Adapting to Gen-Z, major brands rethink product strategies

Reports find that Generation Z, those born between 1997 and 2012, are moving away from some classic American tastes, with poultry replacing beef, cold replacing hot, and lighter, less bitter beers.

Why it matters

The Wall Street Journal’s report points to some simple matters of changing tastes and fashions, but shifts away from beef products – which particularly affect the QSR Taco Bell – indicate some deeper concerns about the climate impact of consumable products among what is now the world’s largest generation. Brands should take note.

But it also points to a generation that has grown up on the internet and in an e-commerce world where far more tastes can be catered for than in traditional models.

The story

• Chicken over beef: Speaking to the Journal, Taco Bell executives note that despite a heavy percentage of the business dealing in beef, Gen Z’s “undeniable” impact has nudged the brand into testing and increasingly deploying more and more chicken products.
• Cold brews over hot coffee: Starbucks has invested heavily in cold drinks, while coffee-maker brand Keurig now sells a single-cup iced coffee brewer.
• Alcohol now lighter and healthier: The bitter flavours that characterised beer for older generations are giving to lighter flavoured and less boozy offerings. Netherlands based multinational Heineken has introduced a lighter, lower ABV variant, Heineken Silver, to cater to these tastes, especially in the US where the company is a challenger.

Key quote:

“The old days of just saying, ‘Well, this is what I’ve got, and I’m going to make you love it’ are over” – Jonnie Cahill, CMO Heineken USA, speaking to the Wall Street Journal.

Sourced from the Wall Street Journal