Americans Spend More and Drink Better

May 15, 2015 – We’re not drinking more, just better and spending more money to do so.  According to Bloomberg News, Americans go out less frequently, order fewer drinks when they do, but the bar tab is getting bigger.  That’s because consumers have turned to craft beers, exotic cocktails and more expensive wine by the glass.

GuestMetrics, which monitors drink sales at 6,000 bars and restaurants, says their research shows wines by the glass costing more than $10 make up nearly half off all wine by the glass sold.  Craft beer sales account for about one third of beer sales with prices ranging anywhere from $6.00 to $12.00 a pop, well over the standard $4.25 for regular beers.  Even $20 cocktails are making gains although most cocktails sell for under $12. Besides higher-end wine, spirits and beer, high-end cider is benefiting, too.

The desire for better quality carries over to the retail side where higher quality spirits are doing well.  Neilsen, which tracks retail sales, reports consumers are paying five to seven percent more than they did two years ago.  This is not because retailers are hiking prices but rather consumers are trading up.

However, unusual flavors can still win out over image. As Bloomberg reported, according to research firm IRI, the fastest-growing spirit brand last year was Fireball Whisky, a reasonably priced concoction that tastes like cinnamon. Other hot brands in 2014 were Bud Light Lime’s Mang-O-Rita, Straw-Ber-Rita, and Raz-Ber-Rita.