A Toast to the Holidays: Wine + Spirits Consumption Among Affluent

Revisit our on demand webinar exploring the immense importance of Affluent Americans to alcoholic beverage marketers and the industries that support them.

The author(s)

  • Tony Incalcatera Senior Vice President, US, Audience Measurement
  • Asad Amin Senior Vice President, Canada, Marketing Strategy & Understanding
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Nearly half of all spending in the U.S. on alcoholic beverages is concentrated in the top 20% of American households. These Affluents spend over $30 billion annually on beer, wine, and other spirits – nearly 4 times per capita what non-affluents do. With the holidays fast-approaching as families and friends get together to celebrate, it’s time to take stock of what wines and spirits Affluent households are buying and consuming, as well as the motivations and inspirations for their purchases. 

Nearly three-quarters of Affluent adults consume alcohol in a typical week and 4 in 10 bought wine or spirits by the case in the past year. And, in a typical month, most Affluents are entertaining friends and family multiple times at home and away. On those occasions, food and beverage are an integral part of entertaining.

Revisit our on demand webinar to hear more about the immense importance of Affluent Americans to alcoholic beverage marketers and the industries that support them. Hosted by Tony Incalcatera, the Chief Research Officer for Ipsos Affluent Intelligence and Asad Amin, SVP and Head of Ipsos’ syndicated Alcohol Consumption Tracker (ACT), insights discussed include:

  • How alcoholic beverage consumption has changed over the past few years and what can be expected moving forward
  • How high rates of inflation will impact buying
  • How Affluent consumers differ from non-Affluent
  • Drink preference differences by generation
  • The activities and occasions most associated with alcoholic beverage consumption
  • The importance of food and entertaining as it relates to alcohol
  • Attitudes and opinions about entertaining and alcoholic beverage consumption
  • Important sources of inspiration and information when it comes to purchasing

Today’s AI-generated audio transcript is offered below. Apologies in advance for inconsistencies that have been included.

0:04

Thank you for joining us for today's webinar, Exploring affluent Americans beverage consumption, and the opportunities that exist for brands.

0:12

Today's presentation will be given by Tony Incalcatara and Asad Amin, and you can read more about them on the slide in front of you.

0:21

Throughout today's session, we will remain in listen only mode, however, throughout the webinar, you may submit questions online using the Q&A feature.

0:30

Time permitting, we will answer questions at the end of today's session, however, a timeline chart, then your question will be answered by e-mail. I also encourage you to check out the handouts uploaded in the webinar console.

0:42

Today's webinar is also being recorded and will be directly e-mailed to you.

0:47

Now, without further ado, it's my pleasure to introduce today's first speaker, Tony Incalcatara, SVP with Ipsos’ audience measurement team.

0:57

Tony, you have the floor.

0:59

Thank you, Megan, I appreciate your setting in itself, and thank you, everyone for attending.

1:06

I'm going to turn my webcam off so that you can focus on those eyes.

1:11

We've got a lot to cover, so let's get started.

1:18

The first thing I wanted to do, I really wanted to start off big and that really is all about showing you just how important the affluence market is.

1:28

There's a real economic impact that they have on the wine and spirits business.

1:34

When we look at data from the Bureau of Labor Statistics, their consumer expenditure report, we see very clearly that affluent households spend more than $30 billion a year an alcoholic beverages.

1:48

We're gonna get more into this specific shortly.

1:51

But, but now that we've got your attention about how important it is, let's give you a little bit of background about, what you're going to see today and in here today.

2:03

So the insights that we're going to present are primarily derived from three sources, one or ongoing Ipsos Affluence study USA.

2:13

Along with an in-depth study that we conduct every quarter as part of our Barometer series.

2:20

The US. Affluent Survey as part of ipsos's 49 country effort.

2:26

To provide clients really with a total understanding of affluent consumers.

2:31

Who they are, what they buy, what they use, how they think, and ultimately, how to effectively reach and speak to them and the most persuasive.

2:41

We're pleased today to also share great insights about the spirits industry from our colleagues who run the Ipsos Alcohol Consumption Tracking study, which is a continuously field study among all adults of drinking age.

2:58

Now the Ipsos Affluent Survey is the longest running, and most comprehensive study about African Americans.

