Chef David Chang identifies that Gen Z's reduced alcohol consumption is a major financial threat to the restaurant industry. Traditionally high-margin beverage sales have subsidized food costs, but this model is breaking down. As a result, restaurants face a dual pressure of rising labor costs and shrinking beverage revenue, forcing a difficult choice between raising food prices or facing insolvency.

By launching a beer so strong (30% ABV) that it is illegal in 15 states, Sam Adams creates an aura of exclusivity and rebellion. This "banned" status generates significant earned media and attracts connoisseurs, turning a product limitation into a powerful marketing tool that reinforces the brand's craft credentials.

Entrepreneurs often chase trending markets. However, even a market in slight decline, like craft beer, can be enormous ($28 billion). Capturing a tiny fraction (e.g., 0.05%) of such a market can still result in a nine-figure business, making it a viable opportunity.

Despite narratives of decline in the West, the global alcohol industry is thriving. This resilience comes from two key trends: consumers "drinking less, but better" by choosing more expensive, premium beverages, and the rapid growth of alcohol consumption in large emerging markets, especially among young people and women.

Pricing power allows a brand to raise prices without losing customers, effectively fighting the economic principle that demand falls as price rises. This is achieved by creating a brand perception so strong that consumers believe there is no viable substitute.

Counterintuitively, the tobacco industry thrives despite losing millions of customers. As casual smokers quit, the remaining base is more addicted and less price-sensitive. Companies exploit this by raising prices faster than sales volume declines, increasing profits from a shrinking market.

Contrary to headlines, Gen Z's drinking habits are nuanced, not absent. Consumption is delayed by later workforce entry. In-the-workforce Gen Z drinks similarly to prior generations but practices 'zebra striping'—alternating alcoholic and non-alcoholic drinks for more conscious consumption.

The beer industry is a powerful training ground for marketers. With functionally identical products, success hinges purely on branding, teaching marketers how emotion, advertising, and sponsorships drive consumer choice when product differentiation is nonexistent.

Quitting alcohol eliminates hangovers, freeing up at least two productive hours each day. This compounds to 730 extra hours annually that can be directly invested in revenue-generating activities like learning new skills, building relationships, and creating new business ventures.