Black Consumers and Alcoholic Beverages - Spotlight on Spirits: Incl Impact of COVID-19 - US - December 2020

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition 
COVID-19: market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Figure 1: Total US sales of alcoholic beverages* (in-home), total and Black, at current prices, 2015-20
Impact of COVID-19 on Black consumers and alcoholic beverages
Figure 2: Short-, medium- and long-term impact of COVID-19 on Black consumers and alcoholic beverages at home, December 2020
Opportunities and challenges
Wine brands should increase marketing communication efforts to Black consumers
Brands and retailers should partner with Black-owned distilleries and spirit clubs
Lean on Black consumer insights to develop targeted marketing strategies 
Figure 3: Black consumer alcoholic drink segments, March 2020
Category and consumer insights and implications
Wine tops Black drinkers’ list, but at a lower share in comparison to all
Figure 4: Alcoholic beverage consumption by segment and type, March 2020
Vodka and cognac top Black consumers’ white and dark spirit consumption
Figure 5: Black consumers’ white and dark spirits purchases, March 2020
Refusal to drink spirits rooted in taste and lack of relevance
Figure 6: Black consumers’ reasons for not drinking white or dark spirits, March 2020
Black drinkers enjoy making cocktails at home using popular and higher-end spirits
Figure 7: Black consumers’ attitudes and behaviors around making cocktails at home, March 2020
THE BLACK CONSUMER MARKET – KEY TAKEAWAYS 
Younger Black population will have greater influence on total market drinking trends
At-home sales temporarily rise
Slower-than-average economic and financial recovery on the horizon
Underdeveloped wine category ripe for targeted opportunities
THE BLACK POPULATION BY THE NUMBERS
The Black population share holds steady at 13% of the total US
Figure 8: US population by race, 2015-25
Black people younger than age 35 drive overall population growth, shape trends
Figure 9: US adult population by age, total and Black, 2020
Over half of Black households are headed by a single person
Figure 10: Households by detailed type, total and Black, 2019
BLACK CONSUMERS AND ALCOHOLIC BEVERAGES AT HOME – MARKET SIZE ESTIMATE
At-home alcohol sales expected to rise temporarily
Figure 11: Total US sales of alcoholic beverages* (in home), total and Black, at current prices, 2015-20
Impact of COVID-19 on Black consumers and alcoholic beverages
Figure 12: Short-, medium- and long-term impact of COVID-19 on Black consumers and alcoholic beverages (in home)
Lockdown
Reemergence
Recovery
Lessons from the last recession to consider today
MARKET FACTORS 
COVID-19 related unemployment hit Black workers especially hard
Figure 13: Labor force participation and unemployment, total and Black, November 2015-November 2020
Black household income at a 10-year high, but pandemic-induced unemployment may erase gains
Figure 14: Household income distribution, by total and Black, 2019
Black consumers show caution in dining al fresco
Figure 15: Comfort level – dining at a restaurant outside, Black respondents, April-November 2020
MARKET OPPORTUNITIES 
Alcohol home delivery at nascent stage, but of interest for Black shoppers
Black-owned distilleries gaining traction and prominence among enthusiasts
Figure 16: Uncle Nearest on Instagram, 2020
Wine category ripe for marketing to various segments of Black drinkers
Sponsor spirit clubs to drive trial and loyalty
Figure 17: Holiday greetings from Black Bourbon Society, December 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Black consumption of spirit brands linked to history of targeted marketing
Preferred wine varietals linked to non-alcoholic beverage favorites
Some brands break from the typical image messaging, but some Black consumers still feel left out
SEGMENT PERFORMANCE AND TOP BRANDS 
Wine
Black consumers’ preference for sweet wine mimics their preference for sweet non-alcoholic beverages
