21 Questions BevAlc Brands Can Answer with Product Testing

By John Eigenbrood

Since the pandemic of 2020, Americans have returned to most of their everyday habits. But some behavioral changes have stuck around. 

One of those changes is the way we drink alcoholic beverages. For much of 2020, Americans didn’t have the option to drink alcohol on-premise at a bar or restaurant. But even after many food and beverage establishments re-opened, Americans had adjusted their drinking habits to enjoy more at-home usage.

23% of consumers drank more at home over the past 12 months, compared to 16% who drank more on-premise

It makes perfect sense that they would: With persisting macroeconomic pressures like inflation and high interest rates, budget-minded buyers choosing to drink at home are still driving a huge proportion of the volume of alcoholic beverage sales in the US.

A recent survey from Kantar, for example, found that 23% of consumers drank more at home over the past 12 months, compared to 16% who drank more on-premise.

As long as American consumers are demanding alcoholic beverages, they’ll be looking for drinks to have at home and bring to social gatherings. This means purveyors of those beverages will need in-context research to access the in-context data they need to drive successful innovation. 

What do we mean by “in-context” product testing? Only data derived from real world experiences of shoppers consuming your product in a natural environment can tell you what you need to know to find the right flavors, branding, price point, claims and more.

"Testing in-context with target consumers has increased our capabilities to deliver durable innovation," says Lucienne Castillo, Senior Director Consumer Insights & Strategy at Pabst Blue Ribbon. "Thanks to the quantitative and qualitative data we've received from Highlight, we're able to mitigate so much of the risk inherent in developing and launching new products.”

"Thanks to the quantitative and qualitative data we've received from Highlight, we're able to mitigate so much of the risk inherent in developing and launching new products.” - Lucienne Castillo, Sr Dir Consumer Insights & Strategy at Pabst Blue Ribbon

So how can alcoholic beverage brands make the most efficient and effective use of in-context research to gather consumer insights? It’s not always easy with this category given its unique challenges. Regulations don’t just vary state by state–they can vary county-by-county. You want to know what consumers think of your product, and you want to do it responsibly in a controlled setting. 

There are, however, many questions you can answer to give your brand team the guidance they need to develop beverages your consumers will love. It all hinges on asking the right questions.

Test your products with real consumers, at home

Pro-tip: You can jump straight to the section you need by clicking on your question in the list below:

1. What are the greatest unmet or undermet needs that exist in BevAlc today?
2. What are the gaps in consumer expectations versus experience today? 
3. Where are my competitors over- and under-delivering?
4. Why is my product underperforming?
5. We are considering a change: how do I ensure I don’t alienate my current consumers while trying to grow my brand? 
6. How should we expand our current line to attract new consumers?
7. How can I drive consumer-led innovation?
8. What concept appeals most to my target consumers?
9. Which prototype should we move into further development? 
10. How do the functional and aesthetic components of my packaging perform? 
11. Are there any frustrations or tensions our packaging could solve?
12. Do my customers want more sustainable product attributes?
13. Which messaging–such as claims–resonate best with my target consumers?
14. How should we communicate our product experience to ensure it generates trial interest and exceeds expectations?
    
15. How does my product compare to new players emerging on the shelf? 
16. I need head-to-head data for a retailer sell-in conversation 
17. How does my product or prototype perform against key competitors and why?
18. What occasions inspire consumers to drink at home–and what kind of drinks do they choose for different occasions?
19. Are there possibilities to expand the way my product is used today? 
20. Does actual product usage match intended product usage?
21. Are there key differences in occasions / usage across key consumer targets?
    
    

Ensure your innovation keeps pace with emerging trends and evolving preferences

Key questions in-context usage testing can answer:

• What are the greatest unmet or undermet needs that exist in BevAlc today?
• What are the gaps in consumer expectations versus experience today? 
• Where are my competitors over- and under-delivering?
• Why is my product underperforming?
• We are considering a change: how do I ensure I don’t alienate my current consumers while trying to grow my brand? 