3:05

It started way back in 19 78, and it's been running for 46 years.

3:11

That allows us to really have an unparalleled view into how affluenza changed over the past five decades.

3:18

Most importantly, it allows us to speak today about where they stand in their median purchasing behaviors, as well as their attitudes and preferences.

3:29

So the survey itself is conducted online 24 7, 365 days here and it covers everything from automotive ownership, purchasing tend to the makeup of the strength of their financial portfolios.

3:45

And of course we focus a good amount of the survey on one of the things, you know, most near and dear to affluent arts. which is entertaining and alcoholic beverage consumption.

3:56

Now as I mentioned before, we're really pleased to have developed this Webinar in concert with our Ipsos colleagues who run a C T, the alcohol Consumption Tracker and here is an aside, I mean to tell you a little bit more about that study.

4:12

Thanks darling.

4:13

So the HCT study or Act basically captures the final stage of the consumer journey and it really focuses on consumption behavior. When it comes to alcohol, we're been in existence to actually close to a decade now, and what we do is we capture information on consumption over the course of a month. So, our respondents complete a survey over the entire month on their overall consumption of alcohol. And it's a fairly large, and robust and representative sample of that, not only looks at each of these occasions and demographics, but allows us to really look at drinking rates, cross consumption, behavior, and intensity. And it's got a fairly large, robust usage of brands and capture there, as well.

5:02

For this particular presentation, what we've done is we've looked at income earners of 125,000 plus to match what the affluent studied and that's where we're going to understand their alcohol consumption behavior accordingly.

5:17

Going back to you.

5:19

So we've got a lot to cover today, which we normally do with these webinars, but we're going to start with explaining why athletes are such an important target for marketers, especially today giving.

5:33

What is happening in the world around us.

5:36

We're going to provide some insight into the affluent mindset as it is today. This is data that was collected in the first half of November, so it's quite recent information.

5:48

It it.

5:50

Yeah, it was conducted before and during the election.

5:55

So we'll have a little bit of information from that perspective, and then we're gonna give you some essential information on alcohol consumption by affluence.

6:06

Side is going to present some really interesting findings on consumption trends that formed over the last couple of years.

6:14

We're then going to switch over to talk about the importance of food as it relates to alcohol consumption.

6:21

Before spending a little bit more time focusing in on the consumption of wine among affluence.

6:27

And after that, we'll focus on spirits and get into a little bit of information about the generational differences, we'll then attempt to sum everything up and some key takeaways for you all.

6:41

So let's start by looking today, you know, why affluents are so important to virtually every aspect of the US?

6:49

It's actually pretty simple.

6:52

It all comes down to that pack that this relatively small portion of the population controls the vast majority of wealth in the country.

7:01

They possess $94,000 billion, as well, almost seven in every 10 novelis, as well, in the US.

7:10

Now, in the last two quarters, there's been a drop in overall net worth, but that's primarily due to declines on Wall Street.

7:18

You know, something that impacts affluent households to a much greater degree than non households.

7:24

But the fact remains that the top 20% of US households still have more than three quarters of the non real estate assets in the country, and therefore they're far more liquid than the non app would population that you know, effectively means they have the wherewithal to spend.

7:45

And quite honestly, they do.

7:49

So in terms of today's topic alcoholic beverages, one of the things we see is at the top, 20% of the population spends almost as much as the other 80%.

8:02

You know, as I mentioned earlier, it's slightly more than $30 billion a year.

8:09

You know, on average, that means that affluent households outspend non african households almost four times, You know, and this is specifically on beer, wine, and spirits.

8:24

Given how important these folks are to the market, we thought it would be a good idea to take you back a little bit, give you a sense of the temperature of affluence, how they gaging the current circumstances, and what this might mean for purchases, both short-term and longer term.

8:45

We've been taking the pulse of affluent feelings about the economy for the past 13 years in our Barometer series.

8:53

For most of this time, affluence had been largely optimistic.

8:58

They feel that the economy is in a good place moving forward.

9:02

During the Great Recession, we did see brief time yeah, bears overtaking goals in terms of economic outlook.

9:10

But once we got past the great recession, optimism really triumphed over pessimism, that wasn't until cope it hit in 20 20.

