Elevating the Craft: The Art of Cocktail Premiumization
By Mallory Ambrose | September 05, 2024
Consumers’ Pursuit of Premium, Exclusive & Extraordinary Experiences
Over the years, the alcohol industry has witnessed peaks and wanes for demands in premiumization. In recent years, we have witnessed a growth trend that shows no signs of slowing down. This irresistible movement is fueled by consumers’ unyielding pursuit of premium, exclusive, and extraordinary experiences.
Premiumization has transcended age barriers, captivating consumers across generations, especially millennials and Gen Z. From artisanal ingredients to innovative presentation techniques, premiumization reflects consumers’ desire to go beyond the ordinary and offers establishments with the opportunity to prioritize quality and uniqueness when crafting cocktails. Let us delve into the world of cocktail premiumization and explore how on-premise venues can leverage this practice to captivate guests and differentiate themselves in today’s competitive market.
Behind the Growth of Cocktail Premiumization
Premiumization has continued to be a driving force in the beverage industry, fueled by consumers’ growing appreciation for elevated and exclusive experiences. But what is premiumization? Marked by an increased focus on flavor, high-quality ingredients and more appealing packaging, premiumization extends beyond traditional luxury products to include the realm of craft cocktails.
A CGA On-Premise User Study conducted in March 2022 revealed that 60% of on-premise visitors say they are likely to pay more for what they perceive as a better-quality drink. Beverage enthusiasts now seek out bars and restaurants that offer high-quality ingredients, expertly crafted drinks, and an immersive cocktail experience.
Research by CGA expects these premiumization trends to dominate in 2024:
- 24% of consumers plan to spend more in the On-Premise channel over the next 12 months. Experiential bars (think axe throwing, shuffleboard, and more) are on the rise. At the end of 2023, 14% of Gen Z consumers and 17% Millennials reported visiting an experiential bar in the last 3 months.
- Moderation in volume allows for premiumization, so we expect consumer preferences for quality over quantity in beverage alcohol consumption to continue.
- Expect to see increasing interest in craft and locally created premium brands that have a story to relate to within social networks.
Key Aspects Of Premiumization Consumers Seek
Cocktail premiumization is about elevating every aspect of the cocktail experience, from the quality of ingredients to the level of craftsmanship. As consumers become increasingly discerning and adventurous in their beverage choices, there is a growing demand for cocktails that offer a unique and memorable sensory experience, and this trend shows no sign of slowing. According to a recent report from Maximize Market Research, the premium spirits market is expected to reach $315.70 billion by 2029.
Understanding the specific aspects that premiumization enthusiasts value is crucial for brands looking to tap into this market effectively.
Unique and Rare Offerings:
Limited editions, rare ingredients, and small-batch productions are highly sought after by premiumization consumers as they crave exclusivity. Today’s consumers are generally more knowledgeable and discerning about the products they consume than prior generations. According to a report from CGA, while some consumers are sticking to familiar drinks, others are eager to experiment. Well over half (57%) like to have different drinks in the on-premise than they do at home—and that figure rises to 65% of 21- to 34-year-olds.
Craftsmanship and Heritage:
Consumers value brands with a rich history and commitment to traditional craftsmanship, viewing these as indicators of superior quality. Consumers are now seeking out spirits that offer a unique recipe or showcase a specific crafting method, something that allows them to connect more with the heritage of the beverage as opposed to just using it as a means to an end. The desire for personalized and exclusive offerings has led to the emergence of a new breed of spirits enthusiasts who are willing to explore less-traditional options.
In April 2024, Three Dots and A Dash, the award-winning tropical cocktail bar from Lettuce Entertain You Restaurants, launched Tokyo Last Call, a Japanese-inspired listening bar pop-up concept series sponsored by Suntory and -196. In collaboration with four renowned Japanese cocktail bars, Beverage Director Kevin Beary and Bar Manager Scott Kitsmiller aimed to create a fully immersive cocktail experience that would transport guests to Japan’s vibrant cocktail scene.
The event featured a menu of six specialty cocktails utilizing spirits from Suntory’s portfolio. A selection of exclusive and rare Japanese whiskeys were available for select pours with a guided tasting led by the central US Suntory brand ambassador, Davey Jones. Each menu was inspired by the bar’s most popular offerings rooted in traditional techniques and flavors found in the bustling Japanese bar scene.
Personalized Experiences:
Customization options, personalized packaging, and tailored recommendations create a sense of belonging and enhance the overall experience for premiumization consumers.
With consumer demand for non-alcoholic cocktails on the rise, in 2023 Tempo by Hilton Times Square launched a new menu of hand-crafted, “Spirited” and “Free-Spirited” cocktails. Each beverage is a contemporary take on a classic recipe, with the Spirited selections highlighting refined, well-balanced drinks containing alcohol; the Free-Spirited selections mirror the Spirited cocktails in every way – presentation, flavor profile, mouthfeel, and sophistication – but are made without alcohol.
Amalfi Toast Free-Spirited cocktail – Highball at Tempo by Hilton Times Square | © 2024 Hilton
Read more about Tempo by Hilton’s uncompromised bar experience to the modern traveler here!
