Weekly Roundup – Week of 12.30.24

January 3, 2025

Find this week’s notable news stories to round out the year – all curated by our team of strategists and food enthusiasts:

Dry January Means Big Business For Beverage Brands

Food Dive reported that consumer behavior around Dry January has evolved, with increasing acceptance of nonalcoholic beverages, especially among younger generations. Heineken’s data-driven approach shows that consumers now associate nonalcoholic drinkers with positive traits like being “respectable” and “cool,” driven largely by Gen Z, who prioritize mindful consumption but often feel pressured to justify their choices. Giesen, a New Zealand wine producer, is capitalizing on this trend, reporting significant growth in the U.S. market and dominating the premium nonalcoholic wine category with its diverse offerings. Free Spirits has expanded its portfolio of nonalcoholic ready-to-drink (RTD) cocktails, catering to consumers seeking sophisticated, alcohol-free alternatives, emphasizing both taste and wellness. Companies like these leverage innovation, data, and evolving social attitudes to meet the growing demand for nonalcoholic beverages. Read More

Tapping Into Gen Z: PepsiCo’s Strategy for Evolving Tastes

PepsiCo is focusing on Gen Z’s evolving consumption habits, particularly their preference for convenient, on-the-go meals and snacks that fit their busy lifestyles. To cater to this demand, the company has introduced innovative products like the Doritos Cig Kofte Wrap in Turkey, blending traditional flavors with modern convenience. Recognizing that 73% of Gen Z and Millennials value experiences over tangible products, PepsiCo aims to create meaningful brand engagements through away-from-home occasions and immersive experiences. Additionally, the company is exploring the growing trend of plant-based snacking, acknowledging Gen Z’s interest in health, sustainability, and diverse flavor profiles. Read Playbook

FDA, USDA’s New Food Labeling Initiative

The U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) are jointly seeking public input on “standardizing food date labeling terms like “Sell By,” “Use By,” and “Best By” to reduce consumer confusion and food waste,” as noted by the FDA. This initiative aims to clarify industry practices and understand how consumers interpret these labels, as confusion over varying terms contributes to approximately 20% of household food waste. By streamlining date labeling, the FDA and USDA hope to help consumers make informed decisions, reduce food waste, and potentially lower household food expenses. Learn More

Consumption Behaviors Defining The New Year

In 2025, global and fusion flavors will continue to thrive, driven by social media’s ability to spark interest in new food trends, according to Food & Wine. The functional food and beverage sector will remain strong, with protein as a key focus, especially as more people embrace plant-based diets. Rising food costs will influence consumption habits, with individuals making trade-offs, like choosing less expensive milk or limiting drinks, to still enjoy their desired food experiences. Ultimately, dining choices will become increasingly personal, reflecting a balance between preferences and budgets. Food & Wine reveals “how Americans ate in 2024” and which consumption trends will define 2025. Read Article

Restaurant Outlook: How 2024 Trends Impact The New Year

In 2024, the restaurant industry faced significant challenges due to rising labor and food costs, leading to traffic declines. Despite these pressures, operators were challenged to maintain quality experiences for guests. Many restaurants turned to data-driven strategies, with companies like Restaurant365 analyzing information from over 6,200 restaurant and café locations to identify cost-saving measures and operational efficiencies. Additionally, new regulations, such as mandatory use of cage-free eggs and increased minimum wages in certain states, further tightened margins, prompting restaurants to explore creative solutions to sustain profitability. Read Story

Happy New Year! As we step into the year ahead, we’re excited to explore innovations, emerging trends, and key industry insights. Be sure to visit us every Friday for the latest updates and news shaping the food and beverage sector.