MISSING A TRICK

What to do then for a category that frankly seems to be undergoing somewhat of an identity crisis? The next move for hot chocolate should be to play to its strengths, while also addressing its weaknesses. First up and it seems a simple approach that hasn’t yet been addressed by any major brand, is to dial up the very thing people are looking for in the first place. And it won’t stagger you to know, that’s chocolate.

Hyper chocolatey hot chocolates are not yet a thing, but they should be. With so many consumers experience of at-home products resembling something vaguely similar to dish water with a slight chocolate note and even cereals doused with milk beating them on their chocolatey credentials, it seems an obvious place to start when it comes to changing perceptions. In fact, chocolate brands that have become known for their rich, flavourful chocolate are ripe to lead the charge here. Tony’s Chocolonely, won’t you come out to play?

Next up, mouthfeel. One of the key things at-home hot choccies lack, is a thick satisfying mouthfeel. But they need it. Nitro hot chocolate anyone?

Is there a role for canned ready mixed products with a widget that can be heated up at home while still retaining their body? Much as coffee pod machines have become a kitchen staple, is there cause for a dedicated hot chocolate making gadget? If launched by and attached to a particular brand, they could lead a powerful charge to change the experience of consuming hot chocolate in the home.

All in all, hot chocolate has been an overlooked and ignored category for too long. But it shouldn’t be. The consumer demand is there and growing. Yet the methods and options to vastly improve it seem well within reach; but who will be the first to try?

WHY ARE LUXURY ALCOHOL BRAND SALES ON THE RISE?

The past few years have been an economic rollercoaster for us all. Yet, sales of luxury spirits are on the up. With the cost of living crisis heating up, we ask why? And will it last?

In times of crisis, we reach for comfort. Often in liquid form. But in times of economic crisis, we tend to tighten our spending. So you’d be forgiven for thinking that unnecessary luxuries – the ones that enhance but aren’t necessarily vital to our daily existence – would be the first thing to be curtailed. Yet so far, when drinks are concerned, that just hasn’t happened.

We may be in the early stages of an economic shitstorm, but consumers have not only been reaching for drinks, they’ve specifically been reaching for luxury drinks. As the cost of living spirals and inflation rises faster than wages, why, and will/can this continue?

Spending On The Rise

To answer that, let’s track how and when the growth of luxury spirits has unfolded thus far. Between 2015 and 2020, volumes of luxury spirits (defined as $50 plus) in the US increased by 125%, according to the Distilled Spirits Council of the United States (DISCUS). And as the pandemic took hold sales of super premium spirits – those priced $200 and up – began to climb substantially.

According to data published by Reuters in August 2021 sales of such super premium spirits were the fastest growing segment in the spirits market, growing by 9%. The data from the IWSR data also showed that sales of 750ml bottles of drink priced USD $200 and over, are expected to grow 9.3% annually to 2025, outpacing lowerpriced drinks.

By comparison, sales of $10 bottles are predicted to grow by just 0.8%. And companies such as Beam Suntory have also predicted that more than half of its revenue will come from premium drinks by 2030. But what’s driving it?