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On-premise Alcohol Consumption Trends - US - February 2013

Published By :

Mintel

Published Date : Feb 2013

Category :

Beer

No. of Pages : 136 Pages


When it comes to on-premise alcohol trends, the recessionary spending habits of consumers are continuing. These consumers are being deterred from purchase due to price, health, and fear of public intoxication. To draw out these consumers, operators must create the right balance of offerings that meet the specific needs of their target consumers. Such strategies should be focused around entertainment, ambience, and service as they cannot be duplicated at home.
TABLE OF CONTENT

SCOPE AND THEMES
What you need to know 
Definition 
Data sources 
Mintel Menu Insights 
Consumer survey data 
Advertising creative 
Abbreviations and terms 
Abbreviations 
Terms 

EXECUTIVE SUMMARY
The market 
Figure 1: U.S. sales and fan chart forecast of on-premise alcohol market, at current prices, 2007-17 
Market drivers 
Competitive context 
Menu analysis 
Figure 2: Segment breakdown of on-premise alcohol beverages, by incidence, Q4 2009-12 
Figure 3: Top 10 cocktail types, by incidence, Q4 2009-12 
Consumer data 
Figure 4: On-premise alcohol consumption behavior, October 2012 
Consumer attitudes 
Figure 5: Attitudes toward on-premise alcohol consumption, October 2012 
What we think

ISSUES IN THE MARKET
How can operators get consumers to shake off recessionary habits? 
How can operators meet consumers’ health needs? 
How can operators overcome consumers’ social fears of intoxication? 

INSIGHTS AND OPPORTUNITIES
Drink trends from 2012 are continuing to expand 
Packaging 
Booze in new places 
Alcohol pairings 
Figure 6: Milwaukee’s Best Burgers’ Bloody Mary, November 2012 
Flavored alcohol 
Technology

TREND APPLICATIONS
Trend: Minimize Me 
Trend: Experience Is All 
Trend: 2015 Brand Intervention 

MARKET SIZE AND FORECAST
Key points 
Market size insight 
On-premise alcohol sales and forecast 
Figure 7: Total U.S. sales and forecast of on-premise alcohol market, at current prices, 2007-17 
Figure 8: Total U.S. sales and forecast of on-premise alcohol market, at inflation-adjusted prices, 2007-17 
Fan chart forecast 
Figure 9: U.S. sales and fan chart forecast of on-premise alcohol market, at current prices, 2007-17 

MARKET DRIVERS
Key points 
Disposable personal income increased and is stronger than 2011 
Figure 10: Real disposable personal income, January 2007-November 2012 
Unemployment and underemployment decline 
Figure 11: Unemployment and underemployment rates, January 2007-December 2012 
Consumer sentiment experienced a large decline
Figure 12: Consumer sentiment, January 2007-December 2012 
Calorie disclosure legislation and sugary drink bans 
Cost and inflation of food items
The aging population 
Figure 13: Population, by age, 2010 

COMPETITIVE CONTEXT
Drinking at home: cheaper, but lacking the eating out experience 
Figure 14: Changes in behavior with on-premise alcohol consumption, October 2012 
Figure 15: Consumer behavior regarding on-premise alcohol consumption, by gender, October 2012 
Figure 16: Attitudes toward on-premise alcohol consumption, by gender, October 2012 

FEATURED COMPANIES
Limited service 
Smashburger 
Figure 17: Smashburger + Saint Arnold pairing menu, January 2013 
Full service 
Applebee’s Neighborhood Grill and Bar 
Twin Peaks 
The Capital Grille 
Specialty 
Cooper’s Hawk Winery & Restaurant 
Oskar Blues Brewery 

MARKETING STRATEGIES
Overview of the brand landscape 
Television ads 
Buffalo Wild Wings 
Figure 18: Buffalo Wild Wings television ad, August 2012 
Joe’s Crab Shack 
Figure 19: Joe’s Crab Shack television ad, August 2012 
Shula’s Steak House 
Figure 20: Shula’s Steak House television ad, September 2011 
T.G.I. Friday’s 
Figure 21: T.G.I. Friday’s television ad, January 2013 
The Keg Steakhouse 
Figure 22: The Keg Steakhouse television ad, January 2013 
Tilted Kilt 
Figure 23: Tilted Kilt television ad, September 2012 
Print and social media advertising 

