Restaurant Spending On Alcohol Increased Due To Prices

By Cornelius Nunev


Adults of the appropriate age occasionally enjoy alcoholic drinks, which are a multi-billion dollar company. However, spending tends to be more obvious in dining places, where individuals have been gradually charged more for libations.

A huge markup

According to a recent post on NPR, part of its "What America Spends On" series, Americans are gradually increasing the amount spent on alcoholic drinks in dining places and bars. The series compares figures from 1982 to today, examining the changes in the 30-year period.

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

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

Grape goals

The biggest change was what the nation indulges in. In 1982, 48.9 percent of spending was on beer, followed by spirits at 34.6 percent and wine at 16.2 percent. However, spirits have fallen to 12.6 percent of spending and wine has ballooned to 39.7 percent of spending on libations for 2012.

Wine in America is all any person seems to want. In 2011, France only shipped 320.6 million cases of wine while there were 329.7 million cases shipped in America, according to the San Francisco chronicle. Obviously more Americans are drinking American wine now.

The American wine industry was a $30 billion industry as of 2010 and the bulk of it is all within the state of California as fully 61 percent of wine produced in the United States was from the Golden State itself. That year, 241.8 million cases went out from numerous wineries. Millennials, the current crop of 20- and 30-somethings, are not only drinking more, but additionally reaching for pricier bottles.

Beer still the drink of the time

From 1982 to 2012, the amount of beer that people drank did not change at all. In fact, it was 47.7 percent of sales in 2012, according to NPR. People are drinking less overall though because beer production has dropped, according to BusinessInsider, from 203 million gallons produced in 1990 to 182 million in 2011.

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 brand 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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