9:20

Thankfully, it was a relatively short period of pessimism, outweighing optimism.

9:29

Really, as people adjusted to the changing times, optimism return until historically high inflation really hit us earlier this year.

9:41

So, when we look at the most recent results, what we're seeing is that pessimism about the economy has outweighed optimism 44% to 33%, where most of this pessimism is still centered around the maps app or population, as the ones with higher incomes are more likely to see a positive outlook for the economy. It's not great, but it is better.

10:11

In fact, you're among those households with a possible net worth of $5 million or more, nearly half of those people are bullish on the US economy.

10:22

You know, so we do see that the financial installation, that applicants have definitely changes their perspective, the future.

10:32

But that said, you know, the reality is that there are still concerns about inflation that are affecting all income levels.

10:40

The three biggest issues in this quarter, based on the survey results, are clearly on the ballot in November and they didn't go unnoticed by Apple.

10:51

Start with levels of inflation, a sense of the U S economy. Difficulties that were better head of us. Not surprisingly, given the rhetoric that was surrounding the midterm elections, it's a great deal of concern about political polarization.

11:09

Now inflation was the number-one issue cited by Affluence in this Q four barometer, both as the As the number-one issue on its own and then one of the top three issues.

11:23

So we often talk about the financial installation that affluence enjoy relative to the rest of the country.

11:30

But despite that installation, the reality is that the majority of apple would still expect that rising prices and inflation will change their buying habits over the course of the next few months.

11:44

Now of course, non affluent households are more likely to say that if they're going to change their spending habits as prices rise.

11:53

So how is this going to, you know, impact purchasing behavior?

11:57

Well around half of our pool and save the purchase, fewer products with a similar number saying they are, they'll search for sales and promotions when buying.

12:07

These two approaches are even more likely among non applicants.

12:12

As we look further about 4 and 10 Affluence and Nana Households to go wait and they'll buy items when they go on sale, non affluence are far more likely to say that they're going to buy cheaper brands, privately brands.

12:28

While an equal number of Affluent and Nana let's say they're likely to cut back on things like streaming services and media subscriptions.

12:39

But the reality is, it's not all bad news. It sounds dismal.

12:44

But in fact, a sizable number of affluence are expecting to actually spend more in certain categories, over the next several months, particularly things like travel, food, groceries across the board.

12:59

In eight categories we asked about affluent spending of the next six months was expected to be similar to or exceeding what was spent in the last six months.

13:10

So that's quite good news.

13:12

We should note that the expectation for spending on remodeling and renovation is going to suffer the most.

13:20

That's really coming off of the cold years when so many households focused on home improvements, just simply because they were continuing to spend a great deal of time at home.

13:32

So, therefore, a lot of home improvements.

13:35

John, we've certainly seen the anecdotal evidence in terms of how the sales at Home Depot Lowe's, but they're, they're starting to fall back as households have really done the renovations and changes that they wanted.

13:54

So, you know, again, let's let's return to today's topic.

13:57

Essentially, three quarters of all affluence are telling us they expect to spend the same or more on alcohol in the near term compare it to the last six months.

14:08

So it, you know, in some ways, this all sounds inconsistent.

14:11

There's high levels of concern about the economy and inflation, but continued spending at reasonable level.

14:19

And this really comes back to the financial installation that we talk about.

14:24

You know, when we ask them how they feel about their own family's finances today, compared to a year ago, two thirds of affluence are saying that the same or even better than April.

14:36

And as we've seen in the past, affluence, or enthusiasm about their own prospects, even when they sauer on the US economy as a whole.

14:46

So, you know, here, we see that 29% of our audience will either find a family finances are going to be even better or six months.

14:55

So Yeah, you know, In the end, is it. Is it time to celebrate with a toast? Or is it time to get to essentially drown or sorrows?

15:04

So let's let's look at that by checking out the basics of the relationship that capitalists have.

15:13

The bulk of spending on alcoholic beverages by Affluence is for Apple consumption.

15:19

Slightly more than two thirds of all dollars are spent on alcohol that's going to be consumed at home.

15:27

However, there's a sizable portion that's coming from alcohol, that's baud, and consumed on your on premise.

15:36

Places like restaurants, bars, sporting events, you know, anything of that.

