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Big 4 - Gen Z Gen Y
Big 4 - Gen Z Gen Y
Big 4 - Gen Z Gen Y
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
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)
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
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:
CONTEXTS, ATTITUDES Gen Y
AND VALUES
8‒
8‒
FIRST: LET’S ALIGN ON THE DEFINITIONS…
Gen Z Gen Y
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.
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
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
WHAT IS FASHION?
Skateboard apparel
Comfort, beach lifestyle
Baggy jeans
MOVIES EVENTS LIFESTYLE
They value
TRAVELLING
Experiences MUSIC
Always: to experience
Craftmanship Pop
new adventures and
Enjoyment Alternative Rock collect them as social
Urban Rap currency
WHAT IS FASHION?
New Folk
Athleisure
Camping gears
GEN Z & GEN Y WILLINGLY INVEST IN QUALITY, BUT FOR DIFFERENT REASONS
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
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
ACCESSS TO MEANS
Different level of socio-economic development
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
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
Importance of creating opportunities for progress and Importance of being inclusive, give a wider access as
self-expression by a brand
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
https://www.youtube.com/watch?v=M7ZBIcUz-lE
Commit to conscious consumption
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
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 Gen Y
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
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
• 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
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