Abstract

Consumers are drinking less alcohol in bars and restaurants as they look for ways to cut back on spending amid recessionary pressures and adoption of healthier lifestyles. When they do drink, however, they dare drink better, perhaps as a way to somehow make up for having to pass on other enjoyments in life.

Our research reveals that there are significant opportunities for bars and restaurants to "lead patrons to the trough" by providing them with alternatives such as cocktails made from premium spirits with trendy flavoring and functionality enhancements, and craft brewed beer and wines that have shed the "stuffy" image.

To clarify these opportunities, this report includes extensive consumer analysis as well as sales data that reveal:

• Four types of drinkers and their drinking habits and preferences defined
• What is keeping customers from drinking and how to get them more engaged
• What consumers are drinking at bars and restaurants, and how much they are spending
• Who the primary demographics are and what appeals to them the most
• Insights on how to lure in the best drinkers and get them to try new products

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The drinkers
• Spending on alcohol away from home is declining
• Hope for the premium market
• Shifting preferences
• Key demographics
• Product trends
• The future
• Market Size and Spending Patterns
• Key points
• Total on-premise sales of alcoholic drinks at drinking and eating places
  • Figure 4: Total on-premise sales of alcoholic drinks at drinking and eating places, 2001-12
• Total on-premise sales of alcoholic drinks at drinking places
  • Figure 5: Total on-premise sales of alcoholic drinks at drinking places, 2001-12
• Total on-premise sales of alcoholic drinks at eating places
• Figure 6: Total on-premise sales of alcoholic drinks at eating places, 2001-12
  • Figure 7: Amount spent per week on alcoholic beverages at a bar or restaurant, by gender, April 2008
• Segmentation
• Key points
  • Figure 8: Self-assessment of drinking habits, April 2008
• Self-assessment of type of drinker
  • Figure 9: Self-assessment of drinking habits, by to pline and age, April 2008
  • Figure 10: Self-assessment of drinking habits, by to pline and household income, April 2008
• Top picks: Beer, wine and spirits, by types of drinker
• Types of alcohol consumed in bars
  • Figure 11: Types of alcohol consumed in bars, by type of drinker, April 2008
• Types of alcohol consumed in restaurants
  • Figure 12: Types of alcohol consumed in restaurants, by type of drinker, April 2008
• Distilled spirits
  • Figure 13: Distilled spirit picks, by type of drinker, April 2008
• Wine
  • Figure 14: Wine picks, by type of drinker, April 2008
• Beer
  • Figure 15: Beer picks, by type of drinker, April 2008
• How drink choices are made
  • Figure 16: How drink choices are made, by type of drinker, April 2008
• Amount spent on alcoholic beverages
  • Figure 17: Amount spent per week on alcoholic beverages at a bar or restaurant, by type of drinker, April 2008
• Increases/decreases in alcohol consumption
  • Figure 18: Increases/decreases in alcohol consumption, by type of drinker, April 2008
• Attitudes about drinking
  • Figure 19: Attitudes about drinking, by type of drinker, April 2008
• Decision Making Drivers
• Key points
• People drinking less
  • Figure 20: Increases/decreases in alcohol consumption, by age, April 2008
  • Figure 21: Increases/decreases in alcohol consumption, by household income, April 2008
• But drinking better
  • Figure 22: Total U.S. volume sales of craft beer, 2004-07
  • Figure 23: Frequency of drinking microbrewed beer, by age, 2005 and 2007
• Health concerns
  • Figure 24: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
  • Figure 25: Attitudes about drinking, by age, April 2008
• The impacts of recessionary pressures
• Restaurant and bar trips on the decline
  • Figure 26: Spending at restaurants compared to last year, January 2008
  • Figure 27: Ways consumers have cut down on restaurant spending, January 2008
• Rising cost of raw materials
• Smoking bans
• Stepped up DUI/DWI enforcement
• Who Drinks What and Where
• Key points
• Introduction
  • Figure 28: Trends in preferred drinks, among those aged 21-29, 1992-2005
  • Figure 29: Total on premise dollar sales and market share for beer, distilled spirits and wine, 2001-07
• Types of alcohol consumed in bars and restaurants
  • Figure 30: Types of alcohol consumed in bars and restaurants, by frequency, April 2008
• Top picks: Beer, wine and spirits
• Beer
  • Figure 31: Top beer choices, by gender, April 2008
• Spirits
  • Figure 32: Top spirit choices, by gender, April 2008
• Wine
  • Figure 33: Top wine choices, by gender, April 2008
• Alcohol consumed in bars