15:43

In past webinars, we've talked quite a bit about how much affluents love to travel, So it's really a shock for us to see a significant spending on alcoholic beverages while traveling two point $8 billion a year, or about 8% of the total expenditure.

16:02

Now it's more than just special occasions. You know, things like birthdays, anniversaries, graduations, the majority of affluence or consuming one or more glasses about in the past seven days.

16:15

We note that men have high rates of consumption than women.

16:20

Wine is the beveridge most likely to be consumed overall with nearly six in ten affluenza consuming in the past seven days.

16:30

Wine consumption is roughly even between men and women.

16:34

Corpus, we look at some of the other categories we're going to see differences by gender.

16:39

So male consumption of beer, and now is close to twice as high as women.

16:45

While men are more than twice as likely as women to consume brown goods, whiskey, bourbon, rye, white goods, gin, rum, tequila, EMBARQ, abba, closer alignment between the genders. Although more men consume them.

17:02

Now purchaser is not replicated, as I said to just the special occasions.

17:06

We see that or Intent Affluence bought liquor or wind biotic piece in the past year.

17:13

One in five bought liquor by the case, and slightly more than four bought wine by the case, you'll understand why in a few slides when we talk about why bulk purchases make sense in our lives.

17:29

But we also wanted to bring out was Affluence tend to be explorers and experimenters just in general.

17:38

they tend to be brand loyal in many ways and certainly with alcoholic beverages we see that nearly three quarters of them are saying that they found the alcoholic beverage, brands and products they really like, and they stick with them.

17:53

Yet at the same time, we're also seeing a significant portion who say that they will re purchase a new beer wine or other alcoholic beverage that they've tried.

18:05

So these are people who are willing to try new things, and if they, if they like it, they will continue to, to purchase.

18:16

Well we know that affluence in general, exhibit this intense interest in the world around as a rule, their busy day, if they're curious, they're they're knowledgeable about the world because they spend time researching and understanding And interested in learning more about alcoholic beverages.

18:37

Trying new beer, wine or spirits, is very high for many.

18:42

So it's a good thing for marketers because they're willing to be able to try new things and understand and they're open and receptive to messages.

18:55

Now we're going to talk more about the connection between food and alcoholic beverages in a little bit.

19:01

But I did want to show you a little bit about the interest in the new and special, and that extends to, things like checking out your restaurants.

19:12

The fact that almost half of women say, they will order the special or seasonal drinks at restaurants. And a fully, a third of affluent say they enjoy staying on top of the latest culinary trends.

19:25

So, these two things, you know, are really meshed together.

19:31

It's part of the psyche part.

19:36

This interest really, in all things surrounding food and beverage, really makes afterwards open to the marketing messages.

19:44

They're likely going to be the first to try.

19:48

when we look at the data, a quarter of all affluence, drinking age are early adopters when it comes to alcoholic beverages and really importantly about a third of them with others about alcoholic beverages, I apologize.

20:04

two dogs here that are not behaving well today.

20:12

My colleague, Assad Fatefully, while I mute my mic will take you through some interesting findings from the Ipsos Alcohol Consumption Tracker about recent changes in consumption.

20:24

So over to you, Assad.

20:26

Thanks, Tony, your timing for the segue. So, what I'm gonna go through in this section is just some of the changes we've seen in the course of the last 2.5, 3 years of how consumption behavior for alcohol, among aslan's have changed in light of the pandemic.

20:46

So, what you have here are the average servings among affluent consumers of different types of alcoholic beverages. And, the Navy blue line at the top represents total alcohol and while there's been varying degrees of consumption through our pandemic, you can see there are clear lifts and most recent periods. This was primarily driven by, fear and they all as you can see in the yellow line. In addition to Whiskeys Bourbons and arise, in particular, I will come back to the reasons behind this, but we want to start with understanding what is driving some of these lifts? In addition to some of the more recent trends for beer and whiskey, There are some newer types of beverages that it's important for you.

21:33

The audience to understand, and they're related to R T. Ds, which are ready to drink beverages, and this comprises of premixed cocktails and things of that nature as well as hearts seltzer. So for those that are not familiar, a large brand would be white cloth in that category and these have been growing at a fairly rapid pace throughout the pandemic as well.

