Functional drinks could become a driver for hospitality visits

Around 41% of UK adults would be more likely to visit pubs, bars and restaurants if they offered functional or feel-good drinks, according to new KAM Insights research.

The report, commissioned by Club Soda and the new Functional Drinks Collective, surveyed 1,000 consumers, and showed that 64% are willing to pay more for a drink with functional/mood-enhancing benefits than for a standard non-alcoholic drink.

With 61% of drinkers cutting back on alcohol but still wanting functional benefits, the data highlights a new growth channel for the hospitality sector. Among 18-34s, this rises to 80%, indicating generational demand. 

“If venues get interesting functional drinks, they will start to become more accessible to consumers who are not looking to drink alcohol,” Blake Gladman, strategy and insight director of KAM Insights, told delegates at Club Soda’s No, Low & Mid-Strength Summit in London on 21 October.

“The challenge is visibility and making consumers aware that these drinks are available in the venues that they’re going to.”

This is reflected in the 33% of consumers who believe that having a choice of functional drinks in venues would enhance their social experience, while 56% say simple menu signposting (such as a symbol representing a functional or feel-good drink) would make ordering easier.

With 21% of those surveyed saying they would consider buying mood-enhancing and or functional drinks when socialising, as an alternative to alcohol, Gladman added: “Functional drinks can start to become a daily routine as well as relaxing in the evening during work and study as well. There’s a real plethora of opportunities that these drinks can tap into, across multiple dayparts and occasions.”

Laura Willoughby, founder of Club Soda, said: "People aren’t just cutting back on alcohol, they’re looking for drinks that do something. Functional drinks are fast becoming the go-to for winding down, switching off, or feeling good, and people are drinking them more regularly to feel the benefits.

“For retailers and on-trade venues, this is a category that’s about to boom. The Functional Drinks Collective is working together to help consumers and the industry understand this space and make these drinks part of everyday life.” 

The newly-launched Functional Drinks Collective is a collective of functional drinks brands and partners, made up of Three Spirit, Smiling Wolf, NU Wave, Nekta, Muush, High and Dry, G Spot, Goodrays, Collider, Authentic Brew, PB Creative and Heineken.