m Gen Y
36m Gen Z (18+/ 21+) 500m Gen Z (18+)
140m Gen Y 1,1 billion Gen Y

LATAM
AMEE
60m Gen Z (18+)
114m Gen Y 175m Gen Z (18+)
275m Gen Y
MACRO FORCES THAT IMPACT GEN Z: PROGRESSING WITH DIGITALIZATION, CONSCIOUS
AND COMMITTED TO RESHAPE SOCIETIES AND GLOBAL PRIORITIES
DIGITAL NATIVES CONCERNED ABOUT THE PLANET
GEN Z have strong points of view and want to be heard, but in
super aging geographies such as Europe and Asia this may
create conflicts. In AMEE younger generations have more
opportunities to shape society according to their values. Gen Z
do not believe in openness and diversity; they ARE the diversity.
Inclusion is key.

Climate change and environmental issues are more personal as


impacting them directly and their future. They are concerned
about sustainability and therefore demand long-term actions.

They question consumption and consumerism.

They are the most digitally educated generation ever – having


access to information and being natively predisposed to know
how to handle data makes them confident to adapt and shape
the innovation in every domain.
MACRO FORCES THAT IMPACT GEN Y: PROGRESSING, BUT FACING GREATER SOCIETAL AND
ECONOMICAL HURDLES
FINDING SELF-REALIZATION IN UNSTABLE FINANCIAL WORLD
GEN Y is a massive cohort around the world.
Women are more empowered and active. Family is often
postponed in favor of self-realization and can be difficult to
combine it with a career. Gen Y families are smaller, and they
rely on their network.

The world Middle class is growing, but Gen Y are likely to be


poorer than previous generations. Money can change fast,
therefore they invest in the now.

They are on average more aware and active about sustainability


and responsibility.
They were the first generation moving towards sharing economy
to reduce carbon emission. Sustainability matters to them and is
at the center of an ideal lifestyle.
GENERATIONS Y AND Z ARE IN VERY DIFFERENT LIFE STAGES & MINDSETS:
GEN Z IS BECOMING ADULT, GEN Y IS SETTLING INTO FAMILY LIFE

GEN Z TENSION GEN Y TENSION


How can we move forward if there are people How can I keep being motivated and move
(older generations) who want to label us and forward if adulthood limits my idea of a perfect
limit our future freedoms? life?

BILLIE EILISH FOR TELECOM: THE MANIFESTO OF A GENERATION ADIDAS: CHASING MEANING
How are Gen Z shaping the new world? How Gen Y gets inspired to keep evolving?
MARKED BY STRONG BIAS AND EXPECTATIONS: THERE IS TIME TO DISCARD THE BIAS IN
ORDER TO CONNECT WITH GEN Z & GEN Y ON THEIR TERMS

Yes, Gen Z and Gen Y are disruptive generations, influenced by digital and connectivity, seeing the world with
different eyes:

GEN Z GEN Y
Roles, Identity
More centered on finding / creating themselves More centered on personal growth
Values and Attitudes
Conscious, self critical, purpose driven Instant gratification, excitement, self-care
Lifestyle
Search for what makes them different Search for enjoyment & improvement
Bias to discard
UTOPIAN, LIVING IN THEIR SHALLOW BEINGS,
OWN WORLD THE ME ME ME GENERATION

“You’re more than your failures. You’re the work”:


“Through collaboration, we see possibilities” https://www.youtube.com/watch?v=wx-kvJlKvJI
https://www.youtube.com/watch?v=xl2hrLb3ESw

BUT we cannot assume that: … they are imaging an OR … solely act as entitled self-centered beings
unrealistic reality
DIFFERENT ATTITUDES, VALUES AND CONSUMPTION STYLES
CONSUMPTION STYLE CONSUMPTION STYLE
GEN Z GEN Y
CO-CREATION: they want to interact EXPERIENTIAL: they want to
BORN: 1997 – 2010 BORN: 1981 - 1996
with the brands they use, create a experiment with brands and solutions
mutual real and honest dialogue. to curate their perfect world.
DIVERSE DARING
PRAGMATIC IDEALIST HEROES THEY ADMIRE
HEROES THEY ADMIRE
REAL & RAW PERFECTION Innovators: Elon
Social Activists: Greta
Thunberg, Malala Musk, Steve Jobs
Yousafzai

