Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Market size and segmentation data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Still growing—wine still gaining share
- Segmentation of drinkers
- Channel trends
- Market background
- Decision-making drivers
- Occasion-based drivers
- Key demographics
- Premium and super-premium lead Innovation
Insights and Opportunities
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- Trend toward partying at home could change the way people drink
- Teach consumers how to pair alcohol with cuisines to create great parties
- Help consumers create healthy and inspiring drinking experiences
- Exclusivity, sustainability and ancillary value drive packaging innovation
- Drinking games for creatives?
Fast Forward Trends
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- Brand Tribe
- Customers are shaping the brands of the future
- The story of George Dickel Tennessee Whiskey Distillery
- Brand U.S.A.
- As America becomes more diverse, so does Brand USA
- Foreign investment fuels the growth of American brands at home and abroad
Market Size and Spending Patterns
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- Key points
- Slowdown in growth rate expected in 2008
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- Figure 1: U.S. retail sales of alcoholic beverages (packaged liquor, wine and beer), in current prices, 2003-13
- Figure 2: U.S. total U.S. retail sales of alcoholic beverages (packaged liquor, wine and beer), in inflation-adjusted prices, 2003-13
- Innovative taste profiles, premium products and cocktail culture drive growth of distilled spirits
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- Figure 3: Total U.S. retail sales of distilled spirits (liquor, brandy and liqueurs), at current prices, 2003-13
- Figure 4: Total U.S. retail sales of distilled spirits (liquor, brandy and liqueurs), at inflation adjusted prices, 2003-13
- Sales of wine slow, consumers turn attention to beer
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- Figure 5: Total U.S. retail sales of wine, in current prices, 2003-13
- Figure 6: Total U.S. retail sales of wine, at inflation adjusted prices, 2003-13
- Beer sales benefit from innovation, locality and alignment with “gourmet”
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- Figure 7: Total U.S. retail sales of beer and ale, in current prices, 2003-13
- Figure 8: Total U.S. retail sales of beer and ale, at inflation adjusted prices, 2003-13
- Household alcohol consumption: high incidence of beer purchase drives sales increases
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- Figure 9: Incidence of household alcohol purchases, by major category, 2007
Segmentation
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- Key points
- The affluent drive demand for premium and super-premium alcoholic beverages
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- Figure 10: Number of alcoholic beverages consumed per month, by household income, June 2008
- 21-44s over-index on alcohol consumption
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- Figure 11: Number of alcoholic beverages consumed, by age, June 2008
- Alcohol consumption fairly constant
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- Figure 12: Anticipated use of liquor; drinking more or less than last year, by age, June 2008
- Liquor beverages are used by 50% or more of drinking age adults who consume alcohol at home
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- Figure 13: Frequency of vodka use, by household income, June 2008
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- Figure 14: Frequency of rum use, by household income, June 2008
- Figure 15: Frequency of tequila use, by race/ethnicity, June 2008
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- Figure 16: Frequency of prepared cocktail use, by household income, June 2008
- Figure 17: Frequency of cordial (e.g., brandy and Cognac) use, by household income, June 2008
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- Figure 18: Frequency of gin use, by household income, June 2008
- Wine consumption remains steady
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- Figure 19: Anticipated use of wine; drinking more or less than last year, by age, June 2008
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- Figure 20: Frequency of wine use, by household income, June 2008
- Figure 21: Frequency of wine cooler use, by household income, June 2008
- Zinfandel and Merlot are most popular among wine users
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- Figure 22: Types of wine consumed, 2007
- About a third of 21-34s anticipate drinking more beer this year
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- Figure 23: Anticipated use of beer; drinking more or less than last year, by age, June 2008
- Figure 24: Frequency of beer use, by household income, June 2008
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- Figure 25: Types of beers consumed, 2007
Channel Analysis
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- Key points
- States regulate liquor sales
- Liquor stores and grocery stores are the most frequently used channels
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- Figure 26: Where people buy alcoholic beverages, by household income, June 2008
- Specialty stores and supermarkets capture the majority of liquor sales growth
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- Figure 27: Total retail sales of distilled spirits (liquor, brandy, liqueurs) in current prices, by channel, 2002-07
- Figure 28: Total retail sales of wine in current prices, by channel, 2002-07
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- Figure 29: Total retail sales of beer and ale in current prices, by channel, 2002-07
Market Drivers
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- Key points
- Demographic shifts drive demand for “superfruit” flavors and imports
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- Figure 30: Population, by race and Hispanic origin, 2002-12
- Recessionary pressures drive increased price-sensitivity
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- Figure 31: Change in gas prices, all types and regular, 2000-08
- Concern about obesity translates to calorie counting
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- Figure 32: Percentage of population who are overweight or obese—20-74 year olds, 1988-2004
- Health and wellness concerns are driving dietary changes
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- Figure 33: Trended attitudes about diet, 2001-07
Decision-making Drivers
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- Key points
- Brand experience, price and convenience are primary decision-making criteria
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- Figure 34: Factors that influence purchasing decisions, by household income, June 2008
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- Figure 35: Factors that influence purchasing decisions, by household income, June 2008
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- Figure 36: Factors that influence purchasing decisions, by household income, June 2008
- Why people are drinking more or less—in their own words
- Increases driven partly by appeal of food pairings
- Drinking more with friends at home
- Some motivated to drink more by belief that small amounts can promote good health
- Motivated to drink at home by cost savings and the comforts of home
- More free time drives increased use
- Stress reduction another commonly cited motivator
