With so much current focus on the off-premise beverage alcohol market, the on-premise segment can be overlooked. The 2016 Cheers On-Premise Handbook is the primary tool used by industry experts to zero-in on the data detailing on-premise trends and sales figures.
The on-premise beverage alcohol market was unable to capitalize on an improving economy in 2015, as consumption decreased for the third consecutive year. According to the Beverage Information Group’s 2016 Cheers On-Premise Handbook, sales of spirits, wine, and beer were all lower in 2015. Declines across all categories are not a new development, but 2015 saw a drop of 2.6%, the largest to date.
While consumption totals for the three beverage alcohol categories were down from 2014, spirits and wine actually experienced retail dollar sales growth over the past year. This development mirrors the overall trend of consumers purchasing more premium beverages. Spirits, which experienced a volume decrease of 0.3%, saw a sizable dollar growth of 2.5%, while wine (down 0.1% in volume) only increased slightly, by 0.1% in sales.
The beer category was down 3.0% in volume and 1.6% in dollars in 2015, but was still ahead in total sales compared to wine and spirits. The increase in dollar sales of spirits and wine was not enough to offset the decline from beer, leading to the overall on-premise sales decline. With so much of the beer industry dominated by the craft explosion, on-premise consumption has slowed; drinking now occurs more at home, driven by off-premise sales.
In 2015, the restaurant industry accounted for 47% of overall food spending in the United States, amounting to $745.6B. The recession that plagued the United States economy earlier this decade is beginning to let up, which should lead to increased levels of discretionary spending for consumers. An economic development of this sort could result in growing sales figures for the on-premise segment of the beverage alcohol industry, however, the trend of declining sales continued for the third consecutive year.
As the economy continues to rally, will consumers gravitate back into pre-recession drinking habits? The CHOP Handbook states that 40.0% of consumers indicate they aren’t visiting restaurants as often as they’d like. Should this number increase, the restaurant industry (which comprises 4.0% of the U.S. GDP) will see a boost, ultimately resulting in greater on-premise beverage consumption.
The constantly shifting trends and sales data in the industry makes the Cheers On-Premise Handbook a useful guide to help you increase profitability and remain knowledgeable on the current restaurant and on-premise landscape. The 2016 editions will include forecasts of 2016 consumption figures, five-year industry trends, and on-premise beverage alcohol retail dollar sales.
About the 2016 Cheers On-Premise Series
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