'You Are What You Drink' and Other Insights from a Soft Drink Study

For Gen Alpha and Gen Z, every beverage choice doubles as an identity statement. That's what 58% of Gen A/Z say vs. 41% of Millennials, according to a survey by Keurig/Dr Pepper. The survey also finds Gen A/Z are twice as likely as Millennials to choose beverage brands that signal something about them.

Beverages are moving beyond routine to become more personal, reflecting how people feel, how they want to show up and the lives they are living, the study says.

While Keurig/Dr Pepper is a soft drink company, there is no reason to believe its findings are any less applicable to alcohol than to pop.

Routines still matter, the study says, with Gen A/Z 58% more likely than Millennials to choose drinks based on a mood or occasion and 25% more likely to switch beverages based on activity.

The study reaffirms what bev/al marketers have long known – beverage occasions are with food, with others,

"As beverage moments become more intentional, consumer behavior is following. The idea of a single “go-to” drink is fading, especially among younger consumers. Rather than replacing favorites, they’re expanding their choices — building broader repertoires that flex across moments and needs," the study says.

"Health remains one of the most important forces in beverage choice, and what it means is expanding. Today, wellness goes beyond nutrition alone to encompass balance, enjoyment and feel-good benefits. When Millennials+ choose a beverage for its benefits, health is often grounded in discipline: reducing sugar, managing intake and making trade-offs," it adds.

Compared with younger generations, Millennials are 48% more focused on reducing sugar, 51% more focused on managing intake.

However. the study also notes that Gen A/Z aren't choosing between health or enjoyment. They expect both, often in the same product. That's an important insight for soft-drink marketers, but it may also be an important insight for alcohol beverage marketers who have increasingly been turning to no/low alcohol products: Especially on no-alcohol products, perhaps you should promote health and wellness.

If you wonder why Michelob Ultra overtook Modelo Especial as the best-selling beer by volume in the U.S. last year, the study has a clue: The topic "functional support beverage: has increased in social media conversation by 140% in the last year. While Michelob Ultra does not claim to be a functional support beverage, it has positioned itself as the beer for athletes.

Kuerig/Dr Pepper notes that one way it is responding to the health and wellness push is "expanding mini-cans for right-sized enjoyment.

Digital Discovery

How people discover beverages has changed, the study says. It is no longer anchored to the shelf but now part of "a connected ecosystem where digital touchpoints and personal networks shape what people try and buy." Seventy percent of Gen A/Z rely on reviews and rations vs.54% of Millennials, 66% of Gen AS/Z look at online product recommentations vs. 51% of Millennials, 64% are influenced by what friends, creators of social feeds are drinking vs. 48% of Millennials, and 50% of Gen A/Z use digital tools such as QR codes and AI recommendations to find new beverages vs. 40% of millennials.

"Discovery is now algorithm driven," the study notes, with Gen A./Z saying it is 75% more likely than Millennials to say their expectations for personalized beverage experiences have increased over the years. And 75% of Gen A/Z say eye-catching in-store displays influence their choices vs. 63% of Millennials.