Wine in casual dress, spirits in formalwear

According to the latest figures released by Canadean, the current volume of the global alcoholic beverages market is 305,503 million packs, of which 78% is beer, cider and ale, 15% is covered by spirits, and the remainder is wine. While these percentages are anticipated to remain fairly constant over the next few years, faster growth is expected in spirits and wines in Europe, compared with a relatively flat performance from beer. The sheer number of choices and options is causing a groundswell in packaging innovation and distribution channel improvements, as leading companies seek to grab hold of consumers' attention - and wallets.

As the number of distributed products increases, there is a concerted focus on reducing the material impact of their packaging. Among the leading brewers, material reduction and sustainability initiatives are growing in number and efficiency. Danielle Miller, packaging director at Anheuser-Busch InBev, explains InBev's philosophy: "We see materials reduction as one of the key parts of our packaging programme. A wide range of materials go into the manufacture and distribution of our products. We continuously raise the bar by reducing the amount of material we use, recycling everything we can, integrating the use of recycled inputs into our packaging and ensuring it is recyclable whenever possible."

After materials, the next step is to have state-of-the-art equipment, so that reductions in the materials going into the packaging process are not offset by poor packaging lines. "We continuously invest in equipment such as detection on-line, to guarantee everything is up to scratch and to develop standard operating procedures. Having 100% of our packaging checked on line allows us to optimise specifications without lowering the brand or product's quality. It also reduces variability with a narrow operating window, and allows us to make our packaging lighter and more sustainable.

Away with the excess
Miller continues: "To drive further improvements, this year we assembled a new team dedicated to developing long-term disruptive technologies. The team works closely with our internal experts and external partners to identify opportunities to innovate. For example, we invested $100 million in a new aluminum bottle manufacturing process in the US, which has allowed us to reduce the weight of our Bud Light 16oz bottles by 40%, from 51-31g."

These improvements form part of a process called the unified brewery management system, which - in conjunction with materials reduction, engineering improvements and an efficient procurement system - allows improvements to continue at a staggering rate, as Miller concludes.

"Through multiple channels and initiatives, we are able to use fewer and lighter materials in our packaging. We have made great strides in this area, and our culture of continuous improvement led us to commit to reducing the amount of material in our packaging by another 100,000t by 2017. We are nearly halfway there, thanks to a reduction in packaging of 48,000t in 2013. We estimate that this reduced GHG emissions by 71,677t.

"One example is the reduction of paper material: by removing carton partitions and other paper from cartons, reducing the gauge of the paper, trimming down the sizes of the flaps in folding cartons and other various paper optimisation techniques, we were able to reduce paper use by 32,254t, or the equivalent of 248,000,000 12-pack beer cartons. Across the company, our sites have also worked hard to reduce the amount of glass we use to bottle our products. By paring the weight and thickness of some of our beer bottles while maintaining product safety and structural integrity, we reduced glass use by 13,839t, the approximate equivalent of 77,000,000 355ml beer bottles. Light-weighting bottles continues to be a technique that is being implemented across the entire company and wider industry. In metal and plastic, through techniques such as downgauging metal crowns and lids, and using thinner shrink wrap, we saved more than 1,100t of metal and nearly 500t of plastic."

Storytelling spirits
What is apparent in these developments is that there is no loss of quality, product protection or shelf life in the beers, and they continue to be sold in increasing volumes. However, the packaging remains one of the highest constituents of the unit cost, and by further reducing materials and improving systems, this cost can be lowered without consumers having to pay more for the brands they love. While the recession undoubtedly made a dent in the volume of beer production, the rise of the craft beer and growing local brands have actually increased beer profits per pint or bottle sold.

In the spirits market - much like beer - glass is the main packaging material in use, although there are growing pockets of use for PET and metal. With a considerably higher price point, premium and luxury packaging is designed to demand more attention from consumers. It will typically take longer for consumers to finish luxury bottles than regular ones, meaning they spend more time in homes, being admired whilst being used. Standards are high for luxury goods, and consumers expect products to be of exceptional quality.

Today, the environment, responsibility and sustainability are also vital components to any company and brand. To look beyond material values towards a grater cause and act responsibly is well respected, and increasingly drives consumer needs - but as well as these major trends, provenance is fast becoming a key differentiator in telling the story of a brand or product. Origins and other such aspects of a product's history give customers a further sense of status, which speaks to them beyond the material means of owning a bottle with a luxury name.

"Core to our strategy and approach to packaging is the idea of truth," explains Jeremy Lindley, global design director for Diageo. "The start point for us always delves into that and has a good look at the stories behind the product - who created it, where it's from, how it's made, or what's unique about it. Sometimes we go all the way back to John Walker, or we may focus on the master blenders and distillers of today."

In the same way an antique's worth is heightened by an interesting story, greater value is bestowed upon a prestige spirit that is accompanied by a tale of its origin, which can often be older than the purchaser themselves. The most successful packaging designs, therefore, are those that can communicate a certain heritage while remaining aesthetically attractive. This sentiment is echoed by Eric Naf, packaging director for Absolut.

"Luxury packaging is evolving, and I expect to see the substantial win over the superficial," he says. "Consumers want to feel an authentic bond to the drink, as an extension of themselves and their character. As individuals, they will continue to want their choices and what they drink to reflect this. To be able to tell a relevant and true story about your company or brand will be necessary; it will be asked for by an increasing number of consumers, providing heritage and value when they have the chance to drink. There is so much choice in the luxury market: we have to be able to provide something authentic, and each brand's story is unique and allows us to establish closer ties with consumers who share our values."

The transformation of the casual beverage

The popularisation of quality wine as a social beverage has opened a floodgate of product and pack variants, and the deluge shows no signs of abating.

The demand from consumers has already led to wine being packaged for convenience in boxes, PET bottles and cans, as well as the traditional glass, and this period of change is far from over.

The first Gallo Consumer Wine Trends Survey - which looked at the drinking habits of more than 1,000 wine-drinkers aged 25-64 - concluded that although different age groups display diversity in their approaches to wine, the most noticeable common ground was convenience. According to the report, "wine aisles have seen dramatic transitions across the world - from the traditional 'sea of glass' to places of much more varied offerings".

Between premium and value box wine, screw tops, and portable 187ml bottles, the Gallo survey identified that retailers are beginning to dedicate entire sections of wine aisles to single-serve packaging or other convenient options, such as the box. Box wine is particularly more relevant today than ever before, with 58% of wine drinkers indicating that they have purchased it.

Stephanie Gallo, vice-president of marketing and third-generation Gallo family member, says: "For over 80 years Gallo has been committed to excellence, and in today's wine market, that means we must remain at the forefront of innovation, by crafting wines that reflect wine behaviour at the dinner table and beyond. As a whole, the survey told us that consumers are enjoying wine more often than ever before, bringing it into dining, entertaining and even the most casual experiences -- all while demonstrating an eagerness to experiment with various flavours and formats.

"There's a sea change occurring in consumers' perceptions of wine - it's becoming a casual social beverage, as an adjunct to the dinner table. These changes are part of an exciting transition in the wine industry, as wineries focus more on catering to customers rather than asking them to conform."

Whatever your drinking preferences, one thing is for sure - these are exciting times for choice and innovation in the alcoholic drinks market.