  • Figure 34: Total on premise dollar sales and market share for beer, distilled spirits and wine, 2001-07
• Alcohol consumed in restaurants
  • Figure 35: Total on premise dollar sales and market share for beer, distilled spirits and wine, 2001-07
• How drink choices are made
  • Figure 36: How drink choices are made, by gender, April 2008
• Attitudes about drinking
  • Figure 37: Attitudes about drinking, by gender, April 2008
• Key Demographics
• Key points
• Age
  • Figure 38: U.S. population of adults aged 21 and over, 2002-12
  • Figure 39: Percentage of each age group who had 5 or more drinks in a day at least once in the past year, January-September 2007
  • Figure 40: Self-assessment of drinking habits, by to pline and age, April 2008
  • Figure 41: Amount spent per week on alcoholic beverages at a bar or restaurant, by age, April 2008
  • Figure 42: Top beer choices, by age, April 2008
  • Figure 43: Top distilled spirit choices, by age, April 2008
  • Figure 44: Top wine choices, by age, April 2008
• Alcohol consumed in bars
  • Figure 45: Alcohol consumption in bars, by age, April 2008
• Alcohol consumed in restaurants
  • Figure 46: Alcohol consumption in restaurants, by age, April 2008
• Attitudes about drinking
  • Figure 47: Attitudes about drinking, by age, April 2008
• Race and ethnicity
  • Figure 48: Population by race and Hispanic origin, 2002-12
  • Figure 49: Incidence and frequency of drinking regular domestic beer, light beer, and imported beer among Hispanics, 2003 and 2007
  • Figure 50: Alcohol consumed in bars, by race/Hispanic origin, April 2008
  • Figure 51: Alcohol consumed in restaurants, by race/Hispanic origin, April 2008
  • Figure 52: Top distilled spirit choices, by race/Hispanic origin, April 2008
  • Figure 53: Top wine choices, by race/Hispanic origin, April 2008
  • Figure 54: Top beer choices, by age, April 2008
• Attitudes about drinking
  • Figure 55: Attitudes about drinking, by age, April 2008
• How drink choices are made
  • Figure 56: How drink choices are made, by gender, April 2008
• Innovation and Innovators
• Key points
• Innovations
• Beer
  • Figure 57: New beer product introduction, 2007-08
  • Figure 58: Beer introduction innovations, 2007-08
• Cider and malt beverages
  • Figure 59: Beer introduction innovations, 2007-08
• Spirits
  • Figure 60: Spirits introduction innovations, 2007-08
• Wine
  • Figure 61: Wine introduction innovations, 2007-08
• Innovators
• Houlihan' s
• Houlihan' s Menu
• Beer
• Cocktails
• Wine
• Red Red Wine
• White Vino
• Brixx Pizza
• Beers
• Wine
• Evans Street Station
• Beer
• Cocktails
• Coffee drinks
• Appendix: Other Useful Consumer Tables
  • Figure 81: Amount spent per week on alcoholic beverages at a bar or restaurant, by household income, April 2008
  • Figure 82: Top wine choices, by household income, April 2008
  • Figure 83: Beer consumption in bars, by gender, April 2008
  • Figure 84: Beer consumption in bars, by household income, April 2008
  • Figure 85: Wine consumption in bars, by gender, April 2008
  • Figure 86: Wine consumption in bars, by household income, April 2008
  • Figure 87: Liquor/Distilled spirits consumption in bars, by gender, April 2008
  • Figure 88: Liquor/Distilled spirits consumption in bars, by household income, April 2008
  • Figure 89: Beer consumption in restaurants, by gender, April 2008
  • Figure 90: Beer consumption in restaurants, by household income, April 2008
  • Figure 91: Beer consumption in restaurants, by region, April 2008
  • Figure 92: Wine consumption in restaurants, by gender, April 2008
  • Figure 93: Wine consumption in restaurants, by household income, April 2008
  • Figure 94: Wine consumption in restaurants, by region, April 2008
  • Figure 95: How drink choices are made, by age, April 2008
  • Figure 96: Attitudes about drinking, by household income, April 2008
• Hispanic/Not Hispanic and age
  • Figure 97: Types of alcohol consumed at bars and restaurants, by Hispanic/not Hispanic and age, April 2008
  • Figure 98: How drink choices are made, by Hispanic/not Hispanic and age, April 2008
  • Figure 99: Attitudes about drinking, by Hispanic/not Hispanic and age, April 2008
  • Figure 100: Increases/decreases in alcohol consumption, by male and age, April 2008
  • Figure 101: Amount spent per week on alcoholic beverages at a bar or restaurant, Hispanic/not Hispanic and age, April 2008
  • Figure 102: Distilled spirits consumed most often at bars and restaurants, by Hispanic/not Hispanic and age, April 2008
  • Figure 103: Wine consumed most often at bars and restaurants, by Hispanic/not Hispanic and age, April 2008
  • Figure 104: Beer consumed most often at bars and restaurants, by Hispanic/not Hispanic and age, April 2008
• Appendix: Trade Associations