Figure 18: Domestic dinner wine consumption by type, total vs Black, April 2019-June 2020
Value-priced table wines with a wide flavor selection top Black consumers’ consumption
Figure 19: Domestic wine consumption by leading brands, total and Black, April 2019-June 2020
Brand familiarity and product access drive champagne consumption
Figure 20: Champagne and sparkling wine consumption by leading brands, total and Black, April 2019-June 2020
Beer
Full-bodied, higher alcohol content brew preferred over trendy options
Figure 21: Beer consumption by type, total and Black, April 2019-June 2020
Imported beers that reflect drinkers’ taste and image preferences drive brand consumption
Figure 22: Imported beer consumption by leading brands, total and Black, April 2019-June 2020
Brand name and higher alcohol content drive regular beer consumption
Figure 23: Regular domestic beer consumption by leading brands, total and Black, April 2019-June 2020
White Spirits
Easy to mix vodka is the preferred white spirit
Figure 24: White spirit consumption by type, total and Black, April 2019-June 2020
Vodka brand preference due to imagery and cocktail preferences
Figure 25: Vodka consumption by leading brands, total and Black, April 2019-June 2020
Tequila brands that engage their consumer base top consumption
Figure 26: Tequila consumption by leading brands, total and Black, April 2019- June 2020
Rum of all kinds makes a host of cocktails better
Figure 27: Rum consumption by kind, total and Black, April 2019-June 2020
Bacardi rum remains the gold standard among Black consumers
Figure 28: Rum consumption by leading brands, total and Black, April 2019-June 2020
Seagram’s long-standing status among Black consumers remains strong
Figure 29: Gin consumption by leading brands, total and Black, April 2019-June 2020
Dark Spirits
Brand supersedes spirit type among Black consumers 
Figure 30: Dark spirit consumption by type, total and Black, April 2019-June 2020
Hennessey is number one dark spirit brand among Black consumers
Figure 31: Cognac consumption by leading brands, total and Black, April 2019-June 2020
Bourbon brand preference due to history and consumer engagement
Figure 32: Bourbon whiskey consumption by leading brands, total and Black, April 2019-June 2020
Crown Royal is the king of Canadian Whiskey brands
Figure 33: Canadian whiskey consumption by leading brands, total and Black, April 2019-June 2020
Brandy serves as a popular beverage straight or in cocktail 
Figure 34: Brandy consumption by leading brands, total and Black, April 2019-June 2020
Ready-to-drink
Recognizable brand names drive flavored alcoholic beverage consumption
Figure 35: Flavored alcoholic beverage consumption of leading brands, total and Black, April 2019-June 2020
Bacardi bests lesser-known pre-made cocktail brands
Figure 36: Prepared cocktail mixes w/liquor consumption of leading brands, total and Black, April 2019-June 2020
COMPETITIVE STRATEGIES
Influencers strengthen brand image
Figure 37: The Making of 1800 Seconds, Vol. II video, January 2020
Figure 38: Extra Gravy and Courvoisier, December 2020
Figure 39: E&J Brandy video featuring Anthony “Spice” Adams, September 2020
Figure 40: Highsnobiety and Jack Daniels, April 2020
Crown Royal ties into consumer passions to address COVID-19 realities
Figure 41: Ari Lennox’s and Anthony Ramos’ “If You Want Me to Stay” for Crown Royal, 2020
THE CONSUMER – KEY TAKEAWAYS 
Black alcohol drinkers segmented by expected experience
Wine and beer are the go-to drinks for Black consumers, while spirits are their second-choice beverages
White spirits are best for mixed cocktails, but non-drinkers prefer wine or RTD beverages
Popular brands drive dark spirits purchases, but non-drinkers do not like the taste
Popular and higher-end spirits are the foundation for good cocktails
Flavor and occasion drive alcoholic drink type choices
BLACK CONSUMER ALCOHOLIC DRINK SEGMENTS 
A desire for certain experiences and brand relevance drive Black consumer drink choices