SPEND SPEND
AN EXTENSION OF THEMSELVES AN ACTIVITY
Cautious and Gen Y spends
cynical when it more into
comes to money. anything that
They may either can please
SOCIAL MEDIA go for no-frill SOCIAL MEDIA them and are
private labels or avid premium
MOTTO for premium MOTTO consumers.
quality with high
intrinsic
BE YOU functional value. YOLO
15
MOVIES EVENTS LIFESTYLE

GEN Z More in-home parties


Smaller circles get
Global mindset
BORN: 1997 – 2015 Local habits
togethers
Urban activists
They value:
TRAVELLING
MUSIC
WWW
Purpose
Something to avoid to be
Resilience Alternative, pop
xxxx environmentally friendly or
K-POP made carefully
Realism
Hybrid genre

HOBBIES FAVOURITE BRANDS


PREMIUM
CREATIVE
COLORFUL
CUSTOMIZABLE
SUSTAINABLE

WHAT IS FASHION?

Skateboard apparel
Comfort, beach lifestyle
Baggy jeans
MOVIES EVENTS LIFESTYLE

GEN Y Festivals, events


Urban nomads
BORN: 1981 - 1996

They value
TRAVELLING
Experiences MUSIC
Always: to experience
Craftmanship Pop
new adventures and
Enjoyment Alternative Rock collect them as social
Urban Rap currency

HOBBIES FAVOURITE BRANDS


PREMIUM
ELEGANT
VARIETY
AUTHENTIC
CRAFT

WHAT IS FASHION?

New Folk
Athleisure
Camping gears
GEN Z & GEN Y WILLINGLY INVEST IN QUALITY, BUT FOR DIFFERENT REASONS

GEN Z: INVESTING IN LONG TERM GEN Y: INSTANT GRATIFICATION

• Do-ers: entrepreneurial, creating wealth • Hedonistic: spend more on instant gratification


• Cautious: more price sensitive • More reckless spenders, willing to spend on
• Investing in proven quality and good value for marketing
money • Risk takers

Money can change fast, therefore they invest in the now


They have grown up in unstable economies and went through global recessions: they assume that everything can rapidly change, it
is relative and ephemeral
GROWING UP AND HOLDING RESPONSIBILITIES
Time evolution

TRADITIONAL DOMINANT PROGRESSIVE


Adulting as a personal journey
THE EXPLORER Adulting as collective journey
Experimenting with their reality
and daring to change the
course of things
THE ANTISYSTEM REBEL More Gen Y
Rejecting the current status quo

THE FORTUNATE THE CONNECTED MAGICIAN


Transforming reality and having fun
Sharing positive messages by doing it Together
& the good things in life with More Gen Z
others
More Gen Y

THE ENTREPENEURIAL
THE ENDURING HERO
CITIZEN
Take up one’s role in society even THE FREEWHEELER Realism and getting things done for
with personal sacrifice
Making the best of the situation & everyone's benefit
savoring the moment More Gen Z
Both Gen Z & Y

Adulting in finding a place in the world by overcoming obstacles Adulting is taking responsibility for change

HIGH RELEVANCE TRADITIONAL CULTURES HIGH RELEVANCE PROGRESSIVE CULTURES


DIFFERENT YOUNG ADULT TYPOLOGIES, CONNECTED WITH DIFFERENT CORE NEEDS-STATES

GEN Y ARE PULLED MORE BY GEN Z ARE PULLED MORE BY


PREMIUM DIMENSIONS MAINSTREAM DIMENSIONS
RECOGNITION
to be critical and choose better
STATUS
to live the best life possible
EXCITEMENT
to be daring, life a full life

RELEASE
to say yes to pleasure and fun
SOCIABILITY
to include others as they are and exchange
ideas, build a better us
BELONGING
To contribute to the common good
COMFORT
To protect and be responsible
ACTIVATE BRANDS WITH INSIGHTS THAT MOBILIZE YOUNG ADULTS ACROSS ALL MOTIVATIONS

Our time to party:


celebrating life against all odds

Being a game changer: change the Mainstream sociability:


reality around you by experimenting ➢ Real togetherness
and trying new ways Premium sociability
Interchange

Premium means for GEN Z


celebrating own work, for GEN Y Activism 2.0: caring for
is more about living the best what is ours
experiences

Good for me, good for the


planet: consciously choosing
Just be here with own trusted circle,
for healthy & sustainable
creating a safe space to be

Cover the basics to keep going


CLUSTERING THE MARKETS & CULTURES: THE HIGHER THE ACCESS AND THE MORE
PROGRESSIVE THE CULTURE, THE MORE CHOICE YOUNG PEOPLE HAVE
PROGRESSIVE – GLOBALIZED

