Shrinking US bar tabs signal little festive cheer for liquor makers
3 months ago

Shrinking US bar tabs signal little festive cheer for liquor makers

Live Mint  

* US drinkers spending less on expensive cocktails amid high inflation, bar owners say * Wholesaler sales of spirits expected to decline nearly 6% this year, trade group says * Trend poses challenge to liquor companies such as Pernod, Diageo By Emma Rumney, Jessica DiNapoli LONDON/NEW YORK, - Meaghan Dorman's five New York bars look just as full as they always do in December - packed with couples on dates, holiday get-togethers and business meet ups. The trend poses a challenge for major spirits producers like Diageo and Pernod Ricard, for whom October, November and December are critical to help drive annual sales. As well as buying less, some drinkers are switching to cheaper liquor brands and venues or reducing the amount of out-of-home celebrations they attend, Southern Glazers Wine & Spirits, Republic National Distributing Company and Breakthru Beverage Group, which count Diageo and Pernod among their suppliers, said. Annually, wholesaler sales of spirits are expected to decline by 5.65%, with year-over-year trends pointing to potentially severe volume decreases over the festive period, trade group the Wine and Spirits Wholesalers of America told Reuters.

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