MENU ANALYSIS: ON-PREMISE ALCOHOL
Segment breakdown of alcoholic beverages 
Figure 24: Segment breakdown of alcohol beverage items, by incidence, Q4 2009-12 
Figure 25: Segment breakdown of alcoholic beverage items, by price, Q4 2009-12 
Leading alcoholic beverages menued 
Figure 26: Top 10 alcoholic beverage items, by incidence, Q4 2009-12 
Figure 27: Top 10 alcoholic beverage items, by price, Q4 2009-12 

MENU ANALYSIS: COCKTAILS
Segment breakdown of cocktails 
Figure 28: Segment breakdown of cocktail items, by incidence, Q4 2009-12 
Figure 29: Segment breakdown of cocktail items, by price, Q4 2009-12 
Leading cocktail types 
Figure 30: Top 10 cocktail types, by incidence, Q4 2009-12 
Top alcohol types used in cocktails 
Figure 31: Top 10 alcohol ingredients used in cocktails, by incidence, Q4 2009-12 
Frequently menued item claims 
Figure 32: Top 10 menu item claims for cocktails, by incidence, Q4 2009-12 

MENU ANALYSIS: WINE
Segment breakdown of wine 
Figure 33: Segment breakdown of wine, by incidence, Q4 2009-12 
Figure 34: Segment breakdown of wine, by price, Q4 2009-12 
Leading categories of wine 
Figure 35: Top categories of wine, by incidence, Q4 2009-12 
Most menued types of wine 
Figure 36: Top 10 types of wine, by incidence, Q4 2009-12 
Top menu item claims for wine 
Figure 37: Top 10 menu item claims for wines, by incidence, Q4 2009-12 

MENU ANALYSIS: BEER
Segment breakdown of beer 
Figure 38: Segment breakdown of beer, by incidence, Q4 2009-12 
Figure 39: Segment breakdown of beer, by price, Q4 2009-12 
Leading types of beer 
Figure 40: Top 10 types of beer, by incidence, Q4 2009-12 
Most frequent menu item claims for beer 
Figure 41: Top 10 menu item claims for beer, by incidence, Q4 2009-12 
Top flavors for beer 
Figure 42: Top 10 flavors for beer, by incidence, Q4 2009-12 

ALCOHOL TYPES TYPICALLY ORDERED ON-PREMISE
Key points 
Men choose beer and shots, while women pick wine and specialty cocktails 
Figure 43: Alcohol types typically ordered on-premise, by gender, October 2012
Millennials order on-premise alcohol more than any other age group
Figure 44: Alcohol types typically ordered on-premise, by age, October 2012 
Affluent consumers prefer wine and specialty cocktails 
Figure 45: Alcohol types typically ordered on-premise, by household income, October 2012 
Some drinks resonate strongly with particular races 
Figure 46: Alcohol types typically ordered on-premise, by race/Hispanic origin, October 2012 

CHANGES IN BEHAVIOR WITH ON-PREMISE ALCOHOL
Key points 
Consumers are continuing to restrict spending on on-premise alcohol 
Figure 47: Changes in behavior with on-premise alcohol consumption, October 2012 
Men have increased the amount they spend per visit 
Figure 48: Changes in behavior with on-premise alcohol consumption, by gender, October 2012 
Increases in on-premise behavior decline with age 
Figure 49: Changes in behavior with on-premise alcohol consumption, by age, October 2012 
Affluent more likely to have increased visits, amount spent, and trial 
Figure 50: Changes in behavior with on-premise alcohol consumption, by household income, October 2012 