Preferences for alcoholic beverages are constantly evolving. Keeping a close eye on emerging trends is important, but to build a truly cutting-edge product, you need to be ahead of the trends–and the only way to do that is by unlocking hidden opportunities.

For example:

• Better-for-you is trending: Is there room for a superior low-carb IPA?
• You have a hunch bitter flavors may be the next big thing in ready-to-drink: Is there appetite for a new flavor profile or is your hunch incorrect?
• Your wine isn’t flying off the shelves like it was last fiscal year: Can you boost velocity with a packaging update that wins new customers and re-engages old ones?

With in-context testing, you can use both quantitative and qualitative feedback from your current and prospective consumers to identify areas your current product (or a competitor’s product) are falling short of the mark.

Even if product performance meets your desired standards, this kind of in-context testing with real consumers can reveal opportunities you may not have even considered. With data in hand, you can explore trends to see what aspects of your product perform the strongest or weakest, and build ideas for refinements or even new SKUs from there.

Qualitative testing can be especially effective for ideation based on the voice of the consumer. With quantitative questions, you’ll only measure the metrics you think to measure. Qualitative feedback like video, photo, or in-depth interviews, on the other hand, can spark ideas when product testers have the ability to speak freely on the product experience and express unmet needs. 

Finally, category exploration can reveal where current products in the category are missing opportunities to meet consumer needs. Are there metrics or open-ended questions where consumers express frustration, tension, or disappointment? Even if there are metrics on which a competitor is outperforming your product or prototype, there may be other ways to fill a gap or white space in the category. (This is another way qualitative feedback can be key for ideation!)

Build better beverages with in-context consumer testing

Digital concept testing

Key questions in-context testing can answer:

• How should we expand our current line to attract new consumers?
• How can I drive consumer-led innovation?
• What concept appeals most to my target consumers?
• Which prototype should we move into further development? 

One easy win for BevAl brands is digital product testing. For example, if we’re talking about updates to artwork on your label as above, you may be able to test that concept digitally without having to ship a single product to your target consumers.

This is also an easy way to generate ideas, direction, and guidelines for future product innovation and line-extending SKUs. At-home testers can tell you all about their current consumption habits and product preferences without tasting any samples at all.

Claims and packaging testing

Key questions in-context testing can answer:

• How do the functional and aesthetic components of my packaging perform? 
• Are there any frustrations or tensions our packaging could solve?
• Do my customers want more sustainable product attributes?
• Which messaging–such as claims–resonate best with my target consumers?
• How should we communicate our product experience to ensure it generates trial interest and exceeds expectations?

While packaging is important for any physical product, the competition is fierce amongst BevAlc brands. Some of the CPG industry’s most innovative packaging lands in the Beer & Wine aisles.

Making branding choices for your packaging can feel highly subjective. How do you choose colors, illustrations, or fonts that will drive sales volume? That’s one area where in-context testing can provide a wealth of data to support your branding decisions. You can hear directly from consumers which packaging conveys creativity and fun if you’re an emerging craft beer brand, or which labels signal luxury and indulgence if you’re a top shelf liquor brand.

Just a few award-winning craft beer labels

• If you’re releasing a light ale, does it have the same full flavor as its higher calorie counterpart?
• Can a sugar-free alternative to your ready-to-drink cocktail SKU claim the same great taste?
• Can your non-alcoholic prototype claim to quench thirst the same way your classic options can?

BevAlc brands also have a unique advantage when it comes to innovating packaging, especially when it comes to sustainability. Packaging is one of the simplest places in your supply chain to make better choices for the planet, and it’s one of the most visible ways to make those sustainable choices to your consumer. 

Are shoppers willing to pay more for "green" products?

See the data in Highlight's consumer preferences report.

BevAlc brands are further advantaged when you consider how much classic packaging is already made with sustainable materials like aluminum, glass, or cardboard–are there further “low-hanging fruit” opportunities to remove plastic completely, add environmental claims to your packaging, or even create an Extended Producer Responsibility (EPR) program that empowers consumer recycling?