COSMOPOLITAN INNOVATORS OPTIMISTIC NETWORKERS

ACCESSS TO MEANS
Different level of socio-economic development

HIGH ACCESS LOW ACCESS


PROUD TRADITIONALISTS TRADITIONAL INTROVERTS

ATTITUDE TO LIFE
Different attitudes to change and progress
Different ways of dealing with values, religion
Market clustering is not always reflecting a
geographical spread
CONSERVATIVE – TRADITIONAL
CLUSTERING THE MARKETS & CULTURES: ADULTING IS NOT THE SAME ACROSS GEOGRAPHIES

PROGRESSIVE – GLOBALIZED
COSMOPOLITAN INNOVATORS OPTIMISTIC NETWORKERS
Gen Z & Gen Y are transforming the system from within Gen Z & Gen Y are riding the wave of progress, seizing
opportunities
EUROPE: most countries
AMEE: Ghana, Nigeria, DRC, Mauritius,
AMEE: Israel, MENA expats, South Africa, Jordan, Turkey,
APAC: Vietnam, Cambodia, Laos
UAE, Russia
AMERICAS:Caribbean’s Bahamas, Jamaica, Dominican Republic,
APAC: China, Japan, South Korea, Australia, NZ, Singapore
Barbados
HIGH ACCESS

LOW ACCESS
AMERICAS: US, Canada, Mexico, Brazil

PROUD TRADITIONALISTS TRADITIONAL INTROVERTS


Gen Z & Gen Y are rebelling vs establishment Gen Z & Y are responsible providers for their families

AMEE: most MENA countries: Algeria, Egypt, Tunisia AMEE: Burundi, Rwanda, Zimbabwe, Mozambique, Sierra Leone
Morocco, Iran APAC: Oceania islands, Afghanistan
AMERICAS: Haiti, Honduras, El Salvador, Nicaragua
APAC: Indonesia, Malaysia, Pakistan, India
AMERICAS: Peru, Chile

CONSERVATIVE – TRADITIONAL
GEN Z & GEN Y AS
CONSUMERS: BUILDING
INCLUSIVE BRANDS
SUCCESSFULLY
PREMIUM AND MAINSTREAM BRANDS CAN FOLLOW DIFFERENT AVENUES TO INSPIRE
YOUNG ADULTS

ROLE OF PREMIUM ROLE OF MAINSTREAM

Importance of creating opportunities for progress and Importance of being inclusive, give a wider access as
self-expression by a brand

GEN Z GEN Y GEN Z GEN Y


• Opening a dialogue • Allow for choice and • An honest relation • Elevating the ordinary
inspiring experiences in which they can to extraordinary
• Let them co-create, find functional through care for
shape their world • Expanding their world value and fun details
PREMIUM BRANDS NEED TO ADAPT TO GEN Z AND GEN Y’S DIFFERENT EXPECTATIONS
PREMIUM BRANDS & GEN Z: UNAFRAID TO BE BOLD PREMIUM BRANDS & GEN Y: BEST LIFE EXPERIENCES
WHAT Invite consumers to co-create. Brands show themselves as WHAT Allow them to curate their ideal world of that moment in
vulnerable to be reframed. Consumption itself is time. Context matters. Offer them better experiences to
questioned. choose from.
ACTIVATION It is about bold action with purpose. Brands are not afraid ACTIVATION Share inspiration, experiences and discoveries. Fuel
to contaminate and hybridize with collaborations. them to keep on going.
SOCIAL MEDIA Social Media as a natural extension of them. SOCIAL MEDIA Social Media as an Activity.
Create an open dialogue. It is honest, rough, imperfect, Social currency, glossy and perfect, ironic, abstract.
pop, realistic.

https://www.youtube.com/watch?v=UAZ8Ts9CC6I
MAINSTREAM BRANDS NEED TO SHOW THE BEAUTY AND FUN IN EVERYDAY LIFE GESTURES

MAINSTREAM BRANDS & GEN Z: HONEST FUN MAINSTREAM BRANDS & GEN Y: ELEVATED SIMPLICITY
MAINSTREAM BRANDS are honest and do not hide with extra MAINSTREAM BRANDS do the job in a simple way and elevate
marketing tricks, they are responsible for what they are and embrace simplicity to polished minimalism.
to be simple and modest.