SPECIALTY COCKTAIL SELECTION METHODS
Key points 
Consumers seek out certain alcohol types and reject cocktails with others 
Figure 51: Specialty cocktail selection methods, October 2012 
Men want beer and dark liquors, while women look for wine and light liquors 
Figure 52: Seek out cocktails with this alcohol type, by gender, October 2012 
Figure 53: Indifferent to this alcohol type, by gender, October 2012 
Figure 54: Will not order a cocktail with this alcohol type, by gender, October 2012 
Age dictates liquor preferences and ordering behavior 
Figure 55: Seek out cocktails with this alcohol type, by age, October 2012 
Figure 56: Indifferent to this alcohol type, by age, October 2012 
Figure 57: Will not order a cocktail with this alcohol type, by age, October 2012 
Income dictates liquor preferences and ordering behavior 
Figure 58: Seek out cocktails with this alcohol type, by household income, October 2012 
Figure 59: Indifferent to this alcohol type, by household income, October 2012 
Figure 60: Will not order a cocktail with this alcohol type, by household income, October 2012 
Racial differences dictate liquor preferences and ordering behavior
Figure 61: Seek out cocktails with this alcohol type, by race/Hispanic origin, October 2012 
Figure 62: Indifferent to this alcohol type, by race/Hispanic origin, October 2012 
Figure 63: Will not order a cocktail with this alcohol type, by race/Hispanic origin, October 2012 

CHOOSING ON-PREMISE DESTINATIONS
Key points 
Women demand more out of on-premise establishments than do men 
Figure 64: Drivers to choose on-premise destinations, by gender, October 2012 
Millennials concerned with popularity and unique drink experiences 
Figure 65: Drivers to choose on-premise destinations, by age, October 2012 
Lower-income respondents likely to benefit from increased entertainment 
Figure 66: Drivers to choose on-premise destinations, by household income, October 2012 
Each race is more likely to than the others to consider certain criteria 
Figure 67: Drivers to choose on-premise destinations, by race/Hispanic origin, October 2012 

ON-PREMISE ALCOHOL CONSUMPTION BEHAVIOR
Key points 
Men buy shots in multiples, while women worry about alcohol content 
Figure 68: Consumer behavior regarding on-premise alcohol consumption, by gender, October 2012 
Millennials and low-income respondents are concerned with price
Figure 69: Consumer behavior regarding on-premise alcohol consumption, by age, October 2012 
Figure 70: Consumer behavior regarding on-premise alcohol consumption, by household income, October 2012. 91

ATTITUDES TOWARD ON-PREMISE ALCOHOL CONSUMPTION
Key points 
Men order by brand, while women want healthy, lower-alcohol beverages 
Figure 71: Attitudes toward on-premise alcohol consumption, by gender, October 2012 
Younger consumers are more willing to try new types of drinks 
Figure 72: Attitudes toward on-premise alcohol consumption, by age, October 2012 
Affluent consumers enjoy being with friends and like to order by brand 
Figure 73: Attitudes toward on-premise alcohol consumption, by household income, October 2012 
White and Hispanic consumers are turned off by specialty cocktails 
Figure 74: Attitudes toward on-premise alcohol consumption, by race/Hispanic origin, October 2012 

HISPANIC CONSUMERS
Key points 
Hispanics likely to order beer and shots on-premise 
Figure 75: Alcohol types typically ordered on-premise, by Hispanic origin, October 2012 
Hispanics likely to have increased on-premise consumption 
Figure 76: Changes in behavior with on-premise alcohol consumption, by Hispanic origin, October 2012 
Hispanics prefer specialty cocktails with vodka, tequila, whiskey and beer 
Figure 77: Seek out cocktails with this alcohol type, by Hispanic origin, October 2012 
Figure 78: Indifferent to this alcohol type, by Hispanic origin, October 2012 
Figure 79: Will not order a cocktail with this alcohol type, by Hispanic origin, October 2012
Hispanics choose on-premise destinations, based on friendliness of staff 
Figure 80: Drivers to choose on-premise destinations, by Hispanic origin, October 2012 
Hispanics likely to order beer and shots on-premise 
Figure 81: Consumer behavior regarding on-premise alcohol consumption, by Hispanic origin, October 2012 
Hispanics like trying new items, preferring variety and certain brands 
Figure 82: Attitudes toward on-premise alcohol consumption, by race/Hispanic origin, October 2012 

