The 'sober curious' lifestyle: choosing not to drink alcohol. Smart Drinking Co., Ltd.'s approach to 'non-drinkers/those unable to drink' (Part 2)

A lifestyle of not drinking alcohol is spreading, particularly among Millennials and Gen Z. In Europe and the US, the concept of "sober curious"—where people choose not to drink alcohol even if they physically can—is gaining attention. Responding to this trend, in January 2022, Asahi Breweries, Ltd. and Dentsu Digital Inc. established the joint venture " Smart Drinking Co., Ltd." to conduct digital marketing targeting people who don't drink or can't drink.

In the first part of our interview with President and CEO Mizuho Kajiura and founding member Miharu Hamada of Dentsu Digital Inc., we discussed the concept of 'Smart Drinking®' and the necessity of developing new customer segments. In the second part, they will delve deeper into the significance of this collaboration and the changes since the establishment of Smart Drinking Co., Ltd.

Traditional Asahi Beer creates value by partnering with a digitally strong company

Q. In December 2020, Asahi Beer proposed "Smart Drinking®︎," a concept respecting the lifestyles of both drinkers and non-drinkers. Subsequently, in 2022, it established the joint venture company Smart Drinking Co., Ltd. with Dentsu Digital Inc. Why did Asahi Beer choose to partner with Dentsu Digital Inc., which excels in digital marketing? What aspects of Dentsu Digital Inc. did you see as having potential, Ms. Kajiura?

Kajiura: Dentsu Digital Inc. is a young company, established in 2016. It's young, digitally strong, and has many non-drinkers. I was drawn to the fact that it possessed everything Asahi Beer lacked. Also, even before the company was founded, the Dentsu Digital Inc. people introduced to me by Mr. Hamada were often free-spirited and interesting. I was inspired, thinking, "Ah, this is what an interesting company is like," and I definitely wanted to work with them.

Q. What was the reaction at Dentsu Digital Inc. when Smart Drinking Co., Ltd. was established?

Hamada: Within the company, there were voices asking, "Why is Dentsu Digital Inc. pursuing this?" So we re-examined its significance. Asahi Beer has traditionally marketed to people who enjoy alcohol. With Smart Drinking Co., Ltd., however, we need to reach beyond Asahi Beer's existing customers to new demographics. While there are various ways to reach millennials and Gen Z who don't drink alcohol, digital marketing is undoubtedly the most effective approach. Once we explained this intent, we gained understanding within Dentsu Digital Inc.

Q. I imagine the Smart Drinking Co., Ltd. project differs significantly from the work you've done at Dentsu Digital Inc. What are the key differences you perceive?

Hamada: Dentsu Digital Inc.'s mission is to be a "business growth partner for clients." Our purpose is to revitalize all companies and create positive cycles in society. However, when I was seconded to Asahi Beer, I gained a perspective focused solely on maximizing benefits for Asahi Beer, regardless of Dentsu Digital Inc.'s framework. Since it was my first secondment, it was also a realization that the mindset was completely different from before.

We launched Smart Drinking Co., Ltd. while maintaining this same direction. It's a joint venture, not a business contract. Asahi Beer and Dentsu Digital Inc. stand on equal footing, share the same risks, and pour our entire being into achieving the same goals. This was completely different from Dentsu Digital Inc.'s previous operations. While I'm currently an advisor to Smart Drinking Co., Ltd., I continue to dedicate 100% of my effort to Dentsu Digital Inc.'s work as before, while also giving 100% to my advisory duties. I'm giving it my all, 200% effort. However, it's precisely because I experienced the secondment that I can handle both jobs; otherwise, it would have been difficult. I believe it's a beneficial and meaningful structure.

The promotion of "Smart Drinking®" has also changed Asahi Beer's reputation

Q. While digital marketing strategies and techniques can be applied by other companies, the act of founding Smart Drinking Co., Ltd. itself seems to hold originality and value. Mr. Hamada, has your perspective changed before and after establishing Smart Drinking Co., Ltd.?

Hamada: At Dentsu Digital Inc., clients are assigned staff members who specialize in their specific field. However, at Smart Drinking Co., Ltd., many staff members join us based on principles like "I resonate with the Smart Drinking® philosophy," "I can't drink alcohol either," "I want to challenge myself with something new," or "It excites me to see what we're doing." Creating that kind of environment is a significant achievement. Now, we see a similar trend emerging within Dentsu Digital Inc. itself.

Q. That's an interesting trend. Previously, team members were assigned in a top-down manner, essentially being told, "You're on this project." But for projects focused on building the company together, people who say, "I want to participate too" gather and form teams. So, has the way teams are formed changed?

Hamada: Exactly. We assign staff based on their willingness to participate, regardless of department. I've also heard that in Asahi Beer's new graduate recruitment, more students are expressing that they "resonate with the Smart Drinking® concept."

Q. So the perception of the Asahi Beer brand is changing, and this is having a definite impact on recruitment. Certainly, among highly creative and talented students, there might be some who dislike beer and therefore don't apply to Asahi Beer. How do you view this situation, Mr. Kajiura?

Kajiura: I've set several goals for Smart Drinking®, one of which is making Asahi Beer the most popular company in the industry. I'm very pleased that through the Smart Drinking Declaration and the establishment of Smart Drinking Co., Ltd., we are steadily climbing that ladder.

I sometimes get questions from university students preparing for job hunting asking, "If I can't drink alcohol, does that mean I can't join Asahi Beer?" That's absolutely not the case. In fact, people who don't drink or can't drink are valuable assets at Asahi Beer, and we very much want them to join us. Currently, young employees from Dentsu Digital Inc. are doing great work, but I also hope to see young talent from Asahi Beer emerge and thrive within Smart Drinking Co., Ltd.