22:00

Next slide, please.

22:02

So, one of the major reasons and shifts we've seen on alcohol consumption, while the majority is, Tony alluded to earlier occurs at home.

22:13

There's been a lot of shifts in the food service sector as a result of all the lockdowns and restrictions that we've been facing. So when you're looking at a general distribution of servings of alcohol between residential, which would be at home, represented by the blue lines, versus on premise, which would be in restaurants or other food service establishments, which will be the yellow.

22:38

You can see there's differences in that gap widened right. At the start of the pandemic now, with affluence, which if I look at the solid yellow line, especially on premise, they always tended to skew higher towards consuming alcohol on premise. It speaks earlier points about their preference for trying new things and going to new restaurants as well.

23:01

And while that kind of dissipated at the start, it's been gradually growing over the last couple of months as well. And that would be part of the reason why we're seeing such a solid acceleration of particular types of alcohol, beverage, consumption in most recent quarters.

23:21

Next slide, please.

23:24

In most cases, if we were to break down the type of alcoholic beverages consumed by affluence, beer, by far as the highest, but it's not unique to this cohort, it's pretty much in line with how non affluence will consume beer as well.

23:41

What we see consumed at a higher level or rate among affluence is one where you see 26% of all alcoholic beverages are attributed to that particular category. and then also whiskey slash bourbon Sunrise. and those, to really drive a lot of the consumption on behavior and appeal among this.

24:03

Next slide, please.

24:05

Now what's unique and interesting about wine consumption among affluence is that there's a higher tendency of consuming the wine at home.

24:16

Of course, they do order wine when they go out to eat at restaurants. But in general, compared to other cohorts, there is a higher tendency to consume Weiner hall. And part of the reason is the dynamic of the occasion, when they drink wine. It's usually more intimate settings. So if they're at home, it would be likely with a loved one, or by themselves. And it also explains why you're generally tends to be at even development among this cohort, because, in most cases, beer tends to skew towards larger groups and larger occasions. So, it's an important dynamic to understand within wine and what makes it unique for the school and home and in smaller groups and settings.

24:59

Next slide, please.

25:01

Now, there are various strivers and reasons for why consumers drink.

25:08

But one of the main reasons that we've seen a lot of the changes in recent periods are excellent.

25:15

Consumers when they are seeking alcohol occasions tend to more likely consume it with a type of food.

25:21

And on addition to that, they always tended to consume it for connecting with others. And those two factors alone are one of the reasons we're seeing a lot of the growth in recent periods.

25:32

If we go look at the growing dynamics as well, we see similar growth, especially compared to prior to the pandemic, connecting with others, and eating more food.

25:44

And this explains the fact that most consumers including affluent, and then in isolation for the majority of the period of the pandemic with the opening of restaurants and they need to reconnect. These two factors alone are attributing to a lot of the growth that we're seeing among this group. And I think it's fairly important to understand and appreciate the meal dynamics when it comes to alcohol consumption. So, back to you, Tony, to speak, to that section.

26:15

Fantastic. Well, thank you. Thanks.

26:17

Thank you, Beth.

26:19

And thankfully, AFA hoods are not drinking on an empty stomach.

26:24

For affluents, food and beverages are experiences that they enjoy together, especially with friends and family.

26:32

So a large part of affluent lives is about sharing, sharing the benefits that they have, the wealth that they have.

26:41

They love to entertain friends and family.

26:43

They extend hospitality both at home and at restaurants, bars, other venues outside the home.

26:50

Back when they look at the data, more than 80% of affluence, say that they entertain at home in an average month, in two thirds of them entertain outside the minute.

27:01

Roughly one in five do so three or more times a month. So that adds up to a lot of occasions.

27:08

Where food and beverages are highlighted that, brings me back to that point we made earlier about the bulk buying, about buying buy the case.

27:18

You know, as you, as you can tell from, or as soon from the fact that they entertain as often as they do, they need to keep a well stocked.

27:30

Yeah, well style. They need to keep their bar well stocked with both wine and spirits.

27:36

Now, for the most part, premium wine and spirits brands and most important for them.

27:43

When we look at this, when affluent entertain, they entertain well, so the majority of them are telling us that when they do entertain, they only serve the best food and beverage.

