Monday 19 October 2015

Restaurants Charging More For Alcohol And Spending Increased

By Cornelius Nunev


Dining places and bars charge a markup on alcoholic drinks, but individuals have been spending more on them there than in shops. However, it has every little thing to do with higher costs, rather than consumption.

Seeing markup

When looking at changes in the 30-year period from 1982 to today, NPR found that Americans are starting to spend more on alcohol in bars and dining places, according to the "What America Spends On" series.

In 1982, the Cold War still existed, spandex was in vogue and yuppies were driving BMWs. Americans were also mindful of the mark up on beer, wine and spirits in restaurants and bars, as only 24 percent of alcohol spending was in those places and 76 percent was spent in shops.

The price of restaurant and bar alcohol has increased 79 percent during that time while store prices have dropped 39 percent. This is essential because it shows why there was a shift in people spending more in restaurants and bars now. Currently, only 60 percent is spent in stores with 40 percent spent in bars and dining places.

Spending habits by product

in 1982, only 16.2 percent of alcohol costs were for wine while 48.9 percent was on beer and 34.6 percent was on wine. That has changed a lot in 2012 when wine spending has increased to 39.7 percent. Spending on spirits decreased to 12.6 percent. That was the biggest change seen in the country.

The San Francisco Chronicle explained that there were 329.7 million cases of wine shipped in 2011, which was a milestone in the States. In fact, it was the first time that the country beat France's 320.6 million cases. America is certainly more successful in wine than other things right now.

In 2010, the American wine industry was a $30 billion industry. In that year, 241.8 million cases were sent from a ton of different wineries. Millennials are willing to spend more on expensive bottles and are drinking more. California by itself produced 61 percent of that wine, which means California is the state where the majority of the wine comes from.

Most drink beer

Beer accounted for 47.7 percent of sales in 2012, which was almost no 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.

Beer drinkers are slowly gravitating toward brews from Main Street rather than Wall Street, as craft breweries are proliferating. In 2011, an 11 percent growth of the number of craft breweries was recorded over 2010. There were 1,989 craft breweries in operation, with 250 new breweries opening and 37 closing. Craft brewers produced almost 11.5 million barrels, a 5.7 percent share of the market, and made $8.7 billion in revenue.



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