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45% Of U.S. Alcohol Consumers Regularly Buy Wine, Says TABS Analytics

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Created in 1998, TABS Analytics says it delivers “analytical innovations to the consumer products industry in order to simplify and improve business analytics.” The company boasts offering a competitive advantage to its clients via an array of technology-based analytical tools. 

TABS Analytics recently engaged in its own study of the wine and spirits industries. Its aim was “…to examine trends about the types of wine and liquor purchased, outlets where these products are purchased, and attitudes toward usage of cannabis, wine and liquor.”

Courtesy TABS Analytics

TABS Analytics founder and CEO Dr. Kurt Jetta says, “Our primary objective…is to provide visibility to the retail universe that is not covered by traditional retail measurement services...These studies provide the only holistic view of the size and opportunity in sectors such as BevAlc [beverage alcohol]."

As opposed to the wireless and landline Gallup poll for beer preference I reported recently, the TABS wine and spirits study was completed online with 1,900 participants over age 21. The study’s overarching goal was to pin down purchasing patterns connected with still and sparkling wine as well as various spirits. 

The study found that 66% of adults in the U.S. consume beverage alcohol (about 3% higher than the Gallup finding): 35% of alcohol consumers regularly buy spirits and 45% regularly buy wine at least three times a year. That's quite a separation from the Gallup pole, which was a study of preferences instead of purchases and found spirits preference was 19% and wine preference, 34%.

TABS claims wine buying is shared equally between men and women, but more men buy spirits than women. Spirits purchases peak at 45% for those between ages 30-39 and fall to 22% by age 60. Wine buying rises dramatically in ages 21-29 and 30-39 and it stays relatively steady with older age groups.

Overall, wine and spirits buyers fall into the higher education, higher income camp. Fifty-five percent of alcohol consumers earning $125,000 to $149,000 spend on wine and 38% buy spirits; of those with income $250,000 or more, 68% spend on wine and 42% buy spirits. While non-Hispanic whites buy more wine than other ethnicities, non-Hispanic blacks and Asians buy more spirits.

California, Washington and Oregon produce the bulk of wine in the U.S., but the lion’s share of wine consumers live in the Northeast. At 62% and 53%, New Jersey and New York respectively top the states in wine purchases.  The TABS report claims regional spirits purchases are highest in the mid-South, but in a state-by-state analysis, Michigan, Pennsylvania and New Jersey each claim 40% of the consumers in spirits purchases.

With other consumer products, deals are important to about 40% of buyers. With beverage alcohol, only 16% of consumers seek deals. Moreover, fewer than 25% of regular alcohol consumers value brand familiarity.

Finally, e-commerce alcohol buying is still not mainstream. Specialty and food retailers are among the most popular outlets, and mega stores like Walmart and Costco are also important. Wine e-commerce not connected to a store attracts 6% of consumers (another 8% order online from a store). Spirits e-commerce not connected to a store attracts 3% (another 5% order online from a store).

The survey asked only two questions connected with cannabis: If cannabis were to be legalized in their state would respondents drink less alcohol and are respondents for or against legalizing cannabis? Five percent of regular wine purchasers and 9% of regular spirits purchasers said they would cut back on alcohol if and when cannabis was made legal in their state. Twenty-nine percent of wine buyers (16% occasionals and 13% regulars) and 31% spirits buyers (19% occasionals and 12% regulars) are opposed to legalizing cannabis.

TABS Analytics claims a margin of error of ±4%.

This study found the top three wines purchased were Cabernet Sauvignon, Merlot and Chardonnay, which is old news. They seem to have been the top three wines in the U.S. for multiple generations. Maybe we need a study to determine whether Americans are creatures of habit or we just lack adventure. How can the majority of us pass up Grenache, Nebbiolo and Riesling?

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