27:55

More than half of them say, The premium Licker brands are worth the additional cost.

28:00

And the food and beverage connection extensive virtually every aspect of their lives. 54% saying they go out of their way to make sure that find food and wine as part of every vacation they take.

28:12

So this is this is a clear connection and an important connection for apples speaking of travel and leisure pursuits. We also note that a large part of a large portion of affluence take their love of food and wine even further.

28:29

They attend food and wine festivals.

28:32

They sample beverages and breweries, vineyards are taking part in wine tasting while they're on a trip.

28:43

It's not a huge portion of the population.

28:48

But there are there are plenty of gorman's among the affluent population, 8% of them are telling us a percent of affluent wine drinkers, I should say, were telling us that they are making sure that they had dinner at a Michelin restaurant and Michelin starred restaurant as part of their travel plans.

29:08

So these are people who are very much committed to find foods and beverages.

29:15

Speaking of data, assad's got some interesting information on the connection.

29:22

So I think it's important to understand. There are unique strategies to pair different type of alcoholic beverages depending on the food you want to pair with.

29:33

In some cases, there's probably no surprises here. So beer tends to pair it better with fast food type of product, whether it's burgers Pete says, doctor sandwiches, lime, tends to skew more towards formal or heavier meal type dinner fair, Whether you're talking about past seafood, or red meats. Now it's interesting with spirits. Generally, what you see is, that, for a type of full course meal, again, things that tend to happen more. more so, in restaurants, is, when, you might have a type of spirit, whether its priority or meal or maybe afterwards. It's interesting just to see the difference between Whiskeys Bourbons, an array for favorite towards Red Meats versus general tequila and what goes towards seafood?

30:21

Over to you.

30:24

Thank you.

30:25

So let's see, We've covered some of the basics. Let's focus on some specifics about affluence. Love about wine.

30:35

Yeah, as we mentioned earlier, wine is the alcoholic beverage most likely to be consumed by affluence in the past week, not necessarily the the surveys, but certainly the percentage of affluence draping.

30:50

Now an even higher number, 60% tell us that they, they buy wine at least once a month or or even more frequently.

30:59

Most of these wine purchases are taking place in the retail stores.

31:04

But a sizable number of affluence have made the commitment to the grape if you will, by joining wind clubs to get regular shipments.

31:15

two, you check out new offerings from the vendors to affluents a price of $45 separates.

31:25

Premium wine from essentially every day.

31:29

And slightly more than half of them spend about $50 reward, or excuse me, at half a bottle of wine or spent $50 or more on a single wow.

31:42

Now, approximately one in four Apple is purchases Fine one on a monthly basis.

31:49

Given the high consumption, the fact that they buy in bulk, it's also not surprising to see them or 10 applicants, have a wine refrigerator, or a wine cellar right in their home installed in their home.

32:03

You know, clearly these are people who work very serious about why.

32:07

In fact, slightly more than half of affluent wine drinkers consider themselves knowledgeable about wine.

32:16

So where do they get the knowledge in and what or who inspires when it comes to wine?

32:23

Almost two thirds of wine drinkers tell us that they learn or get inspiration about wine by browsing in retail stores.

32:32

And that really points to the critical need for point of purchase influence.

32:37

For many of the Earth, the path to purchase is incomplete, until they're browsing the aisles of the store and making those on the spot decisions.

32:47

Outside of the point of purchase, there are other sources of inspiration and learning, but they pale in comparison to what is happening at the retail store.

32:57

So one in three rely on recommendations from family and friends, a similar number say that they taste or sample wine before purchasing.

33:08

It really comes back to the importance of on premise consumption.

33:13

Because it's really showing that about one in three wine drinkers learn about wine by trying them in a restaurant.

33:20

and 104 have visited a vineyard.

33:25

Now, at the point of purchase, and when, when the purchase is actually happening. It's not gonna surprise anybody.

33:31

at color, price varietals, are the biggest considerations in the purchase.

33:37

You're pointing to the willingness to experiment and try new things, only one in five states, that they previously enjoyed a wind in as one at the top factors at the point of purchase. So they are not necessarily buying on past behavior.

33:57

Interestingly, fewer than one in ten wine drinkers mentions the brand or the vintner as a top attribute.