GEN Z are sceptical about brands and will challenge communication GEN Y are smart buyers, intelligent and have some scientific
that does not feel 100% genuine. They serve their purpose with evidence. The result of innovation in years. They create an
dignity and pride to be no frills. They show confidence in being good opinion by gathering information from different sources (e.g.
basics. They mainly look at their peers & close circle to form their brand website, online reviews, friends’ experiences, experts’
opinion on brands. opinion, tutorials).
If brands are iconic mainstream they will flirt with other premium They love brands, as they look for any opportunity to curate their
categories as well. world even in small details.
GEN Z: ONLINE IS AN EXTENSION OF THEMSELVES, EXPECTING BRANDS TO BE DIGITALLY
FLUENT. GEN Y: DIGITAL FIRST, EXPECTING BRANDS TO BE PART OF THE CONVERSATION

Gen Z are the cohort that has never known


a life without Internet. They use digital devices Gen Y has known a world without the
as an alternative to talk or walk. No separation internet and still use it as an activity
between online and offline world. (something you do).
Being constantly connected makes them Being online enables them to be more
embrace diversity as a part of life – but it also productive and connected with others.
makes them pragmatic, skeptical and
pessimistic. Gen Y is drawn to brands via social media,

Gen Z see companies and brands as identities


which mirror [or not] theirs, preferring brands
92% word of mouth and online searches, preferring
brands that share their values. Brands should
of Gen Z-ers in Europe
create opportunities for Gen Y to share
that feel authentic. Brands should create use smartphones, but content around relevant topics and help having
opportunities for Gen Z to connect around they are also more unique, tailormade and personalized
careful with their digital
relevant topics and empower them to co- footprint e.g., use ad
experiences.
create solutions for sustainability, ethics, a blockers, prefer volatile
stronger social fabric or simply for better media such as Insta
stories or Snapchat.
entertainment.
Remember: Gen Z grew up as gamers, they Remember: Gen Y pioneered to digital, they
will CREATE their reality. Gen Z engages. will SHARE their reality. Gen Y interacts.
PURPOSE MATTERS (SUSTAINABILITY/INCLUSION/SOCIAL ISSUES). MANDATORY FOR GEN Z

Brands are expected to activate with Purpose

For GEN Y more expected by Premium brands. They are


willing to pay more for responsible brands.

For GEN Z it is a mandatory dimension for Premium AND


mainstream brands.

GEN Z are active citizens. They expect brands that


WALK THE TALK.

Understand // act upon it// Bring innovative solutions//


Communicate it in a cooperative honest way//
BRANDS NEED TO BE: CROSS-GENERATIONAL, OPEN TO CHANGE, PURPOSEFUL

1. CROSS-GENERATIONAL: consider age differences but


most importantly consumer choices. Younger
consumers do not like to be held back by labels or
stigmas of any kind. Young adults see-right through
brands that try „too hard” to impersonate them and what
they need.

2. OPEN TO CHANGE: younger consumers expect dynamic


brands, open to shape shift. Brands that are bold and
unafraid to be challenged. Brand collaborations are
welcome.

3. PURPOSE: brands need to consider to have higher


impact on society and environment, including
sustainability. Hygienic for Gen Z (hardcore activists)
and aspirational for Gen Y (eco-marketing lovers).
INSPIRATION CORNER:
HOW BIG BRANDS DO IT?
BIG BRANDS ADDRESSING GEN Z: LEVI’S

https://www.youtube.com/watch?v=M7ZBIcUz-lE
Commit to conscious consumption

LEVI’S = BUY BETTER, WEAR LONGER LEVI’S= BRANDS COLLABS


PLAYING WITH POP CULTURE
LEVI’S= PARTNERSHIP WITH
TIKTOKERS
BIG BRANDS ADDRESSING GEN Y: SPOTIFY

SPOTIFY= ENDLESS DISCOVERIES AND SPOTIFY: ENHANCING INSTAGRAM SPOTIFY = EXPERIENCE MORE
POSSIBILITY OF CUSTOMIZATION STORIES WITH VIRTUAL EVENTS
GEN Z & GEN Y & ALCOHOL: GEN Z FOR EASINESS & SIMPLE REFRESHMENT, GEN Y
SEARCHES FOR INTENSITY & EXPERIENCES

GEN Z BOTH GEN Y


• Alcohol as another way to express • Alcohol as a social occasion • Alcohol as a way to enhance the
ATTITUDES yourself • Both seek healthier lifestyles moment
• Low ABV to not lose control & which comes in conflict with • High ABV to let go & elevate the
enjoy with purpose alcohol, which is perceived as moment
• More about Quality unhealthy • Quantity AND quality
• Less about brands • Invested in brands

• Creating your own (homemade) • Out-of-the-ordinary mixes • Sensorial experiences


