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Black Consumers and Alcoholic Beverages - US - February 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Black consumers’ alcoholic beverage expenditures total $13.1 billion
Figure 1: Expenditures by Black households for on-premise and off-premise alcoholic beverages, at current prices, 2012-17
Black alcoholic beverage consumers are segmented into three distinct need states
Figure 2: Black consumer alcoholic drink segments, October 2017
Beer and wine top Black consumers’ alcohol consumption
Figure 3: Alcoholic beverage consumption, October 2017
Product price matters, but drink value is important to the brand advocates
Figure 4: Opinion about alcoholic beverages, by segment group, October 2017
The opportunities
Align beverage preferences to drinking occasions and purpose to heighten relevancy
Figure 5: Perceptions of alcoholic drinks, by drink type, October 2017
Close the sale at the point of purchase
Figure 6: Consumption by shopping locations, October 2017
Use consumers’ drinking attitudes to induce product trial and loyalty
Figure 7: Attitudes toward drinking, October 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Young Black population forecast to grow
Black alcohol expenditures 5.6% of the total category spend
Black consumers drink the same types of alcohol, but different brands than the general market
THE BLACK POPULATION BY THE NUMBERS
The 2018 Black population is estimated to be 43.7 million
Figure 8: Total US and Black population estimates, 2013-23
Black core drinking age population expected to rise
Figure 9: Share of Black population by age, 2013-23
More Black people attend college compared to those with a high school diploma or less
Figure 10: Educational attainment across race/Hispanic origin, 2016
Nearly six in 10 Black households are headed by a single adult
Figure 11: Black households, by detailed type, 2017
Black unemployment levels fall below prerecession levels
Figure 12: Consumer confidence and unemployment levels, Black and total, 2000-17*
MARKET SIZE 
Economic rebound spurs increase in alcohol consumption
Figure 13: Expenditures by Black households for on-premise and off-premise alcoholic beverages, at current prices, 2012-17
Figure 14: Expenditures by Black households for on-premise and off-premise alcoholic beverages, at current prices, 2012-17
MARKET BREAKDOWN
Beer
Black beer drinkers prefer imported and regular varietals
Figure 15: Beer consumption by type, Black indexed to all, April 2016-May 2017
Corona and Heineken top Black beer drinkers’ imported list
Figure 16: Imported beer consumption by leading brands, Black indexed to all, April 2016-May 2017
Budweiser is the king of beers among Black beer drinkers
Figure 17: Regular beer consumption by leading brands, Black indexed to all, April 2016-May 2017
Wine
Black consumers’ preference for sweet flavors extends to wine
Figure 18: Domestic wine consumption by type, Black indexed to all, April 2016-May 2017
Black wine drinkers more likely to buy mass, popular-priced wine
Figure 19: Domestic wine consumption by leading brands, Black indexed to all, April 2016-May 2017
Ready-to-drink alcoholic beverages
Wine coolers, sweet and fruity flavors drive consumption
Figure 20: Cooler consumption by type, Black indexed to all, April 2016-May 2017
Seagram’s brand equity and marketing efforts among Black consumers may drive consumption
Figure 21: Cooler consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 22: Seagram’s Escape television commercial featuring Kelly Rowland, April 2016
Smirnoff Ice leads the flavored malt beverage category among Black consumers
Figure 23: Flavored alcohol beverage consumption by leading brands, Black indexed to all, April 2016-May 2017
Spirits
Premium Vodka brands with ties to hip hop drive Black consumption
Figure 24: Vodka consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 25: Ciroc digital advertising, 2017
Black gin drinkers are split between traditional Seagram’s and trendier Tanqueray
Figure 26: Gin consumption by leading brands, Black indexed to all, April 2016-May 2017
Hip hop brand ambassadors drive tequila consumption
Figure 27: Tequila consumption by leading brands, Black indexed to all, April 2016-May 2017
Independent and Bacardi top Black drinkers’ rum preferences
Figure 28: Rum consumption by leading brands, Black indexed to all, April 2016-May 2017
Jack Daniel’s is the whiskey category leader, but Seagram’s brand is entrenched among Black drinkers
Figure 29: Whiskey consumption by leading brands, Black indexed to all, April 2016-May 2017
Hennessy’s marketing focus on Black consumers helps it dominate in cognac consumption
Figure 30: Cognac consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 31: Hennessy digital advertising, 2017
MARKET PERSPECTIVE
Hennessy cognac is woven into Black culture and history
Figure 32: Movie trailer for An Unexpected History: The Story of Hennessy and African Americans, 2015
Black consumers most likely to drink malt liquor, but consumption is falling
Figure 33: Malt liquor consumption in the past 30 days, Black and all, trended 2012-17
MARKET FACTORS 
Expected Hennessy shortage due to increased demand and supply shock
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Discount stores’ low-price offerings deliver premium quality
Rising craft beer sales in the general market are nonexistent among Black consumers
Online alcohol and sales look to shake up the retail market
WHAT’S WORKING?
Targeted communications seed trial and loyalty among Black consumers
Discount store liquor brands offer premium quality at low prices
WHAT’S STRUGGLING?
Craft beer and hard cider do not resonate with Black drinkers
Figure 34: Hard cider and craft beer consumption, Black indexed to all, April 2016-May 2017
WHAT’S NEXT?
