Nielson reported yesterday that "Despite Improving Economy, Alcohol Beverage Consumers Cautiously Indulge." Wine Business Monthly chose to highlight the sub-title of the article, which I found somewhat misleading, "Consumers Who Trade Down Satisfied with Quality, Likely to Continue to Buy Less Expensive Alcohol Beverages." I don't think the sub-title is accurate having looked at the data and I don't see why WBM chose to highlight it. Overall, this is particularly good piece of news.
The real take away from this release is that, "While 'trading down' has been the buzz of the economic downturn, more than three-quarters of consumers surveyed claim they have not changed their alcohol beverage purchases because of price." Some buyers are choosing the same products, but less often; others wait till those products go on sale; but 20% "tried less expensive products but weren't happy with the quality or experience!" (emphasis supplied). Of the 25% of wine consumers who have traded down, 20% did not find good values, with some "willing to sacrifice some quality in order to save." This group is likely to trade back up with an improving economy. Additionally, Millenials are particularly "likely to trade back up, compared to other age groups."
And that, my friends, is something I can drink too.
To me, the best thing about this "economic crises", is that we all have had the opportunity to trade up - to actually find all the great and rare wines previously so hard to find. Now, everyone can buy and taste some of the most sought after wines.
ReplyDeleteAs a consultant for the wine trade, I have managed to establish numerous of contacts between importers/wine merchants and producers of very rare wines. I think that's great!