There is now a whole new generation that chooses not to drink as much. Multiple studies in the UK, the US and Australia show that people from Gen Z are more sober than their parents and grandparents.
In Japan, faced with declining alcohol tax revenues, the authorities even arranged a national competition, named Sake Viva!, in an effort to reverse the trend in 2022.
The sober generation does not only affect Japan’s tax revenues, it also offers a whole new challenge for businesses that make and sell alcohol.
Read the full article on the BBC website
NAM Implications:
- All businesses ebb and flow…
- Good businesses are the result of that business adapting to accommodate change
- …and businesses that cannot are taken over by businesses that can.
- Stakeholders of a category with falling demand can increase prices to a tolerance level…
- …at which point they either diversify or manage the category downwards.
- It was never much different…