- Concerns about weight management and general health can drive down consumption
- Cost is another driver of decreased usage
- General concerns about drinking too much drive down consumption
Occasion-based Drivers
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- Key points
- Personal milestones, New Year’s Eve, summer holidays and Christmas are important drivers
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- Figure 37: Events that motivate the purchase of alcohol, by age, June 2008
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- Figure 38: Situational motivators of at-home drinking, by age, June 2008
Attitudes towards Drinking, Its Effects and Drink Marketing
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- Key points
- Willingness to experiment begins to decline by the mid-forties
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- Figure 39: Attitudes towards expermenting with new alcoholic drinks, by age, June 2008
- 25-34s are somewhat more concerned about side effects and many are interested in functional beverages
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- Figure 40: Health-related drinking attitudes, by age, June 2008
- Figure 41: Alcohol knowledge and interest in learning, by age, June 2008
- Hispanics drink more and, like blacks, tend to be somewhat more responsive to marketing efforts
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- Figure 42: Attitudes towards branding, packaging and pricing, by race/Hispanic origin, June 2008
Innovation and Innovators
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- Key points
- Premium flavored liquors meet demand for high-quality “superfruit” varieties
- Premium spirits meet demand for higher-quality, purer varieties of liquor
- Inexpensive table wines that pair well with healthy American and Italian cuisines are among the most practical recent innovations
- Organic varieties respond to growing demand for all things eco-friendly
- Some manufacturers are responding to the shift in demand for more ethnic products
Advertising and Promotion
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- Heineken ad suggests broad appeal
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- Figure 43: Heineken Christmas, 2007
- Bud Light ads align the brand with masculine camaraderie
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- Figure 44: Bud Light - “Dude, that’s some serious cheese,” 2007
- Figure 45: Bud Light - “Roommates,” 2007
- Smirnoff plays on the backyard party theme
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- Figure 46: Smirnoff Ice Light, 2007
Cluster Analysis—Drinking Enthusiasts, Event Drinker, Infrequent Drinker
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- Key points
- Drinking enthusiasts are the heaviest users but event drinkers are more heavily influenced by situational factors
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- Figure 47: Number of alcoholic drinks consumed at home or outside the home in an average month, by clusters, June 2008
- Figure 48: Motivating occasions and/or events to purchase alcoholic beverages, by clusters, June 2008
- Enthusiasts are significantly more likely to report drinking more this year than last year
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- Figure 49: Anticipated use of beer, wine, liquor; drinking more or less than last year, by clusters, June 2008
- Methodology
Custom Consumer Groups
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- Affluent males, those with children and affluent blacks tend to drink the most
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- Figure 50: Number of alcoholic beverages consumed, men with children, blacks and males with HH income over $75K, June 2008
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- Figure 51: Anticipated use of liquor; drinking more or less than last year, Hispanics and blacks aged 21-34, Hispanics with HH income over $75K, June 2008
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- Figure 52: Anticipated use of beer; drinking more or less than last year, Men and Hispanics aged 21-34, Hispanics with HH income over $75K, June 2008
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- Figure 53: Anticipated use of wine; drinking more or less than last year, Men and Hispanics aged 21-34, Hispanics with HH income over $75K, June 2008
Appendix A: Other Useful Consumer Tables
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- Figure 54: Frequency of malt beverage use, by household income, June 2008
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- Figure 55: Frequency of Scotch use, by household income, June 2008
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- Figure 56: Frequency of Irish Whiskey use, by household income, June 2008
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- Figure 57: Frequency of Canadian Bourbon use, by household income, June 2008
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- Figure 58: Frequency of aperitif use, by household income, June 2008
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- Figure 59: Drinking behavior, by age, June 2008
- Cluster analysis demographics and characteristics
- Cluster characteristics
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- Figure 60: Attitudes towarfds branding, packaging and health aspects, by clusters, June 2008
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- Figure 61: Source of alcoholic beverages, by clusters, June 2008
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- Figure 62: Beliefs and habits, by clusters, June 2008
- Cluster demographics
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- Figure 63: Alcohol at home clusters, by gender, June 2008
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- Figure 64: Alcohol at home clusters, by age, June 2008
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- Figure 65: Alcohol at home clusters, by household income, June 2008
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- Figure 66: Alcohol at home clusters, by race, June 2008
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- Figure 67: Alcohol at home clusters, by Hispanic origin, June 2008
- More custom consumer groups
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- Figure 68: Custom consumer groups who over-index on beer, June 2008
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- Figure 69: Custom consumer groups who over-index on wine, June 2008
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- Figure 70: Custom consumer groups who over-index on liquor, June 2008
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- Figure 71: Custom consumer groups who over-index on cordials, June 2008
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- Figure 72: Custom consumer groups who over-index on gin, June 2008
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- Figure 73: Custom consumer groups who over-index on prepared cocktails, June 2008
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- Figure 74: Custom consumer groups who over-index on rum, June 2008
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- Figure 75: Custom consumer groups who over-index on tequila, June 2008
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- Figure 76: Custom consumer groups who over-index on vodka, June 2008
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- Figure 77: Custom consumer groups who over-index on wine coolers, June 2008
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Appendix B: Trade Associations
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