60 BEVERAGE CONSUMPTION & SPENDING

60.1 Beverage Consumption According to Beverage Marketing Corporation (www.beveragemarketing.com), the average person consumes 192.0 gallons of beverages annually. Consumption by beverage category is as follows: Carbonated soft drinks: 50.4 gallons Bottled water: 27.6 gallons Beer: 21.8 gallons Coffee: 21.6 gallons Milk: 20.9 gallons Fruit beverages: 13.4 gallons Tea: 7.9 gallons Wine: 2.2 gallons Distilled spirits: 1.4 gallons Tap water and all other: 25.0 gallons

60.2 Beverage Spending Consumers in the U.S. spend more than $300 billion annually on beverage purchases. This includes alcoholic and nonalcoholic beverages, consumed both on-premise and at home. According to the Distilled Spirits Council (DISCUS, www.discus.org), alcoholic beverage supplier gross revenue in 2010 was $57.56 billion, distributed as follows (change from previous year in parenthesis): Beer: $28.64 billion (-0.6%) Spirits: $19.16 billion (2.2%) Wine: $ 9.76 billion (2.9%) According to The Beverage Information Group (www.beveragenet.net), annual on-premise alcoholic beverage sales are approximately $110 billion. The American Beverage Association (www.ameribev.org) estimates that Americans spend roughly $100 billion annually on refreshment and nonalcoholic beverages. This category includes carbonated soft drinks, bottled water, juice and juice drinks, ready-to-drink tea and coffee, sports drinks, and energy drinks. Consumers spend between $12 billion and $15 billion annually on hot coffee and specialty coffee beverages at coffeehouses and quick-service restaurants, according to Technomic (www.technomic.com) and Business Trends Analysts (www.bta-ler.com).
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60.3 Alcoholic Beverages Among the 209 million legal drinking-age consumers in the United States (70% of the total population), about 100 million are considered social drinkers. According to the National Institutes of Health (www.nih.gov), when light drinkers those who consume 12 or fewer drinks a year are combined with nondrinkers, they represent nearly 49% of the U.S. population. Other estimates put the percentage as low as 25%. The Gallup Organization (www.gallup.com) has conducted consumer polls related to alcohol and drinking since 1939. (Prohibition ended in 1933.) After fluctuating somewhat over the past several decades, the percentage of adults who drink alcoholic beverages has held relatively constant over the past several years. The following are results of various Gallup Polls:
Drink Total Abstainer

1939: 1949: 1959: 1969: 1979: 1989: 1999: 2000: 2001: 2002: 2003: 2004: 2005: 2006: 2007: 2008: 2009: 2010:

58% 58% 61% 64% 69% 62%-56%* 64% 64% 62% 66% 62% 62% 63% 64% 64% 62% 64% 67%

42% 42% 39% 36% 31% 38%-44%* 36% 36% 38% 34% 38% 38% 37% 36% 36% 38% 36% 33%

* Those using beverage alcohol declined from 62% in April 1989 to 56% in Septem ber 1989, due in large part to federal drug and alcohol awareness program s.

Among those who consume alcoholic beverages (2010), the following are the percentages consuming various amounts weekly (source: Gallup): Less than one drink: 39% 1-to-7 drinks: 51% 8-to-19 drinks: 9% 20 or more drinks: 4% Among those who drink alcoholic beverages (2010), the following are the beverages they most frequently consume (source: Gallup): Beer: 41% Wine: 32%
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Spirits: All types:

21% 4%

Harris Poll (www.harrisinteractive.com) reports consumption of alcoholic beverages as follows:

Daily At least once per W eek At least once a month Less than once a month Never

Gender Female: Male: Age 18-to-32: 33-to-44: 45-to-63: 64 and older: Region East: Midwest: South: West: All

3% 9%

16% 31%

20% 20%

32% 18%

29% 22%

8% 2% 6% 9%

26% 24% 23% 19%

24% 23% 16% 18%

20% 26% 28% 27%

23% 24% 27% 28%

12% 3% 6% 3% 6%

25% 23% 21% 25% 23%

17% 26% 17% 21% 20%

24% 27% 26% 24% 26%

22% 22% 29% 27% 25%

Those who drink alcoholic beverages at least several times a year drink the following types of beverages (source: Harris Poll):
All M en Wom en

Beer: Domestic wine: Vodka: Rum: Imported wine: Tequila: Champagne: Canadian/Irish/other whiskey: Bourbon: Gin: Cordials and liqueurs: Scotch: Brandy: Cognac: Other:

67% 49% 41% 32% 29% 24% 18% 16% 15% 14% 14% 13% 8% 8% 6%

81% 43% 39% 33% 31% 23% 17% 19% 21% 16% 14% 19% 11% 11% 5%

51% 56% 43% 30% 26% 25% 20% 14% 7% 11% 14% 5% 5% 5% 7%

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According to What America Drinks, the percentages of various demographics that consume alcoholic beverages and average daily consumption are as follows:
Consumers Avg. Consumption

Male, ages 19-to-49: Male, ages 50 and older: Female, ages 19-to-49: Female, ages 50 and older:

34.1% 31.5% 20.6% 16.0%

14.7 fl. oz. 9.1 fl. oz. 4.5 fl. oz. 2.3 fl. oz.

Note: Percentages indicate those who consum ed a beverage on the day of survey or day of recall.

