E-Malt.com News article: US: US consumers to spend less on beer over the next year, craft brews could be the lone bright spot - study

U.S. consumers are expected to spend more on beverages over the next year, though beer and non-alcoholic sports drinks may lag, according to a new study by global business advisory firm AlixPartners LLP.

The firm combined its own analysis of the financial performance of the beverage industry with a consumer poll of 1,000 people interviewed between Feb. 7 and 9. Their responses were weighted to reflect nationwide adult demographics.

The results showed that 87 percent of U.S. consumers plan to spend the same amount or more on alcoholic beverages in the next 12 months, compared with just 70 percent in last year's study. For non-alcoholic beverages, 84 percent of consumers said they planned to spend the same or more, versus 74 percent in 2010. The non-alcoholic category includes soft drinks, coffee, teas, sports drinks and bottled water.

Spending on alcoholic beverages is projected to rise at bars and restaurants in the next year, with 37 percent of consumers saying they would buy these items in a restaurant. Last year, the figure was 20 percent. Similarly, 37 percent of consumers said they'd make these purchases at bars, up from 21 percent in 2010. Despite these increases, the study did not bode well for beer sales.

"Our analysis found that one in three consumers would look to reduce their spending on beer by lowering consumption, looking for sales and promotions or trying less-expensive brands," said Darren Morrison, vice president in AlixPartners' consumer products practice. The firm said craft brews could be the lone bright spot in a declining beer market.

Demand for sports and energy drinks is expected to be flat, while ready-to-drink teas and soft drinks could decline, AlixPartners said. It also noted that the percentage of consumers citing grocery stores as the place to purchase soft drinks and other non-alcoholic beverages fell to 68 percent in 2011 from 78 percent last year.


06 May, 2011