Foodservice Alcohol Sales Predicted to Drop in 2010

Bars and nightclubs may be the only foodservice vendors that have reason to cheer in 2010. That’s because these establishments are expected to see sales of beverage alcohol rise by 0.6%. According to Technomic other away-​from-​home  businesses will see 1194923_cocktaila further decline in sales of beverage alcohol in 2010. The overall average drop may be about 2.5% but some establishments will fare better than others.

  • Fine Dining:  ‑10.4%
  • Casual Dining: ‑6.8%
  • Bars/​Nightclubs: +0.6%
  • Lodging: ‑6.1%
  • Casinos: ‑5%
  • Concessions: ‑2%
  • Other Recreation: ‑4.2%

The predicted drop in sales will hit the wine category (-6.7%) hardest. The beer category will see a drop of about 1.8% while demand for spirits will drop 2.1%.

This gloomy outlook compounds an already sour sales situation for the industry. Technomic notes that on-​premise beverage alcohol sales will drop 4.9% in 2009. David Henkes, Vice President at Technomic points out, “[o]ur outlook for alcohol sales is based upon continued weakness in restaurant traffic and further consumer frugality.” The good news is analysts expect to see real growth in 2011. In the meantime, marketers need to develop creative and unique campaigns to tempt consumers to order a glass of wine along with dinner.

[Source: Technomic release, 11.02.09]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.