EDITORIAL

EDITORIAL

Spirits have been savored by humanity for many years. The beverage sector, much like its food counterpart, has shown impressive resilience to global turmoil. Despite social, economic, political, financial upheavals, and even the recent global pandemic, the consumption of food and beverages continues its upward trend. This progression remains steady as long as relevant market strategies are applied, particularly in the context of the premium spirits sector.

However, the global spirits industry is currently witnessing another significant transformation. These shifts often occur due to successive generational changes that influence consumer behaviour, tracing back to the post-war consumerism of the 1950s. Broadly speaking, modern consumers are health-conscious, knowledgeable, informed, and purpose-driven. Therefore, the enduring trend in the spirits industry indicates that "consumers drink more consciously and choose better quality," and there is no foreseeable reason that this trend shall alter in the near future. To accommodate this change, some industry participants are enhancing their offerings, seeking to align with evolving consumer preferences and revenue sources.

Nevertheless, this adaptation can be viewed as a superficial and merely a responsive approach. The ongoing consumer behaviour shifts encapsulate more than just an upgrade in product quality. Indeed, the most profound long-term influence currently overlooked by global spirits industry leaders is the dramatic shift towards the "premiumisation of emotions," alongside the "premiumisation of products. "

In today's market, "human emotions" are treated like any other commodity, subject to the universal rules of supply and demand. The recent and continuous decrease in the supply of genuine human emotions has amplified its demand and, consequently, its value. This change has inspired a new wave of entrepreneurs who believe life is about more than mere profit.

Customers are gravitating towards products that provide the most emotional value, not just the highest premium. By coincidence, it happens that brands and products offering the most emotional fulfilment are often premium or ultra-premium in nature. Furthermore, brands that value quality, authenticity, and heritage are gaining popularity faster than many other mainstream options. Having an extensive brand history signifies generations of craftsmanship and quality, coupled with a captivating and authentic story — a unique source of supply. These factors are becoming the most valuable commodities in the quest for the consumer's emotions of the future.

- Origen X