Black-owned companies launch craft spirits
Alcohol delivery next big grocery trend
THE CONSUMER – WHAT YOU NEED TO KNOW 
Wine and beer are the most consumed types of alcohol among Black consumers
Seven in 10 Black consumers drink alcohol to relax
Black consumers’ perceptions of alcohol match their consumption patterns
Over 70% of Black consumers buy alcohol at liquor stores
Buying drinks while out is expensive, but worth the price
BLACK CONSUMER ALCOHOLIC DRINK SEGMENTS
Alcohol beverage consumption segmented into three distinct groups
Figure 35: Black consumer alcoholic drink segments, October 2017
Occasional Drinkers will drink to be social during special occasions
Figure 36: Profile of Occasional Drinkers, October 2017
Reserved Drinkers drink to relax – Preferably in solitude
Figure 37: Profile of Reserved Drinkers, October 2017
Social Drinkers enjoy being the life of the party
Figure 38: Profile of Social Drinkers, October 2017
ALCOHOLIC BEVERAGE CONSUMPTION 
Wine and beer top Black drinkers’ alcohol preferences
Figure 39: Alcoholic beverage consumption, October 2017
Social Drinkers drink the greatest variety of alcoholic beverages
Figure 40: Alcoholic beverage consumption, by segment groups, October 2017
Working age Black men drive beer consumption
Figure 41: Demographic profile of beer drinkers, October 2017
Millennial women turn to wine as they come of drinking age
Figure 42: Demographic profile of wine drinkers, October 2017
Cocktail favorite vodka is the number one spirit among Black drinkers
Figure 43: Demographic profile of white spirit drinkers, October 2017
Trendy tequila brands spur consumption among Millennial women and men
Figure 44: Demographic profile of sugar-based spirit drinkers, October 2017
Dark spirits remain the drink of choice among men
Figure 45: Demographic profile of dark spirit drinkers, October 2017
Spirit drinkers consume across type, especially beer
Figure 46: Consumption by consumption, October 2017
MOTIVATIONS FOR DRINKING
Black consumers drink alcohol to relax and release
Figure 47: Motivations for drinking, October 2017
Social Drinkers drink to have fun, but also to escape from their everyday lives
Figure 48: Motivations for drinking, by segments , October 2017
Black women drink alcoholic beverages that mimic their non-alcoholic preferences
Figure 49: Motivations for drinking, by gender, October 2017
Alcohol makes social gatherings fun for young Black drinkers
Figure 50: Motivations for drinking, by age, October 2017
PERCEPTIONS OF ALCOHOLIC DRINK TYPES
Black consumers’ drink choices influenced by motivations
Figure 51: Perception of alcoholic drink types, October 2017
Occasional Drinkers will “upgrade” to cocktails to blend in with friends
Figure 52: Perception of alcoholic drink types, by Occasional Drinkers, October 2017
Wine and beer are the habitual, affordable beverages for Reserved Drinkers
Figure 53: Perception of alcoholic drink types, by Reserved Drinkers, October 2017
Social Drinkers seek sensorial and enhanced experiences across alcohol beverage types
Figure 54: Perception of alcoholic drink types, by Social Drinkers, October 2017
ALCOHOL SHOPPING LOCATION PREFERENCES
Most Black drinkers shop at liquor stores for brand and product variety
Figure 55: Shopping locations, October 2017
Liquor stores and food service offer top-shelf and value-priced spirits
Figure 56: Consumption, by shopping locations, October 2017
Social Drinkers buy liquor everywhere, perhaps due to more drinking occasions
Figure 57: Shopping locations, by segment, October 2017
Black drinkers in upper-income households most likely to drink while out
Figure 58: Shopping locations, by household income, October 2017
Young Black drinkers are brand conscious, but also buy based on value
Figure 59: Shopping locations, by age, October 2017
OPINIONS ABOUT ALCOHOLIC BEVERAGES
Almost half of Black consumers drink while out, even though it’s expensive
Figure 60: Opinions about alcoholic beverages, October 2017
Trendy brands and cocktails are an extension of the Social Drinkers’ identity
Figure 61: Opinions about alcoholic beverages, by segment, October 2017
On-premise drink prices are expensive, but not a deterrent to purchase among upper-income households
Figure 62: Opinions about alcoholic beverages, by household income, October 2017
Black women drink to enhance their own state of mind, not to impress others
Figure 63: Opinions about alcoholic beverages, by gender, October 2017
ATTITUDES TOWARD DRINKING
Alcohol can set the mood and atmosphere among Black drinkers
Figure 64: Attitudes toward drinking, October 2017
Social Drinkers are the most brand conscious
Figure 65: Attitudes toward drinking, by segment, October 2017
Reserved Drinkers wind down with alcohol, while Social Drinkers use alcohol to jump into action
Figure 66: Attitudes toward drinking, by segment, October 2017
Social Drinkers are brand conscious, but always on the hunt for the next new drink
Figure 67: Attitudes toward drinking, by segment, October 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 68: Total US sales and forecast of market, at inflation-adjusted prices, 2012-22
APPENDIX – THE CONSUMER 
Figure 69: Beer consumption by type, Black indexed to all, April 2016-May 2017
Figure 70: Imported beer consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 71: Regular beer consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 72: Domestic wine consumption by type, Black indexed to all, April 2016-May 2017
Figure 73: Domestic wine consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 74: Cooler consumption by type, Black indexed to all, April 2016-May 2017
Figure 75: Cooler consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 76: Flavored alcohol beverage consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 77: Vodka consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 78: Gin consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 79: Tequila consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 80: Rum consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 81: Whiskey consumption by leading brands, Black indexed to all, April 2016-May 2017
Figure 82: Cognac consumption by leading brands, Black indexed to all, April 2016-May 2017

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