It’s the midway point of the dog days of summer, and folks are out and about and traveling like never before. In fact, nearly 60.6 million people hit the road over the July 4 holiday period ― an additional 2.8 million travelers compared with 2023. Air travel in the United States also set a new record, with more than 3 million passengers passing through TSA checkpoints on Sunday, July 7, marking the highest number of people screened in a single day.
That’s good news for beverage brands as Memorial Day weekend, the honorary kick off to summer, showed mixed results for this category according to Beer Business Daily (June, 4, 2024).
This performance puts even more pressure on the July 4 holiday week to post strong results for the alcohol vertical. But before looking ahead to the final remaining key holiday of the summer, Labor Day weekend, let’s consider some fundamental levers brands are pulling to win the summer.
It’s all about the teas: Surfside Hard Tea rolls national expansion
Although the past few summers were “all the fizz” with seltzers, this year it’s all about the ready-to-drink (RTD) hard teas. In 2023, Surfside Iced Tea + Vodka got the attention of consumers through an impactful summer out-of-home (OOH) ad campaign in the Mid-Atlantic region. And its astounding sales results made the rest of the industry take notice. That’s why in 2024 you’re seeing so many new teas emerge from producers like ABI, Molson Coors and Boston Beer Co. Here’s a closer look at the dynamics driving the alcohol vertical in the NYC/N.J. and Philadelphia “hot zone” of alcohol marketing.
Beverage brands like Surfside and others are tapping into OOH for summer success, with some brands netting as much as a 20% lift in purchase intent among OOH audiences exposed to an OOH brand campaign compared with those unexposed. Moreover, and just as impressive, this particular campaign showed that for all sales from OOH-exposed audiences, 36% of the sales were from people who had not previously purchased the brand. But let’s not stop here.
Summer OOH alcohol vertical strategy: Reach at home and at the beach
The Jersey shore is a perennial focus for the alcohol vertical marketing plans. New brands battle for share of mind and share of throat alongside legacy brands when the temperatures peak in June, July and August. And share of mind is where OOH shines brightest every year to capture consumers’ attention on their way to and from the fun each weekend.
Brands, big and small, are vying for the attention of consumers of all ages during this weekly pilgrimage from the adjacent origination markets (New York and Philadelphia) en route to the Jersey Shore. Converting that attention into their weekly brand selections is critical to every brand’s summer success. The traditional highway journey to and from these summer resorts each week has provided built in frequency and cumulative reach, but targeting just the resort areas is no longer enough.
The work from home revolution has changed the commuting habits and flattened the curve, creating more opportunities to reach these consumers seven days a week in both their home and away residences, versus just a few years ago. This plays well to the strengths of traditional printed and digital OOH advertising, with DOOH delivering a “plus up” on the good weather days. So, although it remains critical to reach these consumers at their favorite resorts, in a relaxed and open state of mind, making sure your messaging continues to make impressions in the cities to which they return also should be part of an OOH ad campaign.
One recent innovation from Constellation helps underscore the importance of this geography. Corona Sunbrew Citrus Cerveza strategically rolled-out in select markets, including Boston, Connecticut, Delaware, New Jersey, New York metro area, Rhode Island and Philadelphia. Its “brewed-with-better-for-you” real orange and lime peels and blended with those same juices. They’re hoping to recruit innovation-seeking consumers into the Corona portfolio with this new product.
Gaining ground: Non-alcohol, plus better-for-you equals growth
In recent years, the non-alcohol (NA) category has been gaining traction and popularity through product innovation and acceptance by consumers. These factors, in addition to fitness gurus promoting healthier lifestyles, have driven trial and awareness.
Like the alcohol beverage category, challenger brands have been emerging with enticing offerings to battle with the large established NA mega brand families. And while these brands aren’t fully scalable yet, nor are they launching extensive media and marketing plans, this growth has led to NA bars, nightclubs and online guides dedicated exclusively to the category. NA is clearly one vertical to watch for in 2025 and beyond.
Forecasting ahead: It’s all about the weather
Alcohol beverage suppliers, wholesalers and retailers are all eyeing the weather forecast closely. If it’s too hot the rest of the summer, then the NA brands will be cheering. If it’s just hot enough, then traditional alcohol consumption patterns will likely win the scanning war. Labor Day weekend will be the last summer opportunity for beverage brands to make their numbers. So, it’s “Cheers to Summer” over the coming weeks.
