Alcohol Sales Plummet
What's up, beer drinkers of America? Bloomberg notes that "take-out sales of alcoholic beverages tumbled 9.3 percent in the fourth quarter, the steepest drop since the U.S. Commerce Department started compiling data half a century ago," and a drop four times greater than the overall fall in consumer spending. Most of that was due to the 14 percent drop in beer sales.
The website fivethirtyeight.com posted this chart last week, and although the scale sort of dramatizes the extent of the drop, it's still clear that in the past 40 years alcohol sales have never fallen more than 4%.
Fivethirtyeight suspects it's a type of conspicuous nonconsumption:
a manifestation of Calvinist guilt over both the present failures of the economy and its prior excesses. A deliberate effort to deny oneself pleasure.
We wouldn't know, because we're still buying beer like it's 2006.
"U.S. Consumers Driven Away From Drink Spending: Chart of Day " [Bloomberg]
"Beer No Longer Recession-Proof"
(Photo: a4gpa; chart: fivethirtyeight.com)
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Comments:
"Bloomberg notes that "take-out sales of alcoholic beverages tumbled 9.3 percent in the fourth quarter..."
I don't affect this stat at all; I drink my alcohol before I leave the store.
Hey, I'm doing my part...
Beer sales down? Perhaps people are trading up to something with a little more bang for the buck?
anybody want to make a correlation to the belgian invasion?
I don't know. I'm in Oklahoma so alcohol laws really suck. But my purchases haven't changed
@zacwax:
As a fellow Okie, I agree. Beer prices have also risen over time. I always buy the good stuff anyway, but these days, I brew at home. If you're in the OKC area, there's a good brewing store on thirty-something and Penn.
I wonder what different distribution channels that chart takes into account. Specifically if it includes warehouse stores such as Costco. As the recession has gone on I've found myself buying my beer and wine mostly from Costco to save some money, even if it narrows down my selection. I wonder if others are doing the same and that is making the chart look worse.
Maybe people can't justify an expense that is totally frivolous when they are concerned that they will be part of that next scary headline ?
Ya think ?
In my state, it might be that damn dirty new alcohol sales tax. We had bourbon distillers pourin' out whiskey on the capital steps in protest, and beer trucks circling the city.
Beer prices here are waaaaaaaay up. Might have something to do with it.
I've started brewing my own beer. It's cheap, easy, fun and makes 5 gallons at a time. Party at my house.
That's dreadful. I'm heading out the Lone Star here in San Francisco to do my part, right after I finish typing this.
I find this odd, because usually in times where money is tight liquor sales go up. Then again, when I was at the grocery store a few weeks ago Sam Adams 12 packs were ON SALE for $18.
$18!!!!! After discount!
@Snarkysnake: I've never understood why some people justify alcohol as a necessary expense. If you cut eating out in the name of saving money, why not stop buying alcohol too? I had friends who were going "woe is me, I have no money," and keep buying beer along with their bread.
I'm glad I live in a state with sane alcohol laws (MO). 18 dollars for a 12 pack is nuts. What state are you living in that taxes booze that badly? It is 6-8 bucks here. I gladly pay $18 for a 5th of mid-shelf liquor. Which can be sold anywhere here. We have few liquor stores because grocery stores and gas stations can sell anything (including wal-mart).
@pecan 3.14159265: If you go to any low-income or depressed area - ghettos, hick towns, Indian reservations, and the like - you will find an abundance of liquor stores and drunks. Liquor is a way to forget about your poverty. Going to restaurants isn't. That's why.
@youbastid: Low income areas aside...for people who look at alcohol as a social event, I just wonder why they think they're so smart if they keep buying the one thing that costs the most, and isn't necessary for nutrition.
People are either resorting to brewing their own or making bathtub moonshine.
@b.k.: When Mr. Taco used to have three tacos for $1.89, I used to crush nine of them at one sitting. And yes, while their taco sauce might not have been hot or super-flavorful, it was somehow perfect.
My own anecdotal experience contradicts this story. A relative who works at an independent local liquor store recently told me that sales are steady.
