This is the second article from the responses to the Drinks Association Industry Insights Survey conducted in partnership with Touchstone Executive Search.
This article focusses on the outlook moving forwards and shows CEOs are entering 2026 with a clear directive: concentrate investment where returns are measurable, sharpen execution and remove inefficiency. When asked where they plan to dial up focus in the year ahead, responses consistently pointed to “innovation”, “AI and technology”, “people capability” and “simplification” as strategic priorities.
These focus areas reflect the reality of a trading environment shaped by rising costs, ongoing excise increases, retailer margin pressures and cautious consumer spending, all of which weighed heavily on performance throughout 2025.
Investment in targeted innovation
Innovation remains central to strategy, but it is becoming more selective and occasion-led. CEOs referenced “innovation in RTD”, “RTD expansion – tequila focus” and “occasion-based NPD” as areas of increased focus in 2026. Moderation is also shaping pipelines, with leaders prioritising “innovation and moderation-focused new product development.”
Premiumisation continues to play a role, though with sharper targeting. As one CEO noted, “The need for brand owners to be even more razor sharp on which consumers we are targeting.” Another reinforced the commercial discipline behind this shift: “Segmented execution, faster innovation cycles, premiumisation.”
In a market where volume remains under pressure, precision in targeting and speed to insight will be critical to converting innovation into sustainable growth.
Investment in AI and technology to enable precision and productivity
CEOs cited: “understanding how AI will help support business improvement”, “AI and technology investment”, “data and digital”, and “AI normalisation” as key areas of focus. One described a push for “increased agility through implementation of AI”, while another referenced the “continued evolution of digital technology” as central to competitiveness.
These focus areas highlight the opportunity AI deployment offers to improve forecasting, revenue growth management, and consumer insights and targeting, so organisations can compete more effectively without materially increasing cost bases.
Investment in strengthening people and leadership capability
Despite the acceleration of technology, CEOs remain focused on people capability as a foundation for performance. Survey responses referenced: “building people/team/leadership capability”, “internal alignment” and “talent/succession planning” as priorities for 2026.
Approximately 80% of CEOs expect to maintain headcount over the next 12 months. As one respondent explained: “Growth volume/revenues, technology offsetting to hold headcount flat. Change to skills mix.”
Stripping out inefficiency and waste
CEOs are deliberately stripping out inefficiency. Responses included reducing “unproductive trade investment”, “complexity”, “waste” and “inventory holdings.” Others highlighted a focus on “simplification” and “improved productivity.”
There is a clear shift away from “over-complicated work processes” and excessive discounting, with portfolio breadth narrowing in favour of prioritised brands and stronger execution standards. As one CEO put it: the focus is on “working capital management, brand investment, digital capability”.
A more disciplined phase of growth
The external environment remains challenging. Cost-of-living pressures persist, retail dynamics are intense and consumer spending continues to evolve. Drinks’ growth in 2026 will hinge on recalibration – investing where capability strengthens competitive advantage, simplifying where complexity erodes margin and sharpening execution across the value chain.
As one response captured succinctly, the priority for 2026 is “simplification, improved productivity, AI normalisation and investment in activations.”
Paul Beattie, Director Touchstone Executive Search commented: “Given the challenging trading environment being faced by the Drinks industry, it is reassuring that a majority of the CEOs remain cautiously optimistic about 2026 and have a clear focus on driving growth through clearer portfolio priorities, targeted innovation and activation, improved AI and digital capabilities and a continued focus on building people and leadership capability.”
Touchstone Executive Search is a Gold Partner of the Drinks Association.