Beverage Industry

• It will be interesting for those in the beverage industry to see what products thrive in the present economic economy and which do not fare as well. Reports of consumers cutting back, tightening purse strings and embracing thrift are common. Some consumer products seem to be recession proof , and they are not necessarily the products we expect to see in this category. Candy, for instance, falls into a group of consumer goods that historically survive economic downturns well. Candy is certainly not a necessity for any consumer. It is clearly a luxury item. So, why would not budget minded consumers make candy one of the first items to cross off the shopping list? The answer is that candy does not often even make the shopping list. It is an impulse buy and something many shoppers choose to treat themselves or their family. The candy bars are flying off the shelves but the high-end candy in the elaborate packaging candy is not. It seems that beverages will fall into the candy category in an economic downturn also. Consumers will look for known and trusted brands that make them feel good for a reasonable price. They probably will not be looking to cut their usual soda and iced tea purchases out of the budget because these items are little luxuries that they will want to hold onto. They will even be eager to try new beverages that fit into their sense of appropriateness. Consumers will want something special as long as it is not too eccentric. The beverage industry may need to adapt to this new consumer mindset and create packaging and colors that are unique and tempting but not showy. As always, the industry will need to rely heavily on market research to discover just how much pampering consumers in various demographics are allowing themselves. As higher end brands, luxury beverages may face difficult challenges. Conspicuous consumption is no longer in vogue so we may see fewer purchases in the beverage industry of designer drinks and more sales of luxury drinks that do not display too much glam. Premium brand manufacturers in the beverage industry to should be able to capitalize on this situation if they can react quickly. Consumers may be foregoing high-ticket items but they will still want to enjoy some of life s little luxuries. Customers buying premium products are still approachable, but they will probably put more thought into their purchasing decisions. Those in the beverage industry can use this as an opportunity to increase sales if they make the right decisions on branding, packaging and marketing.