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Gen Z and booze: The misunderstood generation

Nick Gillett, co-founder and managing director of spirits distributor Mangrove Global, reveals the truth about how the younger generation is drinking today

Gen Z friends drinking mojito cocktails

Gen Z is not giving up on alcohol, but they are drinking in a different way than previous generations

Photo: iStock

If you're a reader of drinks industry chatter, you'll be well versed in the term “sober curious". And you'll have heard it used in association with Gen Z. They are, supposedly, the generation that's given up on alcohol. I say supposedly, because as they gain more buying power, we're discovering they haven't given up at all.

Gen Z drinks. But not in the same way previous generations did. Understanding their behaviour will help you capitalise on a real opportunity. Let's talk about it.


Is Gen Z really drinking less?

Yes and no. Volumes are softer, but intent is sharper. They're not picking up alcohol out of habit, and they're not loyal to categories by default. They'll trade three average drinks for one exceptional one, provided it feels worth it.

What they lack in frequency, they make up for in curiosity. They want to understand what's in the glass, who made it, why it costs what it does. For independents who know their range and can talk to it, that's good news. Premium isn't a dirty word, but the product has to earn it. Good liquid in an interesting bottle? They'll find it. A tired label they've seen their whole lives? Less exciting.

Consistency versus curiosity

Older generations treat Dry January like a penance. Gen Z practise moderation all year round, so going dry holds little appeal. That means diversity. One night might be a cocktail can, the next low or no, the one after nothing at all. They're sampling the full range.

That fluidity is your opportunity. RTDs suit them well: convenient, no mixing, available across ABVs. If your range only speaks to one occasion, you're leaving money on the shelf.

What drives their choices

They're practising balance – lighter ABVs, quality over volume. Taste. Low quality is the line they will not cross.

They're also being squeezed economically. But rather than abstaining, they're being selective, justifying spend, not avoiding it. Value isn't only price, it's whether the product is worth it.

What this means for your store

Gen Z respond to discovery. Finding something new, a brand with a genuine story. Authenticity not gloss. Brands like Au Vodka cut through because they look as good as they taste and travel on social media.

If your range looks like five years ago, you're invisible to this shopper. Rotate stock, give emerging brands proper facings, and think by occasion not just category.

We haven't always done a great job of understanding this generation. But to my mind their habits suit independent retail.

nick gillett Nick Gillett Photo: Handout