The beverage alcohol industry has made considerable strides in recent years in improving and highlighting diversity and inclusion. Many successful brands, businesses and entrepreneurs have contributed towards this admirable goal.
From a purely business perspective, appealing to a wider consumer base makes sense. People of all backgrounds drink alcohol. Products that reflect the reality of our country’s increasingly diverse legal drinking age population are better positioned for growth going forward.
“We live in the most ethnically diverse population in history,” says Danica Dias, founder of Grown Folks, a Los Angeles-based, Black/woman-owned hard seltzer brand meant to celebrate soul food and Creole culture. “Consumers seek out ethnic products and flavors, and for such a diverse population, they want to see themselves in the brands they engage with.”
Equal opportunity is equally important. Launching and growing beverage alcohol brands is hard enough without roadblocks that have nothing to do with business. All people should enjoy the same chance of success — and failure — when it comes to entrepreneurialism in this industry.
“The social movements and heighened awareness around racial and economic inequalities have brought to light the systemic barriers that Black and minority-owned businesses face,” says Sunshine Foss, founder/CEO of Happy Cork, a wine and spirits shop in Brooklyn, NY, that curates a large selection of Black- and minority-owned brands. “Consumers are more conscious of these disparities, and are making intentional choices to support businesses that promote social justice and equity.”
Celebrate Cultures, Grow Businesses
Brands focused on diversity and inclusion often prioritize giving back to the cultures they represent. This strategy buoys both this subcategory of products and entrepreneurs as well as the broader alcohol industry.
Fierce & Kind Spirits, a San Diego-based spirits company, is known for its commitment to diversity and inclusion. They recently launched limited-edition Pride bottles for the brand’s straight bourbon (renamed Straight (Gay) Bourbon), newly launched Single Barrel Cask Strength bourbon and American vodka.
“It’s important to recognize that consumers are diverse and so the ecosystem of brands that supplies them must reflect that,” say Cyndi Smith and Basem Harb, CEOs and cofounders. “Fierce & Kind believes both in standing up for what is right and in strong allyship with diverse communities, not only because it’s right, but because, after all, they are our consumers — all of them.”
The company has launched The Fierce & Kind Equity Foundation, driving 25% of the producer’s profits to support the economic growth of historically underserved and underrepresented communities.
“Brands that are from and are allied with LGBQT+ communities must be recognized and supported to create the sort of healthy environment that allows them to thrive, grow and come back to lend that support and recognition year after year,” Smith and Harb say.
Also on the West Coast, Gentleman Farmer is a boutique, gay-owned winery that specializes in Old World-inspired wines from sustainably farmed vineyard sites in Napa Valley. The company donates a portion of proceeds to LGBTQ+ causes.
“We are visible; we participate, we tell our story, we make wine that we are proud of, and we give back,” explain Joey Wolosz and Jeff Durham, partners and owners. “10% of June sales went to three LGBTQ+ youth organizations: It Gets Better, LYRIC, and VOICES.” It’s important to remember that helping minority individuals also helps the industry as a whole. The goal goes beyond assisting specific groups, as fostering diversity can have a greater positive impact.
“Wine is a diverse beverage, including the diversity of people who create it,” say Wolosz and Durham. “A curiosity about the multifaceted histories and stories of the people who create individual wines supports the whole craft industry.”
Bringing in more consumers can only help the bottom lines for all businesses. For instance: Bacardi, in partnership with the Hispanic Heritage Foundation, recently announced the launch of the second annual Visión Verde grant. This $100,000 initiative is designed to empower Latinx/Hispanic entrepreneurs within the beverage alcohol service, sales and hospitality industries across the U.S.
“The Hispanic Heritage Foundation (HHF) supports Latinx/Hispanic entrepreneurs through education, workforce development and leadership programs that foster social innovation and celebrate Latino culture,” says Eddie Cutillas, vice prsident of community relations, Bacardi North America. “As a company with Latin roots, Bacardi is proud to partner with an organization with a shared commitment of providing opportunities and resources that enable sustainable growth.”