Young employees are also playing key roles in Smart Drinking Co., Ltd.'s store operations. Personally, I enjoy alcohol and have handled alcoholic beverages at Asahi Beer for many years. But our young employees actually understand the perspectives of non-drinkers or those who can't drink better than I do. That's precisely why we place great importance on their input when developing the concept and menu for "SUMADORI-BAR SHIBUYA," the bar operated by Smart Drinking Co., Ltd. that caters to non-drinkers.

Hamada: In large corporations, it's still difficult for ideas proposed by new hires to be adopted. I believe Smart Drinking Co., Ltd. is a company that offers opportunities for young people.

Kajiura: We design our own drink menus, develop our own digital marketing strategies, and handle our own social media outreach. These are things we couldn't easily challenge ourselves to do at Asahi Beer. That might be the very reason we launched Smart Drinking Co., Ltd.

The discovery that products aimed at non-drinkers are also popular with drinkers

Q. It's been about a year since Smart Drinking Co., Ltd. was established in January 2022. What challenges have you faced so far? Also, what have you focused on when engaging with a different customer base and implementing unprecedented marketing approaches?

Kajiura: Everything we've challenged at Smart Drinking Co., Ltd. is the complete opposite of what Asahi Beer has done before. Our target isn't drinkers, but non-drinkers/those who can't drink. Instead of the mass marketing we'd continued at Asahi Beer, we're narrowing our target and approaching them through digital marketing. While Asahi Beer has its headquarters in traditional Asakusa, Smart Drinking Co., Ltd. is based in cutting-edge Shibuya. I think they'll connect somewhere down the line, but for now, we're just continuing to do the exact opposite.

Q. Mr. Hamada, from your perspective at Dentsu Digital Inc., what are your thoughts? It seems Smart Drinking Co., Ltd. operates with a significant marketing strategy. Are there any new challenges that differ from previous digital marketing approaches?

Hamada: Establishing our own joint venture and launching our own business was a huge challenge. Since this isn't client work we received at Dentsu Digital Inc., we can't consult clients on our direction. We have to figure everything out ourselves. This is a first for Dentsu Digital Inc. too, and we still feel there are many challenges ahead.

Moreover, while we continue to deepen our expertise in various aspects of digital marketing, operating the physical store "SUMADORI-BAR SHIBUYA" is also a major pillar. We must consider the store's positioning in Shibuya and its ideal form from the owner's perspective. We are acutely aware that we cannot survive solely in the world of data.

However, in fiscal year 2023, we plan to refocus on digital marketing and launch new initiatives. We want to delve deeper into people's behaviors, motivations, and interest in Smart Drinking®—not just for SUMADORI-BAR SHIBUYA, but also connecting it to supermarkets, restaurants, and e-commerce. The first year was consumed by foundational tasks, but in the second year, we finally feel ready to make significant proposals.

Q. Earlier, Mr. Kajiura mentioned, "We've been doing things completely opposite to what we've done before, but I feel it will connect somewhere down the line." What insights or lessons have emerged from challenging these opposite approaches?

Kajiura: If someone like me, who loves beer, tries to create non-alcoholic beer, the goal becomes making a product that tastes like delicious beer. Essentially, we end up using alcoholic beer as the benchmark.

But many people who don't drink or can't drink don't actually like the taste of beer in the first place. That's why it's crucial to develop products as an extension of juice. Doing so creates products that differ from the non-alcoholic items we'd previously imagined—in flavor, taste, and packaging. Yet, even though drinkers might not realize it, these are products that people who enjoy alcohol would also want. We discovered that when we create products for those who don't drink or can't drink alcohol, surprisingly, drinkers also choose those products. I believe this is how things connect.

Q. That's a wonderful discovery. There was a period when the non-alcoholic beverage market saw significant growth. Companies rushed to launch products, and each sold reasonably well. While that strategy could certainly have expanded the market, launching the new company Smart Drinking Co., Ltd. and changing the marketing approach created an even greater shift. Was this something you intentionally aimed for?

Kajiura: No, it wasn't intentional. But that's how business works, isn't it? You don't know until you try. Right now, the egg is finally about to hatch, so I want to nurture it carefully.

Q. Finally, could you share your outlook for the future? What is your vision for the kind of society you want to realize?

Kajiura: It might sound contradictory, but Smart Drinking Co., Ltd.'s true goal is to eventually close this company. Smart Drinking Co., Ltd. was originally founded so that drinkers and non-drinkers could communicate without division. Non-drinkers attending drinking parties could enjoy a variety of drinks beyond just oolong tea. Drinkers can also enjoy appropriate amounts based on their mood or physical condition that day. By providing many products and spaces for this purpose, and as both groups gradually find common ground, this company should no longer be necessary. That's the long-term goal.

Our short-term goal is to expand beyond our current bar, "SUMADORI-BAR SHIBUYA." While we currently use the bar as a base for sharing information, we want to break out of that space and challenge ourselves in various new ways.

Smart Drinking Co., Ltd.'s initiative to create connections between drinkers and non-drinkers/those who cannot drink seems to be a significant stimulus for both Asahi Beer and Dentsu Digital Inc. Particularly insightful is the observation that measures targeting non-drinkers/those who cannot drink ended up resonating strongly with drinkers as well. Products and services that can approach new target demographics could also become attractive offerings for existing customers. As we enter the second year of intensifying our digital marketing efforts, new insights are likely to emerge.