Growth in alcohol consumption is being driven largely by younger consumers. The following are net* percentages of consumers, by demographic segment, who are drinking more of various alcoholic beverages in 2009 than in previous years (source: Wine Market Council):
W ine Beer Spirits

Millennial: Generation X: Baby Boomers: Seniors:

38% 18% 7% 0%

9% 3% -20% -18%

9% -10% -18% -29%

* Percentage drinking less subtracted from percentage drinking m ore

Rankings of per capita consumption of the three beverage alcohol categories are summarized as follows (Source: National Institute of Health. Note: #1 ranking indicates state has highest per capita consumption for each beverage):
Beer Wine Distilled Spirits

# 1 # 2 # 3 # 4 # 5 # 6 # 7 # 8 # 9 #10 #11 (tie) #11 (tie) #13 #14 #15 #16 #17 (tie) #17 (tie) #19 (tie) #19 (tie) #21

New Hampshire: District of Columbia: Nevada: Delaware: Wyoming: Wisconsin: Florida: Colorado: Montana: North Dakota: Massachusetts: Arizona: Vermont: Alaska: Rhode Island: Minnesota: South Dakota: New Mexico: Hawaii: Louisiana: Maine:

# 2 #14 # 1 #17 # 3 # 6 #22 #19 # 4 # 5 #41 #13 #22 #25 #39 #30 # 8 # 6 #24 #11 #28

# 2 # 1 # 4 # 5 #33 #25 #14 #16 #23 #42 # 5 #19 # 8 #19 # 8 #25 #44 #27 #15 #32 #18

# 1 # 2 # 3 # 4 # 6 # 5 # 9 # 8 #23 # 9 #11 #24 #32 #12 #12 # 6 #19 #36 #28 #19 #19

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#22 (tie) #22 (tie) #24 #25 #26 #27 #28 #29 (tie) #29 (tie) #31 #32 (tie) #32 (tie) #34 #35 #36 (tie) #36 (tie) #38 #39 (tie) #39 (tie) #41 #42 (tie) #42 (tie) #44 (tie) #44 (tie) #46 #47 #48 #49 #50 #51

South Carolina: Oregon: Illinois: Idaho: Missouri: New Jersey: Nebraska: Connecticut: California: Pennsylvania: Washington: Texas: Mississippi: Michigan: Georgia: Maryland: Iowa: Virginia: Ohio: North Carolina: Indiana: Tennessee: New York: Oklahoma: Alabama: Kansas: Arkansas: Kentucky: West Virginia: Utah:

#16 #32 #27 #37 #20 #48 #11 #49 #42 # 9 #45 # 9 #14 #35 #33 #47 #17 #37 #20 #30 #40 #26 #49 #42 #34 #36 #42 #46 #29 #51

#33 #12 #22 # 3 #31 #11 #40 # 7 #10 #33 #13 #33 #50 #29 #29 #24 #45 #21 #37 #27 #38 #40 #16 #49 #39 #42 #48 #45 #51 #45

#17 #26 #17 #41 #26 #12 #34 #15 #31 #47 #28 #47 #35 #25 #30 #15 #42 #42 #49 #44 #32 #44 #36 #19 #44 #38 #38 #38 #51 #50

Note: Overall ranking based on consum ption volum es adjusted for average relative alcohol content of beer, wine, and distilled spirits.

There are two main drivers in the overall beverage alcohol market, according to Beverage Marketing Corporation: the economy and the weather. When gross domestic product goes up, people drink more beer, distilled spirits, and wine. When weather is bad, people drink more wine and spirits, but less beer. One trend in the alcoholic beverage sector is American-made beverages entering the marketplace, with many considered among the finest in the world. This has not always been the case. Just a quarter century ago, for example, imported wine (generally of French vintage) was the only thought to be of great quality. Now, American wines regularly win international awards and appear on tables in fine restaurants. And American beer and bourbon are closing their respective gaps in the beverage world. Still, the U.S. market continues to see a strong presence of imported brands.
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Overseas suppliers generally eclipsed domestic producers in offering new premium brands. According to Beverage Marketing Corporation, 40% of spirits in the U.S. market are imports, as are 26% of wines and 14% of beer.

60.4 Nonalcoholic Beverages According to What America Drinks, by Environ International Corporation (www.environcorp.com), the percentages of demographics consuming various types of nonalcoholic beverages are as follows:
CSD Coffee Tea Juice M ilk

Male and female, ages 4-to-8: Male, ages 9-to-13: Male, ages 14-to-18: Male, ages 19-to-49: Male, ages 50 and older: Female, ages 9-to-13: Female, ages 14-to-18: Female, ages 19-to-49: Female, ages 50 and older:

45.2% 66.6% 74.7% 58.5% 35.1% 60.5% 67.0% 51.0% 25.9%

1.0% 2.4% 3.1% 39.7% 71.3% 1.1% 5.0% 38.7% 67.9%

1.4% 2.7% 4.1% 10.7% 17.3% 4.8% 5.9% 14.2% 22.8%

37.3% 30.6% 26.5% 22.2% 35.5% 30.7% 26.7% 23.4% 34.3%

74.3% 64.8% 55.2% 37.4% 45.3% 59.9% 43.5% 32.5% 44.7%

Notes: Percentages indicate those who consum ed a beverage on the day of survey or day of recall. CSD = carbonated soft drinks. Juice includes fruit and vegetable juices but not fruit drinks. Milk includes only plain m ilk, not flavored m ilk.

According to Beverage Marketing Corporation, the overall U.S. liquid refreshment beverage market, which includes all nonalcoholic beverages, declined 3% by volume in 2009. This followed a 2% decline these were the first two years of volume decline on record. _________________________________________________________________

Last year marked a second year of unprecedented declines in the overall beverage market, signaling that the economy and decreased consumer spending continues to have a significant impact on beverage purchases.
Beverage World, 4/10 _________________________________________________________________

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