Figure 42: Mintel Global Trend Drivers and Pillars – Experiences and Identity
Experiences and Identity drive alcohol consumption
Figure 43: Black consumer alcoholic drink segments, March 2020
Pleasure Drinkers primarily choose beverages based on their mood
Figure 44: Profile of Pleasure Drinkers, March 2020
Liquor is an expression of style for Cultured Drinkers
Figure 45: Profile of Cultured Drinkers, March 2020
Alcohol heightens the experience of occasions for Social Drinkers
Figure 46: Profile of Social Drinkers, March 2020
Alcohol is a regular indulgence for Relaxed Drinkers
Figure 47: Profile of Relaxed Drinkers, March 2020
ALCOHOLIC BEVERAGE CONSUMPTION
Black consumers report lower alcohol consumption in comparison to all consumers
Figure 48: Black consumers’ alcoholic beverage consumption by segment and type, indexed to all, March 2020
Figure 49: alcoholic beverage consumption by segment, total and Black, March 2020
Wine is the preferred beverage for maturing adults
Figure 50: Black consumers’ wine consumption, by demographics, March 2020
Beer is the primary alcoholic beverage for Black men 
Figure 51: Black consumers’ beer consumption, by demographics, March 2020
Spirits are primarily a men’s drink, but young women show an interest
Figure 52: Black consumers’ spirit consumption, by demographics, March 2020
Ready-to-drink alcoholic beverages are a welcome substitute for beer and cocktails
Figure 53: Black consumers’ RTD beverage consumption, by demographics, March 2020
WHITE SPIRITS 
Unflavored, easy-to-mix vodka is the preferred white spirit
Figure 54: Black consumers’ white spirits purchases by type, indexed to all, March 2020
Young women choose white spirits for specific cocktails
Figure 55: Black consumers’ white spirit purchases, by gender and age, March 2020
REASONS FOR NOT DRINKING WHITE SPIRITS
White spirits’ image and product no longer representative for some drinkers 
Figure 56: Black consumers’ reasons for not drinking white spirits, March 2020
Black drinkers prefer wine and RTD beverages over white spirits
Figure 57: Black consumers’ alcoholic beverage consumption, by reasons for not drinking white spirits, March 2020
Older men prefer drinks that reflect their identity
Figure 58: Black men’s reasons for not drinking white spirits, by age, March 2020
Women who avoid white spirits stick to their preferred alcoholic favorites
Figure 59: Black women’s reasons for not drinking white spirits, by age, March 2020
DARK SPIRITS 
Dark spirits purchases driven by brand preference
Figure 60: Black consumers’ dark spirits purchases by type, indexed to all, March 2020
Cognac is the entry beverage to dark spirits
Figure 61: Black consumers’ dark spirits purchases by type, by age, March 2020
Women will drink popular dark spirit types due to brand familiarity
Figure 62: Black consumers’ dark spirits purchases by type, by gender, March 2020
REASONS FOR NOT DRINKING DARK SPIRITS
Dark spirits are avoided due to taste more than image 
Figure 63: Black consumers’ reasons for not drinking dark spirits, March 2020
Dark spirits are not an acquired taste for non-drinkers
Figure 64: Black consumers’ alcoholic beverage consumption, by reasons for not drinking dark spirits, March 2020
Dark spirits are not the drink for young men who choose taste over image
Figure 65: Black men’s reasons for not drinking dark spirits, by age, March 2020
Young women who prefer sweet beverages avoid dark spirits
Figure 66: Black women’s reasons for not drinking dark spirits, by age, March 2020
SPIRIT BRAND TYPE PURCHASES
Black drinkers’ preference for popular and higher-end spirits on par with all
Figure 67: Black consumers’ spirit brand types purchased, indexed to all, March 2020
White spirit brand type preferences tied to cocktail preferences
Figure 68: Black consumers’ white spirits purchases, by spirit brand types purchased, March 2020
Seeded brand imagery not reliant on perceived quality for dark spirits
Figure 69: Black consumers’ dark spirits purchases, by spirit brand types purchased, March 2020
