Originally Published Jan 22, 2010 by M.A. “Mike” Morales on CocktailMatch
Have you found yourself cutting back on extras? Dining out less and entertaining more at home? Have you eliminated frills and gotten back to basics? Many people have. Let’s face it…
2009 was a tough year, and 2010 could prove to be a steep, uphill climb.
In a September 23, 2009 entry in Wine & Spirits Daily, Nielsen, the marketing and media information company, reported that 55% of consumers were eating dinner at home more often. A total of 38% of consumers were going to a bar or nightclub less frequently.
Wine & Spirits Daily also reported in September that Zagat Survey, a hotel/restaurant guide publisher, discovered that people in Los Angeles were dining out less, with 19% of those surveyed cutting back on alcoholic drinks with their meals to save money.
In the liquor business, this situation is known as “soft on-premise” sales. A Nielsen representative concluded that “consumers are desperately seeking value, resulting in the re-prioritization of discretionary versus necessity” and a switch “from frills and luxuries to basics and value.”
In fact, global Swiss bank UBS says Generation Y consumers now believe that it’s “’not cool’ for them to spend money on expensive vodkas and other brands anymore….” Many are sticking to “tried and true” brands to get them through this economic downturn.
Consequently, in 2009 there was a huge push by spirits companies for the “off-premise” sales, which is selling the merits of their products through retail stores to consumers who consistently entertain at home.