LIMITED ALCOHOL VERSUS HARD LIQUOR RESPONDENTS
Key points 
Limited alcohol versus hard liquor respondents reveal the right menu mix 
Figure 83: Alcohol types typically ordered on-premise, by alcohol types typically ordered on-premise,
October 2012 
Hard liquor drinkers increased specialty cocktail and new drink usage 
Figure 84: Changes in behavior with on-premise alcohol consumption, by alcohol types typically ordered onpremise,
October 2012 
Figure 85: Changes in behavior with on-premise alcohol consumption (limited alcohol), October 2012 
Figure 86: Changes in behavior with on-premise alcohol consumption (hard liquor), October 2012 
Limited alcohol consumers seek beer- and wine-based specialty cocktails 
Figure 87: Seek out cocktails with this alcohol type, by on-premise alcohol consumer group, October 2012 
Figure 88: Indifferent to this alcohol type, by on-premise alcohol consumer group, October 2012 
Figure 89: Will not order a cocktail with this alcohol type, by on-premise alcohol consumer group, October
2012 
Regular cocktail drinkers versus specialty cocktail drinkers 
Figure 90: Specialty cocktail selection methods (regular cocktail respondents), October 2012 
Figure 91: Specialty cocktail selection methods (specialty cocktail respondents), October 2012 
Liquor drinkers are looking for a “party-like” experience 
Figure 92: Drivers to choose on-premise destinations, by alcohol types typically ordered on-premise,
October 2012 
Price, alcohol content, and sugar are barriers for non-liquor drinkers 
Figure 93: Attitudes toward on-premise alcohol consumption, by alcohol types typically ordered on-premise,
October 2012 

CLUSTER ANALYSIS
Cluster 1: Bare Bones 
Characteristics 
Demographics 
Opportunity 
Cluster 2: Big Drinkers 
Characteristics 
Demographics 
Opportunity 
Cluster 3: Nervous Nellys 
Characteristics 
Demographics 
Opportunity 
Cluster characteristic tables 
Figure 94: Target clusters, October 2012 
Figure 95: Alcohol types typically ordered on-premise, by target clusters, October 2012 
Figure 96: Changes in behavior with on-premise alcohol consumption, by target clusters, October 2012 
Figure 97: Seek out cocktails with this alcohol type, by target clusters, October 2012 
Figure 98: Indifferent to this alcohol type, by target clusters, October 2012 
Figure 99: Will not order a cocktail with this alcohol type, by target clusters, October 2012 
Figure 100: Drivers to choose on-premise destinations, by target clusters, October 2012 
Figure 101: Consumer behavior regarding on-premise alcohol consumption, by target clusters, October 2012 
Figure 102: Attitudes toward on-premise alcohol consumption, by target clusters, October 2012 
Cluster demographic tables 
Figure 103: Target clusters, by demographic, October 2012 
Cluster methodology 

ADDITIONAL TABLES
Figure 104: Changes in behavior with on-premise alcohol consumption, by race/Hispanic origin, October 2012 . 122
Figure 105: Consumer behavior regarding on-premise alcohol consumption, by race/Hispanic origin, October
2012 
Figure 106: Consumer behavior regarding on-premise alcohol consumption, by alcohol types typically ordered
on-premise, October 2012 

APPENDIX – TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

CONSUMER RESEARCH
Primary Data Analysis 
Sampling 
Global Market Insite (GMI) 
Secondary Data Analysis 
Experian Simmons National Consumer Studies 
Statistical Forecasting 
Statistical modelling 
Qualitative insight 
The Mintel fan chart 
Weather analogy 

APPENDIX: WHAT IS MINTEL?
Mintel provides industry-leading market intelligence 
Mintel Solutions: 
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Mintel Menu Insights 
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