MAKING COCKTAILS AT HOME
Mature drinkers who entertain at home make their own cocktails
Figure 70: Black consumers who make cocktails at home, by demographics, March 2020
Creating cocktails at home is integral to the experience
Figure 71: Black consumers’ attitudes and behaviors around making cocktails at home, March 2020
Higher-end spirits show cocktail sophistication
Figure 72: Black consumers’ attitudes and behaviors around making cocktails at home, by spirit brand types purchased, March 2020
Younger drinkers who use spirits for cocktails focus on brand image and product quality
Figure 73: Black consumers’ attitudes and behaviors around making cocktails at home, by age, March 2020
Drinkers with more product options buy spirits to create specific cocktails 
Figure 74: Black consumers’ attitudes and behaviors around making cocktails at home, by household income, March 2020
ATTITUDES TOWARD SPIRITS
Spirits are style products for the giver and receiver
Figure 75: Black consumers’ attitudes toward spirits, March 2020
Spirits are a fun, image-building product, but not necessarily a passion
Figure 76: Black consumers’ attitudes toward spirits, by spirit brand types purchased, March 2020
Some young men believe spirits are a better-for-you choice over other alcoholic beverages
Figure 77: Black men’s attitudes toward spirits, by age, March 2020
Premium spirits are an easy but thoughtful gift to buy among affluent Black drinkers
Figure 78: Black consumers’ attitudes toward spirits, by household income, March 2020
ATTITUDES TOWARD ALCOHOLIC BEVERAGES
Black drinkers choose alcohol based on their expected experience
Figure 79: Black consumers’ attitudes toward alcoholic beverages – choice drivers, March 2020
Desired experience and expected quality drive brand attitudes
Figure 80: Black consumers’ attitudes toward alcoholic beverages – brand drivers, March 2020
Nearly half of Black drinkers consider long-term health impact of alcohol
Figure 81: Black consumers’ attitudes toward alcoholic beverages – health attitudes, March 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET
Figure 82: Total US sales of alcoholic beverages* (in-home), total and Black, at current prices, 2015-20
APPENDIX – THE CONSUMER 
Figure 83: Domestic dinner wine consumption by type, total vs Black, April 2019- June 2020
Figure 84: Domestic wine consumption by leading brands, total and Black, April 2019- June 2020
Figure 85: Champagne and sparkling wine consumption by leading brands, total and Black, April 2019-June 2020
Figure 86: Beer consumption by type, total and Black, April 2019-June 2020
Figure 87: Imported beer consumption by leading brands, total and Black, April 2019 – June 2020
Figure 88: Regular domestic beer consumption by leading brands, total and Black, April 2019- June 2020
Figure 89: White spirit consumption by type, total and Black, April 2019- June 2020
Figure 90: Vodka consumption by leading brands, total and Black, April 2019- June 2020
Figure 91: Tequila consumption by leading brands, total and Black, April 2019- June 2020
Figure 92: Rum consumption by kind, total and Black, April 2019-June 2020
Figure 93: Rum consumption by leading brands, total and Black, April 2019- June 2020
Figure 94: Gin consumption by leading brands, total and Black, April 2019-June 2020
Figure 95: Dark spirit consumption by type, total and Black, April 2019-June 2020
Figure 96: Cognac consumption by leading brands, total and Black, April 2019-June 2020
Figure 97: Bourbon whiskey consumption by leading brands, total and Black, April 2019-June 2020
Figure 98: Canadian whiskey consumption by leading brands, total and Black, April 2019- June 2020
Figure 99: Brandy consumption by leading brands, total and Black, April 2019-June 2020
Figure 100: Flavored alcoholic beverage consumption of leading brands, total and Black, April 2019-June 2020
Figure 101: Prepared cocktail mixes w/liquor consumption of leading brands, total and Black, April 2019-June 2020