On-Premise Beverage Alcohol Consumption Continues to Decline According to Cheers BARometer Report

By Beverage Information Group July 15, 2016
The on-premise beverage alcohol market was unable to capitalize on an improving economy, 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.

As the economy continues to rally, will consumers gravitate back into pre-recessionary on-premise drinking habits? Higher levels of income and discretionary spending typically translate into increased purchasing in restaurants and bars. The frequently changing trends and sales patterns in the industry make the Cheers On-Premise Handbook an essential guide to understanding the beverage alcohol landscape in bars and restaurants. The 2016 editions will include forecasted 2016 consumption figures, five-year industry trends and on-premise beverage alcohol retail dollar sales.