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Today’s consumer seeks indulgence and finding pleasure in new and innovative ways. While traditional pursuits of luxury, such as Michelin-star meals or designer clothes, still hold their allure, there is a growing societal desire for more subtle, modest experiences. For example, conversations about memorable experiences such as pop-up events or street performances were up up +128%1 in the year to the end of 2023, showcasing this new perception of luxury of being in the right place at the right time.
This is a trend Diageo defined in Distilled as ‘Neo-Hedonism’, which witnessed a +39% increase in conversations2 as society searches for more democratised forms of luxury. From growing interests in outdoor adventures and the explosion of multi-sensory dining experiences to the fact that 60% of Millennials and Gen-Zers now prioritize spending on traveling and concerts over saving for retirement3, it’s clear that consumers are seeking joy in unique moments rather than solely on products and goods
It’s a trend that extends to socialising and has exciting implications for the Total Beverage Alcohol (TBA) industry as consumers look to celebrate anywhere and everywhere. This shift has fueled the demand for ‘convenience’ products that can be enjoyed more in more places and occasions, such as canned cocktails, or Ready to Drink (RTD), as well as premium Ready-to-Serve (RTS) products. It is no surprise that conversations around convenient products were up 87%4 in the year to the end of 2023, as celebrations extend beyond the bar into at home or at outside venues.
The Cocktail Collection
In 2023, Diageo launched The Cocktail Collection – an elevated collection of RTS cocktails that have helped remove the ‘cocktail imitation’ barriers facing the secret bartender, offering consumers beautiful, high-quality cocktails that can easily be served and enjoyed at home.
With consumers able to pour the cocktails directly over ice, which include a Tanqueray Negroni in GB or a Bulleit Old Fashioned in the US, the innovation has proven a big hit. The Cocktail Collection has witnessed remarkable success in the GB off-trade. In Waitrose, The Cocktail Collection’s Tanqueray Negroni is the highest selling cocktail, by value, in its Ready to Serve Cocktail category offering5, and in the US it is even recruiting new users to product brands, particularly Bulleit.
Building on this success, Diageo recently introduced a new cocktail to the collection in the US: a Crown Royal Whisky Sour Cocktail with Black Cherry. Launched to coincide with the NFL season, the brand’s venture into the Collection seeks to enhance societal enjoyment of the game day experiences with sophistication and ease.
‘Embracing a pleasure-centric lifestyle’
Diageo's commitment to 'Neo-Hedonism' extends beyond The Cocktail Collection, with our team of innovators consistently working to shape this trend. 2024 has seen exciting new RTD launches that tap into globally trending flavours, with Smirnoff launching its first ever RTD vodka soda in four flavours and Captain Morgan launching its first ever RTD range, Captain Morgan Sliced.
These follow the back-to-back launches of Guinness Nitrosurge and Microdraught back in 2021, two dispense innovations that bring the famous stout to more places and spaces. The innovations went on to win the iconic Red Dot Award in 2022, a fitting reward for giving consumers the magical full experience of a pint of Guinness to their home.
Distilled highlighted that ‘Neo-Hedonism’, alongside the four other long-term macro trends, is here to stay. While the trend will inevitably evolve in the coming years, redefining indulgence for both brands and consumers, these long-term trends will continue to guide Diageo’s team of innovators to ensure consumers can keep embracing a pleasure-centric lifestyle that also includes adventure and personalised luxury.
1 Diageo Foresight System - % growth rate in conversations from the period Jul’21-Jun’22 vs Jul’22-Jun’23
2 Diageo Foresight System - % growth rate in conversations from the period Jul’21-Jun’22 vs Jul’22-Jun’23
3Experian - https://www.experian.com/blogs/news/2023/06/26/gen-z-millennials-seeking-financial-independence/
4 Diageo Foresight System - % growth rate in conversations from the period Jul’21-Jun’22 vs Jul’22-Jun’23
5Nielsen Scantrack Data, 12 weeks ending 10.08.24