Wine Up as Beer Goes Flat

Filed in archive Wine News on August 7, 2006

Pizza and beer is slowing losing ground to pizza and wine as beer sales are feeling the sting of wine drinkers who are choosing a glass of vino over a can of suds. This is especially true in the United States where beer sales continue to drop as the wine industry becomes stronger and stronger.

From Beer sales falling flat as wine, other beverages grow in popularity:

U.S. beer shipments last year were flatter than a stale ale, falling 0.1 percent according to the Beer Institute. The industry group says shipments to the U.S. market -- which accounted for about 86 percent of overall business -- declined 2.2 percent to 178.8 million barrels. The drop was offset by a 7.2 percent increase in imports and an 8 percent increase in exports.

Shipments fell in 30 states including Pennsylvania, where they declined less than 1 percent to 8.6 million barrels.

Meanwhile, the Wine Institute reports wine consumption grew 5.2 percent in 2005 while the distilled Spirits Council says sales rose 2.9 percent based on the volume of alcohol sold.

Marketing experts say the disparity indicates the degree to which wine and distilled spirits producers have capitalized on changing consumer tastes. Drinkers are more sophisticated, willing to try something new, and looking for different beverages that are appropriate for different occasions.

More importantly, they don't want to be seen drinking the same thing as everybody else.

Brewers, long criticized for advertising that targeted the lowest common denominator, are finally realizing that a crucial market is more sophisticated than their baby boomer parents.