Table of Contents
Executive Summary
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- The issues
- Black consumers’ alcoholic beverage expenditures total $13.1 billion
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- 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
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- Figure 2: Black consumer alcoholic drink segments, October 2017
- Beer and wine top Black consumers’ alcohol consumption
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- Figure 3: Alcoholic beverage consumption, October 2017
- Product price matters, but drink value is important to the brand advocates
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- Figure 4: Opinion about alcoholic beverages, by segment group, October 2017
- The opportunities
- Align beverage preferences to drinking occasions and purpose to heighten relevancy
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- Figure 5: Perceptions of alcoholic drinks, by drink type, October 2017
- Close the sale at the point of purchase
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- Figure 6: Consumption by shopping locations, October 2017
- Use consumers’ drinking attitudes to induce product trial and loyalty
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- Figure 7: Attitudes toward drinking, October 2017
- What it means
The Market – What You Need to Know
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- 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
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- The 2018 Black population is estimated to be 43.7 million
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- Figure 8: Total US and Black population estimates, 2013-23
- Black core drinking age population expected to rise
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- 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
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- Figure 10: Educational attainment across race/Hispanic origin, 2016
- Nearly six in 10 Black households are headed by a single adult
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- Figure 11: Black households, by detailed type, 2017
- Black unemployment levels fall below prerecession levels
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- Figure 12: Consumer confidence and unemployment levels, Black and total, 2000-17*
Market Size
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- Economic rebound spurs increase in alcohol consumption
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- 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
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- Beer
- Black beer drinkers prefer imported and regular varietals
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- Figure 15: Beer consumption by type, Black indexed to all, April 2016-May 2017
- Corona and Heineken top Black beer drinkers’ imported list
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- 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
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- 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
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- 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
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- 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
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- 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
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- Figure 21: Cooler consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 22: Seagram’s Escape television commercial featuring Kelly Rowland, April 2016
- Smirnoff Ice leads the flavored malt beverage category among Black consumers
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- 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
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- Figure 24: Vodka consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 25: Ciroc digital advertising, 2017
- Black gin drinkers are split between traditional Seagram’s and trendier Tanqueray
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- Figure 26: Gin consumption by leading brands, Black indexed to all, April 2016-May 2017
- Hip hop brand ambassadors drive tequila consumption
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- Figure 27: Tequila consumption by leading brands, Black indexed to all, April 2016-May 2017
- Independent and Bacardi top Black drinkers’ rum preferences
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- 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
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- 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
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- Figure 30: Cognac consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 31: Hennessy digital advertising, 2017
Market Perspective
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- Hennessy cognac is woven into Black culture and history
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- 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
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- Figure 33: Malt liquor consumption in the past 30 days, Black and all, trended 2012-17
Market Factors
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- Expected Hennessy shortage due to increased demand and supply shock
Key Players – What You Need to Know
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- 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?
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- Targeted communications seed trial and loyalty among Black consumers
- Discount store liquor brands offer premium quality at low prices
What’s Struggling?
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- Craft beer and hard cider do not resonate with Black drinkers
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- Figure 34: Hard cider and craft beer consumption, Black indexed to all, April 2016-May 2017
What’s Next?
