Thursday, October 15, 2015

Restaurant Spending On Alcohol Increased Due To Prices

By Cornelius Nunev


Alcohol is a demon to some, but is something people have been enjoying for millennia. Americans are spending more on it in dining places and bars in recent years, though. However, it has absolutely nothing to do with increased consumption, but rather with higher costs.

Costs slowly increasing

According to a recent post on NPR, part of its "What America Spends On" series, Americans are gradually increasing the amount spent on alcoholic beverages in restaurants and bars. The series compares figures from 1982 to today, examining the changes in the 30-year period.

Americans had a lot of things taken away during the Cold War in 1982. At that time, consumers only spent 24 percent of the alcohol spending budget in dining places and bars. About 76 percent of it went to alcohol from stores.

About 40 percent of alcohol spending takes place in restaurants and bars now, which means we are spending more there. Only 60 percent is spent in stores. There has also been a massive increase in bar and restaurant prices. They went up 79 percent, in contrast to the 39 percent drop in costs at shops. It might even suggest more people are buying at shops.

Grape expectations

Part of this change that the nation faced incorporated the belief that the country has seen changes in spending. For instance, in 2010, 16.2 percent of alcohol is spent on spirits while 39.7 percent was spent on wine. In 1982, only 16.2 percent was spent on wine, 34.6 percent was spent on spirits and 48.9 percent was on beer. Tastes have gotten much more expensive.

The wine industry in America is in the midst of a gilded age. In 2011, according to the San Francisco Chronicle, there were 329.7 million cases of wine shipped around the country, which marked a milestone as the United States, for the first time, eclipsed France as the chief wine-drinking nation, as that country went through 320.6 million cases.

In the United States, Millennials are really drinking more than the previous generation and have more expensive tastes. That is why the American wine industry saw large increases in 2010 to become a $30 billion industry. Of the 241.8 million cases sent out from wineries that year, 61 percent came from California, making it the very best state for wine.

Most drink beer

Beer accounted for 47.7 percent of sales in 2012, which was hardly any change from 2012, according to NPR. It is still the drink everyone wants in the country. Overall, Americans are consuming less though, which is why overall beer production decreased from 1990's 204 million gallons to 2011's 192 million gallons, according to BusinessInsider.

Craft breweries are starting to become much more popular as well. In fact, there were 1,989 craft breweries in 2011 with 37 closing and 250 brand new ones opening. Almost 5.7 percent of the industry share and $8.7 billion in revenue was given to the craft breweries. They produced about 11.5 million barrels of beer. There was an 11 percent growth in craft breweries from 2010 to 2011 as well.



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