Her theory is that people tend not to eliminate petty luxuries even in tough times. People might skip going out to dinner but will pick up a couple bottles of wine instead. Also, a lot of drinkers are intensely brand-loyal and as a result don't trade down to save money.
I blame Bush...or Obama. My drinking drastically dropped after the election. I have to wonder if that explained some of the change in consumption.
It was just horrible timing in my case. I've got enough money for beer - sadly, I was recently diagnosed with celiac disease. No more beer for me & there's not much else in the way of alcohol that I actually like drinking. :(
I'm sorry, America. It's my fault. My ob is SOOOOO rigid that way. :P
(No, srsly, notable decline in grocery bills since I got pregnant. Hadn't realized quite how much we spent on alcohol!)
Damn, go into Trader Joe's Wine on 14th St--trust me, the people are buying booze. I've noticed a dramatic upsurge in crowds since the economy tanked.
I mostly quit drinking a month or two ago as part of a general health initiative. One or two a week is my limit now, whereas I believe I was singlehandedly supporting the state of Kentucky previously.
@pecan 3.14159265: Here is more than everything you need to know, and here is some more resources. There may be more but I don't run with that crowd so much anymore since I hit the limits of work I'm willing to do for homebrew a while ago.
Finding your local microbrew store, about $70, and some extra space will set you up with the basics.
@TheRealAbsurdist: Me too!
I think I'm going to finish seeking the dividends that my 6 pack investment in Dogfish head beer will reap!
@grumpygirl: Sorry :(. Does your Dr think you can have other joys like Mary Jane or magic mushrooms?
Less people are giving money to bums and winos, the majority drinking population of the US ;O
The BEA chart is actually quite fascinating. Want to know about the fluctuating sales of luggage for men? Sure you do. [www.bea.gov]
Looks to me like the drop is on a par with the "purchased meals" (restaurant and takeout, presumably) drop, so it's probably part of a larger cutback behavior.
The big dip in 1991-2 is when I (1. Turned 21 and didn't just down 10-12 beers at a fraternity party; 2. graduated from college.)
I think it's just increased beer prices combined with the economy if this is the case.
@grumpygirl: There are a number of gluten-free beers you may be able to have. Anheuser-Busch makes one called "Redbridge," and Lakefront Brewing makes one called "New Grist." Might be hard to find (or a special order), but it's beer you can have :)
@JiminyChristmas: I've got hard evidence to back this anecdote up; I work in a large wine and liquor store, and we're up about 20% year-over-year at our site in gross volume. Chain-wide, I think we're up something like 10-15%.
People don't drink out as much during recessions, they don't eat out, so they buy their wine and booze for home consumption. When two bottles of beer at a bar costs the same as a six-pack at home, drinking at home is a good way to tighten the metaphorical belt. Yes, some segments are down (wine over $50 is pretty slow right now, for example), but overall, we're pretty busy in the liquor business.
Well, at my grocery store (Giant), Heineken is $10 a 6-pack. I'd start with that as the problem.
Svedka Vodka seems to be a hot item right now. I've seen it sold out a few times already. In a few more months, skol vodka will probably be in the same situation. Desperate times call for desperate measures.
@Snarkysnake: people are buying cheaper stuff, add to it that every shop owner has been scared into having sales all the time.
@slater:
I always found that the best part of making your own beer is the satisfaction of getting drunk on your own creation.
I am doing my best to reverse this trend. Cheers!
@Corporate_guy: i say you can't go wrong with stolichnaya. $24.99/1.75ml.
although lately, i've been drinking a lot of don julio blanco (tequila). i dunno how the guy does it, but he's selling 1.75ml bottles for $50. everywhere else, that's the price for the 750ml.
can't pass up that deal!
My beer drinking has dropped some, not because I'm denying myself of pleasure, but because I drink more expensive beer and I'm tightening my budget some and alcohol is the easiest expense to cut. Combine that with it being winter, I haven't bought myself a case of beer in months, whereas I used to buy at least on a month.
However, Philadelphia Beer Week is fast approaching. So I'm planning on splurging then.
12 pack PBR or PBR light. $5.97 in VA.
You would think that the tendency would be for people to drink their money problems away (for $8, you can forget it ever happened.... until tomorrow).