TRENDS
mix • Cocktails • Low on sugar & calories
• Accessible & fresh taste

RELEVANT • Being used to a wider range of • Interesting alcohol mixes • Enhancing the food taste/ food
OFFERS cuisine, creates an opportunity for pairing
more authentic & hybrid flavours • Perceptive to alcohol rituals
• Upgraded context, e.g. AR
GEN Z & GEN Y & BEER: LAGER BEER IS A GROUP EQUALIZER, OTHER CATEGORIES OFFER
MORE INCLUSIVITY IN TERMS OF TASTE, EXPERIENCE AND EXCITEMENT

GEN Z BOTH GEN Y


• Beer is down-to-Earth • Beer is an equalizer • Beer is uncomplicated
• It is an inclusive drink (not a very • To help people to get to know each • Beer as a reward
ATTITUDES high ABV when compared to other other a bit better • It creates a moment to ease the
alcoholic drinks) • To enjoy the company tensions after a long day
• Seek brands that share the same • Premium beer is gender neutral • Seek brands that inspire them
values

• Relatable narratives of beer brands • Inclusive narratives • Characterful narratives of beer


TRENDS • Moderation • Low in alcohol options brands
• Variety of flavours
ROLE OF • PURPOSE • Sustainability & inclusive • NEW EXPERIENCES
INNOVATION • WIDEN ACCESS • Healthier • WIDEN CHOICES

• Options with accessible taste & • Refined & Premium options


RELEVANT • Sessionable beers to make the • Craft beer as a way to experiment
price
OFFERS moment last longer
YOUNG GENERATION AND BEER CONSUMPTION: SKEWED TOWARDS LIGHTER CONSUMPTION

Gen Z Gen Y

LDA – 24 y.o. 25-34 y.o. 35-49 y.o.

7% more
~2x heavy users Light Users among
LDA-24 vs 25-34
Light Users

Heavy Users

*Average % across 16 markets based on claimed usage (Survey Usage Frequency question).
Heavy Users defined as: Daily / 4-6 times a week
Light Users defined as: 2-3 times a month / Once a month
Source Kantar & HEINEKEN CONSUMER MARKET INSIGHTS
YOUNGER GENERATIONS ARE OPPORTUNITY: HAVE VALUES, DRIVERS AND NEEDS
THAT ARE LESS MET BY BEER, BUT BARRIERS ARE SOLVABLE WITH INNOVATION
Evidence of Opportunity: Consumer Barriers/ Motivators:
Beer SOT reduced 4% for 18-34’s in P5Y(in trad. beer mkts)
100%
Millennials (Gen Y)
90% and Gen Z have very
80% different value sets to
70% Gen X and Baby
60%
Boomers.
50%
40%
30%
20%
Brands with
10% authenticity, purpose
0% and matching
2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019
values are sought
Brazil China Germany Russia United Kingdom United States

Beer & Cider Spirits Wines

Size of Opportunity: Bold Moves:


Reversing the trend seen in the last 5
years, by offering propositions speaking to • Accessible lagers (& No
younger generations, especially in Alc.)
traditional beer markets can yield: • Cider & Flavoured
€290Mn per year
ALL SOURCES OF GROWTH SHOW POTENTIAL TO INCREASE PENETRATION AMONGST GEN
Z & GEN Y

CATEGORIES REGIONS BRANDS

Revamp Premium lager to reconnect with


PREM. LAGER young adults especially during meal occasions Europe, APAC, Americas
and new sociability

High potential for accessible lager to build


ACCESSIBLE LAGER new rituals and connect with Gen Y&Z. More Global
active light beers (Gen Y)
00 to reframe the lager experience.
ZAB Space for healthier new hybrids (more Gen Europe, APAC
Z)
High potential for Flavoured beers, and cider:
FAB sweet profile experience and unique. Seltzer Global
adds important healthy benefits (GEN Y)
Gen Y are devoted craft lovers interested to
discover new styles and ranges
NON-LAGER Europe and APAC
Gen Z prefer IPA and lower ABV craft
IMPLICATIONS AND OPPORTUNITIES FOR PREMIUM & MAINSTREAM

