Results of our new alcoholic beverage consumer survey seems to suggest that an economic hangover may be in our future. More than 5,000 U.S. consumers of legal drinking age tell us that when the recession lifts, their alcoholic beverage spending will be fairly restrained. In fact, three-quarters of consumers tell us that either when out or at home, they are not planning on changing their spending habits when the economy improves. Of the remainder, any increases will fall into the “little” and not “a lot” category.
As alcoholic beverage suppliers, retailers and marketers . . .what does this mean for us? What can we learn?
Well, for starters, we need to know how consumers are changing their alcoholic beverage shopping strategies. They are actively comparing prices at the shelf, looking more closely at in-store sales, flyers and ads, and sometimes waiting for their favorite products to be on sale before they buy. With this in mind, it’s critical that suppliers ensure their products are priced right compared to the competition.
Watch Danny Brager Discuss The Economic Hangover
With a weak on-premise environment, today’s biggest opportunity is around the home. Consumers’ intended restraint with an improved economy appears more pronounced in the on-premise as well. The home is key now — and will remain so, at least in the short-term future.
Our research shows that younger consumers, age 21 – 34, will return to their pre-recession level of spending sooner than older consumers. Older consumers have been the hardest hit by this difficult economy and are reining in their spending as a result. Suppliers and retailers need to make sure their value message is strong, and ensure that their product assortment, as well as pricing, is right to meet the varying financial conditions of their target customers and consumers.
Read Nielsen’s complete media release