How Beverage Companies are Preparing for the Holiday Season

When the weather gets chilly and the festive lights turn on, what special holiday drink are you ordering? Whether it be an iced peppermint mocha or a steaming hot chocolate, your contribution helps the food and beverage industry with their final quarter of the year.

The heart of any company’s product plan is appealing to their consumer base. Implementing seasonal menus attracts new and old customers with the fascinating and limited-time only options. From classics like pumpkin spice, peppermint, and hazelnut, to recently developed flavors such as cookie butter and caramel brulée, consumers have a wide-array of options to select from. Customers also have increasing deals and offers available to them, as companies look to maximize profit to the fullest extent possible during the holiday season. Since it is the last quarter of the year, the holidays also mean that it is the company’s last chance to boost sales and end the year on a good note. Dunkin’ Donuts LLC, for example, has a Monthly Member Exclusive program that has ‘five ways to stay festive’ this December. Companies also amp up their marketing efforts with increased emails and social media posts, as well as recently emerging TikTok brand ambassadors and holiday menu reviews. Overall, the addition of seasonal menus, numerous deals offers, and intensified marketing increases the number of transactions as well as the customer’s average spend per transaction.

Despite the recent profound inflation in the food and beverage industry, the high prices are not stopping consumers from being excited about purchasing holiday beverages. In a survey conducted by Morning Consultant, 55% of adults report feeling excited about purchasing holiday groceries, snacks, and/or beverages. The percentages increase even more when annual income is above 50K. The same survey reports  that the difference between spending more or less this holiday season in overall holiday spending is 20%, while in the food and beverage industry it is only 4%. Although spending in other sectors such as decor might fall, customers will not be likely to cut back on their holiday beverage spendings this year. At Starbucks Corporation, even with the 6% price increase, there is still an influx of sales with revenue finally returning to pre-pandemic volumes. Pumpkin spice sales alone increased 70% from last year, displaying the pandemic’s diminishing effect. Their Q4 revenue went to a record $8.4 billion and an average 8% increase in spending per transaction.

Along with many other industries, the beverage industry is still attempting to recover from the brutal losses of the pandemic. In addition, they are faced with new challenges such as inflation and supply chain shortages. Pushing past these drawbacks, the beverage industry is still expected to strive this holiday season with an excited customer base eager to savor their favorite holiday flavors.