IMPLICATIONS &
BEHAVIOR & ATTITUDE SOG
OPPORTUNITIES
PREMIUM LAGER
• Importance of inclusion, democratization of • A diversified offering with inclusive taste
premium and simple to approach great potential for ACCESSIBLE LAGER
• Importance of purpose to add credentials FABs (cider, seltzer) and accessible lagers
PREMIUM • Gen Y it connects with experiences and • Innovate with variety and more complex ZABS
discoveries: variety and complexity experiences to address Gen Y curiosity:
• Gen Z more about intrinsic product quality and Non-Lager: new beer styles and hybrids FABS
beliefs: accessible and valuable ZABs, Premium lager
NON-LAGER
• Brands being more inclusive and open to
interaction with consumers
• Importance of activating: make mainstream
brands more active and purposeful receptive of
• Everyday consumption needs to take into LAGER
account the more digital and in-home
new mindset
MAINSTREAM • Collective mindset shows in action by sharing
lifestyle ADJACENT
• A wider range of accessible solutions
more (GEN Y) and by contributing more (GEN
allowing for everyone to choose
CATEGORIES: MALT
Z)
• Innovate to give reasons to choose vs no DRINKS, ENERGY
frills economy (GEN Z) DRINKS
GEN Z: IMPLICATIONS AND OPPORTUNITIES

PREMIUM • Brand involves • Brands born


consumers in a around purpose
• Fun
communications
• Inclusive taste
profile tending to
• Sustainability
and purpose
• Affordable
premium
• Off-trade
• Ecommerce
• Social media
• Tiktokers (for
• Promotions and
competitions
co-creative and is known to opening a sweet: across all supply • Returnable NA) involving
dialogue, it is a be a trustworthy dialogue with • FABs chains bottles consumers to co-
confident brand, activist consumers • YouTube create,
• Ciders • Strong pack
highly inclusive • Funky and bold, optimization to • Off-trade easy to customize
and with a straightforward • ZABs hybrids circularity access • Give away and
collective • Non-lager not incentive to try
message • Traceable
overly complex in ingredients
• Fun and taste
creativity • Short list of
ingredients

• Down to earth • Unafraid to • Supporting local • Accessible lagers • Hybridize taste • Good value for • Big bottles • On-line social • On trade
reliable brands collaborate with communities • Easy drinking • Improve supply money • Sharing formats media • Group discounts
MAINSTREAM
that delivers on other brands and • Giving back with and more unisex, chain capabilities • Collective – for activations
promise being used as a tangible actions gender fluid all classes, all
• Lighthearted vessel solutions genders
• Direct and
simplicity • Limited editions transparent • ZABs
with pop icons
GEN Y: IMPLICATIONS AND OPPORTUNITIES

PREMIUM • Inspire
providing
• Icon in well-
thought
• Activations
wowing
• Exotic or
hyperlocal origin,
• Wide range and
variety to choose
• Returnable
bottles
• On-trade
• Ecommerce
• On-trade local
outlets
• Give away and
incentive to try
intense marketing consumers (all ingredients Less from • Elegant formats, • Social media: • Endorsement
experiences details: labels, genders) with nasties; good for • Beautiful unique shape Instagram during events,
and variety activations, unique you elements designed merchandise
range all experiences • High price for • On-line
• Sense of modern and high quality activations
contribute to a and surprising craftmanship and minimalistic
• Brands have a brand elements to • Variety packs • Pop-up unique
rich world and complex recipes bottles and
experience remember labels activations
stories to • Ciders, FABs, Hard
immerse in • Rich storytelling Seltzers, Non- • Digital
Lager, activations

• Beauty of • Limited editions • Stories of • Accessible lagers • Create rituals • Quality value • On-trade • On-trade • On trade
everyday with luxury provenience, • Easy drinking and and adapt to • Individual • Off-trade advertising • Group discounts
MAINSTREAM
gestures: brands elevating the more unisex occasions: meals formats easy to • On-line social
• Brands with a mystic of solutions and festivities: carry and drink media
soul and everyday food pairing, outdoors activations
something to • Empowerment glasses, perfect
give stories – serve
women,
entrepreneurs
success stories
OPPORTUNITIES ACROSS REGIONS
EUROPE: FABS, ZAB,
accessible lager,
premium lager, Non-lager

NORTH AMERICA
FABs, RTDs: seltzers for Gen Y APAC: FABs, RTDs, Non-lager,
accessible lager, ZAB Gen Z accessible lager, premium
lager

LATAM AMEE
ZABs, FABs, cider, Adjacent
ZABs, FABs, categories: malt and energy
accessible lager drinks, FABs (flavored beers and
cider), accessible lager
DEEP-DIVE: GEN Z & GEN Y
MOTIVATIONS AND INSIGHTS
THAT MOBILIZE BROADLY
ACTIVATE BRANDS WITH INSIGHTS THAT MOBILIZE YOUNG ADULTS ACROSS ALL MOTIVATIONS

