Two thirds of adults (67%) report consuming alcoholic beverages in 2010, a 25-year high, according to Gallup Poll. The most common indicators of whether a person drinks are church attendance and religious affiliation. Catholics, non-Christians, and those with no religious affiliation are more likely to drink, while those who frequently attend church and Protestants are more likely than average to abstain.
The popularity of beer has waned in the new millennium; 41% name it as their preferred alcoholic beverage in 2010, down from 47% in 1994. Meanwhile, 32% name wine as their preferred drink, up from 29% over the same period. Liquor is favored by 21%, up from 18%.
Beer remains the drink of choice for men (54%), while women prefer wine (48%). Nearly equal portions of men and women (22% and 21%, respectively) prefer liquor.
As they age, however, men and women’s tastes change. Women aged 18-49 are only slightly more likely to prefer wine (39%) to beer (35%), but women aged 50 and older significantly prefer wine (58%) to beer (18%). Men’s preference for beer also diminishes with age: 58% of those aged 18-49 prefer beer, compared to 47% of those aged 50 and older. Only one in seven younger men (14%) prefer wine, but 21% of those aged 50 and older cite wine as their favorite alcoholic beverage.
Alcohol And The Recession
Six in 10 adults (60%) are visiting fine dining establishments less often than they did prior to the recession, 58% are making fewer trips to casual restaurants, and 47% are hanging out at bars and night clubs less frequently, according to Nielsen. Those aged 55 and older expect to keep their “going out” occasions to a minimum when the economy recovers, but young adults say they will go out much more often when economic conditions improve.
On the bright side, the vast majority of consumers (75%) continue to buy the same brand of alcohol to drink at home. However, 25% of that group are buying less often. One in five (20%) tried less expensive products but were not satisfied with the quality or experience. Some 13% buy the same products, but wait until they go on sale.
Consumers were most likely to “trade-down” when purchasing wine, buying less expensive bottles (23%). Nearly one in five liquor shoppers (18%) did the same, as did 16% of beer shoppers. Most of those who have bought less expensive products — particularly wine shoppers — feel the selections they have discovered at lower price points are of good quality, while the rest are willing to sacrifice quality to save. Most plan to continue to purchase the lower priced products after the recession lifts, including 75% of wine shoppers, 70% of beer shoppers, and 66% of liquor shoppers.
U.S. wineries experienced evidence of trading down in 2009, according to the Wine Institute. Retail sales were off 4%, down to $28.7 billion; however, volume was up 2% to 322.8 million cases, revealing that shoppers were buying more wine at lower prices. Wineries that rely heavily on restaurant distribution reported that sales were off between 6% and 9%.
Red wine has steadily increased in popularity over the prior 15 years, stealing market share primarily from blush wines.
The beer industry is also experiencing a decline during the recession, with national shipments down 3.3% in the first half of 2010 on the heels of 1% declines in each of the prior two years, according to the Beer Institute. Much of the slip in sales is due to the fact that younger Americans, who are the heaviest beer drinkers, are experiencing high unemployment rates.
However, 6% of Americans remain heavy beer drinkers, defined as those who drink beer on at least six occasions in a two week period, according to The Media Audit. The cities with the densest populations of heavy beer drinkers are:
• Reno, NV (10.2%);
• Fort Myers-Naples, FL (9.7%);
• Akron, OH (9.4%);
• Ocala, FL (9.3%); and
• Eugene, OR (8.5%). [Alcohol, Consumer Spending & Attitudes]
Sources: “U.S. Drinking Rate Edges Up Slightly to 25-Year High,” Gallup Poll, Frank Newport, Analyst, 901 F St. NW, Washington, DC 20004; 202-715-3030; www.galluppoll.com. Price: Available online at no charge.
“Beverage Alcohol Consumer Survey,” Nielsen Company, Danny Brager, VP Beverage Alcohol, 700 Broadway, New York, NY 10003; 949-716-0224; danny.brager@nielsen.com; www.nielsen.com. Price: Call for information.
“Wine Consumption In The U.S.,” Wine Institute, 425 Market St., #1000, San Francisco, CA 94105; 415-512-0151; www.wineinstitute.org. Price: Available online at no charge.
“2010 Statistical Update,” Beer Institute, 122 C St. NW, #350, Washington, DC 20001; 202-737-2337; info@beerinstitute.org; www.beerinstitute.org. Price: Available online at no charge.
“Top Beer Consuming Markets Revealed” The Media Audit, Robert Jordan, President, 10333 Richmond Ave., #200, Houston, TX 77042; 800-324-9921; rjordan@themediaaudit.com; www.themediaaudit.com. Price: Call for information.
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