During my time working at a brewery in Australia, it was apparent the community cared deeply whether local companies give back to the community, and would support them for doing so. That’s why we partnered with Waves for Water to donate a portion of sales to countries that needed access to clean water, and instituted programs to encourage recycling of six-pack plastic rings. It was a win-win that aligned to our values and built a stronger connection to our customers. 

Competitive testing

Key questions in-context testing can answer:

• How does my product compare to new players emerging on the shelf? 
• I need head-to-head data for a retailer sell-in conversation 
• How does my product or prototype perform against key competitors and why?

A key part of understanding your category is understanding your competitors. 

• If you’re a wine brand expanding into orange wines, what other brands at your price point are producing orange wines–and how do they compare on flavor and other key sensory metrics? 
• If you’re a liquor brand with a healthier ready-to-drink prototype, who else is coming out with better-for-you RTD SKUs–and how does your product compare?

This is where head-to-head in-context testing can make all the difference. Send a bundle of competitive products or have consumers source their own. This kind of direct comparison data is absolutely essential to drive plans for product innovation. 

Occasion testing

Key questions in-context testing can answer:

• What occasions inspire consumers to drink at home–and what kind of drinks do they choose for different occasions?
• Are there possibilities to expand the way my product is used today? 
• Does actual product usage match intended product usage?
• Are there key differences in occasions / usage across key consumer targets?

Whether it’s football season, a dinner party, or someone’s birthday, occasions drive the purchase of alcoholic beverages for at-home consumption all year round. 

For BevAlc brands looking to become the drink of choice for a specific occasion, in-context testing is irreplaceable to understand what consumers want (and crucially, what they don’t want) when celebrating at home.

• What kind of canned beverages do consumers prefer on 4th of July versus Thanksgiving?
• If beer dominates Superbowl celebrations, is there room for hard seltzer, cider, or a ready-to-drink option to fill a white space?
• What packaging updates to a wine bottle can inspire more seasonal holiday consumption?
• Can I create an occasion with the right product innovation?

In-context testing provides not only a deeper understanding of celebratory habits for special occasions and holidays, but also enables longitudinal testing of routines for those that drink at home regularly, but not always tied to specific occasions. (Unless you count Friday as an occasion!) You want to see what product attributes, price point, flavors and more will drive brand loyalty, so understanding how consumers perceive or react to your product over a longer period of time is key to making sure you’re set for long-term success on shelf.  

Some of the most iconic drinks and adjacent brands exist today thanks to insights gleaned from pre-existing consumer routines. Perhaps the most famous example of this is the Gin n’ Tonic. British military men stationed in colonial India learned to mix the antimalarial quinine from the bark of a tree called Vachellia xanthophloea with their ration of gin and scurvy-preventing lime–and they would drink this mix daily around 5pm to prepare for the evening onset of mosquitos. These habits gave rise to now-world famous brands like Fever Tree (the common name of the quinine-producing tree), Schweppes, and even the very concept of “happy hour”.

Enjoy a 3 minute history lesson on gin and tonic with this TikTok by @robbsfilms

A more recent example of a BevAlc brand using occasion testing to rocket their brand to happy hour fame is Aperol, owned by Campari. While this spirit may have been well-known in its home of northern Italy, it didn’t become a staple of summertime drinking until a well-executed marketing campaign made the Aperol spritz synonymous with warm weather celebrations.

From the NY Times: “There’s a Reason You’re Drinking So Much Aperol Spritz”

Though the drink is now a staple at bars, restaurants, and garden parties across America, the Aperol Spritz actually originated in the homes of Italians enjoying a refreshing drink on a hot summer’s day. Could consumer insights garnered through in-context testing hold the key to the next Aperol Spritz?

Testing beer, wine, liquor and more shouldn’t be a headache (even if overenthusiastic consumption can cause one). When so much alcohol usage happens at home, in-context testing is the only way to build a data-driven research roadmap.

Hear exactly what your consumers really think