Changing Trends Opening Up New Prospects for Alcoholic Beverage Market

Mon, 13 May 2019 1:11

The global alcoholic beverage market is on a rise in almost all major cities rapid urbanization in developing countries, availability of products at low cost and accessibility is assisting the growth of this segment.

While the growth is generally driven by an increase in global young-adult demographic, an increase in disposable income, and a rise in consumer demand for such products.

However, apart from these, a few of the initiatives or trends could impact the industry in the long run.

Adding CBD to Alcoholic Beverages

The Alcohol and Tobacco Tax and Trade Bureau (TTB) said recently that it had received “many inquiries from industry members” asking whether they can add ingredients derived from hemp in alcoholic beverages.

While it was federally legalized under the 2018 Farm Bill, to alcohol, the agency said it is in the process of reviewing its guidelines.

Right now it is deferring to the Food and Drug Administration (FDA) whether or not to add CBD to beer, wine, and liquor. 

The FDA has mentioned a number of times earlier that hemp-derived CBD cannot be lawfully marketed currently.

Although, it is still in on the cards as the agency is seeking alternative regulatory pathways to change that rule.

On the other hand, TTB left open the possibility that formulas containing hemp-derived CBD could be permitted later on if FDA approves that it could be lawfully marketed in food products.

Companies would still have to submit formula applications to TTB before moving towards the market. To seek permission, a company must first “submit laboratory analyses of ‘hemp’ ingredients to confirm that the ingredients are not controlled substances.

TTB would not approve a product that contains a controlled substance under federal law, including marijuana.

Alcohol sale in Oklahoma University (OU) sporting events

Well, alcohol sales could become an actuality at Oklahoma’s home football games beginning in fall 2019.

University of Oklahoma President James Gallogly will propose to sell alcoholic beverages at OU sporting events, including Gaylord Family-Oklahoma Memorial Stadium, to the Board of Regents meeting on May 10.

This should be a closure to a year-long process to seek permission for alcohol to be sold at home football games.

Words of OU director of athletics Joe Castiglione actually describe the scenario accurately.

He said the move was made to enhance the fan experience and to realize the changing interests of the fan base.

“It evolves. It’s constantly evolving. For us, it’s trying to recognize, as much as we can, there’s a broad interest”, he added.

They want to appeal to a wide variety of fans who want a variation of experience.

Such a unique move could open up a huge novel market for alcohol beverage makers, where they can come up with a different branding as well.

Moreover, OU sold beer back in April as well at home basketball games of the 2018-19 season and at the annual Spring Football Game.

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