34:04

When they're making that purchase, it's significantly lower than then what we see for Bureau or liker Purchasers.

34:12

It really points up to the competitive nature of the selection process at the point of purchase.

34:20

Now in general, affluence are smart shoppers, it really, you know, thanks to being inquisitive.

34:27

Thanks to researching before buying affluent wine drinkers buy up and down the price spectrum.

34:34

Nearly three quarters of affluence by red wine, and the median price point for a typical bottle was 17 dollars and 75%, but roughly one in seven red wine buyers spends $30, or more than a typical bottle.

34:52

The price point for white wine is typically lower than red, but affluents are typically see typically law, willing to spend more per bottle or champagne.

35:04

Here, nearly one in affluence will spend $50 or more on a purchase of champagne.

35:11

Now, has some further data on equity, purchases by varietals.

35:17

I think the main takeaway here is that strong preference for, for rents. So this reflects, you know, over the course of the month CAHPS apps.

35:28

For example, 30% of affluent drinkers prefer or have consumed ... over the course of that month.

35:36

And, you know, the two types, you can see, whether it's a CAHPS safra, read, Blend by far makeup, the wrap, the majority of the share others, Whether it's more low, You know, Lars also are fairly high and chardonnays among the white.

35:52

I think the main takeaways here is, while you see the strong preference for ads, a lot of this is driven by the pairing with food behavior, that we see is incidental with affluent consumers. And again, why it is one of those categories that has the highest level of caring with any type of food and, you know, that type of preference, of which type of varietals might do better paired with food, might be driving the decision and the reasoning behind some of these rankings.

36:27

So from a personal perspective, let's move on to Spirits. I personally do love a good martini.

36:35

Straight up, dry.

36:38

No dirty Martinis. For me, thank you.

36:42

While Jinn may not be the number one choice for Affluence when it comes to spirits, they do generally enjoy a good drink.

36:50

In the past seven days, we see that more than half of affluence consume one or more glasses of distilled spirits about one in three drank bot gov, one in four, drink whiskey, and or tequila.

37:06

And slightly last strength, bourbon, rum, and originated.

37:11

Now, as I mentioned earlier, affluence tend to agree that premium liquor is worth the extra price.

37:18

And we see from the data that a large majority of them have spent $50 or more on a single experience, and as you know, similar vein is we talk about affluence entertaining more than half of them purchase liquor on a monthly basis.

37:33

So again, this is a and M important aspect of affluent lives.

37:39

57% of applicants who drink distilled spirits consider themselves knowledgeable about the beverage of choice.

37:47

That's just slightly higher than the percentage of wine drinkers who consider themselves now.

37:53

So, you know, where does that knowledge come from?

37:56

Well, again, the retail store is a great source of inspiration. Although it's less so than the impact of wine purchasers.

38:05

It may have to do with the fact that there are generally fewer brands per category compared to the variety and the complexity of wine offerings, or it could come down to the fact that there's greater consistency in flavor for distilled spirits brands.

38:22

You know, similar to wind, though, other sources of inspiration that impact the purchase decision, are things like recommendations from friends and family, tasting, sampling, previous experience at U S interests at a restaurant or bar.

38:39

Now, at the point of purchase, flavor is, is still king.

38:45

It far surpasses the other attributes, price is definitely a consideration.

38:52

The flavor is more important to affluence than price and that's not surprising given what we see in other areas of affluent behavior.

39:02

It's worth noting that 28%, Spirits Drinker's ranked brand is one at the top attributes And although that is almost three times higher than brand and brand importance for wine purchase, it really shows that there's still a fair amount of volatility at the point of purchase.

39:24

So there's a real need for spirits men, marketers, to make sure that their brand is being well displayed and well represented in store as the decision is being made.

39:37

Now we often speak about the generational shifts happening among affluence.

39:42

The a C T, has some interesting perspective.

39:45

You know I'm really how this materializes in the alcoholic beverage consumption patterns, Assad.

39:53

So even among African consumers, it's still not a one size fits all when it comes to the types of alcohol categories preferred by cohort.

40:05

As you can see, there are some distinctive differences between younger and older affable and alcohol consumers.