Latinx/Hispanic entrepreneurs continue to make meaningful contributions locally and nationally, “which is why Bacardi saw an opportunity to support them through the Visión Verde program with HHF,” adds Cutillas. “Entrepreneurship is the root of bold ideas, and we are excited to see how grant recipients make positive contributions to our industry and to the environment.”
Again, the benefits of such a program go beyond diversity and inclusion.
“The [grant] program also drives a focus on sustainability which is top of mind for so many consumers,” he adds. “All recipients of the Visión Verde grant gain access to Coctelería Consciente, a Hispanic-owned sustainability consultancy specializing in the hospitality sector which provides valuable education sessions on Integrated Waste Management, Carbon and Water Footprint, Renewable Energies, and Energy Efficiency.”
It’s a win-win mentality held by most if not all parties involved in this segment of the industry.
“By supporting these businesses, we celebrate the rich cultural diversity that enriches our society and encourages the development of products that reflect a wide range of experiences and tastes,” says Foss of Happy Cork. “When we invest in Black and minority-owned brands, we are also investing in the communities they represent.”
“These businesses often reinvest their profits locally, supporting community development, creating jobs and contributing to the overall well-being of their neighborhoods,” Foss adds. “In essence, supporting Black and minority-owned brands is about more than just making a purchase; it’s about making a difference. It’s about building a more inclusive, equitable, and vibrant economy where everyone has the opportunity to thrive.”
Increased Consumer Attention
Like any category within the beverage alcohol industry, these brands would not grow if consumers were not buying the products. More people today — especially younger LDA shoppers — actively seek out brands that share their social values.
“The vast majority of people believe in social and economic progress, and the brands that lead the way will earn the loyalty of important consumer constituencies and be remembered far longer than the prospective disparaging comments of this pundit or that,” say Smith and Harb of Fierce & Kind. “Don’t underestimate your consumers — they’re savvy and will be there for you if you’re unwaveringly there for them.
“Ethical consumption is a real thing and is a growing trend with Gen Xers, Millennials and Gen Zers,” they add. “It’s clear to us that a good portion of Fierce & Kind’s traction, after only one and a half years on the market, is due to consumers choosing to support a brand that supports them or people around them. Consumers want to support brands that align with their values, and as purchasing power shifts, brands need to be damn sure that they are authentically representing values that align with these market dynamics.”
It’s a pattern that has played out successfully and meaningfully for different brands in other businesses.
“If you’re going to buy a bottle of whiskey or vodka, why not buy one that is doing good in a community that you care about?” Smith and Harb say. “We’ve seen the power of values-aligned consumerism in other market segments. Just look at Ben & Jerry’s, Tom’s or Patagonia — social enterprises that give people a voice through how they spend their dollars. Consumers are feeling the power of that voice and are choosing how to exercise their consumption to do good. Those brands are being recognized and rewarded by those people with some of the strongest brand loyalty in any market.”
More Work Ahead
While much progress has been made, the industry as a whole still has room for improvement in this area. So what steps are next?
“One of the most effective ways to support Black- and minority-owned brands is by diversifying supply chains,” says Foss of Happy Cork. “Industry leaders should actively seek out and partner with these businesses, ensuring they have fair representation and opportunities to succeed in the marketplace. Consumers need to be more intentional with their spending as well. Embracing diversity not only benefits these businesses but also enriches the industry as a whole, driving innovation, creativity and sustainable growth.”
Agreeing with her is Dias of Grown Folks: “Ensure access to distribution and retail space. Provide grants and investment opportunities. Prioritize purchasing from minority suppliers.”
Part of the way that these improvements take root is through the work of minority-owned brands and businesses that have already achieved success. Looking out for those who come after you is key in building sustainable cultural change
“The wine industry is about mentorship in both structured and more nuanced ways,” say Wolosz and Durham of Gentleman Farmer. “Each generation helps the next one. The industry promotes itself by helping the next guard.”
What advice would the partners give to LGBQT+ brands just starting out?
“You be you.”
Kyle Swartz is editor of Beverage Dynamics. Reach him at kswartz@epgmediallc.com. Read his recent piece, Our 2024 Retailer of the Year: Macadoodles.