Our time to party:


celebrating life against all odds

Being a game changer: change the Mainstream sociability:


reality around you by experimenting ➢ Real togetherness
and trying new ways Premium sociability
Interchange

Premium means for GEN Z


celebrating own work, for GEN Y Activism 2.0: caring for
is more about living the best what is ours
experiences

Good for me, good for the


planet: consciously choosing
Just be here with own trusted circle,
for healthy & sustainable
creating a safe space to be

Cover the basics to keep going


SOCIABILITY FOR GEN Y & Z: ADULTING WITHIN YOUR
CIRCLE OF FRIENDS, EXCHANGING IDEAS
Isolation is growing by both choice and circumstances: individual households, smaller
families, pandemic distances. It is important to reach out and cultivate connections
TENSION
as we need them to survive as human beings. Online or Offline, connecting increases
acceptance, quality time, personal growth with exchanges
Connecting In today’s world, it is easier than ever to connect, but it is up to us to
make the most out of it and create authentic connections
REAL TOGETHERNESS
RAW INSIGHT
If you are unafraid of being yourself, you will find your network.
INTERCHANGE (PREMIUM SOCIABILITY)
When you connect and exchange ideas with others it is always a win win, together
we can feed our curiosity and inspire each other, get enriched by other differences.
• Informal gatherings with friends
MOMENTS TO • Meals and parties
ADDRESS • At home meal moments
• Online sociability
• Solutions suitable to diverse audience: Seltzers, Cider and Accessible lagers: more
BRANDS AND accessible, easy going, unpretentious
SOLUTIONS • Premium lagers to enjoy meals together invest in the moment
• ZAB alternatives, no need for high ABV while together
ACTIVISM 2.0: CARING FOR WHAT IS OURS, IS AN
EVERYDAY INDIVIDUAL AND COLLECTIVE ACTION

Cultures are constantly reshaped by each generation, but this requires personal effort.
TENSION Only by caring, committing, being active in the local and global community can we
keep our culture alive and create a better future.
ACTIVISM 2.0
In a fragile world with inequalities, people think too much about themselves in the
RAW
INSIGHT
now and forget the common good at the cost of the future. I feel each of our voices
can make a difference. Together with my people I can contribute, because we trust
each other, and we know that we can make things happen. Together we care for what
is ours.
• At home, out of home
MOMENTS
• Local rituals for drinking out together (after work, bbq)
TO
ADDRESS • Events and festivities reconnecting with the culture and collectivity
• Sport events (local benefits, football, Olympics)
• Impact on choice for most solutions within the mainstream: feeling good about my
choices on a regular basis
BRANDS
• Local brands and global respecting of heritage and sustainable practice
AND
SOLUTIONS • Value authentic ingredients, heritage
• Warm drinks, juices, herbal drinks
• Dark malt
JUST BE HERE: SIMPLE RITUALS TO KEEP THEM
GROUNDED AND IN BALANCE

At times they need relief from a hectic routine to regain perspective and feel more in
TENSION balance.
Gen Z especially trust their close circle.
JUST BE HERE
RAW
INSIGHT
Life can be quite hectic and challenging, but it should not be a race, you do not
always have to experience as many things as possible. Sometimes I need to pause
and take my time to feel grounded. A me-moment will fuel and refresh my mind
• Individual daily rituals
MOMENTS • Positive breaks at work, studying
TO • At home relaxation with close circle of friends/partner
ADDRESS
• While gaming/being online to decompress
• Watching movies with close friends
• Simplicity is key to keep gen Z and maintain them in balance – Beer and soft
BRANDS
drinks
AND
SOLUTIONS • Gen Y relax more savoring and rewarding with premium drinks: wine, premium
beers, craft
COVER THE BASICS: HYDRATIONS AND NUTRITIONAL
ELEMENTS TO KEEP GOING

A demanding world is asking a lot from our bodies to keep up.


TENSION Gen Z is especially pragmatic and looking for functionality
Gen Y is focused on self-care

RAW COVER THE BASICS


INSIGHT We live an intense life and jump from one activity to the other, but at times I need to
recharge my body to keep up with the pace and transition to the next activity

• Morning fresh start


MOMENTS • Daily commute
TO ADDRESS • At work, studying, breaks
• After work, sports refreshment
• ZAB and hydrating isotonic drinks for after sport
BRANDS
• Morning vitamin boosters: shakes, juices, water based
AND
SOLUTIONS • Nutritious basic and functional solutions, austere minimalism, help to survive in
difficult economies: dark malt
GOOD FOR ME, GOOD FOR THE PLANET: CONSCIOUSLY
CHOOSING FOR HEALTH & SUSTAINABILITY
A fragile planet and the rising importance of health urges people, companies and
brands to be accountable for their choices.
TENSION GEN Y is focused on exercise, healthy eating, sustainable living is desired
GEN Z is committed and critical on sustainability, they value healthy eating, but they
are more permissive on their diet.