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- Black-owned companies launch craft spirits
- Alcohol delivery next big grocery trend
The Consumer – What You Need to Know
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- 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
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- Alcohol beverage consumption segmented into three distinct groups
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- Figure 35: Black consumer alcoholic drink segments, October 2017
- Occasional Drinkers will drink to be social during special occasions
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- Figure 36: Profile of Occasional Drinkers, October 2017
- Reserved Drinkers drink to relax – Preferably in solitude
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- Figure 37: Profile of Reserved Drinkers, October 2017
- Social Drinkers enjoy being the life of the party
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- Figure 38: Profile of Social Drinkers, October 2017
Alcoholic Beverage Consumption
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- Wine and beer top Black drinkers’ alcohol preferences
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- Figure 39: Alcoholic beverage consumption, October 2017
- Social Drinkers drink the greatest variety of alcoholic beverages
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- Figure 40: Alcoholic beverage consumption, by segment groups, October 2017
- Working age Black men drive beer consumption
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- Figure 41: Demographic profile of beer drinkers, October 2017
- Millennial women turn to wine as they come of drinking age
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- Figure 42: Demographic profile of wine drinkers, October 2017
- Cocktail favorite vodka is the number one spirit among Black drinkers
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- Figure 43: Demographic profile of white spirit drinkers, October 2017
- Trendy tequila brands spur consumption among Millennial women and men
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- Figure 44: Demographic profile of sugar-based spirit drinkers, October 2017
- Dark spirits remain the drink of choice among men
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- Figure 45: Demographic profile of dark spirit drinkers, October 2017
- Spirit drinkers consume across type, especially beer
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- Figure 46: Consumption by consumption, October 2017
Motivations for Drinking
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- Black consumers drink alcohol to relax and release
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- Figure 47: Motivations for drinking, October 2017
- Social Drinkers drink to have fun, but also to escape from their everyday lives
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- Figure 48: Motivations for drinking, by segments , October 2017
- Black women drink alcoholic beverages that mimic their non-alcoholic preferences
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- Figure 49: Motivations for drinking, by gender, October 2017
- Alcohol makes social gatherings fun for young Black drinkers
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- Figure 50: Motivations for drinking, by age, October 2017
Perceptions of Alcoholic Drink Types
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- Black consumers’ drink choices influenced by motivations
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- Figure 51: Perception of alcoholic drink types, October 2017
- Occasional Drinkers will “upgrade” to cocktails to blend in with friends
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- Figure 52: Perception of alcoholic drink types, by Occasional Drinkers, October 2017
- Wine and beer are the habitual, affordable beverages for Reserved Drinkers
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- Figure 53: Perception of alcoholic drink types, by Reserved Drinkers, October 2017
- Social Drinkers seek sensorial and enhanced experiences across alcohol beverage types
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- Figure 54: Perception of alcoholic drink types, by Social Drinkers, October 2017
Alcohol Shopping Location Preferences
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- Most Black drinkers shop at liquor stores for brand and product variety
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- Figure 55: Shopping locations, October 2017
- Liquor stores and food service offer top-shelf and value-priced spirits
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- Figure 56: Consumption, by shopping locations, October 2017
- Social Drinkers buy liquor everywhere, perhaps due to more drinking occasions
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- Figure 57: Shopping locations, by segment, October 2017
- Black drinkers in upper-income households most likely to drink while out
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- Figure 58: Shopping locations, by household income, October 2017
- Young Black drinkers are brand conscious, but also buy based on value
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- Figure 59: Shopping locations, by age, October 2017
Opinions about Alcoholic Beverages
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- Almost half of Black consumers drink while out, even though it’s expensive
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- Figure 60: Opinions about alcoholic beverages, October 2017
- Trendy brands and cocktails are an extension of the Social Drinkers’ identity
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- 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
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- 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
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- Figure 63: Opinions about alcoholic beverages, by gender, October 2017
Attitudes toward Drinking
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- Alcohol can set the mood and atmosphere among Black drinkers
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- Figure 64: Attitudes toward drinking, October 2017
- Social Drinkers are the most brand conscious
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- Figure 65: Attitudes toward drinking, by segment, October 2017
- Reserved Drinkers wind down with alcohol, while Social Drinkers use alcohol to jump into action
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- Figure 66: Attitudes toward drinking, by segment, October 2017
- Social Drinkers are brand conscious, but always on the hunt for the next new drink
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- Figure 67: Attitudes toward drinking, by segment, October 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 68: Total US sales and forecast of market, at inflation-adjusted prices, 2012-22
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Appendix – The Consumer
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- Figure 69: Beer consumption by type, Black indexed to all, April 2016-May 2017
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- Figure 70: Imported beer consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 71: Regular beer consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 72: Domestic wine consumption by type, Black indexed to all, April 2016-May 2017
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- Figure 73: Domestic wine consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 74: Cooler consumption by type, Black indexed to all, April 2016-May 2017
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- Figure 75: Cooler consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 76: Flavored alcohol beverage consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 77: Vodka consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 78: Gin consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 79: Tequila consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 80: Rum consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 81: Whiskey consumption by leading brands, Black indexed to all, April 2016-May 2017
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- Figure 82: Cognac consumption by leading brands, Black indexed to all, April 2016-May 2017
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