Retailer Daily

Moderate Drinking Habits May Outlast Recession

While alcohol is traditionally thought of as a product which sells well even during recessions, U.S. consumers are even scaling back on beer, wine and spirits in the current tough economy. According to figures from a recent Nielsen Homescan survey, consumers are going out to drink less often and spending less on what they drink at home. Survey results indicate that 37% of consumers are going out to bars and clubs less often. A full 50% of consumers are actively seeking the best deals when buying alcoholic beverages. Popular strategies include comparing shelf prices, waiting for a sale and taking advantage of other special offers. When they do drink outside the home, consumers are moderating their behavior. The survey reveals 24% of wine drinkers are ordering less-expensive brands, while 33% of beer and spirits drinkers are ordering fewer drinks. The study also shows that once the recession does end, consumers will not necessarily return to their previous alcohol consumption habits. Only 24% of wine drinkers said they will spend more on alcohol when the economy recovers, while 21% of spirits drinkers plan to spend more and 18% of beer drinkers intend to spend more. Nielsen’s research contradicts more optimistic findings made last fall by market research firm Mintel. Mintel’s findings revealed that while U.S. consumers were staying home more often as a result of the recession, they were also drinking more. Mintel estimated that consumers would spend $77.8 billion on alcohol in 2008, a 32% increase from approximately $51 billion in 2003. Results of Nielsen’s alcohol consumption report are based on an April 2009 Nielsen Homescan survey with responses from approximately 5,000 U.S. alcoholic beverage consumers of legal drinking age.