How leaders can prepare for the future of the alcohol industry
6 mins read

How leaders can prepare for the future of the alcohol industry

Prohibition era (1920-1933) was a bold attempt to eliminate alcohol from American life, aiming to curb its negative societal effects. Instead, it triggered unintended consequences that are still being felt today.

Yet almost a century later, a quiet debate over the role of alcohol has resurfaced. A six-member group, colloquially known as the “Hush Hush Committee,” within the U.S. Department of Health and Human Services is reviewing current alcohol guidelines. The inclusion of three Canadian members sparked intrigue, as their views could shape American policy.

As the founder of Blind Tiger, a brand offering alcohol-free, low-ABV cocktails, and Room 33 Speakeasy, I have spent much of my career at the intersection of hospitality and culture , observing how the role of alcohol continues to evolve. Our brand is inspired by Prohibition speakeasies, and history has shown us that over-regulation often backfires. The lessons of Prohibition should serve as a warning as we approach the future of alcohol consumption.

Learning from Prohibition

Prohibition was a well-intentioned but ultimately misguided effort to eliminate alcohol from American society. Rather than curbing alcohol consumption, it had the opposite effect: speakeasies and illicit distilleries flourished, and figures like Al Capone capitalized on the alcohol black market. Crime has increased and the federal prison population has increased, with one estimate showing a 561% increase. Economically, the government lost $11 billion in tax revenue from alcohol sales – a loss deeply felt during the Great Depression. Perhaps most tragic of all, more than 10,000 people have died after drinking contaminated alcohol like “bathtub gin.”

For Blind Tiger, which is inspired by the resilience of these Prohibition-era speakeasies, this story is a reminder that overregulation often leads to unintended harm. It is essential that we learn from the past and avoid repeating it, especially as today’s policymakers debate the role of alcohol in our culture.

The modern debate: alcohol consumption under surveillance

A six-member group is currently reviewing alcohol consumption guidelines, with several members arguing that no amount of alcohol is safe. The idea that a panel — especially one made up of international members who may not fully understand the cultural and societal nuances of alcohol consumption in the United States — could make sweeping recommendations that would impact millions of Americans is worrying. The decision to classify all alcohol consumption as dangerous could have far-reaching consequences, likely to alienate a significant portion of the population and undermine public confidence in health guidelines.

Studies have shown that moderate alcohol consumption can provide health benefits, including reduced risk of heart disease and stroke. According to the Harvard School of Public Health, moderate alcohol consumption – up to one drink per day for women and two for men – has been linked to these positive outcomes.

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Many key players in the industry are paying attention to this growing trend. Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), spoke about this in an interview with Just Drinks, mentioning the “growing global threat of anti-alcohol advocacy.” He highlighted the importance of science-based and evidence-based recommendations for governments when advising consumers on alcohol consumption, emphasizing the need for a balanced and informed approach amid this movement croissant.

As this debate unfolds, it is essential to consider not only the health risks of alcohol, but also the social and cultural role it plays in people’s lives. Blind Tiger was founded on the belief that everyone should have the freedom to enjoy a good drink, whether it contains alcohol or not. Our mission is to create an inclusive drinking experience for all, and this emphasis on moderation aligns with the growing movement toward healthier, more conscious choices – not elimination.

For industry leaders

In light of the Committee’s deliberations, beverage industry leaders can feel empowered by focusing on the following key strategies:

1. Diversify product offerings: It’s important to evaluate your portfolio and ensure a range of options that meet changing consumer preferences, including alcoholic and non-alcoholic beverages. Offering diversity in products can not only prepare your brand for potential regulatory changes, but also appeal to the growing trend of conscious consumption, aligning with health-conscious consumers without alienating others . This is a proactive step to future-proof your brand in the event of stricter guidelines.

2. Explore strategic partnerships: Connect with others in the industry who share similar values ​​or offer complementary products. Collaborating with companies focused on wellness or innovation can help you strengthen your position in a more regulated market.

Tendency

3. Strengthen your core mission: Staying grounded in your brand’s core mission is crucial. Prepare your team to respond quickly to any new regulations, while maintaining your brand’s integrity and commitment to creating an inclusive experience for all.

A call for balance and inclusiveness

The lessons of Prohibition, particularly the unintended consequences of overregulation, serve as a cautionary tale. In this committee’s deliberations, it must prioritize balance. Rather than promoting extreme abstinence, they should encourage responsible drinking and give consumers the opportunity to make better, more informed choices. The future of drinking culture lies in inclusiveness, moderation and personal freedom, ensuring that everyone can celebrate in their own way without the harmful echoes of the past. Ultimately, the United States should proceed cautiously, ensuring that any new guidance is balanced, evidence-based, and reflective of the diversity of views and experiences of its own citizens.