Positioning Powdered Alcohol

In case you missed it, the Alcohol and Tobacco Tax and Trade Bureau catapulted powdered alcohol into the news when it approved Palcohol's powdered vodka, rum and other powdered cocktail versions to be marketed in the United States. Afterwards, the bureau reversed their decision and said it was in error. Whether powdered alcohol will be hitting store shelves anytime soon is unclear, however Palcohol's website claims they hope for it to be available in the fall of 2014.

But just who would purchase powdered alcohol? Mark Phillips, the man behind Palcohol has stated that he created powdered alcohol because he leads such an active lifestyle hiking, camping, biking, kayaking and he wanted to enjoy a cocktail afterwards without having to lug a bottle of alcohol and mixers around with him.

It's been reported that a cached version of the Palcohol website had previously contained provocative language while they tried to figure out how to market their new product. And, if you visit their website now, they've definitely toned down all the edgy ways Palcohol could be used and instead are focusing on ways other industries could use their product. Clearly they are still trying to figure everything out, but maybe marketing towards a younger, more active lifestyle is the way to go? We recently conducted an Alcoholic Beverage study and found that 51% of Millennials try a new alcoholic beverage 6 times a year or more (compared to only 15%-20% among older generations). We also found that at least half of Millennials pay particular attention to whether drinks are a good value, have moderate alcohol content, is sweet and light-tasting, is sophisticated and would not cause hangovers/headaches.

I'll guess we'll have to wait and see if powdered alcohol will be making it to market in the near future and how Palcohol decides to move forward with their positioning.

For more information on our Alcoholic Beverage study, click here.