40:11

In general, older cohorts tend to consume more wines, so you can see 40%. Among seniors 33% among Boomers. And that in contrast among Gen Z and millennials, around 21%.

40:26

And similarly, for spirits, you can see a higher level of consumption among older cohorts versus younger.

40:32

In contrast, what you see is beer by far accounts for the largest share of different categories among Gen Z and Millennials, 43%, compared to only 28, or 33%, for seniors, and Boomers, respectively.

40:46

Also, the category that I had mentioned earlier that's been growing quite a lot since the pandemic has been driven by these younger cohorts. So your artes, aerated drink, alcoholic beverages, as well as our ..., has been growing mainly attributed to younger generations. And the reasoning behind this is there's been a lot of shifts towards health and wellness trends even within overall alcoholic consumption.

41:13

And the need to have more reduced sugar intake or potentially lower carbs is one of the key reasons for the growth for these categories. And why they're encroaching into space for beer, especially among younger cohorts.

41:31

Next slide, please.

41:33

Now, know, different needs will drive different behaviors. And this still applies to the differences between younger and older courts among affluent alcohol consumers. Older cohorts boomers, for example, their needs for alcohol tends to be a bit more functional.

41:52

Primary reasons. Food pairings are so highly skewed towards these occasions. Whereas for Gen Z and millennials, it's a bit more emotional driven. They're out to have a good time, connect with friends and others, and then the stress. And it's really important to understand these distinctions among these two courts, because it applies to how you want to target, communicate and position, any type of communication when it comes to alcohol consumption among these two groups within affluence.

42:32

We always pack a lot of information to these webinars, and I hope you find the information useful and insightful.

42:40

But before we close it, let's try to sum up today's presentation into a few salient points to take away.

42:49

The first, really, the elephant in the room is, of course, inflation and the impact that it's having, due to rising costs, concerns about the potential recession.

43:02

The good news is that affluents continue to feel good about their own personal finances, but even so there, they're telling us that they expect their spending habits, their future spending habits to change slightly.

43:16

Given their substantial nest egg, marketers should continue to focus efforts on this group of affluence because there's clearly the most insulated against difficult financial times.

43:31

And from past experience, what we've seen, certainly over the last 46 years that we've been conducting this study is that they're usually the fastest group to recover from any negative impacts that occur.

43:47

Assad.

43:49

I think also, the, the news of the shift from focus on the pandemic and the restrictions that had to some other headwinds such as inflation, still hasn't deterred a lot of consumption to normalize particularly among the African group.

44:09

I think that desire to entertain and reconnect kind of trumps everything else in the near term. And remember, this group tends to be less impacted by the shifts on inflation overall, so this in turn, has helped drive a lot of on premise alcohol occasions, especially in the last two quarters. And that's why we're seeing a lot of lifts and overall consumption in general. Now in addition to that and leading from there, we do see a very strong involvement with food and beverage parents. And that is really one of the crux of when you're looking at alcohol occasions among affluence that you want to kind of focus back on.

44:47

And while there are different strategies of how you want to pair alcoholic beverages with different types of foods, I think it's important to consider all of these things in totality, the need to reconnect, the ability for people to entertain, and of course, to enjoy some of the more basic traits that was limited during a lot of the restrictions that we'd seen is driving a lot of the growth in recent periods.

45:17

Thank you. Saddle, as we close, we can't emphasize enough how important this relatively small group.

45:26

People are too alcoholic beverage marketers the affluent population outspends non affluents by almost 401.

45:36

So in essence, one out of every $2 spent on alcohol is coming from affluent households.

45:43

They're clearly a force to be reckoned with in this industry as well as most of the other industries that we look at.

45:51

So, you know, we were thankful that we were able to provide insight into who these people are, how they think.

46:00

We hope that what we present today, it's giving you good insight into the relationship they have.

46:11

And feel free to reach out to Assad or to myself if you have questions or if you'd like further information.

46:21

But I think we will close on that note today, to thank you all for joining, and we look forward to talking to.

46:33

I just wanted to thank you guys so much for today's really interesting presentation. And thank you for all of us who joined us today.

The author(s)

  • Tony Incalcatera Senior Vice President, US, Audience Measurement
  • Asad Amin Senior Vice President, Canada, Marketing Strategy & Understanding

Consumer & Shopper