GOOD FOR ME, GOOD FOR THE PLANET


RAW INSIGHT
In a world increasingly fragile and intoxicating we need to take greater care of our
health and the health of the planet. Choose consciously for everybody.

• Daily self-care rituals to prepare for the day


• Conscious consumption throughout the day, sports and fitness
MOMENTS TO
ADDRESS • Meals
• At home and during breaks daytime
• Trendy bars and restaurants
• Quality over quantity: better sourced, better made, healthier
• Cider, beers, beer mixes
BRANDS AND • Local ingredients, healthy ingredients with natural good for you properties: e.g.
SOLUTIONS fermented (Kombucha, antioxidants)
• Low sugars, low calories
• Natural, organic, gluten-free, vegan friendly
CELEBRATING YOUR WORK (GEN Z)
MEANINGFUL EXPERIENCES (GEN Y)
For Gen Z there is more of a personal definition of success (not necessarily glamour)
but this definition is not always allowed/accepted by society
Young adults want to progress in life but need to redefine what success is and how to
TENSION
get there
For Gen Y success means to live their best life, one that others look up to, but this can
hard to achieve
CELEBRATING YOUR WORK
In this world, it is not just about what you own, or experiences you have but who you
RAW INSIGHT are and how you impact others in a positive way. We co-create our own success.
MEANGINGFUL EXPERIENCES GEN Y
In this world, it is not just about what you own, but about how you experience life and
frame it that makes us stand out. You write the best stories to tell.
• More during weekends
MOMENTS TO • The outlet matters a lot: more indoor, VIP, exclusive
ADDRESS • Big events, big parties, big crowds
• Celebrating accomplishments: graduation parties, rites of passage, weddings
• RTDs,
BRANDS AND • Cocktails and spirits
SOLUTIONS • Champagne and wine (GEN Y)
• Premium lager FABs (GEN Z)
GAME CHANGERS: TRANSFORMING YOURSELF AND THE
WORLD AROUND YOU. THEY HAVE THE CONFIDENCE TO DO
IT. THEY KNOW HOW
Young people are often considered naive because they envision the world differently.
TENSION
But without trying and experiment something new, there won’t be progress.
GAME CHANGERS
RAW
INSIGHT
In a world that underestimates young adults, we need to prove them wrong. If you try
being yourself and experiment, you can always find new ways to transform the world
around you. If you can think a different world, you can change it
Moments of positive experimentations and discovery:
MOMENTS • travelling, going out in nature
TO • Pushing limits with hobbies and sports
ADDRESS
• E-learning new skills– mixology and other sources of information
• Enterprising online and offline
• Boosters: Spirits (vodka), energy drinks, RTD ZAB coffees
BRANDS • FABs: Multipack, varieties of flavors, seltzers, flavored beer
AND • Modern craft: new experiences and styles, constant search for intensity and
SOLUTIONS
variety. Gen Y, more uncomplicated for Gen Z (Ipas, wheat)
• Mixology: DYI bar tending, RTDs, beer mixes
OUR TIME TO PARTY: CELEBRATING LIFE AGAINST ALL ODDS

In a world which is hard to navigate at times, it is important to enjoy and celebrate


life despite the many obstacles and challenges. Savoring the moment because we
TENSION do not know what the future will bring.
Partying is the best way to be resilient and our way of being here and now. Party
fuels us up and refills us with optimism.

OUR TIME TO PARTY


RAW INSIGHT
We need to get real; life is not always a party. We don’t always know what the future
will bring or if we will ever make it, but we are ready to celebrate the day

• Party moments at home and out of home


MOMENTS TO • Planned gatherings with friends
ADDRESS • Clubbing, festivals, (virtual) events
• At the beach
• Positive brands inspiring & rallying people to join
BRANDS AND • Blurred lines, space for self-expression and create own experiences
SOLUTIONS • FABs, RTDs, beer mixes, burst of flavor experiences
• Higher ABVs
WE REMAIN CONNECTED!

For more details:

Codruta Berbecaru - Global CMI - International Brands


codruta.berbecaru@heineken.com

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