Inflationary Squeeze: U.S. Drinkers Opt for Cheaper Booze Amid Economic Strain

Bars in New York, led by Meaghan Dorman, report steady patronage but reduced spending due to economic pressures. U.S. drinkers are opting for cheaper cocktails, affecting major spirits companies like Diageo and Pernod Ricard, with anticipated declines in wholesaler sales. While some markets see recovery, the U.S. experiences cautious spending.

Bars in New York are bustling with patrons, yet spending habits have shifted noticeably. Meaghan Dorman, director of Raines Law Room and Dear Irving bars, reveals that while crowds remain, revenue drops as patrons opt for cheaper drinks amid challenging economic conditions.

Larger spirits producers such as Diageo and Pernod Ricard face hurdles during crucial sales months. Distributors highlight a trend where U.S. drinkers purchase less and opt for budget-friendly venues or brands, potentially leading to a 5.65% decline in wholesaler sales.

While some regions like Britain see recovery, the U.S. market braces for a cautious holiday season. Though at-home spirits consumption rises, the shift toward value-seeking habits, and experimenting with alternatives like THC-infused beverages, keeps the industry on alert.

(With inputs from agencies.)