With the Spirited and Free-Spirited cocktail menu, Hilton is setting the stage for a new era in bar hospitality that reflects contemporary behaviors, specifically the notion that many guests pivot between alcoholic and non-alcoholic drinks on the same occasion.
“It is our mission to create and deliver innovative and original food and beverage concepts for all of our brands, and to continually raise the bar on the guest experience,” said Adam Crocini, senior vice president and global head, Food and Beverage Brands, Hilton. “By introducing this program for Tempo by Hilton as a brand standard, we are providing an uncompromised food and beverage experience to our guests regardless of routines or regimens.”
Quality Ingredients and Craftsmanship:
At the heart of cocktail premiumization is a commitment to using the highest quality ingredients and employing meticulous craftsmanship. From small-batch spirits to house-made syrups and bitters, premium cocktails are crafted with care and attention to detail, resulting in unparalleled flavor and complexity. By sourcing fresh, locally farmed ingredients and collaborating with artisanal producers, on-premise venues can create cocktails that are both distinctive and delicious. According to a survey by Beverage Industry Magazine, 85% of consumers are willing to pay more for cocktails made with premium spirits and ingredients.
The recently launched cocktail menu at Miss River, the signature lobby-level restaurant at Four Seasons Hotel New Orleans, elevates the standard of cocktail culture, bringing together the timeless charm and heritage of Southern hospitality with modern mixology. Many of the ingredients used in Miss River’s cocktails are fresh and locally sourced, combining the pleasures of a Southern cocktail party with time-tested drinks ideal for entertaining, such as the Mint Julep, Pretty Rickey and a classic Daiquiri. Guests will experience a refined showcase of creativity and craftsmanship, perfect for both seasoned connoisseurs and casual enthusiasts.
Miss Rivers Flaming Espresso Martini – A modern trend, designed to keep one in the party – flamed tableside with vodka, espresso, and Mr. Black coffee liqueur.
Innovation in Presentation and Garnishes
Presentation plays a significant role in the premiumization of cocktails, offering an opportunity to engage the senses and enhance the overall guest experience. From elaborate garnishes to custom glassware and creative serving vessels, premium cocktails are as visually stunning as they are delicious. By embracing innovation and creativity in presentation, on-premise venues can create Instagram-worthy cocktails that generate buzz and excitement among guests.
CGA’s USA Bartender Report delivers more evidence of the shift in cocktail preferences towards more refreshing and visually appealing drinks. When asked about likely cocktail trends for 2024, 45% of bartenders anticipate more bold and vibrant cocktails that are served with social media appeal in mind.
The Bamboo Room at Three Dots and a Dash, the award-winning bar and intimate rum tasting room in Chicago’s River North, debuted an all-new menu boasting nearly a dozen must-try cocktails. Renowned Beverage Director Kevin Beary, Lead Bartender Scott Kitsmiller and their team collaborated on a collection of drinks that is a masterclass in storytelling.
“Our summer menu ushers in some new creative forces in The Bamboo Room,” says Beary. “These new drinks are a true collaboration of four rhum and tropical cocktail enthusiasts channeling inspiration from emerging cocktail trends, personal preferences and learnings from our committed guests.”
Tequila Nar-Nar with Tequila Ocho Añejo, Planteray Guatemala Three Dots Single Barrel, Aromatized Wine, Gentiane Apertif, Champagne, Raspberry, Pineapple, Lemon, Absinthe
Fans will jump at the chance to bring home a new style of The Bamboo Room’s custom crafted, exclusive vessels, The Narwhal Mug. Used to serve the show-stopping Tequila Nar Nar, the whimsical mug comes extravagantly garnished and filled with a blend of aged tequila, smoky, double-charred rhum, botanical spirits, bubbles, and tropical flavors.
Elevated Service and Guest Engagement
Premiumization extends beyond the cocktail itself to encompass the entire guest experience, including service and hospitality. From knowledgeable bartenders who can craft bespoke cocktails to personalized recommendations and attentive tableside service, premiumization is about exceeding expectations and creating moments of delight for guests. By fostering genuine connections and engaging guests in conversations about their preferences and tastes, on-premise venues can create memorable experiences that keep guests coming back for more. According to guest satisfaction surveys, 78% of respondents cite personalized recommendations and attentive service as key factors in their decision to return to a venue.
Four Seasons Hotel Atlanta is transporting guests back to the glamorous days of stylish cocktail culture with its immersive tableside martini cart experience at Bar Margot. The bespoke service allows guests to enjoy masterfully crafted, made-to-order martinis tailored to individual preferences.
Tableside martini cart experience at Bar Margot.
Bar Margot’s martini cart is a celebration of cocktail craftsmanship, bringing the art of mixology directly to the table. Featuring a premium selection of vodkas, gins and vermouths, the martini cart is wheeled tableside where a master mixologist crafts each martini to order. Guests can choose from a classic vodka or gin martini or create their own custom cocktail by selecting preferred spirits, mixers and garnishes such as olives, citrus twists or fresh herbs.
As the demand for unique and personalized drinking experiences continues to grow, the art of premiumization will push the boundaries of what is possible in the world of craft cocktails. So, whether you’re a passionate mixologist, an aspiring home bartender, or simply someone looking to indulge in a remarkable drink, the premiumization movement is sure to deliver an extraordinary and unforgettable experience.
